Document:

EX-10.1

 Exhibit 10.1 

AURORA MOBILE LIMITED 

2021 SHARE INCENTIVE PLAN 

ARTICLE 1 
 PURPOSE

 The purpose of this 2021 Share Incentive Plan is to promote the success and enhance the value of Aurora Mobile Limited, an exempted
company formed under the laws of the Cayman Islands (the “Company”), by linking the personal interests of the Directors, Employees, and Consultants to those of the Company’s shareholders and by providing such individuals with
an incentive for outstanding performance to generate superior returns to the Company’s shareholders. 
 ARTICLE 2 

DEFINITIONS AND CONSTRUCTION 

Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise.
The singular pronoun shall include the plural where the context so indicates. 
 2.1 “Applicable Laws” means the legal
requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations and government orders, and the rules of any applicable stock exchange or national market system, of any
jurisdiction applicable to Awards granted to residents therein.
 2.2 “Award” means an Option, Restricted Share, Restricted
Share Unit or other types of award approved by the Committee granted to a Participant pursuant to the Plan. 
 2.3 “Award
Agreement” means any written agreement, contract, or other instrument or document evidencing an Award, including through electronic medium. 

2.4 “Board” means the board of directors of the Company. 

2.5 “Cause” with respect to a Participant means (unless otherwise expressly provided in the applicable Award Agreement, or
another applicable contract with the Participant that defines such term for purposes of determining the effect that a “for cause” termination has on the Participant’s Awards) a termination of employment or service based upon a finding
by the Service Recipient, acting in good faith and based on its reasonable belief at the time, that the Participant: 
 (a) has been
negligent in the discharge of his or her duties to the Service Recipient, has refused to perform stated or assigned duties or is incompetent in or (other than by reason of a disability or analogous condition) incapable of performing those duties;

 (b) has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of confidentiality, an unauthorized
disclosure or use of inside information, customer lists, trade secrets or other confidential information; 
  

 (c) has breached a fiduciary duty, or willfully and materially violated any other duty, law,
rule, regulation or policy of the Service Recipient; or has been convicted of, or plead guilty or nolo contendere to, a felony or misdemeanor (other than minor traffic violations or similar offenses); 

(d) has materially breached any of the provisions of any agreement with the Service Recipient; 

(e) has engaged in unfair competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of,
the Service Recipient; or 
 (f) has improperly induced a vendor or customer to break or terminate any contract with the Service Recipient
or induced a principal for whom the Service Recipient acts as agent to terminate such agency relationship. 
 A termination for Cause shall
be deemed to occur (subject to reinstatement upon a contrary final determination by the Committee) on the date on which the Service Recipient first delivers written notice to the Participant of a finding of termination for Cause. 

2.6 “Code” means the Internal Revenue Code of 1986 of the United States, as amended. 

2.7 “Committee” means a committee of the Board described in Article 10. 

2.8 “Consultant” means any consultant or adviser if: (a) the consultant or adviser renders bona fide services to a
Service Recipient; (b) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the
Company’s securities; and (c) the consultant or adviser has contracted directly with the Service Recipient to render such services. 

2.9 “Corporate Transaction”, unless otherwise defined in an Award Agreement, means any of the following transactions,
provided, however, that the Committee shall determine under (d) and (e) whether multiple transactions are related, and its determination shall be final, binding and conclusive: 

(a) an amalgamation, arrangement or consolidation or scheme of arrangement (i) in which the Company is not the surviving entity, except
for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated or (ii) following which the holders of the voting securities of the Company do not continue to hold more than 50% of the
combined voting power of the voting securities of the surviving entity; 
 (b) the sale, transfer or other disposition of all or
substantially all of the assets of the Company; 
 (c) the complete liquidation or dissolution of the Company; 

 

  
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 (d) any reverse takeover or series of related transactions culminating in a reverse takeover
(including, but not limited to, a tender offer followed by a reverse takeover) in which the Company is the surviving entity but (A) the Company’s equity securities outstanding immediately prior to such takeover are converted or exchanged
by virtue of the takeover into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities are transferred to a person or persons different from those who held such securities immediately prior to such takeover or the initial transaction culminating in such takeover, but excluding any such transaction or series of related
transactions that the Committee determines shall not be a Corporate Transaction; or 
 (e) acquisition in a single or series of related
transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of
securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities but excluding any such transaction or series of related transactions that the Committee determines shall not be a
Corporate Transaction. 
 2.10 “Director”, means a member of the Board or a member of the board of directors of any
Subsidiary of the Company. 
 2.11 “Disability”, unless otherwise defined in an Award Agreement, means that the Participant
qualifies to receive long-term disability payments under the Service Recipient’s long-term disability insurance program, as it may be amended from time to time, to which the Participant provides services regardless of whether the Participant is
covered by such policy. If the Service Recipient to which the Participant provides service does not have a long-term disability plan in place, “Disability” means that a Participant is unable to carry out the responsibilities and functions
of the position held by the Participant by reason of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Participant will not be considered to have incurred a Disability unless
he or she furnishes proof of such impairment sufficient to satisfy the Committee in its discretion. 
 2.12 “Effective
Date” shall have the meaning set forth in Section 11.1. 
 2.13 “Employee” means any person, including an
officer or a Director, who is in the employment of a Service Recipient, subject to the control and direction of the Service Recipient as to both the work to be performed and the manner and method of performance. The payment of a director’s fee
by a Service Recipient shall not be sufficient to constitute “employment” by the Service Recipient. 
 2.14 “Exchange
Act” means the Securities Exchange Act of 1934 of the United States, as amended. 
 2.15 “Fair Market Value”
means, as of any date, the value of Shares determined as follows: 
 (a) If the Shares are listed on one or more established stock exchanges
or national market systems, including without limitation, the New York Stock Exchange or the Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no sales were reported) as quoted on the
principal exchange or system on which the Shares are listed (as determined by the Committee) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing
sales price or closing bid was reported), as reported on the website maintained by such exchange or market system or such other source as the Committee deems reliable; 

  
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 (b) If the Shares are regularly quoted on an automated quotation system (including the OTC
Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such Shares as quoted on such system or by such securities dealer on the date of determination, but if selling prices are not reported,
the Fair Market Value of a Share shall be the mean between the high bid and low asked prices for the Shares on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in
The Wall Street Journal or such other source as the Committee deems reliable; or 
 (c) In the absence of an established market for the
Shares of the type described in (a) and (b) above, the Fair Market Value thereof shall be determined by the Committee in good faith and in its discretion by reference to (i) the placing price of the latest private placement of the Shares
and the development of the Company’s business operations and the general economic and market conditions since such latest private placement, (ii) other third party transactions involving the Shares and the development of the Company’s
business operation and the general economic and market conditions since such transaction, (iii) an independent valuation of the Shares, or (iv) such other methodologies or information as the Committee determines to be indicative of Fair
Market Value. 
 2.16 “Group Entity” means any of the Company and Subsidiaries of the Company. 

2.17 “Incentive Share Option” means an Option that is intended to meet the requirements of Section 422 of the Code or
any successor provision thereto. 
 2.18 “Independent Director” means (i) if the Shares or other securities
representing the Shares are not listed on a stock exchange, a Director of the Company who is a Non-Employee Director; and (ii) if the Shares or other securities representing the Shares are listed on one
or more stock exchange, a Director of the Company who meets the independence standards under the applicable corporate governance rules of the stock exchange(s). 

2.19 “Non-Employee Director” means a member of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor definition adopted by the Board. 

2.20 “Non-Qualified Share Option” means an Option that is not intended to be an
Incentive Share Option. 
 2.21 “Option” means a right granted to a Participant pursuant to Article 5 of the Plan to
purchase a specified number of Shares at a specified price during specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified Share Option. 

2.22 “Participant” means a person who, as a Director, Consultant or Employee, has been granted an Award pursuant to the Plan.

 2.23 “Parent” means a parent corporation under Section 424(e) of the Code. 

2.24 “Plan” means this 2021 Share Incentive Plan of Aurora Mobile Limited, as amended and/or restated from time to time. 

 

  
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 2.25 “Related Entity” means any business, corporation, partnership, limited
liability company or other entity in which the Company, a Parent or Subsidiary of the Company holds a substantial ownership interest, directly or indirectly, or controls through contractual arrangements and consolidates the financial results
according to applicable accounting standards, but which is not a Subsidiary and which the Board designates as a Related Entity for purposes of the Plan. 

2.26 “Restricted Share” means a Share awarded to a Participant pursuant to Article 6 that is subject to certain restrictions
and may be subject to risk of forfeiture. 
 2.27 “Restricted Share Unit” means the right granted to a Participant pursuant
to Article 7 to receive a Share at a future date. 
 2.28 “Securities Act” means the Securities Act of 1933 of the United
States, as amended. 
 2.29 “Service Recipient” means the Company or Subsidiary of the Company to which a Participant
provides services as an Employee, a Consultant or a Director. 
 2.30 “Share” means the Class A common shares of the
Company, par value US$0.0001 per share, and such other securities of the Company that may be substituted for Shares pursuant to Article 9. 

2.31 “Subsidiary” means any corporation or other entity of which a majority of the outstanding voting shares or voting power
is beneficially owned directly or indirectly by the Company. 
 2.32 “Trading Date” means the closing of the first sale to
the general public of the Shares pursuant to a registration statement filed with and declared effective by the U.S. Securities and Exchange Commission under the Securities Act. 

ARTICLE 3 
 SHARES
SUBJECT TO THE PLAN 
 3.1 Number of Shares. 

(a) Subject to the provisions of Article 9 and Section 3.1(b), the maximum aggregate number of Shares which may be issued pursuant to all
Awards (including Incentive Share Options) (the “Award Pool”) shall be 4,000,000 (to be equitably adjusted in the event of any share dividend, subdivision, reclassification, recapitalization, split, reverse split, combination,
consolidation or similar transactions). 
 (b) To the extent that an Award terminates, expires, or lapses for any reason, any Shares subject
to the Award shall again be available for the grant of an Award pursuant to the Plan. To the extent permitted by Applicable Laws, Shares issued in assumption of, or in substitution for, any outstanding awards of any entity acquired in any form or
combination by a Group Entity shall not be counted against Shares available for grant pursuant to the Plan. Shares delivered by the Participant or withheld by the Company upon the exercise of any Award under the Plan, in payment of the exercise
price thereof or tax withholding thereon, may again be optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a). If any Restricted Shares are forfeited by the Participant or repurchased by the Company, such Shares
may again be optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned, granted or awarded if such action would cause an
Incentive Share Option to fail to qualify as an incentive share option under Section 422 of the Code. 
  

  
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	 	3.2	 Shares Distributed. Any Share distributed pursuant to an Award may consist, in whole or in part, of
authorized and unissued Shares, treasury Shares (subject to Applicable Laws) or Shares purchased on the open market. Additionally, at the discretion of the Committee, any Shares distributed pursuant to an Award may be represented by American
Depository Shares. If the number of Shares represented by an American Depository Share is other than on a one-to-one basis, the limitations of Section 3.1 shall be
adjusted to reflect the distribution of American Depository Shares in lieu of Shares. 

 ARTICLE 4 

ELIGIBILITY AND PARTICIPATION 
  

	 	4.1	 Eligibility. Persons eligible to participate in this Plan include Employees, Consultants, and Directors,
as determined by the Committee. 

  

	 	4.2	 Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from
among all eligible individuals, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted an Award pursuant to this Plan. 

 

	 	4.3	 Jurisdictions. In order to assure the viability of Awards granted to Participants employed in various
jurisdictions, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom applicable in the jurisdiction in which the Participant resides, is employed,
operates or is incorporated. Moreover, the Committee may approve such supplements to, or amendments, restatements, or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms
of the Plan as in effect for any other purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions shall increase the share limitations contained in Section 3.1 of the Plan. Notwithstanding the
foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any Applicable Laws. 

ARTICLE 5 
 OPTIONS

  

	 	5.1	 General. The Committee is authorized to grant Options to Participants on the following terms and
conditions: 

 (a) Exercise Price. The exercise price per Share subject to an Option shall be determined by the
Committee and set forth in the Award Agreement which may be a fixed price or a variable price related to the Fair Market Value of the Shares. The exercise price per Share subject to an Option may be amended or adjusted in the absolute discretion of
the Committee, the determination of which shall be final, binding and conclusive. For the avoidance of doubt, to the extent not prohibited by Applicable Laws or any exchange rule, a downward adjustment of the exercise prices of Options mentioned in
the preceding sentence shall be effective without the approval of the Company’s shareholders or the approval of the affected Participants. Notwithstanding anything in the foregoing, the exercise price shall in no circumstances be less than the
par value of the Shares. 
  

  
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 (b) Time and Conditions of Exercise. The Committee shall determine the time or times
at which an Option may be exercised in whole or in part, including exercise prior to vesting; provided that the term of any Option granted under the Plan shall not exceed ten years, except as provided in Section 12.1. The Committee shall also
determine any conditions, if any, that must be satisfied before all or part of an Option may be exercised. 
 (c) Payment. The
Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, including, without limitation (i) cash or check denominated in U.S. Dollars, (ii) to the extent permissible under the
Applicable Laws, cash or check in Chinese Renminbi, (iii) cash or check denominated in any other local currency as approved by the Committee, (iv) Shares held for such period of time as may be required by the Committee in order to avoid
adverse financial accounting consequences and having a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof, (v) after the Trading Date the delivery of a notice that the
Participant has placed a market sell order with a broker with respect to Shares then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price; provided that payment of such proceeds is then made to the Company upon settlement of such sale, (vi) other property acceptable to the Committee with a Fair Market Value equal to the exercise price, or
(vii) any combination of the foregoing. Notwithstanding any other provision of the Plan to the contrary, no Participant who is a member of the Board or an “executive officer” of the Company within the meaning of Section 13(k) of
the Exchange Act shall be permitted to pay the exercise price of an Option in any method which would violate Section 13(k) of the Exchange Act. 

(d) Evidence of Grant. All Options shall be evidenced by an Award Agreement between the Company and the Participant. The Award
Agreement shall include such additional provisions as may be specified by the Committee. 
 (e) Effects of Termination of Employment or
Service on Options. Termination of employment or service shall have the following effects on Options granted to the Participants: 

(i) Dismissal for Cause. Unless otherwise provided in the Award Agreement or with prior written approval from the Committee, if
a Participant’s employment by or service to the Service Recipient is terminated by the Service Recipient for Cause, the Participant’s Options will terminate upon such termination, whether or not the Option is then vested and/or
exercisable; 
 (ii) Death or Disability. Unless otherwise provided in the Award Agreement, if a Participant’s employment by or
service to the Service Recipient terminates as a result of the Participant’s death or Disability: 
  

  
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	 	(a)	 the Participant (or his or her legal representative or beneficiary, in the case of the Participant’s
Disability or death, respectively), will have until the date that is 12 months after the Participant’s termination of Employment or service to exercise the Participant’s Options (or portion thereof) to the extent that such Options were
vested and exercisable on the date of the Participant’s termination of Employment or service on account of death or Disability; 

  

	 	(b)	 the Options, to the extent not vested on the date of the Participant’s termination of Employment or
service, shall terminate upon the Participant’s termination of Employment or service on account of death or Disability; and 

  

	 	(c)	 the Options, to the extent exercisable for the 12-month period
following the Participant’s termination of Employment or service and not exercised during such period, shall terminate at the close of business on the last day of the 12-month period.

 (iii) Other Terminations of Employment or Service. Unless otherwise provided in the Award Agreement, if a
Participant’s employment by or service to the Service Recipient terminates for any reason other than a termination by the Service Recipient for Cause or because of the Participant’s death or Disability: 

 

	 	(a)	 the Participant will have until the date that is 90 days after the Participant’s termination of Employment
or service to exercise his or her Options (or portion thereof) to the extent that such Options were vested and exercisable on the date of the Participant’s termination of Employment or service; 

 

	 	(b)	 the Options, to the extent not vested on the date of the Participant’s termination of Employment or
service, shall terminate upon the Participant’s termination of Employment or service; and 

  

	 	(c)	 the Options, to the extent exercisable for the 90-day period following
the Participant’s termination of Employment or service and not exercised during such period, shall terminate at the close of business on the last day of the 90-day period. 

 

	 	5.2	 Incentive Share Options. Incentive Share Options may be granted to Employees of the Company or a
Subsidiary of the Company. Incentive Share Options may not be granted to employees of a Related Entity or to Independent Directors or Consultants. The terms of any Incentive Share Options granted pursuant to the Plan, in addition to the requirements
of Section 5.1, must comply with the following additional provisions of this Section 5.2: 

 (a) Individual
Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares with respect to which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed $100,000
or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive Share Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Share Options. 

  
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 (b) Exercise Price. The exercise price of an Incentive Share Option shall be equal to
the Fair Market Value on the date of grant. However, the exercise price of any Incentive Share Option granted to any individual who, at the date of grant, owns Shares possessing more than ten percent of the total combined voting power of all classes
of shares of the Company or any Parent or Subsidiary of the Company may not be less than 110% of Fair Market Value on the date of grant and such Option may not be exercisable for more than five years from the date of grant. Notwithstanding anything
in the foregoing, the exercise price shall in no circumstances be less than the par value of the Shares. 
 (c) Transfer Restriction.
The Participant shall give the Company prompt notice of any disposition of Shares acquired by exercise of an Incentive Share Option within (i) two years from the date of grant of such Incentive Share Option or (ii) one year after the
transfer of such Shares to the Participant. 
 (d) Expiration of Incentive Share Options. No Award of an Incentive Share Option may
be made pursuant to this Plan after the tenth anniversary of the Effective Date. 
 (e) Right to Exercise. During a
Participant’s lifetime, an Incentive Share Option may be exercised only by the Participant. 
 ARTICLE 6 

RESTRICTED SHARES 
  

	 	6.1	 Grant of Restricted Shares. The Committee, at any time and from time to time, may grant Restricted
Shares to Participants as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Restricted Shares to be granted to each Participant. 

 

	 	6.2	 Restricted Shares Award Agreement. Each Award of Restricted Shares shall be evidenced by an Award
Agreement that shall specify the period of restriction, the number of Restricted Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the Committee determines otherwise, Restricted
Shares shall be held by the Company as escrow agent until the restrictions on such Restricted Shares have lapsed. 

  

	 	6.3	 Issuance and Restrictions. Restricted Shares shall be subject to such restrictions on transferability
and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Shares or the right to receive dividends on the Restricted Shares). These restrictions may lapse separately or in
combination at such times, pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. 

 

	 	6.4	 Forfeiture/Repurchase. Except as otherwise determined by the Committee at the time of the grant of the
Award or thereafter, upon termination of employment or service during the applicable restriction period, Restricted Shares that are at that time subject to restrictions shall be forfeited or repurchased in accordance with the Award Agreement;
provided, however, the Committee may (a) provide in any Restricted Share Award Agreement that restrictions or forfeiture and repurchase conditions relating to Restricted Shares will be waived in whole or in part in the event of terminations
resulting from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture and repurchase conditions relating to Restricted Shares. 

 

  
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	 	6.5	 Certificates for Restricted Shares. Restricted Shares granted pursuant to the Plan may be evidenced in
such manner as the Committee shall determine. If certificates representing Restricted Shares are registered in the name of the Participant, certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable
to such Restricted Shares, and the Company may, at its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse. 

 

	 	6.6	 Removal of Restrictions. Except as otherwise provided in this Article 6, Restricted Shares granted under
the Plan shall be released from escrow as soon as practicable after the last day of the period of restriction. The Committee, in its discretion, may accelerate the time at which any restrictions shall lapse or be removed. After the restrictions have
lapsed, the Participant shall be entitled to have any legend or legends under Section 6.5 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant, subject to applicable legal restrictions. The
Committee (in its discretion) may establish procedures regarding the release of Shares from escrow and the removal of legends, as necessary or appropriate to minimize administrative burdens on the Company. 

ARTICLE 7 
 RESTRICTED
SHARE UNITS 
 7.1 Grant of Restricted Share Units. The Committee, at any time and from time to time, may grant Restricted Share
Units to Participants as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Restricted Share Units to be granted to each Participant. 

7.2 Restricted Share Units Award Agreement. Each Award of Restricted Share Units shall be evidenced by an Award Agreement that shall
specify any vesting conditions, the number of Restricted Share Units granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 

7.3 Form and Timing of Payment of Restricted Share Units. At the time of grant, the Committee shall specify the date or dates on which
the Restricted Share Units shall become fully vested and nonforfeitable. Upon vesting, the Committee, in its sole discretion, may pay Restricted Share Units in the form of cash, Shares or a combination thereof. 

7.4 Forfeiture/Repurchase. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon
termination of employment or service during the applicable restriction period, Restricted Share Units that are at that time unvested shall be forfeited or repurchased in accordance with the Award Agreement; provided, however, the Committee may
(a) provide in any Restricted Share Unit Award Agreement that restrictions or forfeiture and repurchase conditions relating to Restricted Share Units will be waived in whole or in part in the event of terminations resulting from specified
causes, and (b) in other cases waive in whole or in part restrictions or forfeiture and repurchase conditions relating to Restricted Share Units. 

  
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 ARTICLE 8 

PROVISIONS APPLICABLE TO AWARDS 
  

	 	8.1	 Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms,
conditions and limitations for each Award which may include the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates, and the Company’s authority to unilaterally or bilaterally amend,
modify, suspend, cancel or rescind an Award. 

  

	 	8.2	 No Transferability; Limited Exception to Transfer Restrictions. 

8.2.1 Limits on Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 8.2, by applicable law and by the
Award Agreement, as the same may be amended: 
 (a) all Awards are non-transferable and will not be
subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge; 
 (b) Awards will be
exercised only by the Participant; and 
 (c) amounts payable or shares issuable pursuant to an Award will be delivered only to (or for the
account of), and, in the case of Shares, registered in the name of, the Participant. 
 In addition, the shares shall be subject to the
restrictions set forth in the applicable Award Agreement. 
 8.2.2 Further Exceptions to Limits on Transfer. The exercise and
transfer restrictions in Section 8.2.1 will not apply to: 
 (a) transfers to the Company or a Subsidiary; 

(b) transfers by gift to “immediate family” as that term is defined in SEC Rule 16a-1(e)
promulgated under the Exchange Act; 
 (c) the designation of a beneficiary to receive benefits if the Participant dies or, if the
Participant has died, transfers to or exercises by the Participant’s beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent and distribution; or 

(d) if the Participant has suffered a disability, permitted transfers or exercises on behalf of the Participant by the Participant’s duly
authorized legal representative; or 
  

  
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 (e) subject to the prior approval of the Committee or an executive officer or director of
the Company authorized by the Committee, transfer to one or more natural persons who are the Participant’s family members or entities owned and controlled by the Participant and/or the Participant’s family members, including but not
limited to trusts or other entities whose beneficiaries or beneficial owners are the Participant and/or the Participant’s family members, or to such other persons or entities as may be expressly approved by the Committee, pursuant to such
conditions and procedures as the Committee or may establish. Any permitted transfer shall be subject to the condition that the Committee receives evidence satisfactory to it that the transfer is being made for estate and/or tax planning purposes and
on a basis consistent with the Company’s lawful issue of securities. 
 Notwithstanding anything else in this Section 8.2.2 to the
contrary, but subject to compliance with all Applicable Laws, Incentive Share Options, Restricted Shares and Restricted Share Units will be subject to any and all transfer restrictions under the Code applicable to such Awards or necessary to
maintain the intended tax consequences of such Awards. Notwithstanding clause (b) above but subject to compliance with all Applicable Laws, any contemplated transfer by gift to “immediate family” as referenced in clause (b) above
is subject to the condition precedent that the transfer be approved by the Committee in order for it to be effective. 
  

	 	8.3	 Beneficiaries. Notwithstanding Section 8.2, a Participant may, in the manner determined by the
Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming
any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Committee. If the Participant is married and resides in a community property state and there is a designation of a person other than the Participant’s spouse as his or her beneficiary with respect to more than
50% of the Participant’s interest in the Award, the designation of such portion of the Participant’s interest exceeding 50% shall not be effective without the prior written consent of the Participant’s spouse, while the designation of
such portion of the Participant’s interest of up to 50% shall remain effective. If no beneficiary has been designated or survives the Participant, payment shall be made to the person entitled thereto pursuant to the Participant’s will or
the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is filed with the Committee. 

 

	 	8.4	 Performance Objectives and Other Terms. The Committee, in its discretion, shall set performance
objectives or other vesting criteria which, depending on the extent to which they are met, will determine the number or value of the Awards that will be granted or paid out to the Participants. 

 

  
 12 

	 	8.5	 Share Certificates. Notwithstanding anything herein to the contrary, the Company shall not be required
to issue or deliver any certificates evidencing the Shares pursuant to the exercise of any Award, unless and until the Committee has determined, with advice of counsel, that the issuance and delivery of such certificates is in compliance with all
Applicable Laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the Shares are listed or traded. All Share certificates delivered pursuant to the Plan are subject to any stop-transfer orders and
other restrictions as the Committee deems necessary or advisable to comply with all Applicable Laws, and the rules of any national securities exchange or automated quotation system on which the Shares are listed, quoted, or traded. The Committee may
place legends on any Share certificate to reference restrictions applicable to the Shares. In addition to the terms and conditions provided herein, the Committee may require that a Participant make such reasonable covenants, agreements, and
representations as the Committee, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements. The Committee shall have the right to require any Participant to comply with any timing or other restrictions
with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Committee. 

  

	 	8.6	 Paperless Administration. Subject to Applicable Laws, the Committee may make Awards and provide
applicable disclosure and procedures for exercise of Awards by an internet website or interactive voice response system for the paperless administration of Awards. 

 

	 	8.7	 Foreign Currency. A Participant may be required to provide evidence that any currency used to pay the
exercise price of any Award was acquired and taken out of the jurisdiction in which the Participant resides in accordance with Applicable Laws, including foreign exchange control laws and regulations. In the event the exercise price for an Award is
paid in Chinese Renminbi or other foreign currency, as permitted by the Committee, the amount payable will be determined by conversion from U.S. dollars at the official rate promulgated by the People’s Bank of China for Chinese Renminbi, or for
jurisdictions other than the People’s Republic of China, the exchange rate as selected by the Committee on the date of exercise. 

ARTICLE 9 
 CHANGES IN
CAPITAL STRUCTURE 
  

	 	9.1	 Adjustments. In the event of any dividend, share split, combination or exchange of Shares, amalgamation,
arrangement or consolidation, spin-off, recapitalization or other distribution (other than normal cash dividends) of Company assets to its shareholders, or any other change affecting the Shares or the share
price of a Share, the Committee shall make such proportionate adjustments, if any, as the Committee in its discretion may deem appropriate to reflect such change with respect to (a) the aggregate number and type of shares that may be issued
under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1); (b) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect
thereto); and (c) the grant or exercise price per Share for any outstanding Awards under the Plan provided that the exercise price per Share shall in no circumstances be less than the par value of the Shares. 

 

  
 13 

	 	9.2	 Corporate Transactions. Except as may otherwise be provided in any Award Agreement or any other written
agreement entered into by and between the Company and a Participant, if the Committee anticipates the occurrence, or upon the occurrence, of a Corporate Transaction, the Committee may, in its sole discretion, provide for (i) any and all Awards
outstanding hereunder to terminate at a specific time in the future and shall give each Participant the right to exercise the vested portion of such Awards during a period of time as the Committee shall determine, or (ii) the purchase of any
Award for an amount of cash equal to the amount that could have been attained upon the exercise of such Award (and, for the avoidance of doubt, if as of such date the Committee determines in good faith that no amount would have been attained upon
the exercise of such Award, then such Award may be terminated by the Company without payment), or (iii) the replacement of such Award with other rights or property selected by the Committee in its sole discretion or the assumption of or
substitution of such Award by the successor or surviving corporation, or a Parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of Shares and prices, or (iv) payment of such Award in cash based on the value of
Shares on the date of the Corporate Transaction plus reasonable interest on the Award through the date as determined by the Committee when such Award would otherwise be vested or have been paid in accordance with its original terms, if necessary to
comply with Section 409A of the Code. 

  

	 	9.3	 Outstanding Awards – Other Changes. In the event of any other change in the capitalization of the
Company or corporate change other than those specifically referred to in this Article 9, the Committee may, in its absolute discretion, make such adjustments in the number and class of shares subject to Awards outstanding on the date on which such
change occurs and in the per share grant or exercise price of each Award as the Committee may consider appropriate to prevent dilution or enlargement of rights. 

 

	 	9.4	 No Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by
reason of any subdivision or consolidation of Shares of any class, the payment of any dividend, any increase or decrease in the number of shares of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other
corporation. Except as expressly provided in the Plan or pursuant to action of the Committee under the Plan, and no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number of Shares subject to an Award or the grant or exercise price of any Award. 

ARTICLE 10 

ADMINISTRATION 
  

	 	10.1	 Committee. The Plan shall be administered by the Board or a committee of one or more members of the
Board (the “Committee”) to whom the Board shall delegate the authority to grant or amend Awards to Participants other than any of the Committee members, Independent Directors and executive officers of the Company. Reference to the
Committee shall refer to the Board in absence of the Committee. Notwithstanding the foregoing, the full Board, acting by majority of its members in office, shall conduct the general administration of the Plan if required by Applicable Laws, and with
respect to Awards granted to the Committee members, Independent Directors and executive officers of the Company and for purposes of such Awards the term “Committee” as used in the Plan shall be deemed to refer to the Board.

  
 14 

	 	10.2	 Action by the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority
of the members present at any meeting at which a quorum is present, and acts approved unanimously in writing all members of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to,
in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of a Group Entity, the Company’s independent certified public accountants, or any executive compensation consultant or
other professional retained by the Company to assist in the administration of the Plan. 

  

	 	10.3	 Authority of the Committee. Subject to any specific designation in the Plan, the Committee has the
exclusive power, authority and discretion to: 

 (a) designate Participants to receive Awards; 

(b) determine the type or types of Awards to be granted to each Participant; 

(c) determine the number of Awards to be granted and the number of Shares to which an Award will relate; 

(d) designate an administrator to administer the Awards to Participants other than Committee members, independent directors or executive
officers of the Company, including designating Participants to receive Awards, determining the type or types of Awards to be granted to each Participant, and determining the number of Awards to be granted and the number of Shares to which an Award
will relate; 
 (e) determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the
exercise price, grant price, or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, and any
provisions related to non-competition and recapture of gain on an Award, based in each case on such considerations as the Committee in its sole discretion determines; 

(f) determine whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be
paid in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 
 (g) prescribe the form of
each Award Agreement, which need not be identical for each Participant; 
 (h) decide all other matters that must be determined in
connection with an Award; 
 (i) establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer
the Plan; 
 (j) interpret the terms of, and any matter arising pursuant to, the Plan or any Award Agreement; 

(k) amend terms and conditions of Award Agreements; and 

  
 15 

 (l) make all other decisions and determinations that may be required pursuant to the Plan or
as the Committee deems necessary or advisable to administer the Plan, including design and adopt from time to time new types of Awards that are in compliance with Applicable Laws. 

 

	 	10.4	 Decisions Binding. The Committee’s interpretation of the Plan, any Awards granted pursuant to the
Plan, any Award Agreement and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. 

ARTICLE 11 
 EFFECTIVE
AND EXPIRATION DATE 
  

	 	11.1	 Effective Date. The Plan shall become effective as of the date on which the Board adopts the Plan or as
otherwise specified by the Board when adopting the Plan (the “Effective Date”). 

  

	 	11.2	 Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the
tenth anniversary of the Effective Date. Any Awards that are outstanding on the tenth anniversary of the Effective Date shall remain in force according to the terms of the Plan and the applicable Award Agreement. 

ARTICLE 12 
 AMENDMENT,
MODIFICATION, AND TERMINATION 
  

	 	12.1	 Amendment, Modification, and Termination. At any time and from time to time, the Board may terminate,
amend or modify the Plan; provided, however, that (a) to the extent necessary and desirable to comply with Applicable Laws or stock exchange rules, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such
a degree as required, unless the Company decides to follow home country practice in lieu of shareholder approval as permissible under the applicable stock exchange rules, and (b) unless the Company decides to follow home country practice in
lieu of shareholder approval as permissible under the applicable stock exchange rules, shareholder approval is required for any amendment to the Plan that (i) increases the number of Shares available under the Plan (other than any adjustment as
provided by Article 9 or Section 3.1(a)), or (ii) permits the Committee to extend the term of the Plan or the exercise period for an Option beyond ten years from the date of grant. 

 

	 	12.2	 Awards Previously Granted. Except with respect to amendments made pursuant to Section 12.1, no
termination, amendment, or modification of the Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without the prior written consent of the Participant. 

  
 16 

 ARTICLE 13 

GENERAL PROVISIONS 
  

	 	13.1	 No Rights to Awards. No Participant, employee, or other person shall have any claim to be granted any
Award pursuant to the Plan, and neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly. 

  

	 	13.2	 No Shareholders Rights. No Award gives the Participant any of the rights of a shareholder of the Company
unless and until Shares are in fact issued to such person in connection with such Award. 

  

	 	13.3	 Taxes. No Shares shall be delivered under the Plan to any Participant until such Participant has made
arrangements acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws. The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a
Participant to remit to the Company, an amount sufficient to satisfy all applicable taxes (including the Participant’s payroll tax obligations) required or permitted by Applicable Laws to be withheld with respect to any taxable event concerning
a Participant arising as a result of this Plan. The Committee may in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the
return of Shares) having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased from the Participant of such Award after such Shares were acquired by the Participant from the Company) in order to satisfy any income and payroll tax liabilities applicable to the Participant with respect to the
issuance, vesting, exercise or payment of the Award shall, unless specifically approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of
such liabilities based on the minimum statutory withholding rates for the applicable income and payroll tax purposes that are applicable to such supplemental taxable income. 

 

	 	13.4	 No Right to Employment or Services. Nothing in the Plan or any Award Agreement shall interfere with or
limit in any way the right of the Service Recipient to terminate any Participant’s employment or services at any time, nor confer upon any Participant any right to continue in the employment or services of any Service Recipient.

  

	 	13.5	 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive
compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are greater than those of a general creditor of the
relevant Group Entity. 

  

  
 17 

	 	13.6	 Indemnification. To the extent allowable pursuant to Applicable Laws, each member of the Committee or of
the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to
which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or
proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Memorandum of Association and Articles of Association, as a matter of law, or otherwise, or any power
that the Company may have to indemnify them or hold them harmless. 

  

	 	13.7	 Relationship to Other Benefits. No payment pursuant to the Plan shall be taken into account in
determining any benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the any Group Entity except to the extent otherwise expressly provided in writing in such other plan or an
agreement thereunder. 

  

	 	13.8	 Expenses. The expenses of administering the Plan shall be borne by the Group Entities.

  

	 	13.9	 Titles and Headings. The titles and headings of the Sections in the Plan are for convenience of
reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

  

	 	13.10	 Fractional Shares. No fractional Shares shall be issued and the Committee shall determine, in its
discretion, whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down as appropriate. 

 

	 	13.11	 Government and Other Regulations. The obligation of the Company to make payment of awards in Shares or
otherwise shall be subject to all Applicable Laws, and to such approvals by government agencies as may be required. The Company shall be under no obligation to register any of the Shares paid pursuant to the Plan under the Securities Act or any
other similar law in any applicable jurisdiction. If the Shares paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant to the Securities Act or other Applicable Laws, the Company may restrict the transfer of such
Shares in such manner as it deems advisable to ensure the availability of any such exemption. 

  

	 	13.12	 Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by
the laws of the Cayman Islands. 

  

  
 18 

	 	13.13	 Section 409A. To the extent that the Committee determines that any Award granted
under the Plan is or may become subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extent applicable, the Plan and the
Award Agreements shall be interpreted in accordance with Section 409A of the Code and the U.S. Department of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such regulation or other guidance
that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Committee determines that any Award may be subject to Section 409A of the Code and
related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Committee may adopt such amendments to the Plan and the applicable Award agreement or adopt other policies and
procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve
the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related U.S. Department of Treasury guidance. 

 

	 	13.14	 Appendices. Subject to Section 12.1, the Committee may approve such supplements, amendments or
appendices to the Plan as it may consider necessary or appropriate for purposes of compliance with Applicable Laws or otherwise and such supplements, amendments or appendices shall be considered a part of the Plan; provided, however, that no such
supplements shall increase the share limitation contained in Section 3.1 of the Plan without the approval of the Board. 

  
 19Exhibit 10.1

 

RESIGNATION AND GENERAL RELEASE AGREEMENT

 

THIS RESIGNATION AND GENERAL
RELEASE AGREEMENT (the “Agreement”) is entered into as of the 18th day of January, 2022, by and between Comfort
Systems USA (Texas), L.P., a Texas limited partnership (the “Company”), and Terrence Young (the “Executive”).
References to the “Company” in this Agreement shall include, where applicable, Comfort Systems USA, Inc., a Delaware corporation
and the Company’s parent entity, and each of its subsidiaries.

 

WHEREAS, Executive is subject to certain non-competition,
non-solicitation and other restrictive covenants pursuant to those certain Restricted Stock Unit Agreements effective as of March 6, 2019,
March 5, 2020, and March 10, 2021 (the “RSU Agreements”) and those certain Dollar-Denominated Performance Restricted Stock
Unit Agreements dated as of March 6, 2019, March 5, 2020, and March 10, 2021 (the “PSU Agreements” and, collectively with
the RSU Agreements, the “Equity Agreements”);

 

WHEREAS, Executive is resigning from his employment
with the Company; and

 

WHEREAS, the Company and Executive desire to memorialize
and confirm their mutual agreement with respect to Executive’s separation from employment by the Company.

 

NOW, THEREFORE, for valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and the Executive each hereby covenant and agree as follows:

 

1.              Resignation Date. The parties agree that Executive’s last day of employment with the Company is January 14, 2022 (the
 “Resignation Date”).

 

2.              Consideration.
As consideration for Executive’s execution and non-revocation of and adherence to the commitments set forth in this Agreement and
subject to Executive’s faithful and continuing compliance with all of Executive’s covenants and promises in this Agreement
and adherence to the Non-Competition Obligations (as defined and as amended herein), the Company agrees to provide Executive the following
payments and benefits:

 

2a. The Company will pay to Executive
the gross amount of $75,000.00, less applicable tax and related withholdings, payable in twenty-three (23) equal installments.

 

2b. Executive’s group
insurance coverage will terminate on January 14, 2022. As of February 1, 2022, to the extent provided by the federal COBRA law, or,
if applicable, state insurance laws, and by the Company’s current group health insurance policies, Employee will be eligible
to continue Employee’s group health insurance benefits.

 

3.              Other Payments, Benefits, and Acknowledgments.

 

3a. The Company will process any unpaid
business expense reimbursements within a reasonable time following the effective date of this Agreement; provided, that Executive submits
such expenses in accordance with the Company’s expense reimbursement policy. Executive agrees that he will not incur any other
business expenses following the Resignation Date.

 

    Resignation and General Release Agreement (Young)
Page 1 of 6

     

    

 

3b. Executive acknowledges that he automatically
forfeits the right to any outstanding awards under the Equity Agreements that remain unvested as of the Resignation Date. Executive acknowledges
that he will continue to be subject to applicable securities laws, including such laws that limit his ability to trade on material non-public
information, and agrees to comply in full with such laws.

 

3c. Executive hereby acknowledges that,
except as previously provided in this Agreement, Executive will not receive any additional compensation including, without limitation,
any additional bonus compensation, severance or benefits after the Resignation Date, and that the payments and benefits provided hereunder
are in completed satisfaction of any and all compensation, severance or benefits due to him from the Company or any of its affiliates.

 

4.              Return
of Materials, Confidentiality. Executive hereby agrees to return to the Company on the Resignation Date all documents, files, books,
keys, passes, computers, telephones, identification materials and other properties, documents and materials of the Company and will vacate
his office and the premises of the Company. Subject to Section 7(c), Executive agrees not to disclose and to affirmatively protect all
of the Company's proprietary information, including without limitation his knowledge regarding its customers, plans, agreements, attributes,
processes, documents, etc. Executive agrees to make himself available from time to time via telephone or e-mail, at the Company’s
reasonable request, until December 31, 2022 to answer questions regarding former duties and materials and SEC compliance and reporting
matters. The provisions of this Agreement shall be held in strictest confidence by Executive and the Company and shall not be publicized
or disclosed in any manner whatsoever; provided, however, that: (a) Executive may disclose this Agreement to Executive’s immediate
family; (b) Company and Executive may disclose this Agreement in confidence to their respective attorneys, accountants, auditors, tax
preparers, and financial advisors (after advising them to maintain confidentiality); (c) the Company may disclose this Agreement as necessary
to fulfill standard or legally required corporate reporting or disclosure requirements; and (d) the parties may disclose this Agreement
insofar as such disclosure may be necessary to enforce the terms of the Agreement or as otherwise required by law. Executive agrees that
this pledge of confidentiality and nondisclosure is essential to this Agreement. In the event that Executive is subject to a subpoena,
court order, or otherwise compelled to testify, appear, or provide information regarding the Company, Executive will, within two business
days after receipt, provide written notice to the Company to: Office of the General Counsel, Comfort Systems USA, Inc., 675 Bering Drive,
Suite 400, Houston, Texas 77057. Executive cannot be held criminally or civilly liable under any federal or state trade secret law for
disclosing a trade secret (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an
attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document
filed under seal in a lawsuit or other proceeding. Notwithstanding this immunity from liability, Executive may be held liable if he unlawfully
accesses trade secrets by unauthorized means.

 

    Resignation and General Release Agreement (Young)
Page 2 of 6

     

    

 

5.             Acknowledgement of Restrictive Covenant Obligations. Executive acknowledges, and agrees to comply with, his non-competition,
non-solicitation, non-piracy and non-raiding obligations under Section 8 of the RSU Agreements and Section 9 of the PSU Agreements (collectively,
the “Non-Competition Obligations”), which remain in full force and effect in accordance with their terms. The Company agrees
that it will consider in good faith, subject to Executive’s obligation to provide the Company with any relevant information or documentation
the Company reasonably requests, any request by Executive to confirm or clarify the scope of the Non-Competition Obligations or to provide
a written waiver of the Non-Competition Obligations with respect to a specific business activity that Executive desires to engage in and
which is not directly competitive with the business of the Company or its affiliates.

 

Executive acknowledges that a condition precedent
to receiving and retaining the payments described in this Agreement from the Company is the Executive’s faithful performance of
the obligations of this Agreement and adherence to the Non-Competition Obligations.

 

6.              Non-Disparagement
and No Trespass. Subject to Section 7(c), the Executive agrees to refrain from disparaging or otherwise seeking to harm the business
interests of the Company, its affiliates and subsidiaries, or their management and directors. In addition, the Executive agrees not to
trespass on any location or work place of the Company.

 

7.              General
Release of Claims. This Agreement constitutes the entire agreement between the Executive and the Company, and supersedes any
prior communication, written or oral, including without limitation the Equity Agreements (except as set forth herein), with respect
to all matters relating hereto, the Non-Competition Obligations and the Indemnification Agreement between the Company and Executive,
dated as of January 1, 2019, which will all remain in full force and effect in accordance with their terms. The Executive hereby
agrees that he has no additional rights to salary, benefits, vacation pay or compensation of any sort or any other thing of economic
value from the Company except as explicitly set forth in this Agreement. In exchange for the payments and other consideration under
this Agreement, to which Executive would not otherwise be entitled, Executive hereby releases, acquits, and forever discharges the
Company, its parent, affiliates and subsidiaries, and its and their respective officers, directors, agents, employees, employee
benefit plans, attorneys, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands,
causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way
connected with Executive’s employment or other relationship with the Company or its affiliates or the termination of that
employment or other relationship or the Equity Agreements; claims or demands related to salary, bonuses, commissions, stock, stock
options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or
any other form of compensation; claims pursuant to any federal, state or local law, statute, or cause of action including, but not
limited to, the federal Civil Rights Act of 1964, as amended, including without limitation claims for attorneys’ fees; the
federal Americans with Disabilities Act of 1990, as amended (“ADA”); the federal Age Discrimination in Employment Act of
1967, as amended (“ADEA”); tort law; contract law; wrongful discharge; discrimination; harassment; fraud; defamation;
emotional distress; and breach of the implied covenant of good faith and fair dealing. In consideration of the benefits that the
Executive will receive under this Agreement, the Executive, personally and on behalf of his heirs, assigns and representatives,
hereby releases, waives and forever discharges any and all such causes of action or claims or any other cause of action or claim
against the Company, its affiliates or subsidiaries and their respective past, present and future affiliates, directors, trustees,
officers, agents, employees, employee benefit plans, successors and assigns, and agrees never to bring any such claim or cause of
action. By signing this Agreement, Executive agrees that Executive will not pursue any claim covered by this General Release of
Claims. If Executive breaks this promise, Executive agrees to pay the Company’s costs and expenses (including reasonable
attorneys’ fees) related to the defense of any claims; provided, however, that Executive will have no obligation to pay any
such costs and expenses if he brings a claim challenging the enforceability of this General Release of Claims under ADEA.

 

    Resignation and General Release Agreement (Young)
Page 3 of 6

     

    

 

7a.     Release of Known and Unknown
Claims Waiver. EXECUTIVE UNDERSTANDS AND EXPRESSLY AGREES THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

7b.     ADEA Waiver. Executive
acknowledges that Executive knowingly and voluntarily waives and releases any rights Executive may have under the ADEA, as amended. Executive
also acknowledges that the consideration given for the waiver and release in the preceding paragraphs hereof is in addition to anything
of value to which Executive was already entitled. Executive further acknowledges that: (a) Executive has carefully read and fully understands
the provisions of this Agreement; (b) Executive is, through this Agreement, releasing the Company from any and all claims Executive may
have against it, its parent, subsidiaries, predecessors, successors, affiliates and related entities and other parties described above;
(c) Executive has knowingly and voluntarily agreed to all of the terms set forth in the Agreement; (d) Executive knowingly and voluntarily
intends to be legally bound by the Agreement; (e) this Agreement shall not be effective until the date upon which the revocation period
has expired, which shall be the eighth day after this Agreement is executed by Executive, provided that the Company has also executed
this Agreement by that date (“Effective Date”); (f) Executive’s waiver and release do not apply to any rights or claims
that may arise after the Effective Date of this Agreement; (g) Executive has been advised and Executive is hereby advised to consult with
an attorney prior to executing this Agreement; (h) Executive has twenty-one (21) days to consider this Agreement (although Executive may
choose to voluntarily execute this Agreement earlier), but may not sign this Agreement prior to the Resignation Date; and (i) Executive
has seven (7) days following the execution of this Agreement to revoke the Agreement.

 

7c.
      Exceptions to Release. Notwithstanding anything to the contrary herein, nothing in this
Agreement shall be a release or waiver by the Executive of claims that cannot be released as a matter of law, including but not
limited to, the Executive’s right to file a charge with or participate in a charge, investigation or proceeding by the Equal
Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized
to enforce or administer fair employment practices laws, against the Company, except that
Executive hereby agrees to waive his right to recover monetary damages or other individual relief in any such charge, investigation
or proceeding or any related complaint or lawsuit filed by Executive or by anyone else on his behalf. Nothing in this Agreement
limits, restricts or in any other way affects the Executive communicating with any governmental agency or entity, or communicating
with any official or staff person of a governmental agency or entity, concerning matters relevant to the governmental agency or
entity or requires Executive to provide prior notice to the Company of the same.

 

    Resignation and General Release Agreement (Young)
Page 4 of 6

     

    

 

8.              Post-Employment Release. Executive’s receipt and retention of the payments and benefits described herein is conditioned
on his execution, return and non-revocation, within twenty-one (21) days following the Resignation Date (and in no event prior to the
Resignation Date), of the general release of claims attached hereto as Exhibit A.

 

9.              Revocation Period. For a period of seven (7) days following the Executive’s execution of this Agreement the Executive
may revoke this Agreement, and the Agreement shall not be effective or enforceable until this seven (7) day revocation period has expired.
After such revocation period, the parties intend that this Agreement shall have the effect of a sealed instrument under the laws of the
State of Texas.

 

Executive may consider this
Agreement for a period of twenty-one (21) days, after which this Agreement and offer will expire. In signing this Agreement the Executive
acknowledges that he understands its provisions, and that such Agreement is knowing and voluntary, that he has been afforded a full and
reasonable opportunity to consider its terms and to consult with or seek advice from any attorney or other person of Executive’s
choosing, and that Executive has been advised by the Company to consult with an attorney prior to executing this Agreement.

 

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Signature page follows.]

 

    Resignation and General Release Agreement (Young)
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	EXECUTIVE:	 	COMFORT SYSTEMS (TEXAS), L.P. 
	 	 	 
	/s/ Terrence Young	 	/s/ Laura Howell
	Name:Terrence Young	 	Name: Laura Howell
	Date Executed: January 18, 2022	 	Title: Vice President & General Counsel

 

    Resignation and General Release Agreement (Young)
Page 6 of 6

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