Document:

EX-10.12

 Exhibit 10.12 

Execution Version 

SHARE PURCHASE AGREEMENT 

THIS SHARE PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of March 23, 2018, by and among: 

 

	1.	Cango Inc., a company incorporated under the Laws of the Cayman Islands (the “Company”), 

  

	2.	Cango Group Limited, a company incorporated under the Laws of Hong Kong (the “HK Company”), 

  

	3.	Can Gu Long (Shanghai) Information Technology Consulting Services Co., Ltd.
(灿谷隆(上海)信息科技咨询服务有限公司), a
wholly foreign-owned enterprise incorporated under the Laws of the PRC (the “WFOE”), 

  

	4.	Shanghai Cango Investment and Management Consultation Service Co., Ltd.
(上海灿谷投资管理咨询服务有限公司), a limited liability company incorporated under the Laws of the PRC (the
“Domestic Company”), 

  

	5.	each of the individuals and their respective holding companies owned by such individual listed on Schedule I attached hereto (each such individual, the “Principal” and collectively, the
“Principals”, each such holding company, the “Principal Holding Company” and collectively, the “Principal Holding Companies”), 

 

	6.	Huaiyuan L.P., a limited partnership incorporated under the Laws of British Virgin Islands, 

  

	7.	Minghuai L.P., a limited partnership incorporated under the Laws of British Virgin Islands, 

  

	8.	Xiehuai L.P., a limited partnership incorporated under the Laws of British Virgin Islands (together with Huaiyuan L.P. and Minghuai L.P., each, a “Partnership” and collectively, the
“Partnerships”), and 

  

	9.	each Person listed on Schedule II hereto (each, an “Investor”, and collectively, the “Investors”). 

Each of the parties listed above is referred to herein individually as a “Party” and collectively as the
“Parties”. 
 RECITALS 
  

	A.	The shareholders of the Domestic Company intend to conduct certain restructurings pursuant to the Restructuring Plan such that the Company will effectively Control all the economic interests and voting rights in the
Domestic Company. 

  

	B.	The Parties contemplate that upon the completion of the Restructuring Plan the ownership structure of the Group Companies shall be as follows: (i) the Company owns 100% of the equity interest in the HK Company; and
(ii) the HK Company owns 100% of the equity interest in the WFOE, which in turn Controls the Domestic Company by a Captive Structure. 

  

					
		 		 	Share Purchase Agreement

	C.	The Investors wish to invest in the Company by subscribing for certain number of Series A-1 Preferred Shares, Series A-2 Preferred Shares, Series
A-3 Preferred Shares or Series B Preferred Shares respectively at the Closing pursuant to the terms and subject to the conditions of this Agreement. 

 

	D.	The Company wishes to issue, allot and sell certain number of Series A-1 Preferred Shares, Series A-2 Preferred Shares, Series A-3
Preferred Shares and Series B Preferred Shares at the Closing pursuant to the terms and subject to the conditions of this Agreement. 

  

	E.	The Parties desire to enter into this Agreement and make the respective representations, warranties, covenants and agreements set forth herein on the terms and conditions set forth herein. 

WITNESSETH 
 NOW,
THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties intending to be legally bound
hereto hereby agree as follows: 
  

	1.	Definitions. 

  

	 	1.1	The following terms shall have the meanings ascribed to them below: 

“Accounting Standards” means generally accepted accounting principles in the United States or PRC, as
applicable, applied on a consistent basis.  
 “Action” means any charge, claim, action,
complaint, petition, investigation, appeal, suit, litigation, grievance, inquiry or other proceeding, whether administrative, civil, regulatory or criminal, whether at law or in equity, or otherwise under any applicable Law, and whether or not
before any mediator, arbitrator or Governmental Authority. 
 “Affiliate” means, with respect to a Person,
any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with such Person. In the case of an individual, the term “Affiliate” also includes the Immediate Family Members of such individual, and in
the case of an Investor, the term “Affiliate” also includes (a) any shareholder of the Investor, (b) any of the shareholders’ or the Investor’s general partners or limited partners, (c) the fund manager managing
such shareholder or Investor (and general partners, limited partners and officers thereof) and other funds managed by such fund manager, (d) trusts Controlled by or for the benefit of any such Person referred to in (a), (b) or (c). 

“Boyu” means Harmonic Century Limited. 

“Board” or “Board of Directors” means the board of directors of the Company. 

“Business” means business in relation to automotive financing facilitation, automotive transaction
facilitation and aftermarket service facilitation. 

  

					
		 	2	 	Share Purchase Agreement

 “Business Day” means any day that is not a Saturday,
Sunday, legal holiday or other day on which commercial banks are required or authorized by law to be closed in the Hong Kong, the PRC, Singapore or the United States. 

“Captive Structure” means the structure under which the WFOE Controls the Domestic Company through the Control
Documents. 
 “Charter Documents” means, with respect to a particular legal entity, the articles of
incorporation, certificate of incorporation, formation or registration (including, if applicable, certificates of change of name), memorandum of association, articles of association, bylaws, articles of organization, limited liability company
agreement, trust deed, trust instrument, operating agreement, joint venture agreement, business license, or similar or other constitutive, governing, or charter documents, or equivalent documents, of such entity. 

“Cinda” means Harbourside 1712 Limited. 

“CIRC” shall mean the China Insurance Regulatory Commission. 

“Circular 37” means the Circular on Relevant Issues Concerning Foreign Exchange Administration for Domestic
Residents to Engage in Overseas Investment, Financing and Round Trip Investment via Special Purpose Companies issued by SAFE on July 14, 2014, as amended from time to time. 

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

“Consent” means any consent, approval, authorization, release, waiver, permit, grant, franchise, concession,
agreement, license, exemption or order of, registration, certificate, declaration or filing with, or report or notice to, any Person, including any Governmental Authority. 

“Contract” means, a contract, agreement, understanding, indenture, note, bond, loan, instrument, lease,
mortgage, franchise, license, commitment, purchase order, and other legally binding arrangement, whether written or oral. 

“Control” of a given Person means the power or authority, whether exercised or not, to direct the business,
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by Contract or otherwise. The terms “Controlled” and “Controlling” have meanings correlative to the
foregoing. 
 “Control Documents” means the following contracts collectively: (i) Exclusive Business
Cooperation Agreements (独家业务合作协议) to be entered into by and between the
WFOE and the Domestic Company, (ii) Exclusive Option Agreements (独家购买权合同) to be entered into by and among the WFOE, the Domestic Company and each equity holder of the Domestic Company, (iii) Power of Attorneys (授权委托书) to be entered into by and between the WFOE and each equity holder of the Domestic Company,
(iv) Share Pledge Agreements (股权质押协议) to be entered into by and among the
WFOE, the Domestic Company and each equity holder of the Domestic Company, and (v) Spousal Consent issued by the spouse of each Principal. 

  

					
		 	3	 	Share Purchase Agreement

 “Conversion Shares” means Ordinary Shares issuable upon
conversion of any Series A-1 Preferred Shares, Series A-2 Preferred Shares, Series A-3 Preferred Shares, and Series B Preferred Shares. 

“Didi” means Links Advance Holdings Limited. 

“Equity Securities” means, with respect to any Person that is a legal entity, any and all shares of capital
stock, membership interests, units, profits interests, ownership interests, equity interests, registered capital, and other equity securities of such Person, and any right, warrant, option, call, commitment, conversion privilege, preemptive right or
other right to acquire any of the foregoing, or security convertible into, exchangeable or exercisable for any of the foregoing, or any Contract providing for the acquisition of any of the foregoing. 

“ESOP” has the meaning given to such term in the Shareholders Agreement. 

“Governmental Authority” means any government of any nation or any federation, province or state or any other
political subdivision thereof, any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government authority, agency, department, board,
commission or instrumentality of the PRC or any other country, or any political subdivision thereof, any court, tribunal or arbitrator, and any self-regulatory organization. 

“Governmental Order” means any applicable order, ruling, decision, verdict, decree, writ, subpoena, mandate,
precept, command, directive, consent, approval, award, judgment, injunction or other similar determination or finding by, before or under the supervision of any Governmental Authority. 

  

					
		 	4	 	Share Purchase Agreement

 “Group Companies” means, collectively, the Company, the HK
Company, the WFOE, the Domestic Company, Shanghai Wangjin Financial Information Services Co., Ltd.
(上海网金金融信息服务有限公司), Shanghai
Can Gu Electronic Technology Co., Ltd. (上海灿谷电子科技有限公司), Shanghai Can Gu Automobile Sale Services Co., Ltd.
(上海灿谷汽车销售服务有限公司),
Shanghai Youcheyoujia Financial Leasing Co., Ltd. (上海有车有家融资租赁有限公司) (“Youcheyoujia”), Beijing Can Gu Automobile Consultancy Services Co., Ltd.
(北京灿谷汽车咨询服务有限公司),
Sichuan Xintongda Automobile Services Co., Ltd. (四川鑫通达汽车服务有限公司), Tianjin Changtong Automobile Rental Co., Ltd.
(天津昌通汽车租赁有限公司), Hubei Huaitai
Automobile Consultancy Services Co., Ltd. (湖北省怀泰汽车咨询服务有限公司), Shanxi Huirui Automobile Consultancy Services Co., Ltd.
(山西汇瑞汽车咨询服务有限公司),
Shandong Huaitong Automobile Consultancy Services Co., Ltd. (山东怀通汽车咨询服务有限公司), Jiangsu Tongyuan Automobile Consultancy Services Co., Ltd.
(江苏通元汽车咨询服务有限公司),
Guangxi Canyuan Automobile Consultancy Co., Ltd. (广西灿源汽车咨询服务有限公司), Hebei Jiahui Consultancy Services Co., Ltd.
(河北佳辉咨询服务有限公司), Fujian Changhui
Automobile Services Co., Ltd. (福建昌汇汽车服务有限公司), Shanghai Huixie Automobile Services Co., Ltd.
(上海汇协汽车服务有限公司), Nanjing Canyuan
Automobile Services Co., Ltd. (南京灿元汽车服务有限公司), Guangxi Nanning Can Gu Automobile Consultancy Services Co., Ltd.
(广西南宁灿谷汽车咨询服务有限公司), Shijiazhuang Can Gu Automobile Rental Co., Ltd.
(石家庄灿谷汽车租赁有限公司), Guizhou Can
Gu Automobile Services Co., Ltd. (贵州灿谷汽车服务有限公司), Shenyang Can Gu Automobile Information Consultancy Co., Ltd.
(沈阳灿谷汽车信息咨询有限公司), Xian
Can Gu Automobile Consultancy Co., Ltd. (西安灿谷汽车咨询服务有限公司), Chengdu Can Gu Automobile Services Co., Ltd.
(成都灿谷汽车服务有限公司), Kunming Can Gu
Automobile Information Consultancy Services Co., Ltd.
(昆明灿谷汽车信息咨询服务有限公司), Changsha Can Gu Automobile Services Co., Ltd.
(长沙灿谷汽车服务有限公司), Hefei Can Gu
Automobile Services Co., Ltd. (合肥灿谷汽车服务有限公司), Guangzhou Can Gu Automobile Information Consultancy Services Co., Ltd.
(广州灿谷汽车信息咨询服务有限公司), Heilongjiang Can Gu Automobile Information Consultancy Services Co., Ltd.
(黑龙江灿谷汽车信息咨询有限公司),
 Jiangxi Can Gu Automobile Consultancy Services Co., Ltd. (江西灿谷汽车咨询服务有限公司), Henan Can Gu Automobile Services Co., Ltd.
(河南灿谷汽车服务有限公司), Shanghai Wangtian
Investment Co., Ltd. (上海网天投资有限公司), together with
each Subsidiary of the Company, and “Group Company” refers to any of the Group Companies. For avoidance of any doubt, in any event the term Group Companies or Group Company shall not include Liaoning Junan Automotive Consulting Co.,
Ltd. (辽宁君安汽车咨询服务有限公司).

 “Haitong” means Haitong International Investment Holdings Limited. 

“Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China. 

“Immediate Family Member” has the meaning given to such term in the Memorandum and Articles. 

“Intellectual Property” means any and all (i) patents, patent rights and applications therefor and
reissues, reexaminations, continuations, continuations-in-part, divisions, and patent term extensions thereof, (ii) inventions (whether patentable or not),
discoveries, improvements, concepts, innovations and industrial models, (iii) registered and unregistered copyrights, copyright registrations and applications, mask works and registrations and applications therefor, author’s rights and
works of authorship (including artwork, software, computer programs, source code, object code and executable code, firmware, development tools, files, records and data, and related documentation), (iv) URLs, web sites, web pages and any part
thereof, (v) technical information, know-how, trade secrets, drawings, designs, design protocols, specifications, proprietary data, customer lists, databases, proprietary processes, technology, formulae,
and algorithms and other intellectual property, (vi) trade names, trade dress, trademarks, domain names, service marks, logos, business names, and registrations and applications therefor, and (vii) the goodwill symbolized or represented by
the foregoing. 
 “Indemnifiable Loss” means, with respect to any Person, any action, claim, cost, damage,
deficiency, diminution in value of any Group Company, disbursement, expense, liability, loss, obligation, penalty or settlement of any kind or nature imposed on or otherwise incurred or suffered by such Person, including without limitation,
reasonable legal, accounting and other professional fees and expenses. 

  

					
		 	5	 	Share Purchase Agreement

 “Investor Affiliates” means Series A-1 Investor Affiliate, Series A-2 Investor Affiliate, Series A-3 Investor Affiliate and Series B Investor Affiliates. 

“Law” or “Laws” means any and all provisions of any applicable constitution, treaty, statute,
law, regulation, ordinance, code, rule, or rule of common law, any governmental approval, concession, grant, franchise, license, agreement, directive, requirement, or other governmental restriction or any similar form of decision of, or
determination by, or any interpretation or administration of any of the foregoing by, any Governmental Authority, in each case as amended, and any and all applicable Governmental Orders. 

“Liabilities” or “Liability” means, with respect to any Person, all liabilities, obligations
and commitments of such Person of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due. 

“Lien” means any claim, charge, easement, encumbrance, lease, covenant, security interest, lien, option,
pledge, rights of others, or restriction (whether on voting, sale, transfer, disposition or otherwise), whether imposed by Contract, understanding, Law, equity or otherwise. 

“Memorandum and Articles” means the amended and restated memorandum of association of the Company and the
amended and restated articles of association of the Company attached hereto as Exhibit A-1 and Exhibit A-2, respectively, to be adopted in accordance with
the Companies Law (2016 Revision) of the Cayman Islands, as each may be amended and/or restated from time to time. 

“Ordinary Shares” means the Company’s Ordinary Shares, par value US$0.0001 per share. 

“Onshore Equity Transfer Agreement” means the Equity Transfer Agreement entered into among Mr. Lin
Jiayuan (林佳元), Shanghai Wangjin Investment Management Co., Ltd. (上海网金投资管理有限公司), Boyu III (Shanghai) Equity
Investment Partnership L.P. (博裕三期(上海)股权投资合伙企业
(有限合伙)) and Haitong
International Investment Holdings Limited dated as of January 24, 2018. 
 “Person” means any
individual, corporation, partnership, limited partnership, proprietorship, association, limited liability company, firm, joint venture, trust, estate, unincorporated organization, Governmental Authority or other enterprise or entity. 

“PRC” means the People’s Republic of China, but solely for the purposes of this Agreement and the other
Transaction Documents, excluding Hong Kong, the Macau Special Administrative Region and Taiwan. 
 “PRC
Companies” means, collectively, the Domestic Company and the WFOE, together with each Subsidiary of any of the foregoing in the PRC. 

“Preferred Shares” means collectively, the Series A Preferred Shares and the Series B Preferred Shares of the
Company. 

  

					
		 	6	 	Share Purchase Agreement

 “PV Onshore Subscription Agreement” means the Share Subscription
Agreement entered into among the Series A-3 Investor Affiliate, the Principals, the Domestic Company and other parties thereto dated as of July 21, 2017 as supplemented or amended from time to time. 

“Restructuring Plan” means the plan to restructure the Group Companies such that the Company will effectively
Control the Business and receive all economic and voting rights in all Group Companies (other than the Company) through the contractual arrangements under the Control Documents, which and any amendment thereto shall be agreed and confirmed by the
Investors and the Principals. 
 “Right of First Refusal &
Co-Sale Agreement” means the Right of First Refusal and Co-Sale Agreement to be entered into by and among the parties named therein on or prior to the Closing,
which shall be in the form attached hereto as Exhibit B. 
 “SAFE” means the State Administration of
Foreign Exchange of the PRC. 
 “SAFE Rules and Regulations” means collectively, Circular 37 and any other
applicable SAFE rules and regulations. 
 “SAIC” means the State Administration of Industry and Commerce of
the PRC or, with respect to the issuance of any business license or filing or registration to be effected by or with the State Administration of Industry and Commerce, any Governmental Authority which is similarly competent to issue such business
license or accept such filing or registration under the Laws of the PRC. 
 “Securities Act” means the U.S.
Securities Act of 1933, as amended and interpreted from time to time. 
 “Series A Preferred Shares” means
collectively, Series A-1 Preferred Shares, Series A-2 Preferred Shares and Series A-3 Preferred Shares of the Company. 

“Series A Investors” means Series A-1 Investor, Series A-2 Investor and Series A-3 Investor. 

“Series A-1 Preferred Shares” means Series A-1 Preferred Shares of the Company, par value US$0.0001 per share, with the rights and privileges as set forth in the Memorandum and Articles and the other Transaction Documents. 

“Series A-1 Investor” means Warburg Pincus Cango Fintech Investment
Company Limited. 
 “Series A-1 Investor Affiliate” means the
applicable entity as set forth in the Schedule II of this Agreement. 
 “Series
A-2 Preferred Shares” means Series A-2 Preferred Shares of the Company, par value US$0.0001 per share, with the rights and privileges as set forth in the
Memorandum and Articles and the other Transaction Documents. 
 “Series A-2
Investor” means PV Peacock Limited . 
 “Series A-2 Investor Affiliate” means the applicable entity
as set forth in the Schedule II of this Agreement. 

  

					
		 	7	 	Share Purchase Agreement

 “Series A-3 Preferred Shares” means Series A-3 Preferred Shares
of the Company, par value US$0.0001 per share, with the rights and privileges as set forth in the Memorandum and Articles and the other Transaction Documents. 

“Series A-3 Investor” means Zodiac One Limited. 

“Series A-3 Investor Affiliate” means the applicable entity as set forth in the Schedule II of this
Agreement. 
 “Series B Onshore Subscription Agreement” means the Share Subscription Agreement
entered into among the Series B Investor Affiliates other than Taikang Life Insurance Co., Ltd. (泰康人寿保险有限公司) and Shandong State-controlled Taikang Phase I Industrial Development Fund Partnership Enterprise (Limited Partnership)
(山东国控泰康一期产业发展基金合伙企业(有限合伙)
), the Principals, the Domestic Company and other parties thereto dated as of January 24, 2018, as supplemented or amended from time to time. 

“Series B Preferred Shares” means Series B Preferred Shares of the Company, par value US$0.0001 per share,
with the rights and privileges as set forth in the Memorandum and Articles and other Transaction Documents. 

“Series B Investors” means the applicable entities as set forth in the Schedule II of this Agreement.

 “Series B Investor Affiliates” means the applicable entities as set forth in the Schedule II of
this Agreement. 
 “Shareholders Agreement” means the Shareholders Agreement to be entered into by and among
the parties named therein on or prior to the Closing, which shall be in the form attached hereto as Exhibit C. 

“SOE Regulations” means any and all Laws that applicable to an entity directly or indirectly owned or invested
by any Governmental Authority in the PRC, which shall include without being limited to the Measures for the Supervision and Administration of the Transactions of State-Owned Assets of Enterprises issued by the PRC State Council and the PRC Ministry
of Finance on June 24, 2016. 
 “Subsidiary” means, with respect to any given Person, any other Person
that is Controlled directly or indirectly by such given Person. 
 “Taikang” means Magic Spark Inc. and TK
Autolink Inc.. 
 “Tencent” means Tencent Mobility Limited. 

“TK Onshore Subscription Agreement” means the Share Subscription Agreement entered into among Taikang Life
Insurance Co., Ltd. (泰康人寿保险有限公司) and Shandong
State-controlled Taikang Phase I Industrial Development Fund Partnership Enterprise (Limited Partnership)
(山东国控泰康一期产业发展基金合伙企业(有限合伙)
), the Principals, the Domestic Company and other parties thereto dated as of December 26, 2017, as supplemented or amended from time to time. 

  

					
		 	8	 	Share Purchase Agreement

 “Transaction Documents” means this Agreement, the Shareholders
Agreement, the Right of First Refusal & Co-Sale Agreement, the Memorandum and Articles, the Control Documents and each of the other agreements and documents otherwise required in connection with
implementing the transactions contemplated by any of the foregoing. 
 “WP Onshore Subscription Agreement”
means the Share Subscription Agreement entered into among Warburg Pincus Financial Global Ltd , the Principals, the Domestic Company and other parties thereto dated as of March 21, 2017, as supplemented or amended from time to time. 

“Warrantors” means, collectively, the Group Companies, the Principals and the Principal Holding Companies.

  

	 	1.2	Other Defined Terms. The following terms shall have the meanings defined for such terms in the Sections set forth below: 

 

			
	Agreement	  	Preamble
	Arbitration Notice	  	Section 7.5(i)
	Business	  	Recitals
	Closing	  	Section 2.2(i)
	Company	  	Preamble
	Confidential Information	  	Section 7.12(i)
	Disclosing Party	  	Section 7.12(iii)
	Disclosure Schedule	  	Section 3
	Dispute	  	Section 7.5(i)
	Domestic Company	  	Preamble
	ESOP Shares	  	Section 3.2(i)
	HK Company	  	Preamble
	HKIAC	  	Section 7.5 (ii)
	HKIAC Rules	  	Section 7.5 (ii)
	Hong Kong	  	Section 7.4
	Indemnification Agreement	  	Section 5(g)
	Indemnified Party	  	Section 7.8(iv)
	Indemnifying Party	  	Section 7.8(iv)
	Investor/Investors	  	Preamble
	Onshore Subscription Agreements	  	Section 7.10
	Partnership(s)	  	Preamble
	Party/Parties	  	Preamble
	Principal(s)	  	Preamble
	Principal Holding Company(ies)	  	Preamble
	SEC	  	Section 4.1(f)
	WFOE	  	Preamble

 2. Purchase, Allotment and Sale of Shares. 
  

	 	2.1	Sale, allotment and Issuance of the Preferred Shares.  

 (i) Subject to the
terms and conditions of this Agreement, at the Closing (as defined below), in consideration of the Series A-1 Investor Affiliate’s execution of the Control Documents, the Company agrees to issue and sell
to the Series A-1 Investor, that number of Series A-1 Preferred Shares set forth opposite the Series A-1 Investor’s name on
Schedule II attached hereto. 

  

					
		 	9	 	Share Purchase Agreement

 (ii) Subject to the terms and conditions of this Agreement, at the Closing, in consideration of
the Series A-2 Investor Affiliate’s execution of the Control Documents, the Company agrees to issue and sell to the Series A-2 Investor, that number of Series A-2 Preferred Shares set forth opposite the Series A-2 Investor’s name on Schedule II attached hereto. 

(iii) Subject to the terms and conditions of this Agreement, at the Closing, in consideration of the Series A-3 Investor Affiliate’s
execution of the Control Documents, the Company agrees to issue and sell to the Series A-3 Investor, that number of Series A-3 Preferred Shares set forth opposite the Series A-3 Investor’s name on Schedule II attached hereto. 

(iv) Subject to the terms and conditions of this Agreement, at the Closing, in consideration of each Series B Investor Affiliate’s
execution of the Control Documents, the Company agrees to issue and sell to the respective Series B Investor, that number of Series B Preferred Shares set forth opposite such Series B Investor’s name on Schedule II attached hereto. 

 

	 	2.2	Closing 

 (i) Closing. The consummation of the sale, allotment and issuance of
the Preferred Shares pursuant to Section 2.1 (the “Closing”) shall take place remotely via the exchange of documents and signatures as soon as practicable after all closing conditions specified in
Section 5 hereof have been satisfied or otherwise waived, or at such other time and place as the Company and the Investors shall mutually agree in writing. The Company’s shareholding structure immediately after the
Closing (reflecting all outstanding and issued Equity Securities of the Company) shall be as set forth in the Company’s capitalization table attached hereto as Schedule III. 

(ii) Deliveries by the Company at Closing. At the Closing, the Company shall deliver to each Investor (x) the updated register of
members of the Company, certified by the registered agent of the Company, reflecting the issuance to each Investor of the applicable Preferred Shares being purchased by such Investor at the Closing pursuant to Section 2.1,
(y) the updated register of directors of the Company, certified by the registered agent of the Company, evidencing the appointment of the directors as contemplated by Section 5(h) hereof, and (z) the duly executed
share certificate or certificates issued in the name of such Investor representing the applicable Preferred Shares being issued to such Investor at the Closing. 

(iii) Deliveries by the Investors at Closing. At the Closing, subject to the satisfaction or waiver of all the conditions set forth in
Section 5 below, each Investor shall (or procure its respective Investor Affiliate to), severally and not jointly, execute and deliver to the Company the Control Documents to which it is a party. 

  

					
		 	10	 	Share Purchase Agreement

 3. Representations and Warranties of the Warrantors. Subject to such exceptions as may be
specifically set forth in the disclosure schedule delivered by the Warrantors to the Investors as of the date hereof (the “Disclosure Schedule”, attached hereto as Exhibit D), each of the Warrantors jointly and severally
represents and warrants to the Investors that, each of the statements contained in this Section 3 is true, correct and complete as of the date of this Agreement, and that each of such statements and information shall be
true, correct and complete on and as of the date of the Closing, with the same effect as if made on and as of the date of the Closing. 

3.1 Organization, Good Standing and Qualification. Each Group Company is duly organized, validly existing and in good standing
(or equivalent status in the relevant jurisdiction) under, and by virtue of, the Laws of the place of its incorporation or establishment and has all requisite power and authority to own its properties and assets and to carry on its business as now
conducted and as proposed to be conducted, and to perform each of its obligations under the Transaction Documents to which it is a party. Each Group Company is qualified to do business and is in good standing (or equivalent status in the relevant
jurisdiction) in each jurisdiction. Each Group Company that is a PRC entity has a valid business license issued by the SAIC or its local branch or other relevant Government Authorities (a true and complete copy of which has been delivered to the
Investors), and has, since its establishment, carried on its business in compliance with the business scope set forth in its business license. 
  

	 	3.2	Capitalization and Voting Rights. 

 (i) Company. The authorized share capital of
the Company is and immediately prior to the Closing shall be US$50,000 divided into (a) a total of 500,000,000 authorized Ordinary Shares, 372,138,271 of which have been designated as “Ordinary Shares”, 120,126,900 of which are issued
and outstanding immediately prior to the Closing, and 27,845,526 “Ordinary Shares” (“ESOP Shares”) have been reserved for issuance to officers, directors, employees, consultants or service providers of the Company pursuant
to the ESOP, and the Company’s shareholding structure immediately after the reservation of ESOP Shares shall be as set forth in the Company’s capitalization table attached hereto as Schedule IV, (b) a total of 53,431,125
authorized Series A-1 Preferred Shares, none of which are issued and outstanding immediately prior to the Closing, (c) a total of 2,179,215 authorized Series A-2
Preferred Shares, none of which are issued and outstanding immediately prior to the Closing, (d) a total of 10,308,663 authorized Series A-3 Preferred Shares, none of which are issued and outstanding immediately prior to the Closing, and
(e) a total of 61,942,726 authorized Series B Preferred Shares, none of which are issued and outstanding immediately prior to the Closing. Section 3.2(i) of the Disclosure Schedule sets forth the capitalization table
of each Group Company immediately prior to the Closing and immediately after the Closing, in each case reflecting all then outstanding and issued Equity Securities of such Group Company, the record and beneficial holders thereof. 

(ii) HK Company. 10,000 ordinary shares of the HK Company are issued and outstanding and held by the Company. The Company is the sole
record and beneficial owner of such shares. 
 (iii) WFOE. The registered capital of the WFOE is set forth opposite its name on
Section 3.2(i) of the Disclosure Schedule, and the HK Company is the sole record and beneficial owner of such registered capital. 

(iv) Domestic Company. The registered capital of the Domestic Company is set forth opposite its name on
Section 3.2(i) of the Disclosure Schedule, together with an accurate and complete list of the record and beneficial owners of such registered capital. 

  

					
		 	11	 	Share Purchase Agreement

 (v) No Other Securities. Except for (a) the conversion privileges of the Preferred
Shares, (b) certain rights provided in the Transaction Documents from and after the Closing, and (c) the outstanding Equity Securities set forth in Section 3.2(i) of the Disclosure Schedule, (1) there are no
and at the Closing there shall be no other authorized or outstanding Equity Securities of any Group Company, (2) no Equity Securities of any Group Company are subject to any preemptive rights, rights of first refusal (except to the extent
provided by applicable PRC Laws) or other rights to purchase such Equity Securities or any other rights with respect to such Equity Securities, and (3) no Group Company is a party or subject to any Contract that affects or relates to the voting
or giving of written consents with respect to, or the right to cause the redemption, or repurchase of, any Equity Security of such Group Company. Except as set forth in the Shareholders Agreement (from and after the Closing), the Company has not
granted any registration rights or information rights to any other Person, nor is the Company obliged to list any of the Equity Securities of any Group Companies on any securities exchange. Except as contemplated under the Transaction Documents or
as disclosed in Section 3.2(v) of the Disclosure Schedule, there are no voting or similar agreements which relate to the share capital or registered capital of any Group Company. 

(vi) Issuance and Status. All presently outstanding Equity Securities of each Group Company were duly and validly issued (or subscribed
for) in compliance with all applicable Laws, preemptive rights of any Person, and applicable Contracts. All share capital or registered capital, as the case may be, of each Group Company have been duly and validly issued, are fully paid (or
subscribed for) pursuant to its Charter Documents and nonassessable, and as of the Closing shall be free of any and all Liens (except for any restrictions on transfer under the Transaction Documents and applicable Laws). Except as contemplated under
the Transaction Documents, there are no (a) resolutions pending to increase the share capital or registered capital of any Group Company or cause the liquidation, winding up, or dissolution of any Group Company, nor has any distress, execution
or other process been levied against any Group Company, (b) dividends which have accrued or been declared but are unpaid by any Group Company, (c) obligations, contingent or otherwise, of any Group Company to repurchase, redeem, or
otherwise acquire any Equity Securities, or (d) outstanding or authorized equity appreciation, phantom equity, equity plans or similar rights with respect to any Group Company. All dividends (if any) or distributions (if any) declared, made or
paid by each Group Company, and all repurchases and redemptions of Equity Securities of each Group Company (if any), have been declared, made, paid, repurchased or redeemed, as applicable, in accordance with its Charter Documents and all applicable
Laws. 
 (vii) Title. Each Group Company is the sole record and beneficial holder of all of the Equity Securities set forth opposite
its name on Section 3.2(i) of the Disclosure Schedule, free and clear of all Liens of any kind other than those arising under applicable Laws. 

3.3 Corporate Structure; Subsidiaries. Section 3.3 of the Disclosure Schedule sets forth a complete
structure chart showing all Group Companies and indicating the ownership and Control relationships among all Group Companies, the nature of the legal entity which each Group Company constitutes, and the jurisdiction in which each Group Company is
organized. No Group Company owns or Controls, or has ever owned or Controlled, directly or indirectly, any Equity Security, interest or share in any other Person or is or was a participant in any joint venture, partnership or similar arrangement,
except as disclosed in Section 3.3 of the Disclosure Schedule. No Group Company is obligated to make any investment in or capital contribution in or on behalf of any other Person. The Company was formed solely to hold the
equity interests in the HK Company and the HK Company was formed solely to hold the equity interests in the WFOE. Neither the Company nor the HK Company has engaged in any other business and has not incurred any Liability, other than those incurred
during the ordinary course of their formation and maintenance, since its formation. The Domestic Company and the WFOE are engaged in the Business as set forth in the Recitals and has no other business. Neither the Principals, the Principal Holding
Companies nor any Person Controlled by the Principals or the Principal Holding Companies (other than a Group Company), is engaged in the Business or has any assets in relation to the Business (other than through an advisory, employment or consulting
relationship with a Group Company) or any Contract with any Group Company, except as disclosed in Section 3.3 of the Disclosure Schedule. 

  

					
		 	12	 	Share Purchase Agreement

 3.4 Authorization. Each Warrantor has all requisite power and authority to execute
and deliver the Transaction Documents to which such Warrantor is a party and to carry out and perform such Warrantor’s obligations thereunder. All actions on the part of each party to the Transaction Documents (other than the Investors) (and,
as applicable, its officers, directors and shareholders) that are necessary for the authorization, execution and delivery of the Transaction Documents, the performance of all obligations of each such party, and, in the case of the Company, the
authorization, issuance (or reservation for issuance), allotment, and sale of the Preferred Shares and the Conversion Shares, have been taken or will be taken on or prior to the Closing. Each Transaction Document shall have been duly executed and
delivered on or prior to the Closing by each party thereto (other than the Investors) and constitutes valid and legally binding obligations of such party, enforceable against such party in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other Laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by Laws relating to the availability of
specific performance, injunctive relief, or other equitable remedies. 
 3.5 Valid Issuance of Shares. The Preferred Shares,
when issued, delivered and paid for in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and non-assessable, free from any Liens
(except for any restrictions on transfer under applicable Laws and under the Transaction Documents). The Conversion Shares have been reserved for issuance and, upon issuance in accordance with the terms of the Memorandum and Articles, will be duly
and validly issued, fully paid and non-assessable, free from any Liens (except for any restrictions on transfer under applicable securities Laws and under the Transaction Documents). The issuance of the
Preferred Shares and the Conversion Shares is not and will not be subject to any preemptive rights, rights of first refusal or similar rights other than those set forth in the Transaction Documents. 

3.6 Offering. Subject to the qualifications of the applicable shareholders as required by the Securities Act and any
other applicable securities Laws, the offer, sale, allotment and issuance of the Preferred Shares are, and the issuance of the Conversion Shares will be, exempt from the registration and prospectus delivery requirements of such Securities Act and
applicable securities Laws. 
 3.7 No Brokers. Except as disclosed in Section 3.7 of the Disclosure
Schedule, neither any Group Company nor any of its Affiliates has any Contract with any broker, finder or similar agent with respect to the transactions contemplated by this Agreement or by any of the Transaction Documents, or has incurred any
Liability for any brokerage fees, agents’ fees, commissions or finders’ fees in connection with any of the Transaction Documents or the consummation of the transactions contemplated therein. 

  

					
		 	13	 	Share Purchase Agreement

 3.8 No General Solicitation. Neither any Group Company, nor any of its officers,
directors, employees, agents, stockholders or partners has either directly or indirectly, including through a broker or finder (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and
sale of the Preferred Shares. 
 3.9 Captive Structure. The Control Documents, in the aggregate intended to establish and
maintain a Captive Structure through which the WFOE controls the Domestic Company, upon execution and delivery by the parties thereto, will constitute valid and binding obligations of the parties thereto enforceable in accordance with their
respective terms and adequate to establish and maintain the intended Captive Structure, under which the financial statements of the Domestic Company will be consolidated with those of the other Group Companies in accordance with the Accounting
Standards. None of the Warrantors has received any oral or written inquiries, notifications or any other form of official correspondence from any Governmental Authorities challenging or questioning the legality or enforceability of any of the
Control Documents. 
 3.10 Consents and Permits. All consents, permits, approvals, orders, authorizations or registrations,
qualifications, designations, declarations or filings by or with any Governmental Authority and any third party which are required to be obtained or made by each Warrantor in connection with the consummation of the transactions contemplated
hereunder and under the Transaction Documents will have been obtained or made prior to and be in full force and effect as at the Closing. 

3.11 No Conflicts. The execution, delivery and performance of and compliance with the Transaction Documents and the consummation
of the transactions contemplated hereby and thereby will not result in any such violation, breach or default, or be in conflict with or constitute, with or without the passage of time or the giving of notice or both, either a default under any
Warrantor’s Charter Documents or any term or provision of any mortgage, indenture, contract, agreement or instrument to which any Warrantor is a party or by which it may be bound, or, a violation of any statutes, Laws, regulations or orders, or
an event which results in the creation of any lien, charge or encumbrance upon any asset of any Group Company. 
 3.12
Insolvency. Each of the Warrantors (i) is and has been solvent, and (ii) is free from pending bankruptcy, corporate reorganization proceedings, liquidation, or any other insolvency or bankruptcy action or event. 

3.13 Compliance with Other Instruments. None of the Warrantors is in violation or default of any provisions of its respective
Charter Documents, or of any instrument, judgment, order, writ, or decree, or under any note, indenture, mortgage, lease, agreement, contract or purchase order to which it is a party or by which it is bound, or any applicable Laws. 

 

	4.	Representations and Warranties of the Investors and the Partnerships. 

 4.1 Each
Investor hereby represents and warrants to the Company, severally and not jointly, that as of the date of this Agreement and as of the date of the Closing: 

(a) Organization, Good Standing and Qualification. Such Investor is duly organized, validly existing and in good standing (or
equivalent status in the relevant jurisdiction) under, and by virtue of, the Laws of the place of its incorporation or establishment and has all requisite power and authority to own its properties and assets and to carry on its business. 

  

					
		 	14	 	Share Purchase Agreement

 (b) Authorization. Such Investor has all requisite power and authority to execute
and deliver the Transaction Documents to which it is a party and to carry out and perform its obligations thereunder. All actions on the part of such Investor that are necessary for the authorization, execution and delivery of the Transaction
Documents to which it is a party, have been taken or will be taken prior to the Closing. Each Transaction Document has been duly executed and delivered by such Investor (to the extent such Investor is a party), enforceable against such Investor in
accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other Laws of general application affecting enforcement of creditors’ rights generally, and
(ii) as limited by Laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 
 (c)
No Conflicts. The execution, delivery and performance of each Transaction Document to which it is a party by such Investor do not, and the consummation by such Investor of the transactions contemplated hereby and thereby will not,
(a) result in a violation of the Charter Documents of such Investor, (b) conflict with or result in a breach or violation in any statutes, Laws, regulations or orders applicable to such Investor, or (c) conflict with or result in a
breach or violation in, or constitute a default under, any Contract to which such Investor is a party or by which such Investor is bound. 

(d) No Consents. The execution, delivery and performance of each Transaction Document to which it is a party by such Investor is not
subject to any consents, permits, approvals, orders, authorizations or registrations, qualifications, designations, declarations or filings by or with any Governmental Authority or any third party. 

(e) Purchase for Own Account. Unless otherwise disclosed to the Company in writing, the applicable Preferred Shares being
purchased by such Investor and the Conversion Shares thereof will be acquired for such Investor’s own account, not as a nominee or agent, and not with a view to or in connection with the sale or distribution of any part thereof. 

(f) Status of Investor. Such Investor is either (i) an “accredited investor” within the meaning of the U.S. Securities
and Exchange Commission (“SEC”) Rule 501 of Regulation D, as presently in effect, under the Securities Act, or (ii) not a “U.S. person” as defined in Rule 902 of Regulation S of the Securities Act. Such Investor has
the knowledge, sophistication and experience necessary to make an investment decision like that involved in the purchase of the Preferred Shares and can bear the economic risk of its investment in the Preferred Shares. 

(g) Restricted Securities. Such Investor understands that the applicable Preferred Shares and the Conversion Shares are restricted
securities within the meaning of Rule 144 under the Securities Act; that the applicable Preferred Shares and the Conversion Shares are not registered or listed publicly and must be held indefinitely unless they are subsequently registered or listed
publicly or an exemption from such registration or listing is available. 
 (h) Non State-owned. Such Investor is not a PRC
state-owned enterprise as defined in any SOE Regulations and is not subject to any SOE Regulations, except in the case of Cinda and Boyu, the execution of the Transaction Documents to which Cinda or Boyu is a party, the consummation of the
transactions contemplated hereby and thereby and any disposal of Cinda or Boyu’s interests in the Company is not or will not be subject to any SOE Regulations. 

  

					
		 	15	 	Share Purchase Agreement

 4.2 Each Partnership hereby represents and warrants to the Investors, severally and not
jointly, that: 
 (a) Organization, Good Standing and Qualification. Such Partnership is duly organized, validly existing and in good
standing (or equivalent status in the relevant jurisdiction) under, and by virtue of, the Laws of the place of its incorporation or establishment and has all requisite power and authority to own its properties and assets and to carry on its
business. 
 (b) Authorization. Such Partnership has all requisite power and authority to execute and deliver the Transaction
Documents to which it is a party and to carry out and perform its obligations thereunder. All actions on the part of such Partnership that are necessary for the authorization, execution and delivery of the Transaction Documents to which it is a
party, have been taken or will be taken prior to the Closing. Each Transaction Document has been duly executed and delivered by such Partnership (to the extent such Partnership is a party), enforceable against such Partnership in accordance with its
terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other Laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by
Laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 
 (c) Consents and
Permits. All consents, permits, approvals, orders, authorizations or registrations, qualifications, designations, declarations or filings by or with any Governmental Authority and any third party which are required to be obtained or made by each
Partnership in connection with the consummation of the transactions contemplated hereunder and under the Transaction Documents have been obtained or made prior to and be in full force and effect as at the Closing. 

(d) No Conflicts. The execution, delivery and performance of and compliance with the Transaction Documents and the consummation of the
transactions contemplated hereby and thereby will not result in any such violation, breach or default, or be in conflict with or constitute, with or without the passage of time or the giving of notice or both, either a default under any
Partnership’s Charter Documents or any term or provision of any mortgage, indenture, contract, agreement or instrument to which the any Partnership is a party or by which it may be bound, or, a violation of any statutes, Laws, regulations or
orders, or an event which results in the creation of any lien, charge or encumbrance upon any asset of any Partnership. 
 5. Conditions of
the Investors’ Obligations at the Closing. The obligations of each Investor to consummate the Closing under Section 2 of this Agreement are subject to the fulfillment, to the satisfaction of
such Investor on or prior to the Closing, or waiver by such Investor, of the following conditions: 
 (a) Representations and
Warranties. Each of the representations and warranties of the Warrantors and the Partnerships contained in Section 3 and Section 4.2 shall have been true and complete when made and shall be
true and complete on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the date of such Closing, except in either case for those representations and warranties that address matters
only as of a particular date, which representations will have been true and complete as of such particular date. 

  

					
		 	16	 	Share Purchase Agreement

 (b) Performance. Each Warrantor shall have performed and complied with all
obligations and conditions contained in the Transaction Documents that are required to be performed or complied with by them, on or before the Closing. 

(c) Authorizations. All Consents of any competent Governmental Authority or of any other Person that are required to be obtained
by any Warrantor or Partnership in connection with the consummation of the transactions that are required to be consummated prior to the Closing as contemplated by the Transaction Documents (including but not limited to those related to the
formation of the Company, the lawful issuance and sale of the Preferred Shares, and any waivers of notice requirements, rights of first refusal, preemptive rights, put or call rights) shall have been duly obtained and effective as of the Closing,
and evidence thereof shall have been delivered to the Investors. 
 (d) Proceedings and Documents. All corporate and other
proceedings in connection with the transactions to be completed at the Closing and all documents incident thereto, including without limitation written approval from all of the then current holders of equity interests of each Group Company (other
than the Investors), as applicable, with respect to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby, shall have been obtained or executed. 

(e) Memorandum and Articles. The Memorandum and Articles, in the forms attached hereto as Exhibit
A-1 and Exhibit A-2, respectively, shall have been duly adopted by all necessary actions of the Board of Directors and/or the shareholders of the Company
(which Memorandum and Articles shall have been submitted for filing with the appropriate authority(ies) of the Cayman Islands at or prior to the Closing), and such adoption shall have become effective prior to the Closing with no alteration or
amendment as of the Closing, and reasonable evidence thereof shall have been delivered to the Investors. 
 (f) Transaction
Documents. Each of the parties to the Transaction Documents, other than the Investors, shall have executed and delivered such Transaction Documents to the Investors. 

(g) Indemnification Agreement. The Company shall have delivered to each of Series A-1 Investor, Tencent and Taikang a copy of
indemnification agreement between the Company and the Investor Director (as defined in the Shareholders Agreement) appointed by Series A-1 Investor, Tencent and Taikang respectively, duly executed by the
Company (the “Indemnification Agreement”) in form and substance attached hereto as Exhibit E. 
 (h) Board of
Directors. The Company shall have taken all necessary corporate actions such that immediately following the Closing (x) the board of directors of each of the Company, the HK Company, the WFOE and the Domestic Company shall have seven
(7) members, among which, four (4) members shall be appointed by the Principals, one (1) member shall be appointed by the Series A-1 Investor, one (1) member shall be appointed by Tencent,
and one (1) member shall be appointed by Taikang, (y) a representative nominated by the Series A-3 Investor shall have been appointed as the observer of the board of directors of the Company, the HK Company, the WFOE and the Domestic
Company, and (z) a representative nominated by Didi shall have been appointed as the observer of the board of directors of the Company, the HK Company, the WFOE and the Domestic Company. 

  

					
		 	17	 	Share Purchase Agreement

 (i) SAFE Registration. The Principals and any other holder or beneficial owner of any
Equity Securities of the Company, who is a “Domestic Resident” as defined in Circular 37 and is subject to any of the registration or reporting requirements of Circular 37, shall have obtained a SAFE registration certificate with respect
to his/her interest in the Company, and shall have no reason to believe that they may not be in full compliance with all such reporting and/or registration requirements. 

(j) Opinions of Company’s Counsels. Each Investor shall have received (i) from PRC counsel to the Group
Companies legal opinions addressed to such Investor, dated the date of the Closing, and (ii) from Cayman Islands counsel to the Company a legal opinion addressed to such Investor, dated the date of the Closing. 

(k) Closing Certificate. The Warrantors shall have executed and delivered to each Investor a certificate dated as of the Closing
stating that the conditions specified in this Section 5 have been fulfilled or waived as of the Closing. 
 (l)
Certificate of Good Standing. The Company shall have deliver to each Investor a certificate of good standing of the Company dated no earlier than ten (10) Business Days prior to the date of Closing. 

(m) Certificate of Incumbency. The Company shall have delivered to each Investor a certificate of incumbency of the Company, issued by
the secretary of the Company, dated no earlier than ten (10) Business Days prior to the date of the Closing. 
 (n) Secretary’s
Certificate. The secretary of the Company shall deliver to each Investor at the Closing a certificate certifying (i) the Memorandum and Articles, and (ii) resolutions of the shareholders and the board of directors of the Company
approving the Transaction Documents, the transactions contemplated hereby and thereby, and the performance of all obligations of the Company hereunder and thereunder. 

6. Conditions of the Company’s Obligations at Closing. The obligations of the Company to consummate the Closing under
Section 2 of this Agreement, unless otherwise waived in writing by the Company, are subject to the fulfillment on or before the Closing of each of the following conditions: 

6.1 Representations and Warranties. The representations and warranties of each Investor contained in
Section 4.1 shall have been true and complete when made and shall be true and complete on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the
date of the Closing, except in either case for those representations and warranties that address matters only as of a particular date, which representations will have been true and complete as of such particular date. 

6.2 Performance. Each Investor shall have performed and complied with all covenants, obligations and conditions contained in
this Agreement that are required to be performed or complied with by each Investor on or before the Closing. 
 6.3 Transaction
Documents. Each of the Transaction Documents shall have been executed and delivered by such Investor. 
 6.4 Filing with
CIRC. In respect of Taikang, Taikang shall have completed the filing of the transaction contemplated under the Transaction Documents with the CIRC without objection or dissent (if applicable) and submitted relevant information to the Equity
Investment Information Reporting System (if applicable). 

  

					
		 	18	 	Share Purchase Agreement

	7.	Covenants; Miscellaneous. 

  

	 	7.1	Post Closing Covenants. 

 (i) Compliance with Laws. Each Group Company shall, and
each Principal shall cause each Group Company to, use their respective reasonable best efforts to comply in all material respects with all applicable Laws, including but not limited to applicable PRC Laws relating to the Business, Intellectual
Property, anti-corruption, anti-money laundry, taxation, employment and social welfare and benefits. 
 (ii) Compliance with SAFE Rules
and Regulations. The Principals and any other holder or beneficial owner of any Equity Securities of the Company, who is a “Domestic Resident” as defined in Circular 37 and is subject to any of the registration or reporting
requirements of Circular 37, shall, and the Group Companies shall cause those individuals to, comply with all reporting and/or registration requirements (including filings of amendments to existing registrations) under the SAFE Rules and Regulations
in respect of his/her direct and indirect record and beneficial ownership of any equity interest in the Company and each other Group Company. 

(iii) Business of the Company. Unless otherwise approved by the Board or shareholders of the Company, as applicable, the business of
the Company shall be restricted to the holding of shares or equity interest in the HK Company, and the business of the HK Company shall be restricted to the holding of shares or equity interest in the WFOE. 

(iv) D&O Insurance. If requested by Series A-1 Investor, Tencent or Taikang, the Company
shall obtain and maintain director and officer insurance with coverage and terms to the reasonable satisfaction of Series A-1 Investor, Tencent or Taikang. 

(v) Equity Pledge Registration. As soon as practicable but in no event later than two (2) months after the Closing, the Company
shall procure that the equity pledge made by each equity holder of the Domestic Company in favor of the WFOE pursuant to the Control Documents shall be registered with the competent PRC Governmental Authorities. 

(vi) Transfer of Assets and Business Contracts. Subject to the approvals of the shareholders of relevant Group Company as provided by
other Transaction Documents, as soon as practicable after the Closing, the Company shall cause the material Intellectual Property, assets and the business contracts of the Domestic Company, to the maximum extent permitted by the applicable laws, to
be transferred to the WFOE. Subject to the approvals of the board of directors of relevant Group Company and/or the approvals of the shareholders of relevant Group Company as provided by other Transaction Documents, to the maximum extent permitted
by the applicable laws, any future material Intellectual Property, assets of the Group Companies shall be owned in the WFOE’s name and any future business contract shall be entered into by the WFOE. 

7.2 Further Assurances. Upon the terms and subject to the conditions herein, each of the Parties hereto agrees to use its best
efforts to take or cause to be taken all action, to do or cause to be done, to execute such further instruments, and to assist and cooperate with the other Parties hereto in doing, all things necessary, proper or advisable under applicable Laws or
otherwise to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement and other Transaction Documents, provided that except as expressly provided herein, no Party shall be obligated
to grant any waiver of any condition or other waiver hereunder. 

  

					
		 	19	 	Share Purchase Agreement

 7.3 Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties hereto whose rights or obligations hereunder are affected by such terms and conditions. This Agreement and the rights
and obligations therein may not be assigned by any Warrantor without the prior written consent of the Investors. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the Parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

7.4 Governing Law. This Agreement shall be governed by and construed under the Laws of the Hong Kong, without regard to
principles of conflict of Laws thereunder. 
  

	 	7.5	Dispute Resolution. 

 (i) Any dispute, controversy or claim (each, a
“Dispute”) arising out of or relating to this Agreement, or the interpretation, breach, termination, validity or invalidity thereof, shall be referred to arbitration upon the demand of either party to the dispute with notice (the
“Arbitration Notice”) to the other. 
 (ii) The Dispute shall be settled by arbitration in Hong Kong by the Hong Kong
International Arbitration Centre (the “HKIAC”) in accordance with the Hong Kong International Arbitration Centre Administered Arbitration Rules (the “HKIAC Rules”) in force when the Arbitration Notice is submitted
in accordance with the HKIAC Rules. There shall be one (1) arbitrator. The HKIAC Council shall select the arbitrator, who shall be qualified to practice law in Hong Kong. 

(iii) The arbitral proceedings shall be conducted in English. To the extent that the HKIAC Rules are in conflict with the provisions of this
Section, including the provisions concerning the appointment of the arbitrators, the provisions of this Section shall prevail. 
 (iv) Each
party to the arbitration shall cooperate with each other party to the arbitration in making full disclosure of and providing complete access to all information and documents requested by such other party in connection with such arbitral proceedings,
subject only to any confidentiality obligations binding on such party. 
 (v) The award of the arbitral tribunal shall be final and binding
upon the parties thereto, and the prevailing party may apply to a court of competent jurisdiction for enforcement of such award. 
 (vi) The
arbitral tribunal shall decide any Dispute submitted by the parties to the arbitration strictly in accordance with the substantive Laws of Hong Kong (without regard to principles of conflict of Laws thereunder) and shall not apply any other
substantive Law. 
 (vii) Any party to the Dispute shall be entitled to seek preliminary injunctive relief, if possible, from any court of
competent jurisdiction pending the constitution of the arbitral tribunal. 

  

					
		 	20	 	Share Purchase Agreement

 (viii) During the course of the arbitral tribunal’s adjudication of the Dispute, this
Agreement shall continue to be performed except with respect to the part in dispute and under adjudication. 
 7.6 Notices.
Any notice required or permitted pursuant to this Agreement shall be given in writing and shall be given either personally or by sending it by next-day or second-day
courier service, fax, electronic mail or similar means to the address of the relevant Party as shown on Schedule V (or at such other address as such Party may designate by ten (10) days’ advance written notice to the other Parties
to this Agreement given in accordance with this Section). Where a notice is sent by next-day or second-day courier service, service of the notice shall be deemed to be
effected by properly addressing, pre-paying and sending by next-day or second-day service through an internationally-recognized
courier a letter containing the notice, with a written confirmation of delivery, and to have been effected at the earlier of (i) delivery (or when delivery is refused) and (ii) expiration of two (2) Business Days after the letter
containing the same is sent as aforesaid. Where a notice is sent by fax or electronic mail, service of the notice shall be deemed to be effected by properly addressing, and sending such notice through a transmitting organization, with a written
confirmation of delivery, and to have been effected on the day the same is sent as aforesaid, if such day is a Business Day and if sent during normal business hours of the recipient, otherwise the next Business Day. Notwithstanding the foregoing, to
the extent a “with a copy to” address is designated, notice must also be given to such address in the manner above for such notice, request, consent or other communication hereunder to be effective. 

7.7 Survival of Representations, Warranties and Covenants. The representations, warranties and covenants of the Warrantors
contained in this Agreement shall survive any investigation made by any party hereto, and the consummation of the transactions contemplated hereby. 
  

	 	7.8	Indemnity. 

 (i) Each of the Warrantors hereby agrees to jointly and severally indemnify
and hold harmless each Investor, and such Investor’s directors, officers, employees, Affiliates, agents, successors and assigns, from and against any and all Indemnifiable Losses suffered by such Investor, or such Investor’s directors,
officers, employees, Affiliates, agents, successors and assigns, directly or indirectly, as a result of, or based upon or arising from any inaccuracy in or breach or nonperformance of any of the representations, warranties, covenants or agreements
made by any Warrantors in or pursuant to this Agreement. 
 (ii) Each of the Partnerships hereby agrees to, severally and not jointly,
indemnify and hold harmless each Investor, and such Investor’s directors, officers, employees, Affiliates, agents, successors and assigns, from and against any and all Indemnifiable Losses suffered by such Investor, or such Investor’s
directors, officers, employees, Affiliates, agents, successors and assigns, directly or indirectly, as a result of, or based upon or arising from any inaccuracy in or breach or nonperformance of any of the representations, warranties, covenants or
agreements made by such Partnership in or pursuant to this Agreement. 

  

					
		 	21	 	Share Purchase Agreement

 (iii) Each Investor hereby agrees to, severally and not jointly, indemnify and hold harmless the
Company from and against any and all Indemnifiable Losses suffered by the Company directly or indirectly, as a result of, or based upon or arising from any inaccuracy in or breach or nonperformance of any of the representations, warranties,
covenants or agreements made by such Investor in or pursuant to this Agreement. 
 (iv) Any Party seeking indemnification with respect to
any Indemnifiable Loss (an “Indemnified Party”) shall give written notice to the party required to provide indemnity hereunder (the “Indemnifying Party”). 

(v) If any claim, demand or Liability is asserted by any third party against any Indemnified Party, the Indemnifying Party shall upon the
written request of the Indemnified Party, defend any actions or proceedings brought against the Indemnified Party in respect of matters embraced by the indemnity under this Section 7.8. If, after a request to defend any
action or proceeding, the Indemnifying Party neglects to defend the Indemnified Party, a recovery against the Indemnified Party suffered by it in good faith shall be conclusive in its favor against the Indemnifying Party. 

(vi) This Section 7.8 shall not be deemed to preclude or otherwise limit in any way the exercise of any other rights
or pursuit of other remedies for the breach of this Agreement or with respect to any misrepresentation. 
 7.9 Rights Cumulative;
Specific Performance. Each and all of the various rights, powers and remedies of a party hereto will be considered to be cumulative with and in addition to any other rights, powers and remedies which such Party may have at Law or in equity in
the event of the breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy will neither constitute the exclusive election thereof nor the waiver of any other right, power or remedy available to such
Party. Without limiting the foregoing, the Parties hereto acknowledge and agree irreparable harm may occur for which money damages would not be an adequate remedy in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to injunction to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement.

 7.10 Joint Liability. Each of the Warrantors hereby agrees to be jointly and severally liable for the Liabilities of the
Principals, the holding companies of the Principals (if applicable) and the PRC Companies to each Investor and/or Investor Affiliate (as the case may be) under the WP Onshore Subscription Agreement, the PV Onshore Subscription Agreement, the TK
Onshore Subscription Agreement and/or the Series B Onshore Subscription Agreement (as the case may be) (collectively, the “Onshore Subscription Agreements”), including but not limited to the obligations to indemnify Investor
Affiliates according to and subject to the terms thereunder as if such offshore entity was a party to the Onshore Subscription Agreements. For the avoidance of doubt, the Onshore Subscription Agreements shall remain in effect according to the terms
and conditions thereunder and shall not be replaced or superseded by this Agreement. Each of the Principals and Principal Holding Companies hereby agrees to be jointly and severally liable for the Liabilities of the Principals and the holding
companies of the Principals (if applicable) to Boyu, Haitong and/or their applicable Affiliates (as the case may be) under the Onshore Equity Transfer Agreement, including but not limited to the obligations to indemnify Boyu, Haitong and/or their
Affiliates according to and subject to the terms thereunder as if such offshore company was a party to the Onshore Equity Transfer Agreement. For the avoidance of doubt, the Onshore Equity Transfer Agreement shall remain in effect according to the
terms and conditions thereunder and shall not be replaced or superseded by this Agreement. 

  

					
		 	22	 	Share Purchase Agreement

 7.11 Limitation on Liabilities. Notwithstanding any other provisions hereunder to
the contrary, the maximum aggregate monetary liability of each Principal under this Agreement shall in no event exceed the asset directly or indirectly owned by such Principal and all the Equity Securities of the Company directly or indirectly held
by such Principal (including without limitation the Equity Securities of the Company held in trust by other shareholders (if applicable) for such Principle) when such liability becomes definitive,
non-appealable and due. For purpose of this Section 7.11, absent intentional or malicious transfer of assets or the Equity Securities directly or indirectly held by any Principal,
with respect to each Principal, the forgoing description “the asset directly or indirectly owned by such Principal” shall not include any asset that is under the name of any Immediate Family Member of such Principal and such asset that is
under the name of any Immediate Family Member of such Principal shall not be deemed as “the asset directly or indirectly owned by such Principal” even if such property by its nature is the matrimonial community asset of such Principle and
his/her spouse. For the further avoidance of doubt, except for those Equity Securities of the Company as subscribed or purchased by the Immediate Family Member of the Principals in accordance with the terms and conditions of the Transaction
Documents, the Equity Securities directly or indirectly held by any Principal shall not be registered under the name of any Immediate Family Member of such Principal, or belong to any Immediate Family Member of such Principal by any means other than
the inheriting pursuant to the applicable Laws and each of the Principal shall cause the spouse of such Principal to waive his/her rights to the interests in connection with the Equity Securities of the Company directly or indirectly held by such
Principal (including without limitation the Equity Securities of the Company held in trust by other shareholders (if applicable) for such Principle). 
  

	 	7.12	Confidentiality. 

 (i) The terms and conditions of this Agreement, other Transaction
Documents, any term sheet or memorandum of understanding entered into pursuant to the transactions contemplated hereby, all exhibits and schedules attached hereto and thereto, the transactions contemplated hereby and thereby, including their
existence, and all information furnished by any Party hereto and by representatives of such Parties to any other Party hereof or any of the representatives of such Parties (collectively, the “Confidential Information”), shall be
considered confidential information and shall not be disclosed by any Party hereto to any third party except in accordance with the provisions set forth below. 

(ii) Notwithstanding the foregoing, each Party may disclose (i) the Confidential Information to its current or bona fide prospective
investors, partners, Affiliates, assigns and their respective employees, officers, directors, bankers, debtors, accountants or legal counsels, business partners, agents or other consultants who need to know such information, in each case only where
such persons or entities are informed of the confidential nature of the Confidential Information and are under appropriate nondisclosure obligations substantially similar to those set forth in this Section 7.12, (ii) such
Confidential Information as is required to be disclosed pursuant to routine examination requests from Governmental Authorities with authority to regulate such Party’s operations, in each case as such Party deems appropriate in good faith, and
(iii) the Confidential Information to any Person to which disclosure is approved in writing by the other Parties. Any Party hereto may also provide disclosure in order to comply with applicable Laws, as set forth in
Section 7.12(iii) below. 

  

					
		 	23	 	Share Purchase Agreement

 (iii) Except as set forth in Section 7.12(ii) above, in the event that
any Party is requested or becomes legally compelled (including without limitation, pursuant to any applicable tax, securities, other Laws of any jurisdiction, or any applicable stock exchange rules or regulations) to disclose the existence of this
Agreement or any Confidential Information, such party (the “Disclosing Party”) shall provide the other Parties hereto with prompt written notice of that fact and shall consult with the other Parties hereto regarding such disclosure.
At the request of any other Parties, the Disclosing Party shall, to the extent reasonably possible and with the cooperation and reasonable efforts of the other Parties, seek a protective order, confidential treatment or other appropriate remedy. In
any event, the Disclosing Party shall furnish only that portion of the information that is legally required and shall exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded such information. 

(iv) Notwithstanding any other provision of this Section 7.12, the confidentiality obligations of the Parties shall
not apply to: (i) information which a restricted party learns from a third party which the receiving party reasonably believes to have the right to make the disclosure, provided the restricted party complies with any restrictions imposed by the
third party; (ii) information which is rightfully in the restricted party’s possession prior to the time of disclosure by the protected party and not acquired by the restricted party under a confidentiality obligation; or
(iii) information which enters the public domain without breach of confidentiality by the restricted party. 
 (v) Notwithstanding the
foregoing, no Group Company shall use the name or logo of any Investor in any manner, context or format (including but not limited to reference on or links to websites, press releases) without the prior written consent of such Investor. 

7.13 Severability. In case any provision of the Agreement shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. If, however, any provision of this Agreement shall be invalid, illegal, or unenforceable under any such applicable Law in any jurisdiction,
it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such Law, or, if for any reason it is not deemed so modified, it shall be invalid, illegal, or unenforceable only to the extent of such invalidity,
illegality, or limitation on enforceability without affecting the remaining provisions of this Agreement, or the validity, legality, or enforceability of such provision in any other jurisdiction. 

7.14 Amendments and Waivers. Any term of this Agreement may be amended only with the written consent of each of
(i) the Company, (ii) the Principals and the Principal Holding Companies, and (iii) the respective Investor. Any amendment effected in accordance with this paragraph shall be binding upon each of the Parties hereto. Notwithstanding
the foregoing, the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Party against whom such waiver is sought. 

7.15 No Waiver. Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof will not be
deemed a waiver of such term, covenant, or condition, nor will any waiver or relinquishment of, or failure to insist upon strict compliance with, any right, power or remedy power hereunder at any one or more times be deemed a waiver or
relinquishment of such right, power or remedy at any other time or times. 

  

					
		 	24	 	Share Purchase Agreement

 7.16 Delays or Omissions. No delay or omission to exercise any right, power or
remedy accruing to any Party under this Agreement, upon any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement,
or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. 

7.17 No Presumption. The Parties acknowledge that any applicable Law that would require interpretation of any claimed
ambiguities in this Agreement against the Party that drafted it has no application and is expressly waived. If any claim is made by a Party relating to any conflict, omission or ambiguity in the provisions of this Agreement, no presumption or burden
of proof or persuasion will be implied because this Agreement was prepared by or at the request of any Party or its counsel. 
 7.18
Headings and Subtitles; Interpretation. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. Unless a provision hereof expressly provides
otherwise: (i) the term “or” is not exclusive; (ii) words in the singular include the plural, and words in the plural include the singular; (iii) the terms “herein”, “hereof”, and other similar words
refer to this Agreement as a whole and not to any particular section, subsection, paragraph, clause, or other subdivision; (iv) the term “including” will be deemed to be followed by, “but not limited to”, (v) the masculine,
feminine, and neuter genders will each be deemed to include the others; (vi) the terms “shall”, “will”, and “agrees” are mandatory, and the term “may” is permissive; (vii) the term “day”
means “calendar day”, and “month” means calendar month, (viii) all references in this Agreement to designated “Sections” and other subdivisions are to the designated Sections and other subdivisions of the body of
this Agreement, (ix) all references in this Agreement to designated Schedules, Exhibits and Appendices are to the Schedules, Exhibits and Appendices attached to this Agreement, (x) the phrase “directly or indirectly” means
directly, or indirectly through one or more intermediate Persons or through contractual or other arrangements, and “direct or indirect” has the correlative meaning, (xi) references to Laws include any such Law modifying, re-enacting, extending or made pursuant to the same or which is modified, re-enacted, or extended by the same or pursuant to which the same is made, (xii) each
representation, warranty, agreement, and covenant contained herein will have independent significance, regardless of whether also addressed by a different or more specific representation, warranty, agreement, or covenant, (xiii) all accounting
terms not otherwise defined herein have the meanings assigned under the Accounting Standards, (xiv) pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms, (xv) references to this Agreement, any other
Transaction Documents and any other document shall be construed as references to such document as the same may be amended, supplemented or novated from time to time, and (xvi) all references to dollars or to “US$” are to currency of
the United States of America and all references to RMB are to currency of the PRC (and each shall be deemed to include reference to the equivalent amount in other currencies). 

7.19 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Facsimile and e-mailed copies of signatures shall be deemed to be originals for purposes of the effectiveness of this Agreement. 

  

					
		 	25	 	Share Purchase Agreement

 7.20 Entire Agreement. This Agreement and the other Transaction Documents,
together with all schedules and exhibits hereto and thereto, constitute the full and entire understanding and agreement among the Parties with regard to the subjects hereof and thereof, and supersede all other agreements between or among any of the
Parties with respect to the subject matters hereof and thereof. 
 7.21 Termination. This Agreement may be terminated prior to
the Closing by mutual written consent of the Parties hereto. In the event of a valid termination of this Agreement pursuant to this Section 7.21, this Agreement shall become void and of no effect with no liability on the
part of any Party hereto (or of any of its representatives); provided, however, that (i) Section 7.4, Section 7.5, Section 7.12 and
Section 7.21 shall remain in full force and effect and survive termination of this Agreement, and (ii) nothing herein shall relieve any Party from liability for fraud or any willful and material breach of this
Agreement prior to such termination. No Party claiming that any such breach occurred will have any duty or otherwise be obligated to mitigate any damages arising out of or resulting from such breach. 

7.22 Use of English Language. This Agreement has been executed and delivered in the English language. Any translation of this
Agreement into another language, if any, shall have no interpretive effect. All documents or notices to be delivered pursuant to or in connection with this Agreement shall be in the English language or, if any such document or notice is not in the
English language, accompanied by an English translation thereof, and the English language version of any such document or notice shall control for purposes thereof. 

7.23 Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under this
Agreement and the other Transaction Documents are several and not joint, and no Investor is responsible in any way for the performance or conduct of any other Investor in connection with the transactions contemplated hereby. Nothing contained herein
or in any other Transaction Document, and no action taken by any Investor pursuant hereto or thereto, shall be or shall be deemed to constitute a partnership, association, joint venture, or joint group with respect to the Investors. Each Investor
agrees that no other Investor has acted as an agent for such Investor in connection with the transactions contemplated hereby. 
 [The
remainder of this page has been left intentionally blank] 

  

					
		 	26	 	Share Purchase Agreement

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	GROUP COMPANIES:
	
	Cango Inc.
		
	By:	 	 /s/ ZHANG Xiaojun 

	Name: ZHANG Xiaojun (张晓俊)
	Title: Director
	
	Cango Group Limited
		
	By:	 	 /s/ ZHANG Xiaojun 

	Name: ZHANG Xiaojun (张晓俊)
	Title: Director
	
	Shanghai Cango Investment and Management Consultation Co., Ltd.
(上海灿谷投资管理咨询服务有限公司) 
		
	By:	 	 /s/ ZHANG Xiaojun 

	Name: ZHANG Xiaojun (张晓俊)
	Title: Legal Representative
	[SEAL]
	
	Can Gu Long (Shanghai) Information Technology Consulting Services Co., Ltd. (灿谷隆(上海)信息科技咨询服务有限公司) 
		
	By:	 	 /s/ ZHANG Xiaojun 

	Name: ZHANG Xiaojun (张晓俊)
	Title: Legal Representative
	[SEAL]

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	PRINCIPALS:
	
	 /s/ ZHANG Xiaojun 

	ZHANG Xiaojun (张晓俊)
	
	 /s/ LIN Jiayuan 

	LIN Jiayuan (林佳元)
	
	PRINCIPAL HOLDING COMPANIES:
	
	Eagle Central Holding Limited
		
	By:	 	 /s/ ZHANG Xiaojun 

	Name:	 	ZHANG Xiaojun (张晓俊)
	Title:	 	Director
	
	Medway Brilliant Holding Limited
		
	By:	 	 /s/ LIN Jiayuan 

	Name:	 	LIN Jiayuan (林佳元)
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized representatives to execute
this Agreement on the date and year first above written. 
  

			
	PARTNERSHIPS:
	
	Huaiyuan L.P.
		
	By: 	 	 /s/ XU Shouyan 

	Name:	 	XU Shouyan (徐首雁)
	Title:	 	Authorized Signatory
	
	Minghuai L.P.
		
	By: 	 	 /s/ YU Beibei 

	Name:	 	YU Beibei (郁蓓蓓)
	Title:	 	Authorized Signatory
	
	 Xiehuai L.P.

		
	By: 	 	 /s/ LIN Jiayuan 

	Name:	 	LIN Jiayuan (林佳元)
	Title	 	Authorized Signatory

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Warburg Pincus Cango Fintech Investment Company Limited
		
	By:	 	 /s/ David Sreter

	Name:	 	David Sreter
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	PV Peacock Limited
		
	By:	 	 /s/ Ena Leung

	Name:	 	Ena Leung
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Zodiac One Limited
		
	By:	 	 /s/ Ena Leung

	Name:	 	Ena Leung
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Magic Spark Inc.
		
	By:	 	 /s/ Yunyun Zhang 

	Name:	 	Yunyun Zhang (张韵韵)
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	TK Autolink Inc.
		
	By:	 	 /s/ Yunyun Zhang 

	Name:	 	Yunyun Zhang (张韵韵)
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Tencent Mobility Limited
		
	By:	 	 /s/ Ma Huateng

	Name:	 	Ma Huateng
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Links Advance Holdings Limited
		
	By:	 	 /s/ CHENG Wei 

	Name:	 	CHENG Wei 
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Haitong International Investment Holdings Limited
		
	By:	 	 /s/ Xi DENG

	Name:	 	Xi DENG
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Harbourside 1712 Limited
		
	By:	 	 /s/ LI Xiaoxiao

	Name:	 	LI Xiaoxiao
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	 China TH Capital Limited

中国泰合资本有限公司

		
	By:	 	 /s/ Liangjing Song

	Name:	 	 Liangjing Song

	Title:	 	Partner

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	Harmonic Century Limited
		
	By:	 	 /s/ Vincent Fok

	Name:	 	Vincent Fok
	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement on the date and year first above written. 
  

			
	INVESTORS:
	
	RXD International. Ltd
		
	By:	 	 /s/ Jing Chen

	Name:	 	 Jing Chen

	Title:	 	Director

  
 [Signature Page to Share
Purchase Agreement] 

			
	SCHEDULE I	  	List of the Principal and Principal Holding Company
		
	SCHEDULE II	  	Schedule of the Investors
		
	SCHEDULE III	  	Capitalization Table Immediately After the Closing
		
	SCHEDULE IV	  	Capitalization Table Immediately After the Reservation of ESOP Shares
		
	SCHEDULE V	  	Address for Notices
		
	EXHIBIT A-1	  	Form of Amended and Restated Memorandum of Association
		
	EXHIBIT A-2	  	Form of Amended and Restated Articles of Association
		
	EXHIBIT B	  	Form of Right of First Refusal & Co-Sale Agreement
		
	EXHIBIT C	  	Form of Shareholders Agreement
		
	EXHIBIT D	  	Disclosure Schedule
		
	EXHIBIT E	  	Form of Indemnification Agreement

  
 Share Purchase Agreement

 Index of Schedules and Exhibits 

 SCHEDULE I 

List of the Principals and Principal Holding Companies 
  

							
	 Principals
	  	 PRC ID Card Number
	  	 Principal Holding Companies
	  	 Ownership Interest Percentage
Held by Principal in the
Principal
Holding Company

				
	ZHANG Xiaojun (张晓俊)	  		  	Eagle Central Holding Limited	  	100%
	LIN Jiayuan (林佳元)	  		  	 Medway Brilliant Holding Limited
	  	100%

  

					
		 	Schedule I	 	Share Purchase Agreement

 SCHEDULE II 

LIST OF INVESTORS AND INVESRTOR AFFILIATES 

Series A-1 Investor 
  

					
	 Name of Series A-1
Investor
	  	 Name of Series A-1
Investor Affiliate
	  	 Number of Series A-1
Preferred Shares

	 Warburg Pincus Cango Fintech Investment Company Limited
	  	Warburg Pincus Financial Global Ltd	  	53,431,125

 Series A-2 Investor 

 

					
	 Name of Series A-2
Investor
	  	 Name of Series A-2
Investor Affiliate
	  	 Number of Series A-2
Preferred Shares

	 PV Peacock Limited
	  	Chun Hua Qiu Shi (Tianjin) Equity Investment Partnership (L.P.)
(春华秋实(天津)股权投资合伙企业(有限合伙
))	  	2,179,215

 Series A-3 Investor 
  

					
	 Name of Series A-3
Investor
	  	 Name of Series A-3
Investor Affiliate
	  	 Number of Series A-3 Preferred Shares

	 Zodiac One Limited
	  	PV Chivalry Limited	  	10,308,663

 Series B Investors 
  

					
	 Name of Series B Investors
	  	 Name of Series B Investor Affiliates
	  	 Number of Series B Preferred Shares

	 Magic Spark Inc.
	  	Taikang Life Insurance Co., Ltd. (泰康人寿保险有限责任公司)	  	7,901,029
			
	 TK Autolink Inc.
	  	Shandong State-controlled Taikang Phase I Industrial Development Fund Partnership Enterprise (Limited Partnership)
(山东国控泰康一期产业发展基金合伙企业(有限合伙))	  	7,901,029

  

					
		 	Schedule II	 	Share Purchase Agreement

					
	 Tencent Mobility Limited
	  	Tencent Mobility Limited	  	31,603,197
			
	 Links Advance Holdings Limited
	  	Links Advance Holdings Limited	  	4,740,480
			
	 Haitong International Investment Holdings Limited
	  	Haitong International Investment Holdings Limited	  	316,032
			
	 Harbourside 1712 Limited
	  	Harbourside 1712 Limited	  	3,160,320
			
	 China TH Capital Limited

中国泰合资本有限公司

	  	北京泰合鼎诚投资咨询有限公司	  	632,064
			
	 Harmonic Century Limited
	  	Boyu III (Shanghai) Equity Investment Partnership L.P.
(博裕三期(上海)股权投资合伙企业(有限合伙
))	  	4,740,480
			
	 RXD International. Ltd
	  	We Financial Technology Co., Ltd. (深圳微众金融科技集团股份有限公司)	  	948,095

  

					
		 	Schedule II	 	Share Purchase Agreement

 SCHEDULE III 

Capitalization Table Immediately after the Closing 
  

									
	 Shareholders
	  	Number of
Shares	 	  	Percentage	 
	 Ordinary Shares
	  				  			
	 Principal Holding Companies
	  				  			
	 Eagle Central Holding Limited
	  	 	39,442,798	 	  	 	15.6003	% 
	 Medway Brilliant Holding Limited
	  	 	39,882,922	 	  	 	15.7745	% 
	 Partnerships
	  				  			
	 Xiehuai L.P.
	  	 	21,283,655	 	  	 	8.4181	% 
	 Huaiyuan L.P.
	  	 	13,075,290	 	  	 	5.1715	% 
	 Minghuai L.P.
	  	 	11,285,322	 	  	 	4.4636	% 
	 Series A Preferred Shares
	  				  			
	 Series A-1 Investor
	  				  			
	 Warburg Pincus Cango Fintech Investment Company Limited
	  	 	53,431,125	 	  	 	21.1331	% 
	 Series A-2 Investor
	  				  			
	 PV Peacock Limited
	  	 	2,179,215	 	  	 	0.8619	% 
	 Series A-3 Investor
	  				  			
	 Zodiac One Limited
	  	 	10,308,663	 	  	 	4.0773	% 
	 Series B Preferred Shares
	  				  			
	 Series B Investors
	  				  			
	 Magic Spark Inc.
	  	 	7,901,029	 	  	 	3.1250	% 
	 TK Autolink Inc.
	  	 	7,901,029	 	  	 	3.1250	% 
	 Tencent Mobility Limited
	  	 	31,603,197	 	  	 	12.4997	% 
	 Links Advance Holdings Limited
	  	 	4,740,480	 	  	 	1.8750	% 
	 Haitong International Investment
	  	 	316,032	 	  	 	0.1250	% 

  

					
		 	Schedule III	 	Share Purchase Agreement

									
	 Holdings Limited
	  				  			
	 Harbourside 1712 Limited
	  	 	3,160,320	 	  	 	1.2500	% 
	 China TH Capital Limited
中国泰合资本有限公司 
	  	 	632,064	 	  	 	0.2500	% 
	 Harmonic Century Limited
	  	 	4,740,480	 	  	 	1.8750	% 
	 RXD International. Ltd
	  	 	948,095	 	  	 	0.3750	% 
	 Total
	  	 	252,831,716	 	  	 	100.0000	% 

  

					
		 	Schedule III	 	Share Purchase Agreement

 SCHEDULE VI 

Capitalization Table Immediately after the Reservation of ESOP Shares 

 

									
	 Shareholders
	  	Number of
Shares	 	  	Percentage	 
	 Ordinary Shares
	  				  			
	 Principal Holding Companies
	  				  			
	 Eagle Central Holding Limited
	  	 	39,442,798	 	  	 	14.0528	% 
	 Medway Brilliant Holding Limited
	  	 	39,882,922	 	  	 	14.2095	% 
	 Partnerships
	  				  			
	 Xiehuai L.P.
	  	 	21,283,655	 	  	 	7.5830	% 
	 Huaiyuan L.P.
	  	 	13,075,290	 	  	 	4.6585	% 
	 Minghuai L.P.
	  	 	11,285,322	 	  	 	4.0207	% 
	 ESOP
	  	 	27,845,526	 	  	 	9.9208	% 
	 Series A Preferred Shares
	  				  			
	 Series A-1 Investor
	  				  			
	 Warburg Pincus Cango Fintech Investment Company Limited
	  	 	53,431,125	 	  	 	19.0365	% 
	 Series A-2 Investor
	  				  			
	 PV Peacock Limited
	  	 	2,179,215	 	  	 	0.7764	% 
	 Series A-3 Investor
	  				  			
	 Zodiac One Limited
	  	 	10,308,663	 	  	 	3.6728	% 
	 Series B Preferred Shares
	  				  			
	 Series B Investors
	  				  			
	 Magic Spark Inc.
	  	 	7,901,029	 	  	 	2.8150	% 
	 TK Autolink Inc.
	  	 	7,901,029	 	  	 	2.8150	% 
	 Tencent Mobility Limited
	  	 	31,603,197	 	  	 	11.2596	% 

  

					
		 	Schedule IV	 	Share Purchase Agreement

									
	 Links Advance Holdings Limited
	  	 	4,740,480	 	  	 	1.6889	% 
	 Haitong International Investment Holdings Limited
	  	 	316,032	 	  	 	0.1126	% 
	 Harbourside 1712 Limited
	  	 	3,160,320	 	  	 	1.1260	% 
	 China TH Capital Limited
中国泰合资本有限公司 
	  	 	632,064	 	  	 	0.2252	% 
	 Harmonic Century Limited
	  	 	4,740,480	 	  	 	1.6889	% 
	 RXD International. Ltd
	  	 	948,095	 	  	 	0.3378	% 
	 Total
	  	 	280,677,242	 	  	 	100.0000	% 

  

					
		 	Schedule IV	 	Share Purchase Agreement

 SCHEDULE V 

ADDRESS FOR NOTICES 
 If to the
Warrantors and Partnerships: 
  

			
	 Address:
	 	Building 10A, No 3, Youyou Shijiguangchang, No 428, Yanggaonanlu, Pudong New District, Shanghai
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to Warburg Pincus Cango Fintech Investment Company Limited :  

 

			
	 Address:
	 	c/o Warburg Pincus Asia LLC, Suite 6703, 67th Floor., Two International Finance Centre, 8 Finance Street, Central, Hong Kong
	 Tel:
	 	[REDACTED]
	 Fax
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to PV Peacock Limited: 
  

			
	 Address:
	 	28th Floor, 28 Hennessy Road, Hong Kong
	 Tel:
	 	[REDACTED]
	 Fax
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to Zodiac One Limited: 
  

			
	 Address:
	 	28th Floor, 28 Hennessy Road, Hong Kong
	 Tel:
	 	[REDACTED]
	 Fax
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to Magic Spark Inc.: 
  

			
	 Address:
	 	Level 10, No. 156, Fuxingmennei Road, Xicheng, Beijing
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to TK Autolink Inc.: 
  

			
	 Address:
	 	Level 10, No. 156, Fuxingmennei Road, Xicheng, Beijing
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

  

					
		 	Schedule V	 	Share Purchase Agreement

 If to Tencent Mobility Limited: 
  

			
	 Address:
	 	Tencent Building, Kejizhongyi Road, High-tech Park, Nanshan, Shenzhen
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to Links Advance Holdings Limited: 
  

			
	 Address:
	 	34 Building, Block B, Shangdong Digital Valley, No. 8 Yard, Wangxi Road, Haidian Northeast, Beijing
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to Haitong International Investment Holdings Limited: 

 

			
	 Address:
	 	Level 18, Li Bao Chun Building, No. 189 Defu Road Middle, Hong Kong
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to Harbourside 1712 Limited: 
  

			
	 Address:
	 	Level 12, AIA Central, 1 Connaught Road Central, Central, Hong Kong
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to China TH Capital Limited
(中国泰合资本有限公司): 

 

			
	 Address:
	 	Level 38, Yueyang Square, No. 1601 Nanjing Road West, Jing’an, Shanghai
	 Tel:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

 If to Harmonic Century Limited: 
  

			
	 Address:
	 	Room 15, 15/F, Hutchison House, Central, Hong Kong
	 Tel:
	 	[REDACTED]
	 Email:
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

  

					
		 	Schedule V	 	Share Purchase Agreement

 If to RXD International. Ltd: 
  

			
	 Address:
	 	A Block, 7 Building, Technology Park, Shenzhen Bay, No. 1819 Shahe Road West, Yuehai Street, Nanshan, Shenzhen
	 Tel:
	 	[REDACTED]
	 Fax
	 	[REDACTED]
	 Attention:
	 	[REDACTED]

  

					
		 	Schedule V	 	Share Purchase AgreementExhibit 10.1

 

IMMUNOGEN, INC.

 

2018 EMPLOYEE, DIRECTOR AND CONSULTANT EQUITY INCENTIVE PLAN

 

1.                                      DEFINITIONS.

 

Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this ImmunoGen, Inc. 2018 Employee, Director and Consultant Equity Incentive Plan, have the following meanings:

 

Administrator means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means the Committee.

 

Affiliate means a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means an agreement between the Company and a Participant delivered pursuant to the Plan, in such form as the Administrator shall approve.

 

Board of Directors means the Board of Directors of the Company.

 

Cause shall include (and is not limited to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance or non-feasance of duty, unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate, and conduct substantially prejudicial to the business of the Company or any Affiliate provided, however that any provision in an agreement between the Participant and the Company or an Affiliate, which contains a conflicting definition of “cause” for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to that Participant.  The determination of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company.

 

Change of Control means the occurrence of any of the following events:

 

(i)                                     Ownership.  Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities (excluding for this purpose any such voting securities held by the Company or its Affiliates or by any employee benefit plan of the Company)

 

 

pursuant to a transaction or a series of related transactions which the Board of Directors does not approve; or

 

(ii)           Merger/Sale of Assets.  (A) A merger or consolidation of the Company whether or not approved by the Board of Directors, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such corporation, as the case may be, outstanding immediately after such merger or consolidation; or (B) the sale or disposition by the Company of all or substantially all of the Company’s assets in a transaction requiring shareholder approval; or

 

(iii)          Change in Board Composition.  A change in the composition of the Board of Directors, as a result of which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of March 28, 2018, or (B) are elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company);

 

provided, that if any payment or benefit payable hereunder upon or following a Change of Control would be required to comply with the limitations of Section 409A(a)(2)(A)(v) of the Code in order to avoid an additional tax under Section 409A of the Code, such payment or benefit shall be made only if such Change in Control constitutes a change in ownership or control of the Company, or a change in ownership of the Company’s assets in accordance with Section 409A of the Code.

 

Code means the United States Internal Revenue Code of 1986, as amended, including any successor statute, regulation and guidance thereto.

 

Committee means the committee of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.

 

Common Stock means shares of the Company’s common stock, $.01 par value per share.

 

Company means ImmunoGen, Inc., a Massachusetts corporation.

 

Consultant means any natural person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates, provided that such services are

 

2

 

not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s or its Affiliates’ securities.

 

Disability or Disabled means permanent and total disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan.

 

Fair Market Value of a Share of Common Stock means:

 

(1)                                 If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite tape or other comparable reporting system for the trading day on the applicable date, and if such applicable date is not a trading day, the last market trading day prior to such date;

 

(2)                                 If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the trading day on which Common Stock was traded on the applicable date, and if such applicable date is not a trading day, the last market trading day prior to such date; and

 

(3)                                 If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall determine in compliance with applicable laws.

 

Full Value Award means a Stock Grant or other Stock-Based Award whose intrinsic value is not solely dependent on appreciation in the price of the Common Stock after the date of grant.

 

ISO means an option meant to qualify as an incentive stock option under Section 422 of the Code.

 

Non-Qualified Option means an option which is not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified Option granted under the Plan.

 

3

 

Participant means an Employee, director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan. As used herein, “Participant” shall include “Participant’s Survivors” where the context requires.

 

Performance Based Award means a Stock Grant or Stock-Based Award which vests based on attainment of Performance Goals as set forth in Paragraph 9 hereof.

 

Performance Goals means performance goals determined by the Committee in its sole discretion and set forth in an Agreement.  The satisfaction of Performance Goals shall be subject to certification by the Committee. The Committee has the authority to take appropriate action with respect to the Performance Goals (including, without limitation, to make adjustments to the Performance Goals or determine the satisfaction of the Performance Goals, in each case, in connection with a Corporate Transaction) provided that any such actions do not otherwise violate the terms of the Plan.

 

Plan means this ImmunoGen, Inc. 2018 Employee, Director and Consultant Equity Incentive Plan.

 

Shares means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph 25 of the Plan.  The Shares issued under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.

 

Stock-Based Award means a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant.

 

Stock Grant means a grant by the Company of Shares under the Plan.

 

Stock Right means a right to Shares or the value of Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award.

 

Survivor means a deceased Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right by will or by the laws of descent and distribution.

 

2.                                      PURPOSES OF THE PLAN.

 

The Plan is intended to encourage ownership of Shares by Employees and directors of and certain Consultants to the Company and its Affiliates in order to attract and retain such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional

 

4

 

incentive for them to promote the success of the Company or of an Affiliate.  The Plan provides for the granting of ISOs, Non-Qualified Options, Stock Grants and Stock-Based Awards.

 

3.                                      SHARES SUBJECT TO THE PLAN.

 

(a)                                 The number of Shares which may be issued from time to time pursuant to this Plan shall be the sum of: (i) 7,500,000 shares of Common Stock and (ii) any shares of Common Stock that are represented by awards granted under the Company’s 2006 or 2016 Employee, Director and Consultant Equity Incentive Plan that are forfeited, expire or are cancelled without delivery of shares of Common Stock or which result in the forfeiture of shares of Common Stock back to the Company on or after June 20, 2018 (but in no event more than 19,500,000 Shares shall be added to the Plan pursuant to this clause (ii)), or the equivalent of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 25 of this Plan.

 

(b)                                 If an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire (at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan. Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by tender of Shares or if the Company’s or an Affiliate’s tax withholding obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitations set forth in Paragraph 3(a) above shall be the number of Shares that were subject to the Stock Right or portion thereof, and not the net number of Shares actually issued and any stock appreciation right to be settled in shares of Common Stock shall be counted in full against the number of Shares available for issuance under the Plan, regardless of the number of exercise gain shares issued upon settlement of the stock appreciation right. In addition, Shares repurchased by the Company with the proceeds of the option exercise price may not be reissued under the Plan.

 

(c)                                  For purposes of determining the number of Shares available for issuance under Paragraph 3(a) above, (i) for the grant of any Option or similar Stock-Based Award one Share for each Share actually subject to such Option or similar Stock-Based Award shall be deducted, and (ii) for the grant of any Full Value Award, one and one-quarter (1.25) Shares for each Share actually subject to any such Full Value Award shall be deducted.  If a Full Value Award expires, is forfeited, or otherwise lapses, the Shares that were subject to the Full Value Award shall be restored to the total number of Shares available for grant as were deducted as Full Value Awards pursuant to this paragraph.  Except in the case of death, disability or Change of Control, or as provided in the next sentence, no Stock Right shall vest, and no right of the Company to restrict or reacquire Shares subject to Full Value Awards shall lapse, less than one (1) year from the date of grant.  Notwithstanding the foregoing, Stock Rights may be granted having time-based vesting of less than one (1) year from the date of grant so long as no more than five percent (5%) of the Shares reserved for issuance under the Plan pursuant to Paragraph 3(a) above (as adjusted under Paragraph 25 of this Plan) may be granted in the aggregate pursuant to such awards.

 

5

 

4.                                      ADMINISTRATION OF THE PLAN.

 

The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee, in which case the Committee shall be the Administrator.  Subject to the provisions of the Plan, the Administrator is authorized to:

 

a.                                      Interpret the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary or advisable for the administration of the Plan;

 

b.                                      Determine which Employees, directors and Consultants shall be granted Stock Rights;

 

c.                                       Determine the number of Shares for which a Stock Right or Stock Rights shall be granted provided, that the aggregate grant date fair value of Shares to be granted to any non-employee director under the Plan in any calendar year may not exceed $500,000 dollars except that the foregoing limitation on Stock Rights granted to non-employee directors shall not apply to Stock Rights made pursuant to an election by a non-employee director to receive the Stock Right in lieu of cash for all or a portion of cash fees to be received for service on the Board of Directors or any Committee thereof.

 

d.                                      Specify the terms and conditions upon which a Stock Right or Stock Rights may be granted;

 

e.                                       Make any adjustments in the Performance Goals included in any Performance-Based Awards;

 

f.                                        Amend any term or condition of any outstanding Stock Right, other than reducing the exercise price or purchase price or extending the expiration date of an Option, provided that (i) such term or condition as amended is not prohibited by the Plan; (ii) any such amendment shall not impair the rights of a Participant under any Stock Right previously granted without such Participant’s consent or in the event of death of the Participant the Participant’s Survivors; and (iii) any such amendment shall be made only after the Administrator determines whether such amendment would cause any adverse tax consequences to the Participant, including, but not limited to, the annual vesting limitation contained in Section 422(d) of the Code and described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant to Section 409A of the Code; and

 

g.                                       Adopt any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company or to Plan Participants or to otherwise facilitate the administration of the Plan, which sub-plans may include additional

 

6

 

restrictions or conditions applicable to Stock Rights or Shares issuable pursuant to a Stock Right;

 

provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of (i) preserving the tax status under Section 422 of the Code of those Options which are designated as ISOs; and (ii) not causing any adverse tax consequences under Section 409A of the Code.  Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee.  In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.

 

To the extent permitted under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it; provided that only a Committee consisting solely of non-employee directors (or the full Board when only non-employee directors are present and voting) shall have the authority to grant Options, Stock Grants or Stock-Based Awards to non-employee directors, or to amend the terms of any such awards in a manner that would accelerate the exercisability or vesting of, or lapsing of any right by the Company to restrict or reacquire Shares subject to, all or any portion of any such award. The Board of Directors or the Committee may revoke any such allocation or delegation at any time.

 

5.                                      ELIGIBILITY FOR PARTICIPATION.

 

The Administrator will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be an Employee, director or Consultant of the Company or of an Affiliate at the time a Stock Right is granted.  Notwithstanding the foregoing, the Administrator may authorize the grant of a Stock Right to a person not then an Employee, director or Consultant of the Company or of an Affiliate; provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right.  ISOs may be granted only to Employees who are deemed residents of the United States for tax purposes.  Non-Qualified Options, Stock Grants and Stock-Based Awards may be granted to any Employee, director or Consultant of the Company or an Affiliate.  The granting of any Stock Right to any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock Rights or any grants under any other benefit plan established by the Company or any Affiliate for Employees, directors or Consultants.

 

6.                                      TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be set forth in writing in an Option Agreement, duly executed by the Company (or provided in electronic form by the Company) and, to the extent required by law or requested by the Company, by the Participant.  The Administrator may provide that Options be

 

7

 

granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto.  The Option Agreements shall be subject to at least the following terms and conditions:

 

a.                                      Non-Qualified Options:  Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified Option:

 

i.                                          Exercise Price: Each Option Agreement shall state the exercise price (per share) of the Shares covered by each Option, which exercise price shall be determined by the Administrator but shall not be less than the Fair Market Value per share of Common Stock on the date of grant of the Option.

 

ii.                                       Number of Shares: Each Option Agreement shall state the number of Shares to which it pertains.

 

iii.            Vesting Periods:  Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, provided that each Non-Qualified Option shall terminate not more than ten years from the date of the grant.  Each Option Agreement may provide that the Option rights accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated performance goals or events.

 

iv.            Option Conditions:  Exercise of any Option may be conditioned upon the Participant’s execution of a Share purchase agreement in form satisfactory to the Administrator providing for certain protections for the Company and its other shareholders, including requirements that:

 

A.            The Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may be restricted; and

 

B.            The Participant or the Participant’s Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any applicable restrictions.

 

b.                                      ISOs:  Each Option intended to be an ISO shall be issued only to an Employee and be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal Revenue Service:

 

i.                                          Minimum standards:  The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(a) above.

 

8

 

ii.                                       Exercise Price:  Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of the Code:

 

A.                                    10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 100% of the Fair Market Value per share of the Common Stock on the date of the grant of the ISO; or

 

B.                                    More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 110% of the Fair Market Value per share of the Common Stock on the date of the grant of the ISO.

 

iii.            Term of Option:  For Participants who own:

 

A.                                    10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier time as the Option Agreement may provide; or

 

B.                                    More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than five years from the date of the grant or at such earlier time as the Option Agreement may provide.

 

iv.                                   Limitation on Yearly Exercise:  The Option Agreements shall restrict the amount of ISOs which may become exercisable in any calendar year (under this or any other ISO plan of the Company or an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed $100,000.

 

7.                                      TERMS AND CONDITIONS OF STOCK GRANTS.

 

Each Stock Grant to a Participant shall state the principal terms in an Agreement, duly executed by the Company (or provided in electronic form by the Company) and, to the extent required by law or requested by the Company, by the Participant.  The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards:

 

9

 

(a)                                 Each Agreement shall state the purchase price (per share), if any, of the Shares covered by each Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration required by the Massachusetts General Corporation Law on the date of the grant of the Stock Grant;

 

(b)                                 Each Agreement shall state the number of Shares to which the Stock Grant pertains;

 

(c)                                  Each Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant, including the time period or attainment of Performance Goals upon which such rights shall accrue and the purchase price therefor, if any; and

 

(d)                                 Dividends (other than stock dividends to be issued pursuant to Section 25 of the Plan) may accrue but shall not be paid prior to the time, and only to the extent that, the restrictions or rights to reacquire the Shares subject to the Stock Grant lapse.

 

8.                                      TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS.

 

The Administrator shall have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and the grant of stock appreciation rights, phantom stock awards, stock units deferred or otherwise.  The principal terms of each Stock-Based Award shall be set forth in an Agreement, duly executed by the Company (or provided in electronic form by the Company) and, to the extent required by law or requested by the Company, by the Participant.  The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company.  Each Agreement shall include the terms of any right of the Company including the right to terminate the Stock-Based Award without the issuance of Shares, the terms of any vesting conditions, Performance Goals or events upon which Shares shall be issued provided that dividends (other than stock dividends to be issued pursuant to Section 25 of the Plan) or dividend equivalents may accrue but shall not be paid prior to and only to the extent that, the Shares subject to the Stock-Based Award vest.  Under no circumstances may the Agreement covering stock appreciation rights (a) have an exercise price (per share) that is less than the Fair Market Value per share of Common Stock on the date of grant or (b) expire more than ten years following the date of grant.

 

The Company intends that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet the requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated in accordance with Section 409A so that any compensation deferred under any Stock-Based Award (and applicable investment earnings) shall not be included in income under Section 409A of the Code.  Any ambiguities in the Plan shall be construed to effect the intent as described in this Paragraph 8.

 

10

 

9.                                      PERFORMANCE BASED AWARDS.

 

The Committee shall determine whether, with respect to a performance period, the applicable Performance Goals have been met with respect to a given Participant and, if they have, to so certify and ascertain the amount of the applicable Performance-Based Award.  No Performance-Based Awards will be issued for such performance period until such certification is made by the Committee.  The number of Shares issued in respect of a Performance-Based Award determined by the Committee for a performance period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after the end of such performance period and any dividends (other than stock dividends to be issued pursuant to Section 25 of the Plan) or dividend equivalents that accrue shall only be paid in respect of the number of Shares earned in respect of a Performance-Based Award.

 

10.                               EXERCISE OF OPTIONS AND ISSUE OF SHARES.

 

An Option (or any part or installment thereof) shall be exercised by giving written notice (in a form acceptable to the Administrator which may include electronic notice) to the Company or its designee, together with provision for payment of the aggregate exercise price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement.  Such notice shall be signed by the person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement.  Payment of the exercise price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock having a Fair Market Value equal as of the date of the exercise to the cash exercise price of the Option and held for at least six months (if required to avoid negative accounting treatment), or (c) at the discretion of the Administrator, by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of shares having a Fair Market Value equal as of the date of exercise to the aggregate exercise price of the number of Shares being exercised, or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator, or (e) at the discretion of the Administrator, by any combination of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code.

 

The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s Survivors, as the case may be).  In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect to the Shares prior to their issuance.  The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

11

 

The Administrator shall have the right to accelerate the date of exercise of any installment of any Option; provided that the Administrator shall not accelerate the exercise date of any installment of any Option granted to an Employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to Paragraph 28) without the prior approval of the Employee, if such acceleration would violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).

 

The Administrator may, in its discretion, amend any term or condition of an outstanding Option provided (i) such term or condition as amended is not prohibited by the Plan, (ii) any such amendment shall be made only with the consent of the Participant to whom the Option was granted, or in the event of the death of the Participant, the Participant’s Survivors, if the amendment is adverse to the Participant, and (iii) any such amendment of any Option shall be made only after the Administrator determines whether such amendment would constitute a “modification” of any Option which is an ISO (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holder of such Option including, but not limited to, pursuant to Section 409A of the Code.

 

11.                               ACCEPTANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

A Stock Grant or Stock-Based Award (or any part or installment thereof) shall be accepted by executing the applicable Agreement and delivering it to the Company or its designee, together with provision for payment of the full purchase price, if any, in accordance with this Paragraph for the Shares as to which such Stock Grant or Stock-Based Award is being accepted, and upon compliance with any other conditions set forth in the applicable Agreement.  Payment of the purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being accepted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) and having a Fair Market Value equal as of the date of acceptance of the Stock Grant or Stock Based-Award to the purchase price of the Stock Grant or Stock-Based Award, or (c) at the discretion of the Administrator, by any combination of (a) and (b) above; or (d) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine.

 

The Company shall then, if required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or Stock-Based Award was accepted to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set forth in the applicable Agreement.  In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect to the Shares prior to their issuance.

 

12

 

12.          RIGHTS AS A SHAREHOLDER.

 

No Participant to whom a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right, except after due exercise of the Option or issuance of Shares as set forth in any Agreement, and tender of the aggregate exercise or full purchase price, if any, for the Shares being purchased pursuant to such exercise or acceptance and registration of the Shares in the Company’s share register in the name of the Participant.

 

13.          ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS.

 

By its terms, a Stock Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement; provided that no Stock Right may be transferred by a Participant for value.  Notwithstanding the foregoing, an ISO transferred except in compliance with clause (i) above shall no longer qualify as an ISO.  The designation of a beneficiary of a Stock Right by a Participant, with the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited by this Paragraph.  Except as provided above, a Stock Right shall only be exercisable or may only be accepted, during the Participant’s lifetime, by such Participant (or by his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process.  Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or the levy of any attachment or similar process upon a Stock Right, shall be null and void.

 

14.          EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an Employee, director or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

a.             A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate (for any reason other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 15, 16, and 17, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only within such term as the Administrator has designated in a Participant’s Option Agreement.

 

b.             Except as provided in Subparagraph (c) below, or Paragraph 16 or 17, in no event may an Option intended to be an ISO, be exercised later than three months after the Participant’s termination of employment.

 

13

 

c.             The provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s Disability or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option.

 

d.                                      Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of director status or termination of consultancy, but prior to the exercise of an Option, the Administrator determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would constitute Cause, then such Participant shall forthwith cease to have any right to exercise any Option.

 

e.                                       A Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide; provided, however, that, for ISOs, any leave of absence granted by the Administrator of greater than ninety days, unless pursuant to a contract or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option on the 181st day following such leave of absence.

 

f.                                        Except as required by law or as set forth in a Participant’s Option Agreement, Options granted under the Plan shall not be affected by any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues to be an Employee, director or Consultant of the Company or any Affiliate.

 

15.                               EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her outstanding Options have been exercised:

 

a.                                      All outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated for Cause will immediately be forfeited.

 

14

 

b.                                      Cause is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s finding of Cause occur prior to termination.  If the Administrator determines, subsequent to a Participant’s termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct which would constitute Cause, then the right to exercise any Option is forfeited.

 

16.                               EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise provided in a Participant’s Option Agreement:

 

a.                                      A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant:

 

(i)                                     To the extent that the Option has become exercisable but has not been exercised on the date of Disability; and

 

(ii)                                  In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of Disability of any additional vesting rights that would have accrued on the next vesting date had the Participant not become Disabled.  The proration shall be based upon the number of days accrued in the current vesting period prior to the date of Disability.

 

b.                                      A Disabled Participant may exercise such rights only within the period ending one year after the date of the Participant’s Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not become Disabled and had continued to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option.

 

c.                                       The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).  If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.

 

17.                               EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise provided in a Participant’s Option Agreement:

 

15

 

a.                                      In the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors:

 

(i)                                     To the extent that the Option has become exercisable but has not been exercised on the date of death; and

 

(ii)                                  In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant not died.  The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death.

 

b.                                      If the Participant’s Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died and had continued to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option.

 

18.                               EFFECT OF TERMINATION OF SERVICE ON STOCK GRANTS AND STOCK-BASED AWARDS.

 

In the event of a termination of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such offer shall terminate.

 

For purposes of this Paragraph 18 and Paragraph 19 below, a Participant to whom a Stock Grant or a Stock-Based Award has been issued under the Plan who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.

 

In addition, for purposes of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the Company and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an Employee, director or Consultant of the Company or any Affiliate.

 

16

 

19.                               EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise provided in a Participant’s Agreement, in the event of a termination of service (whether as an Employee, director or Consultant), other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 20, 21, and 22, respectively, before all forfeiture provisions or Company rights of repurchase shall have lapsed, then the Company shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant or Stock-Based Award as to which the Company’s forfeiture or repurchase rights have not lapsed.

 

20.                               EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise provided in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause:

 

a.                                      All Shares subject to any Stock Grant or a Stock-Based Award that remain subject to forfeiture provisions or as to which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated for Cause.

 

b.                                      Cause is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s finding of Cause occur prior to termination.  If the Administrator determines, subsequent to a Participant’s termination of service, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct which would constitute Cause, then all shares subject to any Stock Grant or Stock-Based Award that remained subject to forfeiture provisions or as to which the Company had a repurchase right on the date of termination shall be immediately forfeited to the Company.

 

21.                               EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise provided in a Participant’s Agreement, the following rules apply if a Participant ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of Disability as would have lapsed had the Participant not become

 

17

 

Disabled.  The proration shall be based upon the number of days accrued prior to the date of Disability.

 

The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).  If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.

 

22.                               EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise provided in a Participant’s Agreement, the following rules apply in the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate:  to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of death, they shall be exercisable; provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of death as would have lapsed had the Participant not died.  The proration shall be based upon the number of days accrued prior to the Participant’s death.

 

23.                               PURCHASE FOR INVESTMENT.

 

Unless the offering and sale of the Shares to be issued upon the particular exercise or acceptance of a Stock Right shall have been effectively registered under the Securities Act of 1933, as now in force or hereafter amended (the “1933 Act”), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been fulfilled:

 

a.                                      The person(s) who exercise(s) or accept(s) such Stock Right shall warrant to the Company, prior to the receipt of such Shares, that such person(s) are acquiring such Shares for their own respective accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be endorsed upon the certificate(s) evidencing their Shares issued pursuant to such exercise or such grant:

 

“The shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and

 

18

 

(2) there shall have been compliance with all applicable state securities laws.”

 

b.                                      At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular exercise or acceptance in compliance with the 1933 Act without registration thereunder.

 

24.                               DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all Stock Grants and Stock-Based Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance as of the date immediately prior to such dissolution or liquidation.  Upon the dissolution or liquidation of the Company, any outstanding Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the applicable Agreement.

 

25.                               ADJUSTMENTS.

 

Upon the occurrence of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement:

 

a.                                      Stock Dividends and Stock Splits.  If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, each Stock Right and the number of shares of Common Stock deliverable thereunder shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made, including in the exercise or purchase price per share and Performance Goals applicable to outstanding Performance-Based Awards, to reflect such events.  The number of Shares subject to the limitations in Paragraph 3(a) and 4(c) shall also be proportionately adjusted upon the occurrence of such events.

 

b.                                      Corporate Transactions.  If the Company is to be consolidated with or acquired by another entity in a merger, consolidation, or sale of all or substantially all of the Company’s assets or the acquisition of all of the outstanding voting stock of the Company in a single transaction or a series of related transactions by a single entity other than a transaction to merely change the state of incorporation (a “Corporate Transaction”), the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”), shall, as to

 

19

 

outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options must be exercised (either (A) to the extent then exercisable, or (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end of which period the Options shall terminate; or (iii) terminate such Options in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable, or (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph) less the aggregate exercise price thereof.  For purposes of determining the payments to be made pursuant to Subclause (iii) above, in the case of a Corporate Transaction the consideration for which, in whole or in part, is other than cash, the consideration other than cash shall be valued at the fair value thereof as determined in good faith by the Board of Directors.

 

With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall either (i) make appropriate provisions for the continuation of such Stock Grants on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) terminate all Stock Grants in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to the holder of the number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any forfeiture or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived upon such Corporate Transaction).

 

In taking any of the actions permitted under this Paragraph 25(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all Stock Rights held by a Participant, or all Stock Rights of the same type, identically.

 

c.                                       Recapitalization or Reorganization.  In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled to receive for the price paid upon such exercise or acceptance, if any, the number of replacement securities which would have been received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.

 

d.                                      Adjustments to Stock-Based Awards.  Upon the happening of any of the events described in Subparagraphs a, b or c above, any outstanding Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs.  The Administrator or the Successor Board shall determine the specific adjustments to be made under this Paragraph

 

20

 

25, including, but not limited to the effect if any, of a Change of Control and, subject to Paragraph 4, its determination shall be conclusive.

 

e.                                       Modification of Options.  Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph a, b or c above with respect to Options shall be made only after the Administrator determines whether such adjustments would constitute a “modification” of any ISOs (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holders of such Options.  If the Administrator determines that such adjustments made with respect to Options would constitute a modification or other adverse tax consequence, it may refrain from making such adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment with respect to the Option.  This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).

 

26.                               ISSUANCES OF SECURITIES.

 

Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock 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 Stock Rights.  Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.

 

27.                               FRACTIONAL SHARES.

 

No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional shares equal to the Fair Market Value thereof.

 

28.                               CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

 

The Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant’s ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an Employee of the Company or an Affiliate at the time of such conversion.  At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such conditions shall not be inconsistent with this Plan.  Nothing in the Plan shall be deemed to give any Participant the right to have such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator takes appropriate action.

 

21

 

The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such conversion.

 

29.          WITHHOLDING.

 

In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary, wages or other remuneration in connection with the exercise or acceptance of a Stock Right or upon the lapsing of any forfeiture provision or right of repurchase or for any other reason required by law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock is authorized by the Administrator (and permitted by law).  For purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise.  If the Fair Market Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer.

 

30.          NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

 

Each Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any shares acquired pursuant to the exercise of an ISO.  A Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale or gift) of such shares before the later of (a) two years after the date the Employee was granted the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code.  If the Employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.

 

31.          TERMINATION OF THE PLAN.

 

The Plan will terminate on March 28, 2028.  The Plan may be terminated at an earlier date by vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect any Agreements executed prior to the effective date of such termination.  Termination of the Plan shall not affect any Stock Rights theretofore granted.

 

32.          AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be amended by the shareholders of the Company.  The Plan may also be amended by the Administrator, including, without limitation, to the extent necessary to qualify any

 

22

 

or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment as may be afforded incentive stock options under Section 422 of the Code (including deferral of taxation upon exercise), and to the extent necessary to qualify the shares issuable upon exercise or acceptance of any outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan for listing on any national securities exchange or quotation in any national automated quotation system of securities dealers, provided that any amendment approved by the Administrator which the Administrator determines is of a scope that requires shareholder approval shall also be subject to obtaining such shareholder approval.  Other than as set forth in Paragraph 25 of the Plan, the Administrator may not without shareholder approval reduce the exercise price of an Option or cancel any outstanding Option in exchange for a replacement option having a lower exercise price, any Stock Grant, any other Stock-Based Award or for cash. In addition, the Administrator may not take any other action that is considered a direct or indirect “repricing” for purposes of the shareholder approval rules of the applicable securities exchange or inter-dealer quotation system on which the Shares are listed, including any other action that is treated as a repricing under generally accepted accounting principles.  Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously granted to him or her, unless such amendment is required by applicable law or necessary to preserve the economic value of such Stock Right.  With the consent of the Participant affected, the Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan.  In the discretion of the Administrator, outstanding Agreements may be amended by the Administrator in a manner which is not adverse to the Participant.  Notwithstanding the foregoing, except in the case of death, disability or Change of Control, outstanding Agreements may not be amended by the Administrator (or the Board) in a manner that would accelerate the exercisability or vesting of, or lapsing of any right by the Company to restrict or reacquire Shares subject to, all or any portion of any Option, Stock Grant or other Stock-Based Award.  Nothing in this Paragraph 32 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph 25.

 

33.          EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period of time.

 

34.          CLAWBACK.

 

Notwithstanding anything to the contrary contained in this Plan, the Company may recover from a Participant any compensation received from any Stock Right (whether or not settled) or cause a Participant to forfeit any Stock Right (whether or not vested) in the event that the Company’s Incentive Compensation Recoupment Policy then in effect is triggered.

 

23

 

35.          SECTION 409A.

 

If a Participant is a “specified employee” as defined in Section 409A of the Code (and as applied according to procedures of the Company and its Affiliates) as of his separation from service, to the extent any payment under this Plan or pursuant to the grant of a Stock-Based Award constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A of the Code), and to the extent required by Section 409A of the Code, no payments due under this Plan or pursuant to a Stock-Based Award may be made until the earlier of: (i) the first day of the seventh month following the Participant’s separation from service, or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month period shall be paid in the aggregate in a lump sum, without interest, on the first day of the seventh month following the Participant’s separation from service.

 

The Administrator shall administer the Plan with a view toward ensuring that Stock Rights under the Plan that are subject to Section 409A of the Code comply with the requirements thereof and that Options under the Plan be exempt from the requirements of Section 409A of the Code, but neither the Administrator nor any member of the Board, nor the Company nor any of its Affiliates, nor any other person acting hereunder on behalf of the Company, the Administrator or the Board shall be liable to a Participant or any Survivor by reason of the acceleration of any income, or the imposition of any additional tax or penalty, with respect to a Stock Right, whether by reason of a failure to satisfy the requirements of Section 409A of the Code or otherwise.

 

36.          GOVERNING LAW.

 

This Plan shall be construed and enforced in accordance with the law of The Commonwealth of Massachusetts.

 

24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00284-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00284-of-00352.parquet"}]]