Document:

EX-10.1

 Exhibit 10.1 

YOUDAO, INC. 
 FIRST
AMENDED AND RESTATED 
 2015 SHARE INCENTIVE PLAN 

ARTICLE I 
 PURPOSE

 The purpose of this 2015 Share Incentive Plan (the “Plan”) is to promote the success and enhance the value of
Youdao, Inc., an exempted company formed under the laws of the Cayman Islands (the “Company”) by linking the personal interests of the Directors, Employees, and Consultants to those of the shareholders of the Company and by
providing such individuals with an incentive for outstanding performance to generate superior returns to the shareholders of the Company. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and
retain the services of the Directors, Employees, and Consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. 

ARTICLE II 

DEFINITIONS AND CONSTRUCTION 

Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates
otherwise. The singular pronoun shall include the plural where the context so indicates. 
 2.1    “Applicable
Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate and securities laws of the Cayman Islands, the Code, the PRC tax laws, rules, regulations and government orders, the rules
of any applicable stock exchange or national market system, and the laws and the rules of any jurisdiction applicable to Awards granted to residents therein. 

2.2    “Applicable Accounting Standards” shall mean Generally Accepted Accounting Principles in the
United States, International Financial Reporting Standards or such other accounting principles or standards as may apply to the Company’s financial statements under applicable securities laws from time to time. 

2.3    “Award” means an Option, a Restricted Share award, a Restricted Share Unit award, a Share
Appreciation Right award, a Dividend Equivalents award, a Share Payment award, or a Deferred Share award granted to a Participant pursuant to the Plan or any other types of award as designed and approved from time to time by the Committee or the
Board, as the case may be, pursuant to Article XII of the Plan in compliance with Applicable Laws. 

2.4    “Award Agreement” means any written agreement, contract, or other instrument or document
evidencing the grant of an Award executed by the Company and the Participant and any amendment thereto, including through electronic medium. 

2.5    “Board” means the Board of Directors of the Company. 

  
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 2.6    “Change of Control” means a change in ownership
or control of the Company effected through either of the following transactions: 
 (a)    the direct or indirect
acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control
with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities pursuant to a tender or exchange offer made directly to the Company’s shareholders which a majority of the Incumbent Board (as defined below) who are not affiliates or associates of the offeror under Rule 12b-2 promulgated under the Exchange Act do not recommend such shareholders accept, or 

(b)    the individuals who, as of the Effective Date, are members of the Board (the “Incumbent Board”), cease
for any reason to constitute at least fifty percent (50%) of the Board; provided that if the election, or nomination for election by the Company’s shareholders, of any new member of the Board is approved by a vote of at least fifty percent
(50%) of the Incumbent Board, such new member of the Board shall be considered as a member of the Incumbent Board. 

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

2.8    “Committee” means the committee of the Board described in Article XII. 

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

2.10    “Corporate Transaction” means any of the following transactions, provided, however, that the
Committee shall determine under (d) and (e) whether multiple transactions are related, and its determination shall be final, binding and conclusive: 

(a)    an amalgamation, arrangement or consolidation in which the Company is not the surviving entity, except for a
transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated; 

(b)    the sale, transfer or other disposition of all or substantially all of the assets of the Company; 

(c)    the complete liquidation or dissolution of the Company; 

(d)    any reverse takeover or series of related transactions culminating in a reverse takeover (including, but not
limited to, a tender offer followed by a reverse takeover) in which the Company is the surviving entity but (A) the Company’s equity securities outstanding immediately prior to such takeover are converted or exchanged by virtue of the
takeover into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are
transferred to a person or persons different from those who held such securities immediately prior to such takeover or the initial transaction culminating in such takeover, but excluding any such transaction or series of related transactions that
the Committee determines shall not be a Corporate Transaction; or 
 (e)    acquisition in a single or series of
related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange
Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities but excluding any such transaction or series of related transactions that the Committee determines shall not
be a Corporate Transaction. 

  
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 2.11    “Deferred Share” means a right to receive a
specified number of Shares during specified time periods pursuant to Article IX. 
 2.12    “Director”
means a member of the Board or a member of the board of directors of any Parent, Subsidiary or Related Entity of the Company. 

2.13    “Disability” means that the Participant qualifies to receive long-term disability payments under
the Service Recipient’s long-term disability insurance program, as it may be amended from time to time, to which the Participant provides services regardless of whether the Participant is covered by such policy. If the Service Recipient to
which the Participant provides service does not have a long-term disability plan in place, “Disability” means that a Participant is unable to carry out the responsibilities and functions of the position held by the Participant by reason of
any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Participant will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment
sufficient to satisfy the Committee in its discretion. 
 2.14    “Dividend Equivalents” means a right
granted to a Participant pursuant to Article IX to receive the equivalent value (in cash or securities) of dividends paid with respect to the Shares. 

2.15    “Effective Date” shall have the meaning set forth in Section 13.1. 

2.16    “Employee” means any person, including an officer or member of the Board of the Company, any
Parent or Subsidiary of the Company, any Subsidiary of a Parent of the Company, or any Related Entity, who is in the employ of a Service Recipient, subject to the control and direction of the Service Recipient as to both the work to be performed and
the manner and method of performance. The payment of a director’s fee by a Service Recipient shall not be sufficient to constitute “employment” by the Service Recipient. 

2.17    “Exchange Act” means the Securities Exchange Act of 1934 of the United States, as amended. 

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

(a)    If the Shares are listed on one or more established stock exchanges or national market systems, including without
limitation, the New York Stock Exchange or the NASDAQ Stock Market, its Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the
Shares are listed (as determined by the Committee) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported),
as reported in The Wall Street Journal or such other source as the Committee deems reliable; 
 (b)    If the Shares
are regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such shares as quoted on such system or by such securities
dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of a Share shall be the mean between the high bid and low asked prices for the Shares on the date of determination (or, if no such prices were
reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Committee deems reliable; or 

  
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 (c)    In the absence of an established market for the Shares of the
type described in (a) and (b), above, the Fair Market Value thereof shall be determined by the Committee in good faith by reference to (i) the placing price of the latest private placement of the Shares and the development of the
Company’s business operations and the general economic and market conditions since such latest private placement, (ii) other third party transactions involving the Shares and the development of the Company’s business operation and the
general economic and market conditions since such transaction, (iii) an independent valuation of the Shares, or (iv) such other methodologies or information as the Committee determines to be indicative of Fair Market Value and relevant.

 2.19    “Group Entity” means any of the Company and Parents, Subsidiaries and Related Entities of
the Company. 
 2.20    “Incentive Share Option” means an Option that is intended to meet the
requirements of Section 422 of the Code or any successor provision thereto. 
 2.21    “Independent
Director” means (i) before the Shares or other securities representing the Shares are listed on a stock exchange, a member of the Board who is a Non-Employee Director; and (ii) after the
Shares or other securities representing the Shares are listed on a stock exchange, a member of the Board who meets the independence standards under the applicable corporate governance rules of the stock exchange. 

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

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

 2.25    “Participant” means a person who, as a Director, Consultant or Employee, has been granted an
Award pursuant to the Plan. 
 2.26    “Parent” means a parent corporation under Section 424(e) of
the Code. 
 2.27    “Plan” means this 2015 Share Incentive Plan, as amended from time to time. 

2.28    “PRC” means the People’s Republic of China. 

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

2.30    “Restricted Share” means a Share awarded to a Participant pursuant to Article VI that is subject
to certain restrictions and may be subject to risk of forfeiture. 
 2.31    “Restricted Share Unit”
means an Award granted pursuant to Article VII. 
 2.32    “Securities Act” means the Securities Act of
1933 of the United States, as amended. 

  
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 2.33    “Service Recipient” means the Company, any
Parent, Subsidiary or Related Entity of the Company to which a Participant provides services as an Employee, Consultant or as a Director. 

2.34    “Share” means the ordinary share of the Company, par value US$ 0.0001 per share, and such other
securities of the Company that may be substituted for Shares pursuant to Article XI. 
 2.35    “Share
Appreciation Right” or “SAR” means a right granted pursuant to Article VIII to receive a payment equal to the excess of the Fair Market Value of a specified number of Shares on the date the SAR is exercised over the Fair
Market Value on the date the SAR was granted as set forth in the applicable Award Agreement. 
 2.36    “Share
Payment” means (a) a payment in the form of Shares, or (b) an option or other right to purchase Shares as part of any bonus, deferred compensation or other arrangement made in lieu of all or any portion of the compensation granted
pursuant to Article IX. 
 2.37    “Subsidiary” means any corporation or other entity of which a
majority of the outstanding voting shares or voting power is beneficially owned directly or indirectly by the Company, or an affiliated entity that the Company controls through contractual arrangements and consolidates the financial results
according to the Applicable Accounting Standards. 
 2.38    “Trading Date” means the closing of the
first sale to the general public of the Shares pursuant to a registration statement filed with and declared effective by the U.S. Securities and Exchange Commission under the Securities Act. 

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

(a)    Subject to the provisions of Article XI and Section 3.1(b), the maximum aggregate number of Shares which may
be issued pursuant to all Awards (including Incentive Share Options) is 10,222,222 Shares. 
 (b)    To the extent that
an Award terminates, expires, or lapses for any reason, any Shares subject to the Award shall again be available for the grant of an Award pursuant to the Plan. To the extent permitted by Applicable Law, Shares issued in assumption of, or in
substitution for, any outstanding awards of any entity acquired in any form or combination by a Group Entity shall not be counted against Shares available for grant pursuant to the Plan. Shares delivered by the Participant or withheld by the Company
upon the exercise of any Award under the Plan, in payment of the exercise price thereof or tax withholding thereon, may again be optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a). If any Restricted Shares are
forfeited by the Participant or repurchased by the Company, such Shares may again be optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares may
again be optioned, granted or awarded if such action would cause an Incentive Share Option to fail to qualify as an incentive share option under Section 422 of the Code. 

3.2    Shares Distributed. Any Shares distributed pursuant to an Award may consist, in whole or in part, of
authorized and unissued Shares, treasury Shares or Shares purchased on the open market. Additionally, in the discretion of the Committee, American Depositary Shares in an amount equal to the number of Shares which otherwise would be distributed
pursuant to an Award may be distributed in lieu of Shares in settlement of any Award. If the number of Shares represented by an American Depositary Share is other than on a
one-to-one basis, the limitations of Section 3.1 shall be adjusted to reflect the distribution of American Depositary Shares in lieu of Shares. 

  
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 ARTICLE IV 

ELIGIBILITY AND PARTICIPATION 

4.1    Eligibility. Persons eligible to participate in this Plan include Employees, Consultants, and Directors, as
determined by the Committee. 
 4.2    Participation. Subject to the provisions of the Plan, the Committee may,
from time to time, select from among all eligible individuals those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted an Award pursuant to this Plan. 

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

OPTIONS 

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

 (a)    Exercise Price. The exercise price per Share subject to an Option shall be determined by the Committee
and set forth in the Award Agreement which may be a fixed or variable price related to the Fair Market Value of the Shares. The exercise price per Share subject to an Option may be adjusted in the absolute discretion of the Committee, the
determination of which shall be final, binding and conclusive. For the avoidance of doubt, to the extent not prohibited by Applicable Law, a re-pricing of Options mentioned in the preceding sentence shall be
effective without the approval of the Company’s shareholders or the approval of the Participants. Notwithstanding the foregoing, the exercise price per Share subject to an Option under an Award Agreement shall not be increased without the
approval of the relevant Participants. 
 (b)    Time and Conditions of Exercise. The Committee shall determine
the time or times at which an Option may be exercised in whole or in part, including exercise prior to vesting; provided that the term of any Option granted under the Plan shall not exceed ten years, except as provided in Section 10.2. The
Committee shall also determine any conditions, if any, that must be satisfied before all or part of an Option may be exercised. 

(c)    Payment. The Committee shall determine the methods by which the exercise price of an Option may be paid,
the form of payment, including, without limitation (i) cash or check denominated in U.S. Dollars, (ii) cash or check in Chinese Renminbi, (iii) cash or check denominated in any other local currency as approved by the Committee,
(iv) Shares held for such period of time as may be required by the Committee in order to avoid adverse financial accounting consequences and having a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option
or exercised portion thereof, (v) after the Trading Date the delivery of a notice that the Participant has placed a market sell order with a broker with respect to Shares then issuable upon exercise of the Option, and that the broker has been
directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price; provided that payment of such proceeds is then made to the Company upon settlement of such sale, and the methods by
which Shares shall be delivered or deemed to be delivered to Participants, (vi) other property acceptable to the Committee with a Fair Market Value equal to the exercise price, or (vii) any combination of the foregoing. Notwithstanding any
other provision of the Plan to the contrary, no Participant who is a member of the Board or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the exercise price of
an Option in any method which would violate Section 13(k) of the Exchange Act. 

  
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 (d)    Evidence of Grant. All Options shall be evidenced by an
Award Agreement between the Company and the Participant. The Award Agreement shall include such additional provisions as may be specified by the Committee. 

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

(a)    Expiration of Option. An Incentive Share Option may not be exercised to any extent by anyone after the
first to occur of the following events: 
 (i)    Ten years from the date it is granted, unless an
earlier time is set in the Award Agreement, provided, however, that in the case of an Incentive Share Option granted to a Participant who, at the time the Option is granted, owns Shares possessing more than ten percent of the total combined voting
power of all classes of shares of the Company or any Parent or Subsidiary of the Company, the term of the Incentive Share Option shall be five years from the date of grant thereof or such shorter term as set forth in the Award Agreement; 

(ii)    Three months after the Participant’s termination of employment as an Employee; and 

(iii)    One year after the date of the Participant’s termination of employment or service on account
of Disability or death. Upon the Participant’s Disability or death, any Incentive Share Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s legal representative or representatives, by the
person or persons entitled to do so pursuant to the Participant’s last will and testament, or, if the Participant fails to make testamentary disposition of such Incentive Share Option or dies intestate, by the person or persons entitled to
receive the Incentive Share Option pursuant to the applicable laws of descent and distribution. 
 (b)    Individual
Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares with respect to which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed
US$100,000 or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive Share Options are first exercisable by a Participant in excess of such limitation, the excess shall be
considered Non-Qualified Share Options. 
 (c)    Exercise Price. The
exercise price of an Incentive Share Option shall be equal to the Fair Market Value on the date of grant. However, the exercise price of any Incentive Share Option granted to any individual who, at the date of grant, owns Shares possessing more than
ten percent of the total combined voting power of all classes of shares of the Company or any Parent or Subsidiary of the Company may not be less than 110% of Fair Market Value on the date of grant. 

  
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 (e)    Transfer Restriction. The Participant shall give the
Company prompt notice of any disposition of Shares acquired by exercise of an Incentive Share Option within (i) two years from the date of grant of such Incentive Share Option or (ii) one year after the transfer of such Shares to the
Participant. 
 (f)    Expiration of Incentive Share Options. No Award of an Incentive Share Option may be made
pursuant to this Plan after the fifth anniversary of the Effective Date to any individual who, at the date of grant, owns Shares possessing more than ten percent of the total combined voting power of all classes of shares of the Company or any
Parent or Subsidiary of the Company. 
 (g)    Right to Exercise. During a Participant’s lifetime, an
Incentive Share Option may be exercised only by the Participant. 
 5.3    Substitution of Share Appreciation
Rights. The Committee may provide in the Award Agreement evidencing the grant of an Option that the Committee, in its sole discretion, shall have the right to substitute a Share Appreciation Right for such Option at any time prior to or upon
exercise of such Option, provided that such Share Appreciation Right shall be exercisable for the same number of shares of Share as such substituted Option would have been exercisable for. 

ARTICLE VI 

RESTRICTED SHARES 

6.1    Grant of Restricted Shares. The Committee is authorized to make Awards of Restricted Shares to any
Participant selected by the Committee in such number and subject to such terms and conditions as determined by the Committee. All Awards of Restricted Shares shall be evidenced by an Award Agreement. 

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

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

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

6.5    Removal of Restrictions. After the restrictions have lapsed, the Participant shall be entitled to have any
legend or legends under Section 6.4 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant, subject to applicable legal restrictions. The Committee (in its discretion) may establish procedures
regarding the removal of legends, as necessary or appropriate to minimize administrative burdens on the Company. 

  
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 ARTICLE VII 

RESTRICTED SHARE UNITS 

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

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

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

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

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

ARTICLE VIII 
 SHARE
APPRECIATION RIGHTS 
 8.1    Grant of Share Appreciation Rights. 

(a)    A Share Appreciation Right may be granted to any Participant selected by the Committee. A Share Appreciation Right
shall be subject to such terms and conditions not inconsistent with the Plan as the Committee shall impose and shall be evidenced by an Award Agreement. 

(b)    A Share Appreciation Right shall entitle the Participant (or other person entitled to exercise the Share
Appreciation Right pursuant to the Plan) to exercise all or a specified portion of the Share Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference
obtained by subtracting the exercise price per share of the Share Appreciation Right from the Fair Market Value of a Share on the date of exercise of the Share Appreciation Right by the number of Shares with respect to which the Share Appreciation
Right shall have been exercised, subject to any limitations the Committee may impose. 

  
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 8.2    Payment and Limitations on Exercise. 

(a)    Payment of the amounts determined under Section 8.1(b) above shall be in cash, in Shares (based on its Fair
Market Value as of the date the Share Appreciation Right is exercised) or a combination of both, as determined by the Committee in the Award Agreement. 

(b)    To the extent payment for a Share Appreciation Right is to be made in cash the Award Agreements shall, to the
extent necessary to comply with the requirements to Section 409A of the Code, specify the date of payment which may be different than the date of exercise of the Share Appreciation right. If the date of payment for a Share Appreciation Right is
later than the date of exercise, the Award Agreement may specify that the Participant be entitled to earnings on such amount until paid. 

(c)    To the extent any payment under Section 8.1(b) is effected in Shares it shall be made subject to satisfaction
of all provisions of Article V above pertaining to Options. 
 ARTICLE IX 

OTHER TYPES OF AWARDS 

9.1    Dividend Equivalents. Any Participant selected by the Committee may be granted Dividend Equivalents based on
the dividends declared on the Shares that are subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by the
Committee. Such Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee. 

9.2    Share Payments. Any Participant selected by the Committee may receive Share Payments in the manner
determined from time to time by the Committee; provided, that unless otherwise determined by the Committee such Share Payments shall be made in lieu of base salary, bonus, or other cash compensation otherwise payable to such Participant. The number
of shares shall be determined by the Committee and may be based upon the performance criteria or other specific criteria determined appropriate by the Committee, determined on the date such Share Payment is made or on any date thereafter. 

9.3    Deferred Shares. Any Participant selected by the Committee may be granted an award of Deferred Shares in the
manner determined from time to time by the Committee. The number of shares of Deferred Shares shall be determined by the Committee and may be linked to such specific criteria determined to be appropriate by the Committee, in each case on a specified
date or dates or over any period or periods determined by the Committee. Shares underlying a Deferred Share award will not be issued until the Deferred Share award has vested pursuant to a vesting schedule or criteria set by the Committee. Unless
otherwise provided by the Committee, a Participant awarded Deferred Shares shall have no rights as a Company shareholder with respect to such Deferred Shares until such time as the Deferred Share Award has vested and the Shares underlying the
Deferred Share Award have been issued. 
 9.4    Term. Except as otherwise provided herein, the term of any Award
of Dividend Equivalents, Share Payments or Deferred Shares shall be set by the Committee in its discretion. 

9.5    Exercise or Purchase Price. The Committee may establish the exercise or purchase price, if any, of any Award
of Share Payments or Deferred Shares. 
 9.6    Exercise Upon Termination of Employment or Service. An Award of
Dividend Equivalents, Share Payments or Deferred Shares shall only be exercisable or payable while the Participant is an Employee, Consultant or a Director, as applicable; provided, however, that the Committee in its sole and absolute discretion may
provide that an Award of Dividend Equivalents, Share Payments or Deferred Shares may be exercised or paid subsequent to a termination of employment or service, as applicable, or following a Change of Control of the Company, or because of the
Participant’s retirement, death or Disability, or otherwise. 

  
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 9.7    Form of Payment. Payments with respect to any Awards
granted under this Article IX shall be made in cash, in Shares or a combination of both, as determined by the Committee. 

9.8    Award Agreement. All Awards under this Article IX shall be subject to such additional terms and conditions
as determined by the Committee and shall be evidenced by an Award Agreement. 
 ARTICLE X 

PROVISIONS APPLICABLE TO AWARDS 

10.1    Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan may, in the discretion of the Committee,
be granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of
such other Awards. 
 10.2    Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that
set forth the terms, conditions and limitations for each Award which may include the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates, and the Company’s authority to unilaterally
or bilaterally amend, modify, suspend, cancel or rescind an Award. 
 10.3    Limits on Transfer. No right or
interest of a Participant in any Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Group Entity, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than
the Group Entity. Except as otherwise provided by the Committee, no Award shall be assigned, transferred, or otherwise disposed of by a Participant other than by will or the laws of descent and distribution. The Committee by express provision in the
Award Agreement or an amendment thereto may permit an Award (other than an Incentive Share Option) to be transferred to, exercised by and paid to certain persons or entities related to the Participant, including but not limited to members of the
Participant’s family, charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of the Participant’s family and/or charitable institutions, or to such other persons or entities as may be
expressly approved by the Committee, pursuant to such conditions and procedures as the Committee may establish. Any permitted transfer shall be on a basis consistent with the Company’s lawful issue of securities. 

10.4    Beneficiaries. Notwithstanding Section 10.3, a Participant may, in the manner determined by the
Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming
any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Committee. If the Participant is married and resides in a community property state, a designation of a person other than the Participant’s spouse as his or her beneficiary with respect to more than 50% of the
Participant’s interest in the Award shall not be effective without the prior written consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant, payment shall be made to the person entitled
thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is filed with the
Committee. 

  
 11 

 10.5    Share Certificates. 

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

(b)    Notwithstanding any other provision of the Plan, unless otherwise determined by the Committee or required by
Applicable Laws, the Company shall not deliver to any Participant certificates evidencing Shares issued in connection with any Award and instead such Shares shall be recorded on the books of the Company or, as applicable, its transfer agent or share
plan administrator. 
 10.6    Paperless Administration. Subject to Applicable Laws, the Committee may make
Awards, provide applicable disclosure and procedures for exercise of Awards by an internet website or interactive voice response system for the paperless administration of Awards. 

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

CHANGES IN CAPITAL STRUCTURE 

11.1    Adjustments. In the event of any dividend, share split, combination or exchange of Shares, amalgamation,
arrangement or consolidation, spin-off, recapitalization or other distribution (other than normal cash dividends) of Company assets to its shareholders, or any other change affecting the shares of Shares or
the share price of a Share, the Committee shall make such proportionate adjustments, if any, as necessary to reflect such change with respect to (a) the aggregate number and type of shares that may be issued under the Plan (including, but not
limited to, adjustments of the limitations in Section 3.1); (b) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (c) the grant or
exercise price per share for any outstanding Awards under the Plan. 

  
 12 

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

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

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

  
 13 

 ARTICLE XII 

ADMINISTRATION 

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

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

(a)    Designate Participants to receive Awards; 

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

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

(d)    Determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the
exercise price, grant price, or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, any provisions
related to non-competition and recapture of gain on an Award, based in each case on such considerations as the Committee in its sole discretion determines; 

(e)    Determine whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise
price of an Award may be paid in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 

(f)    Prescribe the form of each Award Agreement, which need not be identical for each Participant; 

(g)    Decide all other matters that must be determined in connection with an Award; 

(h)    Subject to Article XIV, establish, adopt, or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan; 
 (i)    Interpret the terms of, and any matter arising pursuant to, the Plan or any
Award Agreement; 

  
 14 

 (j)    Reduce the exercise price per Share subject to an Option; and

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

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

ARTICLE XIII 

EFFECTIVE AND EXPIRATION DATE 

13.1    Effective Date. This Plan shall become effective as of the date on which the Plan is approved by the
shareholders of the Company according to its Memorandum of Association and Articles of Association (the “Effective Date”). 

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

ARTICLE XIV 

AMENDMENT, MODIFICATION, AND TERMINATION 

14.1    Amendment, Modification, And Termination. With the approval of the Board, at any time and from time to
time, the Committee may terminate, amend or modify the Plan; provided, however, that to the extent necessary and desirable to comply with any Applicable Law, regulation, or stock exchange rule, unless the Company decides to follow home country
practice not to seek the shareholder approval for any amendment or modification of the Plan, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required, including any amendment to the Plan
that (i) increases the number of Shares available under the Plan (other than any adjustment as provided by Article XI), (ii) permits the Committee to extend the exercise period for an Option beyond ten years from the date of grant, or
(iii) results in a change in eligibility requirements. 
 14.2    Awards Previously Granted. Except with
respect to amendments made pursuant to Section 14.1, no termination, amendment, or modification of the Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without the prior written consent of the
Participant. 
 ARTICLE XV 

GENERAL PROVISIONS 

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

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

  
 15 

 15.3    Taxes. No Shares shall be delivered under the Plan to any
Participant until such Participant has made arrangements acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws, including without limitation the PRC tax laws, rules,
regulations and government orders or the U.S. Federal, state or local tax laws, as applicable. The relevant Group Entity shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy federal, state, local and foreign taxes (including the Participant’s payroll tax obligations) required by law to be withheld with respect to any taxable event concerning a Participant arising as a result of this Plan. The
Committee may in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares) having a Fair Market Value equal to
the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the Participant
of such Award after such Shares were acquired by the Participant from the Company) in order to satisfy the Participant’s federal, state, local and foreign income and payroll tax liabilities with respect to the issuance, vesting, exercise or
payment of the Award shall, unless specifically approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the
minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income. 

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

15.5    Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive
compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are greater than those of a general creditor of the
relevant Group Entity. 
 15.6    Indemnification. To the extent allowable pursuant to Applicable Law, each
member of the Committee or of the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim,
action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of
judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to Section 15.15. of the Plan, the Company’s Memorandum of Association and Articles of
Association, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

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

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

  
 16 

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

15.10    Fractional Shares. If an exercise of any Award shall result in the creation of a fractional Share under
the Award, the Committee may determine, in its discretion, whether (i) such fractional Share shall be issued, or (ii) cash (in the amount equal to the product of such fraction multiplied by the Fair Market Value of a Share on the date the
fractional Share otherwise would have been issued) shall be given in lieu of such fractional Share, or (iii) such fractional Share shall be eliminated by rounding up or down as appropriate. 

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

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

15.14    Appendices. With the approval of the Board, the Committee may approve such supplements, amendments or
appendices to the Plan as it may consider necessary or appropriate for purposes of compliance with Applicable Laws or otherwise and such supplements, amendments or appendices shall be considered a part of the Plan; provided, however, that no such
supplements shall increase the share limitations contained in Section 3.1 of the Plan. 

15.15    Disclaimer with Respect to PRC Residents. Each Participant who is a resident of the PRC under
applicable PRC laws and regulations (a “PRC Resident”) may be required to (a) file or register with, individually or collectively, as the case may be, the State Administration of Foreign Exchange of the PRC
(“SAFE”) and any other governmental authorities having jurisdiction over the PRC Resident before the PRC Resident can lawfully own any Shares, and (ii) secure approval from SAFE according to the applicable rules and regulations
then in effect before the PRC Resident can purchase foreign exchange with Renminbi, unless the PRC Resident otherwise legally owns foreign exchange for the exercise or settlement of the PRC Resident’s Awards, and such filing or approval is not
always attainable, and if the PRC Resident fails to secure filing with or approval from the PRC authorities, the PRC Resident may have difficulties either to remit foreign exchange to the Company to exercise or settle the PRC Resident’s Awards
or to receive proceeds and/or to convert the proceeds into Renminbi when the PRC Resident sells Shares issued pursuant to the Award. Failure to comply with these rules may also result in sanctions under the PRC foreign exchange regulations. It is
the PRC Resident’s duty to ensure full compliance with these PRC regulations at the PRC Resident’s own expense, and the Company assumes no responsibility to seek proper filing or approval on the PRC Resident’s behalf prior to the
initial public offering of the Company. The PRC Resident may have the foreign exchange related issues handled by a domestic agency selected by a PRC Subsidiary, if applicable. However, the PRC Resident shall undertake all the agency fees thereof.
The PRC Resident shall indemnify the Company and any of its Related Entities in the event that any such PRC Resident is penalized by SAFE as a result of such PRC Resident’s failure to comply with any applicable rules and regulations then in
effect. 

  
 17EX-10.4

 Exhibit 10.4 

Execution Version 
  

			
	CERTAIN IDENTIFIED INFORMATION MARKED AS [**REDACTED**] HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.	 	

  
  

 
 SHAREHOLDERS AGREEMENT 

by and among 
 NETEASE, INC.

 NET DEPTH HOLDINGS, INC. 

YOUDAO, INC. 
 YOUDAO
(HONG KONG) LIMITED 
 NETEASE YOUDAO INFORMATION TECHNOLOGY (BEIJING) CO., LTD. 

BEIJING NETEASE YOUDAO COMPUTER SYSTEM CO., LTD. 

NETEASE KAOSHEN (BEIJING) TECHNOLOGY CO., LTD. 

NETEASE LANGSHENG (BEIJING) TECHNOLOGY DEVELOPMENT CO., LTD. 

and 
 THE OTHER PARTIES
NAMED HEREIN 
 April 17, 2018 
  

 
  

 Table of Contents 

 

					
	 	  	Page	 
		
	 1.   DEFINITIONS
	  	 	2	 
		
	 2.   INFORMATION RIGHTS
	  	 	2	 
		
	 3.   REGISTRATION RIGHTS
	  	 	3	 
		
	 4.   RIGHT OF PARTICIPATION
	  	 	3	 
		
	 4.1  With Respect to Issuance of New Securities
	  	 	3	 
		
	 4.2  With Respect to Shares Owned by the Shareholders
	  	 	5	 
		
	 5.   INVESTORS’ CO-SALE
RIGHT
	  	 	7	 
		
	 5.1  Co-Sale Right
	  	 	7	 
		
	 5.2  Procedure at Closing
	  	 	8	 
		
	 5.3  Non-Exercise
	  	 	8	 
		
	 5.4  Adherence Agreement
	  	 	8	 
		
	 6.   BOARD REPRESENTATION; MANAGEMENT
	  	 	8	 
		
	 6.1  Board Composition
	  	 	8	 
		
	 6.2  Board Quorum; Meetings, etc.
	  	 	8	 
		
	 6.3  Observers
	  	 	9	 
		
	 6.4  No breach of duty
	  	 	9	 
		
	 6.5  Board Reserved Matters
	  	 	9	 
		
	 7.   COVENANTS
	  	 	10	 
		
	 7.1  Restrictions on Transfers
	  	 	10	 
		
	 7.2  Non-Competition
	  	 	11	 
		
	 7.3  ESOP
	  	 	11	 
		
	 7.4  Qualified IPO
	  	 	11	 
		
	 7.5  Redemption
	  	 	12	 
		
	 7.6  Lock-up
	  	 	13	 
		
	 7.7  Accounting Principles
	  	 	13	 
		
	 7.8  Anti-corruption
	  	 	14	 
		
	 8.   CONFIDENTIALITY AND
NON-DISCLOSURE
	  	 	14	 
		
	 8.1  Confidentiality
	  	 	14	 
		
	 8.2  Press Releases
	  	 	14	 
		
	 8.3  Permitted Disclosures
	  	 	14	 
		
	 8.4  Legally Compelled Disclosure
	  	 	15	 

  
 i 

					
		
	 9.   MISCELLANEOUS
	  	 	15	 
		
	 9.1  Successors and Assigns
	  	 	15	 
		
	 9.2  Third Party Rights
	  	 	15	 
		
	 9.3  Entire Agreement
	  	 	15	 
		
	 9.4  Notices
	  	 	16	 
		
	 9.5  Delays or Omissions; Remedies
	  	 	16	 
		
	 9.6  Interpretation; Titles and Subtitles
	  	 	16	 
		
	 9.7  Counterparts
	  	 	16	 
		
	 9.8  Severability
	  	 	17	 
		
	 9.9  Adjustment for Share Splits, etc.
	  	 	17	 
		
	 9.10  Most Favored Investor
	  	 	17	 
		
	 9.11  Pronouns
	  	 	17	 
		
	 9.12  Amendment
	  	 	17	 
		
	 9.13  Waiver of Rights
	  	 	17	 
		
	 9.14  Governing Law and Dispute Resolution
	  	 	18	 
		
	 9.15  Governing Language
	  	 	18	 
		
	 9.16  Shareholders Agreement to Prevail
	  	 	18	 
		
	 9.17  No Partnership
	  	 	18	 
		
	 9.18  Unlawful Fetters
	  	 	18	 
		
	 9.19  Further Assurance.
	  	 	18	 
		
	 9.20  Termination of Rights
	  	 	18	 
		
	SCHEDULE A List of Series A Investors	  	 	29	 
		
	SCHEDULE B Definitions	  	 	30	 
		
	EXHIBIT A ADHERENCE AGREEMENT	  	 	37	 
		
	EXHIBIT B NOTICES	  	 	38	 
		
	EXHIBIT C LIST OF COMPETITORS	  	 	39	 

  
 ii 

 SHAREHOLDERS AGREEMENT 

This SHAREHOLDERS AGREEMENT (this “Agreement”) is entered into on April 17, 2018 by and among: 

 

	(1)	 NETEASE, INC., a company incorporated in the Cayman Islands with limited liability, whose principal
business address is at Building No. 7, West Zone, Zhongguancun Software Park (Phase II), No. 10 Xibeiwang East Road, Haidian District Beijing 100193, the PRC (the “Founding Shareholder”);

  

	(2)	 NET DEPTH HOLDINGS, INC., a BVI Business Company incorporated in the British Virgin Islands, whose
registered office is at the offices of Maples Corporate Services (BVI) Limited, Kingston Chambers, PO Box 173, Road Town, Tortola, British Virgin Islands (the “Management Shareholder”); 

 

	(3)	 YOUDAO, INC., a company incorporated in the Cayman Islands with limited liability, whose
registered office is at the offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands (the “Company”); 

 

	(4)	 YOUDAO (HONG KONG) LIMITED, a company incorporated with
limited liability in Hong Kong (with registered number 2407111), whose registered office is at 1/F Xiu Ping Commercial Building, 104 Jervois Street, Sheung Wan, Hong Kong (“HK Company”); 

 

	(5)	 NETEASE YOUDAO INFORMATION TECHNOLOGY (BEIJING) CO., LTD., a wholly foreign owned enterprise established
under the laws of the PRC, whose registered office is at 1/F, Tower C, Building No. 7, West Zone Zhongguancun Software Park (Phase II) No. 10 Xibeiwang East Road, Haidian District (北京市海淀区西北旺东路 10
号院中关村软件园西区 7 号楼 A 座 1 层) (“Youdao IT”); 

 

	(6)	 BEIJING NETEASE YOUDAO COMPUTER SYSTEM CO., LTD., a limited liability company incorporated under the
laws of the PRC, whose registered office is at 2/F, Tower A, Building No. 7, West Zone Zhongguancun Software Park (Phase II)
No. 10 Xibeiwang East Road, Haidian District (北京市海淀区西北旺东路 10
号院中关村软件园西区 7
号楼 A 座 2 层) (“Youdao
Computer”); 

  

	(7)	 NETEASE KAOSHEN (BEIJING) TECHNOLOGY CO., LTD., a limited liability company incorporated under the laws
of the PRC, whose registered office is at Beijing Haidian District West, 1st Building, 12th floor, Room 1224
(北京市海淀区西草场一号 12 层 1224 号) (“KaoShen”); 

 

	(8)	 NETEASE LANGSHENG (BEIJING) TECHNOLOGY DEVELOPMENT CO., LTD., a wholly foreign owned enterprise
established under the laws of the PRC, whose registered office is at Beijing District West, 1st Block, 12th Story, Room 1203 (北京市海淀区西草场一号 12
层 1203 室) (“LangSheng”); and 

 

	(9)	 each of the Persons listed in Schedule A (each a “Series A Investor” and collectively, the
“Series A Investors”). 

  
 1 

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

WHEREAS, the Founding Shareholder, the Management Shareholder, the Company, entered into (i) the TH Series A Preferred Share Subscription
Agreement (as defined below) with TH EDU CAPITAL FUND I LP (being one of the Series A Investors) and (ii) the GSL Series A Preferred Share Subscription Agreement (as defined below) with GOOD SPIRIT LIMITED (晨曜有限公司) (being one of the Series A Investors) on April 12, 2018, pursuant to which each of the
Series A Investors subscribed for certain Series A Preferred Shares on the terms and conditions set out in the respective agreements. 

WHEREAS, in connection with the consummation of the transactions contemplated by the Series A Preferred Share Subscription Agreements, the
Parties desire to enter into this Agreement for the governance, management and operations of the Company and for the rights and obligations between and among the Shareholders (as defined below) and the Company. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

 

	1.	 DEFINITIONS. 

Capitalised terms used herein without definition shall have the respective meanings assigned to them in Schedule B attached to this
Agreement. The use of any term defined in Schedule B in its uncapitalised form indicates that the words have their normal and general meanings. 
  

	2.	 INFORMATION RIGHTS. 

The Company covenants and agrees that, commencing on the date of this Agreement and for so long as any Investor holds any Investment
Securities, the Company will deliver or cause to be delivered to such Investor the following documents with respect to the Group Companies: 

(a)    annual unaudited consolidated financial statements within ninety (90) days after the end of each fiscal year;

 (b)    quarterly unaudited consolidated financial statements within thirty (30) days after the end of each
quarter; 
 (c)    an annual consolidated budget for the following fiscal year within two (2) months after the end of
each fiscal year; and 
 (d)    upon the request by such Investor, such other information as such Investor shall
reasonably request. 

  
 2 

	3.	 REGISTRATION RIGHTS. 

If the Qualified IPO occurs on a stock exchange in a jurisdiction in which registration rights have significance (with the Parties agreeing,
for the avoidance of doubt, that the United States is such a jurisdiction) for the sale or other disposal of Shares by the Shareholders, the Company shall, prior to the consummation of such public offering, extend to the Shareholders registration
rights with respect to the Shares with terms and conditions customary for a transaction of similar type and size (including demand registration rights in the form of ‘S-3’ registration statements,
piggyback registration rights and shelf registration rights). 
  

	4.	 RIGHT OF PARTICIPATION. 

 

	 	4.1	 With Respect to Issuance of New Securities: 

(a)    General. Each of the Shareholders (the “Participation Rights Holders”, and each a
“Participation Rights Holder”) shall have a right of first refusal to purchase up to its Pro Rata Share of all of the New Securities that the Company may from time to time issue after the date of this Agreement in accordance with
the provisions of this Section 4.1 (the “Right of Participation”). 
 (b)    Pro Rata Share. A
Participation Rights Holder’s “Pro Rata Share” of all the New Securities is the ratio of (a) the number of Ordinary Shares (on an as-converted basis) held by such Participation
Rights Holder, to (b) the total number of Ordinary Shares (on an as-converted basis) held by all Participation Rights Holders. 

(c)    New Securities. “New Securities” shall mean any Preferred Shares, Ordinary Shares or other
shares of the Company, whether now authorised or not, and rights, options or warrants to purchase such Preferred Shares, Ordinary Shares and securities of any type whatsoever that are, or may become, convertible or exchangeable into such Preferred
Shares, Ordinary Shares or other voting shares; provided, however, that the term “New Securities” shall not include: 

(i)    any Series A Preferred Shares allotted and issued under the Series A Preferred Share Subscription Agreements or
any Ordinary Shares allotted and issued upon conversion of the Preferred Shares; 
 (ii)    any securities issued in
connection with any share split, share dividend or other similar event in which all Participation Rights Holders are entitled to participate on a pro rata basis; 

(iii)    any Ordinary Shares allotted and issued (or allottable and issuable) to officers, directors, employees and
consultants of the Company pursuant to any equity plan or incentive arrangement approved by the Board in accordance with this Agreement and the Restated M&A; 

(iv)    any securities issued pursuant to the acquisition of another corporation or entity by the Company by
consolidation, merger, purchase of assets, or other re-organisation in which the Company acquires, in a single transaction or series of related transactions, a majority of the assets, voting power or equity
ownership of such other corporation or entity, as duly approved by the Board in accordance with this Agreement and the Restated M&A; and 

(v)    any securities offered in a Qualified IPO. 

  
 3 

 (d)    Procedures. 

(i)    First Participation Notice. In the event that the Company proposes to undertake an issuance of New
Securities in a single transaction or a series of related transactions, it shall deliver to each Participation Rights Holder a written notice of its intention to issue the New Securities (the “First Participation
Notice”), describing the amount, the type and the price of the New Securities and the general terms upon which the Company proposes to issue such New Securities. Each Participation Rights Holder shall be entitled to purchase such
Participation Rights Holder’s Pro Rata Share of such New Securities at the price and upon the terms and conditions specified in the First Participation Notice by delivering a written notice to the Company and stating therein the number of New
Securities to be purchased (such number shall not exceed such Participation Rights Holder’s Pro Rata Share) within twenty (20) Business Days from the date of such First Participation Notice. If any Participation Rights Holder fails to send
such written notice within the prescribed time period or declines to exercise fully its Right of Participation, then such Participation Rights Holder shall be deemed to have waived its right to purchase its Pro Rata Share in connection with the
proposed transaction(s). 
 (ii)    Second Participation Notice. If any Participation Rights Holder fails or
declines to exercise fully its Right of Participation in accordance with sub-Section (d)(i) above, the Company shall promptly deliver a written notice (the “Second Participation Notice”) to
the other Participation Rights Holders who agreed to exercise fully their Right of Participation in accordance with sub-Section (d)(i) above. Each such Participation Rights Holder shall have five
(5) Business Days from the date of the Second Participation Notice (the “Second Participation Period”) to notify the Company in writing of its desire to purchase more than its Pro Rata Share of the New Securities, stating the
number of the additional New Securities it proposes to purchase. If, as a result thereof, the election by the Participation Rights Holders results in an oversubscription of New Securities exceeding the total number of the remaining New Securities
available for purchase, each oversubscribing Participation Rights Holder will be cut back by the Company with respect to its oversubscription to the number of the remaining New Securities equal to the product obtained by multiplying (i) the
number of the remaining New Securities available for subscription by (ii) a fraction, the numerator of which shall be the number of the Ordinary Shares (on an as-converted basis) held by such
oversubscribing Participation Rights Holder, and the denominator of which shall be the total number of the Ordinary Shares (on an as-converted basis) held by all the oversubscribing Participation Rights
Holders. 
 (iii)    Each oversubscribing Participation Rights Holder shall be obligated to purchase such number of
additional New Securities as determined by the Company pursuant to sub-Section (d)(ii), and the Company shall so notify the Participation Rights Holders within fifteen (15) Business Days from the date of
the Second Participation Notice. 
 (e)    Failure to Exercise. (i) In the event no Participation Rights
Holder elects to exercise fully its Right of Participation with respect to the New Securities described in the First Participation Notice, after twenty (20) Business Days following the date of the First Participation Notice, or (ii) if the
total number of oversubscription by the other Participation Rights Holder in accordance with sub-Section (d)(d)(ii) above is less than the total number of the remaining New Securities, upon the expiration of
the Second Participation Period, the Company shall have a period of ninety (90) days thereafter to sell the New Securities described in the First Participation Notice (with respect to which the Right of Participation was not fully exercised) at
the same price and upon the same terms specified in the First Participation Notice. In the event that the Company has not allotted and issued such New Securities within such prescribed period, then the Company shall not thereafter allot or issue any
New Securities without first offering such New Securities to the Participation Rights Holders pursuant to this Section 4.1. 

  
 4 

	 	4.2	 With Respect to Shares Owned by the Shareholders: 

(a)    Restriction on Transfers. Subject to Section 7.1, each Shareholder may not Dispose of its Shares to any
Person, whether directly or indirectly, except in compliance with this Section 4.2 and Section 5. Any attempt by a Shareholder to Dispose of any of its Shares in violation of Section 4.2, Section 5 or Section 7.1 shall be
void, and the Company undertakes that it will not effect such transfer nor will treat any alleged transferee as the holder of such Shares. 

(b)    Notice of Sale. If any Shareholder (the “Selling Shareholder”) proposes to sell or
transfer, directly or indirectly, any of its Shares (the “Transfer Shares”), then the Selling Shareholder shall promptly deliver a written notice (the “First Transfer Notice”) to the Company and each of the other
Shareholders (the “Non-Selling Shareholder”), which First Transfer Notice shall include (i) the number of Transfer Shares to be sold or transferred and the nature of such sale or
transfer, (ii) the identity (identities) (including name(s) and address(es)) of the prospective transferee(s), and (iii) the price per Transfer Share and (iv) the material terms and conditions upon which the proposed sale or transfer
is to be made. The First Transfer Notice shall certify that the Selling Shareholder has received a firm offer from the prospective transferee(s) and in good faith believes a binding agreement for the sale or transfer is obtainable on the terms set
forth in the First Transfer Notice. The First Transfer Notice shall also include a copy of any written proposal, term sheet or letter of intent or other agreement relating to the proposed transfer. 

(c)    Notice of Purchase. Each Non-Selling Shareholder shall be entitled
to elect to purchase all or any part of such Non-Selling Shareholder’s pro rata share of the Transfer Shares at the price and upon the terms and conditions specified in the First Transfer Notice by
delivering a written notice to the Selling Shareholder within twenty (20) Business Days after the date of the First Transfer Notice (the “First Refusal Period”) stating therein the number of the
Transfer Shares to be purchased. If a Non-Selling Shareholder exercises such right and notifies the Selling Shareholder in writing of the number of Transfer Shares to be purchased, then such Non-Selling Shareholder shall complete the purchase of the Transfer Shares on the same terms and conditions as those set out in the First Transfer Notice. A failure by a
Non-Selling Shareholder to respond within such prescribed period shall be deemed to constitute a decision by such Non-Selling Shareholder not to exercise its right to
purchase such Transfer Shares. For the purpose of this Section 4.2(c) only, each Non-Selling Shareholder’s pro rata share of the Transfer Shares shall be equal to the number of the Transfer Shares,
multiplied by a fraction, the numerator of which shall be the number of the Ordinary Shares (on an as-converted basis) held by such Non-Selling Shareholder on the date
of the First Transfer Notice, and the denominator of which shall be the total number of the Ordinary Shares (on an as-converted basis) held on the date of the First Transfer Notice by all Non-Selling Shareholders. 

  
 5 

 (d)    Second Transfer Notice. If any Non-Selling Shareholder does not exercise its right of first refusal (each, a “Non-Eligible Non-Selling
Shareholder”) to the full extent to purchase such Non-Selling Shareholder’s pro rata share of the Transfer Shares, the Selling Shareholder shall deliver written notice thereof (the
“Second Transfer Notice”), within ten (10) Business Days after the expiration of the First Refusal Period, to each Non-Selling Shareholder (other than a
Non-Eligible Non-Selling Shareholder) who elected to purchase its pro rata share of the Transfer Shares to the full extent. Each such
Non-Selling Shareholder shall have five (5) Business Days from the date of the Second Transfer Notice (the “Second Refusal Period”) to notify the Selling Shareholder of its desire to
purchase more than its pro rata share of the Transfer Shares, stating the number of the additional Transfer Shares it proposes to purchase. If, as a result thereof, the election by the Non-Selling Shareholders
results in an over-purchase of the Transfer Shares exceeding the total number of the remaining Transfer Shares available for purchase, each over-purchasing Non-Selling Shareholder will be cut back with respect
to their over-purchase of the Transfer Shares to the number of remaining Transfer Shares equal to the product obtained by multiplying (i) the number of the remaining Transfer Shares available for purchase by (ii) a fraction, the numerator
of which shall be the number of the Ordinary Shares (on an as-converted basis) held by each over-purchasing Non-Selling Shareholder, and the denominator of which shall
be the total number of the Ordinary Shares (on an as-converted basis) held by all the over-purchasing Non-Selling Shareholders. Each over-purchasing Non-Selling Shareholder shall be obligated to purchase such number of additional Transfer Shares as determined by the Selling Shareholder pursuant to this Section 4.2(d) and the Selling Shareholder shall so
notify such Shareholder within fifteen (15) Business Days from the date of the Second Transfer Notice. 

(e)    Non-Exercise. In the event that: 

(i)    (A) the Selling Shareholder is not an Ordinary Selling Shareholder and (B) the
Non-Selling Shareholders fail to elect to purchase all (and not only a part) of the Transfer Shares within the First Refusal Period (or, if Section 4.2(c) applies, within the Second Refusal Period), the
Selling Shareholder shall have ninety (90) Business Days after the expiry of the First Refusal Period (or, if Section 4.2(c) applies, after expiry of the Second Refusal Period) to sell such Transfer Shares at a price upon terms and
conditions no more favorable to the relevant transferee than those specified in the First Transfer Notice. In the event that such Selling Shareholder has not sold the Transfer Shares within such prescribed period, such Selling Shareholder shall not
thereafter sell any Shares without first offering such Shares to the Non-Selling Shareholders in the manner provided in this Section 4.2; or 

(ii)    the Selling Shareholder is an Ordinary Selling Shareholder, then the provisions of Section 5 shall apply.

 (f)    Closing. In the event that (i) the Selling Shareholder is not an Ordinary Selling Shareholder and
(ii) the Non-Selling Shareholders elect to purchase all (and not only a part) of the Transfer Shares pursuant to this Section 4.2 (or, if Section 4.2(c) applies, after expiry of the Second
Refusal Period), then such Non-Selling Shareholders shall purchase and pay for the Transfer Shares to be purchased by wire transfer in immediately available funds of the appropriate currency, against delivery
of the Transfer Shares by the Selling Shareholder, at a place and time agreed by the Selling Shareholder and such Non-Selling Shareholders, but in any event within ten (10) Business Days after the expiry
of the above prescribed period, provided that, if the transfer of the Transfer Shares is subject to any prior regulatory approval, the time period during which such transfer may be consummated shall be extended until the expiry of five
(5) Business Days after all such approvals shall have been received, but in no event shall such period be extended for more than an additional ninety (90) days. 

  
 6 

	5.	 INVESTORS’ CO-SALE RIGHT. 

5.1    Co-Sale Right. In the event that the Selling Shareholder is an
Ordinary Selling Shareholder and to the extent any Investor does not exercise its respective rights of first refusal as to any of such Transfer Shares pursuant to Section 4.2, such Investor shall have the right, exercisable upon delivery of a
written notice to the Ordinary Selling Shareholder, with a copy to the Company, within twenty (20) Business Days after the date of the First Transfer Notice, to participate in the sale of such Transfer Shares by selling up to such
Investor’s Pro Rata Co-Sale Share at the same price and upon the same terms and conditions as set out in the First Transfer Notice. A failure by such Investor to respond within such prescribed period
shall be deemed to constitute a decision by such Investor not to exercise its co-sale right as provided herein with respect to such sale. To the extent one (1) or more Investors exercise(s) their co-sale right in accordance with the terms and conditions set forth below, the number of the Transfer Shares that the Ordinary Selling Shareholder may sell in the transaction shall be correspondingly reduced. The
foregoing co-sale right of each Investor shall be subject to the following terms and conditions: 

(a)    each Investor may require the Ordinary Selling Shareholder to include in the proposed sale of the Transfer Shares
up to a maximum number of its Preferred Shares or Conversion Shares equal to such Investor’s Pro Rata Co-Sale Share of the Transfer Shares; provided, that in the event that the Ordinary Selling
Shareholder contemplates to transfer an amount of Shares equal to more than fifty per cent. (50%) of the aggregate number of Shares then outstanding, each Investor may require the Ordinary Selling Shareholder to include in the proposed sale of the
Transfer Shares up to all of its Shares. An Investor’s “Pro Rata Co-Sale Share” of the Transfer Shares means such number of the Ordinary Shares (or such number of the
Preferred Shares that, if converted at the then effective conversion ratio, would equal that number of Ordinary Shares) that equals the number of the Transfer Share proposed to be transferred by the Ordinary Selling Shareholder multiplied by a
fraction equal to (i) the total number of Ordinary Shares (on an as-converted basis) held by such Investor, divided by (ii) the total number of Ordinary Shares (on an
as-converted basis) held by the Ordinary Selling Shareholder and all Investors exercising the co-sale right pursuant to this Section 5. 

(b)    each Investor shall effect its participation in the sale by promptly delivering to the Ordinary Selling
Shareholder, with a copy to the Company, for transfer to the prospective purchaser, share certificates in respect of all Shares to be sold by such Investor and a transfer form signed by such Investor, which indicates: 

(i)    the number of Ordinary Shares that such Investor elects to sell; 

(ii)    that number of the Preferred Shares that is at such time convertible into the number of the Ordinary Shares that
such Investor elects to sell; or 
 (iii)    any combination of the foregoing; 

provided, however, that if the prospective purchaser objects to the transfer of the Preferred Shares instead of Ordinary Shares, such Investor
shall convert such Preferred Shares into Ordinary Shares and thereafter transfer the corresponding newly-converted Ordinary Shares. The Company agrees to effect any such conversions concurrently with the actual transfer of such Shares to the
purchaser. 

  
 7 

 5.2    Procedure at Closing. The share certificate or
certificates that an Investor delivers to the Ordinary Selling Shareholder pursuant to Section 5.1(b) shall be transferred to the prospective purchaser in consummation of the sale of the Transfer Shares pursuant to the terms and conditions
specified in the First Transfer Notice, and the Ordinary Selling Shareholder shall concurrently therewith remit to such Investor that portion of the sale proceeds to which such Investor is entitled by reason of its participation in such sale. To the
extent that any prospective purchaser or purchasers prohibit such assignment or otherwise refuse to purchase shares or other securities from an Investor exercising its co-sale right hereunder, the Ordinary
Selling Shareholder shall not consummate the transfer of any Transfer Shares to such prospective purchaser or purchasers unless and until, simultaneously with such consummation of transfer, the Ordinary Selling Shareholder consummates the purchase
of such shares or other securities from such Investor on the same terms and conditions. In selling their Shares pursuant to their co-sale right hereunder, the Investor shall not be required to give any
representations or warranties with respect to the business of the Group Companies except to warrant that it has full legal and beneficial ownership of the Shares to be transferred and have not transferred or Encumbered and it has obtained due
authorisation to transfer such Shares. 
 5.3    Non-Exercise. Subject to
Section 4.2 and this Section 5, to the extent the Investors do not elect to participate in the sale of the Transfer Shares pursuant to the First Transfer Notice, the Ordinary Selling Shareholder shall have ninety (90) Business Days
after delivery of the First Transfer Notice to effect a transfer of the Transfer Shares covered by the First Transfer Notice and not elected to be sold by the Investors. Any proposed transfer on terms and conditions more favorable than those
described in the First Transfer Notice, as well as any subsequent proposed transfer of any Shares by the Ordinary Selling Shareholder, shall be subject to the procedures described in Section 4.2 and this Section 5. 

5.4    Adherence Agreement. For any transfer of Shares to be deemed effective, the transferee shall assume the
obligations of the transferor under this Agreement by executing and delivering to the Company an adherence agreement substantially in the form attached hereto as Exhibit A (the “Adherence Agreement”). Upon the execution and
delivery of an Adherence Agreement by any transferee, such transferee shall be deemed to be an Ordinary Shareholder, Founding Shareholder, Investor and/or Preferred Shareholder hereunder, as appropriate. 

 

	6.	 BOARD REPRESENTATION; MANAGEMENT. 

6.1    Board Composition. The Board shall be responsible for the overall direction and supervision of the business
of the Group Companies in accordance with this Agreement and the Restated M&A. The Board shall consist of seven (7) Directors. For so long as TH holds Shares equal to at least 75% of the total number of Investment Securities held by it as
at the TH Completion Date (on an as-converted basis), TH shall be entitled to appoint and remove one (1) Director (the “TH Director”). The Founding Shareholder shall be entitled to
appoint and remove four (4) Directors. The Management Shareholder shall be entitled to appoint and remove two (2) Directors. Any vacancy on the Board occurring because of the death, resignation or removal of a Director shall be filled by
the vote or written consent of the same Shareholder or Shareholders who appointed such Director. Any appointment or removal of a Director by a Shareholder shall be made by such Shareholder giving written notice to the Company. The appointment or
removal shall, to the extent permitted by Applicable Laws, take effect immediately upon receipt of the notice by the Company or such later date specified by the Shareholder in the notice. 

6.2    Board Quorum; Meetings, etc. The quorum of the meetings of the Board shall be four (4) Directors,
including the presence, in person or by telephone, electronic or other means of communication, of the TH Director, provided, however, that if such quorum cannot be obtained for a Board meeting after two (2) consecutive notices of
Board meetings have been sent by the Company, then the attendance of any four (4) Directors shall constitute a quorum; provided further that matters discussed in such adjourned meeting shall be limited to those stated in the
written notices and agendas of the Board meetings. Notices and agendas of Board meetings, as well as copies of all Board papers, shall be sent to each Director at least five (5) Business Days prior to the relevant Board meeting. 

  
 8 

 6.3    Observers. For so long as TH is entitled to appoint and
remove the TH Director, TH may at any time appoint an observer to each Major Group Company (other than the Company) (each, a “TH Observer”) and the Major Group Companies (other than the Company) shall ensure that each TH Observer
shall have the right to attend, receive notices, and speak at, all meetings of its board of directors and any committee thereof, but who shall not have the right to vote on any resolution of its board of directors or such committee. Each Major Group
Company (other than the Company) shall provide to each TH Observer all notices, minutes, consents, resolutions and all other materials and information that it provides to such Major Group Company’s directors with respect to meetings of its
board of directors or any such committee at the same time that such materials and information are given to its directors. 

6.4    No Breach of Duty. Subject to Applicable Laws, each Shareholder agrees that a Director shall not be in
breach of his duties to the Company by reason of his acting in accordance with this Section 6.4 or otherwise in accordance with the terms of this Agreement and the Restated M&A. Accordingly, each Shareholder authorises each Director to,
subject to the restrictions under the Applicable Laws: 
 (a)    act as a Director notwithstanding his appointment by
that Shareholder for the purposes of representing that Shareholder’s interests and monitoring and evaluating its investment in the Company and the other Group Companies; 

(b)    attend and vote at Board meetings (or any committee thereof) at which any matter will be discussed in which he has
a conflict of interest or duty by virtue of his appointment by a Shareholder and receive board papers relating thereto; and 

(c)    receive and deal with confidential information and other documents and information relating to any Group Company or
its business or assets and to use and apply such information in representing the interests of the Shareholder that appointed him (including pursuant to the provisions of Section 8.18.1(c)), 

and each authorisation set out in this Section 6.4 shall apply mutatis mutandis to the directors of the other Group Companies. 

6.5    Board Reserved Matters. Notwithstanding anything to the contrary in this Agreement, no Original Group
Company shall take any action (and the Shareholders shall procure that no Original Group Company shall take any action) with respect to any of the following matters (each, a “Board Reserved Matter”) without the affirmative vote of
the TH Director: 
 (a)    any amendment or change of the rights, preferences, economic or other interests, privileges
or powers of, or the restrictions provided for the benefit of any Series A Preferred Share (including by way of an amendment to the constitutional documents or bye-laws or a reclassification of shares of such
Original Group Company, to the extent such matter amends or changes the rights, preferences, economic or other interests, privileges or powers of, or the restrictions provided for the benefit of any Series A Preferred Share); 

  
 9 

 (b)    any Trade Sale or initial public offering of any Original Group
Company; 
 (c)    any cessation to conduct or any change in the principal business of any Original Group Company as
currently conducted; 
 (d)    any declaration, setting aside or payment of a dividend or other distribution in any
kind by any Original Group Company, or capitalisation of the reserves of any Original Group Company; 
 (e)    any
consent to any proceeding seeking liquidation, winding up, dissolution, re-organisation, or arrangement of any Original Group Company under any law relating to bankruptcy, insolvency or re-organisation or relief of debtors; 
 (f)    amend, waive or terminate any of the
Control Documents; 
 (g)    any creation, adoption, amendment or administration of any bonus or incentive plan, profit
sharing mechanism, employee stock option plan or any other stock option plan, or restricted stock plan of any Original Group Company or grant any option under such plans; 

(h)    enter into any related-party agreement, arrangement or understanding between a Original Group Company, on the one
side, and any Original Group Company’s shareholder(s), director(s), officer(s), employee(s) or their respective Affiliate(s) (other than the Original Group Companies), on the other side, in each case: 

(1)    with a value of US$5,000,000 or more, either in a single transaction or series of related
transactions within any 12-month period, and is not: (A) in the ordinary course of business; or (B) on arm’s length terms; and 

(2)    other than any employment agreement or service agreement entered into with any Original Group
Companies; 
 (i)    any agreement or commitment by any Original Group Company (as applicable) to do any of the
foregoing, 
 provided, however, that the Board Reserved Matters do not include any matter that, if not carried out by KaoShen or LangSheng
(as applicable), will result in a breach by KaoShen or LangSheng (as applicable) of a material obligation under the Third Party JV Agreements. 
  

	7.	 COVENANTS. 

 

	 	7.1	 Restrictions on Transfers. 

(a)    Subject to the permitted transfers set out in Section 7.1(c): 

(i)    the Founding Shareholder agrees that, without the prior written consent of the Preferred Majority, it shall not
(and shall procure that each Management Member shall not), directly or indirectly, Dispose of any of its/their Shares or any shares of other Group Companies within forty-eight (48) months after the date hereof; and 

(ii)    each Investor agrees that, without the prior written consent of the Founding Shareholder, it shall not, directly
or indirectly, Dispose of any of its Shares or any shares of other Group Companies within forty-eight (48) months after the date hereof. In the case that any Share is held by its ultimate beneficial owner through one or more levels of holding
companies, any transfer, repurchase, or new issuance of the shares of such holding companies or similar transactions that have the effect of changing the beneficial ownership of such Share shall be deemed as an indirect transfer of such Share. 

  
 10 

 (b)    The Parties agree that the restrictions on the Disposal of Shares
held by the Shareholders contained in this Agreement shall apply to such indirect transfer and shall not be circumvented by means any indirect transfer of the Shares. 

(c)    Notwithstanding anything to the contrary contained herein, the transfer restrictions under this Section 7.1,
Section 4 and Section 5 shall not apply to: (i) any transfer of Shares by a Shareholder to any of its Affiliates (the “Permitted Transferee”) (provided, that such Permitted Transferee agrees in writing to be
bound by this Agreement in place of the relevant transferor by executing an Adherence Agreement as provided in Section 5.4 and such transferor shall remain jointly and severally liable with the Permitted Transferee and all subsequent Permitted
Transferees who hold such Shares in respect of the obligations set out under this Agreement); (ii) any bona fide transfer by a limited partner of an Investor of its partnership interest expressly permitted under the applicable limited
partnership agreement, or change of control of any limited partner of an Investor (provided that in each case, the transferee pursuant to any such transfer or change of control is not a Competitor); or (iii) any transfer of the equity
interest or partnership interests in the Management Shareholder among shareholders thereof (as of the date of this Agreement). 

(d)    Notwithstanding anything to the contrary in the Transaction Documents or elsewhere, each Investor agrees that,
without the prior written consent of the Founding Shareholder, it shall not, and shall procure its transferee not to, transfer or sell any Share or any rights/interests under the Transaction Documents held by it to any Competitor of the Group
Companies. 
 7.2    Non-Competition. The Founding Shareholder undertakes
and covenants to the Investors that it will use commercially reasonable endeavours to procure each Management Member to comply with his/her obligations under the respective non-competition agreement (竞业禁止协议). 

7.3    ESOP. 

(a)    The Parties hereby agree and acknowledge that as of the date hereof, the Board has established and adopted an
employee share option plan (the “ESOP”) and a total of 10,222,222 Ordinary Shares have been reserved under the ESOP. 

(b)    The power and authority to administer the ESOP and grant any option thereunder shall be vested in the Board. 

7.4    Qualified IPO. 

(a)    The Founding Shareholder, the Management Shareholder and the Investors hereby agree that they shall use all
commercially reasonable endeavors to achieve a Qualified IPO of the Company within forty-eight (48) months after the date hereof or such longer term as may be approved by the Board from time to time (the “Target
Period”). 

  
 11 

 (b)    To the extent permitted by Applicable Laws, TH shall have the
right to subscribe for certain Ordinary Shares (or securities representing Ordinary Shares) offered in the Qualified IPO as a corner stone investor on the terms and conditions to be mutually agreed in writing by the Company and TH. 

7.5    Redemption. 

(a)    Upon the failure of the Company to complete a Qualified IPO within the Target Period, the Series A Preferred Shares
shall become redeemable, at the sole discretion of their holders; at the redemption price per Series A Preferred Share (the “Company Series A Redemption Price”) equal to: 

IP × 140% + D 
 WHERE, for
the purposes of this Section 7.5(a): 
 IP = Series A Issue Price, and 

D = all declared but unpaid dividends on such Series A Preferred Share up to the date of redemption, proportionally adjusted for share
subdivisions, share dividends, re-organisations, reclassifications, consolidations or mergers. 

(b)    A notice of redemption by the requesting holders to be redeemed shall be delivered to the Company in accordance
with Section 9.4, within ninety (90) days after but not including the date of expiration of the Target Period (the “Redemption Notice”), stating the date on which the requested shares are to be redeemed (the
“Redemption Date”); provided, however, that the Redemption Date shall be no earlier than the sixtieth (60th) Business Day after (but not including) the
date on which such Redemption Notice is given. Upon receipt of any such request, the Company shall promptly deliver written notice of the redemption request to the Founding Shareholder, stating the existence of such request, the applicable
redemption amount, the Redemption Date and the mechanics of redemption. If a Series A Investor fails to deliver its Redemption Notice within the ninety (90) day period as set out above, such Series A Investor shall be deemed to have irrevocably
forfeited its redemption right under this Agreement. 
 (c)    If the number of Preferred Shares that could be redeemed
to the extent permitted by Applicable Laws is less than the number of Preferred Shares requested to be redeemed (other than due to the Company not having sufficient funds to redeem all of the Preferred Shares requested to be redeemed), the Company
shall redeem such number of the Preferred Shares requested to be redeemed as permitted to the maximum extent by Applicable Laws, and the un-redeemed portion of the Preferred Shares shall be carried forward and
redeemed as soon as the Company is permitted by Applicable Laws to redeem such un-redeemed portion of the Preferred Shares. 

  
 12 

 (d)    If the Company does not have sufficient funds to redeem all of
the Preferred Shares requested to be redeemed, the Company shall use those funds that are legally available, to the extent permitted by Applicable Laws, to redeem the Series A Preferred Shares requested to be redeemed at the Company Series A
Redemption Price from the requesting Series A Investors, on a pro rata basis in proportion to the shareholding percentage of such Series A Investors respectively. The Founding Shareholder shall purchase from the requesting Series A Investors such
Series A Preferred Shares requested to be redeemed in the Redemption Notice but not redeemed by the Company, at a purchase price per Series A Preferred Share equal to: 

IP × (1 + 6%)4 + D 

WHERE, for the purposes of this Section 7.5(d): 

IP = Series A Issue Price, 
 D =
all declared but unpaid dividends on such Series A Preferred Share up to the date of redemption, proportionally adjusted for share subdivisions, share dividends, re-organisations, reclassifications,
consolidations or mergers. 
 (e)    To effect the redemption, the holder of Shares requesting redemption shall
surrender his or her certificate or certificates (or an affidavit of lost share certificate(s)) representing such Shares to be redeemed by the Company or to be purchased by the Founding Shareholder (as applicable) in the manner and at the place
designated by the Company for that purpose, and thereupon the redemption or purchase amount (as applicable) shall be payable to the order of the person whose name appears on such certificate or certificates (or an affidavit of lost share
certificate(s)) (or the register of members where no share certificate is issued) as the owner of such Shares and each such certificate, if any, shall be cancelled. In the event that less than all the Shares represented by any such certificate (or
an affidavit of lost share certificate(s)) are redeemed or purchased, a new certificate shall be promptly issued representing the un-redeemed and un-purchased Shares,
and the un-redeemed and un-purchased Shares shall continue to have all of the rights, preferences and privileges attached to such Shares as set forth the Restated
M&A. In the event that any Share is purchased by the Founding Shareholder, the Company shall promptly (i) update the register of members to effect the Founding Shareholder as the holder of such purchased Shares; and (ii) issue a new
share certificate to the Founding Shareholder evidencing the Founding Shareholder’s ownership of such purchased Shares. Unless there has been a default in payment of the applicable redemption amount, upon cancellation of the certificate, if
any, representing such Shares to be redeemed, all dividends on such Shares designated for redemption on the Redemption Date shall cease to accrue, and all rights of the holders thereof, except the right to receive the applicable redemption amount
thereof, without interest, shall cease and terminate; provided, however, that the Shares purchased by the Founding Shareholder shall continue to bear all the rights attached thereto (including the right to accrue dividends). 

(f)    From the Redemption Date to the date on which all of the redemption amounts are paid in full, the Company and the
Directors shall not declare or pay any dividend or otherwise make any other distributions. 
 7.6    Lock-up. Subject to the terms and conditions hereof, following the Qualified IPO of the Company, the Founding Shareholder and the Management Shareholder shall be subject to a
lock-up period that is at least twelve (12) months longer than the lock-up period committed by the Series A Investors in connection with the registration relating
to such initial public offering. 
 7.7    Accounting Principles. The Company shall prepare its financial
statements (including its consolidated financial statements) and management accounts in accordance with U.S. GAAP. 

  
 13 

 7.8    Anti-corruption. The Company shall, and shall procure that
each other Group Company shall at all times comply with all Applicable Laws relating to anti-bribery or anti-corruption. 
  

	8.	 CONFIDENTIALITY AND NON-DISCLOSURE.

 8.1    Confidentiality. Each Shareholder acknowledges that the terms and conditions
(collectively, the “Terms”) of the Transaction Documents (including all exhibits, restatements and amendments thereto), including their existence, and any information relating to the business, financial or other matters of the Group
Companies obtained by the Shareholders (the “Company Information”) shall be considered confidential information and shall not be disclosed by it to any third party except in accordance with the provisions set forth below. The
confidentiality obligations set out in this Section 8 do not apply to: 
 (a)    information that was in the public
domain or otherwise known to the relevant party before it was furnished to it by another party hereto or, after it was furnished to that party, entered the public domain otherwise than as a result of (i) a breach by that party of this
Section 8 or (ii) a breach of a confidentiality obligation by the discloser, where the breach was known to that party; 

(b)    information the disclosure of which is necessary in order to comply with any Applicable Laws, the order of any
court, the requirements of a stock exchange or to obtain tax or other clearances or consents from any relevant authority; or 

(c)    the disclosure of information by any director of the Company to its appointer or any of its Affiliates. 

8.2    Press Releases. Any marketing activities by any Investor to the general public (such as an announcement,
press release, conference, advertisement, professional or industry publication) relating to the transactions contemplated under the Transaction Documents shall be proposed to and subject to prior written consent by the Founding Shareholder. Without
the prior written consent of the applicable Shareholder, none of the other Party shall use, publish, reproduce, or refer to the name, trademark or logo of such Shareholder or its Affiliates in connection with such Shareholder’s relationship
with the Company in any documents, materials or public discussion, including for marketing or other purposes. 

8.3    Permitted Disclosures. Notwithstanding anything to the contrary in this Agreement: 

(a)    the Company and the Founding Shareholder may disclose any of the Terms and Company Information to their respective
current or prospective investors, directors, officers, employees, shareholders, investment bankers, lenders, accountants, auditors, insurers, business or financial advisors, and attorneys; and 

(b)    each Investor shall have the right to disclose: 

(i)    any information to such Investor’s Affiliate, such Investor’s and/or its Affiliate’s employee,
legal counsel, auditor, insurer, accountant, consultant or to an officer, director, investment counsel or advisor, or employee of such Investor, or Affiliate or any of their respective investors or Affiliates on a need-to-know basis, provided, however, that any of the foregoing Persons shall be advised of the confidential nature of the information and are under appropriate
non-disclosure obligation imposed by professional ethics, law or otherwise under any non-disclosure obligation owed by such Person to the Company; 

  
 14 

 (ii)    any Limited Information to (A) bona fide
prospective purchasers/investors of any share, security or other interests in the Company, and (B) any direct or indirect limited partner or investor of such Investor or its Affiliates; 

provided, that, in each case of (i) and (ii) above, each Investor shall (X) direct such recipients (the
“Recipients”) of the Company Information disclosed by such Investor or its Affiliates to comply with confidentiality obligations substantially similar to those set out in this Agreement; (Y) not, and shall ensure that its
Affiliates not to, disclose any Company Information to a Competitor; and (Z) be responsible for the relevant Recipient’s breach of confidentiality obligations. For the purpose of this Section 8.3, “Limited
Information” shall refer to the following information: (A) financial information provided by the Company to the Investor pursuant to Section 2 (Information Rights); and (B) any updates or changes to the structure of
the Group Companies or the group structure under the Control Documents. 
 8.4    Legally Compelled Disclosure.
In the event that any Party becomes legally compelled (including pursuant to securities laws and regulations) to disclose the existence of this Agreement or any Terms in contravention of the provisions of this Section 8, such Party (the
“Disclosing Party”) shall, if and to the extent that it can lawfully do so, provide the other Parties (the “Non-Disclosing Parties”) with prompt written notice of that fact so
that the appropriate Party may seek (with the cooperation and reasonable efforts of the other Parties) a protective order, confidential treatment or other appropriate remedy. In such 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 to the extent reasonably requested by any
Non-Disclosing Party. 
  

	9.	 MISCELLANEOUS. 

9.1    Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to
the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and administrators of the Parties whose rights or obligations hereunder are affected by such provisions. Each permitted transferee, successor, or assignee of
each Investor shall become a party of this Agreement by executing and delivering to the Company an Adherence Agreement in the form attached hereto as Exhibit A. Except as otherwise expressly provided herein, no Shareholder may assign any of
its rights or delegate any of its obligations under this Agreement without the prior written consent of the other Parties except in connection with a transfer of such Shareholder’s Shares expressly and specifically permitted by this Agreement.

 9.2    Third Party Rights. The Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong
Kong) shall not apply to this Agreement and unless expressly herein provided no person other than the parties to this Agreement shall have any rights under it nor shall it be enforceable by any person other than the parties to it. 

9.3    Entire Agreement. This Agreement, the Series A Preferred Share Subscription Agreements and any other
Transaction Document, together with all the schedules and exhibits hereto and thereto, which are hereby expressly incorporated herein by this reference, constitute the entire understanding and agreement between the Parties with regard to the
subjects hereof and thereof and supersede all prior agreements and undertakings, both written and oral, among the Parties with respect to the subject matter hereof and thereof; provided, however, that nothing in this Agreement or
related agreements shall be deemed to terminate or supersede the provisions of any confidentiality and nondisclosure agreements executed by the Parties prior to the date of this Agreement, all of which agreements shall continue in full force and
effect until terminated in accordance with their respective terms. 

  
 15 

 9.4    Notices. Except as may be otherwise provided herein, all
notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand-delivered to the other Party; (b) when sent by facsimile at the
number set forth below, upon a successful transmission report being generated by the sender’s machine; or (c) three (3) Business Days after deposit with an internationally recognised overnight delivery service, postage prepaid, addressed
to the Parties as set forth below with next-business-day delivery guaranteed; provided that the sending Party receives a confirmation of delivery from the delivery service provider. Each Person making a
communication hereunder by facsimile shall promptly confirm by telephone to the Person to whom such communication was addressed each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the
validity of any such communication. A Party may change or supplement the addresses given in Exhibit B, or designate additional addresses, for purposes of this Section 9.4, by delivering to the other Party written notice of the new
address in the manner set forth above. 
 9.5    Delays or Omissions; Remedies. No delay or omission to exercise
any right, power or remedy accruing to any Party upon any breach or default of any other Party hereto under this Agreement, shall impair any such right, power or remedy of the aggrieved Party nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any 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. All remedies, either under this Agreement, or by law or otherwise afforded to the Parties shall be cumulative and not alternative. Each Party acknowledges and agrees that damages alone would not be an adequate remedy for a
breach of this Agreement and that each Party shall be entitled to seek the remedies of injunction, specific performance and other equitable relief for any threatened or actual breach of this Agreement. 

9.6    Interpretation; Titles and Subtitles. The Parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party
by virtue of the authorship of any of the provisions of this Agreement. The titles of the sections and sub-Sections of this Agreement are for convenience of reference only and are not to be considered in
construing this Agreement. Save as the context otherwise requires, the provisions of clause 1.2 (References) of the Series A Preferred Share Subscription Agreements shall apply, mutatis mutandis, to this Agreement. 

9.7    Counterparts. This Agreement may be executed in one or more counterparts and may be delivered by electronic
PDF or facsimile transmission, all of which shall be considered one and the same agreement and each of which shall be deemed an original. Facsimile and e-mailed copies of signatures shall be deemed to be
originals for purposes of the effectiveness of this Agreement. 

  
 16 

 9.8    Severability. If any provision in this Agreement shall be
found or be held to be invalid or unenforceable, then the meaning of said provision shall be construed, to the extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such provision, it shall be
severed from the remainder of this Agreement, which shall remain in full force and effect unless the severed provision is essential and material to the rights or benefits received by any Party. 

9.9    Adjustment for Share Splits, etc. Whenever in this Agreement there is a reference to a specific number or
percentage of the Preferred Shares, then, upon the occurrence of any subdivision, combination or share dividend of the Preferred Shares, the specific number of Shares so referenced in this Agreement shall automatically be proportionally adjusted to
reflect the effect on the outstanding Shares of such class or series of Shares by such subdivision, combination or share dividend. 

9.10    Most Favored Investor. In the event the Company hereafter grants any other Shareholders any rights,
privileges or protections more favorable than those granted to the Investors, each Investor shall, at its option, be entitled to the same rights, privileges or protections pari passu with such Shareholders. Notwithstanding the foregoing, the
aforesaid adjustment shall not apply to the rights with respect to corporate governance, liquidation, redemption or dividend distribution amongst different classes of Preferred Shares in connection with any other future bona fide equity
financing of the Company. 
 9.11    Pronouns. For all purposes of this Agreement, except as otherwise expressly
provided, (a) the defined terms shall have the meanings assigned to them in their definitions and include the plural as well as the singular, and pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms;
(b) 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 unless explicitly stated otherwise, and all references in this
Agreement to designated exhibits are to the exhibits attached to this Agreement unless explicitly stated otherwise; (c) the words “herein”, “hereof”, “hereunder”, “thereto” and “thereof”, and
other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision; (d) any reference in this Agreement to any “Party” or any other Person shall be construed so as to include its
successors in title, permitted assigns and permitted transferees; (e) any reference in this Agreement to any agreement or instrument is a reference to that agreement or instrument as amended or novated; and (f) any reference to “as-converted” shall assume conversion of all Preferred Shares into Ordinary Shares. 

9.12    Amendment. This Agreement may only be amended with the written consent of (i) the Company;
(ii) Preferred Majority; and (iii) the Founding Shareholder. Any amendment effected in accordance with this Section 9.12 shall be binding upon each Party and their respective successors; provided, that Company shall promptly
deliver written notice thereof to any Party that has not consented to such amendment. Notwithstanding the foregoing, (i) any provision that specifically and expressly gives a right to a Shareholder shall not be amended or waived without the
prior written consent of such Shareholder, and (ii) any provision that negatively affects the right of a particular Shareholder shall not be amended or waived without the prior written consent of such Shareholder. 

9.13    Waiver of Rights. To the extent that any Party seeks a waiver of rights from any other Party, (i) any
holder of Preferred Shares may waive any of its rights hereunder without obtaining the consent of any other Preferred Shareholder; (ii) any Ordinary Shareholder may waive any of its rights hereunder without obtaining the consent of any other
Ordinary Shareholder; and (iii) any Group Company may waive any of its rights hereunder without obtaining the consent of any other Group Company. Any Party may waive compliance by any other Party with any term or provision of this Agreement
that such other Party was or is obligated to comply with or perform for the benefit of such waiving Party. 

  
 17 

 9.14    Governing Law and Dispute Resolution. This Agreement and
the arbitration agreement contained herein are governed by, and shall be construed in accordance with, the laws of Hong Kong. Any dispute, controversy or claim arising in any way out of or in connection with this Agreement, or the breach,
termination or invalidity thereof (whether contractual, pre-contractual or non-contractual) shall be settled by binding arbitration administered by the Hong Kong
International Arbitration Centre (“HKIAC”) in accordance with the HKIAC Administered Arbitration Rules in force as at the date of this Agreement (“Rules”), which Rules are deemed to be incorporated by reference into
this Section 9.14 and as may be amended by the rest of this Section 9.14. The seat of the arbitration shall be Hong Kong. The arbitration tribunal shall consist of three arbitrators to be appointed in accordance with the Rules. The
language to be used in the arbitral proceedings shall be English and any arbitral award shall be given in English. Nothing in this Section 9.14 shall be construed as preventing any party from seeking conservatory or interim relief from any
court of competent jurisdiction. Any award shall be final and binding upon the parties from the day it is made. The parties undertake to carry out each and every arbitral award without delay. 

9.15    Governing Language. This Agreement is written in English. If this Agreement is translated into another
language, the English version shall prevail. 
 9.16    Shareholders Agreement to Prevail. If and to the extent
that there are inconsistencies between the provisions of this Agreement and those of the Restated M&A, the terms of this Agreement shall prevail in all respects as regards the Parties, and the Parties shall give full effect to and act in
accordance with the provisions of this Agreement over the provisions of the Restated M&A. The Parties agree to take all actions necessary or advisable, as promptly as practicable after the discovery of such inconsistency, to amend the Restated
M&A so as to eliminate such inconsistency. 
 9.17    No Partnership. Nothing in this Agreement and no action
taken by a Party under this Agreement shall be deemed to constitute a partnership between any of the Parties or constitute any Party as being the agent of any other Party for any purpose. 

9.18    Unlawful Fetters. Neither the Company nor any Group Company shall be bound by any provision of this
Agreement to the extent that it would constitute an unlawful fetter on any of its statutory powers, but such provision shall remain valid and binding as regards to any Shareholder to which it is expressed to apply. 

9.19    Further Assurance. Each Party agrees to take all such action or procure that all such action is taken as is
reasonable in order to implement the terms of this Agreement or any transaction, matter or thing contemplated by this Agreement. 

9.20    Termination of Rights. This Agreement and all rights and covenants contained herein, except for obligations
set forth in Sections 1, 8 and 9, shall terminate (i) on the closing of a Qualified IPO (upon which Section 7.6 shall continue to apply); (ii) at any time by the unanimous written agreement of all the Parties; (iii) automatically
without notice on the date that all of the Shares are owned by one Shareholder; and (iv) automatically without notice as to any Shareholder when it ceases to hold any Shares in the Company. 

[Signature Pages to Follow] 

  
 18 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 

 

			
	FOUNDING SHAREHOLDER: NETEASE, INC.
		
	By:	 	 /s/ Ding Lei

	Name:	 	Ding Lei
	Title:	 	Authorized Signatory

			
	 MANAGEMENT SHAREHOLDER:

	
	NET DEPTH HOLDINGS, INC.
		
	By:	 	 /s/ Zhou Feng

	Name:	 	Zhou Feng
	Title:	 	Authorized Signatory

			
	COMPANY: YOUDAO, INC.
		
	By:	 	 /s/ Ding Lei

	Name:	 	Ding Lei
	Title:	 	Authorized Signatory

			
	HK COMPANY: YOUDAO (HONG KONG) LIMITED
		
	By:	 	 /s/ Ding Lei

	Name:	 	Ding Lei
	Title:	 	Authorized Signatory

			
	YOUDAO IT: NETEASE YOUDAO INFORMATION TECHNOLOGY (BEIJING) CO., LTD.
		
	By:	 	 /s/ Ding Lei

	Name:	 	Ding Lei
	Title:	 	Authorized Signatory

			
	YOUDAO COMPUTER: BEIJING NETEASE YOUDAO COMPUTER SYSTEM CO., LTD.
		
	By:	 	 /s/ Ding Lei

	Name:	 	Ding Lei
	Title:	 	Authorized Signatory

			
	KAOSHEN: NETEASE KAOSHEN (BEIJING) TECHNOLOGY CO., LTD.
		
	By:	 	 /s/ Ding Lei

	Name:	 	Ding Lei
	Title:	 	Authorized Signatory

			
	LANGSHENG: NETEASE LANGSHENG (BEIJING) TECHNOLOGY DEVELOPMENT CO., LTD.
		
	By:	 	 /s/ Ding Lei

	Name:	 	Ding Lei
	Title:	 	Authorized Signatory

	
	INVESTOR: TH EDU CAPITAL FUND I LP
	By: TH EDU Capital, its general partner
	
	 /s/ Zhang Yu

	Name: Zhang Yu
	Title: Director

	
	INVESTOR: GOOD SPIRIT LIMITED (晨曜有限公司)
	
	 /s/ Rui Chen

	Name: Rui Chen
	Title: Managing Director

  

 SCHEDULE A 

List of Series A Investors 

1.    TH EDU CAPITAL FUND I LP, an exempted limited partnership registered under the laws of the Cayman Islands, whose registered
office is at the offices of International Corporation PO Box 472, 2nd Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman KY1-1106,
Cayman Islands (“TH”); and 
 2.    GOOD SPIRIT LIMITED (晨曜有限公司), a company incorporated in Hong Kong with limited liability, whose registered office is at 27/F, One Exchange Square, Central, Hong Kong
(“GSL”). 

  
 29 

 SCHEDULE B 

Definitions 
 Capitalised
terms used but not otherwise defined in this Agreement shall have the meanings given to them in the Series A Preferred Share Subscription Agreements. A “Section, “paragraph”, “Exhibit” or
“Schedule”, unless the context otherwise requires, is a reference to a section or paragraph of, or exhibit or schedule to, respectively, this Agreement. 

“Adherence Agreement” has the meaning ascribed to it in Section 5.4 of this Agreement. 

“Affiliate” means, in relation to a Person, any other Person which, directly or indirectly, controls, is controlled by or is
under the common control of the first mentioned Person, and without limiting the generality of the foregoing, (a) in the case of a natural Person, shall include, without limitation, such Person’s spouse, parents, children, siblings, mother-in-law and father-in-law and brothers and sisters-in-law, (b) in the case of any Investor, shall include (i) any Person who holds Shares as a nominee for such Investor, (ii) any direct shareholder of such Investor, (iii) any
entity or individual which has a direct and indirect interest in such Investor (including, if applicable, any general partner or limited partner) or any fund manager thereof; (iv) any Person that directly or indirectly controls, is controlled
by, under the common control with, or is managed by such Investor, its shareholder, the general partner or the fund manager of such Investor or its shareholder, (v) the relatives of any individual referred to in (ii), (iii) and (iv) above,
and (vi) any trust controlled by or held for the benefit of such individuals. For the purposes of this Agreement, “control” means, in relation to any person, having the power to direct the management or policies of such Person,
whether through the ownership of more than 50 per cent of the voting power of such Person, through the power to appoint a majority of the members of the board of directors or similar governing body of such Person, or through contractual
arrangements or otherwise, and references to “controlled”, “controlling” or “under the common control” shall be construed accordingly. 

“Agreement” has the meaning ascribed to it in the introductory paragraph of this Agreement. 

“Applicable Laws” means, with respect to a person, any laws, regulations, rules, measures, guidelines, treaties, judgments,
determination, orders or notices of any Government Authority or stock exchange that is applicable to such person. 

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

“Board Reserved Matter” has the meaning ascribed to it in Section 6.5. 

“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in Hong Kong or the PRC are
authorised or required by Applicable Laws to close. 
 “Company” has the meaning ascribed to it in the parties clause. 

“Company Information” has the meaning ascribed to it in Section 8.1. 

  
 30 

 “Company Series A Redemption Price” has the meaning ascribed to it in
Section 7.5(a) of this Agreement. 
 “Competitor” means any entity, the principal business of which is in competition
with the business of any Group Company. For avoidance of doubt, the scope of Competitors is restricted to those entities listed in Exhibit C and their respective Affiliates, and such list may be updated in good faith by the Company with prior
written notice to the Shareholders, provided that the Founding Shareholder may not amend such list more than once in any calendar year. 

“Control Documents” means the following agreements: 

(i)    business cooperation agreement
(业务合作协议) dated 1 July 2015 between Youdao IT and Youdao Computer in relation to, among other
things, the provision of technical services; 
 (ii)    loan agreement (借款协议) dated 26 September 2016 between Ding Lei
(丁磊) and Youdao IT; 

(iii)    shareholder voting rights trust agreement
(股东表决权委托协议) dated 26 September 2016 between Ding Lei, Youdao IT
and Youdao Computer; 
 (iv)    operating agreement
(业务运营协议) dated 26 September 2016 between Ding Lei, Youdao IT and Youdao Computer;

 (v)    exclusive purchase option agreement
(独家购买权合同) dated 26 September 2016 between Ding Lei, Youdao IT and Youdao Computer;

 (vi)    equity pledge agreement
(股权质押协议) dated 26 September 2016 between Ding Lei and Youdao IT; 

(vii)    loan agreement (借款协议) dated 23 February 2017 between Zhao Jian Kun (赵建昆)
and LangSheng; 
 (viii)    loan agreement
(借款协议) dated 23 February 2017 between Zhou Feng
(周枫) and LangSheng; 

(ix)    shareholder voting rights trust agreement
(股东表决权委托协议) dated 23 February 2017 between Zhao Jian Kun and
LangSheng; 
 (x)    shareholder voting rights trust agreement
(股东表决权委托协议) dated 23 February 2017 between Zhou Feng and
LangSheng; 
 (xi)    operating agreement
(业务运营协议) dated 23 February 2017 between Zhao Jian Kun, LangSheng and KaoShen; 

(xii)    operating agreement
(业务运营协议) dated 23 February 2017 between Zhou Feng, LangSheng and KaoShen; 

  
 31 

 (xiii)    exclusive purchase option agreement (独家购买权合同) dated 23 February 2017 between Zhao Jian Kun, LangSheng and KaoShen; 

(xiv)    exclusive purchase option agreement
(独家购买权合同) dated 23 February 2017 between Zhou Feng, LangSheng and KaoShen;

 (xv)    equity pledge agreement
(股权质押协议) dated 23 February 2017 between Zhao Jian Kun and LangSheng; 

(xvi)    equity pledge agreement
(股权质押协议) dated 23 February 2017 between Zhou Feng and LangSheng; 

(xvii)    loan agreement (借款协议) entered into between Zhou Feng and Youdao IT; 

(xviii)    shareholder voting rights trust agreement
(股东表决权委托协议) entered into between Zhou Feng, Youdao IT and Youdao
Computer; 
 (xix)    operating agreement
(业务运营协议) between Zhou Feng, Youdao IT and Youdao Computer; 

(xx)    exclusive purchase option agreement
(独家购买权合同) between Zhou Feng, Youdao IT and Youdao Computer; and 

(xxi)    equity pledge agreement
(股权质押协议) between Zhou Feng and Youdao IT. 

“Conversion Shares” means Ordinary Shares allotable and issuable (or allotted and issued) upon conversion of
the Preferred Shares. 
 “Director” means a member of the Board. 

“Disclosing Party” has the meaning ascribed to it in Section 8.3(a). 

“Dispose” means, in relation to any Share, to, sell, give, assign, transfer, hypothecate, pledge, encumber, grant a security
interest in or otherwise dispose of, or suffer to exist (whether by operation of law or otherwise) any Encumbrance on, either voluntarily or involuntarily, by operation of law or otherwise, or to enter into any contract with respect to sale, giving,
assignment, transfer, hypothecation, pledge, encumbrance, grant of a security interest in or otherwise disposal of, any equity securities in any Group Company or any right, title or interest therein or thereto (including any contractual or other
legal arrangement having the effect of transferring any or all of legal, economic or other rights or benefits of ownership), and the term “Disposal” shall have the corresponding meaning. 

“Encumbrance” means any security interest and any option, right to acquire, right of
pre-emption, assignment by way of security, trust arrangement for the purpose of providing security, retention arrangement or other security interest of any kind, and any agreement to create any of the above.

 “ESOP” has the meaning ascribed to it in Section 7.2. 

“Exchange Act” means the U.S. Securities and Exchange Act of 1934, as amended. 

  
 32 

 “First Participation Notice” has the meaning ascribed to it in
Section 4.1(d)(i). 
 “First Refusal Period” has the meaning ascribed to it in Section 4.2(c). 

“First Transfer Notice” has the meaning ascribed to it in Section 4.2(b). 

“Founding Shareholder” has the meaning ascribed to it in the parties clause. 

“Government Authorities” means any national, provincial, municipal or local government, administrative or regulatory body or
department, court, tribunal, arbitrator or any body that exercises the function of a regulator. 
 “Group Companies” means,
collectively, the Company and its Subsidiaries from time to time, including the Original Group Companies. 
 “GSL” has the
meaning ascribed to it in Schedule A to this Agreement. 
 “GSL Series A Preferred Share Subscription Agreements” means the
subscription agreement for Series A Preferred Shares by and among GSL, the Founding Shareholder, the Management Shareholder and the Company, dated as at April 12, 2018. 

“HK Company” has the meaning ascribed to it in the parties clause. 

“HKIAC” has the meaning ascribed to it in Section 9.14. 

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

“Intellectual Property” has the meaning ascribed to it in clause 1.1 (Definitions) of the Series A Preferred Share
Subscription Agreements. 
 “Investment Securities” means the Preferred Shares and the Conversion Shares. 

“Investors” means the Series A Investors. 

“KaoShen” has the meaning ascribed to it in the parties clause. 

“LangSheng” has the meaning ascribed to it in the parties clause. 

“Management Members” means the following persons: 
  

	 	(a)	 ZHOU Feng (周枫); 

 

	 	(b)	 WU Yinghui (吴迎晖); and

  

	 	(c)	 JIN Lei (金磊). 

“Limited Information” has the meaning ascribed to it in Section 8.3. 

“Major Group Companies” means the Company, the HK Company, Youdao IT and Youdao Computer. 

“Management Shareholder” has the meaning ascribed to it in the parties clause. 

  
 33 

 “New Securities” has the meaning ascribed to it in Section 4.1(c).

 “Non-Disclosing Parties” has the meaning ascribed to it in Section 8.3(a).

 “Non-Eligible Non-Selling Shareholder”
the meaning ascribed to it in Section 4.2(d). 
 “Non-Selling Shareholder” has
the meaning ascribed to it in Section 4.2(b). 
 “Ordinary Selling Shareholder” means either a Founding Shareholder or
a Management Shareholder. 
 “Ordinary Shareholders” means holders of Ordinary Share(s) from time to time. 

“Ordinary Shares” means ordinary shares, par value US$0.0001 per share, of the Company. 

“Original Group Company” means any of the Company, the HK Company, Youdao Computer, Youdao IT, KaoShen and LangSheng. 

“Participation Rights Holder” or “Participation Rights Holders” has the meaning ascribed to it in
Section 4.1(a). 
 “Party” or “Parties” has the meaning ascribed to it in the introductory paragraph
of this Agreement. 
 “Permitted Transferee” has the meaning ascribed to it in Section 7.1(b). 

“Person” means any individual, sole proprietorship, partnership, limited partnership, limited liability company, firm, joint
venture, estate, trust, unincorporated organisation, association, corporation, institution, public benefit corporation, entity or governmental or regulatory authority or other enterprise or entity of any kind or nature. 

“PRC” means the People’s Republic of China, excluding the Hong Kong, the Macau Special Administrative Region and the
Islands of Taiwan. 
 “Preferred Majority” means Preferred Shareholders holding more than fifty per cent. (50%) of the
Preferred Shares then issued and outstanding. 
 “Preferred Shares” means Series A Preferred Shares. 

“Preferred Shareholders” means holders of Preferred Share(s) from time to time. 

“Pro Rata Share” has the meaning ascribed to it in Section 4.1(b). 

“Pro Rata Co-Sale Share” has the meaning ascribed to it in Section 5.1(a). 

“Qualified IPO” means a public offering of Ordinary Shares (or securities representing Ordinary Shares) registered under the
Securities Act or in a jurisdiction and on an internationally recognised securities exchange or inter-dealer quotation system outside of the United States of America (including The Stock Exchange of Hong Kong Limited), in each case, either
(i) with an implied, pre-money valuation of US$2,250,000,000 or more; or (ii) approved by the Board as a Board Reserved Matter. 

  
 34 

 “Recipient” has the meaning ascribed to it in Section 8.3. 

“Redemption Date” has the meaning ascribed to it in Section 7.5(b). 

“Redemption Notice” has the meaning ascribed to it in Section 7.5(b). 

“Restated M&A” means the Second Amended and Restated Memorandum and Articles of Association of the Company adopted by the
Company and effective as at the date of this Agreement, as amended from time to time by Special Resolution (as defined in Restated M&A). 

“Right of Participation” has the meaning ascribed to it in Section 4.1(a). 

“Rules” has the meaning ascribed to it in Section 9.14. 

“Second Participation Notice” has the meaning ascribed to it in Section 4.1(d)(ii). 

“Second Participation Period” has the meaning ascribed to it in Section 4.1(d)(ii). 

“Second Refusal Period” has the meaning ascribed to it in Section 4.2(d). 

“Second Transfer Notice” has the meaning ascribed to it in Section 4.2(d). 

“Securities Act” means the U.S. Securities Act of 1933, as amended from time to time. 

“Selling Shareholder” has the meaning ascribed to it in Section 4.2(b). 

“Series A Investor” or “Series A Investors” has the meaning ascribed to it in the introductory paragraph of
this Agreement. 
 “Series A Issue Price” means US$10.2717 per Share. 

“Series A Original Issue Date” means April 17, 2018. 

“Series A Preferred Shares” means Series A preferred shares, par value US$0.0001 per share, of the Company, with rights and
privileges as set forth in the Transaction Documents. 
 “Series A Preferred Share Subscription Agreements” means the GSL
Series A Preferred Share Subscription Agreement and the TH Series A Preferred Share Subscription Agreement. 

“Shareholders” means, collectively, the Ordinary Shareholders and the Preferred Shareholders. 

“Shares” means, collectively, the Preferred Shares and the Ordinary Shares. 

“Subsidiary” means, with respect to the Company, any Affiliate of the Company controlled by the Company. 

“Target Period” has the meaning ascribed to it in Section 7.4. 

“Terms” has the meaning ascribed to it in Section 8.1. 

  
 35 

 “TH” has the meaning ascribed to it in Schedule A to this Agreement. 

“TH Completion Date” means April 17, 2018. 

“TH Director” has the meaning ascribed to it in Section 6.1. 

“TH Observer” has the meaning ascribed to it in Section 6.3. 

“TH Series A Preferred Share Subscription Agreements” means the subscription agreement for Series A Preferred Shares by and
among TH, the Founding Shareholder, the Management Shareholder and the Company, dated as at April 12, 2018. 
 “Third Party JV
Agreements” means the following agreements: 
 (i)    the shareholders agreement between Youdao IT and ZHAO
Jiankun (赵建坤) with respect to LangSheng, dated 7 December 2016; 

(ii)    the first supplemental agreement to the shareholders agreement between Youdao IT and ZHAO Jiankun (赵建坤) with respect to LangSheng, dated 7 December 2016; and 

(iii)    the second supplemental agreement to the shareholders agreement between Youdao IT and ZHAO Jiankun (赵建坤) with respect to LangSheng, dated 27 June 2017. 

“Trade Sale” means any of the following events: 

(i)    the acquisition of an equity, quasi-equity or other interest in any Group Company (whether by a sale of equity,
merger or consolidation) in which fifty per cent. (50%) or more of such Group Company’s voting power outstanding before such transaction is acquired or transferred; 

(ii)    the sale, transfer or other disposition of all or substantially all of the assets, or Intellectual Property of any
Group Company; or 
 (iii)    the exclusive licensing of all or substantially all of any Group Company’s
Intellectual Property. 
 “Transaction Documents” means this Agreement, the Series A Preferred Share Subscription
Agreements, the Restated M&A, the exhibits attached to any of the foregoing and any other document, certificate, and agreement delivered in connection with the transactions contemplated hereby and thereby. 

“Transfer Shares” has the meaning ascribed to it in Section 4.2(b). 

“US$” means the lawful currency of the United States of America. 

“U.S. GAAP” means the generally accepted accounting principles in the United States of America. 

“Youdao Computer” has the meaning ascribed to it in the parties clause. 

“Youdao IT” has the meaning ascribed to it in the parties clause. 

  
 36 

 EXHIBIT A 

ADHERENCE AGREEMENT 
 This
adherence agreement (“Adherence Agreement”) is executed and delivered by the undersigned (the “Transferee”) in the form of a deed pursuant to the terms of that certain Shareholders Agreement dated as of
April 17, 2018, (the “Agreement”) by and among YOUDAO, INC., a Cayman Islands exempted company (the “Company”), certain of its Shareholders and certain other parties named thereto, and in consideration of the
Shares acquired by the Transferee thereunder and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. Capitalised terms used but not defined herein shall have the respective meanings ascribed to such
terms in the Agreement. By the execution and delivery of this Adherence Agreement, the Transferee agrees as follows: 
  

	 	1.	 Acknowledgment. Transferee acknowledges that Transferee is acquiring [number] [Series A
Preferred/Ordinary] Shares of the Company (the “Shares”) from [name of transferor] (the “Transferor”), subject to the terms and conditions of the Agreement. 

 

	 	2.	 Agreement. Immediately upon transfer of the Shares, Transferee (i) agrees that the Shares acquired
by Transferee shall be bound by and subject to the terms of the Agreement applicable to the Transferor, and (ii) undertakes to each party to the Agreement that it shall, with effect from the time of completion of the transfer of the Shares to
it, assume, perform and comply with each of the obligations and terms under the Agreement as if Transferee were originally [a Founding Shareholder/Management Shareholder thereunder (if transferor is a Founding Shareholder/Management
Shareholder)]/[an Investor (if transferor is an Investor)]. 

  

	 	3.	 Notice. Any notice required or permitted by the Agreement shall be given to Transferee at the address
listed beside Transferee’s signature below. 

  

	 	4.	 Governing Law. This Adherence Agreement shall be governed by, and shall be construed in accordance with,
the laws of Hong Kong. 

  

	 	5.	 General Provisions. Save as expressly provided herein, the provisions of Section 9
(Miscellaneous) of the Agreement shall apply mutatis mutandis to this Adherence Agreement as if set out in full in this Adherence Agreement. 

EXECUTED AND DELIVERED AS A DEED on this      day of             ,
             by: 
  

			
	TRANSFEREE:
		
	By:	 	
	Name:	 	
	Title:	 	
		
	Attn:	 	
	Address:	 	
	Tel:	 	
	Fax:	 	
	Email:	 	

  
 37 

 EXHIBIT B 

NOTICES 
 For the purpose of the notice
provisions contained in this Agreement, the following are the initial addresses of each Party: 
  

			
	 Name of Parties
	  	 Address for Notices

		
	Founding Shareholder / Group Companies / Management Shareholder	  	 Address: 1/F, Tower C, Building No. 7, West Zone Zhongguancun Software Park (Phase II) No. 10 Xibeiwang East Road, Haidian
District
 Email: ***************
 Attn: Zhou Feng (周枫)
  
 with a copy
to:
  
 Building No. 7, West Zone, Zhongguancun Software Park (Phase II),
No. 10 Xibeiwang East Road, Haidian District, Beijing 100193, People’s Republic of China Attn: Wu Qiong (吴穹), NetEase Legal

		
	Investors	  	
	TH EDU CAPITAL FUND I LP	  	 Address: c/o offices of International Corporation PO Box 472, 2nd Floor, Harbour Place,
103 South Church Street, George Town, Grand Cayman KY1-1106,
 Cayman Islands

 
 with a copy to:

 
 9F, TusPark Kejian Building, PRC, Beijing, 100084 (海淀区中关村东路1号院, 科建大厦 9 层, 北京, 中国 100084)

Facsimile number: ***************
 Email: ***************

Attn: Jenny Zhang (张妤)

		
	GOOD SPIRIT LIMITED (晨曜有限公司)	  	Address: 北京市海淀区中关村科学院南路 2
号融科 资讯中心 B 座 16 层君联资本
		  	Email: ***************
		  	Attn: Levi Li (李振)

  
 38 

 EXHIBIT C 

LIST OF COMPETITORS 

[**Redacted**] 

  
 39

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