Common use of Performance Target Clause in Contracts

Performance Target. (i) Each of the Founder Parties hereby undertakes to the Series C Investors and the Series B Investors that the audited after tax operation net income (which shall be referred hereunder as the “Net Income”; for the avoidance of doubt, the after tax operation net income shall equal to after tax operation net profits plus any tax refunds or tax return received from the relevant Governmental Authority, plus any costs, expenses and share based compensation incurred by the Company in association with the issuance of any employee share option, share award or other equity incentives pursuant to the ESOP) of the Group Company for the fiscal year of 2017 and 2018 (collectively, the “Warranty Period”) shall equal to at least RMB500,000,000 and RMB700,000,000, respectively (such target Net Income set for the applicable fiscal year shall be referred hereunder as the “Net Income Target”). (ii) Subject to Section 6.5(iv) below, during the Warranty Period, if the Company fails to achieve any Net Income Target for a particular fiscal year, the Founder Parties shall reimburse the Company, in the form of cash, an amount equal to the difference between the actual Net Income realized during such fiscal year and the Net Income Target for such fiscal year, within 10 days following the issuance of the audited annual financial statements of the Group Companies. (iii) The Net Income realized by the Group Companies for each fiscal year within the Warranty Period shall be determined by a qualified accounting firm appointed by the Company, and the determination of which shall be free of material qualifications.