Document:

ex_134773.htm

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

Milestone Scientific Inc.

220 South Orange Avenue

Livingston, New Jersey 07039

 

 

Ladies & Gentlemen:

 

Whereas, on February 1, 2019, Milestone Scientific Inc., a Delaware corporation (the “Company”) entered into an Underwriting Agreement (the “Underwriting Agreement”) with Maxim Group LLC, acting as sole underwriter and book-running manager, for a public offering (the “Public Offering”) of shares of common stock, par value $0.001 per share (the “Common Stock”), of the Company, together with warrants (the “Public Offering Warrants”) to purchase shares of Common Stock (the “Public Offering Warrant Shares”) at an exercise price equal to $0.50 per share of Common Stock (the “Exercise Price”); and the public offering price for each share of Common Stock (the “Public Offering Shares”) and Public Offering Warrant was $0.35;

 

Whereas, the Public Offering Shares and Public Offering Warrants were issued pursuant to a shelf registration statement that the Company filed with the U.S. Securities and Exchange Commission (the “Commission”), which became effective on May 4, 2016 (File No. 333-209466) (the “Shelf Registration Statement”); a preliminary prospectus supplement relating to the Public Offering was filed on January 31, 2019, and a final prospectus supplement relating to the Public Offering was filed on February 1, 2019 (the “Pro Supp” and together with the Shelf Registration Statement, the “Disclosure Package”), with the Commission; and the closing of the Public Offering occurred on February 6, 2019;

 

Whereas, pursuant to that certain Investment Agreement dated as of April 15, 2014 (the “Investment Agreement”), the Investor, as successor to Innovest S.p.A., purchased Series A Convertible Preferred Stock of the Company and received, in Section 5.1 thereof, a preemptive right to have the opportunity to acquire from the Company, for the same price and on the same terms as the Public Offering Shares, Public Offering Warrants and Public Offering Warrant Shares (collectively, the “Securities”) as proposed to be offered by the Company to others, its proportionate share of such Securities, as determined in accordance with the Investment Agreement; and

 

Whereas, the Company deems it advisable and in the best interest of the Company and its stockholders to offer to the Investor the Securities in satisfaction of the Investor’s preemptive right under the Investment Agreement, on the terms and subject to the conditions set forth in this Agreement.

 

NOW THEREFORE, in consideration of the foregoing and the respective covenants, agreements and representations and warranties set forth herein, the undersigned, BP4 S.p.A. (the “Investor”), hereby confirms its agreement with the Company as follows:

 

1.     This Securities Purchase Agreement (the “Agreement’) is made as of February 8, 2019 between the Company and the Investor.

 

2.     The Company has authorized the sale and issuance of up to 714,286 shares of Common Stock of the Company (the “Shares”) and warrants to purchase up to 178,571 shares of Common Stock (the “Warrants” and the shares issuable upon exercise thereof, the “Warrant Shares”) at an Exercise Price of $0.50 per share.

 

3.     The Company and the Investor agree that the Investor will purchase and the Company will sell the Shares and the Warrants for $0.35 for each Share and Warrant, or an aggregate purchase price of $250,000 for the Shares and the Warrants, pursuant to the Terms and Conditions for Purchase of Shares and Warrants attached hereto as Annex I and incorporated herein by reference as if fully set forth herein. Certificates representing the Shares and Warrants purchased by the Investor will be registered in the Investor’s name and address as set forth below.

 

 

 

 

Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space provided below for that purpose.

 

	
			 

				
			INVESTOR:

			 

			BP4 S.p.A.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Gian Domenico Trombetta

				
			 

			
	
			 

				
			 

				Name: Gian Domenico Trombetta	
			 

			
	
			 

				
			 

				Title: Chief Executive Officer	
			 

			

 

	 	
			Address:                                                                                                                  

			 

			Tax ID No.:                                                                                                             

			 

			Contact name:                                                                                                         

			 

			Telephone:                                                                                                               

			

 

 

AGREED AND ACCEPTED: 

 

MILESTONE SCIENTIFIC INC.

 

 

	
			By:

				
			/s/ Leonard Osser

			

	
			 

				
			Name: Leonard Osser

			

	
			 

				
			Title: Interim Chief Executive Officer

			

 

 

 

 

ANNEX I

 

TERMS AND CONDITIONS FOR PURCHASE OF SHARES AND WARRANTS

 

1.     Authorization and Sale of the Shares and Warrants. Subject to the terms and conditions of this Agreement, the Company has authorized the sale of up to 714,286 shares of the Common Stock, $0.001 par value, of the Company (the “Shares”) and warrants to purchase up to 178,571 shares of Common Stock (the “Warrants” and the shares issuable upon exercise thereof, “Warrant Shares”).

 

2.     Agreement to Sell and Purchase the Stock. At the Closing (as defined in Section 3), the Company will sell to the Investor, and the Investor will purchase from the Company, upon the terms and conditions hereinafter set forth, the number of Shares and Warrants set forth on the signature page hereto at the purchase price set forth on such signature page.

 

3.     Delivery of the Shares and Warrants at Closing. The completion of the purchase and sale of the Shares and Warrants (the “Closing”) shall occur on such date as specified by the Company and the Investor (the “Closing Date”), at the offices of the Company or its counsel, as specified by the Company. At the Closing, the Company shall deliver to the Investor (or the Investor’s designated agent in the United States) the Shares and the Warrants against payment therefor.

 

The Company’s obligation to close the transaction shall be subject to the following conditions, any one or more of which may be waived by the Company: (a) receipt by the Company of a certified or official bank check or wire transfer of funds in the full amount of the purchase price for the Shares and Warrants being purchased hereunder; (b) the accuracy of the representations and warranties made by the Investor and the fulfillment of those undertakings of the Investors to be fulfilled prior to the Closing; and (c) approval from the NYSE American LLC to list the Shares and Warrant Shares .

 

4.     Representations and Warranties of the Company. The Company represents and warrants to the Investor as of the date hereof, as follows:

 

(a)     The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware and has corporate power and authority to own, lease, and operate its properties and to conduct its business as described in the Disclosure Package and to enter into and perform its obligations under this Agreement and the various other agreements required hereunder and thereunder to which it is a party; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except for such jurisdictions where the failure to so qualify individually or in the aggregate would not have a material adverse effect on the assets, properties, condition, financial or otherwise, or in the results of operations or business affairs (as described in the Disclosure Package) of the Company and its subsidiaries considered as a whole (a "Material Adverse Effect").

 

(b)     All necessary corporate action has been duly and validly taken by the Company to authorize the execution, delivery and performance of this Agreement, the Warrants and the issuance and sale of the Shares and the Warrant Shares. This Agreement has been duly authorized, executed and delivered by the Company and the Warrants, upon issuance, will have been duly authorized, executed and delivered by the Company.

 

 

 

 

(c)     When issued, the Warrants will constitute valid and binding obligations of the Company to issue and sell, upon exercise thereof and payment of the Exercise Price, the number and type of securities of the Company called for thereby in accordance with the terms thereof and such Warrants are enforceable against the Company in accordance with their respective terms, except: (i) as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws relating to or affecting creditors' rights and remedies generally; (ii) as enforceability of any indemnification or contribution provision may be limited under foreign, federal and state securities laws; and (iii) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefore may be brought.

 

(d)     The Shares have been duly authorized for issuance and sale to the Investor pursuant to this Agreement, and when the Shares have been issued and delivered by the Company pursuant to this Agreement against payment of the consideration set forth herein, such Shares will be validly issued and fully paid and non-assessable; and the issuance of such Shares is not subject to any preemptive or other similar rights of any securityholder of the Company.

 

(e)     The Warrant Shares have been duly authorized for issuance, have been validly reserved for future issuance and will, upon exercise of the Warrants and payment of the exercise price thereof, be duly and validly issued, fully paid and non-assessable and will not be subject to the preemptive or other similar rights of any securityholder of the Company.

 

(f)     The authorized, issued and outstanding shares of capital stock of the Company are as set forth in the Disclosure Package, adjusted for closing of the Public Offering. The outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable. None of the outstanding shares of capital stock of the Company was issued in violation of any preemptive or other similar rights of any securityholder of the Company. Except as disclosed in the Disclosure Package, other than with respect to any shares reserved pursuant to the Company's equity incentive plan as disclosed in the Disclosure Package or the shares issuable upon exercise of the Warrants issued in the Public Offering, (i) no shares of capital stock of the Company are reserved for any purpose, (ii) no outstanding securities are convertible into or exchangeable for any shares of capital stock of the Company, and (iii) there are no outstanding options, rights (preemptive or otherwise) or warrants to purchase or subscribe for shares of capital stock or any other securities of the Company.

 

(g)     At the date of the Pro Supp, the Disclosure Package did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. At the date of the Pro Supp, the Pro Supp did not contain an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

 

 

 

5.     Representations, Warranties and Covenants of the Investor.

 

(a)     The Investor represents and warrants to, and covenants with, the Company that: (i) the Investor is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) and the Investor is also knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to investments in shares presenting an investment decision like that involved in the purchase of the Shares, the Warrants and the Warrant Shares (the “Securities”), including investments in securities issued by the Company and investments in comparable companies, and has requested, received, reviewed and considered all information it deemed relevant in making an informed decision to purchase the Securities; (ii) the Investor is acquiring the Securities in the ordinary course of its business and for its own account for investment only and with no present intention of distributing any of the Securities or any arrangement or understanding with any other persons regarding the distribution of such Securities; (iii) the Investor will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Securities except in compliance with the Securities Act, applicable state securities laws and the respective rules and regulations promulgated thereunder; (iv) the Investor has answered all questions on the signature page hereto for use in preparation for the Registration Statement (as that term is defined below) and the answers thereto are true and correct as of the date hereof; (v) the Investor will notify the Company immediately of any change in any of such information until such time as the Investor has sold all of its Shares, Warrants and Warrant Shares or until the Company is no longer required to keep the Registration Statement effective; and (vi) the Investor has, in connection with its decision to purchase the Securities, relied only upon the representations and warranties of the Company contained herein.

 

(b)     The Investor acknowledges, represents and agrees that no action has been or will be taken in any jurisdiction outside the United States by the Company or any other person or entity that would permit an offering of the Securities, or possession or distribution of offering materials in connection with the issue of the Securities, in any jurisdiction outside the United States where action for that purpose is required. The Investor will comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers the Securities or has in its possession or distributes any offering material, in all cases at its own expense.

 

(c)     The Investor hereby covenants with the Company not to make any sale of the Securities without complying with the provisions of this Agreement, including Section 7.2 hereof, and without effectively causing the prospectus delivery requirement under the Securities Act to be satisfied. The Investor acknowledges that there may occasionally be times when the Company, based on the advice of its counsel, determines that it must suspend the use of the prospectus forming a part of the Registration Statement until such time as an amendment to the Registration Statement has been filed by the Company and declared effective by the Securities and Exchange Commission the (“Commission”) or until the Company has amended or supplemented such prospectus.

 

(d)     The Investor further represents and warrants to the Company that (i) the Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (ii) upon the execution and delivery of this Agreement, this Agreement shall constitute a valid and binding obligation of the Investor enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as the indemnification agreements of the Investors herein may be legally unenforceable.

 

 

 

 

(e)     The Investor and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and other information the Investor deemed material to making an informed investment decision regarding its purchase of the Securities, which have been requested by the Investor. The Investor and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management. The Investor understands that its investment in the Securities involves a high degree of risk. The Investor is in a position regarding the Company, which, based upon business relationship or economic bargaining power, enabled and enables the Investor to obtain information from the Company in order to evaluate the merits and risks of its investment. The Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities. Without limiting the foregoing, the Investor has carefully considered the potential risks relating to the Company and a purchase of the Securities, and fully understands that the Securities are a speculative investment that involves a high degree of risk of loss of the Investor’s entire investment. Among other things, the Investor has carefully considered each of the risks described under the heading “Risk Factors” in the Company’s Form 10-K filed with the Commission on April 2, 2018, available on the Commission’s EDGAR website at www.sec.gov.

 

(f)     The Investor understands that no United States federal or state governmental authority has passed on or made any recommendation or endorsement of the Securities, or the fairness or suitability of the investment in the Securities, nor have such governmental authorities passed upon or endorsed the merits of the offering of the Securities.

 

(g)     The Investor is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. The Investor represents that it has a business relationship with the Company preceding its decision to purchase the Securities from the Company.

 

(h)     The Investor acknowledges that the Warrants are not listed or quoted for trading on any market, exchange or quotation service and agrees that the Company has no obligation to list or quote the Warrants for trading.

 

(i)     The Investor understands that nothing in this Agreement or any other materials presented to the Investor in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice.

 

 

 

 

6.     Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement, all covenants, agreements, representations and warranties made by the Company and the Investor herein shall survive the execution of this Agreement, the delivery to the Investor of the Securities being purchased and the payment therefor.

 

7.     Registration; Compliance with the Securities Act.

 

7.1.     Registration. Unless the resale of the Securities is covered by the Shelf Registration Statement, the Company shall prepare and file a registration statement in compliance with the Securities Act and pursuant to Rule 415 (a “Registration Statement”) covering the resale by the Investor of the Registrable Securities (as defined below), and use its best efforts to have such registration statement declared effective by the Commission no later than six (6) months after the date hereof (the “Effectiveness Deadline”). "Registrable Securities" means the Shares, the Warrants and the Warrant Shares; provided, however, that all such securities shall cease to be Registrable Securities at such time as they have been sold under a Registration Statement or pursuant to Rule 144 promulgated under the Securities Act, as amended, (or a successor rule thereto) (collectively, "Rule 144"), or at such time as they are eligible to be sold without any restrictions or volume limitations pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the Securities Act. The Registration Statement shall contain (except if otherwise directed by the Investor) a "Plan of Distribution" in substantially the form attached hereto as Appendix A. If the Company elects to have the resale of Registrable Securities covered by the Shelf Registration, the provisions of Section 7.2 shall apply to the Shelf Registration (or, as applicable, to a prospectus supplement filed pursuant to Rule 424 under the Securities Act) in the same manner as they would apply to a new Registration Statement.

 

7.2.     Registration Procedures and Expenses.

 

(a)      The Company shall promptly prepare and file with the Commission a Registration Statement with respect to the Registrable Securities and use its best efforts to cause such Registration Statement to become effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep the Registration Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investor may sell all of the Registrable Securities covered by such Registration Statement without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the 1933 Act; or (ii) the date on which the Investor shall have sold all of the Registrable Securities covered by such Registration Statement (the "Registration Period"). For the avoidance of doubt, so long as the Warrants have not actually been sold under a Registration Statement or pursuant to Rule 144, the Warrants and the Warrant Shares shall continue to be covered by an effective Registration Statement regardless of the Investor being able to sell the Warrants without restriction or limitation pursuant to Rule 144 until the Warrant Shares themselves cease to be Registrable Securities. Except with respect to information provided by the Investor specifically for use in a Registration Statement, the Company shall ensure that each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading.

 

 

 

 

(b)     The Company shall prepare and file with the Commission such amendments (including post-effective amendments) and supplements to a Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at all times during the Registration Period.

 

(c)     The Company shall (A) permit counsel selected by the Investor to review and comment upon (i) a Registration Statement at least five (5) Business Days prior to its filing with the Commission and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable number of days prior to their filing with the Commission, and (B) not file any Registration Statement or amendment or supplement thereto in a form to which such counsel reasonably objects. The Company shall furnish to such counsel copies of any correspondence from the Commission or the staff of the Commission to the Company or its representatives relating to any Registration Statement and shall reasonably cooperate with such counsel in performing the Company's obligations pursuant to this Section 7.

 

(d)     The Company shall furnish to the Investor, without charge, (i) promptly after the same is prepared and filed with the Commission, at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by the Investor, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, as many copies of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as the Investor may reasonably request) as the Investor may reasonably request and (iii) such other documents, including copies of any preliminary or final prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities.

 

(e)     The Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification applies, the resale by the Investor of the Registrable Securities covered by a Registration Statement under such other securities or "blue sky" laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 7(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify counsel for the Investor of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

 

 

 

(f)     The Company shall notify counsel for the Investor in writing of the happening of any event, as promptly as practicable after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject to Section 7(j), promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and deliver as many copies of such supplement or amendment to such counsel and the Investor as the Investor may reasonably request. The Company shall also promptly notify counsel and the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to counsel and the Investor by facsimile or electronic mail on the same day of such effectiveness and by overnight mail), (ii) of any request by the Commission for amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate. By 9:30 a.m. New York City time on the date following the date any post-effective amendment has become effective, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement.

 

(g)     The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify counsel and the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)     The Company shall use its reasonable best efforts either to (i) cause all of the Registrable Securities covered by a Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) secure the inclusion for quotation of all of the Registrable Securities on the OTC Bulletin Board or another eligible market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(h).

 

(i)     If requested by the Investor, the Company shall as soon as practicable (i) incorporate in a prospectus supplement or post-effective amendment such information as the Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement if reasonably requested by an Investor holding any Registrable Securities.

 

 

 

 

(j)     Notwithstanding anything to the contrary herein, the Company may delay the disclosure of material, non-public information concerning the Company, the disclosure of which at the time would, in the good faith opinion of the Board of Directors of the Company, (x) materially impede, delay or interfere with any material pending or proposed financing, acquisition, corporate reorganization or otherwise similar transaction involving the Company for which the Board of Directors of the Company has authorized negotiations, (y) materially and adversely impair the consummation of any pending or proposed material offering or sale of any class of securities by the Company, or (z) be materially harmful to the interests of the Company and its stockholders; provided, that during any such period all executive officers and directors of the Company are also prohibited from selling securities of the Company (or any security of any of the Company’s subsidiaries or affiliates) (a "Grace Period"); provided, that the Company shall promptly (i) notify the Investor in writing of the existence of material, non-public information giving rise to a Grace Period and the date on which the Grace Period will begin, and (ii) notify the Investor in writing of the date on which the Grace Period ends; and, provided further, that (A) no Grace Period shall exceed twenty (20) consecutive days, (B) during any three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of forty-five (45) days and the Company shall not invoke more than three (3) Grace Periods, and (C) the first day of any Grace Period must be at least three (3) Trading Days after the last day of any prior Grace Period (each, an "Allowable Grace Period"). For purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Investor receives the notice of the beginning of the Grace Period and shall end on and include the later of the date the Investor receives the notice referred to in clause (ii) above and the date referred to in such notice.

 

(k) The Company shall bear all expenses in connection with the procedures in paragraph (a) through (k) of this Section 7.2 and the registration of the Registrable Securities pursuant to the Registration Statement, other than fees and expenses of counsel or other advisers to the Investor.

 

(l)     The Company understands that the Investor disclaims being an underwriter, but the Investor being deemed an underwriter shall not relieve the Company of any obligations it has hereunder.

 

 

7.3.     Transfer of Securities.

 

(a)     Transfer or Resale. The Investor understands that except as provided in Sections 7.1 and 7.2 (i) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Investor shall have delivered to the Company an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Investor provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144; and (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the Commission thereunder.

 

 

 

 

(b)     The Investor agrees that it will not affect any disposition of the Registrable Securities that would constitute a sale within the meaning of the Securities Act except (i) pursuant to an exemption from the registration requirements of the Securities Act or (ii) as contemplated in the Registration Statement referred to in Section 7.1, and that it will promptly notify the Company of any changes in the information set forth in the Registration Statement regarding the Investor or its Plan of Distribution.

 

7.4.     Indemnification. For the purpose of this Section 7.4:

 

(i)     the term “Registration Statement” shall include any final prospectus, exhibit, supplement or amendment included in or relating to the Registration Statement referred to in Section 7.1; and

 

(ii)     the term “untrue statement” shall include any untrue statement or alleged untrue statement, or any omission or alleged omission to state in the Registration Statement a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(a)     The Company agrees to indemnify and hold harmless the Investor from and against any losses, claims, damages or liabilities to which the Investor may become subject under the Securities Act insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon any untrue statement of a material fact contained in the Registration Statement on the effective date thereof, or arise out of any failure by the Company to fulfill any undertaking included in the Registration Statement and the Company will reimburse the Investor for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim, or preparing to defend any such action, proceeding or claim, provided, however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such Registration Statement in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Investor specifically for use in preparation of the Registration Statement, or the failure of the Investor to comply with the covenants and agreements contained in Sections 5(c) or 7.2 hereof respecting sale of the Registrable Securities or any statement or omission in any prospectus that is corrected in any subsequent prospectus that was delivered to the Investor prior to the pertinent sale or sales by the Investor.

 

(b)     The Investor agrees to indemnify and hold harmless the Company (and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the Registration Statement and each director of the Company) from and against any losses, claims, damages or liabilities to which the Company (or any such officer, director or controlling person) may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, any failure to comply with the covenants and agreements contained in Section 5(c) or 7.2 hereof respecting sale of the Registrable Securities, or any untrue statement of a material fact contained in the Registration Statement on the effective date thereof if such untrue statement was made in reliance upon and in conformity with written information furnished by or on behalf of the Investor specifically for use in preparation of the Registration Statement, and the Investor will reimburse the Company (or such officer, director or controlling person), as the case may be, for any legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim.

 

 

 

 

(c)     Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 7.3, such indemnified person shall notify the indemnifying person in writing of such claim or of the commencement of such action, and, subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified person and such indemnifying person shall be entitled to participate therein, and, to the extent it shall wish, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof, provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying person shall be responsible for the fees and expenses of more than one separate counsel for all indemnified parties.

 

(d)     If the indemnification provided for in this Section 7.3 is unavailable to or insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Investor on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or an Investor on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Investor agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), the Investor shall not be required to contribute any amount in excess of the amount by which the net amount received by the Investor from the sale of the Registrable Securities to which such loss relates exceeds the amount of any damages which the Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

 

 

 

8.     Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, and shall be deemed given when so mailed and shall be delivered as addressed as follows:

 

(a)     if to the Company, to:

 

Milestone Scientific Inc.

220 South Orange Avenue

Livingston, New Jersey 07039

Attn: Leonard Osser

 

(b)     with a copy mailed to:

 

Golenbock Eiseman Assor Bell & Peskoe LLP

711 Third Avenue

New York, NY 10017

Attn: Lawrence M. Bell, Esq.

 

(c)     if to the Investor, at its address on the signature page hereto, or at such other address or addresses as may have been furnished to the Company in writing;

 

(d)     with a copy to:

 

Goodwin Procter LLP

100 Northern Avenue

Boston, MA 02210

Attn: Ettore Santucci, Esq.

 

9.     Changes. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and the Investor.

 

 

 

 

10.     Headings. The headings of the various section of this Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement.

 

11.     Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

12.     Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard for conflict of laws principles. Each of the parties hereto hereby submits to the non-exclusive jurisdiction of the Federal and state courts in the Borough of Manhattan in the City of New York, State of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. Each of the parties irrevocably and unconditionally waives any objection to the laying of venue of any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby in Federal and state courts in the Borough of Manhattan in the City of New York, Sate if New York and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such suit or proceeding in any such court has been brought in an inconvenient forum. The parties agree, to the extent permitted by law, to waive their rights to a jury trial in any proceeding arising out of this Agreement.

 

13.     Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Such counterparts may be delivered by facsimile or by e-mail delivery of a “pdf” format data file, which counterparts shall be valid as if original and which delivery shall be valid delivery thereof.

 

 

 

 

Appendix A

 

PLAN OF DISTRIBUTION

 

The selling stockholders may sell all or a portion of the securities beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. If the securities are sold through underwriters or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent's commissions. The securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,

 

	 	
			●

				
			on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;

			

 

	 	
			●

				
			in the over-the-counter market;

			

 

	 	
			●

				
			in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

			

 

	 	
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			through the writing of options, whether such options are listed on an options exchange or otherwise;

			

 

	 	
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			ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

			

 

	 	
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			block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

			

 

	 	
			●

				
			purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

			

 

	 	
			●

				
			an exchange distribution in accordance with the rules of the applicable exchange;

			

 

	 	
			●

				
			privately negotiated transactions;

			

 

	 	
			●

				
			short sales made after the date the Registration Statement is declared effective by the Commission;

			

 

	 	
			●

				
			sales pursuant to Rule 144;

			

 

	 	
			●

				
			broker-dealers may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share;

			

 

	 	
			●

				
			a combination of any such methods of sale; and

			

 

	 	
			●

				
			any other method permitted pursuant to applicable law.

			

 

 

 

 

If the selling stockholders effect such transactions by selling securities to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders or commissions from purchasers of the securities for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved). In connection with sales of securities or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of common stock in the course of hedging in positions they assume. The selling stockholders may also sell securities short and deliver securities covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling stockholders may also loan or pledge securities to broker-dealers that in turn may sell such shares.

 

The selling stockholders may pledge or grant a security interest in some or all of the securities owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933, as amended (the “Securities Act”), amending, if necessary, the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer and donate the securities in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The selling stockholders and any broker-dealer participating in the distribution of the securities may be deemed to be "underwriters" within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of securities is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of securities being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers.

 

Under the securities laws of some states, securities may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states securities may not be sold unless such securities have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance that any selling stockholder will sell any or all of the securities registered pursuant to the registration statement, of which this prospectus forms a part.

 

The selling stockholders and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of securities by the selling stockholders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of securities to engage in market-making activities with respect to such securities. All of the foregoing may affect the marketability of securities and the ability of any person or entity to engage in market-making activities with respect to securities.EX-10.1

 Exhibit 10.1 

QUTOUTIAO INC. 
 EQUITY
INCENTIVE PLAN 
 As adopted on January 31, 2019 

1.    Purposes of the Plan. 

The purposes of this Qutoutiao Inc. Equity Incentive Plan (the “Plan”) is to enable Qutoutiao Inc., a Cayman Islands company
(the “Company”) to attract and retain the services of employees, directors and consultants considered essential to the success of the Company and the Group Members (as defined below) (collectively, the “Group”) by
providing additional incentives to promote the success of the Group as a whole. Options, Restricted Shares, Restricted Share Units, Dividend Equivalents, Share Appreciation Rights and Share Payments (each as defined below) may be granted under the
Plan. 
 2.    Definitions and Interpretation. 

(a)    Definitions. In this Plan, unless the context otherwise requires, the following expressions shall have the
following meanings: 
 “Administrator” means the Board or one or more directors or officer(s) of the Company whom the Board
has delegated its authority to act as the Administrator as provided in Section 4(e). 
 “Applicable Law” 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. 
 “Award” means a Dividend Equivalent,
Option, Restricted Share, Restricted Share Unit, Share Appreciation Right or Share Payment award granted to a Participant pursuant to the Plan. 

“Award Agreement” means any written agreement, contract, or other instrument or document evidencing an Award, including
through electronic medium. 
 “Board” means the board of directors of the Company. 

“Business” means any Person that carries on activities for profit, and shall be deemed to include any affiliate of such
Person. 
 “Cause” means, with respect to a Participant in the case of a particular Award, unless the particular Award Agreement
states otherwise, (a) the applicable Group Member having “cause,” “just cause” or term of similar meaning or import, to terminate a Participant’s employment or service, as defined in any employment, consulting or
services agreement between the Participant and such Group Member in effect at the time of such termination; or (b) in the absence of any such employment, consulting or services agreement (or the absence of any definition of “cause,”
“just cause” or term of similar meaning or import contained therein), the following events or conditions, as determined by the Administrator in its sole discretion: 

(i)    any commission of an act of theft, embezzlement, fraud, dishonesty, ethical breach or other similar acts, or
commission of a criminal offense; 
 (ii)    any material breach of any agreement or understanding between the
Participant and any Group Member including, without limitation, any applicable intellectual property and/or invention assignment, employment, non-competition, confidentiality or other similar agreement or the
Group Member’s code of conduct, employee handbook, or other workplace rules; 

 (iii)    any material misrepresentation or omission of any material fact
in connection with the Participant’s employment with any Group Member or service as a Service Provider or to satisfy the requirements or working standards of the applicable Group Member during any applicable probationary employment period; 

(iv)    any material failure to perform the customary duties as an Employee, Consultant or Director, to obey the
reasonable directions of a supervisor or to abide by the policies or codes of conduct of the Company or any other Group Member; or 

(v)    any conduct that is materially adverse to the name, reputation or interests of the Group Members. 

“Change in Control” means any of the following transactions: 

(i)    an amalgamation, arrangement, merger, consolidation or scheme of arrangement 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 which following such transaction the holders of the Company’s voting shares immediately prior to
such transaction own more than fifty percent (50%) of the voting shares of the surviving entity; 
 (ii)    the sale,
transfer or other disposition of all or substantially all of the assets of the Company (other than to a Subsidiary); 

(iii)    the completion of a voluntary or insolvent liquidation or dissolution of the Company; 

(iv)    any takeover, reverse takeover, scheme of arrangement, or series of related transactions culminating in a reverse
takeover or scheme of arrangement (including, but not limited to, a tender offer followed by a takeover or reverse takeover) in which the Company survives but (A) the shares of the Company outstanding immediately prior to such transaction are
converted or exchanged by virtue of the transaction into other property, whether in the form of shares, securities, cash or otherwise, or (B) the shares carrying more than fifty percent (50%) of the total combined voting power of the
Company’s then issued and outstanding shares are transferred to a person or persons different from those who held such shares immediately prior to such transaction culminating in such takeover, reverse takeover or scheme of arrangement, or
(C) the Company issues new voting shares in connection with any such transaction such that holders of the Company’s voting shares immediately prior to the transaction no longer hold more than fifty percent (50%) of the voting shares of the
Company after the transaction; or 
 (v)    the acquisition in a single or series of related transactions by any person
or related group of persons (other than Employees of one or more Group Members or entities established for the benefit of the Employees of one or more Group Members) of (A) control of the Board or the ability to appoint a majority of the
members of the Board, or (B) beneficial ownership (within the meaning of Rule 13d-3 under the U.S. Securities Exchange Act) of shares carrying more than fifty percent (50%) of the total combined voting
power of the Company’s then issued and outstanding shares. 
 “Code” means the United States Internal Revenue Code of
1986, as amended. 

  
 2 

 “Committee” means any committee of the Board (or a subcommittee thereof) to
which the Board has delegated power to act pursuant to the provisions of the Plan; provided, that in the absence of any such committee, the term “Committee” shall mean the Administrator. 

“Company” has the meaning set forth in Section 1. 

“Competitor” means any Business that is engaged in or is about to become engaged in any activity of any nature that competes
with a product, process, technique, procedure, device or service of any Group Member. 
 “Consultant” means any Person who
is engaged by a Group Member to render consulting or advisory services to a Group Member. 
 “Director” means a member of
the board of directors of a Group Member. 
 “Disability” means, unless in the case of a particular Award, the particular
Award Agreement states otherwise, as to any Participant, (a) “Disability,” as defined in any employment, consulting or services agreement between the Participant and the applicable Group Member in effect at the time of such termination; or
(b) in the absence of any such employment, consulting or services agreement (or in the absence of any definition of “Disability” contained therein), a disability, whether temporary or permanent, partial or total, as determined by the
Administrator in its sole discretion; provided, that for purposes of Incentive Stock Options, “Disability” means a “permanent and total disability” as defined in Section 22(e)(3) of the Code. 

“Dividend Equivalent” means a right to receive (in cash or other property or, subject to
Section 11, a reduction in exercise price or base price of the relevant outstanding Award) dividends paid on Shares underlying an Award (or an amount equal to the dividends which would have been paid on such Shares, as if
such Shares had been issued and outstanding during the relevant period) as provided under Section 11. 

“Employee” means any person who has an employment relationship with any Group Member. A Service Provider shall not cease to
be an Employee in the case of (i) any leave of absence approved by the relevant Group Member under Applicable Laws, or (ii) transfers between locations of Group Members. 

“Fair Market Value” means, as of any date, the value of Shares determined as follows: 

(i)    If the Shares are listed on one or more established stock exchanges or traded on automated quotation systems, the
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 or traded on the date of determination, as reported in
Bloomberg or such other source as the Administrator deems reliable unless otherwise prescribed by any Applicable Law, or, if the date of determination is not a Trading Date, the closing price as quoted on the principal exchange or system on
which the Shares are listed or traded on the Trading Date immediately preceding the date of determination; 
 (ii)    If
depositary receipts representing the Shares are listed on one or more established stock exchanges or traded on automated quotation systems, the Fair Market Value shall be the closing sales price for such depositary receipts (or the closing bid, if
no sales were reported) as quoted on the principal exchange or system on the date of determination, as reported in Bloomberg or such other source as the Administrator deems reliable, divided by the number of Shares that are represented by
such depositary receipts, or, if the date of determination is not a Trading Date, the closing sales price for such depositary receipts as quoted on the principal exchange or system on which the Shares are listed or traded on the Trading Date
immediately preceding the date of determination, divided by the number of Shares that are represented by such depositary receipts; 

  
 3 

 (iii)    If the Shares or depositary receipts representing the Shares
are regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall be the mean between the high bid and low asked prices for (a) the Shares on the date of determination; or
(b) depositary receipts representing the Shares on the date of determination, divided by the number of Shares that are represented by such depositary receipts, as applicable; or 

(iv)    In the absence of an established market for the Shares, the Fair Market Value thereof shall be determined in good
faith by the Administrator. 
 “Family Member” means (i) any person who is a “family member” of the
Participant, as such term is used in the instructions to Form S-8 under the U.S. Securities Act (collectively, the “Immediate Family Members”, which includes any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, and any person sharing the Participant’s household (other than a tenant or employee); (ii) a trust solely for the
benefit of the Participant and/or his or her Immediate Family Members; or (iii) a partnership or limited liability company whose only partners or shareholders are the Participant and/or his or her Immediate Family Members; or (iv) any
other transferee as may be approved by the Administrator in its sole discretion in an Award Agreement or otherwise. 

“Group” has the meaning set forth in Section 1. 

“Group Member” means the Company, any Subsidiary or any Related Entity. 

“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code. 
 “Incentive Trust” means an incentive trust set up by the company to hold equity underlying
the Awards, on behalf of and subject to instructions from the Company, and for the benefit of the Participants. 
 “Nonstatutory
Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
 “Option” means an option to
purchase Shares granted pursuant to the Plan. Options granted under the Plan may be “Incentive Stock Options” or “Nonstatutory Stock Options,” as determined by the Administrator at the time of grant. 

“Replacement” means the replacement of previous plans by the Plan, which shall be effect on the Effective Date. Upon the
Replacement, all previous equity incentive plans adopted by the Company and in effect prior to the Plan shall be terminated and replaced by the Plan, and the Plan shall assume all Awards granted under the previous equity incentive plans. The Award
Agreements evidencing such Awards, shall survive the Replacement and remain effective and binding under the Plan, subject to any amendment and modification to such Award Agreements as the Administrator, in its sole discretion, deems appropriate and
sufficient. 
 “Participant” means the holder of an outstanding Award granted under the Plan. 

“Person” means any natural person, firm, company, corporation, body corporate, partnership, association, government, state or
agency of a state, local, municipal or provincial authority or government body, joint venture, trust, individual proprietorship, business trust or other enterprise, entity or organization (whether or not having separate legal personality). 

  
 4 

 “Plan” has the meaning set forth in Section 1.

 “Related Entity” means any Person in or of which the Company or a Subsidiary holds a substantial economic interest, or
possesses the power to direct or cause the direction of the management policies, directly or indirectly, through the ownership of voting securities, by contract, or other arrangements as trustee, executor or otherwise, but which, for purposes of the
Plan, is not a Subsidiary and which the Administrator designates as a Related Entity. For purposes of the Plan, any Person in or of which the Company or a Subsidiary owns, directly or indirectly, securities or interests representing twenty percent
(20%) or more of its total combined voting power of all classes of securities or interests shall be deemed a “Related Entity” unless the Administrator determines otherwise. 

“Restricted Share” means a Share subject to restrictions and repurchase rights granted pursuant to the Plan. 

“Restricted Share Unit” means the right to receive a Share at a future date granted pursuant to the Plan. 

“Service Provider” means any Person who is an Employee, a Consultant or a Director; provided, that Awards shall not be
granted to any Consultant or Director in any jurisdiction in which, pursuant to Applicable Laws, grants to non-employees are not permitted. If any Person is a Service Provider by reason of being an Employee,
Director or Consultant to the Company or any Subsidiary and such Person’s service is transferred to a Related Entity, then the Administrator, in its sole discretion, may determine that such Person’s service as a Service Provider has
terminated as a result of such transfer for any or all purposes of any Award, Award Agreement and the Plan. 
 “Share”
means a Class A ordinary share of the Company, par value US$0.0001 per share, as adjusted in accordance with Section 14(a) below. 

“Share Appreciation Right” means a right to receive a payment equal to the excess of the Fair Market Value of a specified
number of Shares on the date the Share Appreciation Right is exercised over the base price as set forth in the applicable Award Agreement, granted pursuant to the Plan. 

“Share Payment” means a payment in the form of Shares, as part of any bonus, deferred compensation or other cash compensation
arrangement, made in lieu of all or any portion of such bonus, deferred compensation or other cash compensation arrangement, granted pursuant to the Plan. 

“Subsidiary” means any Person Controlled by the Company. “Control” means, with respect to any Person, the
possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a Person whether through the ownership of the voting securities of such Person or by contract or otherwise; provided, that for
purposes of Incentive Stock Options, a Subsidiary shall mean only a corporation of which a majority of the outstanding voting securities or voting power is beneficially owned directly or indirectly by the Company. For purposes of the Plan, any
“variable interest entity” that is consolidated into the consolidated financial statements of the Company under applicable accounting principles or standards as may apply to the consolidated financial statements of the Company shall be
deemed a Subsidiary; provided, that, solely as applied to Incentive Stock Options, such “variable interest entity” is also a corporation of which a majority of the outstanding voting securities or voting power is beneficially owned
directly or indirectly by the Company. 

  
 5 

 “Tax” means any income, employment, social welfare or other tax withholding
obligations (including a Participant’s tax obligations) or any levies, stamp duties, charges or taxes required or permitted to be withheld or otherwise payable under Applicable Laws with respect to any taxable event concerning a Participant
arising as a result of this Plan. 
 “Terminated for Cause” or “Termination for Cause” means, in the case
of a Participant, (i) the termination of the Participant’s status as a Service Provider for Cause or (ii) the Participant’s termination without Cause or voluntary resignation as a Service Provider if the Administrator determines
at any time that, before or after the Participant’s termination without Cause or resignation, a Group Member had Cause to terminate such Participant’s status as a Service Provider. 

“Trading Date” means any day on which the Shares or depositary receipts representing the Shares are (i) publicly traded
on one or more established stock exchanges or automated quotation systems under an effective registration statement or similar document under Applicable Law or (ii) quoted by a recognized securities dealer. 

“U.S. Person” means each Person who is a “United States Person” within the meaning of Section 7701(a)(30) of
the Code (i.e., a citizen or resident of the United States, including a lawful permanent resident, even if such individual resides outside of the United States). 

“U.S. Securities Act” means the United States Securities Act of 1933 and the regulations thereunder, as amended from time to
time. 
 “U.S. Securities Exchange Act” means the United States Securities Exchange Act of 1934 and the regulations
thereunder, as amended from time to time. 
 (b)    Interpretation. Unless expressly provided otherwise, or the
context otherwise requires: 
 (i)    the headings in this Plan are for convenience only and shall not
affect its interpretation; 
 (ii)    the terms defined in the singular shall have a comparable meaning
when used in the plural, and vice versa; 
 (iii)    references to “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”; 

(iv)    references to “dollars” or “US$” shall be deemed references to the lawful money
of the United States of America; 
 (v)    references to clauses,
sub-clauses, paragraphs, sub-paragraphs and schedules are to clauses, sub-clauses, paragraphs and
sub-paragraphs of, and schedules to, this Plan; 
 (vi)    use of
any gender includes the other genders; 
 (vii)    a reference to any statute or statutory provision
shall be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or re-enacted; 

  
 6 

 (viii)    a reference to any other document referred to
in this Plan is a reference to that other document as amended, varied, novated or supplemented at any time; and 

(ix)    sections 8 and 19(3) of the Electronic Transactions Law (2003 Revision) of the Cayman Islands shall
not apply. 
 3.    Shares Subject to the Plan. 

(a)    Subject to the provisions of Section 14 and paragraph (b) of this
Section 3, the maximum aggregate number of Shares which may be subject to Awards under the Plan initially shall be equal to 12,464,141 Shares, consisting of (i) 9,500,000 Shares that have been issued to and reserved with
the Incentive Trust and shall grant Awards to Participants on behalf of the Company and pursuant to the instructions of the Administrator; and (ii) 2,964,141 Shares reserved and to be allotted to the Participants . In addition, the Board may from
time to time reserve additional Shares for issuance pursuant to Awards granted under the Plan. Subject to Section 14 and paragraph (b) of this Section 3, the maximum number of Incentive
Stock Options that may be granted is 10,000,000. 
 (b)    If an Award (or any portion thereof) terminates, expires or
lapses or is cancelled for any reason, any Shares subject to the Award (or such portion thereof) shall again be available for the grant of an Award pursuant to the Plan (unless the Plan has terminated). If any Award (in whole or in part) is settled
in cash or other property in lieu of Shares, then the number of Shares subject to such Award (or such part) shall again be available for grant pursuant to the Plan. Shares that have actually been issued under the Plan, pursuant to Awards under the
Plan shall not be returned to the Plan and shall not cause the number of Shares available to be subject to Awards under the Plan to be increased, except that if: 
  

	 	(i)	 any Restricted Shares are forfeited (or surrendered) or the Company repurchases unvested Restricted Shares
pursuant to the terms of the Award Agreement, or 

  

	 	(ii)	 the Company repurchases any Shares granted under any Award (or a portion thereof) in the event of a
Participant’s joining a Competitor, Termination for Cause, or any of the other circumstances as set forth in Section 18(a), 

then such Restricted Shares or Shares shall form part of the authorized but unissued share capital of the Company and may become available for future grant
under the Plan (to the extent permitted under Applicable Laws). 
 4.    Administration of the Plan. 

(a)    Administrator. The Plan shall be administered by the Administrator (except as otherwise permitted herein).

 (b)    Duties and Powers of Administrator. It shall be the duty of the Administrator to conduct the general
administration of the Plan in accordance with its provisions. Subject to the provisions of the Plan, the Administrator shall have the power and authority, in its discretion: 

(i)    to select the Service Providers to whom Awards may from time to time be granted hereunder; 

(ii)    to determine the type or types of Awards to be granted to each Service Provider; 

(iii)    to determine the exercise price of an Option or the base price of a Share Appreciation Right; 

  
 7 

 (iv)    to determine the number of Shares to be covered by each such
Award granted hereunder; 
 (v)    to prescribe the forms of Award Agreement for use under the Plan, which need not be
identical for each Participant and to amend any Award Agreement; provided, that: (1) the rights or obligations of the Participant holding the Award that is the subject of any such Award Agreement are not affected adversely by such
amendment; (2) the consent of the affected Participant is obtained; or (3) such amendment is otherwise permitted under the Plan. Notwithstanding the foregoing, the Administrator shall have the power and authority, in its discretion, to
adjust the number of Shares underlying any Award that has been granted to a Participant or the vesting schedule of any such Award if such Participant is promoted or demoted or transfers to a different position, or if there is any change to the
performance targets for such Participant. Any such amendment of an Award under the Plan need not be the same with respect to each Participant; 

(vi)    to determine the terms and conditions of any Award granted hereunder (such terms and conditions to include, but
not be limited to, the exercise price, the time or times when Awards may be vested, issued or exercised as the case may be (which may be based on performance criteria), the times at which Shares are issuable under a Restricted Share Unit, whether
any Award may be paid in cash or Shares, any rules for tolling the vesting of awards upon an authorized leave of absence, any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Awards or the
Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine); 

(vii)    to determine all matters and questions relating to whether a Participant’s status as a Service Provider has
been terminated, including without limitation if such termination was for Cause or for Disability and, if so, to determine the effective date of such termination (which it may determine to be the date of notice of resignation or the date of an act
or omission by such Participant constituting Cause) and all questions of whether particular leaves of absence constitute a termination of the Service Provider; 

(viii)    to determine whether a Business is a Competitor; 

(ix)    to prescribe, amend and rescind rules and regulations relating to the Plan and the administration of the Plan and
all Award Agreements, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred Tax treatment under the tax laws of any jurisdiction; 

(x)    to allow the Participants to satisfy Tax withholding obligations by having the Company withhold from the Shares to
be issued pursuant to an Award (or a portion thereof), that number of Shares having a Fair Market Value equal to the amount required to be withheld as set forth in Section 15(j) below; 

(xi)    to take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with
Applicable Laws or any necessary local governmental regulatory exemptions or approvals or listing requirements of any securities exchange or automated quotation system; 

(xii)    to construe, interpret, reconcile any inconsistency in, correct any defect in and/or supply any omission in, the
terms of the Plan, any Award Agreement and any Award granted pursuant to the Plan; and 
 (xiii)    make all other
decisions and determinations that may be required pursuant to the Plan or as the Administrator deems necessary or advisable to administer the Plan. 

  
 8 

 (c)    Action by the Administrator. The Administrator may act at
a meeting or in writing signed by all members in lieu of a meeting. The Administrator is entitled to, in good faith, rely or act upon any report or other information furnished by any officer or other employee of any Group Member, the Company’s
independent certified public accountants, or any executive compensation consultant or other professional retained by the Company or the Administrator to assist in the administration of the Plan. 

(d)    Effect of Administrator’s Decision. The Administrator’s interpretation of the Plan, any Awards
granted pursuant to the Plan and any Award Agreement, and all decisions, determinations and interpretations of the Administrator shall be final, binding and conclusive for all purposes and upon all Participants. 

(e)    Delegation of Authority. To the extent permitted by Applicable Laws, the Administrator may from time to time
delegate to a committee of one or more members of the Board or one or more officers of the Company the authority to grant or amend Awards or to take other administrative actions pursuant to this Section 4. Any delegation
hereunder shall be subject to the restrictions and limits that the Administrator specifies at the time of such delegation, and the Administrator may at any time rescind the authority so delegated or appoint a new delegate. 

5.    Eligibility. 

(a)    Subject to the terms of the Plan, all forms of Awards may be granted to any Service Provider. Incentive Stock
Options, however, may be granted only to employees of the Company or any “subsidiary corporation” (as defined in Section 424(f) of the Code) of the Company. Except for grants of Incentive Stock Options, for purposes of this
Section 5(a), “Service Providers” shall include prospective Service Providers to whom Awards are granted in connection with written offers of a service relationship with a Group Member. 

(b)    An Option that is intended to be an Incentive Stock Option shall be so designated in the Award Agreement. 

(c)    Neither the Plan nor any Award shall confer upon any Participant any right with respect to continuing the
Participant’s relationship as a Service Provider with any Group Member, nor shall it interfere in any way with his or her right or any Group Member’s right to terminate such relationship at any time, with or without cause. 

(d)    Unless the Administrator provides otherwise, vesting of Awards granted hereunder shall be tolled during any unpaid
leave of absence in accordance with such rules as the Administrator shall determine. 
 6.    Terms of Awards. 

(a)    Term. The term of each Award shall be stated in the Award Agreement; provided, that the term shall be
no more than ten (10) years from the date of grant thereof. Subject to the foregoing, except as limited by the requirements of Section 409A of the Code and regulations and rulings thereunder, the Administrator may extend the term of any
outstanding Award, and may extend the time period during which vested Awards may be exercised, in connection with any termination of Participant’s status as a Service Provider, and may amend any other term or condition of an Award relating to
such termination. 
 (b)    Timing of Granting of Awards. The date of grant of an Award shall, for all purposes,
be the date on which the Administrator makes the determination granting such Award or such other future date as is determined by the Administrator. Notice of the determination shall be given to each Service Provider to whom an Award is so granted
within a reasonable time after the date of such grant. 

  
 9 

 (c)    Stand-Alone and Tandem Awards. Awards granted pursuant to
the Plan may, in the sole discretion of the Administrator, be granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan (or any other award granted pursuant to another compensation plan). Awards granted in
addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards (or any other award granted pursuant to another compensation plan). 

(d)    Award Agreement. All Awards shall be evidenced by an Award Agreement setting forth the number of Shares
subject to the Award and the terms and conditions of the Award, which shall not be inconsistent with the Plan; provided, that if necessary to comply with Section 409A of the Code, for each U.S. Person the Shares subject to the Awards
shall be “service recipient stock” within the meaning of Section 409A of the Code or the Award shall otherwise comply with Section 409A of the Code, unless the Participant consents otherwise.  

(e)    Vesting. The period during which an Award, in whole or in part, vests shall be set by the Administrator, and
the Administrator may determine that an Award may not vest in whole or in part for a specified period after it is granted. Such vesting may be based on service with a Group Member and/or any other criteria selected by the Administrator. At any time
after grant of an Award, the Administrator may, in its sole discretion and subject to whatever terms and conditions it selects, accelerate the period during which an Award vests. No portion of an Award which is unvested or unexercisable at the
termination of Participant’s status of as a Service Provider shall thereafter become vested or exercisable, except as may be otherwise provided by the Administrator either in the Award Agreement or by action of the Administrator following the
grant of the Award. 
 (f)    Issuance of Shares. Shares issued upon grant, exercise or vesting of an Award (or
any portion thereof) shall be issued in the name of the Participant or, if requested by the Participant and if approved by the Administrator in its sole discretion, in the name of the Participant and/or in the name of one of more of his or her
Family Members, and/or in the name of a trust whose settlors were/are approved by the Administrator. 

(g)    Termination of Relationship as a Service Provider. If a Participant’s status as a Service Provider
terminates, such Participant may exercise any unexercised Award (to the extent exercisable) within such period of time as is specified in the Award Agreement to the extent that the Award is vested and exercisable on the date of termination (but in
no event later than the expiration of the term of the Award as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, and except as provided in Sections 6(h), 6(i) and 6(j), Awards shall
remain exercisable for six (6) months following the Participant’s termination (but in no event later than the expiration of the term of the Award as set forth in the Award Agreement). Unless otherwise specified in the Award Agreement or
otherwise determined by the Administrator, if, on the date of termination, the Participant is not vested as to his or her entire Award, the unvested portion of such Award shall be deemed cancelled and the Shares covered by the unvested portion of
the Award shall revert to the Plan and again be available for grant or award under the Plan. If, after termination, the Participant does not exercise his or her Award within the time specified by the Administrator, the Award shall terminate, and the
Shares covered by such Award shall revert to the Plan and again be available for grant or award under the Plan. 

  
 10 

 (h)    Disability of Participant. If a Participant’s status
as a Service Provider terminates as a result of the Participant’s Disability, the Participant may exercise any unexercised Award (to the extent exercisable) within such period of time as is specified in the Award Agreement to the extent the
Award is vested and exercisable on the date of termination (but in no event later than the expiration of the term of such Award as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Award shall remain
exercisable for twelve (12) months following the Participant’s termination (but in no event later than the expiration of the term of the Award as set forth in the Award Agreement). Unless otherwise specified in the Award Agreement or
otherwise determined by the Administrator, if, on the date of termination, the Participant is not vested as to his or her entire Award, the unvested portion of such Award shall be deemed cancelled and the Shares covered by the unvested portion of
the Award shall revert to the Plan and again be available for grant or award under the Plan. If, after termination, the Participant does not exercise his or her Award within the time specified herein, the Award shall terminate, and the Shares
covered by such Award shall revert to the Plan and again be available for grant or award under the Plan. 

(i)    Death of Participant. If a Participant dies as a Service Provider, any unexercised Award (to the extent
exercisable) may be exercised within such period of time as is specified in the Award Agreement to the extent that the Award is vested on the date of death of the Participant (but in no event later than the expiration of the term of such Award as
set forth in the Award Agreement) by the Participant’s estate or by a person who acquires the right to exercise the Award by bequest or inheritance. In the absence of a specified time in the Award Agreement, the Award shall remain exercisable
for twelve (12) months following the Participant’s death (but in no event later than the expiration of the term of the Award as set forth in the Award Agreement). Unless otherwise specified in the Award Agreement or otherwise determined by
the Administrator, if, at the time of death, the Participant is not vested as to the entire Award, the unvested portion of such Award shall be deemed cancelled and the Shares covered by the unvested portion of the Award shall immediately revert to
the Plan and again be available for grant or award under the Plan. If the Award is not so exercised within the time specified herein, the Award shall terminate, and the Shares covered by such Award shall revert to the Plan and again be available for
grant or award under the Plan. 
 (j)    Termination for Cause. Subject to Applicable Law, if a Participant is
Terminated for Cause, all unexercised Options or Share Appreciation Rights, whether vested or unvested, and all other unvested Awards, shall be cancelled as of the date of such termination as determined by the Administrator in its sole discretion,
and all Shares acquired pursuant to an Award by such Participant shall be subject to a right of repurchase by the Company in accordance with Section 18(b). Any Shares covered by cancelled Awards, and any Shares so
repurchased shall revert to the Plan and again be available for grant or award under the Plan. 
 7.    Options. 

(a)    Rights to Purchase. After the Administrator determines that it will offer Options under the Plan, it shall
advise the offeree in writing or electronically of the terms, conditions and restrictions related to such Options. 

  
 11 

 (b)    Exercise Price. The exercise price per Share subject to an
Option shall be determined by the Administrator and set forth in the Award Agreement which, unless otherwise determined by the Administrator, may be a fixed or variable price determined by reference to the Fair Market Value of the Shares over which
such Award is granted; provided, that (i) the exercise price of an Incentive Stock Option shall not be less than the Fair Market Value of a Share on the date of grant and, in the case of an Incentive Stock Option granted to an employee
who, at the time of the grant of such Option, owns stock representing more than 10% of the voting power of all classes of stock of any member of the Company Group, the exercise price per Share shall be no less than 110% of the Fair Market Value per
Share on the date of grant; (ii) no Option may be granted to a U.S. Person with an exercise price per Share which is less than the Fair Market Value of a Share on the date of grant (or date of adjustment pursuant to the following sentence),
without compliance with Section 409A of the Code, or the Participant’s consent; (iii) an Option may be granted with an exercise price lower than that set forth herein if such Option is granted pursuant to an assumption or substitution
for an option granted by another company, whether in connection with an acquisition of such other company or otherwise; and (iv) the exercise price per Share shall not in any circumstances be less than the par value of the Share. The exercise
price per Share subject to an Option may be amended or adjusted in the absolute discretion of the Administrator, provided, that such adjustment does not result in a materially adverse impact to the Participant; provided,
further, that the exercise price per Share may not in any circumstances be reduced to less than the par value of the Share. For the avoidance of doubt, to the extent not prohibited by Applicable Laws, a downward adjustment of the exercise
prices of Options mentioned in the preceding sentence shall be effective without the approval of the Board or the Company’s shareholders or the approval of the affected Participants. 

(c)    Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option,
including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). Such consideration may consist of: 

(i)    cash; 

(ii)    check; 

(iii)    promissory note; 

(iv)    subject to the consent of the Administrator, Shares (“Repurchased Shares”) (including Shares
issuable upon exercise of such Options) which have a Fair Market Value on the date of repurchase equal to the aggregate exercise price of the Shares as to which such Option shall be exercised (“Delivered Shares”), provided
that: (A) arrangements have been made for the repurchase by the Company of such Repurchased Shares and the paying up in full of the par value of the Delivered Shares as required under Applicable Laws; (B) such Repurchased Shares have been
held by the Participant for such period as established from time to time by the Administrator in order to avoid adverse accounting treatment applying generally accepted accounting principles; and (C) any other reasonable requirements as may be
imposed by the Administrator (including by means of attestation of ownership of a sufficient number of Shares in lieu of actual delivery of such Shares to the Company) have been satisfied; 

(v)    consideration received by the Company under a broker-assisted or similar cashless exercise program implemented by
the Company in connection with the Plan; provided, that, where relevant, arrangements have been made for the payment in full of the par value of any Shares as required under Applicable Laws in connection with such program; 

(vi)    by such other consideration as may be approved by the Administrator from time to time to the extent permitted by
Applicable Laws; or 
 (vii)    any combination of the foregoing methods of payment. In making its determination as to
the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company. 

(d)    Procedure for Exercise. Any Option granted hereunder shall be exercisable according to the terms hereof at
such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. An Option shall be exercised when the Company receives written or electronic
notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise the Option and payment of the exercise price and Taxes which are required to be withheld or paid by the relevant Group Member. Full payment may consist
of any consideration and method of payment permitted under Section 7(c) above. 

  
 12 

 (e)    Rights as a Shareholder. Until the Shares are evidenced as
issued by entry in the Company’s register of shareholders, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall cause
such Shares to be evidenced as issued by entry in the Company’s register of shareholders promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares
are issued, except as provided in Section 14. 
 (f)    Substitution of Share Appreciation
Rights. The Administrator may provide in the Award Agreement evidencing the grant of an Option that the Administrator, in its sole discretion, shall have the right to substitute a Share Appreciation Right for such Option at any time prior to or
upon exercise of such Option; provided, that such Share Appreciation Right shall be exercisable with respect to the same number of Shares for which such substituted Option would have been exercisable. 

8.    Restricted Shares. 

(a)    Rights to Purchase. After the Administrator determines that it will offer Restricted Shares under the Plan,
it shall advise the offeree in writing or electronically of the terms, conditions and restrictions related to such Restricted Shares. 

(b)    Restrictions. All Restricted Shares shall, in the terms of each individual Award Agreement, be subject to
such restrictions and vesting requirements as the Administrator shall provide. Restricted Shares may not be sold or encumbered until all restrictions are terminated or expire in accordance with the terms of the relevant Award Agreement. All share
certificates relating to Restricted Shares shall be held by the Company in escrow for the Participant until all restrictions on such Restricted Shares have been removed. 

(c)    Repurchase or Forfeiture of Restricted Shares. If the price for the Restricted Shares was paid by the
Participant in services, then upon termination as a Service Provider, the Participant shall no longer have any right in the unvested Restricted Shares and such Restricted Shares shall be forfeited (and for these purposes the Participant shall be
deemed to have surrendered such Restricted Shares), and thereupon either cancelled or surrendered to the Company without consideration. If a purchase price was paid by the Participant for the Restricted Shares (other than in services), then upon the
Participant’s termination as a Service Provider, the Company shall have the right to repurchase from the Participant the unvested Restricted Shares then subject to restrictions at a cash price per share equal to the price paid by the
Participant for such Restricted Shares or such other amount as may be specified in the Award Agreement. 

(d)    Rights as a Shareholder. Once the Restricted Shares are issued, subject only to the restrictions on such
Restricted Shares as provided in the Award Agreement, the Participant shall have rights as a shareholder which are equivalent to the rights of other holders of Shares, and shall be a shareholder when he or she is recorded as the holder of such
Restricted Shares upon entry in the Company’s register of shareholders. No adjustment shall be made for a dividend or other right in respect of any Restricted Share for which the record date is prior to the date the Participant is entered on
the Company’s register of shareholders in respect of such Restricted Shares, except as provided in Section 14 of the Plan. 

9.    Restricted Share Units. 

(a)    Rights to Purchase. After the Administrator determines that it will offer Restricted Shares Units under the
Plan, it shall advise the offeree in writing or electronically of the terms, conditions and restrictions related to such Restricted Shares Units. 

  
 13 

 (b)    Rights as a Shareholder. Until a Share is issued in
settlement of a Restricted Share Unit by entry in the Company’s register of shareholders, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to such Share. The Company shall cause such Share to
be evidenced as issued by entry in the Company’s register of shareholders promptly after the Restricted Share Unit vests. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are
issued, except as provided in Section 14. 
 10.    Share Appreciation Rights. 

(a)    Rights to Purchase. After the Administrator determines that it will offer Share Appreciation Rights under the
Plan, it shall advise the offeree in writing or electronically of the terms, conditions and restrictions related to such Share Appreciation Rights. 

(b)    Base Price. The price per Share over which the appreciation of each Share Appreciation Right is to be
measured shall be the base price as determined by the Administrator and set forth in the Award Agreement which may be a fixed or variable price determined by reference to the Fair Market Value of the Shares; provided, that for each U.S.
Person such base price may not be established at less than the Fair Market Value on the date the Share Appreciation Right is granted, without such Share Appreciation Right either complying with Section 409A of the Code, or the
Participant’s consent. The base price per Share so established for a Share Appreciation Right may be amended or adjusted in the absolute discretion of the Administrator, provided, that such adjustment does not result in a materially
adverse impact to the Participant. For the avoidance of doubt, to the extent not prohibited by Applicable Laws, a downward adjustment in the base price mentioned in the preceding sentence shall be effective without the approval of the Board or the
Company’s shareholders or the approval of the affected Participants. 
 (c)    Payment. Payment by the
Company for a Share Appreciation Right shall be in cash, in Shares (based on their Fair Market Value as of the date the Share Appreciation Right is exercised) or a combination of both, as determined by the Administrator in the Award Agreement or, if
the Award Agreement does not specifically so provide, by the Administrator at the time of exercise. To the extent any payment is effected in Shares, only that number of Shares actually issued in payment of the Share Appreciation Right shall be
counted against the maximum number of Shares which may be issued under Section 3.  

(d)    Procedure for Exercise. Any Share Appreciation Right granted hereunder shall be exercisable according to the
terms hereof at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. A Share Appreciation Right shall be exercised when the Company receives written or electronic notice of exercise (in
accordance with the Award Agreement) from the person entitled to exercise the Share Appreciation Right and payment of Taxes which are required to be withheld by the relevant Group Member. If Shares are issued upon exercise of a Share Appreciation
Right, then such Shares shall be issued in the name of the Participant or, if requested by the Participant and if approved by the Administrator in its sole discretion, in the name of the Participant and/or in the name of one or more of his or her
Family Members. 
 (e)    Rights as a Shareholder. Until the Shares are issued by entry in the Company’s
register of members, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares, notwithstanding the exercise of the Share Appreciation Right. The Company shall issue (or cause to be issued)
such Shares promptly after the Share Appreciation Right is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in
Section 14. 

  
 14 

 11.    Dividend Equivalents. 

The Administrator is authorized to grant Dividend Equivalents on any Award and to any Service Provider. Dividend Equivalents with respect to an
Award may be granted by the Administrator based on dividends declared on the Shares underlying such Award (and, in the case of any such Shares which have not been issued, the Dividend Equivalent may entitle the holder of such Award to receive an
amount equal to the dividends which would have been paid on such Shares, as if such Shares had been issued and outstanding during the relevant period), to be credited as of dividend payment dates during the period between the date the Dividend
Equivalent is granted to a Participant and the date the Award with respect to which the Dividend Equivalent vests, is exercised, is distributed or expires, as determined by the Administrator. Such Dividend Equivalents shall be settled in cash, other
property or a reduction in exercise price or base price of the relevant Award by such formula and at such time and subject to such limitations as may be determined by the Administrator and as set forth in the Award Agreement or otherwise. Dividend
Equivalents shall not be granted on Options or Share Appreciation Rights granted to U.S. Persons. 
 12.    Share Payments. 

The Administrator is authorized to grant Share Payments to any Service Provider in the manner determined from time to time by the
Administrator; provided, that unless otherwise determined by the Administrator such Share Payments shall be made in lieu of base salary, bonus, or other cash compensation otherwise payable to such Participant, including any such compensation
that has been deferred at the election of the Participant; provided, further, that not less than the par value of any Share shall be received by the Company in connection with its issue pursuant to any such Share Payment. In accordance
with Applicable Law, such par value may be paid through the provision of services. The number of Shares issuable as a Share Payment shall be determined by the Administrator and may be based upon satisfaction of such specific criteria as determined
appropriate by the Administrator, including specified dates for electing to receive such Share Payment at a later date and the date on which such Share Payment is to be made. 

13.    Non-Transferability of Awards. 

Awards, and any interest therein, will not be transferable or assignable by the Participant, and may not be made subject to execution,
attachment or similar process; provided, that (i) during a Participant’s lifetime, with the consent of the Administrator (on such terms and conditions as the Administrator determines appropriate), the Participant may transfer Awards
(except Incentive Stock Options and Restricted Share Units) pursuant to domestic relations order in the settlement of marital property rights, (ii) the Administrator may permit transfer of an Award to Family Members (except Incentive Stock
Options) in its sole discretion under such circumstances as it deems appropriate, (iii) the Participant may transfer, assign or donate Options to a trust whose settlors were/are approved by the Administrator, and (iv) following a
Participant’s death, Awards, to the extent they are vested upon the Participant’s death, may be transferred by will or by the laws of descent and distribution. 

14.    Adjustments Upon Changes in Capitalization, Change in Control. 

(a)    Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of
Shares covered by each outstanding Award, the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an
Award, and the number of Shares subject to grant as Incentive Stock Options, as well as the price per Share covered by each such outstanding Award and any other affected terms of such Awards, shall be proportionally and equitably adjusted for any
increase or decrease in the number of issued Shares resulting from a subdivision or consolidation, share dividend, amalgamation, spin-off, arrangement or consolidation, combination or reclassification of
Shares. Additionally, in the event of any other increase or decrease in the number of issued Shares effected without consideration by the Company, then the number of Shares covered by each outstanding Award, the number of Shares which have been
authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Award and the limitations on the number of Shares subject to grant as Incentive
Stock Options, as well as the price per Share covered by each outstanding Award may be adjusted for any increase or decrease in the number of issued Shares resulting therefrom. The conversion of any convertible securities of the Company shall not be
deemed to have been “effected without receipt of consideration.” The manner in which such adjustments under this Section 14(a) are to be accomplished shall be determined by the Board whose determination shall be
final, binding and conclusive. Except as expressly provided herein, 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 or price of Shares subject to an Award. For the avoidance of doubt, in the case of any extraordinary cash dividend, the Administrator shall make an equitable or proportionate adjustment to outstanding Awards to reflect the effect of
such extraordinary cash dividend. 

  
 15 

 (b)    Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each Participant as soon as practicable prior to the effective date of commencement of such proposed dissolution or liquidation. The Administrator in its discretion may
provide for a Participant to have the right to exercise his or her Option, or Share Appreciation Right until fifteen (15) days prior to the commencement of such dissolution or liquidation as to all of the Shares covered thereby. In addition,
the Administrator may provide that any Company repurchase option or any vesting condition applicable to any Restricted Shares shall lapse as to all such Restricted Shares and any Shares issuable under any Restricted Share Units, or as Share Payments
shall be issued as of such date; provided, that the proposed dissolution or liquidation commences at the time and in the manner contemplated by the proposed dissolution or liquidation. To the extent it has not been previously exercised or
paid out, all Awards will terminate immediately prior to the commencement of such proposed dissolution or liquidation. 

(c)    Change in Control. 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 a Change in Control occurs, the Company as determined in the sole discretion of the Administrator and without the consent of the Participant may take any of the following actions: 

(i)    accelerate or not accelerate the vesting, in whole or in part, of any Award, or some or all Awards, of any
Participate, some Participants or all Participants; 
 (ii)    purchase any Award for an amount of cash or shares equal
to the value that could have been attained upon the exercise of such Award or realization of the Participant’s rights had such Award been currently exercisable or payable or fully vested (and, for the avoidance of doubt, if as of such date the
Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment); or 

(iii)    provide for the assumption, conversion or replacement of any Award by the successor or surviving company or a
parent or subsidiary of the successor or surviving company with other rights (including cash) or property selected by the Administrator in its sole discretion or the assumption or substitution of such Award by the successor or surviving company, or
a parent or subsidiary thereof, with such appropriate adjustments as to the number and kind of shares and prices as the Administrator deems, in its sole discretion, reasonable, equitable and appropriate. In the event the successor or surviving
company refuses to assume, convert or replace outstanding Awards, the Awards shall fully vest and the Participant shall have the right to exercise or receive payment as to all of the Shares subject to the Award, including Shares as to which it would
not otherwise be vested, exercisable or otherwise issuable (including at the time of the Change in Control). 

  
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 (d)    Prior to any payment or adjustment contemplated under this
Section 14, the Administrator may require a Participant to (i) represent and warrant as to the unencumbered title to the Participant’s Awards; (ii) bear such Participant’s pro rata share of any post-closing indemnity
obligations, and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Shares, subject to any limitations or reductions as may be necessary to
comply with Section 409A of the Code; and (iii) deliver customary transfer documentation as reasonably determined by the Administrator. 

15.    Miscellaneous General Rules 

(a)    Share Certificates; Book Entry Procedures. Notwithstanding anything herein to the contrary, the
Company shall not be required to issue or deliver any certificates evidencing Shares or ADSs (as defined in Section 15(e)) issued pursuant to the exercise of any Award, unless and until the Board has determined, with advice of counsel, that the
issuance and/or delivery of such certificates, as applicable, 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
and ADS certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Administrator 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 Administrator may place legends on any Share or ADS certificate to reference restrictions applicable to the Share. In addition to the terms and conditions
provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements. The
Administrator 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
Administrator. Notwithstanding further any other provision of the Plan, unless otherwise determined by the Administrator or required by any Applicable Law, the Company shall not deliver to any Participant certificates evidencing Shares or ADSs
issued in connection with any Award and instead such Shares or ADSs shall be recorded in the books of the Company (or, as applicable, its transfer agent or share plan administrator). 

(b)    Paperless Administration. Subject to Applicable Laws, the Administrator may make Awards, provide applicable
disclosure and procedures for exercise of Awards by an internet website, electronic mail or interactive voice response system for the paperless administration of Awards. 

(c)    Applicable Currency. The Award Agreement shall specify the currency applicable to such Award. The
Administrator may determine, in its sole discretion, that an Award denominated in one currency may be paid in any other currency based on the prevailing exchange rate as the Administrator deems appropriate. A Participant may be required to provide
evidence that any currency used to pay the exercise price or purchase 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. 
 (d)    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 Company or any Subsidiary except to the extent otherwise expressly provided in writing in such
other plan or an agreement thereunder. 

  
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 (e)    Government and Other Regulations; Distribution of Shares.
The obligation of the Company to make payment of awards in Shares or otherwise shall be subject to all Applicable Laws, rules, and regulations, 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 any Applicable Laws. If the Shares paid pursuant to the Plan may in certain circumstances be exempt from registration under 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. Additionally, in the discretion of the Administrator, American depositary shares (“ADSs”), may be distributed in lieu of Shares in
settlement of any Award; provided, that the ADSs shall be of equal value to the Shares that would have otherwise been distributed; provided, further, that, in lieu of issuing a fractional ADS, the Company shall make a cash
payment to the Participant equal to the Fair Market Value of such fractional ADS. If the number of Shares represented by an ADS is other than on a one-to-one basis, the
limitations contained in Section 3 shall be adjusted to reflect the distribution of ADSs in lieu of Shares. 

(f)    Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries. 

(g)    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. 

(h)    Fractional Shares. No fractional Share shall be issued and the Administrator 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 down. 

(i)    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 Administrator is obligated to treat Participants, Employees, Consultants, Directors or any other persons uniformly. 

(j)    Taxes. No Shares shall be issued, and no payment shall be made under the Plan to any Participant until such
Participant has made arrangements acceptable to the Administrator for the satisfaction of Taxes and any other costs and expenses in connection with the grant, exercise or vesting of Awards and/or the issuance of the Shares. The Company or the
relevant Group Member shall have the authority and the right to deduct or withhold from any compensation payable to a Participant, or require a Participant to remit to the Company or the relevant Group Member, an amount sufficient to satisfy all
Taxes. The Administrator may in its discretion and in satisfaction of the foregoing requirement allow or require a Participant to satisfy Taxes by electing to have the Company withhold Shares otherwise issuable under an Award (or other amounts
payable under an Award) having a Fair Market Value equal to the Taxes. Notwithstanding any other provision of the Plan, the number of Shares otherwise issuable under an Award which may be withheld with respect to the grant, issuance, vesting,
exercise or payment of any Award (or which may be repurchased from the Participant of such Award (or a portion thereof) after such Shares were acquired by the Participant from the Company) in order to satisfy all Taxes, unless specifically approved
by the Administrator, be limited to the number of Shares otherwise issuable under an Award which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such Taxes. The Fair Market Value of the Shares
otherwise issuable under an Award to be withheld shall be determined on the date that the amount of Taxes to be withheld is to be determined. All elections by the Participants to have Shares otherwise issuable under an Award withheld for this
purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable. 

(k)    Buy-Out. In the sole discretion of the Administrator, any Award (in
whole or in part) under the Plan may be settled in cash or other property in lieu of Shares; provided, that payment in cash or other property in lieu of Shares shall not be made earlier than the time such Shares are issuable pursuant to the
terms of the Award. 

  
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 (l)    Valuation. For purposes of
Section 14(c) where an Award is converted into or any underlying Share is substituted with cash or other property or securities (a “Substitute Property”), the valuation of such Award and its Substitute
Property, or the exchange ratio between the two, shall be determined in good faith by the Administrator and supported by the valuation achieved in the relevant transaction, or in the absence of any such transaction, by an independent valuation
expert selected by the Administrator. 
 (m)    Effect of Plan upon Other Compensation Plans. Except determined
by the Board or otherwise expressly stated herein (including the Replacement of Previous Plans), the adoption of the Plan shall not affect any other compensation or incentive plans in effect or to be effect for the Company or any Subsidiary or
Related Entity. Nothing in the Plan shall be construed to limit the right of the Company, any Subsidiary or any Related Entity (a) to establish any other forms of incentives or compensation for Service Providers, or (b) to grant or assume
options or other rights or awards otherwise than under the Plan in connection with any proper corporate purpose including without limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger,
consolidation or otherwise, of the business, securities or assets of any corporation, partnership, limited liability company, firm or association. 

(n)    Section 409A. To the extent that the Administrator determines that any Award granted to a U.S. Person under
the Plan is 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 Award Agreements shall be
interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of the Plan to the contrary, in the event that the Administrator
determines that any Award may be subject to Section 409A of the Code and related Department of Treasury guidance, the Administrator 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 Administrator determines are necessary or appropriate to (i) 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 (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application of any penalty taxes
under such Section. The Administrator shall use commercially reasonable efforts to implement the provisions of this Section 15(n) in good faith; provided, that neither the Company, the Administrator nor any of the
Company’s employees, directors or representatives shall have any liability to any Participant with respect to this Section 15(n). 

(o)    Indemnification. To the extent allowable pursuant to Applicable Laws, the Administrator (or any individual
member of the Committee or the Board acting as the Administrator) 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 it or such member in connection
with or resulting from any claim, action, suit, or proceeding to which it, he or she may be a party or in which it, 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 it, him or her in satisfaction of judgment in such action, suit, or proceeding against it, him or her; provided, that it, he or she gives the Company an opportunity, at its own expense, to handle and defend the same before it, he or
she undertakes to handle and defend it on its, 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 and articles of association as amended from time to time, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

  
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 (p)    Plan Language. The official language of the Plan shall be
English. To the extent that the Plan or any Award Agreements are translated from English into another language, the English version of the Plan and Award Agreements will always govern, in the event that there are inconsistencies or ambiguities which
may arise due to such translation. Notwithstanding the foregoing, the Administrator, as deemed necessary and appropriate, may decide that the language of any Award Agreements prepared only in Chinese version. 

(q)    Other Provisions. The Award Agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 
 16.    Amendment and Termination of
the Plan. 
 (a)    Effective Date; Term of Plan. This Plan shall become effective as determined by the Board;
provided, that no Options or Share Appreciation Rights granted under this Plan shall be exercised, the Company’s right to repurchase Restricted Shares shall not lapse, no Dividend Equivalents shall be paid and no Shares shall be issued
under a Restricted Share Unit or in the form of a Share Payment unless and until this Plan has been approved by the shareholders of the Company; provided, further, that to the extent any Awards granted under the Plan are Incentive
Stock Options, the Plan has been or will be approved by the shareholders of the Company within twelve (12) months before or after the date this Plan is adopted by the Board. This Plan shall continue in effect for a term of ten (10) years
unless sooner terminated under this Section 16. 
 (b)    Amendment and Termination.
The Board in its sole discretion may terminate this Plan at any time. The Board may amend this Plan at any time in such respects as the Board may deem advisable; provided, that, if required to comply with Applicable Laws or stock
exchange rules or the rules of any automated quotation systems (other than any requirement which may be disapplied by the Company following any available home country exemption), the Company shall obtain shareholder approval of any Plan amendment in
such a manner and to such a degree as required. 
 (c)    Effect of Termination. Except as otherwise provided in
Section 14, any amendment or termination of this Plan shall not affect Awards previously granted or issued, as the case may be, and such Awards shall remain in full force and effect as if this Plan had not been amended or
terminated, unless mutually agreed otherwise between the affected Participant and the Company, which agreement must be in writing and signed by the Participant and the Company. 

17.    Certain Securities Law Matters. 

(a)    The Company intends that as long as it is not subject to the reporting requirements of Section 13 or 15(d) of
the U.S. Securities Exchange Act, and is not an investment company registered or required to be registered under the Investment Company Act of 1940, as amended, all grants of Awards and Shares issuable upon exercise or vesting of Awards shall be
exempt from registration under the provisions of Section 5 of the U.S. Securities Act, and this Plan shall be administered in such a manner so as to preserve such exemption. The Company intends for this Plan to constitute a written compensatory
benefit plan within the meaning of Rule 701(b) of Title 17, Code of Federal Regulations, Section 230.701 (“Rule 701”), promulgated by U.S. Securities Act. Unless otherwise designated by the Administrator at the time an Award is
granted, all Awards granted under this Plan by the Company, and the issuance of any Shares pursuant thereto, are intended to be granted to (i) persons who meet the requirements of a “U.S. Person” as such term is defined in Rule 902(k)
of Title 17, Code of Federal Regulations, Section 230.901 through 230.905, promulgated under the U.S. Securities Act (“Regulation S”) in reliance on Rule 701 or (ii) persons other than persons who meet the requirements of
a “U.S. Person” as such term is defined in Regulation S, in compliance with Regulation S or otherwise be exempt from registration. 

  
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 (b)     The obligation of the Company to settle Awards in Shares or
other consideration shall be subject to all Applicable Laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under
no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any Shares pursuant to an Award unless such shares have been properly registered for sale pursuant to Applicable Laws or unless the Company has
received an opinion of counsel, satisfactory to the Company, that such Shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with.
The Company shall be under no obligation to register for sale under any Applicable Laws any of the Shares to be offered or sold under the Plan. 

(c)     The Administrator may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal
or contractual restrictions and/or blockage and/or other market considerations would make the Company’s acquisition of Shares from the public markets, the Company’s issuance of the Shares to the Participant, the Participant’s
acquisition of the Shares from the Company and/or the Participant’s sale of Shares to the public markets, illegal, impracticable or inadvisable. If the Administrator determines to cancel all or any portion of an Award in accordance with the
foregoing, the Company shall pay to the Participant an amount equal to the excess of (i) the aggregate Fair Market Value of the Shares subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the date
that the Shares would have been vested or issued, as applicable), over (ii) the aggregate exercise price or base amount or any amount payable as a condition of issuance of Shares (in the case of any other Award). Such amount shall be delivered
to the Participant as soon as practicable following the cancellation of such Award or portion thereof. 
 (d)
    Notwithstanding any provision of the Plan to the contrary, in no event shall a Participant be permitted to exercise an Option in a manner that the Administrator determines would violate the United States Sarbanes-Oxley Act of
2002, or any other Applicable Law or the applicable rules and regulations of the U.S. Securities Exchange Commission or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the
Company are listed or traded 
 18.    Joining a Competitor; Termination for Cause.

(a)     All Awards (whether vested or unvested) shall be cancelled as of the date of termination of the Participant as a
Service Provider; 
 (b)     All Shares issued pursuant to any Award (or a portion thereof) shall be subject to
repurchase by the Company at (i) the lesser of the (A) original purchase price of such Shares (or in the event no payment was made or the price was paid in services, then the Shares will be forfeited and surrendered to the Company without
payment), or (B) Fair Market Value or such other value of Shares as determined by the Administrator or as set forth in the applicable Award Agreement, or (ii) the par value of such Shares, if such Shares have been issued in exchange for
services which shall be considered the original purchase price, or (iii) the par value of such Shares, if such Shares have been issued under Restricted Share Units or as Share Payments; and 

  
 21 

 (c)     All proceeds, gains or other economic benefit actually or
constructively received by the Participant upon any receipt or exercise of any Awards (or a portion thereof) or upon the receipt or resale of any Shares underlying any Award (or a portion thereof), must be paid to the Company if: 

(i)     within twenty four (24) months of termination as a Service Provider or such longer period determined by the
Administrator and as set forth in the applicable Award Agreement, the Participant (A) directly or indirectly, establishes, incorporates, forms, enters into, or participates in the Business as an owner, partner, principal or shareholder or other
proprietor (other than through a purchase on the open market, solely as a passive investment, of not more than five percent (5%) of the interest) of any Competitor, or (B) has become, is or becomes an officer, director, employee, consultant,
adviser of, or otherwise, directly or indirectly, enter the employ of, continue any employment with or render any services to or for, any Competitor, or (C) knowingly performs or has performed any act that may confer a competitive benefit or
advantage upon any Competitor (in each case as determined by the Administrator); or 
 (ii)     the Participant is
Terminated for Cause. 
 19.    Certain Transfer Restrictions, Repurchase Rights and Similar Matters.  
 (a)    In connection with the grant, vesting, and/or exercise of any
Award, the Administrator may require a Participant to execute and become a party to the Shareholders’ Agreement (as amended from time to time, the “Shareholders’ Agreement”), among the Company and other parties thereto as
a condition of such grant, vesting, and/or exercise of any Award by executing and delivering to the Company the Shareholders’ Agreement. To the extent that there is any conflict between the terms of the Plan and the Shareholders’
Agreement, the Shareholders’ Agreement shall govern and control. 
 (b)    Any Shares issued upon the exercise of
or in settlement of an Award shall be subject to such special forfeiture conditions, rights of repurchase or redemption, rights of first refusal, and other transfer restrictions as set forth in the Shareholders’ Agreement or, if there is no
Shareholders’ Agreement or such provisions do not exist in the Shareholders’ Agreement, as the Administrator may determine as set forth in an Award Agreement (which restrictions shall apply in addition to any restrictions that may apply to
holders of Shares generally). 
 20.    Governing Law. 

This Plan shall be governed by the laws of the Cayman Islands. 

  
 22 

 * * * * * 

I hereby certify that the foregoing Plan was duly adopted by the Board on January 31, 2019. 

Executed on this 31th day of January, 2019. 
  

	
	      

	Chairman of the Board

  
 23

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