Document:

Exhibit

 Exhibit  10.2
Contract Reference Number:2933-152-2016-0009

Equity Transfer Agreement With Respect to Panyu Gemstar Project

Execution Date: September 26, 2016

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Equity Transfer Agreement

Party A:    CG Development Limited
Authorized Representative: David Chong Cheung Hyen
		
	Address: 
	902-908, 9/F, One Harbourfront, 18 Tak Fung Street, Hung Hom, Kowloon, Hong Kong

		
	Party B:
	Guangzhou Junhao Investment Co., Ltd.

Legal Representative: Cen Zhaoxiong
		
	Address: 
	Room S, 36/F, No. 410-412, Dongfeng Road, Yuexiu District, Guangzhou

Party C:    Universal Electronics Inc.
Authorized Representative: Bryan M. Hackworth
Address:     201E, Sandpoint Avenue, 8th Floor, Santa Ana, CA 92707, USA

Party D:    Gemstar Technology (China) Co., Ltd.
Legal Representative: Chen Dezhong
		
	Address:
	45 Section II Shiguang Road, Zhongcun Town, Panyu District, Guangzhou

Party E:       Times Property Holdings Limited
Legal Representative: Cen Zhaoxiong
Address:    Suites 4706-07, 47/F, Two Exchange Square, 8 Connaught Place, Central, Hong Kong

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Whereas:

		
	1.
	Party D is a limited liability company established and validly existing in accordance with the laws of People’s Republic of China (wholly-owned by a Taiwan, Hong Kong or Macau company) with registration number 440126400000167 located at 45 Section II Shiguang Road, Zhongcun Town, Panyu District, Guangzhou.  Its legal representative is Chen Dezhong, its total investment is US$13.35 million, and its registered capital is US$8 million which has been fully paid up. Party D is a wholly owned subsidiary of Party A, and Party A holds 100% of the equity of Party D.

		
	2.
	Party D acquired the land use right of multiple parcels of land through several transactions, which together constitute the piece of land located at 45 Section II Shiguang Road, Zhongcun Town, Panyu District, Guangzhou with a total area of 65,980.80 square meters (“Land”).  Both the land grant premium and deed tax have been fully paid.  Party D has obtained the Land Use Right Title Certificates for the Land (Numbers: Yue Fang Di Zheng Zi Di C6542932 and G03-000628, see Annex 1).  The usage of the Land is Class II industrial land.  

		
	3.
	As of June 30, 2016, based on the unaudited management accounts, the total assets value of Party D is RMB520,687,018, net fixed assets value is RMB115,365,006.

		
	4.
	Based on the unaudited management accounts, the net book value of the Land,  Buildings and Leasehold Improvements thereon is RMB35,190,825 (see Annex 2).

		
	5.
	Current status of the Land: There are properties on the Land, which include dormitory #3 with an area of 6,482.10 square meters under Real Estate Title Certificate #C6542926, factory building (i.e., Phrase I factory building including canteen) with an area of 28,345.70 square meters under Real Estate Title Certificate #C6542932, dormitory #2 with an area of 2,861.60 square meters under Real Estate Title Certificate #C6542927, dormitory #1 with an area of 6,400.50 square meters under Real Estate Title Certificate #C6542928, and office building and Phrase II factory building with an area of 18,955.70 square meters under Real Estate Title Certificate #C6542929 (“Buildings”).  The aggregate area of the Buildings covered by the Real Estate Title Certificates is 63,045.60 square meters (see Annex 3).

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Based on the above and after full consultation with each other, the Parties have decided that Party A shall transfer to Party B 100% of the equity interest it holds in Party D.  To facilitate the transaction, the Parties agree to enter into this Agreement. 

		
	1.
	Definitions and Paraphrases

		
	1.1
	Definitions

Unless otherwise indicated in this Agreement, the following terms shall have the meanings as set forth below:

“Land” shall refer to the multiple parcels of land which together constitute the piece of land located at 45 Section II Shiguang Road, Zhongcun Town, Panyu District, Guangzhou with a total area of 65,980.80 square meters.

“Buildings” shall refer to the buildings built by Party D on the Land including dormitory #3 with an area of 6,482.10 square meters under Real Estate Title Certificate #C6542926, factory building (i.e., Phrase I factory building including canteen) with an area of 28,345.70 square meters under Real Estate Title Certificate #C6542932, dormitory #2 with an area of 2,861.60 square meters under Real Estate Title Certificate #C6542927, dormitory #1 with an area of 6,400.50 square meters under Real Estate Title Certificate #C6542928, and office building and Phrase II factory building with an area of 18,955.70 square meters under Real Estate Title Certificate #C6542929.  

“Closing Date” shall refer to the date on which Party B has been recorded as the shareholder of Party D and all corporate documents of Party D and the Land have been delivered to Party B for Party B’s safe keeping.

“Third Party” shall refer to any entity or individual which is not Party A, Party B, Party C, Party D or Party E.

“Authority in Charge of Commerce” shall refer to the authority in charge of commerce which originally approved the establishment of Party D.

“Approval” shall refer to any license, permit, approval, waiver, consent, authorization, registration or filing issued by or recorded with any government agency.

"Applicable law" shall refer to any binding, effective and applicable treaties, laws, administrative regulations, 

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local laws, regulations, decisions, orders, judicial interpretations, judgments, decisions, arbitration awards or other normative documents to which a specified person or property is subject. 

"Business Day" shall mean a calendar day except Saturday, Sunday and all Chinese statutory holidays.

“RMB” shall refer to Renminbi Yuan.

1.2In this Agreement, reference to a contract or an agreement includes its annexures and amendments; reference to provisions and annexures shall only refer to the provisions and annexures of this Agreement; and references to titles are only references to titles of this Agreement which shall not be used to construe this Agreement.

1.3In this Agreement, unless otherwise indicated in this Agreement, "above", "below", "within" and "outside" or similar words are included in this number, "greater than," "less than," "more than," " insufficient "or similar words exclude this number, unless they are expressly stated in this Agreement.

		
	2.
	Conditions Precedent

		
	2.1
	Within 24 months of the date on which this Agreement is executed, Party A shall be responsible for the completion of the following matters:

2.1.1By the end of the 24 months period, Party D shall stop all day-to-day business activities except those which have been agreed upon by Party A and Party B and those which are necessary for the valid exsistence of Party D;
2.1.2Except the Land, the Buildings thereon, the cash reserve in Party D’s bank account(s), any regularly incurring tax liabilities and payment thereof, and any other items which have been specifically disclosed to Party B in writing, all other assets and debts have been separated and peeled off.  If the separation and peeling off incur any costs and expenses, such costs and expenses shall be borne by Party A;
2.1.3Release Party D from all guarantees it issued;

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2.1.4There are no mortgages on the Land and the Buildings thereon;
All debts in the name of Party D have been cleared up (exclusive of the items which have been specifically disclosed to Party B in writing by Party A.  In addition, with respect to the tax liabilities which are payable by Party D but not yet due, such tax liabilities shall be paid when due by the cash reserve in Party D’s bank account);
		
	2.1.5
	There are no judicial compulsory measures imposed on the Land and the Buildings thereon;

		
	2.1.6
	All lease agreements with respect to the Land and the Buildings thereon have been terminated;

		
	2.1.7
	The Land and the Buildings thereon remain “as is”;

		
	2.1.8
	All the water bills, electric bills and gas bills have been settled.  Water and electricity supplies remain as-is.

If Party A completes all of the aforementioned matters ahead of time (within 24 months after the signing of this Agreement), Party A shall notify Party B in writing at least two (2) months in advance in order for Party B to complete its due diligence review accordingly.

		
	2.2
	Within thirty (30) days of Party A’s completion of the matters as set forth in Clause 2.1, Party B shall be responsible for appointing professional agencies, at Party B’s sole cost to conduct full due diligence review on Party D and promptly revert to Party A the result of the due diligence review. With respect to the written materials and data provided by Party A at the request of Party B according to the document list provided by Party B, Party A warrants that, to its actual knowledge, all such written materials and data are all relevant information possessed and known by Party A, are truthful, accurate, complete, and valid with no materially missing information, misleading statements, or intentional omissions.

		
	2.3
	Upon completion of due diligence review on Party D by the professional agencies appointed by Party B, the results are in substantial and material conformance (namely without prejudice to Party B’s rights and interests in the Land and the Buildings) to the following: 

		
	2.3.1
	Party A shall warrant, to Party A’s actual knowledge, that all the statements, representations, and warranties set forth in Clause 5 concerning Party A itself and Party D are true, accurate and complete;

		
	2.3.2
	Party A has resolved as requested by Party B the incoherencies and incompletions found between the results of the due diligence review and the statements, representations, and 

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warranties made by Party A and Party D in Clause 5 of this Agreement. If there are disputes as to the satisfactoriness of the resolution above, Party A and Party B shall have friendly negotiation or apply to arbitration pursuant to Clause 8.2 of this Agreement ;
		
	2.3.3
	Party A shall ensure that, to Party A’s actual knowledge, there is no defect in the legitimacy and transferability with respect to the equity of Party D held by Party A, which may lead to a failure of transferring the equity of Party D. 

		
	2.3.4
	Party A shall ensure that there is no defect in the land use right of the Land owned by Party D which may lead to failure of the equity transfer purpose under this Agreement. 

		
	2.4
	Party A and Party B agree and confirm once this Agreement is duly executed by the Parties, the equity transfer contemplated under this Agreement is a deal of must-buy-must-sell.  Both Party A and Party B must perform this Agreement in due course. 

		
	3.
	Purpose, Subject, Closing Date and Transfer Price

		
	3.1
	Party B agrees to buy and Party A agrees to sell 100% of the equity of Party D in accordance with the terms of this Agreement upon the results of due diligence review indicating that all conditions precedent set forth in Clause 2.1 have been met and that the results of due diligence review conform to Clause 2.3 as well. 

		
	3.2
	Purpose of transaction: Facilitate Party B to obtain the corresponding Land and the Buildings thereon through acquiring from Party A 100% equity that Party A holds in Party D. 

		
	3.3
	Subject of transaction: 100% of the equity of Party D held by Party A.

		
	3.4
	Closing Date and debts:  The Closing Date is a point of time where Party A and Party B divide their rights and obligations in Party D respectively.  Prior to the Closing Date, unless otherwise indicated in this Agreement, Party D’s rights and interests derived from the Land shall be enjoyed and debts incurred by Party D shall be borne by Party A.  After the Closing Date, all rights, interests and assets of Party D shall belong to Party B and all debts incurred by Party D shall be borne by Party B.

		
	3.5
	 Transfer Price: The transfer price for 100% of the equity of Party D is RMB320 million.

		
	3.6
	Payment schedule for the transfer price of RMB320 million is set forth in Clause 4.  Party A undertakes that it shall provide Party B a receipt of payment upon receipt of RMB320 million paid by Party B in accordance with Clause 4.6. 

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	4.
	Transaction Arrangement and Transfer Price Payment Schedule

		
	4.1
	Within ten (10) Business Days after the signing of this Agreement, Party A and Party B shall open an interest-bearing escrow account (“Escrow Account”) in the name of Party B with the bank designated by Party B (“Bank”), and shall each appoint one signatory of the Escrow Account. Party B shall deposit into the Escrow Account RMB32 million (RMB32,000,000) (equivalent to 10% of the transfer price) (“Deposit”).  The Deposit shall be monitored by the Bank and be converted automatically into a part of the transfer price according to Clause 4.6 of this Agreement.  All interests earned from the Escrow Account will belong to Party A. 

		
	4.2
	As described in Clause 2.2 of this Agreement, on the date on which the due diligence review is completed, the results of which indicate that all the conditions precedent set forth in Clause 2.1 have been fulfilled and the due diligence review results conform to Clause 2.3, Party A shall, with a list of Party D’s materials delivered, deliver the following materials to a person jointly appointed by both Parties (a safe will be opened with the Bank with Party A keeping the pin code and Party B keeping the key).  

		
	4.2.1
	Official seal, financial seal, contract seal and other seals, legal representative seal, seal impression of bank account opening, loan cards, unused checks and seal engraving permits of Party D, etc.;

		
	4.2.2
	Business license of Party D (on the date of the completion of the transfer of the equity of Party D and the obtaining of the new business license, both parties agree to place the new business license in the bank’s safe for co-management), tax license, and other licenses issued by the government to Party D;

		
	4.2.3
	State-owned land use right certificates of the Land, and all other materials and legal documents produced in the process of governmental approval procedures.

		
	4.2.4
	Contractual documents that are performed by Party D after the transfer of the equity.

		
	4.2.5
	Any other items that belong to Party D such as documents, certificates, financial books and tax invoices, etc.

		
	4.3
	Within three (3) Business Days of the date on which the due diligence review as specified in Clause 2.2 is completed, the results of the due diligence review indicate that the conditions precedent as stipulated in Clause 2.1 are satisfied and conform to the results as stated in Clause 2.3, Party B shall deposit RMB128 million (RMB128,000,000) into the Escrow Account (equivalent to 40% of the transfer price).  In the meantime, both Parties shall prepare and execute all the documents and forms which are necessary for the completion of equity transfer formalities required by the Authority in Charge of Commerce (including, inter alia, a standard Equity Transfer Contract provided by the Authority in Charge of Commerce signed by the Parties for the purpose of obtaining approval from the Authority in Charge of Commerce) 

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(“Standard Equity Transfer Contract”), and documents and forms which are necessary for the completion of registration of equity transfer with company registration authority (including, inter alia, documents transferring 100% equity of Party D from Party A to Party B, appointing letters for legal representative, directors and supervisor appointed by Party B, and etc.).  The above documents and forms shall be kept by Party B and Party B shall be responsible for the completion of formalities with Authority in Charge of Commerce and with company registration authority.  Party B shall complete the approval process with Authority in Charge of Commerce and company registration process with company registration authority within 3 months from the completion its due diligence review.  If Party B needs Party A to sign and submit additional documents, Party A shall sign and submit such documents within three (3) days of the receipt of Party B’s written request.  If there is any seizure or pledge, or other restriction on the equity of Party D, leading to not being able to complete the equity transfer registration, Party A shall resolve the problem within five (5) days of the receipt of Party B’s written request or such reasonable amount of time needed (exclusive of the event that the delay is caused by government authority).
		
	4.4
	On the date on which Party B has completed the company registration formalities and obtained a Notice on Change of Company Registration (if impossible on the same day, then the next day), Party B shall deposit RMB160 million (RMB160,000,000) into the Escrow Account (equivalent to 50% of the transfer price).

		
	4.5
	On the date on which Party B has performed its obligations as stipulated in Clause 4.4, 

Party A shall:
		
	4.5.1
	Release the co-management of the materials as stated in Clause 4.2 and deliver the materials to Party B;

		
	4.5.2
	Deliver the Land and the Buildings thereon to Party B as follows:

Conditions for delivery of the Land and the Buildings thereon: The Buildings (including factory buildings, dormitories and office buildings) shall be delivered “as is”.  Except for the attachments which are identified by both Parties to be kept on the spot, all the other attachments shall be removed, and there should be no mortgages imposed on the Land, no judicial compulsory measures, no unsettled land issues or other disputes.  A fence shall be built along the red line of the Land.  The Buildings on the Land shall remain unchanged.
Upon completion of the above by Party A, Party B shall issue to Party A a formal written certificate acknowledging and confirming the completion of handing over of the Land and the Buildings from Party A to Party B and the Closing Date.

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Party A and Party B shall:
		
	4.5.3
	Verify and confirm, as of the Closing Date, the amount of cash reserve in all Party D’s bank accounts (including the statutory surplus accumulation fund and reserve fund which are legally required to maintain Party D’s legal status,  fund for any regularly incurring Tax Liabilities and payment thereof), the amount which shall be paid to Party A in accordance with this Agreement (e.g., the interest accrued in the Escrow Account which should be accrued to the date of remittance of the equity transfer price as stipulated in Clause 4.6) (“Party A Receivable”), and the amount of Party D’s regularly incurring Tax Liabilities incurred or accrued prior to the Closing Date which shall be borne and paid by Party A in accordance with this Agreement and other amount which shall be paid by Party A in accordance with this Agreement (“Party A Payable”). The income tax generated from the payment of Party A Receivable shall be borne and paid by Party A and Party B shall be responsible for the withholding of such income tax.

“Tax Liabilities” shall mean all forms of taxes, fees, and related charges.
		
	4.6
	Within ten (10) Business Days of the issuance of the new business license of Party D, Party B and Party D shall immediately apply respectively to the foreign exchange administration authorities in their locality (“Local SAFEs”) to obtain the required approvals for the remittance of the equity transfer price abroad. Upon completion of the approvals from the Local SAFEs, Party A and Party B shall instruct the Bank to immediately pay the transfer price of RMB320 million (RMB320,000,000) (including the Deposit, equivalent to 100% of the transfer price) in the Escrow Account to a bank account designated by Party A after adding Party A Receivable and less Party A Payable,  and deducting enterprise income tax withheld and paid by Party B on behalf of Party A and obtaining tax payment certificate.  Party A and Party B shall closely communicate and cooperate with the Bank in coordinating and handling the examination and approval formalities for the legitimate remittance of the transfer price to overseas to ensure that all the installments of the transfer price be remitted in full to an overseas bank account designated by Party A in accordance with the schedule stipulated under this Agreement.

		
	4.7
	Upon the execution of this Agreement, Party A and Party B agree that Party B shall be responsible for, at Party B’s sole cost, applying to governmental authorities for the transformation of the Land in accordance with relevant laws and regulations, and Party B shall bear all the costs incurred in the application for the transformation.  Party A shall cooperate with Party B and provide Party B with reasonable assistance, including but not limited to, the provision of all the necessary documents in the transformation application, affixing of chops, and signing of documents by the legal representative, etc.

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	5.
	Representations and Warranties

		
	5.1
	For the purposes of this Agreement, Party A represents and warrants to Party B that to Party A’s actual knowledge and except otherwise disclosed by Party A in writing:

		
	5.1.1
	All the documents, materials and information in connection with this Agreement provided by Party A to Party B are true, and there are no false records, misleading statements or significant omissions, and they are materially accurate, complete, and effective.

		
	5.1.2
	Party A has, to its actual knowledge, truly and completely disclosed to Party B any information which may have substantially adverse effect on Party D and its relevant assets and business before the execution of this Agreement; Party A warrants that after the execution of this Agreement it will not take any action which may have substantially adverse effect on Party D and its relevant assets and business.  If any situation or information which may have substantially adverse effect on Party D and its relevant assets and business due to a reason prior to the Closing Date is found after the execution of this Agreement and before this transaction is complete,  Party A shall remove the adverse effect promptly .  If Party B suffers any actual damages so caused, Party A shall be responsible for the actual damages.  

“Substantially adverse effect” means (i) the substantially adverse effect on the validity, effectiveness, and enforceability of this Agreement. or (ii) the substantially adverse effect on Party D’s operation, assets, business or financial condition.
		
	5.1.3
	All the contents in the “whereas” clauses and Party A’s representations and warranties are true, otherwise,  Party A shall be fully responsible for all the losses so caused to Party B. 

		
	5.1.4
	Besides those disclosed by Party A under this Agreement, there are no pledges or any third party right on the equity of Party D held by Party A, nor there are any seal-ups, freezing, or preservation of the equity of Party D by any third party; Party D has not signed any guarantee agreements, contracts or commitments.  All the interest, assets of Party D and the Land are free from any mortgages, pledges, guarantees or any other security interest and there are no such restrictions which have not been disclosed to Party B.  There are not any matters which may cause any third party to claim on Party D’s interest and assets.

		
	5.1.5
	Litigation and/or Arbitration:  There are not any lawsuits, judgments or other proceedings against Party D before any courts, arbitral tribunals or administrative organizations which may affect the effectiveness and enforceability of this Agreement and which have not been disclosed to Party B; Party A and Party D warrant that to their knowledge there are not any disputes or illegal acts which may cause or lead to the above lawsuits, arbitrations or administrative proceedings.

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	5.1.6
	Besides those debts disclosed under this Agreement, all the relevant costs and taxes payable in relation to the Land prior to the Closing Date including land grant premium, deed tax, land use tax, land requisition and demolition compensation, etc, have been paid or will have been paid by fund from Party A Receivable, and their ownership and scope are clear, and there are not any ownership disputes. If there are any debt or due but unpaid tax liabilities which arise from matters of Party D prior to the Closing Date, Party A shall be responsible for the payment of such debt or due but unpaid tax liabilities. 

		
	5.1.7
	Except for those matters expressly agreed otherwise by Party A and Party B, Party A shall compensate Party B in full for any losses or liabilities incurred by Party D due to reasons which happened before the Closing Date including but not limited to taxes, all employees’ severance payments, environmental violations, and accounting, etc. 

		
	5.1.8
	Party A has timely, fully, and legally completed its capital contribution to Party D in accordance with Party D’s Articles of Association, and there have not been any withdrawal of capital or misappropriation of assets of Party D since the date of completion of capital contribution.

		
	5.1.9
	Besides those disclosed under this Agreement, until the date of execution of this Agreement Party A has not entered into any contracts, agreements, commitments or arrangements with any third party which may have conflict with this Agreement or may cause this Agreement partially or wholly unenforceable;  From the date of execution of this Agreement, Party A shall not enter into any contracts, agreements, commitments or arrangements with any third party which may have conflict with this Agreement or may cause this Agreement partially or wholly unenforceable.

		
	5.1.10
	Party A has full civil right capacity and disposing capacity to sign this Agreement, and is entitled to all the rights, powers and authorizations to enjoy any rights under this Agreement and perform any obligations under this Agreement.  Party A’s performance of this Agreement is not in violation of any applicable laws, regulations, rules or orders, nor is it in violation of Party A’s current effective Articles of Association, or any contracts, agreements or other documents in which Party D is an object or a party and which are binding on Party D’s assets, and all the necessary third party’s written consents have been obtained.

		
	5.1.11
	Party A shall actively sign and prepare all the necessary documents in relation to this transaction, and at the same time assist Party B in completing the change of registration formalities in this transaction.

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	5.1.12
	On the date of execution of this Agreement, Party A shall provide to Party B an un-audited financial statement as of June 30, 2016 affixed with the chop of Party A, a balanced sheet and tax payment certificate as of December 30, 2015, and an audited report, land value added tax settlement certificate (if any), and enterprise income tax final settlement statement of 2015.

		
	5.2
	For the purposes of this Agreement, Party B represents and warrants to Party A:

		
	5.2.1
	Party B has sufficient and disposable fund at any time to conduct the transaction under this Agreement.  As long as all the matters under Clause 2.1 of this Agreement have been complied with, Party B shall pay the transfer price in full according to the schedule under this Agreement, and make sure that the transfer price be legally remitted to overseas.

		
	5.2.2
	Party B has full civil right capacity and disposing capacity to sign this Agreement, and is entitled to all the rights, powers and authorizations to enjoy any rights under this Agreement and perform any obligations under this Agreement.  Party B’s performance of this Agreement is not in violation of any applicable laws, regulations, rules or orders, nor is it in violation of Party B’s current effective Articles of Association.

		
	5.2.3
	Party B shall actively sign and prepare all the necessary documents in relation to this transaction, and at the same time shall be responsible for completing the change of registration formalities in this transaction before the relevant registration authority.

		
	5.3
	Party A’s representations and warranties and Party B’s representations and warranties under this Clause shall become effective from the date of this Agreement until the end of two years from the Closing Date.

		
	6.
	Breach of Contract

		
	6.1
	Except as otherwise agreed, if a Party fails to perform its duties and obligations under this Agreement or any of its representations and warranties is untrue or misleading, then such Party shall compensate the other Party in full for any actual losses suffered thereby. 

		
	6.2
	Unless it is attributable to the delay caused by government supervision authority which is unforeseen or uncontrollable by Party A, if Party A fails to materially perform its obligations set forth in Clause 2.1, Party A shall pay to Party B a liquidated damage of 0.05% of the amount in the Escrow Account for each day in delay.  In the meantime, Party A shall promptly perform its obligations as agreed and this Agreement shall be performed by the Parties.

		
	6.3
	After the due diligence review is completed as specified under Clause 2.2 of this Agreement, if the results show that any of the conditions precedent set forth in Clause 2.1 has not been materially satisfied, then Party B shall have the right to request Party A to ratify the situation within a specific period of time and 

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ensure that all the conditions precedent are satisfactory.
		
	6.4
	Since the equity transfer under this Agreement is a deal of must-buy-must-sell, upon execution of this Agreement, Party A and Party B shall not for any reason unilaterally terminate this Agreement unless such Party’s obligation to perform the Agreement has been duly excused (due to reason such as the other Party has indicated that it will not perform the Agreement according to its terms).  If any Party shall unilaterally terminate this Agreement without just cause, the Party in breach shall pay to the other Party a liquidated damage of RMB30 million.  If the liquidated damage is not sufficient to compensate all the losses suffered by the other Party, the Party in breach shall be liable for such losses.  Notwithstanding the above, the other Party shall have the right to initiate an arbitration in accordance with Clause 8.2 to demand for a specific performance of this Agreement.

		
	6.5
	If Party B fails to make the transfer price payment to Party A as stipulated in this Agreement, Party B shall pay to Party A a liquidated damage of 0.05% of the amount which is due and payable but not paid by Party B for each day in delay. 

		
	6.6
	If Party A fails to perform duties specified in Clause 4 of this Agreement on time, Party A shall pay to Party B a liquidated damage of 0.05% of the amount in the Escrow Account for each day in delay.  Besides paying late payment penalty in accordance with Clause 6.5, if Party B fails to perform any other duties as set forth in Clause 4 of this Agreement on time, Party B shall pay to Party A a liquidated damage of 0.05% of the amount in the Escrow Account for each day in delay.

		
	6.7
	If Party A’s representations and warranties under Clause 5 of this Agreement are untrue, inaccurate, incomplete or Party A does not perform its obligations under this Agreement, which cause losses and debts to Party D or Party B, Party B shall submit a claim for compensation in writing and list out the items, basis and amount for the compensation (“Written Claim for Compensation”).  Within 15 days of the date of receipt of the Written Claim for Compensation, Party A shall investigate and verify the matters as described in the Written Claim for Compensation.  If the investigation and verification confirm that the matters as described in the Written Claim for Compensation are true, Party A shall compensate Party B in full.  Party B shall have the right to deduct the amount which equals to the compensation from the unpaid transfer price.  If other debts may not be paid in full due to the deduction, Party A shall be responsible for clearing up the unpaid debts.  If there are disputes as to the above compensation, Party A and Party B shall have friendly negotiations or apply to arbitration pursuant to Clause 8.2 of this Agreement.

		
	6.8
	After the execution of this Agreement, Party A shall not negotiate with any third party regarding the transfer of Party D’s equity or the Land, or sign, with any third party, any contracts, agreements, commitments or arrangement which are in conflict with this Agreement or make this Agreement partially 

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or wholly unenforceable.  Otherwise, Party B shall have the right to terminate this Agreement, and Party A shall pay Party B RMB30 million as liquidated damages, release the Escrow Account, and return the fund in the Escrow Account to Party B in full, and shall be responsible for any actual damages incurred by Party B thereof.
		
	6.9
	If either Party A or Party B unilaterally terminates this Agreement in breach of this Agreement or terminates this Agreement in accordance with Clause 6 of this Agreement, in addition to being responsible for any breach under Clause 6 as a breaching Party, Party A shall also release the Escrow Account and the fund in the Escrow Account shall be returned to Party B after deducting the amount for breach under this Clause.  Otherwise, Party A shall pay Party B a liquidated damage of 0.05% of the amount in the Escrow Account for each day in delay.

		
	7.
	Guarantee

		
	7.1 
	With respect to the transaction contemplated under this Agreement, Party C voluntarily agrees to be Party A’s guarantor.  Party C agrees unconditionally and irrevocably, to be jointly and severally, without limitation, liable for all the agreements made by Party A to Party B with respect to the performance of this Agreement.

		
	7.2
	With respect to the transaction contemplated under this Agreement, Party E voluntarily agrees to be Party B’s guarantor.  Party E agrees unconditionally and irrevocably, to be jointly and severally, without limitation, liable for all the agreements made by Party B to Party A with respect to the performance of this Agreement.

		
	8.
	Applicable Law and Settlement of Disputes

		
	8.1
	The conclusion, implementation, validity and interpretation of and disputes arising out of this Agreement shall be governed by the laws of People’s Republic of China.

		
	8.2
	The Parties agree that all the disputes and claims arising out of or relating to this Agreement shall first be resolved by friendly consultations.  If no agreement can be reached, either Party may submit the dispute for arbitration before South China International Economic and Trade Arbitration Commission (also called Shenzhen Court of International Arbitration) in accordance with its procedural rules.  The arbitral award shall be final and binding on the Parties.

		
	9.
	Miscellaneous

		
	9.1
	Taxes and fees in relation to the transaction contemplated under this Agreement shall be borne by the party in accordance with the relevant laws and regulations or agreements among the Parties.  If there is no such laws, regulations or agreements, the taxes and fees shall be borne by Party A and Party B in equal share.

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	9.2
	After the execution of this Agreement, Party B shall be entitled to designate a Third Party to assume all its rights and obligations under this Agreement based on the performance of this Agreement.  However, Party B shall unconditionally assume a joint and several liability together with the Third Party for the performance of this Agreement.

		
	9.3
	All the information in relation to this Agreement and the transaction contemplated under this Agreement are confidential information, and all the parties involved are obliged to keep such information confidential.  No Party shall, by action or omission, disclose such confidential information to any third party other than its employees involved or anyone who is authorized to have access to the confidential information, except that the disclosure is required to make by law or by any governmental or other regulatory authority. The Parties to this Agreement shall also supervise the personnel employed by the professional agencies and cause such personnel to undertake confidentiality obligations.

		
	9.4
	In the event that this Agreement cannot be performed in part or in whole due to force majeure, government action and other unforeseeable and insurmountable reasons, the Party which encounters any one of the above events shall immediately notify other Parties in writing. The Parties shall consult with each other based on the actual impacts to determine whether to terminate this Agreement, or partially or entirely exempt the affected Party from its responsibility, or postpone the performance of this Agreement.

		
	9.5
	The notices among the Parties shall be in writing. The notices and documents shall be sent by registered mail or courier to the addresses and contact persons as set forth in this Agreement.  If there is any change in one Party’s address, such Party shall promptly notify the other Parties in writing.  Otherwise, a notice or a document sent to the following address shall be deemed to have been delivered to each Party below:

    
Party A’s mailing address: 902-908, 9/F, One Harbourfront, 18 Tak Fung Street, Hung Hom, Kowloon, Hong Kong; Party A’s contact person: David Chong Cheung Hyen

Party B’s mailing address: Room S, 36/F, No. 410-412, Dongfeng Road, Yuexiu District, Guangzhou; Party B’s contact person: Cen Zhaoxiong

Party C’s mailing address: 201E, Sandpoint Avenue, 8th Floor, Santa Ana, CA 92707, USA Party C’s contact person: Bryan M. Hackworth

 Party D’s mailing address: Address:    45 Section II Shiguang Road, Zhongcun Town, Panyu District, Guangzhou; Party D’s contact person: Chen Dezhong

16

Party E’s mailing address: Suites 4706-07, 47/F, Two Exchange Square, 8 Connaught Place, Central, Hong Kong; Party E’s contact person: Cen Zhaoxiong.

		
	9.6
	If there is any discrepancy between the provisions in the Standard Equity Transfer Contract executed by Party A and Party B for the purposes of obtaining approval from the Authority in Charge of Commerce and the provisions in this Agreement, the provisions in this Agreement shall prevail.

		
	9.7
	The invalidity of any of the provisions of this Agreement shall not affect the validity of the remaining provisions.

		
	9.8
	A failure of any Party hereto to exercise any right provided under this Agreement due to any reason shall not constitute a waiver by such Party of its right to exercise any such or other right under this Agreement. 

		
	9.9
	This Agreement may be modified or supplemented in writing and signed by the Parties.  Such written documents shall constitute an integral part of this Agreement and have the same legal effect.

		
	9.10
	This Agreement is written in ten (10) originals and each is equally authentic. Party A, Party B, Party C, Party D and Party E shall each hold two originals.  This Agreement shall be effective upon execution by the authorized representatives of the Parties and affixing of their company seals respectively.

		
	9.11
	This Agreement is written in both Chinese and English.  If there is any discrepancy between the two versions, the Chinese version shall prevail.

17

	
		
	Party A: CG Development Limited (Chop)

	 
	 

	Legal Representative (Signature): /s/ David Chong Cheung Hyen

	 

	Date: September 26, 2016

	
		
	Party B: Guangzhou Junhao Investment Co., Ltd (Chop)

	 
	 

	Legal Representative (Signature): /s/ Cen Zhaoxiong

	 
	 

	Date: September 26, 2016

	
		
	Party C: Universal Electronics Inc. (Chop)

	 
	 

	Legal Representative (Signature): /s/ Bryan M. Hackworth

	 

	Date: September 26, 2016

	
		
	Party D: Gemstar Technology (China) Co., Ltd. (Chop)

	 
	 

	Legal Representative (Signature): /s/ Chen Dezhong

	 
	 

	Date: September 26, 2016

	
		
	Party E: Times Property Holdings Limited (Chop)

	 
	 

	Legal Representative (Signature): /s/ Cen Zhaoxiong

	 
	 

	Date: September 26, 2016

18Exhibit

Exhibit 10.1

NewLink Genetics Corporation
2010 Non-Employee Directors’ Stock Award Plan
Adopted by the Board of Directors: October 29, 2010
Approved by the Stockholders: January 7, 2011
Amended by the Board of Directors: July 1, 2011
Amended by the Board of Directors: January 14, 2013
Amended by the Board of Directors: February 22, 2013
Approved by the Stockholders: May 9, 2013
Amended by the Board of Directors: April 30, 2014
Amended by the Board of Directors: April 30, 2015
Amended by the Board of Directors: May 19, 2016
Amended by the Board of Directors: August 9, 2016

		
	1.
	General.

(a)Eligible Stock Award Recipients.  The persons eligible to receive Stock Awards are the Non-Employee Directors of the Company.
(b)Available Stock Awards.  The Plan provides for the grant of the following Stock Awards: (i) Nonstatutory Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock Awards, (iv) Restricted Stock Unit Awards, and (v) Other Stock Awards.
(c)Purpose.  The Company, by means of the Plan, seeks to retain the services of its Non-Employee Directors, to secure and retain the services of new Non-Employee Directors and to provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate by giving them an opportunity to benefit from increases in value of the Common Stock through the granting of Stock Awards.
2.Administration.
(a)Administration by Board.  The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c).
(b)Powers of Board.  The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:
(i)With respect to Stock Awards issued pursuant to Sections 5(a) and 5(b), to determine the provisions of each Stock Award to the extent not specified in the Plan.
(ii)With respect to Stock Awards issued pursuant to Section 5(d), to determine from time to time (A) which of the persons eligible under the Plan shall be granted Stock Awards; (B) when and how each Stock Award shall be granted; (C) what type or combination of types of Stock Awards shall be granted; (D) the provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be permitted to receive cash or Common Stock pursuant to a Stock Award; (E) the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person; and (F) the Fair Market Value applicable to a Stock Award.
(iii)To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan or Stock Award fully effective.
(iv)To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, by adopting amendments relating to certain nonqualified deferred compensation under Section 409A of the Code and/or to bring the Plan or Stock Awards granted under the Plan into compliance therewith, subject to the limitations, if any, of applicable law. However, except as provided in Section 10(a) relating to Capitalization Adjustments, to the extent required by applicable law or listing requirements, 

Exhibit 10.1

stockholder approval shall be required for any amendment of the Plan that either (A) materially increases the number of shares of Common Stock available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive Stock Awards under the Plan, (C) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (D) materially extends the term of the Plan, or (E) expands the types of Stock Awards available for issuance under the Plan. Except as provided above, rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (1) the Company requests the consent of the affected Participant, and (2) such Participant consents in writing.
(v)To effect, at any time and from time to time, with the consent of any adversely affected Participant, (A) the reduction of the exercise price (or strike price) of any outstanding Option or SAR under the Plan; (B) the cancellation of any outstanding Option or SAR under the Plan and the grant in substitution therefor of (1) a new Option or SAR under the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (2) a Restricted Stock Award, (3) a Restricted Stock Unit Award, (4) an Other Stock Award, (5) cash and/or (6) other valuable consideration (as determined by the Board, in its sole discretion); or (C) any other action that is treated as a repricing under generally accepted accounting principles.
(vi)To amend the Plan or a Stock Award as provided in Section 11.
(vii)To terminate or suspend the Plan as provided in Section 12.
(viii)Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan.
(c)Delegation to Committee.  
(i)General.  The Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration of the Plan is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.  The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.
(ii)Rule 16b-3 Compliance.  The Committee may consist solely of two or more Non-Employee Directors, in accordance with Rule 16b-3.
(d)Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.
3.Shares Subject to the Plan.
(a)Share Reserve.  Subject to Section 10(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock of the Company that may be issued pursuant to Stock Awards after the Effective Date shall not exceed four hundred thousand (400,000) Note: All share numbers in this plan have been updated to reflect the 2.1-for-1 reverse stock split approved by the Board on October 19, 2011. shares.  For clarity, the limitation in this Section 3(a) is a limitation in the number of shares of Common Stock that may be issued pursuant to the Plan.  Accordingly, this Section 3(a) does not limit the granting of Stock Awards except as provided in Section 8(a).  Shares may be issued in connection with a merger or acquisition as permitted by, as applicable, NASDAQ Listing Rule 5635(c), NYSE Listed Company Manual Section 303A.08, AMEX Company Guide Section 711 or other applicable stock exchange rules, and such issuance shall not reduce the number of shares available for issuance under the Plan.  Furthermore, if a Stock Award or any portion thereof (i) expires or otherwise terminates without all of the shares covered by such Stock Award having 

Exhibit 10.1

been issued or (ii) is settled in cash (i.e., the Participant receives cash rather than stock), such expiration, termination or settlement shall not reduce (or otherwise offset) the number of shares Common Stock that may be available for issuance under the Plan.
(b)Reversion of Shares to the Share Reserve.  If any shares of Common Stock issued pursuant to a Stock Award are forfeited back to the Company because of the failure to meet a contingency or condition required to vest such shares in the Participant, then the shares that are forfeited shall revert to and again become available for issuance under the Plan.  Any shares reacquired, withheld or not issued by the Company pursuant to Section 9(e) or as consideration for the exercise of a Stock Award shall again become available for issuance under the Plan.  For the avoidance of doubt, if an appreciation distribution in respect of a Stock Appreciation Right is paid in shares of Common Stock, the number of shares subject to the Stock Award that are not delivered to the Participant shall remain available for subsequent issuance under the Plan.
(c)Source of Shares.  The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market or otherwise.
4.Eligibility.
The Initial and Annual Grants as set forth in Sections 5(a) and 5(b) automatically shall be granted under the Plan to all Non-Employee Directors who meet the specified criteria.  Stock Awards may also be granted to Non-Employee Directors as discretionary grants as set forth in Section 5(d).
		
	5.
	Non-Discretionary and Discretionary Grants.

(a)Initial Grants.  
(i)Prior to January 14, 2013, without any further action of the Board, each person who after the IPO Date was elected or appointed for the first time to be a Non-Employee Director automatically was granted an Option to purchase 11,904 shares of Common Stock on the date of his or her initial election or appointment to be a Non‐Employee Director on the terms and conditions set forth herein.
(ii)Beginning on January 14, 2013 and prior to April 30, 2014, without any further action of the Board, each person who was elected or appointed for the first time to be a Non-Employee Director automatically was, upon the date of his or her initial election or appointment to be a Non‐Employee Director, granted an Option to purchase 20,000 shares of Common Stock on the terms and conditions set forth herein.
(iii)Beginning on April 30, 2014, and prior to April 30, 2015, without any further action of the Board, each person who is elected or appointed for the first time to be a Non-Employee Director automatically shall, upon the date of his or her initial election or appointment to be a Non-Employee Director, be granted an Option and a Restricted Stock Unit Award that together have a total value on the date of grant equal to $500,000 on the terms and conditions set forth herein.  The number of shares subject to each Stock Award will be determined as follows:
(1)The number of shares subject to the Option will be equal to (i) 75% of $500,000, (ii) divided by the per share grant date fair value that will be used for reporting the compensation expense associated with the Option under applicable accounting guidance.
(2)The number of shares subject to the Restricted Stock Unit Award will be equal to (i) 25% of $500,000, (ii) divided by the Fair Market Value of the Common Stock on the date of grant.
(iv)Beginning on April 30, 2015, and ending on April 30, 2016, without any further action of the Board, each person who is elected or appointed for the first time to be a Non-Employee Director automatically shall, upon the date of his or her initial election or appointment to be a Non-Employee Director, be granted an Option and a Restricted Stock Unit Award that together have a total value on the date of grant equal to $500,000 on the terms and conditions set forth herein. The number of shares subject to each Stock Award will be determined as follows:
(1)The number of shares subject to the Option will be equal to (i) 65% of $500,000, (ii) divided by the per share grant date fair value that will be used for reporting the compensation expense associated with the Option under applicable accounting guidance. 

Exhibit 10.1

(2)The number of shares subject to the Restricted Stock Unit Award will be equal to (i) 35% of $500,000, (ii) divided by the Fair Market Value of the Common Stock on the date of grant.
(v)Beginning on July 28, 2016, without any further action by the Board, each person who is elected or appointed for the first time to be a Non-Employee Director automatically shall, upon the date of his or her initial election or appointment to be a Non-Employee Director, be granted an Option for a number of shares equal to $250,000 divided by the per share grant date fair value that will be used for reporting the compensation under applicable accounting guidance.
(b)Annual Grants. 
(i)Prior to January 14, 2013, without any further action of the Board, on the date of each Annual Meeting, commencing with the first Annual Meeting following the IPO Date, each person who was then a Non-Employee Director automatically was granted an Option to purchase, on the terms and conditions set forth herein:
(1)7,142 shares of Common Stock; plus
(2)3,571 shares of Common Stock for Non-Employee Directors who were serving as the chair of the Audit, Compensation or Nominating and Corporate Governance Committee, or as Lead Independent Director on the date of grant; plus
(3)2,380 shares of Common Stock for Non-Employee Directors who were serving (but not as the chair) on the Audit, Compensation or Nominating and Corporate Governance Committee on the date of grant.
(ii)Beginning on January 14, 2013 and prior to April 30, 2014, without any further action of the Board: (x) on the date of each Annual Meeting, commencing with the Annual Meeting held in 2013, each person who was a Non-Employee Director immediately after such meeting of shareholders automatically was granted an Option to purchase 12,000 shares of common stock on the terms and conditions set forth herein, and (y) any person elected as or appointed to become a Non-Employee Director at a time other than at the Annual Meeting, upon the date of such election or appointment, was granted an Option to purchase the number of shares determined by multiplying 12,000 by a fraction, the numerator of which was the number of days between the date of such election and the date which was the first anniversary of the date of the last preceding Annual Meeting, and the denominator of which was 365.
(iii)Beginning on April 30, 2014, and prior to April 30, 2015, without any further action of the Board:
(1)On the date of each Annual Meeting, commencing with the Annual Meeting held in 2014, each person who is a Non-Employee Director immediately after such meeting of shareholders automatically shall be granted an Option and a Restricted Stock Unit Award that together have a total value on the date of grant equal to $250,000 on the terms and conditions set forth herein.  The number of shares subject to each Stock Award will be determined as follows:
a.The number of shares subject to the Option will be equal to (i) 75% of $250,000, (ii) divided by the per share grant date fair value that will be used for reporting the compensation expense associated with the Option under applicable accounting guidance.
b.The number of shares subject to the Restricted Stock Unit Award will be equal to (i) 25% of $250,000, (ii) divided by the Fair Market Value of the Common Stock on the date of grant.
(2)Any person elected as or appointed to become a Non-Employee Director at a time other than at the Annual Meeting, upon the date of such election or appointment, will be granted:
a.an Option to purchase the number of shares determined by multiplying the number of shares as determined pursuant to 5(b)(iii)(1)(a) by a fraction, the numerator of which will be the number of days between the date of such election and the date which is the first anniversary of the date of the last preceding Annual Meeting, and the denominator of which will be 365, and
b.a Restricted Stock Unit Award for the number of shares determined by multiplying the number of shares as determined pursuant to 5(b)(iii)(1)(b) by a fraction, the numerator of 

Exhibit 10.1

which will be the number of days between the date of such election and the date which is the first anniversary of the date of the last preceding Annual Meeting, and the denominator of which will be 365.
(iv)Beginning on April 30, 2015, and ending on April 30, 2016, without any further action of the Board:
(1)On the date of each Annual Meeting, commencing with the Annual Meeting held in 2014, each person who is a Non-Employee Director immediately after such meeting of shareholders automatically shall be granted an Option and a Restricted Stock Unit Award that together have a total value on the date of grant equal to $250,000 on the terms and conditions set forth herein. The number of shares subject to each Stock Award will be determined as follows: 
a.The number of shares subject to the Option will be equal to (i) 65% of $250,000, (ii) divided by the per share grant date fair value that will be used for reporting the compensation expense associated with the Option under applicable accounting guidance. 
b.The number of shares subject to the Restricted Stock Unit Award will be equal to (i) 35% of $250,000, (ii) divided by the Fair Market Value of the Common Stock on the date of grant.
(2)Any person elected as or appointed to become a Non-Employee Director at a time other than at the Annual Meeting, upon the date of such election or appointment, will be granted:
a.an Option to purchase the number of shares determined by multiplying the number of shares as determined pursuant to 5(b)(iv)(1)(a) by a fraction, the numerator of which will be the number of days between the date of such election and the date which is the first anniversary of the date of the last preceding Annual Meeting, and the denominator of which will be 365, and
b.a Restricted Stock Unit Award for the number of shares determined by multiplying the number of shares as determined pursuant to 5(b)(iv)(1)(b) by a fraction, the numerator of which will be the number of days between the date of such election and the date which is the first anniversary of the date of the last preceding Annual Meeting, and the denominator of which will be 365.
(v)Effective April 30, 2016, any annual grant of Options and/or Restricted Stock Units will be determined at the first regular meeting of the Board of Directors held on a date after the date of the 2016 Annual Meeting of Stockholders.
(vi)On the effective date of the retention grants to employees to be made in August 2016, or such later date as the Board Consent approving the August 2016 amendment to this Plan becomes effective, without any further action by the Board, each person who is a Non-Employee Director on such date shall be granted an Option for a number of shares equal to $150,000 divided by the per share grant date fair value that will be used for reporting the compensation under applicable accounting guidance (the “2016 Annual Award”).  If the number of shares of Common Stock remaining available for grants of Awards under this Plan is not sufficient to cover such amount, then the number of shares subject to Awards under this Plan shall be reduced proportionately so that the aggregate Awards under this Plan do not exceed the Share Reserve under Section 3(a).  Nothing herein shall prevent options from being granted under the Company’s 2009 Equity Incentive Plan to cover any difference between the 2016 Annual Award and the number of shares available under this Plan.
(c)Determination of Initial and Annual Grants.  The Board may, at any time, provide for Initial and Annual Grants covering a number of shares of Common Stock different than those numbers designated in Sections 5(a) and 5(b), respectively, and may provide that some or all of such grants may instead be in any of the forms of Stock Awards described in Section 7.  If the Board does not make such a determination, all Initial and Annual Grants shall be for the number of shares of Common Stock designated in Section 5(a) and 5(b), respectively and in the form of Options described in Section 6.
(d)Discretionary Grants.  In addition to non-discretionary grants pursuant to Sections 5(a) and 5(b), the Board, in its sole discretion, may grant Stock Awards to one or more Non-Employee Directors in such numbers and subject to such other provisions as it shall determine.  The numbers and other provisions of such Stock Awards need not be identical.

Exhibit 10.1

6.Provisions Relating to Options and Stock Appreciation Rights.
Each Option or SAR shall be in such form and shall contain such terms and conditions as required by the Plan.  Each Option or SAR shall contain such additional terms and conditions, not inconsistent with the Plan, as the Board shall deem appropriate.  Each Option or SAR shall include (through incorporation of provisions hereof by reference in the applicable Stock Award Agreement or otherwise) the substance of each of the following provisions:
(a)Term.    No Option or SAR shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Stock Award Agreement.
(b)Exercise Price.  The exercise price (or strike price) of each Option or SAR shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option or SAR on the date the Option or SAR is granted
(c)Purchase Price for Options.  The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable law, by any combination of the following methods of payment:
(i)by cash, check, bank draft or money order payable to the Company;
(ii)pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;
(iii)by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock; or
(iv)by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, that shares of Common Stock will no longer be subject to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are reduced to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations.
(d)Exercise and Payment of a SAR.  To exercise any outstanding Stock Appreciation Right, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.  The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of Common Stock equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) the strike price that will be determined by the Board at the time of grant of the Stock Appreciation Right.  The appreciation distribution in respect to a Stock Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.
(e)Transferability.   An Option or SAR shall not be transferable except by will or by the laws of descent and distribution and to such further extent as permitted by the Rule as to Use of Form S-8 specified in the General Instructions of the Form S-8 Registration Statement under the Securities Act, and shall be exercisable during the lifetime of the Participant only by the Participant.  Notwithstanding the foregoing, the Participant may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Option 

Exhibit 10.1

or SAR and receive the Common Stock or other consideration resulting from such exercise.  In the absence of such a designation, the executor or administrator of the Participant’s estate shall be entitled to exercise the Option or SAR and receive the Common Stock or other consideration resulting from such exercise.
(f)Option Vesting Generally.  Options shall vest as follows:
(i)Initial Grant. Thirty-three percent (33%) of the shares shall vest on the first anniversary of the date of such Initial Grant recipient’s election as a Non-Employee Director and the remaining sixty-seven percent (67%) of the shares shall vest in a series of twenty-four (24) successive equal monthly installments over the two (2)-year period following the first anniversary of the date of election, subject to Participant’s Continuous Service as of each such date. 
(ii)Annual Grant.  
(1)Annual Grants awarded prior to January 14, 2013. Fifty percent (50%) of the shares shall vest on the first anniversary of the date of grant and the remaining fifty percent (50%) of the shares shall vest in a series of twelve (12) successive equal monthly installments over the twelve (12)-month period following the first anniversary of the date of grant, subject to Participant’s Continuous Service as of each such date; provided, however that at the date of the second Annual Meeting following the date of grant, the unvested portion of the Annual Grant, if any, shall become fully vested and exercisable immediately prior to the date of such Annual Meeting.
(2)Annual Grants awarded on or after January 14, 2013. One hundred percent (100%) of the shares shall vest on the earlier of (i) the first anniversary of the date of grant and (ii) the date of the first Annual Meeting following the date of grant, in each case subject to Participant’s Continuous Service as of such date.
(iii)Discretionary Grant.  At the time of grant of an Option pursuant to Section 5(d), the Board may impose such restrictions or conditions to the vesting of the Options as it, in its sole discretion, deems appropriate.
(g)Termination of Continuous Service.  In the event that a Participant’s Continuous Service terminates (other than upon the Participant’s death or Disability), the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the applicable Stock Award Agreement, which period shall not be less than 30 days), or (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR within the time specified herein or in the Stock Award Agreement (as applicable), the Option or SAR (as applicable) shall terminate.
(h)Extension of Termination Date.  In the event that the exercise of an Option or SAR following the termination of the Participant’s Continuous Service (other than upon the Participant’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option or SAR shall terminate on the earlier of (i) the expiration of a total period of three (3) months (that need not be consecutive) after the termination of the Participant’s Continuous Service during which the exercise of the Option or SAR would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.  In addition, unless otherwise provided in a Participant’s Stock Award Agreement, if the sale of any Common Stock received upon exercise of an Option or SAR following the termination of the Participant’s Continuous Service would violate the Company’s insider trading policy, then the Option or SAR shall terminate on the earlier of (i) the expiration of a period equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the exercise of the Option or SAR would not be in violation of the Company’s insider trading policy, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.

Exhibit 10.1

(i)Disability of Participant.  In the event that a Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service or (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR within the time specified herein or in the Stock Award Agreement (as applicable), the Option or SAR (as applicable) shall terminate.
(j)Death of Participant.  In the event that (i) a Participant’s Continuous Service terminates as a result of the Participant’s death, or (ii) the Participant dies within the three (3) month period after the termination of the Participant’s Continuous Service for a reason other than death, then the Option or SAR may be exercised (to the extent the Participant was entitled to exercise such Option or SAR as of the date of death) by the Participant’s estate, by a person who acquired the right to exercise the Option or SAR by bequest or inheritance or by a person designated to exercise the Option or SAR upon the Participant’s death, but only within the period ending on the earlier of (i) the date eighteen (18) months following the date of death, or (ii) the expiration of the term of such Option or SAR as set forth in the Stock Award Agreement.  If, after the Participant’s death, the Option or SAR is not exercised within the time specified herein, the Option or SAR (as applicable) shall terminate.
7.Provisions Relating to Stock Awards other than Options and SARs.
(a)Restricted Stock Awards. Each Restricted Stock Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (x) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (y) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board.  The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical; provided, however, that each Restricted Stock Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:
(i)Consideration.  A Restricted Stock Award may be awarded in consideration for (A) cash, check, bank draft or money order payable to the Company, (B) past services to the Company or an Affiliate, or (C) any other form of legal consideration (including future services) that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.
(ii)Vesting.  Shares of Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board.
(iii)Termination of Participant’s Continuous Service.  If a Participant’s Continuous Service terminates, the Company may receive through a forfeiture condition or a repurchase right any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.
(iv)Transferability.  Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement.
(v)Dividends.  A Restricted Stock Award Agreement may provide that any dividends paid on Restricted Stock will be subject to the same vesting and forfeiture restrictions as apply to the shares subject to the Restricted Stock Award to which they relate.

Exhibit 10.1

(b)Restricted Stock Unit Awards.  Each Restricted Stock Unit Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical; provided, however, that each Restricted Stock Unit Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:
(i)Consideration.  At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award. The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.
(ii)Vesting.  At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions on or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.
(iii)Payment.  A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.
(iv)Additional Restrictions.  At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.
(v)Dividend Equivalents.  Dividend equivalents may be credited in respect of shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.  At the sole discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board.  Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all of the same terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate.
(vi)Termination of Participant’s Continuous Service.  Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.
(c)Other Stock Awards.  Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common Stock, including the appreciation in value thereof (e.g., options or stock rights with an exercise price or strike price less than 100% of the Fair Market Value of the Common Stock at the time of grant) may be granted either alone or in addition to Stock Awards provided for under Section 6 and the preceding provisions of this Section 7.  Subject to the provisions of the Plan, the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards.
8.Covenants of the Company.
(a)Availability of Shares.  During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock reasonably required to satisfy such Stock Awards.
(b)Securities Law Compliance.  The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after reasonable 

Exhibit 10.1

efforts, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. A Participant shall not be eligible for the grant of a Stock Award or the subsequent issuance of Common Stock pursuant to the Stock Award if such grant or issuance would be in violation of any applicable securities law.
(c)No Obligation to Notify or Minimize Taxes.  The Company shall have no duty or obligation to any Participant to advise such holder as to the time or manner of exercising such Stock Award.  Furthermore, the Company shall have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised.  The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award.
9.Miscellaneous.
(a)Use of Proceeds from Sales of Common Stock.  Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company.
(b)Stockholder Rights.  No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until (i) such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms, if applicable, and (ii) the issuance of the Common Stock subject to such Stock Award has been entered into the books and records of the Company.
(c)No Service Rights.  Nothing in the Plan, any instrument executed thereunder, or Stock Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate as a Non-Employee Director or shall affect the right of the Company or an Affiliate to terminate the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.
(d)Investment Assurances.  The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock.  The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (A) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (B) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws.  The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock.
(e)Withholding Obligations.  The Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares from the shares of Common Stock issued or otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid classification of the 

Exhibit 10.1

Stock Award as a liability for financial accounting purposes); (iii) authorizing the Company to withhold cash from a Stock Award settled in cash; (iv) authorizing the Company to withhold payment from any amounts otherwise payable to the Participant; or (v) by such other method as may be set forth in the Stock Award Agreement.
(f)Electronic Delivery.  Any reference herein to a “written” agreement or document shall include any agreement or document delivered electronically or posted on the Company’s intranet.
(g)Deferrals.  To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Stock Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants.  Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is providing services to the Company.  The Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous Service, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.
(h)Compliance with Section 409A.  To the extent that the Board determines that any Stock Award granted hereunder is subject to Section 409A of the Code, the Stock Award Agreement evidencing such Stock Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code.  To the extent applicable, the Plan and Stock Award Agreements shall be interpreted in accordance with Section 409A of the Code.  Notwithstanding anything to the contrary in this Plan (and unless the Stock Award Agreement specifically provides otherwise), if the shares are publicly traded and a Participant holding a Stock Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or payment of any amount shall be made upon a “separation from service” before a date that is six (6) months following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s death.
10.Adjustments upon Changes in Common Stock; Other Corporate Events.
(a)Capitalization Adjustments.  In the event of a Capitalization Adjustment, the Board shall appropriately and proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and number of securities for which the nondiscretionary grants of Stock Awards are made pursuant to Section 5, and (iv) the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards.  The Board shall make such adjustments, and its determination shall be final, binding and conclusive.
(b)Dissolution or Liquidation.  In the event of a dissolution or liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) shall terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion.
(c)Corporate Transaction.  In the event of a Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board shall take one or more of the following actions with respect to Stock Awards, contingent upon the closing or completion of the Corporate Transaction:
(i)arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume or continue the Stock Award or to substitute a similar 

Exhibit 10.1

stock award for the Stock Award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction);
(ii)arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to the Stock Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company);
(iii)accelerate the vesting of the Stock Award (and, if applicable, the time at which the Stock Award may be exercised) to a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five (5) days prior to the effective date of the Corporate Transaction), with such Stock Award terminating if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction;
(iv)arrange for the lapse of any reacquisition or repurchase rights held by the Company with respect to the Stock Award;
(v)cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective time of the Corporate Transaction, in exchange for such cash consideration, if any, as the Board, in its sole discretion, may consider appropriate; and
(vi)make a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the Participant would have received upon the exercise of the Stock Award, over (B) any exercise price payable by such holder in connection with such exercise.
The Board need not take the same action or actions with respect to all Stock Awards or  portions thereof or with respect to all Participants.
(d)Change in Control.  A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration shall occur.
11.Amendment of the Plan and Stock Awards.
(a)Amendment of Plan.  Subject to the limitations, if any, of applicable law, the Board, at any time and from time to time, may amend the Plan.  However, except as provided in Section 10(a)  relating to Capitalization Adjustments, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy applicable law.
(b)Stockholder Approval.  The Board, in its sole discretion, may submit any other amendment to the Plan for stockholder approval.
(c)No Impairment of Rights.  Rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing.
(d)Amendment of Stock Awards.  The Board, at any time and from time to time, may amend the terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant, and (ii) the Participant consents in writing.  Notwithstanding the foregoing, subject to the limitations of applicable law, if any, the Board may amend the terms of any one or more Stock Awards without the affected Participant’s consent if necessary to bring the Stock Award into compliance with Section 409A of the Code.
12.Termination or Suspension of the Plan 
(a)Plan Term.  The Board may suspend or terminate the Plan at any time. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated.
(b)No Impairment of Rights.  Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant.

Exhibit 10.1

13.Effective Date of Plan.
This Plan shall become effective on the IPO Date, but no Stock Award shall be exercised (or in the case of a Restricted Stock Award, Restricted Stock Unit Award, or Other Stock Award shall be granted) unless and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve months before or after the date the Plan is adopted by the Board.  
		
	14.
	Choice of Law.

The law of the state of Iowa shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.
		
	15.
	Definitions.  As used in the Plan, the following definitions shall apply to the capitalized terms indicated below:

(a)“Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the Securities Act.  The Board shall have the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition.
(b)“Annual Grant” means an Option granted to a Non-Employee Director pursuant to Section 5(b).
(c)“Annual Meeting” means the first annual meeting of the stockholders of the Company held each fiscal year at which the Directors are selected.
(d)“Board” means the Board of Directors of the Company.
(e)“Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards No. 123 (revised).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company shall not be treated as a Capitalization Adjustment.
(f)“Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:
(i)any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities, or (C) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;
(ii)there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, 

Exhibit 10.1

either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;
(iii)the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation;
(iv)there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition; or
(v)individuals who, on the date the Plan is adopted by the Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.
Notwithstanding the foregoing or any other provision of this Plan, (A) the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply.
In the event that a Change in Control affects any Stock Award that is deferred, then “Change in Control” shall conform to the definition of Change of Control under Section 409A of the Code, as amended, and the Treasury Department or Internal Revenue Service Regulations or Guidance issued thereunder.

(g)“Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.
(h)Committee” means a committee of one or more Directors to whom authority has been delegated by the Board in accordance with Section 2(c).
(i)“Common Stock” means the common stock of the Company.
(j)“Company” means NewLink Genetics Corporation, a Delaware corporation.
(k)“Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services.  However, service solely as a Director, or payment of a fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan. Notwithstanding the foregoing, a person is treated as a Consultant under this Plan only if a Form S-8 Registration Statement under the Securities Act is available to register either the offer or the sale of the Company’s securities to such person.
(l)“Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director 

Exhibit 10.1

or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service; provided, however, if the Entity for which a Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board, in its sole discretion, such Participant’s Continuous Service shall be considered to have terminated on the date such Entity ceases to qualify as an Affiliate.  To the extent permitted by law, the Board, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of (i) any leave of absence approved by the Board, including sick leave, military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their successors.  Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.
(m)“Corporate Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:
(i)the consummation of a sale or other disposition of all or substantially all, as determined by the Board, in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;
(ii)the consummation of a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company;
(iii)the consummation of a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or
(iv)the consummation of a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.
(n)“Director” means a member of the Board.
(o)“Disability” means, with respect to a Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and shall be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.
(p)“Effective Date” means the effective date of this Plan document, as set forth in Section 13.
(q)“Employee” means any person employed by the Company or an Affiliate.  However, service solely as a Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan.
(r)“Entity” means a corporation, partnership, limited liability company or other entity.
(s)“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
(t)“Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities.

Exhibit 10.1

(u)“Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:
(i)If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in a source the Board deems reliable.
(ii)Unless otherwise provided by the Board, if there is no closing sales price for the Common Stock on the date of determination, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.
(iii)In the absence of such markets for the Common Stock, the Fair Market Value shall be determined by the Board in good faith and in a manner that complies with Sections 409A and 422 of the Code.
(v)“Initial Grant” means an Option granted to a Non-Employee Director pursuant to Section 5(a).
(w)“IPO Date” means the date of the underwriting agreement between the Company and the underwriter(s) managing the initial public offering of the Common Stock, pursuant to which the Common Stock is priced for the initial public offering.
(x)“Non-Employee Director” means a Director who is not an Employee.
(y)“Nonstatutory Stock Option” means an Option not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.
(z)“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.
(aa)“Option” means a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to Section 6 of the Plan.
(ab)“Option Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Option grant.  Each Option Agreement shall be subject to the terms and conditions of the Plan.
(ac)“Other Stock Award” means an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 7(c).
(ad)“Other Stock Award Agreement” means a written agreement between the Company and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant.  Each Other Stock Award Agreement shall be subject to the terms and conditions of the Plan.
(ae)“Own,” “Owned,” “Owner,” “Ownership”  A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.
(af)“Participant” means a Non-Employee Director to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.
(ag)“Plan” means this NewLink Genetics Corporation 2010 Non-Employee Directors’ Stock Award Plan.
(ah)“Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 7(a).
(ai)“Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant.  Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan.
(aj)“Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and conditions of Section 7(b).
(ak)“Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock 

Exhibit 10.1

Unit Award grant.  Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan.
(al)“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.
(am)“Securities Act” means the Securities Act of 1933, as amended.
(an)“Stock Appreciation Right” or “SAR” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 6.
(ao)“Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant.  Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan.
(ap)“Stock Award” means any right to receive Common Stock granted under the Plan, including a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation Right or any Other Stock Award. 
(aq)“Stock Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of a Stock Award grant.  Each Stock Award Agreement shall be subject to the terms and conditions of the Plan.
(ar)“Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%).

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