Document:

EX-10.8

 Exhibit 10.8 

PURCHASE OPTION AGREEMENT 
 This Purchase
Option Agreement (this “Agreement”) is entered into by and among the following parties on : 
  

	(1)	
                       
                                         
            (“WFOE”), a wholly foreign owned enterprise registered in the People’s Republic of China (“PRC”) with its domicile
at                ; 

  

	(2)	 Chen QIAN (ID Card
No.:                     ), a PRC citizen with a domicile
at                     ; 

  

	(3)	 Fei XU (ID Card
No.:                     ), a PRC citizen with a domicile
at                 (together with Chen Qian, the “Individual Shareholders”); and 

 

	(4)	
                       
                                         
        (“Domestic Company”), a limited liability company registered in                     ,
the PRC with its address at                     . 

WFOE, the Individual Shareholders and the Domestic Company are hereinafter collectively referred to as the “Parties” and individually, as a
“Party”. 
 Whereas: 
  

	(A)	 The Individual Shareholders are all the registered shareholders of the Domestic Company, and in aggregate hold
100% of the equity interests in the Domestic Company. The basic information of the Domestic Company as of the date of execution of this Agreement is set forth in Appendix I. 

 

	(B)	 To the extent permitted by the PRC Law and by the relevant PRC regulators, the Parties agree that at the
discretion of WFOE, the Individual Shareholders will transfer to WFOE, and WFOE will accept, all the equity interests of the Individual Shareholders in the Domestic Company, or the Domestic Company will transfer to WFOE, and WFOE will accept all the
assets and business of the Domestic Company. 

  

	(C)	 To effect the abovementioned transfer of equity interests or assets and business, the Individual Shareholders
and the Domestic Company agree to separately grant WFOE an irrevocable purchase option (hereinafter the “Purchase Option” or “Option”) under which, to the extent permitted by the PRC Law, the Individual Shareholders
or the Domestic Company shall upon request of WFOE transfer the Option Equity (as defined below) or the Domestic Company Assets (as defined below) and Business (as defined below) to WFOE and/or its designated entity(ies) or individual(s) in
accordance with the provisions of this Agreement. 

 Therefore, the Parties enter into this Agreement as follows upon friendly
negotiation: 
  

	1	 Definitions 

  

	1.1	 Unless the context otherwise requires, the following terms in this Agreement shall have the following meanings:

 “Domestic Company Assets” shall mean the assets and liabilities owned or controlled by the Domestic
Company from time to time with respect to the Business it operates, including all current assets, long-term investments, fixed assets, intangible assets (including patented and non-patented technologies),
deferred assets, current liabilities, long-term liabilities and other rights and obligations, and the assets owned or controlled by the branches or offices of the Domestic Company from time to time. 

“Option Equity” shall mean the equity interests held by the Individual Shareholders in the Domestic Company. 

  
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 “Business” shall mean all the businesses operated by the Domestic Company
from time to time. 
 “PRC Law” shall mean the valid laws, administrative regulations, administrative rules, local
regulations, judicial interpretations and other regulatory documents of the PRC. 
 “Transfer Price” shall mean the price to
be paid by WFOE or its designated entity or individual to the Individual Shareholders or the Domestic Company as consideration for the Option Equity or the Domestic Company Assets and Business when the Option is exercised. The price shall be equal
to the the lowest price permitted under applicable PRC Laws then in effect and, if required by the relevant government authorities, shall be based on the result of valuation by a qualified valuation firm (provided that such firm and the valuation
method to be adopted are chosen solely by WFOE to the extent not violating the PRC Law). 
  

	1.2	 The references to any PRC Law herein shall be deemed: 

 

	 	(1)	 to include references to the amendments, changes, supplements and reenactments of such law, irrespective of
whether they take effect before or after the formation of this Agreement; and 

  

	 	(2)	 to include references to other decisions, notices or provisions that are made in accordance with or take effect
as a result of the laws. 

  

	1.3	 Unless otherwise stated in the context herein, all references to an article, clause, item or paragraph shall
refer to the relevant article, clause, item or paragraph of this Agreement. 

  

	1.4	 “Working Day” referred to in this Agreement means any day, except for a Saturday, Sunday or
PRC statutory holiday. 

  

	2	 Grant of Purchase Option 

 

	2.1	 As of the effective date of this Agreement, the Individual Shareholders and the Domestic Company hereby
irrevocably grant WFOE an exclusive Purchase Option, and pursuant to this Purchase Option, WFOE shall, subject to the conditions set forth in Article 3 of this Agreement, at any time have the right to purchase (i) all or part of the Option
Equity, and/or (ii) all or part of the Domestic Company Assets and Business. The Purchase Option may be exercised by WFOE or its designated entity(ies) or individual(s). The Option to purchase the equity interests in the Domestic Company under
(i) and the Option to purchase the Domestic Company Assets and Business under (ii) are not mutually exclusive, and may be simultaneously exercised by WFOE if it deems appropriate, in which case it may receive the equity interests in the
Domestic Company while purchasing the Domestic Company Assets and Business. 

  

	2.2	 WFOE hereby accepts the Purchase Option granted by the Individual Shareholders and the Domestic Company
pursuant to Article 2.1 above. 

  

	3	 Exercise of Option 

 

	3.1	 To the extent permitted by the PRC Law and not specifically dealt with under this Agreement, WFOE shall have
the sole discretion to determine the timing, method and frequency for exercising the Option. 

  
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	3.2	 With respect to the Option Equity, to the extent that the PRC Law permits WFOE and/or its designated
entity(ies) or individual(s) to hold all the equity interests in the Domestic Company, WFOE shall, on each occasion, have the right to exercise the Purchase Option in respect of the entire amount of the Option Equity; to the extent that the PRC Law
permits WFOE and/or its designated entity(ies) or individual(s) to hold only part of the equity interests in the Domestic Company, WFOE shall have the right to exercise the Purchase Option in respect of the equity interests in the Domestic Company
up to the maximum amount permitted by the then applicable PRC Law (hereinafter the “Shareholding Limit”). In the latter case, WFOE shall have the right to exercise the Purchase Option at multiple times in line with the gradual
deregulation of PRC Law on the Shareholding Limit, and ultimately exercise the Purchase Option in respect of all the remaining Option Equity when the Shareholding Limit is fully lifted. 

 

	3.3	 With respect to the Domestic Company Assets and Business, WFOE shall, on each occasion, have the right to
determine the specific Domestic Company Assets and Business to be transferred by the Domestic Company to WFOE and/or its designated entity(ies) or individual(s), and the Domestic Company shall transfer the Domestic Company Assets and Business to
WFOE and/or its designated entity(ies) or individual(s) as required by WFOE. 

  

	3.4	 WFOE may, on each occasion, exercise the Purchase Option by issuing to the Individual Shareholders and the
Domestic Company a notice for exercising the Purchase Option substantially in the applicable form set forth in Appendix II hereto (hereinafter the “Exercise Notice”). 

Notwithstanding the preceding sentence, if and when an Individual Shareholder becomes deceased, mentally incapacitated or is otherwise in lack
of or has limitations in its civil capacity, or the Domestic Company becomes dissolved, liquidated, cancelled, insolvent or has its business license revoked (each a “Trigger Event”), the Purchase Option shall be deemed automatically
exercised upon the occurrence of a Trigger Event and no notice shall be required to be issued by WFOE to the Individual Shareholders or Domestic Company. 

The Individual Shareholders and Domestic Company hereby confirm and agree that upon the occurrence of a Trigger Event, the Purchase Option or
the Domestic Company Assets and Business shall be entirely granted to WFOE (or its designated entity or individual) and WFOE (or its designated entity or individual) is the sole owner of the Purchase Option or the Domestic Company Assets and
Business. WFOE shall then have the right to dispose of such equity interests or the Domestic Company Assets and Business at its sole discretion. 
  

	3.5	 The Individual Shareholders and Domestic Company hereby undertake that upon the issuance by WFOE of an Exercise
Notice or upon the occurrence of a Trigger Event: 

  

	 	(1)	 if an appraisal is required by relevant government authorities, they shall engage a qualified valuation firm
chosen by WFOE to evaluate the Option Equity or Domestic Company Assets and Business specified in writing by WFOE and agree with WFOE on the amount of the Transfer Price of such Option Equity or Domestic Company Assets and Business, within fourteen
(14) days of the date of the Exercise Notice or the date of the occurrence of the Trigger Event; 

  

	 	(2)	 thereafter, and in any event no later than five (5) days following the completion of the matters described
in paragraph (1) above, they shall convene a shareholders’ meeting and adopt a shareholders’ resolution at such shareholders’ meeting approving the transfer of the Option Equity or Domestic Company Assets and Business at the
Transfer Price, and take all other necessary or desirable actions to effect the transfer to WFOE and/or its designated entity(ies) or individual(s) of such Option Equity or Domestic Company Assets and Business; 

  
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	 	(3)	 concurrently with the passing of the shareholders’ resolution described in paragraph (2) above, they
shall enter into an equity transfer agreement or asset and business transfer agreement with WFOE or its designated entity(ies) or individual(s) for the transfer of the Option Equity or Domestic Company Assets and Business to WFOE or its designated
entity(ies) or individual(s) at the Transfer Price in the substantially same form and content as set forth in Appendix III (or in the form and content as then required by WFOE); and 

 

	 	(4)	 they shall at all times provide WFOE with full support and cooperation (including providing and executing all
the relevant legal documents, processing all the procedures for government approvals and registrations and bearing all the relevant obligations) and use their best efforts to obtain necessary approvals from governmental authorities or consents from
third parties (if any) in accordance with the requirements of WFOE and the applicable PRC Law in order to effect the transfer of the Option Equity or Domestic Company Assets and Business in accordance with the terms of the equity transfer agreement
or asset and business transfer agreement. 

  

	3.6	 WFOE or its designated entity(ies) or individual(s) shall pay the Individual Shareholders or Domestic Company
the Transfer Price within the time specified in the relevant equity transfer agreement or asset and business transfer agreement. 

  

	3.7	 Upon the execution of this Agreement, each of the Individual Shareholders and Domestic Company shall
respectively enter into a letter of authorization (hereinafter the “Letter of Authorization”, the form of which is set forth in Appendix IV attached hereto) to authorize a person acceptable to WFOE to sign, on behalf of such
Individual Shareholder and Domestic Company and according to this Agreement, any and all legal documents necessary for the transfer of the Option Equity or Domestic Company to WFOE or its designated entity or individual upon WFOE’s exercising
of the Purchase Option. Such Letter of Authorization shall be delivered to WFOE and WFOE may, at any time if necessary, require the Individual Shareholders and the Domestic Company to respectively execute multiple copies of the Letter of
Authorization and deliver the same to the relevant government authority. 

  

	3.8	 If the Individual Shareholders shall receive any profits, dividends, bonus or liquidation proceeds from the
Domestic Company, the Individual Shareholders shall, subject to the PRC Laws, promptly grant such profits, dividends, bonus or liquidation proceeds to WFOE or its designated entity or individual. 

 

	4	 Representations and Warranties 

 

	4.1	 Each of the Individual Shareholders hereby represents and warrants as follows: 

 

	 	(a)	 Each of the Individual Shareholders is a PRC citizen with power and capacity to execute and perform his/her
obligations under this Agreement. 

  

	 	(b)	 The execution and performance of this Agreement by the Individual Shareholders does not violate any laws and
regulations or government approvals, authorizations, notices or other governmental documents having binding effect on or affecting the Individual Shareholders, nor does it violate any agreements between Individual Shareholders and any third party or
any covenants made to any third party. 

  
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	 	(c)	 This Agreement constitutes the lawful, valid and enforceable obligations of the Individual Shareholders.

  

	 	(d)	 The Individual Shareholders are the only legal owners of the Option Equity, with no existing dispute concerning
the ownership of the Option Equity. The Individual Shareholders have the right to dispose of the Option Equity or any part thereof. 

  

	 	(e)	 Except for the encumbrance created for the benefit of WFOE set forth hereunder and under the Equity Pledge
Agreement, the Power of Attorney and the Exclusive Business Cooperation Agreement entered into by the Individual Shareholders, Domestic Company and WFOE, there is no other encumbrance or third party interest in respect of the Option Equity.

  

	 	(f)	 There shall be no litigation, arbitration, legal proceeding or claim of any pending or threatened nature that
would affect the performance of the obligations of each Individual Shareholder under this Agreement. 

  

	4.2	 WFOE hereby represents and warrants as follows: 

 

	 	(a)	 WFOE is a wholly foreign owned enterprise duly registered and existing under the PRC Law.

  

	 	(b)	 WFOE has the power to execute and perform its obligations under this Agreement. The execution and performance
of this Agreement by WFOE is in compliance with the articles of association or other organizational documents of WFOE, and WFOE has obtained all necessary and appropriate approvals and authorizations for the execution and performance of this
Agreement. 

  

	 	(c)	 The execution and performance of this Agreement by WFOE does not violate any laws and regulations or government
approvals, authorizations, notices or other governmental documents having binding effect on or affecting WFOE, nor does it violate any agreements between WFOE and any third party or any covenants made to any third party. 

 

	 	(d)	 This Agreement constitutes lawful, valid and enforceable obligations of WFOE. 

 

	4.3	 The Domestic Company hereby represents and warrants to WFOE as follows: 

 

	 	(a)	 The Domestic Company is a limited liability company duly established and existing under the PRC Law.

  

	 	(b)	 The Domestic Company has the power to execute and perform its obligations under this Agreement. The execution
and performance of this Agreement by the Domestic Company is in compliance with the articles of association or other organizational documents of the Domestic Company, and the Domestic Company has obtained all necessary and appropriate approvals and
authorizations for the execution and performance of this Agreement. 

  

	 	(c)	 The execution and performance of this Agreement by the Domestic Company does not violate any laws and
regulations or government approvals, authorizations, notices or other governmental documents having binding effect on or affecting the Domestic Company, nor does it violate any agreements between the Domestic Company and any third party or any
covenants made to any third party. 

  
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	 	(d)	 This Agreement constitutes lawful, valid and enforceable obligations of Domestic Company.

  

	 	(e)	 The Domestic Company has all business permits necessary for the operations and other businesses in relation to
its current business structure. 

  

	5	 Undertakings by the Individual Shareholders and Domestic Company 

 

	5.1	 Each of the Individual Shareholders hereby undertakes during the term of this Agreement, without the prior
written consent of WFOE: 

  

	 	(a)	 No Individual Shareholders shall transfer, sell, pledge or otherwise dispose of any Option Equity or create any
encumbrance or other third party right over any Option Equity (except for the encumbrance created for the benefit of WFOE as set forth hereunder and under the Equity Pledge Agreement, the Power of Attorney and the Exclusive Business Cooperation
Agreement among the Individual Shareholders, Domestic Company and WFOE); 

  

	 	(b)	 He/she shall not supplement, amend or change the business scope or articles of association of the Domestic
Company, increase or decrease the registered capital of the Domestic Company, or change the Domestic Company’s structure of share capital; 

  

	 	(c)	 He/she shall not dispose of or cause the management of the Domestic Company to dispose of any of the Domestic
Company Assets (except in the ordinary course of business); 

  

	 	(d)	 He/she shall not appoint or replace any executive directors or members of the board of directors (if any),
supervisors or any other management personnel of the Domestic Company; 

  

	 	(e)	 He/she shall not procure the Domestic Company to declare or distribute any profit or dividend;

  

	 	(f)	 He/she shall not exercise any residual right of the Option Equity (if any); 

 

	 	(g)	 He/she shall not allow or procure the Domestic Company to take any action under Article 5.3; and

  

	 	(h)	 He/she shall not take any action or conduct any negligence which may negatively affect the Domestic Company
Assets, the goodwill of the Domestic Company, or the validity of the business permits of the Domestic Company. 

  

	5.2	 Each of the Individual Shareholders hereby undertakes during the term of this Agreement: 

 

	 	(a)	 Each Individual Shareholder shall promptly notify WFOE of any litigation, arbitration, legal proceeding or
claim that has been filed, threatened or likely to be filed against or potentially affecting the Option Equity held by him/her, and to take all actions and all defenses to maintain his/her ownership of the Option Equity; and 

 

	 	(b)	 To achieve the transfer of the Option Equity referred to in this Agreement to WFOE or its designated entities
or individuals, each of the Individual Shareholders shall pass the relevant resolutions of the shareholders’ meeting or the resolutions of the board of directors and sign other documents or take other actions requested by WFOE.

  
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	5.3	 The Domestic Company hereby undertakes during the term of this Agreement that, without the prior written
consent of WFOE, it shall not take any of the following actions: 

  

	 	(a)	 Supplement, amend or change the business scope or or articles of association, increase or decrease the
registered capital, or change the structure of share capital in any way; 

  

	 	(b)	 Appoint, remove or replace any director, supervisor or senior management personnel; 

 

	 	(c)	 Lend or borrow any money or credit; 

 

	 	(d)	 Except in the ordinary course of business, sell, transfer, mortgage or in any other way dispose of the
statutory or beneficial interests of any assets, business or income, permit or create any security interest over such assets, business or income, or create any guarantee for any third party’s obligations; 

 

	 	(e)	 Except in the ordinary course of business, incur, succeed, guarantee or permit the existence of any debt or
responsibility; 

  

	 	(f)	 Sign any significant contract (for the purpose of this item, a contract with the value of more than RMB200,000
shall be deemed significant), except for contracts entered into in the ordinary course of business; 

  

	 	(g)	 Merger with, set up a joint venture with, acquire or invest in any third party; 

 

	 	(h)	 Liquidate, dissolute or apply for bankrupt; 

 

	 	(i)	 Declare or distribute dividends or other distributions in any form to shareholders; and 

 

	 	(j)	 Conduct any other transactions or activities which are likely to have a major effect on the assets, rights or
business operation. 

  

	5.4	 The Domestic Company hereby undertakes during the term of this Agreement: 

 

	 	(a)	 It shall take all necessary measures to obtain all business permits in a timely manner and always maintain the
effectiveness of the business permits and ensure that its Business is legal and comply with the PRC Law; 

  

	 	(b)	 It shall provide WFOE with all information and materials regarding the operating and financial status of the
Domestic Company required by WFOE; 

  

	 	(c)	 It shall, as WFOE requires, purchase and maintain insurance from well-known insurers recognized by WFOE and
ensure to purchase and maintain insurance. The insurance coverage and the insurance amount of the Domestic Company shall be the same as the insurance coverage and the insurance amount of a company which has similar property or assets and engages in
a similar business at the same locality; 

  

	 	(d)	 It shall execute all necessary or appropriate documents, take all necessary or appropriate actions, make all
necessary or appropriate claims or make all necessary or appropriate defenses for all claims, to the extent required to maintain the ownership of all of its assets; 

  
 7 

	 	(e)	 It shall timely notify any litigation, arbitration or administrative procedure which has occurred or is
threatened to be filed in connection with its assets, Business or income; and 

  

	 	(f)	 It shall strictly abide by this Agreement and shall not engage in or be negligent in engaging in any behavior
with negative impact on the validity and performance of this Agreement. 

  

	6	 Confidentiality 

The Parties acknowledge and confirm that any oral or written information exchanged among them with respect to this Agreement constitutes
confidential information. The Parties shall maintain the confidentiality of all such information. Without the prior written consent of the Party providing such information, none of the Parties shall disclose any confidential information to any third
party, except in the following circumstances: (a) such information is or comes into the public domain (through no fault or disclosure by the receiving party); (b) information required by applicable laws or regulations or rules of any stock
exchange to be disclosed; or (c) information required to be disclosed by any Party to its legal counsel or financial advisor regarding the transactions contemplated hereunder, and such legal counsel or financial advisor is also bound by duties
of confidentiality similar to the duties set forth in this Article. Disclosure of any confidential information by any staff, consultant or employee of any Party shall be deemed as disclosure of such confidential information by such Party, for which
the Party shall be held liable for breach of this Agreement. This Article shall survive the termination of this Agreement for any reason. 
  

	7	 Term of Agreement 

This Agreement shall become effective upon              and shall terminate after
the entire Option Equity or Domestic Company Assets and Business is/are transferred to WFOE or its designated entity(ies) or individual(s) in accordance with the provisions contained herein. 

 

	8	 Notice 

All notices, claims, certificates, requests, demands and other communications under this Agreement shall be made in writing and shall be
delivered to any Party hereto by hand or, sent by facsimile, or sent, postage prepaid, by reputable overnight courier services at the following addresses (or at such other address for such Party as shall be specified by notice), and shall be deemed
given when so delivered by hand, or if sent by facsimile, upon receipt of a confirmed transmittal receipt, or if sent by overnight courier, five (5) days after delivery to or pickup by the overnight courier service: 

If to WFOE: 
 Address:

 Telephone: 
 Attention:

  
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 with a copy to: 

Address: 
 Attention: 

Telephone: 
 If
to Individual Shareholders: 
 Chen QIAN 

Address: 
 Telephone: 

Fei XU 
 Address: 

Telephone: 
 If to Domestic
Company: 
 Address: 

Telephone: 
 Attention: 

 

	9	 Liability for Default 

 

	9.1	 The Parties agree and confirm that, if any Party (hereinafter the “Defaulting Party”) breaches
substantially any of the provisions herein or fails substantially to perform any of the obligations under this Agreement, it shall constitute a default under this Agreement (hereinafter a “Default”), and any of the non-defaulting Parties shall have the right to require the Defaulting Party to rectify such Default or take remedial measures within a reasonable period. If the Defaulting Party fails to rectify such Default or take
remedial measures within such reasonable period or within ten (10) days of a non-defaulting Party notifying the Defaulting Party in writing and requiring it to rectify the Default, a non-defaulting Party shall have the right at its own discretion to select any of the following remedial measures: 

  

	 	(1)	 to terminate this Agreement and require the Defaulting Party to indemnify it against all damages suffered; or

  

	 	(2)	 to seek mandatory performance of the obligations of the Defaulting Party hereunder and require the Defaulting
Party to indemnify it against all damages suffered. 

  

	9.2	 Notwithstanding the above Article 9.1, the Parties agree and confirm that in no circumstances shall any
Individual Shareholder or the Domestic Company request the termination of this Agreement for any reason, provided that WFOE shall have the right to unilaterally terminate this Agreement at any time by sending a 30 days’ prior written notice to
the Individual Shareholders and the Domestic Company. 

  
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	9.3	 The rights and remedies prescribed herein are cumulative, and other rights or remedies prescribed by the law
are not precluded. 

  

	9.4	 Notwithstanding any other provisions herein, the validity of this Article shall not be affected by the
suspension or termination of this Agreement. 

  

	10	 Applicable Law and Dispute Resolution 

 

	10.1	 The formation, validity, interpretation, performance, amendment, termination and dispute resolution of this
Agreement shall be governed by the PRC Law. 

  

	10.2	 Any dispute arising from the interpretation and performance of this Agreement shall first be resolved through
friendly consultations by the Parties. If the dispute fails to be resolved within thirty (30) days after one Party gives notice requesting consultations to the other Party, either Party may submit such dispute to China International Economic
and Trade Arbitration Commission (hereinafter the “CIETAC”) for arbitration in Beijing in accordance with the then effective arbitration rules of the CIETAC. The arbitration tribunal shall consist of three (3) arbitrators who
may or may not be on the CIETAC’s list of arbitrators, of which one arbitrator shall be selected by WFOE and one arbitrator shall be jointly selected by the Individual Shareholders and the Domestic Company. The third arbitrator, who shall be
the presiding arbitrator of the arbitration tribunal, and shall be jointly selected by the two arbitrators selected by the Parties. The arbitration award shall be final and binding on all Parties. 

 

	10.3	 During the existence of any dispute, the Parties shall continue to exercise their remaining respective rights,
and fulfill their remaining respective obligations under this Agreement, except insofar as the same may relate directly to the matters in dispute. 

  

	10.4	 Notwithstanding the foregoing, the Parties agree that any of them may seek interim measures including property
preservation in relation to the provisions of this Agreement or the Parties’ performance hereof from any court of competent jurisdiction. 

  

	11	 Miscellaneous 

 

	11.1	 WFOE may, upon notice to the Individual Shareholders and the Domestic Company but without consent from the
Individual Shareholders and the Domestic Company, assign WFOE’s rights and/or obligations hereunder to any third party. The Individual Shareholders or the Domestic Company may not, without WFOE’s prior written consent, assign any rights,
obligations and/or liabilities of the Individual Shareholders or the Domestic Company hereunder to any third party. Successors or permitted assignees (if any) of the Individual Shareholders and the Domestic Company shall be bound by, and continue to
perform, the obligations of the Individual Shareholders and the Domestic Company under this Agreement. 

  

	11.2	 This Agreement is made in four (4) originals in Chinese. Each Party shall keep one (1) original
version. 

  

	11.3	 This Agreement may not be amended or modified in any manner except by an instrument in writing signed by the
Parties hereto. 

  
 10 

	11.4	 No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the
Parties. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either Party to exercise any right or privilege hereunder shall be
deemed a waiver of such Party’s rights or privileges hereunder or shall be deemed a waiver of such Party’s rights to exercise the same at any time subsequent to the execution hereof. 

 

	11.5	 If any provision of this Agreement is deemed or becomes invalid, illegal or unenforceable, such provision shall
be construed or deemed amended to conform to applicable laws so as to be valid and enforceable; or, if it cannot be so construed or deemed amended without materially altering the intention of the Parties, it shall be stricken and the remainder of
this Agreement shall remain in full force and effect. 

  

	11.6	 Each Party shall use all reasonable efforts to take and do, or cause to take and do, all such further actions
and things and shall execute and deliver all such other agreements, certificates, instruments and documents as may be necessary or desirable to give effect to the terms and intent of this Agreement and any ancillary documents. If required under any
applicable laws, regulations or listing rules or required or deemed desirable by any stock exchange, government or other regulatory authority in connection with the initial public offering and listing of the shares in the Potential Listed Company
(“IPO”) or the initial public offering and listing of the shares in any company which adopts a variable interest entity (VIE) structure (the “IPO Requirements”), each of the Individual Shareholders and the Domestic
Company agrees and undertakes to (a) take all such actions (including amendment to this Agreement and its appendices, any authorizations, documents and notices entered into or delivered in connection with this Agreement and the execution of
additional documents) to comply with or, as applicable, meet the IPO Requirements, and (b) take all actions referred to in paragraph (a) above within 3 Working Days upon request of WFOE. For the purpose of this Article, “Potential
Listed Company” means such other company which beneficially owns, whether directly or indirectly, the equity interests in WFOE and operates its business in the PRC through WFOE and the Domestic Company, as identified by WFOE or its actual
controller and notified by WFOE to the other Parties as the Potential Listed Company under this paragraph. 

  

	11.7	 The Individual Shareholders shall fulfill the obligations of tax declaration and tax payment, in connection
with taxes arising from the execution and performance of this Agreement, within the term prescribed by applicable laws. WFOE or the Domestic Company shall compensate the Individual Shareholders. 

 

	11.8	 This Agreement may be executed in several counterparts and all counterparts so executed shall together
constitute one agreement. Any Party may execute this Agreement by executing any counterpart. 

 **REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK** 

  
 11 

 IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized
representatives of the Parties as of the date first written above. 
  

			
	[Name of WFOE]
	(seal)

 
			
	By:	 	  

	Title:	 	  

 
			
	
	Individual Shareholders
	
	Chen QIAN

 
			
	By:	 	  

 
			
	
	Fei XU

 
			
	By:	 	  

 
			
	
	[Name of Domestic Company]
	(seal)

 
			
	By:	 	  

	Title:	 	  

 Signature Page of Purchase Option Agreement 

 Appendix I 

Basic Information of the Domestic Company 

Company Name: [Name of Domestic Company]     

Domicile: 
 Registered Capital:     

Equity Structure: 100% held by Fei XU and Chen QIAN in the aggregate 

  
 Appendix I 

 Appendix II - A 

(Form of) Equity Purchase Option Exercise Notice 

To: [Chen QIAN/Fei XU] 
 We
hereby refer to the Purchase Option Agreement entered into between you and us as of                      (hereinafter the “Purchase
Option Agreement”), under which you had agreed to transfer the equity interests held by you in [Domestic Company] to us or any third party designated by us upon our request to the extent as permitted by the PRC Law and regulations. 

Therefore, we hereby notify you as follows: 

We hereby exercise the Purchase Option under the Purchase Option Agreement and request you to transfer to [us / name of entity / individual
designated by us] [ ]% of the equity interests held by you in [Domestic Company] in accordance with the provisions set forth in the Purchase Option Agreement. 

Best regards, 
  

			
	[Name of WFOE]
	
	(Seal)
		
	By:	 	  

	Title:	 	  

	Date:	 	  

  
 Appendix II-A 

 Appendix II - B 

(Form of) Domestic Company Assets and Business Purchase Option Exercise Notice 

To: [Name of Domestic Company] 

We hereby refer to the Purchase Option Agreement entered into between you and us as of
                     (hereinafter the “Purchase Option Agreement”), under which you had agreed to transfer your assets and
business to us or any third party designated by us upon our request to the extent as permitted by the PRC Law and regulations. 
 Therefore,
we hereby notify you as follows: 
 We hereby exercise the Purchase Option under the Purchase Option Agreement and all of your assets and
business set forth the list attached hereto (“Transferred Assets and Business”) shall be transferred to [us / name of entity / individual designated by us]. We would appreciate if you could immediately transfer the Transferred
Assets and Business to [us / name of entity / individual designated by us] in accordance with the Purchase Option Agreement upon receipt of this notice. 

Best regards, 
  

			
	[Name of WFOE]
	
	(Seal)
		
	By:	 	  

	Title:	 	  

	Date:	 	  

  
 Appendix II - B 

 Appendix III 

(Form of) Equity Transfer Agreement 

Date: 
 Equity Transfer Agreement

 by and between 
 [•]

 and 
 [•] 

Regarding 
 [Name of Domestic
Company] 

  
 Appendix III 

 This Equity Transfer Agreement (hereinafter this “Agreement”) is entered into on
                 by and between: 
  

	(1)	 [•] (hereinafter the “Transferor”); and 

 

	(2)	 [•] (hereinafter the “Transferee”). 

The Transferor and the Transferee are individually referred to herein as a “Party”, and collectively as the “Parties”. 

WHEREAS, 
  

	(A)	 The Transferor holds [•]% of the equity interests in [Name of Domestic Company] (hereinafter the
“Company”). 

  

	(B)	 The Transferor desires to sell to the Transferee, and the Transferee desires to purchase from the Transferor,
[•]% of the equity interests in the Company and all the rights and obligations in relation thereto (collectively, the “Target Equity Interests”). 

 

	(C)	 The Parties agree to sell and purchase the Target Equity Interests in accordance with the terms and conditions
of this Agreement. 

 Therefore, the Parties agree as follows: 
  

	1	 DEFINITIONS AND INTERPRETATIONS 

Unless otherwise provided herein, the terms used herein (in bold) shall have the meanings set forth in Schedule 1. 

 

	2	 SALE AND PURCHASE OF TARGET EQUITY INTERESTS 

 

	2.1	 Subject to satisfaction or waiver of the conditions to Closing set forth in Article 3 (if applicable),
the Transferor agrees to sell to the Transferee [•]% of the equity interests held by it in the Company and all the rights attached thereto in the consideration of RMB[•] (hereinafter “Equity Purchase Price”), and the
Transferee agrees to purchase such equity interests in accordance with the terms and conditions of this Agreement (hereinafter this “Equity Transfer”). 

 

	3	 CONDITIONS TO CLOSING BY THE TRANSFEREE 

 

	3.1	 Unless waived in writing by the Transferee, the performance of the obligations of the Transferee under
Article 4 shall be subject to fulfilment of the following conditions on or prior to the Closing Date: 

  

	 	(a)	 the Transferor’s Warranties shall be true and accurate when made, and shall be true and accurate at the
time of Closing as if made at the time of Closing, unless the Warranties relate to a specific early date, in which circumstance such Warranties shall be true and accurate on such date; 

 

	 	(b)	 the Company shall have filed to the competent SAMR an application for registration of changes in connection
with the Equity Transfer, and the Company shall have obtained an acceptance notice from the competent SAMR with respect to such application; 

  
 1 

	 	(c)	 the Transferor shall have performed and complied with, in any material aspects, the undertakings and
obligations provided herein that the Transferor is required to perform and comply with on or prior to the Closing Date; and 

  

	 	(d)	 there is no judicial, regulatory or administrative action or other law that would render this Equity Transfer
illegal, or limit the completion of this Equity Transfer in any material aspects. 

  

	3.2	 The Transferee may notify the Transferor in writing of waiver of all or part of the above conditions at any
time. 

  

	4	 CLOSING 

  

	4.1	 The Closing of this Equity Transfer shall take place on the 3rd Business Day upon satisfaction and waiver of
the conditions set forth in Article 3 (or any other date or time specified by the Transferee, the “Closing Date”). 

  

	4.2	 At the time of Closing, the Transferor shall deliver to the Transferee a written certificate proving the
fulfilment of the conditions set forth in Article 3.1. 

  

	4.3	 The Transferor shall pay the Transferee the Equity Purchase Price at the time of Closing in the following
method: unless otherwise required by the Laws of the PRC, the Equity Purchase Price under this Agreement shall be the lowest price permitted under applicable PRC Laws when this Equity Transfer occurs. 

 

	5	 REPRESENTATIONS AND UNDERTAKINGS OF THE TRANSFEROR 

The Transferor represents and warrants to the Transferee that as of the date of this Agreement and the Closing Date, the Warranties contained
in this Article 5 (hereinafter “Transferor’s Warranties”) are true, accurate and complete. 
  

	5.1	 Establishment and Valid Existence. The Company is duly established and validly existing under the Laws
of the PRC. 

  

	5.2	 Capacity and Authority. The Transferor has the capacity and authority necessary to execute and deliver
this Agreement and perform its obligations hereunder. 

  

	5.3	 Target Equity Interests. 

 

	 	(a)	 Except for any Encumbrance created under the Original Control Agreements, the Transferor is the sole registered
and beneficial owner of the Target Equity Interests, free and clear of any other Encumbrance. The Transferor has the exclusive right to dispose of the Target Equity Interests. 

 

	 	(b)	 The Target Equity Interests represents [•]% of the total existing registered capital of the Company.

  

	5.4	 Legality and Validity. Upon execution and delivery of this Agreement, it shall constitute the legal and
valid obligation of the Transferor, enforceable against the Transferor in accordance with the terms of this Agreement. 

  

	5.5	 Registration and Consent. Except for those set forth in Article 3.1(b) and the consent required
to be obtained from [Name of WFOE] in accordance with the provisions of the Original Control Agreements, the Transferor or the Company shall not be required to obtain consents, approvals, authorizations, orders, registrations or filings from any
third party or Governmental Authority for the purpose of completion of this Equity Transfer. 

  
 2 

	5.6	 No Violation. The execution of this Agreement by the Transferor and the performance of its obligations
hereunder shall not contradict with or result in violation of (a) any applicable Law, or any authorization or approval of any competent Governmental Authority; (b) any agreement, contract, obligation or undertaking to which the Transferor
(or any of its Affiliates) is a party or by which the Transferor (or any of its Affiliates) is bound; or (c) any constitutional document of the Company. 

 

	6	 REPRESENTATIONS AND WARRANTIES OF THE TRANSFEREE 

The Transferee represents and warrants to the Transferor that as of the date of this Agreement and the Closing Date, the Warranties contained
in this Article 6 are true, accurate and complete. 
  

	6.1	 Capacity and Authority. The Transferee has the capacity and authority necessary to execute and deliver
this Agreement and perform its obligations hereunder. 

  

	6.2	 Legality and Validity. Upon execution and delivery of this Agreement, it shall constitute the legal and
valid obligation of the Transferee, enforceable against the Transferee in accordance with the terms of this Agreement. 

  

	6.3	 No Violation. The execution of this Agreement by the Transferee and the performance of its obligations
hereunder shall not contradict with or result in violation of (a) any applicable Law, or any authorization or approval of any competent Governmental Authority; or (b) any agreement, contract, obligation or undertaking to which the
Transferee (or any of its Affiliates) is a party or by which the Transferee (or any of its Affiliates) is bound. 

  

	7	 UNDERTAKINGS 

  

	7.1	 Commercially Reasonable Effort. Subject to the terms and conditions of this Agreement, each Party shall
use its commercially reasonable efforts to take or cause the Company to take all actions, submit or cause the Company to submit all documents, obtain or cause the Company to obtain all approvals or registrations from any competent Governmental
Authority, and do or cause the Company to do other necessary, desirable or advisable things, in order to complete this Equity Transfer (including satisfaction other than waiver of the conditions to Closing set forth in Article 3) as soon as
practicable upon the execution of this Agreement. 

 Without limiting the generality of the above paragraph of this
Article 7.1, the Transferor shall timely execute all documents and take all actions reasonably requested by the Transferee to complete this Equity Transfer as soon as practicable, including but not limited to the following: the Transferor
shall fully cooperate with the Company to file an application to the competent SAMR for registration of changes pertaining to this Equity Transfer, and the Transferor shall execute, in form and substance to the reasonable satisfaction of the
Transferee, the resolutions of the shareholders’ meeting of the Company approving this Equity Transfer, the amendment to the articles of association of the Company reflecting this Equity Transfer, the Statement of Change in Individual
Shareholders pertaining to this Equity Transfer and the letter of authorization authorizing the Transferee or other person designated by it to handle the tax return pertaining to this Equity Transfer on its behalf. 

  
 3 

	8	 INDEMNIFICATION 

 

	8.1	 The Transferor shall indemnify and hold harmless the Transferee and its Affiliates, agents, successors and
transferees from and against any losses arising out of or caused by: 

  

	 	(a)	 breach of the Transferor’s Warranties by the Transferor; 

 

	 	(b)	 breach of any undertakings or obligations set forth herein by the Transferor. 

 

	8.2	 The Transferee shall indemnify and hold harmless the Transferor and its Affiliates, agents, successors and
transferees from and against any losses arising out of or caused by: 

  

	 	(a)	 breach of the Transferee’s Warranties by the Transferee; 

 

	 	(b)	 breach of any undertakings or obligations set forth herein by the Transferee. 

 

	9	 TERMINATION 

  

	9.1	 Under the following circumstances, this Agreement may be terminated prior to the Closing Date:

  

	 	(a)	 it is agreed to be terminated by the Transferee and the Transferor in writing; 

 

	 	(b)	 it is terminated by the Transferee or the Transferor, if any competent Governmental Authority has issued any
final and non-appealable governmental order that prohibits this Equity Transfer permanently or otherwise; or 

  

	 	(c)	 it is terminated by the Transferee, if the Transferor’s Warranties are not entirely true or accurate, as a
result of which the conditions to Closing set forth in Article 3.1(a) are unable to be satisfied, and the above untrue or inaccurate Warranty cannot be rectified, or though it can be rectified, the Transferor fails to rectify it within 20
days after receipt of written notice of such untrue or inaccurate Warranty from the Transferee. 

 If any Party intends to
terminate this Agreement, it shall send a written notice indicating termination of this Agreement to the other Party. 
  

	9.2	 If this Agreement is terminated in accordance with Article 9.1, all obligations of the Parties hereunder
shall be terminated and cease to be valid, provided that (a) the matters set forth in the Surviving Clauses shall not be affected by the termination and shall continue to be effective, and (b) the termination of this Agreement for any
reason shall not release any Party from any liability that will have been incurred as of the effective date of the termination of this Agreement, or constitute any waiver of any right, compensation or claim that any Party has hereunder or will have
as a result of the termination of this Agreement, or have other adverse effect on the above right, compensation or claim. 

  

	10	 TAXATION 

  

	10.1	 The Transferor and the Transferee shall assume their own stamp taxes and individual income taxes required to be
paid in accordance with the provisions of the Laws of the PRC in connection with the execution and performance of this Agreement. 

  
 4 

	10.2	 With respect to various taxes arising from the execution and performance of this Agreement, the Transferor
shall perform its tax declaration and payment obligations in accordance with Laws within the period provided by applicable Laws. 

  

	11	 ANNOUNCEMENT 

  

	11.1	 Without the prior written consent of the Parties, neither Party may make any announcement or disclosure of the
contents of this Agreement or this Equity Transfer (including any general disclosure to clients or suppliers); provided that the provisions of this Article 11.1 shall not prohibit: (a) any disclosure required by any applicable Legal
Requirement (in which case, if it is permitted by Law and reasonable practicable, the disclosing Party shall give the other Party the opportunity to review and comment prior to such disclosure), or (b) any disclosure of implementation of any
right or indemnification in respect of this Agreement or this Equity Transfer. 

  

	12	 NOTICE 

  

	12.1	 Any notice or other communication made in this Agreement or in relation hereto by one Party to the other Party
shall be made in writing and signed by the sending Party or its representative. Such notice or other communication shall be sent to the number set out in Article 12.2 below by facsimile, or delivered or sent to the addresses set out in the
following paragraph by hand or by courier service, and in any case, shall be indicated with the recipient of the relevant party set out in Article 12.2 (or otherwise notified from time to time pursuant to this provision). Any notice delivered
by hand, sent by facsimile or by post pursuant to this provision shall be deemed to have been effectively delivered: 

  

	 	(a)	 if delivered by hand, when delivered; 

 

	 	(b)	 if sent by facsimile, when dispatched; 

 

	 	(c)	 if sent by courier service, the fourth (4th) Business Day from the date on which it is posted,

 provided that if it is delivered by hand or sent by facsimile at a time later than 6 pm of a Business Day or on a day
that is not a Business Day, it shall be deemed to have been effectively delivered at 9 am of the following Business Day. 
 The time referred
to in this paragraph shall be the local time of the country where the recipient is located. 
  

	12.2	 The addresses and telephone numbers of the Parties are set out below: 

Transferor 
 Address: [•]

 Telephone: [•] 

Attention: [•] 
 Transferee

  
 5 

 Address: [•] 

Telephone: [•] 
 Attention:
[•] 
  

	13	 TRANSFER 

Unless expressly agreed by the Parties in writing, neither Party may transfer, assign or otherwise dispose of any or all of the rights
hereunder, nor shall it grant, declare, create or dispose of any of the rights or interests herein. Any transfer in violation of this Article 13 shall be null and void. 

 

	14	 EXPENSES 

Except as otherwise provided herein, the Transferor and the Transferee shall bear their own fees, charges and other expenses pertaining this
Equity Transfer (including such fees, charges and other expenses of its Affiliates). 
  

	15	 EFFECTIVENESS 

This Agreement shall become effective as of the date of execution hereof. 

 

	16	 GOVERNING LAW 

The validity, interpretation, amendment, performance and termination of this Agreement shall be governed by and constructed in accordance with
the Laws of the PRC. 
  

	17	 DISPUTE RESOLUTION 

 

	17.1	 Any dispute arising from the interpretation and performance of this Agreement shall first be resolved through
friendly consultations by the Parties. If the dispute fails to be resolved within thirty (30) days after one Party gives notice requesting consultations to the other Party, either Party may submit such dispute to China International Economic
and Trade Arbitration Commission (hereinafter the “CIETAC”) for arbitration in Beijing in accordance with the then effective arbitration rules of the CIETAC. There shall be 3 arbitrators. One arbitrator shall be selected by the
claimant, and one arbitrator shall be selected by the respondent. The third arbitrator, who shall serve as the presiding arbitrator, shall be jointly selected by the two arbitrators so chosen. If such two arbitrators fail to jointly select the third
arbitrator within 30 days, upon the request of any Party, the chairman of the CIETAC shall be entitled to select the third arbitrator. The Parties agree that the two arbitrators selected by the Parties and the presiding arbitrator may be selected
outside the CIETAC’s panel of arbitrators. The arbitration award shall be final and binding on the Parties. 

  

	17.2	 During the existence of any dispute, the Parties shall continue to exercise their remaining respective rights,
and fulfill their remaining respective obligations under this Agreement, except insofar as the same may relate directly to the matters in dispute. 

  

	17.3	 Notwithstanding the foregoing, the Parties agree that any of them may seek interim measures including property
preservation in relation to the provisions of this Agreement or the Parties’ performance hereof from any court of competent jurisdiction. 

  

	18	 MISCELLANEOUS 

 

	18.1	 This Agreement is made in four (4) originals in Chinese. Each Party shall keep two (2) original
version. 

  
 6 

	18.2	 This Agreement may not be amended or modified in any manner except by an instrument in writing signed by the
Parties hereto. 

  

	18.3	 No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the
Parties. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either Party to exercise any right or privilege hereunder shall be
deemed a waiver of such Party’s rights or privileges hereunder or shall be deemed a waiver of such Party’s rights to exercise the same at any time subsequent to the execution hereof. 

 

	18.4	 If any provision of this Agreement is deemed or becomes invalid, illegal or unenforceable, such provision shall
be construed or deemed amended to conform to applicable laws so as to be valid and enforceable; or, if it cannot be so construed or deemed amended without materially altering the intention of the Parties, it shall be stricken and the remainder of
this Agreement shall remain in full force and effect. 

  

	18.5	 The Parties shall fulfill the obligations of tax declaration and tax payment, in connection with taxes arising
from the execution and performance of this Agreement, within the term prescribed by applicable laws. 

  

	18.6	 This Agreement may be executed in several counterparts and all counterparts so executed shall together
constitute one agreement. Any Party may execute this Agreement by executing any counterpart. 

  

	18.7	 All schedules hereto shall be deemed as part of this Agreement. 

(Remainder of this page intentionally left blank) 

  
 7 

 IN WITNESS WHEREOF, this Agreement has been executed by the Parties on the date first
written above. 
  

			
	[•]	  	[•]
		
	By:______________________________	  	By:_______________________________

  
 Appendix III 

 SCHEDULE 1 DEFINITIONS AND INTERPRETATIONS 

 

	1.1	 In this Agreement, the following terms shall have the meanings as set out below: 

“Warranties” shall collectively mean the representations and warranties made by the Transferor as set out in Article 5 and the
representations and warranties made by the Transferee as set out in Article 6. 
 “Equity Transfer” shall have the meaning set forth
in Article 2.1. 
 “Agreement” shall have the meaning set forth in the preamble. 

“Law” shall mean all applicable terms of (i) any constitution, treaty, statute, law, regulation, rule, ordinance or norm of any
Governmental Authority, and (ii) any order, decision, injunction, judgment, arbitration award or ruling of any Governmental Authority. 

“Legal Requirement” shall mean any federal, state, territory, local, municipal, foreign or other law, statute, legislation, constitution,
resolution, decree, norm, bulletin, ruling, announcement, treaty, convention, rule, regulation, permit, judgement, directive, verdict, requirement (permission or otherwise), instruction, award, decision, opinion or interpretation that has been
published, promulgated, adopted, passed, approved, issued, enacted, implemented or otherwise validated by any Governmental Authority. 

“SAMR” shall mean the State Administration for Market Regulation or its local branches, as appropriate to the context. 

“Company” shall have the meaning set forth in the preamble. 

“Equity Purchase Price” shall have the meaning set forth in Article 2.1. 

“Affiliate” shall mean, with respect to any Person, any other Person that, through one or more intermediaries, controls, or is controlled by,
or is under common control with the Person. 
 “Closing” shall mean the closing of sale and purchase of the Target Equity Interests
pursuant to this Agreement. 
 “Closing Date” shall have the meaning set forth in Article 4.1. 

“Control” (including its related terms, such as “controlled by” and “under common control with”), shall mean, with
respect to any Person, (i) the possession by such Person, direct or indirect, of the Securities that entitle it to exercise an aggregate of more than 50% of the voting power of a relevant entity, or (ii) the possession by such Person, of
the power to directly or indirectly, (a) select members of the board of a relevant entity (or other similar governing body) that hold more than 50% of the voting power, or (b) direct or cause the direction of a relevant entity or the
management and policies in relation thereto, whether through the ownership of the Securities, through contractual arrangements or otherwise. 

“Target Equity Interests” shall have the meaning set forth in the preamble. 

“Encumbrance” shall mean any lien, mortgage, hypothec, pledge, limitation on transferability, title flaw or other claim, allegation or
encumbrance of any nature over any property or property rights and interests, including any limitation on use, voting, transfer, obtainment of proceeds or exercise of any right of ownership nature; provided that the following shall not constitute
any Encumbrance: (i) any lien pertaining to taxes that are not due and payable, and (ii) any easement or other similar limitation that affects real property but does not affect the use thereof. 

  
 Appendix III 

 “Person” shall mean any natural person, business trust, corporation, partnership, limited
liability company, joint-stock company, solely-owned enterprise, association, trust, joint venture, unincorporated consortium or other legal entity, unincorporated organization or any Governmental Authority of any nature established pursuant to any
applicable Laws. 
 “RMB” shall mean the lawful currency of the PRC. 

“[Name of WFOE]” shall mean [Name of WFOE], a wholly-foreign owned company established under the Laws of the PRC with its address at
            . 
 “Transferee” shall have the meaning set forth in the preamble.

 “Transferee’s Warranties” shall have the meaning set forth in Article 6. 

“Transferee’s Obligations” shall mean any of the representations, Warranties, undertakings, agreements or indemnification undertakings
made by the Transferee to the Transferor hereunder. 
 “Parties” shall have the meaning set forth in the preamble. 

“Loss” shall mean indebtedness, liabilities, losses, damages, fees (including reasonable legal fees and consulting fees) and expenses
(including taxes), litigations, proceedings, claims and demands of any nature. 
 “Claim” shall mean any claim made in connection with any
Transferor’s Obligations or Transferee’s Obligations. 
 “Surviving Clauses” shall mean Article 8 (Indemnification),
Article 9 (Termination), Article 10 (Taxation), Article 11 (Announcement), Article 12 (Notice), Article 13 (Transfer), Article 14 (Expenses), Article 16 (Governing Law), Article 17 (Dispute
Resolution), Article 18.2 (Amendment), Article 18.3 (Waiver, Rights and Remedy), Article 18.4 (Invalidity), Article 18.7 (Counterparts) and Schedule 1 (Definitions and Interpretations). 

“Hong Kong” shall mean the Hong Kong Special Administration of the People’s Republic of China. 

“Party” shall have the meaning set forth in the preamble. 

“Business Day” shall mean any day other than a Saturday, Sunday or other day on which commercial banks in Hong Kong or the PRC are not open
for business. 
 “Original Control Agreement” shall mean each of the Purchase Option Agreement, Power of Attorney, Exclusive Business
Cooperation Agreement and Equity Pledge Agreement (as amended from time to time, if any) executed on [•] by and among the Transferor, [•], [Name of WFOE] and/or the Company. 

“Liabilities” shall mean direct or indirect liabilities, indebtedness, obligations, expenses, costs, claims, losses, damages, defects,
warranties or endorsements that belong to or are raised by any Person, whether or not absolute or conditional, actual or contingent, due or imminent, discharged or not discharged, constituted or solely complained. 

“Governmental Authority” shall mean any federation, country, state, sovereignty or government, any branch of any federal, supranational,
territorial, provincial, state, local or municipal government, any governmental or administrative authority, body, department or independent agency, or any court, governmental administration hearing agency, arbitrator, committee or other similar
dispute resolution organization or entity and any other entity that exercises executive, legislative, judicial, regulatory or certain governmental administration functions, in each case having competent jurisdiction. 

  
 Appendix III 

 “Securities” shall mean, with respect to any Person, the common shares and other equity
securities of such Person, and any security that can be converted into, exchanged for or exercised to purchase such common shares and other equity securities of such Person. 

“PRC” means the People’s Republic of China, excluding, for purposes of this Agreement, Hong Kong, the Macau Special Administrative
Region and Taiwan. 
 “CIETAC” shall have the meaning set forth in Article 17.1. 

“Arbitration Rules” shall have the meaning set forth in Article 17.1. 

“Transferor” shall have the meaning set forth in the preamble. 

“Transferor’s Warranties” shall have the meaning set forth in Article 5. 

“Transferor’s Obligations” means any of the representations, Warranties, undertakings, agreements or indemnification undertakings made
hereunder by the Transferor to the Transferee. 
  

	1.2	 Interpretation. In this Agreement, unless the context otherwise provided: 

 

	 	(a)	 headings shall not affect the interpretation of this Agreement; 

 

	 	(b)	 words denoting the singular shall, where applicable, include the plural and vice versa; 

 

	 	(c)	 reference to a certain gender shall, where applicable, include all genders; 

 

	 	(d)	 sentences introduced by “include,” “including,” “especially” or any similar
expressions shall be construed as illustration and not limit the meaning of the words before such words; and 

  

	 	(e)	 unless the context otherwise states, the clauses and schedules referenced to herein shall mean the clauses and
schedules of this Agreement. 

  
 Appendix III 

 Appendix IV 

Form of Letter of Authorization 

Letter of Authorization 
 [I/The Company]
(name of the Individual Shareholder/Domestic Company) (ID Card No.: [                ]/ Unified Social Credit Code:
[                 ]), hereby irrevocably entrust _________(ID Card No.: ____________) as my/our authorized representative, to sign the [Equity Transfer Agreement/Assets
and Business Transfer Agreement] and all legal documents necessary for the transfer of [the equity interests held by me/us in [Name of Domestic Company] /the Company’s assets and business] to [Name of WFOE] (“WFOE”) or its
designated entity(ies) or individual(s). 
  

			
	By:	 	  

  
 Appendix IVExhibit

	
					
	 

Exhibit 10.1
	
			
	
	 
	PERFORMANCE SHARE
AWARD AGREEMENT

	Participant:
	 
	Gregg A. Lowe

	Award Number:
	 
	PU ________

	Plan:
	 
	2013 Long-Term Incentive Compensation Plan

	Award Type:
	 
	Performance Shares

	Grant Date:
	 
	September 1, 2020

	Performance Period:
	 
	September 1, 2020 through August 31, 2023

Dear Gregg:
I am pleased to inform you that Cree, Inc. (the “Company”) has awarded 58,953 Performance Shares (the “Performance Shares”) to you effective September 1, 2020 (the “Grant Date”). The Performance Shares are subject to and governed by the terms of the Cree, Inc. 2013 Long-Term Incentive Compensation Plan, as amended from time to time (the “Plan”), the terms of the Change in Control Agreement between you and the Company dated September 22, 2017, as amended by the First Amendment to Change in Control Agreement, dated May 4, 2018 (the “Change in Control Agreement”), and the terms of this Performance Share Award Agreement (this “Agreement”). Capitalized terms defined in the Plan and used in this Agreement without definition have the meaning specified in the Plan.

Subject to the terms and conditions set forth in this Agreement and the Change in Control Agreement, you are eligible to earn shares of the Company’s common stock (“Shares”) based on settlement of the Performance Shares in accordance with the performance criteria listed on Exhibit A of this Agreement (the “Performance Criteria”).  The Compensation Committee shall determine, in its sole discretion, the level of achievement of the Performance Criteria during the period beginning on the Grant Date and ending immediately prior to the third anniversary of the Grant Date (the “Vesting Date”), and such determination shall be conclusive, final and binding upon all parties.  The Compensation Committee has discretion to make adjustments to the Performance Criteria in recognition of unusual or non-recurring events affecting the Company, as set forth in Section 10.4 of the Plan.

Subject to the terms of the Change in Control Agreement, (i) you must be continuously in service with the Company or any Employer or any subsidiary or affiliate of the Company through the Vesting Date in order to have a right to payment of Performance Shares, (ii) the Performance Shares will not be considered earned until the Vesting Date, and (iii) except as specified in your Change in Control Agreement, if your employment is terminated prior to the Vesting Date, you will forfeit all of the Performance Shares.

Notwithstanding the foregoing, you will become fully vested in the Performance Shares on the date of your death or on the effective date of the determination of your Disability (as defined below) by the Employee Benefits Committee of the Company (the “EBC”) or such other committee as may be designated by the Board of Directors of the Company or a committee thereof; however, the Performance Shares will not be settled into Shares until the Vesting Date and the number of Shares that will be issued at that time in settlement of the Performance Shares will be calculated as described herein.  For purposes of this Agreement, “Disability” will have the meaning given to “LTD Disability” in the Change in Control Agreement. The determination of whether or not you have a Disability will be made by the EBC in good faith in its sole discretion, and such determination shall be conclusive, final and binding upon all parties. The above definition of Disability applies in lieu of the definition of disability set out in the Plan.

THE TERMS AND CONDITIONS ON THE PAGES FOLLOWING THIS SIGNATURE PAGE, INCLUDING ANY APPENDIX OR EXHIBIT, ARE AN INTEGRAL PART OF THIS AGREEMENT AND ARE INCORPORATED HEREIN BY THIS REFERENCE. BY SIGNING BELOW YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTAND AND AGREE TO BE BOUND BY SUCH TERMS AND CONDITIONS. FAILURE TO SIGN WILL RESULT IN FORFEITURE OF THE PERFORMANCE SHARES.  

Date:  September 1, 2020
	
							
	CREE, INC.:
	 
	ACCEPTED AND AGREED TO:

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 

	Thomas H. Werner
	 
	Gregg A. Lowe

	Compensation Committee Chairman
	 
	 
	 
	 

Page 2 of 12

PERFORMANCE AWARD AGREEMENT
TERMS AND CONDITIONS

		
	1.
	Forfeiture of Performance Shares for Awards Not Timely Accepted.  The grant of the Performance Shares is conditioned upon and subject to your accepting the Performance Shares by signing and delivering to the Company this Agreement, or otherwise electronically accepting the Performance Shares, no later than the first date the Performance Shares are scheduled to vest pursuant to this Agreement. In the event of your death or incapacitation prior to accepting the Performance Shares, the Company will deem the Performance Shares as being accepted. If you fail to accept the Performance Shares within the time described above, you will forfeit the Performance Shares.

		
	2.
	Payment.  Subject to the terms of the 2013 Plan, this Agreement and, if applicable, the Severance Plan, within 30 days after the following date (except as provided otherwise in Section 19 below), the Company shall make payment to you of the vested portion of the Performance Shares on such date (if any), less any vested Performance Shares previously paid to you (if any): _______ __, 201_.

The Company shall make payment to you by delivery to you (or, in the event of your death, to your estate or,  if the Committee establishes a beneficiary designation procedure pursuant to Section 12 of the 2013 Plan, to any beneficiary that you have designated pursuant to such procedure) one or more certificates for a number of Shares equal to the number of vested Performance Shares payable to you on such date or in the Company's discretion may cause such Shares to be deposited in an account maintained by a broker designated by the Company.

		
	3.
	Responsibility for Taxes.

		
	(a)
	For purposes of this Agreement, “Tax-Related Items” means any or all income tax, social insurance tax, payroll tax, payment on account or other tax-related items that may be applicable to the Performance Shares by law or regulation of any governmental authority, whether federal, state or local, domestic or foreign. Regardless of any action the Company takes with respect to withholding Tax-Related Items, you acknowledge that you are ultimately responsible for all Tax-Related Items and that such Tax-Related Items may exceed the amount actually withheld by the Company or the Employer. You further acknowledge that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Performance Shares, including, without limitation, the grant, vesting or payment with respect to the Performance Shares, the subsequent sale of Shares and the receipt of any dividends or dividend equivalents; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Performance Shares to reduce or eliminate your liability for Tax-Related Items or to achieve any particular tax result. Furthermore, if you have become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, you acknowledge that the Company and/or the Employer (or former Employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

		
	(b)
	Prior to any relevant taxable or tax withholding event, as applicable, you will pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. If permissible under local law and at your election, the Company will satisfy this condition pursuant to the withholding of Shares consistent with the “Share Withholding” provisions under section 14.2 of the 2013 Plan. The Company, in its discretion, may authorize alternative arrangements, including, if permissible under local law, the Company's selling or arranging to sell Shares that you acquire under the 2013 Plan. In any event, to the extent this condition is not otherwise satisfied, you authorize the Employer to withhold all applicable Tax-

Page 3 of 12

Related Items legally payable by you from your wages or other cash compensation paid to you by the Employer.

		
	(c)
	Depending upon the withholding method, the Company or the Employer may withhold or account for Tax-Related Items by considering applicable minimum or maximum statutory withholding amounts or other applicable withholding rates. In the event Tax-Related Items are over-withheld, you will receive a refund in cash for any over-withheld amounts and will have no entitlement to the Shares equivalent. If the obligation for Tax-Related Items is satisfied by withholding of Shares, you shall be deemed, for tax purposes, to have been issued the full number of Shares, notwithstanding that a number of Shares is held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of your participation in the 2013 Plan.

		
	(d)
	You shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of your participation in the 2013 Plan that cannot be satisfied by the means previously described. The Company may refuse to make payment with respect to the Performance Shares if you fail to comply with your obligations in connection with the Tax-Related Items.

		
	4.
	Transfer of Performance Shares. The Performance Shares and any rights under any Performance Share may not be assigned, pledged as collateral or otherwise transferred, except as permitted by the 2013 Plan, nor may they be subject to attachment, execution or other judicial process. In the event of any attempt to assign, pledge or otherwise dispose of a Performance Share or any rights under a Performance Share, except as permitted by the 2013 Plan, or in the event of the levy of any attachment, execution or similar judicial process upon the rights or interests conferred by a Performance Share, the Committee may in its discretion terminate a Performance Share by notice to you.

		
	5.
	Rights Prior to Vesting of Shares.

		
	(a)
	You will have no rights as a shareholder with respect to any Shares issuable under the Performance Shares, including but not limited to voting rights or rights to dividends or dividend equivalents, until such Shares have been duly issued by the Company or its transfer agent pursuant to the vesting and payment of the Performance Shares.

		
	(b)
	In the event of a change in capitalization within the meaning of Section 4.4 of the 2013 Plan, the number and class of Shares or other securities that you are entitled to pursuant to this Agreement shall be appropriately adjusted or changed as determined by the Committee to reflect the change in capitalization, provided that any such additional Shares or additional or different shares of securities shall remain subject to the restrictions in this Agreement.

		
	6.
	Termination of Service:  For purposes of this Agreement, “Termination of Service” will have the meaning as prescribed by Treasury Regulation § 1.409A-1(h)(1)(ii) under Section 409A of the Internal Revenue Code, as such meaning may be amended from time to time.  Except as determined otherwise by the Committee or as provided in the Severance Plan, you will not be deemed to have incurred a Termination of Service if the capacity in which you provide services to the Company changes (for example, you change from being a non-employee director to being an employee or you change from being an employee to a consultant) or if you transfer employment among the various subsidiaries or affiliates of the Company constituting the Employer, so long as there is no interruption in your provision of services to the Company or other Employer as an employee or as a non-employee member of the Board of Directors of the Company. The Committee, 

Page 4 of 12

in its discretion, will determine whether you have incurred a Termination of Service. You will not be deemed to have incurred a Termination of Service during a period for which you are on military leave, sick leave, or other leave of absence approved by the Employer.

		
	7.
	Detrimental Activity.  The Committee in its sole discretion may cancel and cause to be forfeited any Performance Shares not previously vested or released under this Agreement if you engage in any “Detrimental Activity” (as defined below). In addition, if you engage in any Detrimental Activity prior to or within one (1) year after your Termination of Service, the Committee in its sole discretion may require you to pay to the Company the amount of all gain you realized from any vesting of the Performance Shares beginning six (6) months prior to your Termination of Service, provided that the Committee gives you notice of such requirement within one (1) year after your Termination of Service. In that event, the Company will be entitled to set off such amount against any amount the Company owes to you, in addition to any other rights the Company may have. For purposes of this section:

		
	(a)
	“Company” includes Cree, Inc. and all other Employers under the 2013 Plan.

		
	(b)
	“Detrimental Activity” means that you have engaged in activity that breaches the terms of any restrictive covenants in any agreement between you and the Company, including without limitation the most recent version of the Employee Agreement Regarding Confidential Information, Intellectual Property, and Noncompetition in effect for you as of the relevant date.  If no such agreement exists, then “Detrimental Activity” shall mean any of the following conduct, as determined by the Committee in good faith:

		
	(i)
	the performance of services for any Competing Business (as defined below), whether as an employee, officer, director, consultant, agent, contractor or in any other capacity, except to the extent expressly permitted by any written agreement between you and the Company;

		
	(ii)
	the unauthorized disclosure or use of any trade secrets or other confidential information of the Company any attempt to induce an employee to leave employment with the Company to perform services elsewhere; 

		
	(iii)
	any attempt to cause a customer or supplier of the Company to curtail or cancel its business with the Company; or

		
	(iv)
	any act of fraud, misappropriation, embezzlement, or tortious or criminal behavior that adversely impacts the Company.

		
	(c)
	“Competing Business” as used in Section 7(b)(i) means any corporation, partnership, university, government agency or other entity or person (other than the Company) engaged in any part of the Company’s Business, including the development, manufacture, marketing, distribution, research, or sale of any product, service, or technology that Company is developing, manufacturing, marketing, distributing, researching, or selling as of the date of your Termination of Service.  As of the date of this Agreement, you acknowledge that the Company’s Business includes the following products, services, and technologies:  (1) silicon carbide (SiC) materials for electronic applications, (2) SiC materials for gemstone applications, (3) AIII nitride materials for electronic applications, (4) light emitting diode (LED) devices and components, (5) power semiconductor devices made using SiC and/or AIII nitride materials and components and 

Page 5 of 12

modules incorporating such devices, (6) radio frequency (RF) and microwave devices made using SiC and/or AIII nitride materials and components and modules incorporating such devices, (7) LED backlights for liquid crystal displays (LCDs), (8) lighting products, modules, fixtures or devices incorporating any of the above materials or technology, (9) sensors, drivers, networking, and controls related to lighting products, and (10) other semiconductor devices made using SiC and/or AIII nitride materials and components incorporating such devices. You acknowledge that during your employment or other relationship with the Company, the Company’s Business may expand or change and, you agree that any such expansions and changes shall expand or contract the definition of the Company’s Business accordingly.

		
	8.
	Provisions of the 2013 Plan. The provisions of the 2013 Plan are incorporated by reference in this Agreement as if set out in full in this Agreement. To the extent that any conflict may exist between any other provision of this Agreement, a provision of the 2013 Plan, and the applicable provisions of the Severance Plan, if any, the applicable provisions of the Severance Plan shall control. To the extent that any conflict may exist between any other provision of this Agreement and a provision of the 2013 Plan, the applicable provisions of this Agreement shall control.  All decisions of the Committee with respect to the interpretation, construction and application of the 2013 Plan or this Agreement shall be final, conclusive and binding upon you and the Company.

		
	9.
	Data Privacy. By signing this Agreement, you explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement by and among, as applicable, the Employer, and the Company and its subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing your participation in the 2013 Plan.

You understand that the Employer holds certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Awards or any other entitlement to Shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the 2013 Plan (“Data”). You understand that Data may be transferred to any third parties assisting in the implementation, administration and management of the 2013 Plan, that these recipients may be located in your country or elsewhere, and that the recipient's country may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the 2013 Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom you may elect to deposit any Shares of stock acquired pursuant to this Agreement. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the 2013 Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents above, in any case without cost, by contacting in writing your local human resources representative. You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the 2013 Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.

		
	10.
	Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to the Performance Shares granted under this Agreement by electronic means or to request 

Page 6 of 12

your consent to participate in the 2013 Plan by electronic means. By signing this Agreement, you consent to receive such documents by electronic delivery and, if requested, to agree to participate in the 2013 Plan through an on-line or electronic system established and maintained by the Company or another third party designated by Company.

		
	11.
	General. 

		
	(a)
	Nothing in this Agreement will be construed as constituting a commitment, agreement or understanding of any kind that the Employer will continue your service relationship nor to limit or restrict either party's right to terminate the service relationship.

		
	(b)
	This Agreement shall be binding upon and inure to the benefit of you and the Company and upon our respective heirs, executors, administrators, representatives, successors and permitted assigns.

		
	(c)
	Notices under this Agreement must be in writing and delivered either by hand or by certified or registered mail (return receipt requested and first-class postage prepaid), in the case of the Company, addressed to its principal executive offices to the attention of the Stock Plan Administrator, and, in your case, to your address as shown on the Employer's records.

		
	(d)
	This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to the conflict of law provisions thereof, as if made and to be performed wholly within such State. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by the Performance Shares or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of North Carolina, agree that such litigation shall be conducted in the courts of Durham County, North Carolina, or the federal courts for the United States for the Middle District of North Carolina, and no other courts, where the award of the Performance Shares is made and/or to be performed.

		
	(e)
	No amendment or modification of this Agreement shall be valid unless the same is in writing and signed by you and by an authorized executive officer of the Company. If any provision of this Agreement is held to be invalid or unenforceable, such determination shall not affect the other provisions of the Agreement and the Agreement shall be construed as if the invalid or unenforceable provision were omitted and a valid and enforceable provision, as nearly comparable as possible, substituted in its place.

		
	(f)
	This Agreement, the 2013 Plan, and the applicable Severance Plan, if any, set forth all of the promises, agreements and understandings between you and Company relating to the Performance Shares evidenced by this Agreement. This Agreement supersedes any and all prior agreements or understandings, whether oral or written, with respect to the Performance Shares evidenced by this Agreement unless otherwise specified in the Agreement.

		
	(g)
	Shares issued upon settlement of the Performance Shares may be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange or trading system upon which the Common Stock is listed or traded, and any applicable federal or state laws, and the Committee may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions.

Page 7 of 12

		
	(h)
	You agree that each Performance Share evidenced by this Agreement serves as additional, valuable consideration for your obligations, if any, undertaken in any existing agreement between you and the Employer regarding confidential information, noncompetition, nonsolicitation or similar covenants, including without limitation the most recent version of the Employee Agreement Regarding Confidential Information, Intellectual Property, and Noncompetition in effect for you as the relevant date.

		
	(i)
	You acknowledge, represent and warrant to the Company, and agree with the Company, that, except for information provided in the Company’s filings with the Securities and Exchange Commission and in the Company’s current prospectus relating to the 2013 Plan: (i) you have not relied and will not rely upon the Committee, the Company, an Employer or any employee or agent of the Company or an Employer in determining whether to accept the Performance Shares, or in connection with any disposition of Shares obtained pursuant to settlement of the Performance Shares, or with respect to any tax consequences related to the grant of the Performance Shares or the disposition of Shares obtained pursuant to settlement of the Performance Shares; and (ii) you will seek from your own professional advisors such investment, tax and other advice as you believe necessary.

		
	(j)
	You acknowledge that you may incur a substantial tax liability as a result of the Performance Shares. You assume full responsibility for all such consequences and the filing of all tax returns and related elections you may be required or find desirable to file. If you are required to make any valuation of Performance Shares or Shares obtained pursuant to settlement of Performance Shares under any federal, state or other applicable tax law, and if the valuation affects any tax return or election of the Company or the Employer or affects the Company's financial statement reporting, you agree that the Company may determine the value and that you will observe any determination so made by the Company in all tax returns and elections filed by you.

		
	(k)
	You acknowledge that copies of the 2013 Plan and Plan prospectus are available upon written or telephonic request to the Company’s Stock Plan Administrator.

		
	12.
	Severability. The provisions of this Agreement are severable and if any one of more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

		
	13.
	Nature of Grant. In accepting this grant, you acknowledge, understand and agree that:

		
	(a)
	the 2013 Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, unless expressly provided otherwise in the 2013 Plan or the Agreement;

		
	(b)
	the grant of the Performance Shares is voluntary and does not create any contractual or other right to receive future grants of Performance Shares, or benefits in lieu of Performance Shares, even if Performance Shares have been granted repeatedly in the past;

		
	(c)
	all decisions with respect to future grants of Performance Shares, if any, will be at the sole discretion of the Company;

		
	(d)
	your participation in the 2013 Plan is voluntary;

Page 8 of 12

		
	(e)
	your participation in the 2013 Plan will not create a right to employment with the Company or the Employer and will not interfere with the ability of the Company, the Employer or any subsidiary or affiliate to terminate your employment or service relationship at any time;

		
	(f)
	if you are employed by a non-U.S. entity and provide services outside the U.S., the Performance Shares are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to your Employer, and they are outside the scope of your employment or service contract, if any, with your Employer;

		
	(g)
	the grant of the Performance Shares is not intended to replace any pension rights or compensation;

		
	(h)
	the grant of the Performance Shares is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

		
	(i)
	the grant of the Performance Shares and your participation in the 2013 Plan will not be interpreted to form an employment or service contract or relationship with the Company, the Employer or any subsidiary or affiliate of the Company;

		
	(j)
	the future value of the Performance Shares is unknown and cannot be predicted with certainty;

    
		
	(k)
	no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance Shares resulting from termination of your employment or service relationship by the Company or the Employer (for any reason whatsoever and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), and, in consideration of the grant of the Performance Shares, to which you otherwise are not entitled, you irrevocably agree, if applicable, to execute the Release, as defined in the applicable Severance Plan, if any;

		
	(l)
	the grant of the Performance Shares and the benefits under the 2013 Plan, if any, will not automatically transfer to another company in the case of a merger, takeover, or transfer of liability;

		
	(m)
	neither the Company, the Employer nor any subsidiary or affiliate of the Company shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Performance Shares or of any payments due to you pursuant to the subsequent sale of any Shares acquired upon the vesting of the Performance Shares; and

		
	(n)
	this award and any other award(s) granted under the 2013 Plan on the Grant Date are intended to fulfill any and all agreements, obligations or promises, whether legally binding or not, previously made by the Company or another Employer under the 2013 Plan to grant you the Performance Shares or other rights to common stock of the Company. By signing this Agreement, you accept such awards, along with all prior awards received by you, in full satisfaction of any such agreement, obligation or promise.

		
	14.
	No Advice Regarding Grant. The Company is not providing any tax, legal, or financial advice, nor is the Company making any recommendations regarding your participation in the 2013 Plan or sale 

Page 9 of 12

of Shares. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the 2013 Plan before taking any action related to the 2013 Plan.

		
	15.
	Compliance with Law. Notwithstanding any other provision of the 2013 Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Performance Shares or Shares, as applicable, the Company shall not be required to deliver the Performance Shares or any of the underlying Shares prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable. You understand that the Company is under no obligation to register or qualify the Performance Shares or any of the underlying Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance of the Performance Shares and Shares. Further, you agree that the Company shall have unilateral authority to amend the 2013 Plan and the Agreement without your consent to the extent necessary to comply with securities or other laws applicable to issuance of shares.

		
	16.
	Waiver. You acknowledge that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by you or any other participant.

		
	17.
	Appendix.  Notwithstanding any provisions in this Agreement, the Performance Shares shall be subject to any special terms and conditions set forth in any Appendix attached to this Agreement for your country to the extent that the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or to facilitate the administration of the 2013 Plan. Moreover, if you relocate to or from one of the countries included in any such Appendix, the special terms and conditions for the country you are moving from and/or the country you are moving to will apply to you to the extent that the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or to facilitate the administration of the 2013 Plan. If included, any such Appendix is incorporated in and constitutes part of this Agreement.

		
	18.
	Imposition of Other Requirements.  The Company reserves the right to impose other requirements on your participation in the 2013 Plan, on the Performance Shares and on any Shares acquired under the 2013 Plan, provided such requirements do not conflict with the Severance Plan, to the extent that the Company determines it is necessary or advisable in order to comply with local law or to facilitate the administration of the 2013 Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

		
	19.
	Section 409A. The Performance Shares are is intended to qualify for the “short-term deferral” exemption from Section 409A of the Code, and the provisions of this Agreement between you and the Company will be interpreted, operated and administered in a manner consistent with these intentions. The right to payment triggered by each installment vesting date or vesting event pursuant to this Agreement is intended to be a right to a separate payment for purposes of Section 409A of the Code. The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, without your consent, to unilaterally amend or modify the 2013 Plan and/or this Agreement to ensure that the Performance Shares qualify for exemption from or comply with Section 409A of the Code; provided, however, that the Company makes no representations that the Performance Shares will be exempt from Section 409A of the Code and makes no undertaking to 

Page 10 of 12

preclude Section 409A of the Code from applying to the Performance Shares. With respect to any amounts payable under this Agreement that are subject to Section 409A of the Code, (i) it is intended, and this Agreement will be so construed, that such amounts and the Company’s and your exercise of authority or discretion hereunder shall comply with the provisions of Section 409A of the Code so as not to subject you to the payment of interest and additional tax that may be imposed under Section 409A of the Code; (ii) any provisions of this Agreement that provide for payment of compensation triggered by your termination of employment other than on account of your death shall be deemed to provide for payment that is triggered only by your “separation from service” within the meaning of Treasury Regulation Section §1.409A-1(h) (a “Section 409A Separation from Service”), (iii) if you are a “specified employee” within the meaning of Treasury Regulation Section §1.409A-1(i) on the date of your Section 409A Separation from Service (with such status determined by the Company in accordance with rules established by the Company in writing in advance of the “specified employee identification date” that relates to the date of such Section 409A Separation from Service or in the absence of such rules established by the Company, under the default rules for identifying specified employees under Treasury Regulation Section 1.409A-1(i)), such compensation triggered by such Section 409A Separation from Service shall be paid to you six months following the date of such Section 409A Separation from Service (provided, however, that if you die after the date of such Section 409A Separation from Service, this six month delay shall not apply from and after the date of your death), and (iv) to the extent necessary to comply with Section 409A of the Code, the definition of change in control that applies under Section 409A of the Code shall apply under this Agreement to the extent that it is more restrictive than the definition of change in control that would otherwise apply. The Company will have no liability to you or to any other party if the Performance Shares, the vesting of the Performance Shares, delivery of Shares in payment of the Performance Shares or any other event hereunder that is intended to be exempt from or compliant with Section 409A of the Code, is not so exempt or compliant, or for any action taken by the Company with respect thereto.

Page 11 of 12

Exhibit A
Performance Criteria
The number of Shares that will be issued in payment of the Performance Shares will be calculated in accordance with the schedule below:

	
					
	Performance Criteria
	Weight
	Payout % Level1
(# of Shares)

	50%
	100%
	150%

	Design-Ins2
	25%
	7,370
	14,739
	22,109

	MOSFET Yield2
	25%
	7,369
	14,738
	22,107

	Mohawk Valley Fab Capacity (wafers/week)2
	25%
	7,369
	14,738
	22,107

	Diversity, Equity & Inclusion (“DEI”)3 
	25%
	7,369
	14,738
	22,107

	Total Payout (est.)4
	100%
	29,477 Shares
	58,953 Shares
	88,430 Shares

                

1 Straight line interpolation shall be used to determine the payout level for performance that falls between the ranking levels shown above (provided that the payout level for performance below the 50% will be 0, and the payout level for performance at or above the 150% will be capped at 150%). The calculation of the number of Shares to be issued will be rounded down to the nearest whole number of Shares as necessary.
2 Achievement determined in accordance with the methodology established by management for reporting on each such Performance Criteria to the Board of Directors and the threshold, target, and maximum performance levels approved by the Compensation Committee on August 24, 2020 and August 26, 2020. 
3 Achievement determined based on the DEI Action Plan Scorecard reviewed and approved by the Compensation Committee on August 24, 2020 and August 26, 2020.
4 Assumes payout at 50%, 100%, and 150% levels, respectively, for all four Performance Criteria.

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