Document:

EX-10.1

Exhibit 10.1

RDA MICROELECTRONICS, INC.

 

SHARE OPTION SCHEME

(Amended and Restated on April 1, 2008)

 

 

 

Contents

	 	 	 	 	 	 	 
	Clause	 	Title	 	Page	 
	1.
	 	DEFINITIONS	 	 	1	 
	2.
	 	CONDITIONS	 	 	4	 
	3.
	 	DURATION AND ADMINISTRATION	 	 	4	 
	4.
	 	GRANT OF OPTION	 	 	4	 
	5.
	 	EXERCISE OF OPTIONS	 	 	5	 
	6.
	 	LAPSE OF OPTION	 	 	8	 
	7.
	 	ADJUSTMENTS	 	 	9	 
	8.
	 	SHARE CAPITAL	 	 	9	 
	9.
	 	DISPUTES	 	 	9	 
	10.
	 	ALTERATION OF THE SCHEME	 	 	9	 
	11.
	 	TERMINATION	 	 	10	 
	12.
	 	MISCELLANEOUS	 	 	10	 

 

 

Share Option Scheme

(Amended and Restated on April 1, 2008)

	1.	 	DEFINITIONS 
	 
	1.1	 	In this Scheme, the following expressions have the following meanings:

	 	 	 
	“Adoption Date”

	 	means August 31, 2005 (the date on which
the Scheme is adopted by written resolution
of the shareholders of the Company);
	 
	 	 
	“Auditors”

	 	means the auditors for the time being of
the Company;
	 
	 	 
	“Board”

	 	means the board of directors of the Company
or a duly authorised committee thereof;
	 
	 	 
	“Company”

	 	means RDA Microelectronics, Inc., a Company
incorporated under the laws of the British
Virgin Islands;
	 
	 	 
	“Company Transaction”

	 	means consummation of either:
	 

	 	(a) a merger, consolidation, or
amalgamation of the Company with or into
any other corporation or other entity, or

	 

	 	
(b) a sale, lease, exchange or other
transfer in one transaction or a series of
related transactions, of all or
substantially all the Company’s outstanding
securities or all or substantially all the
Company’s assets

	 

	 	
provided, however, that a Company
Transaction shall not include a Related
Party Transaction;
	 
	 	 
	“Employee”

	 	means an employee of any Group Company and
shall be deemed to include any director,
consultant, adviser or contractor thereof;
	 
	 	 
	“Exchange”

	 	means The Stock Exchange of Hong Kong
Limited (either Main Board or GEM) or any
other internationally recognized stock
exchange as the Board may select;
	 
	 	 
	“GEM”

	 	means the Growth Enterprise Market of The
Stock Exchange of Hong Kong Limited;
	 
	 	 
	“Group Companies”

	 	means the Company, the Listing Vehicle or
any of their respective Subsidiaries, each
of which shall be referred to as a “Group
Company”;

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	“Hong Kong”

	 	means the Hong Kong Special Administrative
Region of the People’s Republic of China;
	 
	 	 
	“Individual Option Grant Date”

	 	means the effective date on which an Option
is awarded to an Employee as set forth in
the Option Agreement;
	 
	 	 
	“Listing”

	 	means the listing of the shares in the
Company or the Listing Vehicle (as the case
may be) on the Exchange by way of initial
public offering;
	 
	 	 
	“Listing Date”

	 	means the date on which the Listing occurs;
	 
	 	 
	“Listing Price”

	 	means the initial public offering price or
such other price of the shares in the
Company or the Listing Vehicle (as the case
may be) as may be approved by the Exchange;
	 
	 	 
	“Listing Vehicle”

	 	means the appropriate corporate vehicle
other than the Company (as determined by
the Company or its related entities) for
listing of shares on the Exchange;
	 
	 	 
	“Main Board”

	 	means the Main Board of The Stock Exchange
of Hong Kong Limited;
	 
	 	 
	“Option”

	 	means an option to subscribe either for
Shares or shares in the Listing Vehicle,
but not both, pursuant to the Scheme;
	 
	 	 
	“Option Agreement”

	 	has the meaning given in Section 4.3;
	 
	 	 
	“Optionee”

	 	means an Employee to whom the Company has
granted an Option;
	 
	 	 
	“Plan Termination Date”

	 	means the ten (10) years commencing from
the Adoption Date;
	 
	 	 
	“PRC”

	 	means the People’s Republic of China;

2

 

	 	 	 
	“Related Party Transaction”

	 	means:
	 

	 	(a) a merger, consolidation or amalgamation
of the Company in which the holders of the
outstanding voting securities of the
Company immediately prior to the merger or
consolidation hold at least a majority of
the outstanding voting securities of the
Successor Company immediately after the
merger, consolidation or amalgamation,
	 

	 	(b) a sale, lease, exchange or other
transfer of the Company’s assets to a
Subsidiary,
	 

	 	(c) a transaction undertaken for the
principal purpose of restructuring the
capital of the Company, including but not
limited to, reincorporating the Company in
a different jurisdiction or creating a
holding company, or
	 

	 	(d) a corporate dissolution or liquidation;
	 
	 	 
	“Scheme”

	 	means this share option scheme in its
present or any amended form;
	 
	 	 
	“Shares”

	 	means shares of US$0.01 each (or of such
other nominal amount of the shares
comprising the ordinary share capital of
the Company as shall result from a
sub-division or a consolidation of such
shares from time to time) in the Company;
	 
	 	 
	“Subscription Price”

	 	means the price at which a Optionee may
subscribe for Shares on the exercise of an
Option;
	 
	 	 
	“Subsidiary”

	 	means a company which is for the time being
and from time to time a subsidiary within
the meaning of Section 2 of the Companies
Ordinance, Chapter 32 of the Laws of Hong
Kong, as amended from time to time whether
incorporated in Hong Kong, PRC or
otherwise;
	 
	 	 
	“Successor Company”

	 	means the surviving company, the successor
company or its parent, as applicable in
connection with a Company Transaction;
	 
	 	 
	“Termination Date”

	 	means the date of Employee’s last actual
working day with any the Group Company by
which he is employed whether salary is paid
in lieu of notice or not.

	1.2	 	Clause headings are inserted for convenience of reference only and shall be ignored in the
interpretation of the Scheme. Reference herein to Clauses and Schedules are
to clauses and schedules of this Scheme.

3

 

	1.3	 	Reference to the singular includes a reference to the plural and vice versa and reference to
any gender includes a reference to all other genders.
	 
	1.4	 	Subject as provided in this Scheme and without prejudice to any provisions in this Scheme, in
the event that the Listing Vehicle (instead of the Company) is used as the vehicle for
Listing, “Shares” as used in this Scheme shall be construed as “shares of the Listing Vehicle”
where the context requires, and the Company shall, subject to the compliance of all applicable
rules, regulations and laws for the time being in force, use its best endeavours to switch the
entitlement of the Option for Shares in the Company to the shares of the Listing Vehicle
immediately upon Listing.
	 
	2.	 	CONDITIONS
	 
	 	 	This Scheme shall take effect subject to the passing of the necessary resolution to adopt
the Scheme by the shareholders of the Company in writing.
	 
	3.	 	DURATION AND ADMINISTRATION
	 
	3.1	 	Subject to Clause 11, this Scheme shall terminate upon the Plan Termination Date and no
further Options will be issued after the Plan Termination Date, but Options granted before the
Plan Termination date will continue to be effective in accordance with their terms and
conditions and the provisions of this Scheme.
	 
	3.2	 	This Scheme shall be subject to the administration of the Board whose decision (save as
otherwise provided herein) shall be final and binding on all parties affected hereby.
	 
	3.3	 	The Board shall have the authority to adopt such modifications, procedures and subplans as
may be necessary or desirable to comply with provisions of the laws of any countries in which
any Group Company may operate to assure the viability of the benefits from Options granted to
Optionees employed in such countries and to meet the objectives of the Scheme.
	 
	4.	 	GRANT OF OPTION
	 
	4.1	 	On and subject to the terms of this Scheme, the Board may grant Options to any Employees
between the Adoption Date and the Plan Termination Date, unless sooner terminated in
accordance with the provisions hereof. The Board shall have sole discretion as to whether an
Option is granted, the number of Shares in respect of which an Option is granted, and the
Subscription Price per Share, all of which shall be set out in the relevant Option Agreement.
	 
	4.2	 	On and subject to the terms of this Scheme, the maximum number of Shares in respect of which
Options may be granted shall be thirty million (30,000,000) Shares, subject to adjustment
pursuant to Section 7. Shares as to which an Option is granted under this Scheme that remains
unexercised at the expiration, forfeiture or other termination of such Option may be the
subject of the grant of further Options. Shares issued hereunder may consist, in whole or in
part, of authorized and unissued shares
or treasury shares.

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	4.3	 	On and subject to the terms of this Scheme, each Option shall be evidenced by an option
agreement (“Option Agreement”) to be entered into between the Company and the Optionee. The
Option Agreement shall contain such terms and conditions as may be approved by the Board.
	 
	4.4	 	Unless specified otherwise in the Option Agreement, each Option granted to a Optionee shall
vest in four (4) equal installments, each representing twenty-five percent (25%) of the Shares
issuable under such Option, which shall take place on each of the four (4) consecutive
anniversaries of the Individual Option Grant Date concerned, provided that such Optionee
remains an Employee on such anniversary. The Board shall have sole discretion in any Option
Agreement to establish a vesting schedule that differs from the schedule provided in this
Section 4.4.
	 
	5.	 	EXERCISE OF OPTIONS
	 
	5.1	 	An Option shall be personal to the Optionee and shall not be assignable and no Optionee shall
in any way sell, transfer, charge, mortgage, encumber or create any interest in favour of any
third party over or in relation to any Option. The Company or the Listing Vehicle (as the
case may be) after having reasonably satisfied itself that the Optionee shall have committed a
breach of this Clause 5.1, shall revoke any Option granted to such Optionee (to the extent not
already exercised) by written notice. Such revocation notice shall be final and binding on
such Optionee.
	 
	5.2	 	Except as provided otherwise herein, an Option may be exercised only to the extent it has
vested. Additionally, an Option may not be exercised if, in the opinion of the Company’s
counsel, the issuance of Shares upon such exercise will violate any applicable laws. An
Option may be exercised during the time periods and subject to the terms stated herein, in
whole or in part, by giving notice in writing to the Company or the Listing Vehicle, as the
case may be, stating that the Option is thereby exercised and the number of Shares in respect
of which it is exercised, provided that such Option shall be exercised in respect of a “board
lot” (as defined by the Exchange) for dealing in Shares on the Exchange or an integral
multiple thereof (except where the number of Shares in respect of which the Option remains
unexercised is less than one board lot or where the Option is exercised in full). Each such
notice must be accompanied by a remittance for the full amount of the Subscription Price for
the Shares or shares in the Listing Vehicle in respect of which the notice is given. Within
28 days after receipt of the notice and the remittance, the Company or the Listing Vehicle (as
the case may be) shall allot the relevant shares to the Optionee (or his legal personal
representatives) credited as fully paid provided that, in the case of a notice and remittance
received pursuant to Clause 5.4(c), the Company or the Listing Vehicle (as the case may be)
shall within 3 days allot the relevant shares to the Optionee (or his legal personal
representatives) credited as fully paid and, in the case of a notice and remittance received
pursuant to Clause 5.4(d), the Company or the Listing Vehicle (as the case may be) shall allot
the relevant shares at such time as provided therein.

5

 

	5.3	 	Notwithstanding the foregoing, the Board may, in its sole discretion, provide notice to the
Optionee that the sole method of exercising Options shall be through a
cashless exercise program the Company establishes with a designated securities broker (the
“Broker”). Under the terms of such program the Optionee will not make any cash payment to
the Company or the Broker to effect the exercise. The Broker will fund the exercise on
behalf of the Optionee, immediately sell the Shares issued upon such exercise, then remit
to a bank account designated by the Optionee the cash proceeds of the sale after deducting
the Subscription Price, the Broker’s fees, and any tax withholding the Broker or the
Company, in their discretion, consider advisable for compliance with the tax law
requirements of the United States of America or the People’s Republic of China. Under
such program at no time will the Shares issued upon such exercise be registered in the
name of the Optionee.
	 
	5.4	 	Except as provided in this Scheme, Options may only be exercised as to their vested portions,
provided that:

	 	(a)	 	in the event of the Optionee ceasing to be an Employee for any reason other
than his death, disability or the termination of his employment on one or more of the
grounds specified in Clause 6(d),
	 
	 	 	 	(i) with respect to Options granted subsequent to the Listing Date, the Optionee may
exercise the portion of his Options vested as of the Termination Date (to the extent
not already exercised) within the one month period following the Termination Date;
	 
	 	 	 	(ii) with respect to Options granted prior to the Listing Date, the Optionee may
exercise the portion of his Options vested as of the Termination Date (to the extent
not already exercised) until the tenth (10) anniversary of such Optionees’s
respective Individual Option Grant Date; and
	 
	 	 	 	(iii) with respect to either Clause 5.4(a)(i) or (ii) above, unless the Board
provides otherwise, if on the Termination Date of an Optionee, the Optionee is not
vested as to his entire Option, the Option shall terminate and the Shares covered by
the unvested portion of the Option shall revert to the Scheme. If, after the
Termination Date of an Optionee, the Optionee does not exercise the vested portion
of his or her Option within the time specified by the Board, the Shares covered by
the vested portion of the Option shall revert to the Scheme.
	 
	 	(b)	 	in the event of Optionee’s death while an Employee and none of the events
which would be a ground for termination of his employment under Clause 6(d) applies,
the legal personal representative(s) of the Optionee shall be entitled to exercise
the portion of Optionee’s Option vested as of the date of death (to the extent not
already exercised) within the twelve month period following the date of death. If, at
the time of death, the Optionee is not vested as to his or her entire Option, the
Option shall terminate and the Shares covered by the unvested portion of the Option
shall immediately revert to the Scheme. If the vested portion of the Option is not
so exercised within the time specified herein, and the Shares covered by the vested
portion of the Option shall revert to the Scheme;

6

 

	 	(c)	 	if a general offer (whether by takeover offer or scheme of arrangement or
otherwise in like manner) is made to all the holders of Shares or the shares in
the Listing Vehicle (as the case may be) (or all such holders other than the offeror
and/or any person controlled by the offeror and/or any person acting in concert with
the offeror) and such offer becomes or is declared unconditional, the Optionee (or
his legal personal representatives) shall be entitled to exercise the Option up to
his entitlement (to the extent not already exercised) at any time within ten days
after the date on which the offer becomes or is declared unconditional after which
time the Option shall lapse;
	 
	 	(d)	 	if a notice is given by the Group Company of which the Optionee is an
Employee to its members to convene a general meeting for the purposes of considering,
and if thought fit, approving a resolution to voluntarily wind up such Group Company,
then such Group Company shall give notice thereof to all Optionees (together with a
notice of the existence of the provisions of this Clause) and thereupon, each
Optionee (or his legal personal representative(s)) shall be entitled to exercise all
or any of his vested Options at any time not later than five business days prior to
the proposed general meeting of such Group Company by giving notice in writing to the
Group Company, accompanied by a remittance for the full amount of the aggregate
Subscription Price for the Shares or the shares in the Listing Vehicle in respect of
which the notice is given whereupon the Group Company shall as soon as possible and,
in any event, no later than the business day immediately prior to the date of the
proposed general meeting referred to above, allot the relevant Shares or shares in
the Listing Vehicle (as the case may be) to the Optionee credited as fully paid;
	 
	 	(e)	 	in the event of a Company Transaction, except as provided below, each
outstanding Option shall be assumed or an equivalent option or right substituted by
the Successor Company, otherwise the Option may be exercised to the extent it has
vested and the unvested portion shall lapse and no longer be exercisable, provided
that the Corporate Transaction is ultimately consummated.
	 
	 	 	 	For the purposes of this Section 5.4(e), the Option shall be considered assumed or
substituted for if following the Company Transaction the option or right confers the
right to purchase or receive, for each share of Ordinary Shares subject to the
Option immediately prior to the Company Transaction, the consideration (whether
stock, cash, or other securities or property) received in the Company Transaction by
holders of Ordinary Shares for each share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding shares);
provided, however, that if such consideration received in the Company Transaction is
not solely Ordinary Shares of the Successor Company, the Board may, with the consent
of the Successor Company, provide for the consideration to be received upon the
exercise of the Option, for each share of Ordinary Shares subject thereto, to be
solely Ordinary Shares of the Successor Company substantially equal in fair market
value to the per share consideration received by holders of Ordinary Shares in the
Company Transaction. The determination of such substantial equality of value of
consideration shall be made by the Board and its determination shall be conclusive
and binding.
	 
	 	 	 	All Options shall terminate and cease to remain outstanding immediately following
the Company Transaction, except to the extent exercise is permitted by the Board or
the Options are assumed by the Successor Company.

7

 

	 	(f)	 	if the Optionee ceases to be an Employee by reason of disability, the
Option shall cease vesting on the day of cessation of employment, but the Option
shall remain exercisable (to the extent vested) until the earlier of thirty (30) days
after the Listing Date, or five (5) years after the Termination Date. Unless the
Board provides otherwise, if on the Termination Date the Optionee is not vested as to
his entire Option, the Option shall terminate and the Shares covered by the unvested
portion of the Option shall revert to the Scheme. If, after the Termination Date,
the Optionee does not exercise his vested portion of the Option within the time
specified herein, and the Shares covered by the vested portion of the Option shall
revert to the Scheme.
	 
	 	(g)	 	if the Optionee ceases to be an Employee due to the termination of his
employment on one or more of the grounds specified in Clause 6(d), the Optionee’s
Option shall immediately lapse and not be exercisable and the Shares covered by his
Option shall revert to the Scheme.

	5.5	 	Subject as hereinafter provided in this Scheme, the Shares or the shares in the Listing
Vehicle (as the case may be) to be allotted upon the exercise of an Option will be subject to
all the provisions of the articles of association (or the equivalent of the articles of
association) of the Company or the Listing Vehicle (as the case may be) for the time being in
force and will rank pari passu with the fully paid Shares or the shares of the same class in
the Listing Vehicle (as the case may be) in issue on the date of allotment and accordingly
will entitle the holders to participate in all dividends or other distributions paid or made
on or after the date of allotment other than any dividend or other distribution previously
declared or recommended or resolved to be paid or made with respect to a record date which
shall be before the date of allotment.
	 
	6.	 	LAPSE OF OPTION
	 
	 	 	An Option shall lapse automatically and not be exercisable (to the extent not already
exercised) on the earliest of:

	 	(a)	 	ten (10) years from the Individual Option Grant Date;
	 
	 	(b)	 	the expiry of any of the periods referred to in Clause 5.4(a), (b), (c),
(e), or (f);
	 
	 	(c)	 	the close of the fifth business day prior to the general meeting (or its
equivalent) of a Group Company held for the purposes of approving the winding-up of a
Group Company or the date of the commencement of the winding-up of a Group Company;
	 
	 	(d)	 	the date on which the Optionee ceases to be an Employee of any Group
Company by reason of the termination of his employment on any one or more of the
grounds that he has been guilty of misconduct, or has committed an act
of bankruptcy or has become insolvent or has made any arrangement or composition
with his creditors generally, or has been convicted of any criminal offence
involving his integrity or honesty or (if so determined by the Board) on any other
ground on which an employer would be entitled to terminate his employment at common
law or pursuant to any applicable laws or under the Optionee’s service contract with
any Group Company. A resolution of the board of directors (or its equivalent) of
the subject Group Company to the effect that the employment of a Optionee has or has
not been terminated on one or more of the grounds specified in this Clause 6(d)
shall be conclusive; or
	 
	 	(e)	 	the date on which the Optionee commits a breach of Clause 5.1.

8

 

	7.	 	ADJUSTMENTS
	 
	 	 	In the event of any dividend, share split, combination or exchange of Shares,
amalgamation, arrangement or consolidation, spin-off, recapitalization or other
distribution (other than normal cash dividends) of Company assets to its shareholders, or
any other change affecting the shares of Shares or the share price of a Share, the Board
shall make such proportionate adjustments, if any, as necessary to reflect such change
with respect to (a) the aggregate number and type of shares that may be issued under the
Scheme; (b) the terms and conditions of any outstanding Options (including, without
limitation, any applicable performance targets or criteria with respect thereto); and (c)
the grant or exercise price per share for any outstanding Options under the Scheme.
	 
	8.	 	SHARE CAPITAL
	 
	 	 	The exercise of any Option shall be subject to the members of the Company or the Listing
Vehicle (as the case may be) in general meeting approving any necessary increase in the
authorised share capital of the Company or the Listing Vehicle (as the case may be).
Subject thereto the Board or the board of directors of the Listing Vehicle (as the case
may be) shall make available sufficient authorised but unissued share capital of the
Company or the Listing Vehicle (as the case may be) to meet subsisting requirements on the
exercise of Options.
	 
	9.	 	DISPUTES
	 
	 	 	Any dispute arising in connection with the Scheme (whether as to the number of Shares the
subject of an Option, the amount of the Subscription Price or otherwise) shall be referred
to the decision of the Auditors who shall act as experts and not as arbitrators and whose
decision shall be final and binding.
	 
	10.	 	ALTERATION OF THE SCHEME
	 
	 	 	The Scheme may be altered in any respect by resolution of the Board or the board of
directors of the Listing Vehicle (as the case may be) except that the provisions of the
Scheme as to:

	 	(a)	 	the definitions of “Optionee” and “ Plan Termination Date” in Clause 1.1;
and

9

 

	 	(b)	 	the provisions of Clauses 3.1, 4, 5, 6, 7 and this Clause 10,

	 	 	shall not be altered to the advantage of Optionees except with the prior sanction of a
resolution of the Company or the Listing Vehicle (as the case may be) in general meeting,
provided that no such alteration shall operate to affect adversely the terms of issue of
any Option granted or agreed to be granted prior to such alteration except with the
consent or sanction of such number of Optionees as shall together hold Options in respect
of not less than three-fourths in nominal value of all Shares or shares of the Listing
Vehicle (as the case may be) then subject to Options granted under the Scheme.
	 
	11.	 	TERMINATION
	 
	 	 	The Company or the Listing Vehicle (as the case may be) by resolution in general meeting
or the Board or the board of directors of the Listing Vehicle (as the case may be) may at
any time terminate the operation of the Scheme and in such event no further Options will
be offered but Options granted before the such termination will continue to be effective
in accordance with their terms and conditions and the provisions of this Scheme.
	 
	12.	 	MISCELLANEOUS
	 
	12.1	 	The Company or the Listing Vehicle (as the case may be) shall bear the costs of establishing
and administering the Scheme.
	 
	12.2	 	Any notice or other communication between the Company or the Listing Vehicle (as the case may
be) and a Optionee may be given by sending the same by prepaid post or by personal delivery
to, in the case of the Company or the Listing Vehicle (as the case may be), the address of its
registered office or principal place of business in Hong Kong and, in the case of the
Optionee, his address as notified to the Company from time to time.
	 
	12.3	 	Any notice or other communication served by post:

	 	(a)	 	by the Company or the Listing Vehicle (as the case may be) shall be deemed
to have been served 24 hours after the same was put in the post; and
	 
	 	(b)	 	by the Optionee shall not be deemed to have been received until the same
shall have been received by the Company or the Listing Vehicle (as the case may be).

	12.4	 	A Optionee shall be responsible for obtaining any governmental or other official consent that
may be required by any country or jurisdiction in order to permit the grant or exercise of the
Option. The Company or the Listing Vehicle (as the case may be) shall not be responsible for
any failure by a Optionee to obtain any such consent or for any tax or other liability to
which a Optionee may become subject as a result of his participation in the Scheme.
	 
	12.5	 	The Scheme shall not confer on any person any legal or equitable rights (other than those
constituting the Options themselves) against the Company or the Listing
Vehicle (as the case may be) directly or indirectly or given rise to any case of action at
law or in equity against the Company or the Listing Vehicle (as the case may be).
	 
	12.6	 	The Scheme shall not form part of any contract of employment between the Group Companies and
any Optionee and the right and obligations of any Optionee under the terms of his office or
employment shall not be affected by his participation in it and the Scheme shall afford such a
Optionee no additional rights to compensation or damages in consequence of the termination of
such office or employment for any reason.
	 
	12.7	 	The Scheme and all Options granted hereunder shall be construed and enforced in accordance
with and governed by the laws of Hong Kong, without regard to otherwise applicable
conflict-of-laws principles.

10EX-10.2

Exhibit 10.2

RDA MICROELECTRONICS, INC.

2009 SHARE INCENTIVE PLAN

ARTICLE 1

PURPOSE

     The purpose of the RDA Microelectronics, Inc. 2009 Share Incentive Plan (the “Plan”)
is to promote the success and enhance the value of RDA Microelectronics, Inc., a company formed
under the laws of the Cayman Islands (the “Company”) by linking the personal interests of
the members of the Board, Employees, and Consultants to those of the Company’s shareholders and by
providing such individuals with an incentive for outstanding performance to generate superior
returns to the Company’s shareholders. The Plan is further intended to provide flexibility to the
Company in its ability to motivate, attract, and retain the services of members of the Board,
Employees, and Consultants upon whose judgment, interest, and special effort the successful conduct
of the Company’s operation is largely dependent.

ARTICLE 2

DEFINITIONS AND CONSTRUCTION

     Wherever the following terms are used in the Plan they shall have the meanings specified
below, unless the context clearly indicates otherwise. The singular pronoun shall include the
plural where the context so indicates.

     2.1 “Applicable Laws” means the legal requirements relating to the Plan and the
Awards under applicable provisions of the corporate, securities, tax and other laws, rules,
regulations and government orders, and the rules of any applicable stock exchange or national
market system, of any jurisdiction applicable to Awards granted to residents therein.

     2.2 “Award” means an Option, Restricted Share or Restricted Share Unit award granted
to a Participant pursuant to the Plan.

     2.3 “Award Agreement” means any written agreement, contract, or other instrument or
document evidencing an Award, including through electronic medium.

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

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

     2.6 “Committee” means a committee of the Board described in Article 10.

 

 

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

     2.8 “Corporate Transaction”, unless otherwise defined in an Award Agreement, means
any of the following transactions, provided, however, that the Committee shall determine under
(d) and (e) whether multiple transactions are related, and its determination shall be final,
binding and conclusive:

          (a) an amalgamation, arrangement or consolidation or scheme of arrangement (i) in which the
Company is not the surviving entity, except for a transaction the principal purpose of which is to
change the jurisdiction in which the Company is incorporated or (ii) following which the holders of
the voting securities of the Company do not continue to hold more than 50% of the combined voting
power of the voting securities of the surviving entity;

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

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

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

          (e) acquisition in a single or series of related transactions by any person or related group
of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding securities but
excluding any such transaction or series of related transactions that the Committee determines
shall not be a Corporate Transaction.

     2.9 “Disability”, unless otherwise defined in an Award Agreement, means that the
Participant qualifies to receive long-term disability payments under the Service Recipient’s
long-term disability insurance program, as it may be amended from time to time, to which the
Participant provides services regardless of whether the Participant is covered by such policy.
If the Service Recipient to which the Participant provides service does not have

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a long-term disability plan in place, “Disability” means that a Participant is unable to
carry out the responsibilities and functions of the position held by the Participant by reason of
any medically determinable physical or mental impairment for a period of not less than ninety
(90) consecutive days. A Participant will not be considered to have incurred a Disability unless
he or she furnishes proof of such impairment sufficient to satisfy the Committee in its
discretion.

     2.10 “Effective Date” shall have the meaning set forth in Section 11.1.

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

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

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

          (a) If the Shares are listed on one or more established stock exchanges or national market
systems, including without limitation, The New York Stock Exchange and The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no sales
were reported) as quoted on the principal exchange or system on which the Shares are listed (as
determined by the Committee) on the date of determination (or, if no closing sales price or closing
bid was reported on that date, as applicable, on the last trading date such closing sales price or
closing bid was reported), as reported in The Wall Street Journal or such other source as the
Committee deems reliable;

          (b) If the Shares are regularly quoted on an automated quotation system (including the OTC
Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing
sales price for such shares as quoted on such system or by such securities dealer on the date of
determination, but if selling prices are not reported, the Fair Market Value of a Share shall be
the mean between the high bid and low asked prices for the Shares on the date of determination (or,
if no such prices were reported on that date, on the last date such prices were reported), as
reported in The Wall Street Journal or such other source as the Committee deems reliable; or

          (c) In the absence of an established market for the Shares of the type described in (a) and
(b), above, the Fair Market Value thereof shall be determined by the Committee in good faith and in
its discretion by reference to (i) the placing price of the latest private placement of the Shares
and the development of the Company’s business operations and the general economic and market
conditions since such latest private placement, (ii) other third party transactions involving the
Shares and the development of the Company’s business

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operation and the general economic and market conditions since such sale, (iii) an independent
valuation of the Shares, or (iv) such other methodologies or information as the Committee
determines to be indicative of Fair Market Value, relevant.

     2.14 “Incentive Share Option” means an Option that is intended to meet the
requirements of Section 422 of the Code or any successor provision thereto.

     2.15 “Independent Director” means a member of the Board who is not an Employee of
the Company.

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

     2.17 “Non-Qualified Share Option” means an Option that is not intended to be an
Incentive Share Option.

     2.18 “Option” means a right granted to a Participant pursuant to Article 5 of the
Plan to purchase a specified number of Shares at a specified price during specified time periods.
An Option may be either an Incentive Share Option or a Non-Qualified Share Option.

     2.19 “Participant” means a person who, as a member of the Board, Consultant or
Employee, has been granted an Award pursuant to the Plan.

     2.20 “Parent” means a parent corporation under Section 424(e) of the Code.

     2.21 “Plan” means this RDA Microelectronics, Inc. 2009 Share Incentive Plan, as it
may be amended from time to time.

     2.22 “Related Entity” means any business, corporation, partnership, limited
liability company or other entity in which the Company, a Parent or Subsidiary of the Company
holds a substantial ownership interest, directly or indirectly, but which is not a Subsidiary and
which the Board designates as a Related Entity for purposes of the Plan.

     2.23 “Restricted Share” means a Share awarded to a Participant pursuant to Article 6
that is subject to certain restrictions and may be subject to risk of forfeiture.

     2.24 “Restricted Share Unit” means the right granted to a Participant pursuant to
Article 7 to receive a Share at a future date.

     2.25 “Securities Act” means the Securities Act of 1933 of the United States, as
amended.

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

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     2.27 “Share” means ordinary shares of the Company, and such other securities of the
Company that may be substituted for Shares pursuant to Article 9.

     2.28 “Subsidiary” means any corporation or other entity of which a majority of the
outstanding voting shares or voting power is beneficially owned directly or indirectly by the
Company.

     2.29 “Trading Date” means the closing of the first sale to the general public of the
Shares pursuant to a registration statement filed with and declared effective by the U.S.
Securities and Exchange Commission under the Securities Act.

ARTICLE 3

SHARES SUBJECT TO THE PLAN

     3.1 Number of Shares.

          (a) Subject to the provisions of Article 9 and Section 3.1(b), the maximum aggregate number of
Shares which may be issued pursuant to all Awards (including Incentive Share Options) shall be
30,000,000.

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

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

5

 

ARTICLE 4

ELIGIBILITY AND PARTICIPATION

     4.1 Eligibility. Persons eligible to participate in this Plan include Employees,
Consultants, and all members of the Board, as determined by the Committee.

     4.2 Participation. Subject to the provisions of the Plan, the Committee may, from
time to time, select from among all eligible individuals, those to whom Awards shall be granted
and shall determine the nature and amount of each Award. No individual shall have any right to
be granted an Award pursuant to this Plan.

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

ARTICLE 5

OPTIONS

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

          (a) Exercise Price. The exercise price per Share subject to an Option shall be
determined by the Committee and set forth in the Award Agreement which may be a fixed or variable
price related to the Fair Market Value of the Shares. The exercise price per Share subject to an
Option may be amended or adjusted in the absolute discretion of the Committee, the determination of
which shall be final, binding and conclusive. For the avoidance of doubt, to the extent not
prohibited by Applicable Laws or any exchange rule, a downward adjustment of the exercise prices of
Options mentioned in the preceding sentence shall be effective without the approval of the
Company’s shareholders or the approval of the affected Participants.

          (b) Time and Conditions of Exercise. The Committee shall determine the time or times
at which an Option may be exercised in whole or in part, including exercise prior to vesting;
provided that the term of any Option granted under the Plan shall not exceed ten years, except as
provided in Section 12.1. The Committee shall also determine any conditions, if any, that must be
satisfied before all or part of an Option may be exercised.

6

 

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

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

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

          (a) Expiration of Option. An Incentive Share Option may not be exercised to any
extent by anyone after the first to occur of the following events:

                    (i) Ten years from the date it is granted, unless an earlier time is set in the Award
Agreement;

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

                    (iii) One year after the date of the Participant’s termination of employment or service on
account of Disability or death. Upon the Participant’s Disability or death, any Incentive Share
Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s
legal representative or representatives, by the person or persons entitled to do so pursuant to the
Participant’s last will and testament, or, if the Participant fails to make testamentary
disposition of such Incentive Share Option or dies intestate, by the person or persons entitled to
receive the Incentive Share Option pursuant to the applicable laws of descent and distribution.

7

 

          (b) Individual Dollar Limitation. The aggregate Fair Market Value (determined as of
the time the Option is granted) of all Shares with respect to which Incentive Share Options are
first exercisable by a Participant in any calendar year may not exceed $100,000 or such other
limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent
that Incentive Share Options are first exercisable by a Participant in excess of such limitation,
the excess shall be considered Non-Qualified Share Options.

          (c) Exercise Price. The exercise price of an Incentive Share Option shall be equal to
the Fair Market Value on the date of grant. However, the exercise price of any Incentive Share
Option granted to any individual who, at the date of grant, owns Shares possessing more than ten
percent of the total combined voting power of all classes of shares of the Company may not be less
than 110% of Fair Market Value on the date of grant and such Option may not be exercisable for more
than five years from the date of grant.

          (d) Transfer Restriction. The Participant shall give the Company prompt notice of any
disposition of Shares acquired by exercise of an Incentive Share Option within (i) two years from
the date of grant of such Incentive Share Option or (ii) one year after the transfer of such Shares
to the Participant.

          (e) Expiration of Incentive Share Options. No Award of an Incentive Share Option may
be made pursuant to this Plan after the tenth anniversary of the Effective Date.

          (f) Right to Exercise. During a Participant’s lifetime, an Incentive Share Option may
be exercised only by the Participant.

ARTICLE 6

RESTRICTED SHARES

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

     6.2 Restricted Share Agreement. Each Award of Restricted Shares shall be evidenced
by an Award Agreement that shall specify the period of restriction, the number of Restricted
Shares granted, and such other terms and conditions as the Committee, in its sole discretion,
shall determine. Unless the Committee determines otherwise, Restricted Shares shall be held by
the Company as escrow agent until the restrictions on such Restricted Shares have lapsed.

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

8

 

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

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

     6.6 Removal of Restrictions. Except as otherwise provided in this Article 6,
Restricted Shares granted under the Plan shall be released from escrow as soon as practicable
after the last day of the period of restriction. The Committee, in its discretion, may
accelerate the time at which any restrictions shall lapse or be removed. After the restrictions
have lapsed, the Participant shall be entitled to have any legend or legends under Section 6.5
removed from his or her Share certificate, and the Shares shall be freely transferable by the
Participant, subject to applicable legal restrictions. The Committee (in its discretion) may
establish procedures regarding the release of Shares from escrow and the removal of legends, as
necessary or appropriate to minimize administrative burdens on the Company.

ARTICLE 7

RESTRICTED SHARE UNITS

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

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

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

9

 

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

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

ARTICLE 8

PROVISIONS APPLICABLE TO AWARDS

     8.1 Award Agreement. Awards under the Plan shall be evidenced by Award Agreements
that set forth the terms, conditions and limitations for each Award which may include the term of
an Award, the provisions applicable in the event the Participant’s employment or service
terminates, and the Company’s authority to unilaterally or bilaterally amend, modify, suspend,
cancel or rescind an Award.

     8.2 Limits on Transfer. No right or interest of a Participant in any Award may be
pledged, encumbered, or hypothecated to or in favor of any party other than the Company or a
Subsidiary, or shall be subject to any lien, obligation, or liability of such Participant to any
other party other than the Company or a Subsidiary. Except as otherwise provided by the
Committee, no Award shall be assigned, transferred, or otherwise disposed of by a Participant
other than by will or the laws of descent and distribution. The Committee by express provision
in the Award or an amendment thereto may permit an Award (other than an Incentive Share Option)
to be transferred to, exercised by and paid to certain persons or entities related to the
Participant, including but not limited to members of the Participant’s family, charitable
institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of
the Participant’s family and/or charitable institutions, or to such other persons or entities as
may be expressly approved by the Committee, pursuant to such conditions and procedures as the
Committee may establish. Any permitted transfer shall be subject to the condition that the
Committee receive evidence satisfactory to it that the transfer is being made for estate and/or
tax planning purposes (or to a “blind trust” in connection with the Participant’s termination of
employment or service with the Company or a Subsidiary to assume a position with a governmental,
charitable, educational or similar non-profit institution) and on a basis consistent with the
Company’s lawful issue of securities.

     8.3 Beneficiaries. Notwithstanding Section 8.2, a Participant may, in the manner
determined by the Committee, designate a beneficiary to exercise the rights of the Participant

10

 

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

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

     8.5 Paperless Administration. Subject to Applicable Laws, the Committee may make
Awards, provide applicable disclosure and procedures for exercise of Awards by an internet
website or interactive voice response system for the paperless administration of Awards.

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

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ARTICLE 9

CHANGES IN CAPITAL STRUCTURE

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

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

     9.3 Outstanding Awards — Other Changes. In the event of any other change in the
capitalization of the Company or corporate change other than those specifically referred to in
this Article 9, the Committee may, in its absolute discretion, make such adjustments in the
number and class of shares subject to Awards outstanding on the date on which such change occurs
and in the per share grant or exercise price of each Award as the Committee may consider
appropriate to prevent dilution or enlargement of rights.

     9.4 No Other Rights. Except as expressly provided in the Plan, no Participant shall
have any rights by reason of any subdivision or consolidation of Shares of any class, the payment
of any dividend, any increase or decrease in the number of shares of any class or any
dissolution, liquidation, merger, or consolidation of the Company or any other corporation.
Except as expressly provided in the Plan or pursuant to action of the Committee under the

12

 

Plan, no issuance by the Company of shares of any class, or securities convertible into
            shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect
to, the number of shares subject to an Award or the grant or exercise price of any Award.

ARTICLE 10

ADMINISTRATION

     10.1 Committee. The Plan shall be administered by a committee of one or more
members of the Board (the “Committee”) to whom the Board shall delegate the authority to grant or
amend Awards to Participants other than any of the Committee members. Any grant or amendment of
Awards to any Committee member shall then require an affirmative vote of a majority of the Board
members who are not on the Committee.

     10.2 Action by the Committee. A majority of the Committee shall constitute a
quorum. The acts of a majority of the members present at any meeting at which a quorum is
present, and acts approved in writing by a majority of the Committee in lieu of a meeting, shall
be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith,
rely or act upon any report or other information furnished to that member by any officer or other
employee of the Company or any Subsidiary, the Company’s independent certified public
accountants, or any executive compensation consultant or other professional retained by the
Company to assist in the administration of the Plan.

     10.3 Authority of Committee. Subject to any specific designation in the Plan, the
Committee has the exclusive power, authority and discretion to:

          (a) Designate Participants to receive Awards;

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

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

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

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

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

13

 

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

          (h) Establish, adopt, or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

          (i) Interpret the terms of, and any matter arising pursuant to, the Plan or any Award
Agreement; and

          (j) Make all other decisions and determinations that may be required pursuant to the Plan or
as the Committee deems necessary or advisable to administer the Plan.

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

ARTICLE 11

EFFECTIVE AND EXPIRATION DATE

     11.1 Effective Date. The Plan is effective as of the date the Plan is adopted and
approved by the Board (the “Effective Date”). The Plan will be deemed to be approved by
the shareholders if it receives the affirmative vote of the holders of a majority of the share
capital of the Company present or represented and entitled to vote at a meeting duly held in
accordance with the applicable provisions of the Company’s Memorandum of Association and Articles
of Association.

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

ARTICLE 12

AMENDMENT, MODIFICATION, AND TERMINATION

     12.1 Amendment, Modification, And Termination. With the approval of the Board, at
any time and from time to time, the Committee may terminate, amend or modify the Plan; provided,
however, that (a) to the extent necessary and desirable to comply with Applicable Laws, or stock
exchange rules, the Company shall obtain shareholder approval of any Plan amendment in such a
manner and to such a degree as required, unless the Company decides to follow home country
practice, and (b) unless the Company decides to follow home country practice, shareholder
approval is required for any amendment to the Plan that (i) increases the number of Shares
available under the Plan (other than any adjustment as provided by Article 9), (ii) permits the
Committee to extend the term of the Plan or the exercise period for an Option beyond ten years
from the date of grant, or (iii) results in a material increase in

14

 

benefits or a change in eligibility requirements.

     12.2 Awards Previously Granted. Except with respect to amendments made pursuant to
Section 12.1, no termination, amendment, or modification of the Plan shall adversely affect in
any material way any Award previously granted pursuant to the Plan without the prior written
consent of the Participant.

ARTICLE 13

GENERAL PROVISIONS

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

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

     13.3 Taxes. No Shares shall be delivered under the Plan to any Participant until
such Participant has made arrangements acceptable to the Committee for the satisfaction of any
income and employment tax withholding obligations under Applicable Laws. The Company or any
Subsidiary shall have the authority and the right to deduct or withhold, or require a Participant
to remit to the Company, an amount sufficient to satisfy all applicable taxes (including the
Participant’s payroll tax obligations) required or permitted by law to be withheld with respect
to any taxable event concerning a Participant arising as a result of this Plan. The Committee
may in its discretion and in satisfaction of the foregoing requirement allow a Participant to
elect to have the Company withhold Shares otherwise issuable under an Award (or allow the return
of Shares) having a Fair Market Value equal to the sums required to be withheld. Notwithstanding
any other provision of the Plan, the number of Shares which may be withheld with respect to the
issuance, vesting, exercise or payment of any Award (or which may be repurchased from the
Participant of such Award after such Shares were acquired by the Participant from the Company) in
order to satisfy any income and payroll tax liabilities applicable to the Participant with
respect to the issuance, vesting, exercise or payment of the Award shall, unless specifically
approved by the Committee, be limited to the number of Shares which have a Fair Market Value on
the date of withholding or repurchase equal to the aggregate amount of such liabilities based on
the minimum statutory withholding rates for the applicable income and payroll tax purposes that
are applicable to such supplemental taxable income.

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

     13.5 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for
incentive compensation. With respect to any payments not yet made to a Participant

15

 

pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the
Participant any rights that are greater than those of a general creditor of the Company or any
Subsidiary.

     13.6 Indemnification. To the extent allowable pursuant to applicable law, each
member of the Committee or of the Board shall be indemnified and held harmless by the Company
from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by
such member in connection with or resulting from any claim, action, suit, or proceeding to which
he or she may be a party or in which he or she may be involved by reason of any action or failure
to act pursuant to the Plan and against and from any and all amounts paid by him or her in
satisfaction of judgment in such action, suit, or proceeding against him or her; provided he or
she gives the Company an opportunity, at its own expense, to handle and defend the same before he
or she undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such
persons may be entitled pursuant to the Company’s Memorandum of Association and Articles of
Association, as a matter of law, or otherwise, or any power that the Company may have to
indemnify them or hold them harmless.

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

     13.8 Expenses. The expenses of administering the Plan shall be borne by the Company
and its Subsidiaries.

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

     13.10 Fractional Shares. No fractional Shares shall be issued and the Committee
shall determine, in its discretion, whether cash shall be given in lieu of fractional Shares or
whether such fractional Shares shall be eliminated by rounding up or down as appropriate.

     13.11 Limitations Applicable to Section 16 Persons. Notwithstanding any other
provision of the Plan, the Plan, and any Award granted or awarded to any Participant who is then
subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set
forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any
amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such
exemptive rule. To the extent permitted by the Applicable Laws, the Plan and Awards granted or
awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable
exemptive rule.

     13.12 Government and Other Regulations. The obligation of the Company to make
payment of awards in Share or otherwise shall be subject to all Applicable Laws, and to

16

 

such approvals by government agencies as may be required. The Company shall be under no
obligation to register any of the Shares paid pursuant to the Plan under the Securities Act or
any other similar law in any applicable jurisdiction. If the Shares paid pursuant to the Plan
may in certain circumstances be exempt from registration pursuant to the Securities Actor other
Applicable Laws the Company may restrict the transfer of such shares in such manner as it deems
advisable to ensure the availability of any such exemption.

     13.13 Governing Law. The Plan and all Award Agreements shall be construed in
accordance with and governed by the laws of the Cayman Islands.

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

     13.15 Appendices. The Committee may approve such supplements, amendments or
appendices to the Plan as it may consider necessary or appropriate for purposes of compliance
with applicable laws or otherwise and such supplements, amendments or appendices shall be
considered a part of the Plan; provided, however, that no such supplements shall increase the
share limitation contained in Section 3.1 of the Plan without the approval of the Board.

17

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