Document:

Document

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), dated as of June 18, 2020 and effective as of July 1, 2020 (the “Effective Date”), between News Corporation, a Delaware corporation (the “Company”), with offices at 1211 Avenue of the Americas, New York, NY 10036, and Susan Panuccio, residing at the address that is on file with the Company (the “Executive”).
W I T N E S S E T H:
WHEREAS, the Executive is currently employed as the Chief Financial Officer of the Company pursuant to an employment agreement between the Company and the Executive, dated as of February 23, 2017 (the “Prior Agreement”); and
WHEREAS, the Company and the Executive desire to amend and restate the Prior Agreement.
NOW, THEREFORE, in consideration of the premises and mutual agreements hereinafter contained, the parties hereto agree as follows:
1. Duties. 
(a) The Company agrees to employ the Executive and the Executive agrees to be employed by the Company for the Term (as hereinafter defined). During the Term, the Executive shall: (i) have the title and the duties of Chief Financial Officer of the Company; and (ii) report directly to the Chief Executive Officer of the Company. 
(b) If the Executive is elected as a member of the board of directors or an officer of the Company or any subsidiaries or affiliates, the Executive agrees to serve in such capacity or capacities without additional compensation. 
(c) During the Term the Executive shall devote substantially all of the Executive’s business time and attention and give the Executive’s best efforts and skill to furthering the business and interests of the Company and to the performance of executive duties consistent with the Executive’s position as Chief Financial Officer of the Company and the terms of this Agreement.
2. Term. “Term” as used herein shall mean the period from the Effective Date through June 30, 2023; provided, however, if the Term is terminated earlier in accordance with this Agreement, the Term shall mean the period from the Effective Date through the effective date of such earlier termination. The Term shall be terminated earlier only in accordance with Sections 8 and 9. Not later than six (6) months prior to the end of the Term, the parties hereto shall begin discussions to determine whether they are interested in continuing the employment of the Executive after the Term, and if so, they shall enter into good faith negotiations with respect to such continuing employment.

Following the completion of the Term, except to the extent set forth in this Agreement,  (i) the provisions of this Agreement will automatically expire and (ii) in the absence of a new written employment contract signed by both the Executive and an authorized representative of the Company, any continued employment with the Company will be at will, of no fixed term and may be terminated (with at least ten (10) business days’ prior written notice) at any time by either the Executive or the Company for any or no reason. 
3. Location. The Executive shall be based and essentially render services in the New York City metropolitan area at the principal office maintained by the Company in such area. The Executive will travel as reasonably required to perform the Executive’s functions hereunder.
4. Compensation. 
(a) Base Salary. As compensation for the Executive’s services, the Executive shall receive a base salary at an annual rate of not less than $1,400,000 (the “Base Salary”) to be paid in the same manner as other senior executives of the Company are paid (which shall be no less frequently than monthly). 
(b) Annual Bonus. In addition, the Executive will be eligible to receive an annual bonus (the “Annual Bonus”) with a target (the “Annual Bonus Target”) of not less than $2,000,000. The actual payout of the Annual Bonus will be calculated based upon the metrics and targets established and approved by the Compensation Committee. Any Annual Bonus granted shall be paid in cash at the same time as other senior executives of the Company are paid, and in all events no later than March 15 of the calendar year following the calendar year in which the applicable fiscal year ends.
(c) Long-Term Incentive. The Executive shall also be entitled to receive an annual award under the Company’s 2013 Long-Term Incentive Plan, as amended and restated, or any other Company performance-based long-term equity-based incentive program (the “Plan”), in accordance with the terms and conditions of the Plan, that has a target value of not less than $2,200,000 (the “Equity Bonus”). The Equity Bonus shall be in a form and subject to terms and conditions, including claw-back provisions, determined by the Company and consistent with those of equity awards to comparable senior executives of the Company. 
5.  Other Benefits. The Executive shall be entitled to the following benefits (collectively, the “Benefits”):
(a) The Executive shall be entitled to participate in all of the following incentive or benefit plans or arrangements presently in effect or hereafter adopted by the Company or its applicable affiliates and to such other perquisites as are applicable to other senior executives of the Company of equal rank, including, but not limited to, any profit-sharing, pension, group medical, dental, disability and life insurance or other similar benefit plans, subject to the terms of the applicable plans and arrangements. 
(b) The Executive shall be entitled to six (6) weeks of paid vacation annually, subject to the terms of the Company’s vacation policy. All accrued vacation days should be used in the year in which they are earned as the Company does not allow carryover of unused vacation days or provide for a cash payout in respect of such days upon a termination of employment. 
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6. Business Expenses. During the Term, the Company shall pay, or reimburse the Executive for, all expenses reasonably and necessarily incurred by the Executive in connection with the Executive’s performance of the Executive’s duties hereunder. Such business expenses shall be reimbursed as provided in Section 23(f).
7. Confidentiality; Certain Restrictions/Covenants.
(a) The Executive shall hold all of the Company’s Confidential Information (as hereinafter defined) in strictest confidence, and will not, directly or indirectly, take, publish, use or disclose any of the Company’s Confidential Information at any time after the termination of the Executive’s employment for any reason, except as may be required by law, provided that upon learning of any such legal requirement, the Executive shall promptly provide the Company with written notice to the Company of any such legal requirement in enough time for it to try to obtain an appropriate protective order or other remedy. For purposes of this Agreement, the phrase “Confidential Information” means personal information regarding past and present executives of the Company and its affiliates, including their family members, all trade secrets and information on costs, pricing, and materials, supplier information, customer lists and customer information, vendor lists and vendor information, employee lists and employee information, market share reports, customer contract terms and rates, account management, financial information, audit information, research, development, marketing plans, promotion plans, and/or compilations of information that was disclosed to or acquired by the Executive during or in the course of the Executive’s employment that relates to the business of the Company and is not generally available to the public or generally known in the Company’s industry. 
(b) Confidential Information does not include that information which the Executive can affirmatively prove by clear and convincing evidence:  (i) is, at the time of disclosure, in the public domain other than as a result of disclosure (whether by act or omission) by the Executive or by other persons to whom the Executive has disclosed such information; (ii) was available to the Executive without an obligation of confidentiality prior to the Executive’s employment with the Company; (iii) is independently developed by the Executive having had no access to any Confidential Information and without the use of any such information; or (iv) becomes available to the Executive without an obligation of confidentiality from a source, other than the Company, having the legal right to disclose such information. 
(c) Pursuant to 18 U.S.C. § 1833(b), the Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company or any of its subsidiaries that (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to the Executive’s attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Executive files a lawsuit for retaliation by the Company or any of its subsidiaries for reporting a suspected violation of law, the Executive may disclose the trade secret to the Executive’s attorney and use the trade secret information in the court proceeding, if the Executive files any document containing the trade secret under seal and does not disclose the trade secret except under court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section.
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(d) All papers, books, records, files, proposals or other documents, and all computer software, software applications, files, databases, and the like relating to the business and affairs of the Company or which contain Confidential Information, whether prepared by the Executive or otherwise coming into the Executive’s possession, shall remain the exclusive property of the Company and shall not be removed from its premises except as necessary for the performance of the Executive’s responsibilities and in furtherance of the interests of the Company. Upon the termination of the Executive’s employment for any reason, the Executive will immediately surrender and turn over to the Company any property of the Company which the Executive may have in the Executive’s possession, custody or control, no matter where located, and whether in electronic, paper or other format, including, but not limited to, records, files, drawings, documents, models, disks, computers and other equipment, and the Executive shall not keep any copies or portions thereof, including any material contained on the Executive’s personal computer which is currently located at the Executive’s residence, if any, including any files the Executive may have saved or downloaded from the Company’s computer system. 
(e) While the Executive is employed by the Company and after the Executive’s employment terminates for whatever reason, the Executive agrees not to publicly criticize the Company, its corporate affiliates, or subsidiaries, and their respective officers, directors, stockholders or employees and agrees further not to cause harm to the Company by speaking of the Company, affiliates, officers, shareholders or employees in an unflattering way. This requirement will not prohibit the Executive from providing truthful testimony if required by law, and subject to the Executive’s obligation to provide the Company prior notice of such legal requirement pursuant to Section 7(a). In addition, nothing in this Agreement or in any other agreement between the Executive and the Company will prohibit the Executive from reporting to any governmental agency or governmental entity information concerning possible violations of law or regulation.
(f) In order to protect the Company’s goodwill with its clients, vendors and employees, during the Term and for one (1) year following termination of the Executive’s employment for any reason, the Executive shall not, directly or indirectly, either personally or on behalf of any other entity (whether as a director, stockholder, owner, partner, consultant, principal, employee, agent or otherwise), engage in any of the following conduct: (a) canvass, solicit or accept any business on behalf of any of the Company’s competitors from any business or organization that had interacted with the Company during the last three (3) years of the Executive’s employment; (b) solicit or recruit for employment, hire, employ, attempt to employ, or engage or attempt to engage as a contractor or consultant any individual employed by the Company or its affiliates, or entice or suggest to such individual to terminate his or her employment with the Company; or (c) take any action which is intended, or would reasonably be expected to, adversely affect the Company, its subsidiaries, or their respective businesses, reputation, or relationship with their clients, business partners or vendors. 

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(g) During the Term, the Executive shall not engage, and shall not solicit any employees of the Company or its affiliates to engage, in any other commercial activities that may in any way interfere with the performance of the Executive’s duties or responsibilities to the Company. During the Term and for one (1) year following termination of the Executive’s employment for any reason, the Executive shall have no interest, directly or indirectly, in any business or prospective business (whether conducted by a natural person, partnership, corporation or other entity) whose products, services or activities materially compete or seek to compete, in whole or in part, with business conducted by the Company (a “Competing Business”) and the Executive shall perform no services for any person, partnership, corporation or other entity engaged in any such business. The foregoing does not prohibit the Executive’s ownership of less than one percent (1%) of the outstanding common stock of a company whose shares are publicly traded.
(h) The Executive shall at all times be subject to, comply with and carry out such rules, regulations, policies, directions and restrictions applicable to the Company’s employees generally as the Company may from time to time establish, including, without limitation, the Company’s Standards of Business Conduct, Electronic Communications Policy and Claw-back Policies, as well as those imposed by law. The Executive acknowledges that the Executive has received copies of such policies, and has reviewed, understands and will comply with such policies.
(i) The Executive acknowledges that the relationship between the Executive and the Company is exclusively that of employer and employee and that the Company’s obligations to the Executive are exclusively contractual in nature. The Company shall be the sole owner of all the fruits and proceeds of the Executive’s services hereunder, including, but not limited to, all ideas, concepts, formats, suggestions, developments, arrangements, designs, packages, programs, promotions and other intellectual properties which the Executive may create in connection with the Executive’s services hereunder and during the Term, free and clear of any claims by the Executive (or anyone claiming under the Executive) of any kind or character whatsoever (other than the Executive’s right to compensation hereunder). The Executive shall, at the request of the Company, execute such assignments, certificates or other instruments as the Company may from time to time deem necessary or desirable to evidence, establish, maintain, perfect, protect, enforce or defend its right, title and interest in or to any such properties.
(j) The Company shall have the right to use the Executive’s name, biography and likeness in connection with its business, including in advertising its products and services, and may grant this right to others, but not for use as a direct endorsement.
8. Termination by the Company. The Executive’s employment hereunder may be terminated by the Company without any breach of this Agreement only under the following circumstances:
(a) The Executive’s employment hereunder shall terminate upon the Executive’s death.

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(b) If, as a result of the Executive’s incapacity and disability due to physical or mental illness, the Executive fails to perform the Executive’s duties hereunder for a period of seven (7) months during the Term and is unable to provide the Company with a note from the Executive’s treating physician that provides for a definite and reasonable return to work date, the Company may terminate the Executive’s employment hereunder.
(c) The Company may terminate the Executive’s employment hereunder for “cause” (as hereinafter defined). For purposes of this Agreement, “cause” shall mean: (i) the Executive is convicted of, or pleads guilty or nolo contendere to, a felony or crime involving moral turpitude; (ii) the Executive engages in conduct that constitutes willful neglect or willful misconduct in carrying out the Executive’s duties under this Agreement, and such breach remains uncured following fifteen (15) days prior written notice given by the Company to the Executive specifying such breach, provided such breach is capable of being cured; (iii) the Executive has breached any material representation, warranty, covenant or term of this Agreement, including among other things, a breach of written Company policy, and such breach remains uncured following twenty-one (21) days’ prior written notice specifying such breach given by the Company to the Executive, provided such breach is capable of being cured; (iv) the Executive’s act of fraud or dishonesty in the performance of the Executive’s job duties; (v) the Executive intentionally engages in conduct which impacts negatively and materially on the reputation or image of the Company, its affiliates or any of their respective products; and/or (vi) the Executive’s use of or addiction to illegal drugs. 
(d) The Company may terminate the Executive’s employment other than for cause, death or disability, subject to Section 10(d).
(e) Any termination of the Executive’s employment by the Company (other than termination pursuant to subsection (a) of this Section 8) shall be communicated by a written Notice of Termination to the Executive. For purposes of this Agreement, a “Notice of Termination” shall mean a notice that shall indicate the specific termination provision in this Agreement relied upon and shall set forth in full detail the facts and circumstances claimed to provide the basis for termination of the Executive’s employment under the provision so indicated.
(f) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by the Executive’s death, the date of this death, or (ii) if the Executive’s employment is terminated pursuant to subsections (b), (c) or (d) of this Section 8 or by the Executive pursuant to Section 9, the date specified in the Notice of Termination. 
9.  Termination by the Executive.
(a) At the Executive’s option, and provided the following occurrences satisfy the “Good Reason” safe harbor within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Section 1.409A-1(n)(2)(ii) of the Treasury Regulations promulgated thereunder, the Executive may terminate the Executive’s employment without any breach of this Agreement only under the following circumstances:
(i) in the event of a material breach of the Agreement by the Company;
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(ii) if the Executive is required to be based and primarily render services in areas other than within 50 miles of the New York City metropolitan area; or
(iii) if there is a material diminution in the Executive’s duties thereby diminishing the Executive’s role (other than during a period of the Executive’s mental or physical incapacity). 
(b) Any Good Reason termination of the Executive’s employment by the Executive shall be communicated by a written Notice of Termination delivered to the Chief Human Resources Officer and the Chief Executive Officer of the Company within ninety (90) days of the condition giving rise to such Good Reason first occurring, and the Company shall have thirty (30) days from such notice to cure the condition giving rise to such Good Reason, as set forth in Section 1.409A-1(n)(ii)(2)(C) of the Treasury Regulations. If the Good Reason condition remains uncured following such cure period, in order to resign for Good Reason the Executive must actually terminate employment no later than thirty (30) days following the end of such cure period.
10. Compensation upon Termination.
(a) If the employment of the Executive is terminated pursuant to Section 8(a), by reason of the Executive’s death, the Company agrees to pay directly to the Executive’s surviving spouse (or to another recipient designated in writing by the Executive from time to time), or if the Executive’s spouse shall not survive the Executive, then to the legal representative of the Executive’s estate: (i) for a period of twelve (12) months (commencing with the Date of Termination) an amount equal to and payable at the same rate as the Executive’s then current Base Salary; (ii) any Annual Bonus payable but not yet paid with respect to any fiscal year ended prior to the Date of Termination (the “Unpaid Prior Year Bonus”), payable no later than the time specified in Section 4(b); (iii) a pro rata portion of the Annual Bonus Executive would have earned for the fiscal year of termination had no termination occurred (calculated based on the Annual Bonus Target and number of days the Executive was employed by the Company in the fiscal year during which the Date of Termination occurs compared to the total number of days in such fiscal year) (the “Pro-rated Current Year Bonus”), payable no later than the September 15 of the fiscal year following the fiscal year of the Date of Termination; and (iv) with respect to Equity Bonus awards or awards under the Plan, continued vesting of any Equity Bonus awards or awards under the Plan that were granted prior to the Date of Termination for a period of one (1) year following the Date of Termination, with payments made at the same times they would have been made had the Executive continued to be employed through such date (and, for the avoidance of doubt, any Equity Bonus awards that would not have been payable but for continued employment through such date shall be forfeited. The foregoing payments shall be in addition to what the Executive's spouse, beneficiaries or estate may be eligible to receive pursuant to any employee benefit plan or life insurance policy then provided to the Executive or maintained by the Company. The payments provided for in this Section 10(a) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive, the Executive’s surviving spouse or the legal representative of the Executive’s estate. 
(b) During any period that the Executive fails to perform the Executive’s duties hereunder as a result of incapacity and disability due to physical or mental illness, the Company 
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shall continue to provide to the Executive the then current Base Salary and the Benefits until the Executive returns to the Executive’s duties or until the Executive’s employment is terminated pursuant to Section 8(b); provided, however, that should the Executive fail to perform the Executive’s duties but remain employed for a period of twelve (12) months, the Company will cease paying the Base Salary. In addition, if the Executive’s employment is terminated pursuant to Section 8(b), the Executive shall receive: (A) any Unpaid Prior Year Bonus, payable no later than the time specified in Section 4(b); (B) the Pro-rated Current Year Bonus, payable no later than the September 15 of the fiscal year following the fiscal year of the Date of Termination; and (C) with respect to Equity Bonus awards or awards under the Plan, vesting, payment and other terms as provided for herein or under the terms of the applicable Plan documents. The foregoing payments shall be in addition to what the Executive may be eligible to receive pursuant to any disability benefit plan then provided to the Executive or maintained by the Company. The payments provided for in this Section 10(b) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive.
(c) If the Executive’s employment shall be terminated for cause pursuant to Section 8(c) or if the Executive shall resign other than for Good Reason, the Executive shall receive the then current Base Salary and the Benefits through the Date of Termination and any Unpaid Prior Year Bonus, payable no later than the time specified in Section 4(b). The payments provided for in this Section 10(c) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive. 
(d) If the Company shall terminate the Executive’s employment pursuant to Section 8(d), or if the Executive shall terminate the Executive’s employment hereunder for Good Reason pursuant to Section 9, the Executive shall receive: (i) the greater of (A) the then current Base Salary and the Annual Bonus in the same manner as though the Executive continued to be employed hereunder through June 30, 2023 and (B) each of the then current Base Salary and the Annual Bonus paid in the same manner as though the Executive continued to be employed hereunder for the successive twenty-four (24) months following the Date of Termination, in each case with the Annual Bonus payment(s) based on the then current Annual Bonus Target, provided that each Annual Bonus payment shall be made in the fiscal year following the fiscal year relating to such Annual Bonus, in no event later than September 15 of such fiscal year; (ii) any Unpaid Prior Year Bonus, payable no later than the time specified in Section 4(b)); (iii) the Pro-rated Current Year Bonus, payable no later than the September 15 of the fiscal year following the fiscal year of the Date of Termination; (iv) continued vesting of any Equity Bonus awards or awards under the Plan that were granted prior to the Date of Termination in the same manner as though the Executive continued to be employed hereunder through the later of June 30, 2023 or one (1) year following the Date of Termination, with payments made at the same times they would have been made had the Executive continued to be employed through such date (and, for the avoidance of doubt, any Equity Bonus awards that would not have been payable but for continued employment through such date shall be forfeited); and (v) and Company-paid premiums under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, for the Executive and the Executive’s eligible dependents for up to the successive eighteen (18) months following the Date of Termination, which amounts shall either be paid directly or reimbursed to you by the Company.  The payments provided for in this Section 10(d) shall fully discharge the obligations of the 
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Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive. 
(e) A precondition to the Company’s obligation to pay compensation and provide benefits to the Executive (or the Executive’s surviving spouse or the legal representative of the Executive’s estate) pursuant to this Section 10 (other than accrued but unpaid Base Salary) shall be the execution and non- revocation by the Executive, or as the case may be, the Executive’s surviving spouse or the legal representative of the Executive’s estate, of the Company’s then standard separation agreement and general release (which shall include, among other provisions, non-solicitation and non-competition restrictions for the duration of post-termination compensation and benefits) and the continued compliance with the terms, conditions and covenants set forth therein. 
(f) For the avoidance of doubt, any post-employment bonus payments or equity grants that vest or remain eligible for vesting will remain subject to the Company’s claw-back policies and terms and conditions of the applicable Plan documents. 
(g) Without duplicating any benefits set forth in this Section 10, upon any termination of employment, the Executive (or the Executive’s spouse, beneficiaries or estate) will be entitled to any unreimbursed business expenses approved in accordance with the Company’s policy and due the Executive through termination and to receive any benefits vested, and to make all elections and receive all payments and rights under all employee benefit, pension, insurance and other plans in which the Executive participated in accordance with the terms and conditions of the plan concerned. Such business expenses shall be reimbursed as provided in Section 23(f). 
(h) The Executive shall have no duty to mitigate the Executive’s damages hereunder and any income earned by the Executive following the Executive’s termination without cause (as defined in Section 8(c)) or the Executive’s resignation for Good Reason pursuant to Section 9 shall not reduce the compensation payable to the Executive hereunder. 
(i) If, following the completion of the Term on June 30, 2023, the Executive is not offered a new employment agreement on terms at least as favorable to the Executive as the terms set forth herein and the Executive is subsequently terminated without cause, then the Executive will be entitled to receive the payments and benefits set forth in Section 10(d) above (using the same Base Salary and Annual Bonus Target as in effect immediately prior to the expiration of the Term on June 30, 2023).
11. Survival of Agreement. This Agreement shall inure to the benefit of the Company and any other successors and general assigns of the Company or any other corporation or entity which is a parent, subsidiary or affiliate of the Company to which this Agreement is assigned, and any other corporation or entity into which the Company may be merged or with which it may be consolidated. For purposes of clarity, the Company may assign this Agreement in the event of an asset or stock sale of all or a majority of the Company to the controlling corporation or entity surviving or resulting from such asset or stock sale. The terms, conditions, promises and covenants set forth in Sections 7 through 23 shall survive the termination of this Agreement and the Executive’s employment (in accordance with their respective terms) for any reason.

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12. Indemnity; Cooperation. 
(a) The Company will indemnify and defend the Executive in accordance with the formation documents, charters, bylaws or applicable insurance policies of the Company, and in accordance with any other law or statute affording the Executive a right of indemnification and defense, including but not limited to Section 145 of Title 8 of the Delaware Chancery Code, for any acts or omissions made by the Executive in good faith in the course of the Executive’s employment with the Company. 
(b) During the Term and for a period of three (3) years after the termination of the Executive’s employment for any reason, and during all reasonable times thereafter, the Executive will (i) fully cooperate with the Company in providing truthful testimony as a witness or a declarant in connection with any present or future litigation, administrative or arbitral proceeding involving the Company or any of its affiliates with respect to which the Executive may have relevant information and (ii) assist the Company during the investigatory and discovery phases (or prior thereto) of any judicial, administrative, internal, arbitral or grievance proceeding involving the Company or any of its affiliates and with respect to which the Executive may have relevant information. The Company will, within thirty (30) days of the Executive producing receipts satisfactory to the Company, reimburse the Executive for any reasonable and necessary expenses incurred by the Executive in connection with such cooperation.
(c) Without limiting any other provision of this Agreement, this Section 12 shall survive the termination or expiration of this Agreement for any reason whatsoever.
13. Notices. All notices, requests, demands or other communications provided for hereby shall be in writing and shall be deemed to have been duly given (a) when delivered personally, (b) one (1) day after having been sent by telegram, telecopy or similar electronic means, or by overnight courier service against receipt, or (c) four (4) days after having been sent within the continental United States by first-class certified mail, return receipt requested, postage prepaid, to the other party. Any notices to the Company shall be sent to the principal executive offices of the Company. Any notices to the Executive shall be sent to the last known address of the Executive on record with the Company.
14. Governing Law. This Agreement shall be enforced, governed by and construed in accordance with the laws of the State of New York. Each party hereby submits to the exclusive jurisdiction of the Supreme Court of the State of New York, and the United States District Court for the Southern District of New York, for the purpose of enforcement of this Agreement and waives, and agrees not to assert, as a defense in any such action or proceeding, that such party was not subject to the personal jurisdiction of any such court or that venue is improper for lack of residence, inconvenient forum or otherwise. The parties also agree that service of process (the method by which a party may be served with any such court papers) may be made by overnight mail at the applicable address set forth in Section 13. The Company may also have other rights and remedies it may have at any time against the Executive, whether by law or under this Agreement.
15. Construction. Each party acknowledges that such party has participated with, at its option, the advice of counsel, in the preparation of this Agreement. The language of all provisions 
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of this Agreement shall in all cases be construed as a whole, extending to it its fair meaning, and not strictly for or against either of the parties. The parties agree that they have jointly prepared and approved the language of the provisions of this Agreement and that should any dispute arise concerning the interpretation of any provision hereof, neither party shall be deemed the drafter nor shall any such language be presumptively construed in favor of or against either party.
16. Severability. The conditions and provisions set forth in this Agreement shall be severable, and if any condition or provision or portion thereof shall be held invalid or unenforceable, then said condition or provision shall not in any manner affect any other condition or provision and the remainder of this Agreement and every section thereof construed without regard to said invalid condition or provision, shall continue in full force and effect.
17. Assignment. Neither party shall have the right, subject to Section 11, to assign the Executive’s rights and obligations with respect to the Executive’s actual employment duties without the prior consent of the other party.
18. Entire Agreement. This Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof, and this Agreement supersedes and renders null and void any and all prior oral or written agreements, understandings or commitments pertaining to the subject matter hereof, including, without limitation, the Prior Agreement. No waiver or modification of the terms or provisions hereof shall be valid unless in writing signed by the party so to be charged thereby and then only to the extent therein set forth.
19. Withholding and Payroll Practices. All salary, severance payments, bonuses or benefits provided by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law and shall be paid in the ordinary course pursuant to the Company’s then existing payroll practices or as otherwise specified in this Agreement.
20. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.
21. Headings. Headings in this Agreement are for reference only and shall not be deemed to have any substantive effect.
22. Section 280G. 
(a) Notwithstanding any other provisions of this Agreement to the contrary, in the event that it shall be determined that any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Payments”), would constitute an “excess parachute payment” within the meaning of Section 280G of the Code, the Company shall reduce (but not below zero) the aggregate present value of the Payments under the Agreement to the Reduced Amount (as hereinafter defined), if reducing the Payments under this Agreement will provide the Executive with a greater net after-tax amount than would be the case if no such reduction was made. The Payments shall be reduced as described in the preceding sentence only if (1) the net amount of the Payments, as so reduced 
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(and after subtracting the net amount of federal, state and local income and payroll taxes on the reduced Payments), is greater than or equal to (2) the net amount of the Payments without such reduction (but after subtracting the net amount of federal, state and local income and payroll taxes on the Payments and the amount of Excise Tax (as hereinafter defined) to which the Executive would be subject with respect to the unreduced Payments). Any reduction shall be made in accordance with Section 409A of the Code.
(b) The “Reduced Amount” shall be an amount expressed in present value that maximizes the aggregate present value of Payments without causing any Payment under this Agreement to be subject to the Excise Tax, determined in accordance with Section 280G(d)(4) of the Code. The term “Excise Tax” means the excise tax imposed under Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 
(c) All determinations to be made under this Section 22 shall be made by an independent registered public accounting firm or consulting firm selected by the Company immediately prior to a change in control, which shall provide its determinations and any supporting calculations both to the Company and the Executive within ten (10) days of the change in control. Any such determination by such firm shall be binding upon the Company and the Executive. All fees and expenses of the accounting or consulting firm in performing the determinations referred to in this Section 22 shall be borne solely by the Company. 
23. Section 409A.
(a) This Agreement is intended to comply with Section 409A of the Code, and will be interpreted accordingly. References under this Agreement to the Executive’s termination of employment shall be deemed to refer to the date upon which the Executive has experienced a “separation from service” within the meaning of Section 409A of the Code.
(b) Notwithstanding anything herein to the contrary, (i) if at the time of the Executive’s separation from service with the Company, the Executive is a “specified employee” as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder) and the deferral of the commencement of any payments or benefits otherwise payable hereunder or payable under any other compensatory arrangement between the Executive and the Company, or any of its affiliates as a result of such separation from service is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Executive) until the date that is six (6) months following the Executive’s separation from service (or the earliest date as is permitted under Section 409A of the Code), at which point all payments deferred pursuant to this Section shall be paid to the Executive in a lump sum and (ii) if any other payments of money or other benefits due to the Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner that does not cause such an accelerated or additional tax. Any payments deferred pursuant to the preceding sentence shall be paid together with interest thereon at a rate equal to the applicable Federal rate for short-term instruments.
12

(c) To the extent any reimbursements or in-kind benefits due to the Executive under this Agreement constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to the Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Additionally, to the extent that the Executive’s receipt of any in-kind benefits from the Company or its affiliates must be delayed pursuant to this Section due to the Executive’s status as a “specified employee”, the Executive may elect to instead purchase and receive such benefits during the period in which the provision of benefits would otherwise be delayed by paying the Company (or its affiliates) for the fair market value of such benefits (as determined by the Company in good faith) during such period. Any amounts paid by the Executive pursuant to the preceding sentence shall be reimbursed to the Executive (with interest thereon) as described above on the date that is six (6) months following the Executive’s separation from service.
(d) Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code.
(e) The Company shall consult with the Executive in good faith regarding the implementation of the provisions of this Section. Without limiting the generality of the foregoing, the Executive shall notify the Company if the Executive believes that any provision of this Agreement (or of any award of compensation, including equity compensation, or benefits) would cause the Executive to incur any additional tax under Section 409A of the Code and, if the Company concurs with such belief after good faith review or the Company independently makes such determination, then the Company shall, after consulting with the Executive, use reasonable best efforts to reform such provision to comply with Section 409A of the Code through good faith modifications to the minimum extent reasonably appropriate to conform with Section 409A of the Code.
(f) Any amount that the Executive is entitled to be reimbursed for any business-related expenses borne by the Executive under this Agreement will be reimbursed to the Executive as promptly as practicable and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred. The amount of expenses eligible for reimbursement during any calendar year will not affect the amount of expenses eligible for reimbursement in any other calendar year.
(g) Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.
(h) Unless this Agreement provides a specified and objectively determinable payment schedule to the contrary, to the extent that any payment of base salary or other compensation is to be paid for a specified continuing period of time beyond the Executive’s termination of employment in accordance with the Company’s payroll practices (or other similar term), the payments of such base salary or other compensation shall be made on a monthly basis.
(i) To the extent that severance payments or benefits pursuant to this Agreement are conditioned upon the execution and delivery by the Executive of a separation 
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agreement and general release (and the expiration of any revocation rights provided therein) which could become effective in one of two (2) taxable years of the Executive depending on when the Executive executes and delivers such separation agreement and general release, any deferred compensation payment (which is subject to Section 409A of the Code) that is conditioned on execution of the separation agreement and general release shall be made within ten (10) days after the separation agreement and general release becomes effective and such revocation rights have lapsed, but not earlier than the first business day of the later of such taxable years. 
24. Representations.  The Company represents that the Company’s execution and delivery of this Agreement and the performance of its obligations hereunder: (a) has been authorized by all required corporate action on the part of the Company; and (b) will not conflict with, result in any breach of, or constitute a default under, any contract, agreement or arrangement to which the Company is a party.  The Executive represents that the Executive’s execution and delivery of this Agreement and the performance of the Executive’s obligations hereunder will not conflict with, result in any breach of, or constitute a default under, any contract, agreement or arrangement to which the Executive is a party.

[Signature page follows] 

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IN WITNESS WHEREOF, the parties hereto have affixed their signatures as of the day and year first above written.

												
	NEWS CORPORATION			SUSAN PANUCCIO
				
				
	By:	/s/ Dana Ritzcovan		/s/ Susan Panuccio
	Name:	Dana Ritzcovan		
	Title:	Chief Human Resources OfficerEX-10.3

 Exhibit 10.3 

Execution Version 
  

 
 Equity Interest Pledge Agreement

 Between 
 Xia
Heng, He Tao 
 And 

Guangzhou Xiaopeng Motors Technology Co., Ltd. 

And 
 Guangzhou Zhipeng
IoV Technology Co., Ltd. 
 In relation to Guangzhou Zhipeng IoV Technology Co., Ltd. 

May 28, 2018 
  

 

  
 1 

 Equity Interest Pledge Agreement 

This equity interest pledge agreement (“Agreement”) is made by the following parties on May 28, 2018 (“Execution
Date”): 
  

	1.	 Xia Heng: ID No.: [REDACTED] 

Residential address: [REDACTED], and 

He Tao, ID No.: [REDACTED] 

Residential address: [REDACTED] 

(“Pledgors”); 
  

	2.	 Guangzhou Zhipeng IoV Technology Co., Ltd.., with its registered address at Room 209, No. 8 Songgang
Street, Cen Village, Changxing Avenue, Tianhe District, Guangzhou(voluntary declaration), and its legal representative being He Tao (“Company”). 

 

	3.	 Guangzhou Xiaopeng Motors Technology Co., Ltd., with its registered address at Room 245, No. 333, Jiufo
Jianshe Road, Sino-Singapore Guangzhou Knowledge City, Guangzhou, China, and its legal representative being Xia Heng (“Pledgee”). 

Each of the above parties is hereinafter referred to individually as a “Party”, and collectively as the “Parties”. 

Whereas, 
  

	1.	 The Pledgors are the registered shareholders of the Company, and hold the entire equity in the Company
(“Equity”) according to law. As of the Execution Date, the Pledgors’ capital contribution in the registered capital of the Company is RMB ten million (RMB10,000,000), accounting for 100% of the registered capital. The basic
information of the Company is set forth in Exhibit 1. 

  

	2.	 The Parties entered into the Power of Attorney on May 28, 2018. According to the Power of Attorney, the
Pledgors irrevocably and exclusively authorized the person to be designated by the Pledgee to exercise their voting powers at the Company on their halves. 

  

	3.	 The Pledgee and the Pledgors entered into the Loan Agreement (“Loan Agreement”) on
May 28, 2018. According to the Loan Agreement, the Pledgee will provide the Pledgors with a loan with an aggregate principal of RMB ten million (RMB10,000,000) (“Loan”) for the Pledgors’ operation. 

 

	4.	 The Company and the Pledgee entered into the Exclusive Service Agreement (“Service Agreement”)
on May 28, 2018. According to the Service Agreement, the Company engages the Pledgee exclusively to provide relevant services, and agrees to pay corresponding service fees to the Pledgee for such services. 

 

	5.	 The Parties entered into the Exclusive Option Agreement (“Option Agreement”) on May 28,
2018. According to the Option Agreement, upon the request of the Pledgee, the Pledgors and the Company shall, subject to the PRC Laws, transfer part or whole of their Equity or part or whole of the Company’s assets to the Pledgee and/or its
designated entity and/or individual according to the requirements of the Pledgee, or the Company shall reduce its capital and allow the Pledgee and/or its designated entity and/or individual to subscribe for the newly added registered capital of the
Company. 

  
 2 

	6.	 As the security for performance of the Contractual Obligations (as defined below) and repayment of the Secured
Debts (as defined below) by the Pledgors, the Pledgors are willing to create a pledge over their Equity in favor of the Pledgee and grant the Pledgee the first-rank pledge right, and the Company agrees to such equity interest pledge arrangement.

 Now, therefore, the Parties agree as follows upon consensus through negotiation: 

 

	1.	 Definitions 

 

	1.1	 The following terms used in this Agreement have the meanings below, unless the context requires otherwise:

  

			
	 “Contractual Obligations”
	  	Means all the contractual obligations of the Pledgors under the ower of Attorney, the Loan Agreement and the Option Agreement (including but not limited to the obligation of repaying loan under the Loan Agreement); all the
contractual obligations of the Company under the ower of Attorney, the Service Agreement and the Option Agreement; all the contractual obligations of the Pledgors and the Company under this Agreement.
		
	 “Secured Debts”
	  	Means all direct, indirect or consequential losses and the loss of expected income suffered by the Pledgee from any Breaching Event (as defined below) of the Pledgors and/or the Company, the amount of which is based on (but not
limited to) the reasonable business plan and profit forecast of the Pledgee, as well as all expenses incurred by the Pledgee for enforcing the Pledgors and/or the Company to perform their Contractual Obligations.
		
	 “Transaction Agreements”
	  	Means the ower of Attorney, the Service Agreement, the Loan Agreement and the Option Agreement.
		
	 “Breaching Event”
	  	Means the breach by any Pledgor of any of his Contractual Obligations under the ower of Attorney, the Loan Agreement, the Option Agreement and/or this Agreement, and the breach by the Company of any of its Contractual Obligations
under the ower of Attorney, the Service Agreement, the Option Agreement and/or this Agreement,.
		
	 “Pledged Equity Interest”
	  	Means the entire Equity held by the Pledgors when this Agreement becomes effective and to be pledged in favor of the Pledgee according to this Agreement as the security for the performance by the Pledgors and the Company of the
Contractual Obligations, as well as the capital contribution and dividend increased according to Article 2.6 and Article 2.7 hereof.
		
	 “PRC Laws”
	  	Means the currently valid laws, administrative regulations, administrative rules, local regulations, judicial interpretations and other binding normative documents of the People’s Republic of China.

  
 3 

	1.2	 Any reference to any PRC Laws shall be reference to: (i) those laws as amended, modified, supplemented and
restated, whether they become effective before or after the conclusion of this Agreement; and (ii) other decisions, notices and regulations prepared or effective under the PRC Laws. 

 

	1.3	 Unless the context requires otherwise, any reference to any articles, paragraphs, subparagraphs or items herein
are reference to the articles, paragraphs, subparagraphs or items of this Agreement. 

  

	2.	 Pledge of Equity Interest 

 

	2.1	 The Pledgors hereby agree to create a pledge in favor of the Pledgee over the Pledged Equity Interest they
legally own and have the lawful right to dispose of according to the provisions of this Agreement, as the security for performance of the Contractual Obligations and repayment of the Secured Debts by the Pledgors. The Company hereby agrees to the
Pledgors’ creation of the above pledge according to the provisions of this Agreement. 

  

	2.2	 The Pledgors undertake to procure the equity Interest pledge arrangement hereunder (“Pledge of Equity
Interest”) to be recorded on the register of shareholders of the Company on the Execution Date. The Pledgors further undertake to use their best efforts and take all necessary measures to promptly complete the registration of the Pledge of
Equity Interest with the industrial and commercial administration having jurisdiction over the Company after the Execution Date. 

  

	2.3	 During the term of this Agreement, the Pledgee is not responsible for any decrease in the value of the Pledged
Equity Interest, except for that caused by the intentional misconduct or gross negligence having direct causation with the result of the Pledgee, and the Pledgors have no right to make any claim or demand against the Pledgee. 

 

	2.4	 Without breaching the above Article 2.3, if there is any possibility that the value of the Pledged Equity
Interest will be significantly reduced, which is enough to harm the rights of the Pledgee, the Pledgee may auction or sell the Pledged Equity Interest on behalf of the Pledgors at any time, and reach an agreement with the Pledgors to use the
proceeds from the auction or sale to prepay the Secured Debts or lodge the proceeds with the notary at the place of the Pledgee (the cost of which shall be borne by the Pledgors). In addition, at the request of the Pledgee, the Pledgors shall
provide other property as security of the Secured Debts. 

  

	2.5	 When any Breaching Event occurs, the Pledgee has the right to dispose of the Pledged Equity Interest according
to the provisions of Article 4 hereof. 

  

	2.6	 The Pledgors may increase the capital of the Company only with prior consent of the Pledgee. Any additional
capital contribution of the Pledgors made to the registered capital of the Company due to capital increase of the Company shall be part of the Pledge Equity. The Pledgors shall complete the pledge registration of the Equity corresponding to such
additional capital contribution with the industrial and commercial administration having jurisdiction over the Company. 

  

	2.7	 The Pledgors may receive dividend or bonus in respect of the Pledged Equity Interest only with prior consent of
the Pledgee. The dividend or bonus received by the Pledgors in respect of the Pledged Equity Interest shall be deposited into the account designated by the Pledgee, supervised by the Pledgee, and used first for repayment of the Secured Debts.

  
 4 

	2.8	 The Pledgee has the right to dispose of any Pledged Equity Interest of the Pledgors according to the provisions
of this Agreement after any Breaching Event occurs. 

  

	3.	 Release of Pledge 

 

	3.1	 After the Pledgors and the Company fully and completely perform all Contractual Obligations and repay all
Secured Debts, the Pledgee shall, at the request of the Pledgors, release the Pledge of Equity Interest hereunder, and cooperate with the Pledgors to cancel the registration of the Pledge of Equity Interest on the register of shareholders of the
Company and with the competent industrial and commercial administration. The reasonable cost for the release of the Pledge of Equity Interest shall be borne by the Pledgee. 

 

	4.	 Disposal of the Pledged Equity Interest 

 

	4.1	 The Parties hereby agree that if any Breaching Event occurs the Pledgee has the right to all remedial rights
and powers it enjoys under the PRC Laws, the Transaction Agreements and this Agreement after giving a written notice to the Pledgors, including but not limited to auctioning or selling the Pledged Equity Interest and receiving payment from the
proceeds in the first place. The Pledgee shall not be liable for any loss caused by its reasonable exercise of such rights and powers. 

The Pledgors further acknowledge and agree that their breach of Article 9 hereof shall constitute a material breach of this Agreement. The
Company further acknowledges and agrees that its breach of Article 10 hereof shall constitute a material breach of this Agreement. 
  

	4.2	 The Pledgee has the right to appoint in writing its lawyer or other agent to exercise any or all of the above
rights and powers, to which the Pledgors or the Company shall not raise any objection. 

  

	4.3	 The Pledgee has the right to deduct any reasonable cost incurred in its exercise of any or all of the above
rights and powers from any amount it obtains from such exercise. 

  

	4.4	 The amount obtained by the Pledgee from exercise of the above rights and powers shall be distributed:

 First, for payment of disposal of the Pledged Equity Interest and all costs incurred by the Pledgee for exercise of its
rights and powers (including paying the remuneration of its lawyer and agent); 
 Second, for payment of the taxes on the disposal of the
Pledged Equity Interest; and 
 Third, for repayment of the Secured Debts to the Pledgee. 

If there is any remaining amount after the above distribution, the Pledgee shall return such remaining amount to the Pledgors or other person
entitled to such amount according to relevant laws and regulations, or lodge such amount with the notary at the lace of the Pledgee (the cost of which shall be borne by the Pledgee). 

 

	4.5	 The Pledgee has the right to exercise its remedies for breach of contract at the same time or successively. The
Pledgee is not required to exercise other remedies first before exercising the right hereunder to auction or sell the Pledged Equity Interest. 

  

	5.	 Costs and Expenses 

 

	5.1	 The Parties shall respectively bear all costs and expenses incurred relating to the creation of the Pledge of
Equity Interest hereunder, including but not limited to the stamp duty, any other taxes and all legal costs. 

  
 5 

	6.	 Continuing Security and No Waiver 

 

	6.1	 The Pledge of Equity Interest created hereunder is a continuing security, and is valid until the Contractual
Obligations are fully performed or the Secured Debts are fully repaid, whichever is later. No waiver or grace by the Pledgee of any breach of the Pledgors, or any delay of the Pledgee in exercising its right under the Transaction Agreements and this
Agreement, shall affect the Pledgee’s right under this Agreement, relevant PRC Laws and the Transaction Agreements to request the Pledgors to strictly perform the Transaction Agreements and this Agreement at any time, or any right enjoyed by
the Pledgee due to any subsequent breach by the Pledgors of the Transaction Agreements and/or this Agreement. 

  

	7.	 Representations and Warranties of the Pledgors 

The Pledgors represent and warrant to the Pledgee that 
  

	7.1	 They are natural persons with full capacity for civil acts according to the PRC Laws, have full and separate
legal status and capacity to execute, deliver and perform this Agreement, and can sue and be sued independently. 

  

	7.2	 All reports, documents and information provided by them before effectiveness of this Agreement with respect to
the Pledgors and all matters required by this Agreement are true, correct, complete and not misleading in all material respects when this Agreement becomes effective. 

 

	7.3	 All reports, documents and information provided by them after effectiveness of this Agreement with respect to
the Pledgors and all matters required by this Agreement are true and valid in all material respects when they are provided. 

  

	7.4	 When this Agreement becomes effective, the Pledgors are the sole legal owner of the Pledged Equity Interest and
there is not any pending or potential dispute over the title to the Pledged Equity Interest or any third party’s claim. The Pledgors have the right to dispose of the Pledged Equity Interest or any part thereof. 

 

	7.5	 Except for the security interest created over the Pledged Equity Interest under this Agreement or any right
created under the Transaction Agreements, there is not any other security interest, any third party’s interest and other restrictions over the Pledged Equity Interest. 

 

	7.6	 The Pledged Equity Interest may be pledged and transferred legally, and the Pledgors have full right and power
to pledge the Pledged Equity Interest in favor of the Pledgee according to the provisions hereof. 

  

	7.7	 This Agreement shall constitute legal, valid and binding obligations of the Pledgors after the Pledgors
properly sign it. 

  

	7.8	 Except for the equity pledge interest registration with the competent industrial and commercial administration,
any consent, permission, waiver or authorization of any third party or the approval, permit, waiver, registration or filing (if required by law) of any government authority required by execution and performance of this Agreement and the Pledge of
Equity Interest under this Agreement have been obtained or completed, and shall remain fully valid during the term of this Agreement. 

  

	7.9	 The execution and performance by the Pledgors of this Agreement shall not violate or contradict to any law
applicable to them, any agreement to which they are a party or by which they are bound, or any court’s decision, arbitrator’s award, or any administrative authority’s decision. 

 

	7.10	 The pledge hereunder constitutes the firs-rank security interest over the Pledged Equity Interest.

  
 6 

	7.11	 All taxes and fees payable on the Pledged Equity Interest have been fully paid by the Pledgors.

  

	7.12	 There is no pending or, to the knowledge of the Pledgors, threatened litigation, legal proceeding or claim at
any court, arbitral tribunal or government or administrative authority against the Pledgors or their property or the Pledged Equity Interest that will have material or adverse effect on the Pledgors’ economic conditions or their ability to
perform the obligations or the security liabilities hereunder. 

  

	7.13	 The Pledgors hereby warrant to the Pledgee that the above representations and warranties are true and correct
and will be fully complied with before the Contractual Obligations are fully performed or the Secured Debts are fully repaid. 

  

	8.	 Representations and Warranties of the Company 

The Company represents and warrants to the Pledgee that 
  

	8.1	 The Company is a limited liability company duly established and validly existing under the PRC Laws who has
separate legal personality, has full and separate legal status and capacity to execute, deliver and perform this Agreement, and can sue and be sued independently. 

 

	8.2	 All reports, documents and information provided by the Company before effectiveness of this Agreement with
respect to the Pledged Equity Interest and all matters required by this Agreement are true, correct, complete and not misleading in all material respects when this Agreement becomes effective. 

 

	8.3	 All reports, documents and information provided by the Company after effectiveness of this Agreement with
respect to the Pledged Equity Interest and all matters required by this Agreement are true and valid in all material respects when they are provided. 

  

	8.4	 This Agreement shall constitute legal, valid and binding obligations of the Company after the Company properly
signs it. 

  

	8.5	 It has full internal corporate power and authority to execute and deliver this Agreement and all other
documents relating to the transaction contemplated hereunder and to be executed, and has full power and authority to complete the transaction contemplated hereunder. 

 

	8.6	 There is no pending or, to the knowledge of the Company, threatened litigation, legal proceeding or claim at
any court, arbitral tribunal or government or administrative authority against the Pledged Equity Interest or the Company or its assets that will have material or adverse effect on the Company’s economic conditions or the Pledgors’ ability
to perform the obligations or the security liabilities hereunder. 

  

	8.7	 The Company hereby agrees to be jointly and severally liable for the representations and warranties made by the
Pledgors under Articles 7.4, 7.5, 7.6, 7.8, and 7.10 hereof. 

  

	8.8	 The Company hereby warrants to the Pledgee that the above representations and warranties are true and correct
and will be fully complied with before the Contractual Obligations are fully performed or the Secured Debts are fully repaid. 

  

	9.	 Undertakings of the Pledgors 

The Pledgors hereby agree and irrevocably undertake to the Pledgee as follows: 
  

	9.1	 Without the prior written consent of the Pledgee, the Pledgors will not create or permit the creation of any
new pledge or other security interest over the Pledged Equity Interest, and any pledge or other security interest created over part or whole of the Pledged Equity Interest without the prior written consent of the Pledgee shall be void.

  
 7 

	9.2	 Without prior written notice to and prior written consent of the Pledgee, (i) the Pledgors will not
transfer or otherwise dispose of the Pledged Equity Interest, or request the Company to reduce its capital, and any such acts taken by the Pledgors without prior consent of the Pledgee shall be void; (ii) the Pledgors will not assist or permit
other existing shareholder (if applicable) to take the above acts without the prior written consent of the Pledgee. The proceeds of the transfer or other disposal of the Pledged Equity Interest by the Pledgors shall be first used to repay the
Secured Debts to the Pledgee or lodged with the third person agreed with the Pledgee. 

  

	9.3	 When any legal action, arbitration or other claim occurs and may have adverse effect on the interest of the
Pledgors or the Pledgee under the Transaction Agreements and this Agreement or the Pledged Equity Interest, the Pledgors undertake to promptly and timely notify the Pledgee in writing, and, at the reasonable request of the Pledgee, take all
necessary actions to ensure the Pledgee’s pledge interest in the Pledged Equity Interest. 

  

	9.4	 The Pledgors undertake to complete the registration of extending the Company’s business period three
(3) months before the Company’s business period expires, to ensure the validity of this Agreement to continue. 

  

	9.5	 The Pledgors will not take or permit any acts or behaviors that may have adverse effect on the Pledgee’s
interest under the Transaction Agreements and this Agreement or the Pledged Equity Interest. 

  

	9.6	 After execution of this Agreement, the Pledgors shall use their best efforts and take all necessary actions to
promptly complete the pledge registration of the Pledge of Equity Interest hereunder with relevant industrial and commercial administration, and the Pledgors undertake to take all necessary actions and sign all necessary documents (including but not
limited to any supplemental agreement to this Agreement) at the reasonable request of the Pledgee, to ensure that the Pledgee may exercise and realize its pledge interest in the Pledged Equity Interest and relevant rights. 

 

	9.7	 If the exercise of the pledge hereunder causes transfer of the Pledged Equity Interest, the Pledgors undertake
to take all actions to realize such transfer. 

  

	9.8	 Where a shareholders’ decision is made or a meeting of the shareholders or board of directors of the
Company is convened to execute this Agreement or create or exercise the pledge hereunder, the Pledgors shall ensure the decision or the convening procedure, voting method and content of the meeting shall not violate any laws, administrative
regulations of articles of association of the Company. 

  

	9.9	 The Pledgors will immediately, without any delay, notify the Pledgee of any circumstance that the Pledged
Equity Interest held by them may be transferred to any third party other than the Pledgee or its designated individual or entity due to any applicable PRC Laws, the decision or award of any court or arbitrator, or any other reasons, once they know
or should have known such circumstance. 

  

	10.	 Undertakings of the Company 

The Company hereby agrees and irrevocably undertakes to the Pledgee as follows: 

 

	10.1	 If the execution and performance of this Agreement and the Pledge of Equity Interest hereunder are subject to
any consent, permission, waiver or authorization of any third party or the approval, permit, waiver, registration or filing (if required by law) of any government authority, it will use its best effort to assist to obtain the same and maintain the
same fully valid during the term of this Agreement. 

  
 8 

	10.2	 Without the prior written consent of the Pledgee, the Company will not assist or permit the Pledgors to create
any new pledge or other security interest over the Pledged Equity Interest. 

  

	10.3	 Without the prior written consent of the Pledgee, the Company will not assist or permit the Pledgors to
transfer or otherwise dispose of the Pledged Equity Interest. 

  

	10.4	 When any legal action, arbitration or other claim occurs and may have adverse effect on the Company, the
Pledged Equity Interest, or the interest of the Pledgee under the Transaction Agreements and this Agreement, the Company undertakes to promptly and timely notify the Pledgee in writing, and, at the reasonable request of the Pledgee, take all
necessary actions to ensure the Pledgee’s pledge interest in the Pledged Equity Interest. 

  

	10.5	 The Company undertakes to complete the registration of extending the Company’s business period three
(3) months before the Company’s business period expires, to ensure the validity of this Agreement to continue. 

  

	10.6	 The Company will not take or permit actions, behaviors or inactions that may have adverse effect on the
interest of the Pledgee under the Transaction Agreements and this Agreement or the Pledged Equity Interest. 

  

	10.7	 The Company will provide the Pledgee with the financial statements of the previous calendar quarter, including
but not limited to the balance sheet, the income statement and the cash flow statement, within the first month of every calendar quarter. 

  

	10.8	 The Company undertakes to take all necessary actions and sign all necessary documents (including but not
limited to any supplemental agreement to this Agreement) at the reasonable request of the Pledgee, to ensure that the Pledgee may exercise and realize its pledge interest in the Pledged Equity Interest and relevant rights. 

 

	10.9	 The Company undertakes to take all necessary actions to realize the transfer if the transfer of the pledged
equity arises from the exercise of the Pledge Equity Interest. 

  

	10.10	 The Company undertakes that after execution of this Agreement it will promptly assist the Pledgors to apply for
the pledge registration of the Pledge of Equity Interest hereunder with relevant industrial and commercial administration, and provide all necessary cooperation to complete the registration promptly. 

 

	10.11	 The Company will immediately, without any delay, notify the Pledgee of any circumstance that the Pledged Equity
Interest held by the Pledgors may be transferred to any third party other than the Pledgee or its designated individual or entity due to any applicable PRC Laws, the decision or award of any court or arbitrator, or any other reasons, once it knows
or should have known such circumstance. 

  

	11.	 Change of Situation 

 

	11.1	 In addition to and without breaching other provisions of the Transaction Agreements and this Agreement, if the
Pledgee believes that maintaining the validity of this Agreement and/or disposing the Pledged Equity Interest in the way specified in this Agreement become illegal or contradict to any laws, regulations or rules, due to the change to the
interpretation or application of such laws, regulations or rules or due to the change of relevant registration procedure, the Pledgors and the Company shall immediately take any actions and/or sign any agreements or other documents pursuant to the
written instruction and at the reasonable request of the Pledgee, to: 

  
 9 

	 	(a)	 Maintain the validity of this Agreement; 

 

	 	(b)	 Benefit the disposal of the Pledged Equity Interest in the way specified in this Agreement; and/or

  

	 	(c)	 Maintain or realize the security created or purported to create under this Agreement. 

 

	12.	 Effectiveness and Term of the Agreement 

 

	12.1	 This Agreement becomes effective when the Parties properly sign it. 

 

	12.2	 This Agreement shall remain valid until the Contractual Obligations are fully performed or the Secured Debts
are fully repaid, whichever is later. 

  

	13.	 Notice 

  

	13.1	 Any notice, request, demand or other communication required by or made under this Agreement shall be in writing
and sent to relevant Parties. 

  

	13.2	 Where the above notice or other communication is sent by fax or email, it will be deemed delivered when it is
sent. Where the above notice or other communication is sent by personal delivery, it will be deemed delivered when it is submitted in person. Where the above notice or other communication is sent by mail, it will be deemed delivered two
(2) days after it is posted. 

  

	14.	 Miscellaneous 

 

	14.1	 The Pledgors and the Company agree that after the Pledgee may transfer its rights and/or obligations to any
third party after giving notices to the Pledgors and the Company. However, the Pledgors or the Company shall not transfer any right, obligation or liability hereunder to any third party, without the prior written consent of the Pledgee.

  

	14.2	 The amount of the Secured Debts confirmed by the Pledgee when it exercises the pledge right to the Pledged
Equity Interest according to the provisions hereof shall be the conclusive evidence of the Secured Debts hereunder. 

  

	14.3	 This Agreement is written in Chinese. This Agreement is made in five (5) counterparts, with the Company
holding one (1) counterpart, one (1) counterpart filed with the government authority for approval/registration, and the remaining counterparts maintained by the Pledgee. 

 

	14.4	 The conclusion, validity, interpretation and dispute resolution of this Agreement shall be governed by the PRC
Laws. 

  

	14.5	 Dispute Resolution 

  

	 	(a)	 Any dispute arising from or relating to this Agreement shall be resolved first through the friendly negotiation
between the Parties. If negotiation fails, the dispute shall be submitted to China International Economic and Trade Arbitration Commission for arbitration according to the arbitration rules of the Commission effective at the time of submission. The
arbitration will be carried out in Shenzhen. The arbitration award is final and binding upon relevant Parties. Unless the arbitration award decides otherwise, the arbitration cost shall be borne by the losing Party. The losing Party shall further
reimburse the winning Party’s attorney fee and other expenses. 

  

	 	(b)	 During the period of dispute resolution, the Parties shall continue to perform other provisions of this
Agreement except for the disputed matter. 

  
 10 

	14.6	 Any rights, powers and remedies granted to either Party under any provision of this Agreement shall not
preclude any other rights, powers or remedies granted to the Party under laws or other provisions hereof. No exercise by either Party of its rights, powers or remedies will preclude the exercise by the Party of other rights, powers or remedies.

  

	14.7	 No failure or delay to exercise by either Party of its rights, powers or remedies under this Agreement or laws
(“Party’s Rights”) will constitute waiver of such rights, and no single or partial waiver of the Party’s Rights will preclude exercise by the Party of such rights in other way or of other rights. 

 

	14.8	 The headings hereof are inserted for reference only, and shall not be used for or affect the interpretation of
any provisions hereof. 

  

	14.9	 The provisions hereof are severable and independent from other provisions. If any or several provisions hereof
are decided invalid, illegal or unenforceable at any time, the validity, legality and enforceability of other provisions hereof shall not be affected. 

  

	14.10	 This Agreement, once signed, shall supersede any other legal documents signed by the Parties with respect to
the same subject matter. Any amendment or supplement to this Agreement must be made in writing, and shall become effective after the Parties properly sign it, except that the Pledgee transfers its rights hereunder according to Article 14.1.

  

	14.11	 This Agreement shall bind and inure to the benefit of the legal assigns and successors of the Parties. The
successors or permitted assigns (if any) of the Pledgors and the Company shall continue to perform the obligations of the Pledgors and the Company hereunder. The Pledgors warrant to the Pledgee that they have taken all proper measures and signed all
required documents so that when they go into bankruptcy, are liquidated, or suffer other circumstance that may affect their exercise of their equity, their legal assigns, successors, creditors, liquidators, administrators, and other persons who may
obtain the equity in the Company or relevant rights shall not affect or prevent performance of this Agreement. For this purpose, the Pledgors and the Company shall promptly sign all other documents and take all other actions (including but not
limited to notarizing this Agreement) required by the Pledgee. 

  

	14.12	 At the same time of signing this Agreement, the Pledgors shall sign a Power of Attorney
(“POA”, in the form of Exhibit 2 attached hereto), authorizing the person designated by the Pledgee to sign any and all legal documents required for the Pledgee’s exercise any right hereunder on behalf of the Pledgors according
to this Agreement. The POA shall be maintained by the Pledge, and if necessary, the Pledgee may submit the POA with relevant government authority at any time. 

[The remainder of this page is intentionally left blank. Signature page follows.] 

  
 11 

 [Signature page of the Equity Interest Pledge Agreement] 

Xia Heng 
 Signature: /s/ Xia Heng 

 [Signature page of the Equity Interest Pledge Agreement] 

He Tao 
 Signature: /s/ He Tao 

 [Signature page of the Equity Interest Pledge Agreement] 

Guangzhou Zhipeng IoV Technology Co., Ltd. (seal) 
 Legal
representative: He Tao 
 Signature: /s/ He Tao 

 [Signature page of the Equity Interest Pledge Agreement] 

Guangzhou Xiaopeng Motors Technology Co., Ltd. (seal) 

Legal representative: Xia Heng 
 Signature: /s/ Xia Heng 

 Exhibit 1: 

Basic Information of the Company 
  

			
	Company name	  	Guangzhou Zhipeng IoV Technology Co., Ltd.
		
	Registered address	  	Room 209, No. 8 Songgang Street, Cen Village, Changxing Avenue, Tianhe District, Guangzhou(voluntary declaration)
		
	Registered capital	  	RMB ten million
		
	Legal representative	  	He Tao
		
	Shareholding structure:	  	

  

									
	 Shareholder
	  	Shareholding percentage	 	 	Subscribed capital contribution (RMB)	 
	 Xia Heng
	  	 	80	% 	 	 	8 million yuan	 
	 He Tao
	  	 	20	% 	 	 	2 million yuan	 

 Exhibit 2: 

Power of Attorney 
 I, Xia Heng,
hereby irrevocably authorize ______________ (____________), as the agent of myself, to sign all legal documents required or desired for the exercise by Guangzhou Xiaopeng Motors Technology Co., Ltd. of the rights under the Equity Pledge Agreement
entered into by it, myself and Guangzhou Zhipeng IoV Technology Co., Ltd. in relation to Guangzhou Zhipeng IoV Technology Co., Ltd.. 
 The Principal: Xia
Heng 
 Signature: /s/ Xia Heng 
 Date: May 28, 2018 

 Exhibit 3: 

Power of Attorney 
 I, He Tao,
hereby irrevocably authorize ______________ (____________), as the agent of myself, to sign all legal documents required or desired for the exercise by Guangzhou Xiaopeng Motors Technology Co., Ltd. of the rights under the Equity Pledge Agreement
entered into by it, me and Guangzhou Zhipeng IoV Technology Co., Ltd. in relation to Guangzhou Zhipeng IoV Technology Co., Ltd.. 
 The Principal: He Tao

 Signature: /s/ He Tao 
 Date: May 28, 2018

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