Document:

2006 Equity Incentive Plan

 Exhibit 10.1 
 ACORN INTERNATIONAL, INC. 
 2006 EQUITY INCENTIVE PLAN 
 1. PURPOSE OF PLAN 
 The purpose of the Acorn
International, Inc. 2006 Equity Incentive Plan (this “Plan”) is to promote the success of the Corporation and to increase shareholder value by providing an additional means through the grant of awards to attract, motivate, retain
and reward selected employees and other eligible persons of the Company. As used herein, “Corporation” means Acorn International, Inc., an exempted company formed under the laws of the Cayman Islands; “Subsidiary”
means any corporation or other entity a majority of whose outstanding voting share or voting power is beneficially owned directly or indirectly by the Corporation; “Company” means the Corporation and its Subsidiaries, collectively;
and “Board” means the Board of Directors of the Corporation. 
 2. ELIGIBILITY 
 The Administrator (as such term is defined in Section 3.1) may grant awards under this Plan only to those persons that the Administrator determines
to be Eligible Persons. An “Eligible Person” is any person who is either: (a) an officer (whether or not a director) or employee of the Company; (b) a director of the Company; or (c) an individual consultant or
advisor who renders or has rendered bona fide services (other than services in connection with the offering or sale of securities of the Company in a capital-raising transaction or as a market maker or promoter of the Company’s securities) to
the Company and who is selected to participate in this Plan by the Administrator. Notwithstanding the foregoing, a person who is otherwise an Eligible Person under clause (c) above may participate in this Plan only if such participation would
not compromise the Corporation’s ability to rely on Rule 701 to exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), or use Form S-8 to register under the Securities Act, the offering
and sale of ordinary shares issuable under this Plan by the Corporation or the Corporation’s compliance with any other applicable laws. An Eligible Person who has been granted an award (a “participant”) may, if otherwise
eligible, be granted additional awards if the Administrator shall so determine. 
 3. PLAN ADMINISTRATION 
  

	 	3.1	The Administrator. This Plan shall be administered by and all awards under this Plan shall be authorized by the Administrator. The
“Administrator” means the Board or one or more committees appointed by the Board, including the compensation committee, or another committee (within its delegated authority) to administer all or certain aspects of this Plan. Any
such committee shall be comprised solely of one or more directors or such number of directors as may be required under applicable law. A committee may delegate some or all of its authority to another committee so constituted. The Board or a
committee comprised solely of directors may also delegate, to the extent permitted by applicable law, to one or more officers of the Corporation, its powers under this Plan (a) to designate the officers and employees of the Corporation and its

	 	  	Subsidiaries who will receive grants of awards under this Plan, and (b) to determine the number of shares subject to, and the other terms and conditions of, such awards. The
Board may delegate different levels of authority to different committees with administrative and grant authority under this Plan. Unless otherwise provided in the Amended and Restated Memorandum and Articles of Association of the Corporation or the
applicable charter of any Administrator: (a) a majority of the members of the acting Administrator shall constitute a quorum, and (b) the vote of a majority of the members present assuming the presence of a quorum or the unanimous written
consent of the members of the Administrator shall constitute action by the acting Administrator. 

  

	 	  	With respect to awards intended to satisfy the requirements for performance-based compensation under Section 162(m) of the United States Internal Revenue Code of 1986, as
amended (the “Code”), this Plan shall be administered by a committee consisting solely of two or more outside directors (as this requirement is applied under Section 162(m) of the Code); provided, however, that the failure to
satisfy such requirement shall not affect the validity of the action of any committee otherwise duly authorized and acting in the matter. Award grants, and transactions in or involving awards, intended to be exempt under Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), must be duly and timely authorized by the Board or a committee consisting solely of two or more non-employee directors (as this requirement is applied under Rule
16b-3 promulgated under the Exchange Act). To the extent required by any applicable listing agency, this Plan shall be administered by a committee composed entirely of independent directors (within the meaning of the applicable listing agency).

  

	 	3.2	Powers of the Administrator. Subject to the express provisions of this Plan, the Administrator is authorized and empowered to do all things necessary or
desirable in connection with the authorization of awards and the administration of this Plan (in the case of a committee or delegation to one or more officers, within the authority delegated to that committee or person(s)), including, without
limitation, the authority to: 

  

	 	(a)	determine eligibility and, from among those persons determined to be eligible, the particular Eligible Persons who will receive an award under this Plan; 

 

	 	(b)	grant awards to Eligible Persons, determine the price at which securities will be offered or awarded and the number of securities to be offered or awarded to any of such persons,
determine the other specific terms and conditions of such awards consistent with the express limits of this Plan, establish the installments (if any) in which such awards shall become exercisable or shall vest (which may include, without limitation,
performance and/or time-based schedules), or determine that no delayed exercisability or vesting is required, establish any applicable performance targets, and establish the events of termination or reversion of such awards;

  

 2 

	 	(c)	approve the forms of award agreements (which need not be identical either as to type of award or among participants); 

  

	 	(d)	construe and interpret this Plan and any agreements defining the rights and obligations of the Company and participants under this Plan, further define the terms used in this Plan,
and prescribe, amend and rescind rules and regulations relating to the administration of this Plan or the awards granted under this Plan; 

  

	 	(e)	cancel, modify, or waive the Corporation’s rights with respect to, or modify, discontinue, suspend, or terminate any or all outstanding awards, subject to any required consent
under Section 8.6.5; 

  

	 	(f)	accelerate or extend the vesting or exercisability or extend the term of any or all such outstanding awards (in the case of options or share appreciation rights, within the maximum
ten (10) year term of such awards) in such circumstances as the Administrator may deem appropriate (including, without limitation, in connection with a termination of employment or services or other events of a personal nature) subject to any
required consent under Section 8.6.5; 

  

	 	(g)	adjust the number of ordinary shares subject to any award, adjust the price of any or all outstanding awards or otherwise change previously imposed terms and conditions, in such
circumstances as the Administrator may deem appropriate, in each case subject to Sections 4 and 8.6, and provided that in no case (except due to an adjustment contemplated by Section 7 or any repricing that may be approved by shareholders)
shall such an adjustment constitute a repricing (by amendment, cancellation and regrant, exchange or other means) of the per share exercise or base price of any option or share appreciation right to a price that is less than the fair market value of
a ordinary share (as adjusted pursuant to Section 7) on the date of the grant of the initial award; 

  

	 	(h)	determine the date of grant of an award, which may be a designated date after but not before the date of the Administrator’s action (unless otherwise designated by the
Administrator, the date of grant of an award shall be the date upon which the Administrator took the action granting an award); 

  

	 	(i)	determine whether, and the extent to which, adjustments are required pursuant to Section 7 hereof and authorize the termination, conversion, substitution or succession of
awards upon the occurrence of an event of the type described in Section 7; 

  

	 	(j)	acquire or settle (subject to Sections 7 and 8.6) rights under awards in cash, share of equivalent value, or other consideration; and 

  

	 	(k)	determine the fair market value of the Common Shares or awards under this Plan from time to time and/or the manner in which such value will be determined. 

 

 3 

	 	3.3	Binding Determinations. Any action taken by, or inaction of, the Corporation, any Subsidiary, or the Administrator relating or pursuant to this Plan and within
its authority hereunder or under applicable law shall be within the absolute discretion of that entity or body and shall be conclusive and binding upon all persons. Neither the Board nor any Board committee, nor any member thereof or person acting
at the direction thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with this Plan (or any award made under this Plan), and all such persons shall be entitled to
indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under any directors
and officers liability insurance coverage that may be in effect from time to time. 

  

	 	3.4	Reliance on Experts. In making any determination or in taking or not taking any action under this Plan, the Board or a committee, as the case may be, may obtain
and may rely upon the advice of experts, including employees and professional advisors to the Corporation. No director, officer or agent of the Company shall be liable for any such action or determination taken or made or omitted in good faith.

  

	 	3.5	Delegation. The Administrator may delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Company or to third
parties. 

 4. COMMON SHARES SUBJECT TO THE PLAN; SHARE LIMITS 
  

	 	4.1	Shares Available. Subject to the provisions of Section 7.1, the capital share that may be delivered under this Plan shall be the Corporation’s
authorized but unissued Common Shares and any Common Shares held as treasury shares. For purposes of this Plan, “Common Share” shall mean the ordinary share of the Corporation and such other securities or property as may become the
subject of awards under this Plan, or may become subject to such awards, pursuant to an adjustment made under Section 7.1. 

  

	 	4.2	Share Limits. The maximum number of Common Shares that may be delivered pursuant to awards granted to Eligible Persons under this Plan is 24,133,000 (the
“Share Limit”). 

 The following limits also apply with respect to awards granted under this Plan: 

 

	 	(a)	The maximum number of Common Shares that may be delivered pursuant to options qualified as incentive share options granted under this Plan is 24,133,000 Common Shares.

  

	 	(b)	The maximum number of Common Shares subject to those options and share appreciation rights that are granted during any calendar year to any individual under this Plan is 3,500,000
Common Shares. 

 Each of the foregoing numerical limits is subject to adjustment as contemplated by Section 4.3,
Section 7.1, and Section 8.10. 
  

 4 

	 	4.3	Awards Settled in Cash, Reissue of Awards and Shares. To the extent that an award is settled in cash or a form other than Common Shares, the Common Shares that
would have been delivered had there been no such cash or other settlement shall not be counted against the Common Shares available for issuance under this Plan. In the event that Common Shares are delivered in respect of a dividend equivalent, share
appreciation right, or other award, only the actual number of Common Shares delivered with respect to the award shall be counted against the share limits of this Plan. Common Shares that are subject to or underlie awards which expire or for any
reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered under this Plan shall again be available for subsequent awards under this Plan. Common Shares that are exchanged by a participant or
withheld by the Corporation as full or partial payment in connection with any award under this Plan, as well as any Common Shares exchanged by a participant or withheld by the Company to satisfy the tax withholding obligations related to any award
under this Plan, shall be available for subsequent awards under this Plan. Refer to Section 8.10 for application of the foregoing share limits with respect to assumed awards. The foregoing adjustments to the share limits of this Plan are
subject to any applicable limitations under Section 162(m) of the Code with respect to awards intended as performance-based compensation thereunder. 

  

	 	4.4	Reservation of Shares; No Fractional Shares; Minimum Issue. The Corporation shall at all times reserve a number of Common Shares sufficient to
cover the Corporation’s obligations and contingent obligations to deliver Common Shares with respect to awards then outstanding under this Plan (exclusive of any dividend equivalent obligations to the extent the Corporation has the right to
settle such rights in cash). No fractional Common Shares shall be delivered under this Plan. The Administrator may pay cash in lieu of any fractional Common Shares in settlements of awards under this Plan. No fewer than 100 Common Shares may be
purchased on exercise of any award (or, in the case of share appreciation or purchase rights, no fewer than 100 rights may be exercised at any one time) unless the total number purchased or exercised is the total number at the time available for
purchase or exercise under the award. 

 5. AWARDS 
  

	 	5.1	Type and Form of Awards. The Administrator shall determine the type or types of award(s) to be made to each selected Eligible Person. Awards may be granted
singly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any other employee or compensation plan of the Company. The types
of awards that may be granted under this Plan are: 

 5.1.1 Share Options. A share option is the grant of a
right to purchase a specified number of Common Shares during a specified period as determined by the Administrator. An option may be intended as an incentive share option within the meaning of Section 422 of the Code (an “ISO”)
or a nonqualified share option (an option not intended to be an ISO). The award agreement for an option will indicate if the option is intended as an ISO, otherwise it will be deemed to be a 
  

 5 

 nonqualified share option. The maximum term of each option (ISO or nonqualified) shall be ten
(10) years. The per share exercise price for each option shall be not less than 100% of the fair market value of a Common Share on the date of grant of the option, except as follows: (a) in the case of a share option granted retroactively
in tandem with or as a substitution for another award, the per share exercise price may be no lower than the fair market value of a Common Share on the date such other award was granted (to the extent consistent with Sections 422 and 424 of the Code
in the case of options intended as incentive share options); and (b) in any other circumstances, a nonqualified share option may be granted with a per share exercise price that is less than the fair market value of a Common Share on the date of
grant, provided that such exercise price shall not be less than the per share purchase price of the Series A Preferred Share of the Corporation or the par value of a Common Share; and provided further that any shares delivered in respect of such
option shall be charged against the limit of Section 4.2(d) (the limit on full-value awards) as well as any other applicable limit under Section 4.2. When an option is exercised, the exercise price for the shares to be purchased shall be
paid in full in cash or such other method permitted by the Administrator consistent with Section 5.5. 
 5.1.2 Additional
Rules Applicable to ISOs. To the extent that the aggregate fair market value (determined at the time of grant of the applicable option) of Common Share with respect to which ISOs first become exercisable by a participant in any calendar year
exceeds $100,000, taking into account both Common Shares subject to ISOs under this Plan and shares subject to ISOs under all other plans of the Company (or any parent or predecessor corporation to the extent required by and within the meaning of
Section 422 of the Code and the regulations promulgated thereunder), such options shall be treated as nonqualified share options. In reducing the number of options treated as ISOs to meet the $100,000 limit, the most recently granted options
shall be reduced first. To the extent a reduction of simultaneously granted options is necessary to meet the $100,000 limit, the Administrator may, in the manner and to the extent permitted by law, designate which Common Shares are to be treated as
shares acquired pursuant to the exercise of an ISO. ISOs may only be granted to employees of the Corporation or one of its subsidiaries (for this purpose, the term “subsidiary” is used as defined in Section 424(f) of the Code, which
generally requires an unbroken chain of ownership of at least 50% of the total combined voting power of all classes of share of each subsidiary in the chain beginning with the Corporation and ending with the subsidiary in question). There shall be
imposed in any award agreement relating to ISOs such other terms and conditions as from time to time are required in order that the option be an “incentive share option” as that term is defined in Section 422 of the Code. Any
participant who exercises an ISO shall give prompt written notice to the Company of any sale or other transfer of the Common Shares acquired on such exercise if the sale or other transfer occurs within (a) one year after the exercise date of
the Option, or (b) two years after the grant date of the Option. 
 5.1.3 Share Appreciation Rights. A share
appreciation right is a right to receive a payment, in cash and/or Common Share, equal to the excess of the fair market value of a specified number of Common Shares on the date the share 
  

 6 

 appreciation right is exercised over the fair market value of a Common Share on the date the share
appreciation right was granted (the “base price”) as set forth in the applicable award agreement, except as follows: (a) in the case of a share appreciation right granted retroactively in tandem with or as a substitution for another
award, the base price may be no lower than the fair market value of a Common Share on the date such other award was granted; and (b) in any other circumstances, a share appreciation right may be granted with a base price that is less than the
fair market value of a Common Share on the date of grant, provided that any shares delivered in respect of such award shall be charged against the limit of Section 4.2(d) (the limit on full-value awards) as well as any other applicable limit
under Section 4.2. The maximum term of a share appreciation right shall be ten (10) years. The Administrator may grant limited share appreciation rights which are exercisable only upon a change in control or other specified event and may
be payable based on the spread between the base price of the share appreciation right and the fair market value of a Common Share during a specified period or at a specified time within a specified period before, after or including the date of such
event. 
 5.1.4 Other Awards. The other types of awards that may be granted under this Plan include: (a) share
bonuses, restricted share, performance share, share units, phantom share, dividend equivalents, or similar rights to purchase or acquire shares, whether at a fixed or variable price or ratio related to the Common Share, upon the passage of time, the
occurrence of one or more events, or the satisfaction of performance criteria or other conditions, or any combination thereof; (b) any similar securities with a value derived from the value of or related to the Common Share and/or returns
thereon; or (c) cash awards granted consistent with Section 5.2 below. 
  

	 	5.2	Section 162(m) Performance-Based Awards. Without limiting the generality of the foregoing, any of the types of awards listed in Section 5.1.4
above may be, and options and share appreciation rights granted with an exercise or base price not less than the fair market value of a Common Share at the date of grant (“Qualifying Options” and “Qualifying Share
Appreciation Rights,” respectively) typically will be, granted as awards intended to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code (“Performance-Based
Awards”). The grant, vesting, exercisability or payment of Performance-Based Awards may depend (or, in the case of Qualifying Options or Qualifying Share Appreciation Rights, may also depend) on the degree of achievement of one or more
performance goals relative to a pre-established targeted level or level using one or more of the Business Criteria set forth below (on an absolute or relative basis) for the Corporation on a consolidated basis or for one or more of the
Corporation’s subsidiaries, segments, divisions or business units, or any combination of the foregoing. Any Qualifying Option or Qualifying Share Appreciation Right shall be subject only to the requirements of Section 5.2.1 and 5.2.3 in
order for such award to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Award. Any other Performance-Based Award shall be subject to all of the following provisions of this Section 5.2.

  

 7 

 5.2.1 Class; Administrator. The eligible class of persons for
Performance-Based Awards under this Section 5.2 shall be officers and employees of the Company. The Administrator approving Performance-Based Awards or making any certification required pursuant to Section 5.2.4 must be constituted as
provided in Section 3.1 for awards that are intended as performance-based compensation under Section 162(m) of the Code. 
 5.2.2
Performance Goals. The specific performance goals for Performance-Based Awards (other than Qualifying Options and Qualifying Share Appreciation Rights) shall be, on an absolute or relative basis, established based on one or
more of the following business criteria (“Business Criteria”) as selected by the Administrator in its sole discretion: earnings per share, cash flow (which means cash and cash equivalents derived from either net cash flow from
operations or net cash flow from operations, financing and investing activities), total shareholder return, gross revenue, revenue growth, operating income (before or after taxes), net earnings (before or after interest, taxes, depreciation and/or
amortization), return on equity or on assets or on net investment, cost containment or reduction, or any combination thereof. These terms are used as applied under generally accepted accounting principles or in the Company’s financial
reporting. To qualify awards as performance-based under Section 162(m), the applicable Business Criterion (or Business Criteria, as the case may be) and specific performance goal or goals (“targets”) must be established and approved
by the Administrator during the first 90 days of the performance period (and, in the case of performance periods of less than one year, in no event more than 25% of the performance period has elapsed) and while performance relating to such target(s)
remains substantially uncertain within the meaning of Section 162(m) of the Code. Performance targets shall be adjusted to mitigate the unbudgeted impact of material, unusual or nonrecurring gains and losses, accounting changes or other
extraordinary events not foreseen at the time the targets were set unless the Administrator provides otherwise at the time of establishing the targets. The applicable performance measurement period may not be less than three months nor more than 10
years. 
 5.2.3 Form of Payment; Maximum Performance-Based Award. Grants or awards under this Section 5.2 may
be paid in cash or Common Shares or any combination thereof. Grants of Qualifying Options and Qualifying Share Appreciation Rights to any one participant in any one calendar year shall be subject to the limit set forth in Section 4.2(b). The
maximum number of Common Shares which may be delivered pursuant to Performance-Based Awards (other than Qualifying Options and Qualifying Share Appreciation Rights, and other than cash awards covered by the following sentence) that are granted to
any one participant in any one calendar year shall not exceed 3,500,000 Common Shares, either individually or in the aggregate, subject to adjustment as provided in Section 7.1. In addition, the aggregate amount of compensation to be paid to
any one participant in respect of all Performance-Based Awards payable only in cash and not related to Common Shares and granted to that participant in any one calendar year shall not exceed $2,000,000. Awards that are cancelled during the year
shall be counted against these limits to the extent permitted by Section 162(m) of the Code. 
  

 8 

 5.2.4 Certification of Payment. Before any Performance-Based Award under this
Section 5.2 (other than Qualifying Options and Qualifying Share Appreciation Rights) is paid and to the extent required to qualify the award as performance-based compensation within the meaning of Section 162(m) of the Code, the
Administrator must certify in writing that the performance target(s) and any other material terms of the Performance-Based Award were in fact timely satisfied. 
 5.2.5 Reservation of Discretion. The Administrator will have the discretion to determine the restrictions or other limitations of the individual awards granted under this Section 5.2
including the authority to reduce awards, payouts or vesting or to pay no awards, in its sole discretion, if the Administrator preserves such authority at the time of grant by language to this effect in its authorizing resolutions or otherwise.

 5.2.6 Expiration of Grant Authority. As required pursuant to Section 162(m) of the Code and the
regulations promulgated thereunder, the Administrator’s authority to grant new awards that are intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Code (other than Qualifying Options and
Qualifying Share Appreciation Rights) shall terminate upon the first meeting of the Corporation’s shareholders that occurs in the fifth year following the year in which the Corporation’s shareholders first approve this Plan. 
  

	 	5.3	Award Agreements. Each award shall be evidenced by a written award agreement in the form approved by the Administrator and executed on behalf of the Corporation
and, if required by the Administrator, executed by the recipient of the award. The Administrator may authorize any officer of the Corporation (other than the particular award recipient) to execute any or all award agreements on behalf of the
Corporation. The award agreement shall set forth the material terms and conditions of the award as established by the Administrator consistent with the express limitations of this Plan. 

  

	 	5.4	Deferrals and Settlements. Payment of awards may be in the form of cash, Common Share, other awards or combinations thereof as the Administrator shall
determine, and with such restrictions as it may impose. The Administrator may also require or permit participants to elect to defer the issuance of shares or the settlement of awards in cash under such rules and procedures as it may establish under
this Plan. The Administrator may also provide that deferred settlements include the payment or crediting of interest or other earnings on the deferral amounts, or the payment or crediting of dividend equivalents where the deferred amounts are
denominated in shares. 

  

	 	5.5	Consideration for Common Shares or Awards. The purchase price for any award granted under this Plan or the Common Shares to be delivered pursuant to an award,
as applicable, may be paid by means of any lawful consideration as determined by the Administrator, including, without limitation, one or a combination of the following methods: 

  

	 	•	 	services rendered by the recipient of such award; 

  

 9 

	 	•	 	cash, cheque payable to the order of the Corporation, or electronic funds transfer; 

  

	 	•	 	notice and third party payment in such manner as may be authorized by the Administrator; 

  

	 	•	 	the delivery of previously owned Common Shares; 

  

	 	•	 	by a reduction in the number of Common Shares otherwise deliverable pursuant to the award; or 

  

	 	•	 	subject to such procedures as the Administrator may adopt, pursuant to a “cashless exercise” with a third party who provides financing for the purposes of (or who
otherwise facilitates) the purchase or exercise of awards. 

 In no event shall any Common Shares newly-issued by the
Corporation be issued for less than the minimum lawful consideration for such Common Shares or for consideration other than consideration permitted by applicable law. In the event that the Administrator allows a participant to exercise an award by
delivering Common Shares previously owned by such participant and unless otherwise expressly provided by the Administrator, any Common Shares delivered which were initially acquired by the participant from the Corporation (upon exercise of a share
option or otherwise) must have been owned by the participant at least six months as of the date of delivery. Common Shares used to satisfy the exercise price of an option shall be valued at their fair market value on the date of exercise. The
Corporation will not be obligated to deliver any Common Shares unless and until it receives full payment of the exercise or purchase price therefor and any related withholding obligations under Section 8.5 and any other conditions to exercise
or purchase have been satisfied. Unless otherwise expressly provided in the applicable award agreement, the Administrator may at any time eliminate or limit a participant’s ability to pay the purchase or exercise price of any award or Common
Shares by any method other than cash payment to the Corporation. The Administrator may take all actions necessary to alter the method of Option exercise and the exchange and transmittal of proceeds with respect to participants resident in the
People’s Republic of China (“PRC”) not having permanent residence in a country other than the PRC in order to comply with applicable PRC foreign exchange and tax regulations. 
  

	 	5.6	Definition of Fair Market Value. For purposes of this Plan, “fair market value” shall mean, unless otherwise determined or provided by the
Administrator in the circumstances, the last price for a Common Share as furnished by the National Association of Securities Dealers, Inc. (the “NASD”) through the NASDAQ National Market Reporting System (the “National Market”)
for the date in question or, if no sales of Common Shares were reported by the NASD on the National Market on that date, the last price for a Common Share as furnished by the NASD through the National Market for the next preceding day on which sales
of Common Shares were reported by the NASD. The Administrator may, 

  

 10 

 however, provide with respect to one or more awards that the fair market value shall equal the last price
for a Common Share as furnished by the NASD through the National Market on the last trading day preceding the date in question or the average of the high and low trading prices of a Common Share as furnished by the NASD through the National Market
for the date in question or the most recent trading day. If the Common Shares are no longer listed or are no longer actively traded on the National Market as of the applicable date, the fair market value of the Common Shares shall be the value as
reasonably determined by the Administrator for purposes of the award in the circumstances. The Administrator also may adopt a different methodology for determining fair market value with respect to one or more awards if a different methodology is
necessary or advisable to secure any intended favorable tax, legal or other treatment for the particular award(s) (for example, and without limitation, the Administrator may provide that fair market value for purposes of one or more awards will be
based on an average of closing prices (or the average of high and low daily trading prices) for a specified period preceding the relevant date). 
  

	 	5.7	Transfer Restrictions. 

 5.7.1
Limitations on Exercise and Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 5.7, by applicable law and by the award agreement, as the same may be amended, (a) all awards are non-transferable
and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge; (b) awards shall be exercised only by the participant; and (c) amounts payable or shares issuable pursuant to
any award shall be delivered only to (or for the account of) the participant. 
 5.7.2 Exceptions. The Administrator may
permit awards to be exercised by and paid to certain persons or entities related to the participant, including but not limited to members of the participant’s immediate family, trusts or other entities controlled by or whose beneficiaries or
beneficial owners are the participant and/or members of the participant’s immediate family, pursuant to such conditions and procedures, including limitations on subsequent transfers, as the Administrator may establish. Consistent with
Section 8.1, any permitted transfer shall be subject to the condition that the Administrator receive evidence satisfactory to it that the transfer (a) is being made for essentially donative, estate and/or tax planning purposes on a
gratuitous or donative basis and without consideration (other than nominal consideration or in exchange for an interest in a qualified transferee), and (b) will not compromise the Corporation’s ability to rely on Rule 701, or register
Common Shares issuable under this Plan on Form S-8, under the Securities Act. Notwithstanding the foregoing or anything in Section 5.7.3, ISOs and restricted share awards shall be subject to any and all additional transfer restrictions under
the Code to the extent necessary to maintain the intended tax consequences of such awards. 
 5.7.3 Further Exceptions to Limits
on Transfer. The exercise and transfer restrictions in Section 5.7.1 shall not apply to: 
  

	 	(a)	transfers to the Corporation, 

  

 11 

	 	(b)	the designation of a beneficiary to receive benefits in the event of the participant’s death or, if the participant has died, transfers to or exercise by the participant’s
beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent and distribution, 

  

	 	(c)	subject to any applicable limitations on ISOs, transfers to a family member (or former family member) pursuant to a domestic relations order if approved or ratified by the
Administrator, 

  

	 	(d)	if the participant has suffered a disability, permitted transfers or exercises on behalf of the participant by his or her legal representative, or 

  

	 	(e)	the authorization by the Administrator of “cashless exercise” procedures with third parties who provide financing for the purpose of (or who otherwise facilitate) the
exercise of awards consistent with applicable laws and the express authorization of the Administrator. 

  

	 	5.8	International Awards. One or more awards may be granted to Eligible Persons who provide services to the Company outside of the United States. If necessary,
awards granted to such persons may be granted pursuant to the terms and conditions of any applicable sub-plans, if any, appended to this Plan and approved by the Administrator. 

 6. EFFECT OF TERMINATION OF SERVICE ON AWARDS 
  

	 	6.1	General. The Administrator shall establish the effect of a termination of employment or service on the rights and benefits under each award under this Plan and
in so doing may make distinctions based upon, inter alia, the cause of termination and type of award. Notwithstanding the foregoing, unless the Administrator expressly otherwise provides, if the participant is not an employee of the Company and
provides other services to the Company, the Administrator shall be the sole judge for purposes of this Plan (unless a contract or the award otherwise provides) of whether the participant continues to render services to the Company and the date, if
any, upon which such services shall be deemed to have terminated. Unless the Administrator otherwise expressly provides, (1) to the extent an outstanding option granted under this Plan has not become vested and exercisable on the date the
participant’s employment by or service to the Company terminates, the option to the extent unvested and unexercisable shall terminate, and (2) any Common Shares subject to a restricted share award that remain subject to restrictions at the
time the participant’s employment by or service to the Company terminates shall not vest and the Company shall have the right to reacquire any such unvested Common Shares subject to such award in such manner and on such terms as the
Administrator provides, which terms shall include return or repayment of the lower of the Fair Market Value or the original purchase price of the restricted shares, without interest, to the participant to the extent not prohibited by law.

  

	 	6.2	Events Not Deemed Terminations of Service. Unless Company policy or the Administrator otherwise provides, the employment relationship shall not be

  

 12 

 considered terminated in the case of (a) sick leave, (b) military leave, or (c) any other
leave of absence authorized by the Company or the Administrator; provided that unless reemployment upon the expiration of such leave is guaranteed by contract or law, such leave is for a period of not more than 90 days. In the case of any employee
of the Company on an approved leave of absence, continued vesting of the award while on leave from the employ of the Company may be suspended until the employee returns to service, unless the Administrator otherwise provides or applicable law
otherwise requires. In no event shall an award be exercised after the expiration of the term set forth in the award agreement. 
  

	 	6.3	Effect of Change of Subsidiary Status. For purposes of this Plan and any award, if an entity ceases to be a Subsidiary of the Corporation a termination of
employment or service shall be deemed to have occurred with respect to each Eligible Person in respect of such Subsidiary who does not continue as an Eligible Person in respect of another entity within the Company after giving effect to the
Subsidiary’s change in status. 

 7. ADJUSTMENTS; ACCELERATION 
  

	 	7.1	Adjustments. Upon or in contemplation of: any reclassification, recapitalization, share split (including a share split in the form of a share dividend) or
reverse share split (“share split”); any merger, combination, consolidation, or other reorganization; any spin-off, split-up, or similar extraordinary dividend distribution in respect of the Common Share (whether in the form of securities
or property); any exchange of Common Share or other securities of the Corporation, or any similar, unusual or extraordinary corporate transaction in respect of the Common Share; or a sale of all or substantially all the business or assets of the
Corporation as an entirety; then the Administrator shall, in such manner, to such extent (if any) and at such time as it deems appropriate and equitable in the circumstances: 

 (a) proportionately adjust any or all of (1) the number and type of Common Shares (or other securities) that thereafter may be made
the subject of awards (including the specific share limits, maximums and numbers of shares set forth elsewhere in this Plan), (2) the number, amount and type of Common Shares (or other securities or property) subject to any or all outstanding
awards, (3) the grant, purchase, or exercise price (which term includes the base price of any share appreciation right or similar right) of any or all outstanding awards, (4) the securities, cash or other property deliverable upon exercise
or payment of any outstanding awards, or (5) (subject to Sections 7.7 and 8.8.3(a)) the performance standards applicable to any outstanding awards, or 
 (b) make provision for a cash payment or for the assumption, substitution or exchange of any or all outstanding share-based awards or the cash, securities or property deliverable to the holder of any or all
outstanding share-based awards, based upon the distribution or consideration payable to holders of the Common Shares upon or in respect of such event. 
  

 13 

 The Administrator may adopt such valuation methodologies for outstanding awards as it deems reasonable in
the event of a cash or property settlement and, in the case of options, share appreciation rights or similar rights, but without limitation on other methodologies, may base such settlement solely upon the excess if any of the per share amount
payable upon or in respect of such event over the exercise or base price of the award. With respect to any award of an ISO, the Administrator may make such an adjustment that causes the option to cease to qualify as an ISO without the consent of the
affected participant. 
 In any of such events, the Administrator may take such action prior to such event to the extent that the
Administrator deems the action necessary to permit the participant to realize the benefits intended to be conveyed with respect to the underlying shares in the same manner as is or will be available to shareholders generally. In the case of any
share split or reverse share split, if no action is taken by the Administrator, the proportionate adjustments contemplated by clause (a) above shall nevertheless be made. 
  

	 	7.2	Acceleration of Awards. 

 7.2.1
Unless expressly provided in the award agreement or other applicable written agreement with the participant, in the event that the employment or service of a participant to the Company is terminated by the Company for any reason other than for
Cause within twelve (12) months following the occurrence of a Change in Control Event (defined below), the participant shall be entitled to additional vesting of the awards held by the participant immediately prior to the date of such termination
(the “Termination Date”) such that as to any such award, the aggregate portion of such award that shall have vested as of the participant’s Termination Date shall be equal to (a) the portion of the award that would have
become vested as of the Termination Date in accordance with the vesting schedule established for the award pursuant to Section 5.3 hereof plus (b) the portion of the award that was scheduled to become vested on or before the one
(1) year anniversary of the participant’s Termination Date had the participant’s employment or service to the Company not been terminated. For purposes of this Plan, a “Change in Control Event” means any of the
following: 
  

	 	(a)	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (1) the then-outstanding Common Shares of the Corporation (the “Outstanding Company Common Share”) or (2) the
combined voting power of the then-outstanding voting securities of the Corporation entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this
definition, the following acquisitions shall not constitute a Change in Control Event; (A) any acquisition directly from the Corporation, (B) any acquisition by the Corporation, (C) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Corporation or any affiliate of the Corporation or a successor, or (D) any acquisition by any entity pursuant to a transaction that complies with Sections (c)(1), (2) and (3) below;

  

 14 

	 	(b)	Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Corporation’s shareholders, was approved by a vote of at least two-thirds of the directors then
comprising the Incumbent Board (including for these purposes, the new members whose election or nomination was so approved, without counting the member and his predecessor twice) shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; 

  

	 	(c)	Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Corporation or any of its Subsidiaries, a sale or
other disposition of all or substantially all of the assets of the Corporation, or the acquisition of assets or share of another entity by the Corporation or any of its Subsidiaries (each, a “Business Combination”), in each case
unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Shares and the Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding Common Shares and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Corporation or all or substantially all of the Corporation’s assets
directly or through one or more subsidiaries (a “Parent”)) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Shares and the Outstanding Company
Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such Business Combination or a Parent or any employee benefit plan (or related trust) of the Corporation or such entity resulting from such Business
Combination or Parent) beneficially owns, directly or indirectly, 20% or more of, respectively, the then-outstanding Common Shares of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting
securities of such entity, except to the extent that the ownership in excess of 20% existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors or trustees of the entity resulting from such
Business Combination or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 

  

 15 

	 	(d)	Approval by the shareholders of the Corporation of a complete liquidation or dissolution of the Corporation other than in the context of a transaction that does not constitute a
Change in Control Event under clause (c) above. 

 7.2.2 Unless expressly provided in the award agreement or other
applicable written agreement, in the event that a participant who is appointed by the holders of the preferred shares of the Company to serve on the Incumbent Board terminates his service to the Company (other than pursuant to Section 7.2.1),
such participant shall be entitled to additional vesting of the awards held by the participant immediately prior to the Termination Date such that as to any such award, the aggregate portion of such award that shall have vested as of the Termination
Date shall be equal to (a) the portion of the award that would have become vested as of the Termination Date in accordance with the vesting schedule established for the award pursuant to Section 5.3 hereof plus (b) the portion of the
award that is unvested as of the Termination Date. 
  

	 	7.3	Early Termination of Awards. Any award that has been accelerated as required or contemplated by Section 7.2.1 (or would have been so accelerated but for
Section 7.4, 7.5 or 7.6) shall terminate upon the related event referred to in Section 7.2.1, as applicable, subject to any provision that has been expressly made by the Administrator, through a plan of reorganization or otherwise, for the
survival, substitution, assumption, exchange or other continuation or settlement of such award and provided that, in the case of options and share appreciation rights that will not survive, be substituted for, assumed, exchanged, or otherwise
continued or settled in the transaction, the holder of such award shall be given reasonable advance notice of the impending termination and a reasonable opportunity to exercise his or her outstanding options and share appreciation rights in
accordance with their terms before the termination of such awards (except that in no case shall more than ten days’ notice of accelerated vesting and the impending termination be required and any acceleration may be made contingent upon the
actual occurrence of the event). 

  

	 	7.4	Other Acceleration Rules. Any acceleration of awards pursuant to this Section 7 shall comply with applicable legal requirements and, if necessary to
accomplish the purposes of the acceleration or if the circumstances require, may be deemed by the Administrator to occur a limited period of time not greater than 30 days before the event. Without limiting the generality of the foregoing, the
Administrator may deem an acceleration to occur immediately prior to the applicable event and/or reinstate the original terms of an award if an event giving rise to an acceleration does not occur. The Administrator may override the provisions of
Section 7.2, 7.3, and/or 7.5 by express provision in the award agreement and may accord any Eligible Person a right to refuse any acceleration, whether pursuant to the award agreement or otherwise, in such circumstances as the Administrator may
approve; provided that except in order to comply with applicable legal requirements, the Administrator may not override any provision if such action would adversely affect a recipient of a previously granted award 

  

 16 

 with respect to such previously granted award. The portion of any ISO accelerated in connection with a
Change in Control Event or any other action permitted hereunder shall remain exercisable as an ISO only to the extent the applicable $100,000 limitation on ISOs is not exceeded. To the extent exceeded, the accelerated portion of the option shall be
exercisable as a nonqualified share option under the Code. 
  

	 	7.5	Possible Rescission of Acceleration. If the vesting of an award has been accelerated expressly in anticipation of an event or upon shareholder approval of an
event and the Administrator later determines that the event will not occur, the Administrator may rescind the effect of the acceleration as to any then outstanding and unexercised or otherwise unvested awards. 

  

	 	7.6	Golden Parachute Limitation. Notwithstanding anything else contained in this Section 7 to the contrary, in no event shall an award be accelerated under
this Plan to an extent or in a manner which would not be fully deductible by the Company for federal income tax purposes because of Section 280G of the Code, nor shall any payment hereunder be accelerated to the extent any portion of such
accelerated payment would not be deductible by the Company because of Section 280G of the Code. If a participant would be entitled to benefits or payments hereunder and under any other plan or program that would constitute “parachute
payments” as defined in Section 280G of the Code, then the participant may by written notice to the Company designate the order in which such parachute payments will be reduced or modified so that the Company is not denied federal income
tax deductions for any “parachute payments” because of Section 280G of the Code. Notwithstanding the foregoing, an employment or other agreement with the participant may expressly provide for benefits in excess of amounts determined
by applying the foregoing Section 280G limitations. 

  

	 	7.7	Section 162(m) Limitations. To the extent limited by Section 162(m) of the Code in the case of an award intended as performance-based compensation
thereunder and necessary to assure the deductibility of the compensation payable under the award, the Administrator shall have no discretion under this Plan (a) to increase the amount of compensation or the number of shares that would otherwise
be due upon the attainment of the applicable performance target or the exercise of the option or SAR, or (b) to waive the achievement of any applicable performance goal as a condition to receiving a benefit or right under the award.

 8. OTHER PROVISIONS 
  

	 	8.1	Compliance with Laws. This Plan, the granting and vesting of awards under this Plan, the offer, issuance and delivery of Common Shares, the acceptance of
promissory notes and/or the payment of money under this Plan or under awards are subject to compliance with all applicable federal and state laws, applicable foreign laws, rules and regulations (including but not limited to state and federal
securities law, federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. The person acquiring any
securities under this Plan will, if requested by the Company, 

  

 17 

 provide such assurances and representations to the Company as the Administrator may deem necessary or
desirable to assure compliance with all applicable legal and accounting requirements. 
  

	 	8.2	Employment Status. No person shall have any claim or rights to be granted an award (or additional awards, as the case may be) under this Plan, subject to any
express contractual rights (set forth in a document other than this Plan) to the contrary. 

  

	 	8.3	No Employment/Service Contract. Nothing contained in this Plan (or in any other documents under this Plan or in any award) shall confer upon any Eligible Person
or other participant any right to continue in the employ or other service of the Company, constitute any contract or agreement of employment or other service or affect an employee’s status as an employee at will, nor shall interfere in any way
with the right of the Company to change a person’s compensation or other benefits, or to terminate his or her employment or other service, with or without cause. Nothing in this Section 8.3, however, is intended to adversely affect any
express independent right of such person under a separate employment or service contract other than an award agreement. 

  

	 	8.4	Plan Not Funded. Awards payable under this Plan shall be payable in shares or from the general assets of the Corporation, and no special or separate reserve,
fund or deposit shall be made to assure payment of such awards. No participant, beneficiary or other person shall have any right, title or interest in any fund or in any specific asset (including Common Shares, except as expressly otherwise
provided) of the Company by reason of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be
construed to create, a trust of any kind or a fiduciary relationship between the Company and any participant, beneficiary or other person. To the extent that a participant, beneficiary or other person acquires a right to receive payment pursuant to
any award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company. 

  

	 	8.5	Tax Withholding. Upon any exercise, vesting, or payment of any award or upon the disposition of Common Shares acquired pursuant to the exercise of an ISO prior
to satisfaction of the holding period requirements of Section 422 of the Code, the Company shall have the right at its option to: 

  

	 	(a)	require the participant (or the participant’s personal representative or beneficiary, as the case may be) to pay or provide for payment of at least the minimum amount of any
taxes which the Company may be required to withhold with respect to such award event or payment; 

  

	 	(b)	deduct from any amount otherwise payable in cash to the participant (or the participant’s personal representative or beneficiary, as the case may be) the minimum amount of any
taxes which the Company may be required to withhold with respect to such cash payment; or 

  

 18 

	 	(c)	reduce the number of Common Shares to be delivered by (or otherwise reacquire shares held by the participant at least 6 months) the appropriate number of Common Shares, valued at
their then fair market value, to satisfy the minimum withholding obligation. 

 In any case where a tax is required to be
withheld (including taxes in the PRC where applicable) in connection with the delivery of Common Shares under this Plan (including the sale of Common Shares as may be required to comply with foreign exchange rules in the PRC for participants
resident in the PRC), the Administrator may in its sole discretion (subject to Section 8.1) grant (either at the time of the award or thereafter) to the participant the right to elect, pursuant to such rules and subject to such conditions as
the Administrator may establish, to have the Corporation reduce the number of Common Shares to be delivered by (or otherwise reacquire) the appropriate number of Common Shares, valued in a consistent manner at their fair market value or at the sales
price in accordance with authorized procedures for cashless exercises, necessary to satisfy the minimum applicable withholding obligation on exercise, vesting or payment. In no event shall the Common Shares withheld exceed the minimum whole number
of Common Shares required for tax withholding under applicable law. The Corporation may, with the Administrator’s approval, accept one or more promissory notes from any Eligible Person in connection with taxes required to be withheld upon the
exercise, vesting or payment of any award under this Plan; provided that any such note shall be subject to terms and conditions established by the Administrator and the requirements of applicable law. 
  

	 	8.6	Effective Date, Termination and Suspension, Amendments. 

 8.6.1 Effective Date. This Plan is effective as of May 1, 2006, the date of its approval by the Board (the “Effective Date”). This Plan shall be submitted for and subject to
shareholder approval no later than twelve months after the Effective Date. Unless earlier terminated by the Board, this Plan shall terminate at the close of business on the day before the tenth anniversary of the Effective Date. After the
termination of this Plan either upon such stated expiration date or its earlier termination by the Board, no additional awards may be granted under this Plan, but previously granted awards (and the authority of the Administrator with respect
thereto, including the authority to amend such awards) shall remain outstanding in accordance with their applicable terms and conditions and the terms and conditions of this Plan. 
 8.6.2 Board Authorization. The Board may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole
or in part. No awards may be granted during any period that the Board suspends this Plan. 
 8.6.3 Shareholder Approval.
To the extent then required by applicable law or any applicable listing agency or required under Sections 162, 422 or 424 of the Code to preserve the intended tax consequences of this Plan, or deemed necessary or advisable by the Board, any
amendment to this Plan shall be subject to shareholder approval. 
  

 19 

 8.6.4 Amendments to Awards. Without limiting any other express authority of the
Administrator under (but subject to) the express limits of this Plan, the Administrator by agreement or resolution may waive conditions of or limitations on awards to participants that the Administrator in the prior exercise of its discretion has
imposed, without the consent of a participant, and (subject to the requirements of Sections 3.2 and 8.6.5) may make other changes to the terms and conditions of awards. Any amendment or other action that would constitute a repricing of an award is
subject to the limitations set forth in Section 3.2(g). 
 8.6.5 Limitations on Amendments to Plan and Awards. No
amendment, suspension or termination of this Plan or change of or affecting any outstanding award shall, without written consent of the participant, affect in any manner materially adverse to the participant any rights or benefits of the participant
or obligations of the Company under any award granted under this Plan prior to the effective date of such change. Changes, settlements and other actions contemplated by Section 7 shall not be deemed to constitute changes or amendments for
purposes of this Section 8.6. 
  

	 	8.7	Privileges of Share Ownership. Except as otherwise expressly authorized by the Administrator or this Plan, a participant shall not be entitled to any privilege
of share ownership as to any Common Shares not actually delivered to and held of record by the participant. No adjustment will be made for dividends or other rights as a shareholder for which a record date is prior to such date of delivery.

  

	 	8.8	Governing Law; Construction; Severability. 

 8.8.1 Choice of Law. This Plan, the awards, all documents evidencing awards and all other related documents shall be governed by, and construed in accordance with the laws of the Cayman Islands. 
 8.8.2 Severability. If a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of
this Plan shall continue in effect. 
 8.8.3 Plan Construction. 
  

	 	(a)	Rule 16b-3. It is the intent of the Corporation that the awards and transactions permitted by awards be interpreted in a manner that, in the case of participants who are or
may be subject to Section 16 of the Exchange Act, qualify, to the maximum extent compatible with the express terms of the award, for exemption from matching liability under Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the
foregoing, the Corporation shall have no liability to any participant for Section 16 consequences of awards or events under awards if an award or event does not so qualify. 

  

	 	(b)	Section 162(m). Options and SARs granted to employees of the Corporation or one of its Subsidiaries with an exercise or base price not less than the fair market value of
a share of Common Stock at the date of grant that are approved by a committee 

  

 20 

 composed solely of two or more outside directors (as this requirement is applied under
Section 162(m) of the Code) shall be deemed to be intended as performance-based compensation within the meaning of Section 162(m) of the Code unless such committee provides otherwise at the time of grant of the award. It is the further
intent of the Corporation that (to the extent the Corporation or one of its Subsidiaries or awards under this Plan may be or become subject to limitations on deductibility under Section 162(m) of the Code) any such awards that are granted to or
held by a person subject to Section 162(m) will qualify as performance-based compensation or otherwise be exempt from deductibility limitations under Section 162(m). 
  

	 	8.9	Captions. Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not
be deemed in any way material or relevant to the construction or interpretation of this Plan or any provision thereof. 

  

	 	8.10	Share-Based Awards in Substitution for Share Options or Awards Granted by Other Corporation. Awards may be granted to Eligible Persons under this Plan in
substitution for or in connection with an assumption of employee share options, share appreciation rights, restricted share or other share-based awards granted by other entities to persons who are or who will become Eligible Persons in respect of
the Company, in connection with a distribution, merger or other reorganization by or with the granting entity or an affiliated entity, or the acquisition by the Company, directly or indirectly, of all or a substantial part of the share or assets of
the employing entity. The awards so granted need not comply with other specific terms of this Plan, provided the awards reflect only adjustments giving effect to the assumption or substitution consistent with the conversion applicable to the Common
Share in the transaction and any change in the issuer of the security. Any Common Shares that are delivered and any awards that are granted by, or become obligations of, the Corporation, as a result of the assumption by the Corporation of, or in
substitution for, outstanding awards previously granted by an acquired company (or previously granted by a predecessor employer (or direct or indirect parent thereof) in the case of persons that become employed by the Company in connection with a
business or asset acquisition or similar transaction) shall not be counted against the Share Limit or other limits on the number of shares available for issuance under this Plan. 

  

	 	8.11	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the authority of the Board or the Administrator to grant awards or authorize any
other compensation, with or without reference to the Common Share, under any other plan or authority. 

  

	 	8.12	No Corporate Action Restriction. The existence of this Plan, the award agreements and the awards granted hereunder shall not limit, affect or restrict in any
way the right or power of the Board or the shareholders of the Corporation to make or authorize: (a) any adjustment, recapitalization, reorganization or other change in the capital structure or business of the Corporation or any subsidiary,

  

 21 

 (b) any merger, amalgamation, consolidation or change in the ownership of the Corporation or any
subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference share ahead of or affecting the capital share (or the rights thereof) of the Corporation or any subsidiary, (d) any dissolution or liquidation of the
Corporation or any subsidiary, (e) any sale or transfer of all or any part of the assets or business of the Corporation or any subsidiary, or (f) any other corporate act or proceeding by the Corporation or any subsidiary. No participant,
beneficiary or any other person shall have any claim under any award or award agreement against any member of the Board or the Administrator, or the Corporation or any employees, officers or agents of the Corporation or any subsidiary, as a result
of any such action. 
  

	 	8.13	Other Company Benefit and Compensation Programs. Payments and other benefits received by a participant under an award made pursuant to this Plan shall not be
deemed a part of a participant’s compensation for purposes of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the Corporation or any subsidiary, except where the Administrator
expressly otherwise provides or authorizes in writing. Awards under this Plan may be made in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments under any other plans or arrangements of the Corporation
or its subsidiaries. 

  

 22Forms of option grant agreements and form of SARs Award Agreement

 Exhibit 10.2 
 CHINA DRTV, INC. 
 2005 SHARE INCENTIVE PLAN 
 EMPLOYEE SHARE OPTION AGREEMENT 
 THIS EMPLOYEE SHARE OPTION AGREEMENT (this “Option Agreement”) dated
                                 by and between China DRTV, Inc., an
international business company formed under the laws of the British Virgin Islands (the “Corporation”), and
                                        
(the “Grantee”) evidences the share option (the “Option”) granted by the Corporation to the Grantee as to the number of the Corporation’s ordinary shares (“Common Shares”) first set forth
below. 
  

													
	 	 	  	  	  	  	  	  	  	  	  	 	  
	  	 	Number of Common Shares:1	  	  	  	 	  	Award Date:	  	  	 	  
	 	 		  		  		  		  		 	 
	 	 	Exercise Price per Common Share:1	  	$            	  		  	Expiration Date:1,2	  	  	 	 
	 	 		  		  		  		  		 	 
	 	 	 Type of Option (check one):
	  	 Nonqualified Option
                            [           
 ]
	  		 	 
	 				 
	 	 		  	 Incentive Stock Option
                        [            ]
	  		 	 
	 	 
	 	 	 Vesting1,2 The Option shall become vested as to 25% of the total number of Common Shares subject to the Option on the Award Date. The
remaining 75% of the total number of Common Shares subject to the Option shall vest in 36 substantially equal monthly installments, with the first installment vesting on the last day of the month in which the Award Date occurs and an additional
installment vesting on the last day of each of the 35 months thereafter.
  

 The Option is granted under the China DRTV, Inc. 2005 Share Incentive Plan (the
“Plan”) and subject to the Terms and Conditions of Employee Share Option (the “Terms”) attached to this Option Agreement (incorporated herein by this reference) and to the Plan. The Option has been granted to the
Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. Capitalized terms are defined in the Plan if not defined herein. The parties agree to the terms of the Option set forth
herein. The Grantee acknowledges receipt of a copy of the Terms and the Plan, specifically acknowledges and agrees to Section 14 of the Terms, and agrees to maintain in confidence all information provided to him/her in connection with the
Option. 
  

					
	“GRANTEE”	 		  	CHINA DRTV, INC.
	  	 	 	  	 
	Signature	 		  	By:                                      
                                        
                                    
	  	 		  	
	Print Name	 		  	
		 		  	Print
Name:                                       
                                        
                   
		 		  	
	  	 		  	Title:                                     
                                        
                                  
	Address	 		  	

  

	1	Subject to adjustment under Section 7.1 of the Plan. 

	2	Subject to early termination under Section 4 of the Terms and Section 7.3 of the Plan. 

 CONSENT OF SPOUSE 
 (optional) 
 In consideration of the Corporation’s execution of this Option Agreement, the undersigned
spouse of the Grantee agrees to be bound by all of the terms and provisions hereof and of the Plan. 
  

							
	  	 		 	  	  	
	Signature of Spouse	 		 	Date	  	

 TERMS AND CONDITIONS OF EMPLOYEE SHARE OPTION 
  

	1.	Vesting; Limits on Exercise. 

 The Option
shall vest and become exercisable in percentage installments of the aggregate number of Common Shares subject to the Option as set forth on the cover page of this Option Agreement. The Option may be exercised only to the extent the Option is vested
and exercisable. 
  

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Grantee has the right to exercise the Option (to the extent not previously exercised),
and such right shall continue, until the expiration or earlier termination of the Option. 

  

	 	•	 	No Fractional Shares. Fractional Common Share interests shall be disregarded, but may be cumulated subject to the Plan. 

  

	 	•	 	Minimum Exercise. No fewer than 100 Common Shares (subject to adjustment under Section 7.1 of the Plan) may be purchased at any one time, unless the number purchased is
the total number at the time exercisable under the Option. 

  

	 	•	 	ISO Value Limit. If the Option is designated as an Incentive Stock Option (an “ISO”), as indicated on the cover page of this Option Agreement, and if the
aggregate fair market value of the shares with respect to which ISOs (whether granted under the Option or otherwise) first become exercisable by the Grantee in any calendar year exceeds $100,000, as measured on the applicable Award Dates, the
limitations of Section 5.1.2 of the Plan shall apply and to such extent the Option will be rendered a Nonqualified Option. 

  

	2.	Continuance of Employment/Service Required; No Employment/Service Commitment. 

 The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable
installment of the Option and the rights and benefits under this Option Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or
mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 4 below or under the Plan. 
 Nothing contained in this Option Agreement or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an
employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any
Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Grantee’s other compensation. 
  

 1 

	3.	Method of Exercise of Option. 

 The Option
shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Committee may require pursuant to such administrative exercise procedures as the Committee may implement from time to time) of: 
  

	 	•	 	an executed Option Exercise and Common Share Purchase Agreement (stating the number of Common Shares to be purchased pursuant to the Option) in substantially the form attached
hereto as Exhibit A or such other form as the Administrator may require from time to time (the “Exercise Agreement”); 

  

	 	•	 	payment in full for the Exercise Price of the shares to be purchased, in cash or by electronic funds transfer to the Corporation, or by certified or cashier’s check payable to
the order of the Corporation subject to such specific procedures or directions as the Administrator may establish; 

  

	 	•	 	any written statements or agreements required pursuant to Section 8.1 of the Plan; and 

  

	 	•	 	satisfaction of the tax withholding provisions of Section 8.5 of the Plan. 

 The Administrator also may, but is not required to, authorize a non-cash payment alternative specified below at or prior to the time of exercise. In which case, the Exercise Price and/or applicable withholding taxes, to the extent so
authorized, may be paid in full or in part by delivery to the Corporation of: 
  

	 	•	 	Common Shares already owned by the Grantee, valued at their Fair Market Value on the exercise date, provided, however, that any shares acquired directly from the
Corporation (upon exercise of an option or otherwise) must have been owned by the Grantee for at least six (6) months before the date of such exercise; and/or 

  

	 	•	 	if the Common Shares are then registered under the Exchange Act and listed or quoted on a recognized national securities exchange or in the NASDAQ National Market Quotation System,
irrevocable instructions to a broker to, upon exercise of the Option, promptly sell a sufficient number of Common Shares acquired upon exercise of the Option and deliver to the Corporation the amount necessary to pay the Exercise Price (and, if
applicable, the amount of any related tax withholding obligations). 

 An Option will qualify as an ISO only if it meets all of the applicable
requirements of the Code. If the Option is designated as an ISO, the Option may be rendered a Nonqualified Option if the Administrator permits the use of one or more of the non-cash payment alternatives referenced above. 
  

 2 

	4.	Early Termination of Option. 

 4.1 Possible Termination of Option upon Change in Control. The Option is subject to termination in connection with a Change in Control Event or certain similar reorganization events as provided in Section 7.3 of the Plan.

 4.2 Termination of Option upon a Termination of Grantee’s Employment or Services. Subject to earlier termination on the
Expiration Date of the Option or pursuant to Section 4.1 above, if the Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary (other than in the capacity as a member of the board of directors of the
Corporation as provided below), the following rules shall apply (the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary is referred to as the Grantee’s “Severance Date”):

  

	 	•	 	other than as expressly provided below in this Section 4.2, (a) the Grantee will have until the date that is 30 days after his or her Severance Date to exercise the Option
(or portion thereof) to the extent that it was vested on the Severance Date, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option, to the extent exercisable for the
30-day period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 30-day period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s voluntary Retirement (as defined below and other than a termination by the Corporation or a
Subsidiary for cause as provided below), then (a) the Grantee will have until the date that is 3 years after his or her Severance Date to exercise the Option (or portion thereof) to the extent that it was vested on the Severance Date,
(b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option, to the extent exercisable for the 3-year period following the Severance Date and not exercised during such period,
shall terminate at the close of business on the last day of the 3-year period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s death or Disability (as defined below), then (a) the Grantee (or his beneficiary or
personal representative, as the case may be) will have until the date that is 3 years after the Grantee’s Severance Date to exercise the Option, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the
Severance Date, and (c) the Option, to the extent exercisable for the 3-year period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 3-year period;

  

	 	•	 	if the termination of the Grantee’s employment is the result of a termination by the Corporation or a Subsidiary for Cause (as defined below), the Option (whether vested or
not) shall terminate on the Severance Date. 

 In the event a Grantee who is appointed by the holders of the preferred shares of the
Corporation to serve on the board of directors of the Corporation (the “Board”) terminates his 
  

 3 

 service to the Corporation (other than in connection with a Change in Control Event or certain similar reorganization
events), the Option shall not be subject to Section 4.2 herein but shall be subject to accelerated vesting in accordance with Section 7.2.2 of the Plan. 
 For purposes of the Option, “Disability” means a permanent disability (within the meaning of Section 22(e)(3) of the Code or as otherwise determined by the Administrator). For purposes of the Option,
“Retirement” means a termination of employment by the Grantee that occurs upon or after the Grantee’s attainment of age 65 and in accordance with the retirement policies of the Corporation (or the Subsidiary that employs the Grantee)
then in effect. For purposes of the Option, “Cause” means that the Grantee: (a) has been repeatedly negligent in the discharge of his or her duties to the Corporation or a Subsidiary or has refused to perform stated or assigned duties
(other than by reason of a disability or analogous condition); (b) has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of confidentiality, an unauthorized disclosure or use of inside information,
customer lists, trade secrets or other confidential information; (c) has breached a fiduciary duty, or violated any other duty, law, rule, regulation or policy of the company or an affiliate; (d) has been convicted of, or plead guilty or
nolo contendere to, a felony or misdemeanor (other than minor traffic violations or similar offenses); (e) has materially breached any of the provisions of any agreement with the Corporation or a Subsidiary; (f) has engaged in unfair
competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of, the Corporation or a Subsidiary; or has improperly induced a vendor or customer to break or terminate any contract with the
Corporation or a Subsidiary or induced a principal for whom the Corporation or a Subsidiary acts as agent to terminate such agency relationship. 
 In all events the Option is subject to earlier termination on the Expiration Date of the Option or as contemplated by Section 4.1. The Administrator shall be the sole judge of whether the Grantee continues to render employment or
services for purposes of this Option Agreement. 
  

	5.	Non-Transferability. 

 The Option and any
other rights of the Grantee under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set forth in Section 5.7 of the Plan. Any Common Shares issued on exercise of the Option are subject to
substantial restrictions on transfer, and are subject to other rights in favor of the Corporation as set forth herein and in the Exercise Agreement. 
  

	6.	Securities Law Compliance. 

 The Grantee
acknowledges that the Option and the Common Shares are not being registered under the Securities Act, based, in part, in reliance upon an exemption from registration under Securities and Exchange Commission Rule 701 promulgated under the Securities
Act of 1933, and a comparable exemption from qualification under applicable state securities laws, as each may be amended from time to time. The Grantee, by executing this Option Agreement, hereby makes the following representations to the
Corporation and acknowledges that the Corporation’s reliance on federal and state securities law exemptions from registration and qualification is predicated, in substantial part, upon the accuracy of these representations: 
  

	 	•	 	The Grantee is acquiring the Option and, if and when he/she exercises the Option, will acquire the Common Shares solely for the Grantee’s own account, for investment purposes
only, and not with a view to or an intent to sell, or to offer for resale in connection with any unregistered distribution, all or any portion of the Common Shares within the meaning of the Securities Act, or other applicable state securities laws.

  

 4 

	 	•	 	The Grantee has had an opportunity to ask questions and receive answers from the Corporation regarding the terms and conditions of the Option and the restrictions imposed on any
Common Shares purchased upon exercise of the Option. The Grantee has been furnished with, and/or has access to, such information as he or she considers necessary or appropriate for deciding whether to exercise the Option and purchase Common Shares.
However, in evaluating the merits and risks of an investment in the Common Shares, the Grantee has and will rely upon the advice of his/her own legal counsel, tax advisors, and/or investment advisors. 

  

	 	•	 	The Grantee is aware that the Option may be of no practical value, that any value it may have depends on its vesting and exercisability as well as an increase in the Fair Market
Value of the underlying Common Shares to an amount in excess of the Exercise Price, and that any investment in common shares of a closely held corporation such as the Corporation is non-marketable, non-transferable and could require capital to be
invested for an indefinite period of time, possibly without return, and at substantial risk of loss. 

  

	 	•	 	The Grantee understands that any Common Shares acquired on exercise of the Option will be characterized as “restricted securities” under the federal securities laws, and
that, under such laws and applicable regulations, such securities may be resold without registration under the Securities Act only in certain limited circumstances, including in accordance with the conditions of Rule 144 promulgated under the
Securities Act, as presently in effect, with which the Grantee is familiar. 

  

	 	•	 	The Grantee has read and understands the restrictions and limitations set forth in the Plan, this Option Agreement (including these Terms), which are imposed on the Option and any
Common Shares which may be acquired upon exercise of the Option. 

  

	 	•	 	At no time was an oral representation made to the Grantee relating to the Option or the purchase of Common Shares and the Grantee was not presented with or solicited by any
promotional meeting or material relating to the Option or the Common Share. 

  

	7.	Lock-Up Agreement. 

 Grantee may not (nor may
any permitted transferee), directly or indirectly, offer, sell or transfer or dispose of any of the Common Shares acquired upon exercise of the Option or any interest therein (or agree to do any thereof) (collectively, a “Transfer”)
during the period commencing as of 14 days prior to and ending one year, or such lesser period of time as the relevant underwriters may permit, after the effective date of a registration statement covering any public offering of the
Corporation’s securities of which the Grantee has notice (The term 
  

 5 

 “Grantee” includes, where the context so requires, any permitted direct or indirect transferee of the Grantee.)
The Grantee shall agree and consent to the entry of stop transfer instructions with the Corporation’s transfer agent against the Transfer of the Corporation’s securities beneficially owned by the Grantee and shall conform the limitations
hereunder by agreement with and for the benefit of the relevant underwriters by a lock-up agreement or other agreement in customary form. Notwithstanding anything else herein to the contrary, this Section 7 shall not be construed so as to
prohibit the Grantee from participating in a registration or a public offering of the Common Shares with respect to any shares which he or she may hold at that time, provided, however, that such participation shall be at the sole discretion of the
Board. 
  

	8.	Notices. 

 Any notice to be given under the
terms of this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such
other address as either party may hereafter designate in writing to the other. Any such notice shall be given only when received, but if the Grantee is no longer employed by the Corporation or a Subsidiary, shall be deemed to have been duly given
five business days after the date mailed in accordance with the foregoing provisions of this Section 8. 
  

	9.	Plan. 

 The Option and all rights of the
Grantee under this Option Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by this reference. In the event of a conflict or inconsistency between the terms and
conditions of this Option Agreement and of the Plan, the terms and conditions of the Plan shall govern. The Grantee agrees to be bound by the terms of the Plan and this Option Agreement (including these Terms). The Grantee acknowledges having read
and understanding the Plan and this Option Agreement. Unless otherwise expressly provided in other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not and shall not
be deemed to create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the
Plan after the date hereof. 
  

	10.	Entire Agreement. 

 This Option Agreement
(including these Terms) and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Option Agreement
may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely
affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
  

 6 

	11.	Governing Law; Limited Rights; Severability. 

 11.1 British Virgin Islands Laws; Construction. This Option Agreement and the Exercise Agreement shall be governed by and construed and enforced in accordance with the laws of the British Virgin Islands without regard to conflict of
law principles thereunder. The terms of the Option grant have resulted from the negotiations of the parties and each of the parties has had an opportunity to obtain and consult with its own counsel. The language of all parts of the Plan, this Option
Agreement (including these Terms) and the Exercise Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the parties. 
 11.2 Limited Rights. The Grantee has no rights as a shareholder of the Corporation with respect to the Option as set forth in Section 8.7 of
the Plan. The Option does not place any limit on the corporate authority of the Corporation as set forth in Section 8.12 of the Plan. 
 11.3 Severability. If the arbitrator selected in accordance with Section 12.2 or a court of competent jurisdiction determines that any portion of this Option Agreement, the Plan, or the Exercise Agreement is in violation of any
statute or public policy, then only the portions of this Option Agreement, the Plan, or the Exercise Agreement, as applicable, which violate such statute or public policy shall be stricken, and all portions of this Option Agreement, the Plan, and
the Exercise Agreement which do not violate any statute or public policy shall continue in full force and effect. Furthermore, it is the parties’ intent that any court order striking any portion of this Option Agreement, the Plan, and/or the
Exercise Agreement should modify the stricken terms as narrowly as possible to give as much effect as possible to the intentions of the parties hereunder. 
  

	12.	Arbitration.  

 12.1 Any
dispute, controversy or claim arising out of or in connection with or relating to this Option Agreement, or the interpretation, breach, termination or validity hereof, shall be resolved through arbitration. A dispute may be submitted to arbitration
upon the request of either party with written notice to the other (the “Notice”). The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “Centre”).
There shall be three (3) arbitrators. Each party shall nominate one (1) arbitrator within thirty (30) days after the delivery of the Notice to the other party. The appointment of party nominated arbitrators shall be confirmed by the
Centre. Both arbitrators shall agree on the third arbitrator within thirty (30) days of their confirmation by the Centre. Should either party fail to appoint an arbitrator or should the two arbitrators fail within thirty (30) days to reach
agreement on the third arbitrator, such arbitrator shall be appointed by the Secretary General of the Centre. 
 12.2 The arbitration
proceedings shall be conducted in English. The arbitration tribunal shall apply the UNCITRAL Arbitration Rules as administered by the Centre at the time of the arbitration. However, if such rules conflict with the provisions of this
Section 12.2, including the provisions concerning the appointment of an arbitrator(s), the provisions of this Section 12.2 shall prevail. 
  

 7 

 12.3 The arbitrators shall decide any dispute submitted by the parties strictly in accordance with
the substantive laws of the British Virgin Islands and shall not apply any other substantive law. 
 12.4 Each party shall cooperate
with the other in making full disclosure of and providing complete access to all information and documents requested by the other in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such party.

 12.5 The costs of arbitration shall be borne by the losing party, unless otherwise determined by the arbitration tribunal.

 12.6 When any dispute occurs and when any dispute is under arbitration, except for the matters in dispute, the parties shall
continue to fulfill their respective obligations and shall be entitled to exercise their rights under this Agreement. 
 12.7 The
award of the arbitration tribunal shall be final and binding upon the parties, and the prevailing party may apply to a court of competent jurisdiction for enforcement of such award. 
  

	13.	Shareholder Approval. 

 Notwithstanding
anything else contained herein to the contrary, the Option and all rights of the Grantee under this Option Agreement are subject to approval of the Plan by the Corporation’s shareholders (such approval to be obtained in accordance with the
terms of the Plan, the Corporation’s Memorandum and Articles of Association, and applicable law) within 12 months after the Effective Date of the Plan. 
  

	14.	Satisfaction of All Rights to Equity. 

 The
Option is in complete satisfaction of any and all rights that the Grantee may have (under an employment, consulting, or other written or oral agreement with the Corporation or any of its Affiliates, or otherwise) to receive (1) options or share
awards with respect to the securities of the Corporation or any of its Affiliates, and/or (2) any other equity or derivative security in or with respect to the Corporation or any of its Affiliates. This Option Agreement supersedes the terms of
all prior understandings and agreements, written or oral, of the parties with respect to such matters. The Grantee shall have no further rights or benefits under any prior agreement conveying any right with respect to any security or derivative
security in or with respect to the Corporation or any of its Affiliates. The foregoing notwithstanding, this Section 14 shall not adversely affect the Grantee’s rights under any prior option or share award agreement under the Plan
(provided such agreement is expressly labeled as an option or share award agreement under the Plan and is similar in form to this Option Agreement) which has been signed by an authorized officer of the Corporation. 
  

	15.	Effect of this Agreement. 

 This Option
Agreement shall be assumed by, be binding upon and inure to the benefit of any successor or successors to the Corporation. 
  

 8 

	16.	Counterparts. 

 This Option Agreement may be
executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  

	17.	Section Headings. 

 The section headings of
this Option Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 
 [Remainder
of page intentionally left blank] 
  

 9 

 EXHIBIT A 
 CHINA DRTV, INC. 
 2005 SHARE INCENTIVE PLAN 
 OPTION EXERCISE AND COMMON SHARE PURCHASE AGREEMENT 
 The undersigned (the “Purchaser”) hereby irrevocably elects to exercise his/her right, evidenced by that certain Option Agreement dated as of
                                        
     (the “Option Agreement”) under the China DRTV Inc. 2005 Share Incentive Plan (the “Plan”), as follows: 
  

	 	•	 	the Purchaser hereby irrevocably elects to purchase
                                        
     Common Shares (the “Shares”), of China DRTV Inc., an international business company formed under the laws of the British Virgin Islands (the “Corporation”), and 

 

	 	•	 	such purchase shall be at the price of $             per share, for an aggregate amount of
$             (subject to applicable withholding taxes pursuant to Section 8.5 of the Plan). 

 Capitalized terms are defined in the Plan if not defined herein. 
 1. Delivery of Share Certificate. The Purchaser requests that a certificate representing the Shares be registered to Purchaser and delivered to:
                                        
                                        
                                        
                                        
                        . 
 2. Investment Representations. The Purchaser acknowledges that the sale of the Shares by the Purchaser is restricted by Securities and Exchange Commission Rule 701. The Purchaser hereby affirms as made as of
the date hereof the representations in Section 6 of the “Terms and Conditions of Option” (which are attached to and a part of the Option Agreement, the “Terms”) and such representations are incorporated herein by this
reference. The Purchaser represents that he/she has no need for liquidity in this investment, has the ability to bear the economic risk of this investment, and can afford a complete loss of the purchase price for the Shares. 
 The Purchaser acknowledges receipt of the Corporation’s condensed consolidated financial information. 
 3. Limitation on Disposition and Other Restrictions. The Shares are subject to and the Purchaser hereby agrees to the following terms and
conditions of the sale of the Shares to the Purchaser: 
  

	 	•	 	any transfer of the Shares must comply with the restrictions on transfer set forth in Section 5.7 of the Plan and all applicable laws as set forth in Section 8.1 of the
Plan; 

  

	 	•	 	the Shares are subject to, and following any otherwise permitted transfer of the Shares, the Shares shall remain subject to and the transferee shall be bound by, the lock-up
provisions set forth in Section 7 of the Terms, the foregoing provisions of this Section 3 and the arbitration provisions of Section 12 of the Terms; and 

  

	 	•	 	as a condition to any otherwise permitted transfer of the Shares, the Corporation may require the transferee to execute a written agreement, in a form acceptable to the
Administrator, that the transferee acknowledges and agrees to the foregoing terms and restrictions imposed on the Shares. 

 4. Plan and Option Agreement. The Purchaser acknowledges that all of his/her rights are subject
to, and the Purchaser agrees to be bound by, all of the terms and conditions of the Plan and the Option Agreement (including the Terms), both of which are incorporated herein by this reference. If a conflict or inconsistency between the terms and
conditions of this Option Exercise and Common Share Purchase Agreement and of the Plan or the Option Agreement shall arise, the terms and conditions of the Plan and/or the Option Agreement shall govern. The Purchaser acknowledges receipt of a copy
of all documents referenced herein (including the Terms and a disclosure statement) and acknowledges reading and understanding these documents and having an opportunity to ask any questions that he/she may have had about them. Any controversy or
claim arising out of or relating to this Option Exercise and Common Share Purchase Agreement shall be submitted to arbitration in accordance with Section 12.2 of the Terms, and the British Virgin Islands laws shall apply as provided in
Section 11.1 of the Terms. 
 5. Entire Agreement. This Option Exercise and Common Share Purchase Agreement, the Option Agreement
(including the Terms), and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan, the Option Agreement and
this Option Exercise and Common Share Purchase Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof
or of the Option Agreement in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any
other provision hereof. 
 6. Notice of Sale of ISO Shares. If the Shares are being acquired upon exercise of an Option intended to
qualify as an Incentive Stock Option, the Purchaser agrees that, upon any sale or other transfer of the Shares within either one year of the date that they are acquired by the Purchaser or two years after the Award Date set forth in the Option
Agreement, the Purchaser shall provide the notice required under Section 5.1.2 of the Plan. 
  

							
	“PURCHASER”	 		 	 ACCEPTED BY:
 CHINA DRTV,
INC.,

	  
 Signature
	 		 	 an international business company formed
 under the laws of the British Virgin Island

				
	  
 Print Name
	 		 	 By:
	 	  

				
	  
 Date
	 		 	 Its:
	 	  

			
		 		 	(To be completed by the company after the price (including applicable withholding taxes), value (if applicable) and receipt of funds is verified.)

 CHINA DRTV, INC. 
 2005 SHARE INCENTIVE PLAN B 
 EMPLOYEE SHARE OPTION AGREEMENT 
 THIS EMPLOYEE SHARE OPTION AGREEMENT (this “Option Agreement”) dated
                                 by and between China DRTV, Inc., an
international business company formed under the laws of the British Virgin Islands (the “Corporation”), and
                                        
(the “Grantee”) evidences the share option (the “Option”) granted by the Corporation to the Grantee as to the number of the Corporation’s ordinary shares (“Common Shares”) first set forth
below. 
  

													
	 	 	  	  	  	  	  	  	  	  	  	 	  
	  	 	Number of Common Shares:1	  	  	  	 	  	Award Date:	  	  	 	  
	 	 		  		  		  		  		 	 
	 	 	 Exercise Price per Common Share:1
	  	$            	  		  	Expiration Date:1,2	  	  	 	 
	 	 		  		  		  		  		 	 
	 	 	 Type of Option (check one):
	  	Nonqualified Option
                            [           
 ]	  		 	 
	 				 
	 	 		  	Incentive Stock Option
                        [            ]	  		 	 
	 	 
	 	 	Vesting1,2 The Option shall become vested as to 25% of the total number of Common Shares subject to the Option on the Award Date. The remaining 75% of the total number of Common Shares subject to the Option
shall vest in 36 substantially equal monthly installments, with the first installment vesting on the last day of the month in which the Award Date occurs and an additional installment vesting on the last day of each of the 35 months
thereafter.
	  	 	  	  	  	  	  	  	  	  	  	 	  

 The Option is granted under the China DRTV, Inc. 2005 Share Incentive Plan B (the
“Plan”) and subject to the Terms and Conditions of Employee Share Option (the “Terms”) attached to this Option Agreement (incorporated herein by this reference) and to the Plan. The Option has been granted to the
Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. Capitalized terms are defined in the Plan if not defined herein. The parties agree to the terms of the Option set forth
herein. The Grantee acknowledges receipt of a copy of the Terms and the Plan, specifically acknowledges and agrees to Section 14 of the Terms, and agrees to maintain in confidence all information provided to him/her in connection with the
Option. 
  

					
	“GRANTEE”	 		  	CHINA DRTV, INC.
	  	 	 	  	 
	Signature	 		  	By:                                      
                                        
                                    
	  	 		  	
	Print Name	 		  	
		 		  	Print
Name:                                       
                                        
                   
		 		  	
	  	 		  	Title:                                     
                                        
                                  
	Address	 		  	

  

	1	Subject to adjustment under Section 7.1 of the Plan. 

	2	Subject to early termination under Section 4 of the Terms and Section 7.3 of the Plan. 

 CONSENT OF SPOUSE 
 (optional) 
 In consideration of the Corporation’s execution of this Option Agreement, the undersigned
spouse of the Grantee agrees to be bound by all of the terms and provisions hereof and of the Plan. 
  

							
	  	 		 	  	  	
	Signature of Spouse	 		 	Date	  	

 TERMS AND CONDITIONS OF EMPLOYEE SHARE OPTION 
  

	1.	Vesting; Limits on Exercise. 

 The Option
shall vest and become exercisable in percentage installments of the aggregate number of Common Shares subject to the Option as set forth on the cover page of this Option Agreement. The Option may be exercised only to the extent the Option is vested
and exercisable. 
  

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Grantee has the right to exercise the Option (to the extent not previously exercised),
and such right shall continue, until the expiration or earlier termination of the Option. 

  

	 	•	 	No Fractional Shares. Fractional Common Share interests shall be disregarded, but may be cumulated subject to the Plan. 

  

	 	•	 	Minimum Exercise. No fewer than 100 Common Shares (subject to adjustment under Section 7.1 of the Plan) may be purchased at any one time, unless the number purchased is
the total number at the time exercisable under the Option. 

  

	 	•	 	ISO Value Limit. If the Option is designated as an Incentive Stock Option (an “ISO”), as indicated on the cover page of this Option Agreement, and if the
aggregate fair market value of the shares with respect to which ISOs (whether granted under the Option or otherwise) first become exercisable by the Grantee in any calendar year exceeds $100,000, as measured on the applicable Award Dates, the
limitations of Section 5.1.2 of the Plan shall apply and to such extent the Option will be rendered a Nonqualified Option. 

  

	2.	Continuance of Employment/Service Required; No Employment/Service Commitment. 

 The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable
installment of the Option and the rights and benefits under this Option Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or
mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 4 below or under the Plan. 
 Nothing contained in this Option Agreement or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an
employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any
Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Grantee’s other compensation. 
  

 1 

	3.	Method of Exercise of Option. 

 The Option
shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Committee may require pursuant to such administrative exercise procedures as the Committee may implement from time to time) of: 
  

	 	•	 	an executed Option Exercise and Common Share Purchase Agreement (stating the number of Common Shares to be purchased pursuant to the Option) in substantially the form attached
hereto as Exhibit A or such other form as the Administrator may require from time to time (the “Exercise Agreement”); 

  

	 	•	 	payment in full for the Exercise Price of the shares to be purchased, in cash or by electronic funds transfer to the Corporation, or by certified or cashier’s check payable to
the order of the Corporation subject to such specific procedures or directions as the Administrator may establish; 

  

	 	•	 	any written statements or agreements required pursuant to Section 8.1 of the Plan; and 

  

	 	•	 	satisfaction of the tax withholding provisions of Section 8.5 of the Plan. 

 The Administrator also may, but is not required to, authorize a non-cash payment alternative specified below at or prior to the time of exercise. In which case, the Exercise Price and/or applicable withholding taxes, to the extent so
authorized, may be paid in full or in part by delivery to the Corporation of: 
  

	 	•	 	Common Shares already owned by the Grantee, valued at their Fair Market Value on the exercise date, provided, however, that any shares acquired directly from the
Corporation (upon exercise of an option or otherwise) must have been owned by the Grantee for at least six (6) months before the date of such exercise; and/or 

  

	 	•	 	if the Common Shares are then registered under the Exchange Act and listed or quoted on a recognized national securities exchange or in the NASDAQ National Market Quotation System,
irrevocable instructions to a broker to, upon exercise of the Option, promptly sell a sufficient number of Common Shares acquired upon exercise of the Option and deliver to the Corporation the amount necessary to pay the Exercise Price (and, if
applicable, the amount of any related tax withholding obligations). 

 An Option will qualify as an ISO only if it meets all of the applicable
requirements of the Code. If the Option is designated as an ISO, the Option may be rendered a Nonqualified Option if the Administrator permits the use of one or more of the non-cash payment alternatives referenced above. 
  

 2 

	4.	Early Termination of Option. 

 4.1 Possible Termination of Option upon Change in Control. The Option is subject to termination in connection with a Change in Control Event or certain similar reorganization events as provided in Section 7.3 of the Plan.

 4.2 Termination of Option upon a Termination of Grantee’s Employment or Services. Subject to earlier termination on the
Expiration Date of the Option or pursuant to Section 4.1 above, if the Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary (other than in the capacity as a member of the board of directors of the
Corporation as provided below), the following rules shall apply (the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary is referred to as the Grantee’s “Severance Date”):

  

	 	•	 	other than as expressly provided below in this Section 4.2, (a) the Grantee will have until the date that is 30 days after his or her Severance Date to exercise the Option
(or portion thereof) to the extent that it was vested on the Severance Date, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option, to the extent exercisable for the
30-day period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 30-day period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s voluntary Retirement (as defined below and other than a termination by the Corporation or a
Subsidiary for cause as provided below), then (a) the Grantee will have until the date that is 3 years after his or her Severance Date to exercise the Option (or portion thereof) to the extent that it was vested on the Severance Date,
(b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option, to the extent exercisable for the 3-year period following the Severance Date and not exercised during such period,
shall terminate at the close of business on the last day of the 3-year period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s death or Disability (as defined below), then (a) the Grantee (or his beneficiary or
personal representative, as the case may be) will have until the date that is 3 years after the Grantee’s Severance Date to exercise the Option, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the
Severance Date, and (c) the Option, to the extent exercisable for the 3-year period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 3-year period;

  

	 	•	 	if the termination of the Grantee’s employment is the result of a termination by the Corporation or a Subsidiary for Cause (as defined below), the Option (whether vested or
not) shall terminate on the Severance Date. 

 In the event a Grantee who is appointed by the holders of the preferred shares
of the Corporation to serve on the board of directors of the Corporation (the “Board”) terminates his 
  

 3 

 service to the Corporation (other than in connection with a Change in Control Event or certain similar reorganization
events), the Option shall not be subject to Section 4.2 herein but shall be subject to accelerated vesting in accordance with Section 7.2.2 of the Plan. 
 For purposes of the Option, “Disability” means a permanent disability (within the meaning of Section 22(e)(3) of the Code or as otherwise determined by the Administrator). For purposes of the Option,
“Retirement” means a termination of employment by the Grantee that occurs upon or after the Grantee’s attainment of age 65 and in accordance with the retirement policies of the Corporation (or the Subsidiary that employs the Grantee)
then in effect. For purposes of the Option, “Cause” means that the Grantee: (a) has been repeatedly negligent in the discharge of his or her duties to the Corporation or a Subsidiary or has refused to perform stated or assigned duties
(other than by reason of a disability or analogous condition); (b) has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of confidentiality, an unauthorized disclosure or use of inside information,
customer lists, trade secrets or other confidential information; (c) has breached a fiduciary duty, or violated any other duty, law, rule, regulation or policy of the company or an affiliate; (d) has been convicted of, or plead guilty or
nolo contendere to, a felony or misdemeanor (other than minor traffic violations or similar offenses); (e) has materially breached any of the provisions of any agreement with the Corporation or a Subsidiary; (f) has engaged in unfair
competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of, the Corporation or a Subsidiary; or has improperly induced a vendor or customer to break or terminate any contract with the
Corporation or a Subsidiary or induced a principal for whom the Corporation or a Subsidiary acts as agent to terminate such agency relationship. 
 In all events the Option is subject to earlier termination on the Expiration Date of the Option or as contemplated by Section 4.1. The Administrator shall be the sole judge of whether the Grantee continues to render employment or
services for purposes of this Option Agreement. 
  

	5.	Non-Transferability. 

 The Option and any
other rights of the Grantee under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set forth in Section 5.7 of the Plan. Any Common Shares issued on exercise of the Option are subject to
substantial restrictions on transfer, and are subject to other rights in favor of the Corporation as set forth herein and in the Exercise Agreement. 
  

	6.	Securities Law Compliance. 

 The Grantee
acknowledges that the Option and the Common Shares are not being registered under the Securities Act, based, in part, in reliance upon an exemption from registration under Securities and Exchange Commission Rule 701 promulgated under the Securities
Act of 1933, and a comparable exemption from qualification under applicable state securities laws, as each may be amended from time to time. The Grantee, by executing this Option Agreement, hereby makes the following representations to the
Corporation and acknowledges that the Corporation’s reliance on federal and state securities law exemptions from registration and qualification is predicated, in substantial part, upon the accuracy of these representations: 
  

	 	•	 	The Grantee is acquiring the Option and, if and when he/she exercises the Option, will acquire the Common Shares solely for the Grantee’s own account, for investment purposes
only, and not with a view to or an intent to sell, or to offer for resale in connection with any unregistered distribution, all or any portion of the Common Shares within the meaning of the Securities Act, or other applicable state securities laws.

  

 4 

	 	•	 	The Grantee has had an opportunity to ask questions and receive answers from the Corporation regarding the terms and conditions of the Option and the restrictions imposed on any
Common Shares purchased upon exercise of the Option. The Grantee has been furnished with, and/or has access to, such information as he or she considers necessary or appropriate for deciding whether to exercise the Option and purchase Common Shares.
However, in evaluating the merits and risks of an investment in the Common Shares, the Grantee has and will rely upon the advice of his/her own legal counsel, tax advisors, and/or investment advisors. 

  

	 	•	 	The Grantee is aware that the Option may be of no practical value, that any value it may have depends on its vesting and exercisability as well as an increase in the Fair Market
Value of the underlying Common Shares to an amount in excess of the Exercise Price, and that any investment in common shares of a closely held corporation such as the Corporation is non-marketable, non-transferable and could require capital to be
invested for an indefinite period of time, possibly without return, and at substantial risk of loss. 

  

	 	•	 	The Grantee understands that any Common Shares acquired on exercise of the Option will be characterized as “restricted securities” under the federal securities laws, and
that, under such laws and applicable regulations, such securities may be resold without registration under the Securities Act only in certain limited circumstances, including in accordance with the conditions of Rule 144 promulgated under the
Securities Act, as presently in effect, with which the Grantee is familiar. 

  

	 	•	 	The Grantee has read and understands the restrictions and limitations set forth in the Plan, this Option Agreement (including these Terms), which are imposed on the Option and any
Common Shares which may be acquired upon exercise of the Option. 

  

	 	•	 	At no time was an oral representation made to the Grantee relating to the Option or the purchase of Common Shares and the Grantee was not presented with or solicited by any
promotional meeting or material relating to the Option or the Common Share. 

  

	7.	Lock-Up Agreement. 

 Grantee may not (nor may
any permitted transferee), directly or indirectly, offer, sell or transfer or dispose of any of the Common Shares acquired upon exercise of the Option or any interest therein (or agree to do any thereof) (collectively, a “Transfer”)
during the period commencing as of 14 days prior to and ending one year, or such lesser period of time as the relevant underwriters may permit, after the effective date of a registration statement covering any public offering of the
Corporation’s securities of which the Grantee has notice (The term 
  

 5 

 “Grantee” includes, where the context so requires, any permitted direct or indirect transferee of the Grantee.)
The Grantee shall agree and consent to the entry of stop transfer instructions with the Corporation’s transfer agent against the Transfer of the Corporation’s securities beneficially owned by the Grantee and shall conform the limitations
hereunder by agreement with and for the benefit of the relevant underwriters by a lock-up agreement or other agreement in customary form. Notwithstanding anything else herein to the contrary, this Section 7 shall not be construed so as to
prohibit the Grantee from participating in a registration or a public offering of the Common Shares with respect to any shares which he or she may hold at that time, provided, however, that such participation shall be at the sole discretion of the
Board. 
  

	8.	Notices. 

 Any notice to be given under the
terms of this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such
other address as either party may hereafter designate in writing to the other. Any such notice shall be given only when received, but if the Grantee is no longer employed by the Corporation or a Subsidiary, shall be deemed to have been duly given
five business days after the date mailed in accordance with the foregoing provisions of this Section 8. 
  

	9.	Plan. 

 The Option and all rights of the
Grantee under this Option Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by this reference. In the event of a conflict or inconsistency between the terms and
conditions of this Option Agreement and of the Plan, the terms and conditions of the Plan shall govern. The Grantee agrees to be bound by the terms of the Plan and this Option Agreement (including these Terms). The Grantee acknowledges having read
and understanding the Plan and this Option Agreement. Unless otherwise expressly provided in other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not and shall not
be deemed to create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the
Plan after the date hereof. 
  

	10.	Entire Agreement. 

 This Option Agreement
(including these Terms) and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Option Agreement
may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely
affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
  

 6 

	11.	Governing Law; Limited Rights; Severability. 

 11.1 British Virgin Islands Laws; Construction. This Option Agreement and the Exercise Agreement shall be governed by and construed and enforced in accordance with the laws of the British Virgin Islands without regard to conflict of
law principles thereunder. The terms of the Option grant have resulted from the negotiations of the parties and each of the parties has had an opportunity to obtain and consult with its own counsel. The language of all parts of the Plan, this Option
Agreement (including these Terms) and the Exercise Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the parties. 
 11.2 Limited Rights. The Grantee has no rights as a shareholder of the Corporation with respect to the Option as set forth in Section 8.7 of
the Plan. The Option does not place any limit on the corporate authority of the Corporation as set forth in Section 8.12 of the Plan. 
 11.3 Severability. If the arbitrator selected in accordance with Section 12.2 or a court of competent jurisdiction determines that any portion of this Option Agreement, the Plan, or the Exercise Agreement is in violation of
any statute or public policy, then only the portions of this Option Agreement, the Plan, or the Exercise Agreement, as applicable, which violate such statute or public policy shall be stricken, and all portions of this Option Agreement, the Plan,
and the Exercise Agreement which do not violate any statute or public policy shall continue in full force and effect. Furthermore, it is the parties’ intent that any court order striking any portion of this Option Agreement, the Plan, and/or
the Exercise Agreement should modify the stricken terms as narrowly as possible to give as much effect as possible to the intentions of the parties hereunder. 
  

	12.	Arbitration.  

 12.1 Any
dispute, controversy or claim arising out of or in connection with or relating to this Option Agreement, or the interpretation, breach, termination or validity hereof, shall be resolved through arbitration. A dispute may be submitted to arbitration
upon the request of either party with written notice to the other (the “Notice”). The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “Centre”).
There shall be three (3) arbitrators. Each party shall nominate one (1) arbitrator within thirty (30) days after the delivery of the Notice to the other party. The appointment of party nominated arbitrators shall be confirmed by the
Centre. Both arbitrators shall agree on the third arbitrator within thirty (30) days of their confirmation by the Centre. Should either party fail to appoint an arbitrator or should the two arbitrators fail within thirty (30) days to reach
agreement on the third arbitrator, such arbitrator shall be appointed by the Secretary General of the Centre. 
 12.2 The arbitration
proceedings shall be conducted in English. The arbitration tribunal shall apply the UNCITRAL Arbitration Rules as administered by the Centre at the time of the arbitration. However, if such rules conflict with the provisions of this
Section 12.2, including the provisions concerning the appointment of an arbitrator(s), the provisions of this Section 12.2 shall prevail. 
  

 7 

 12.3 The arbitrators shall decide any dispute submitted by the parties strictly in accordance with
the substantive laws of the British Virgin Islands and shall not apply any other substantive law. 
 12.4 Each party shall cooperate
with the other in making full disclosure of and providing complete access to all information and documents requested by the other in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such party.

 12.5 The costs of arbitration shall be borne by the losing party, unless otherwise determined by the arbitration tribunal.

 12.6 When any dispute occurs and when any dispute is under arbitration, except for the matters in dispute, the parties shall
continue to fulfill their respective obligations and shall be entitled to exercise their rights under this Agreement. 
 12.7 The
award of the arbitration tribunal shall be final and binding upon the parties, and the prevailing party may apply to a court of competent jurisdiction for enforcement of such award. 
  

	13.	Shareholder Approval. 

 Notwithstanding
anything else contained herein to the contrary, the Option and all rights of the Grantee under this Option Agreement are subject to approval of the Plan by the Corporation’s shareholders (such approval to be obtained in accordance with the
terms of the Plan, the Corporation’s Memorandum and Articles of Association, and applicable law) within 12 months after the Effective Date of the Plan. 
  

	14.	Satisfaction of All Rights to Equity. 

 The
Option is in complete satisfaction of any and all rights that the Grantee may have (under an employment, consulting, or other written or oral agreement with the Corporation or any of its Affiliates, or otherwise) to receive (1) options or share
awards with respect to the securities of the Corporation or any of its Affiliates, and/or (2) any other equity or derivative security in or with respect to the Corporation or any of its Affiliates. This Option Agreement supersedes the terms of
all prior understandings and agreements, written or oral, of the parties with respect to such matters. The Grantee shall have no further rights or benefits under any prior agreement conveying any right with respect to any security or derivative
security in or with respect to the Corporation or any of its Affiliates. The foregoing notwithstanding, this Section 14 shall not adversely affect the Grantee’s rights under any prior option or share award agreement under the Plan
(provided such agreement is expressly labeled as an option or share award agreement under the Plan and is similar in form to this Option Agreement) which has been signed by an authorized officer of the Corporation. 
  

	15.	Effect of this Agreement. 

 This Option
Agreement shall be assumed by, be binding upon and inure to the benefit of any successor or successors to the Corporation. 
  

 8 

	16.	Counterparts. 

 This Option Agreement may be
executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  

	17.	Section Headings. 

 The section headings of
this Option Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 
 [Remainder
of page intentionally left blank] 
  

 9 

 EXHIBIT A 
 CHINA DRTV, INC. 
 2005 SHARE INCENTIVE PLAN B 
 OPTION EXERCISE AND COMMON SHARE PURCHASE AGREEMENT 
 The undersigned (the “Purchaser”) hereby irrevocably elects to exercise his/her right, evidenced by that certain Option Agreement dated as of
                                 (the “Option Agreement”) under
the China DRTV Inc. 2005 Share Incentive Plan B (the “Plan”), as follows: 
  

	 	•	 	the Purchaser hereby irrevocably elects to purchase
                                 Common Shares (the “Shares”), of
China DRTV Inc., an international business company formed under the laws of the British Virgin Islands (the “Corporation”), and 

  

	 	•	 	such purchase shall be at the price of $                     per share,
for an aggregate amount of $                     (subject to applicable withholding taxes pursuant to Section 8.5 of the Plan).

 Capitalized terms are defined in the Plan if not defined herein. 
 1. Delivery of Share Certificate. The Purchaser requests that a certificate representing the Shares be registered to Purchaser and delivered
to:                                       
                                        
                                        
                                        
                                        
                                 . 
 2. Investment Representations. The Purchaser acknowledges that the sale of the Shares by the Purchaser is restricted by Securities and Exchange
Commission Rule 701. The Purchaser hereby affirms as made as of the date hereof the representations in Section 6 of the “Terms and Conditions of Option” (which are attached to and a part of the Option Agreement, the
“Terms”) and such representations are incorporated herein by this reference. The Purchaser represents that he/she has no need for liquidity in this investment, has the ability to bear the economic risk of this investment, and can
afford a complete loss of the purchase price for the Shares. 
 The Purchaser acknowledges receipt of the Corporation’s condensed
consolidated financial information. 
 3. Limitation on Disposition and Other Restrictions. The Shares are subject to and the
Purchaser hereby agrees to the following terms and conditions of the sale of the Shares to the Purchaser: 
  

	 	•	 	any transfer of the Shares must comply with the restrictions on transfer set forth in Section 5.7 of the Plan and all applicable laws as set forth in Section 8.1 of the
Plan; 

  

	 	•	 	the Shares are subject to, and following any otherwise permitted transfer of the Shares, the Shares shall remain subject to and the transferee shall be bound by, the lock-up
provisions set forth in Section 7 of the Terms, the foregoing provisions of this Section 3 and the arbitration provisions of Section 12 of the Terms; and 

  

	 	•	 	as a condition to any otherwise permitted transfer of the Shares, the Corporation may require the transferee to execute a written agreement, in a form acceptable to the
Administrator, that the transferee acknowledges and agrees to the foregoing terms and restrictions imposed on the Shares. 

 4. Plan and Option Agreement. The Purchaser acknowledges that all of his/her rights are subject
to, and the Purchaser agrees to be bound by, all of the terms and conditions of the Plan and the Option Agreement (including the Terms), both of which are incorporated herein by this reference. If a conflict or inconsistency between the terms and
conditions of this Option Exercise and Common Share Purchase Agreement and of the Plan or the Option Agreement shall arise, the terms and conditions of the Plan and/or the Option Agreement shall govern. The Purchaser acknowledges receipt of a copy
of all documents referenced herein (including the Terms and a disclosure statement) and acknowledges reading and understanding these documents and having an opportunity to ask any questions that he/she may have had about them. Any controversy or
claim arising out of or relating to this Option Exercise and Common Share Purchase Agreement shall be submitted to arbitration in accordance with Section 12.2 of the Terms, and the British Virgin Islands laws shall apply as provided in Section 11.1
of the Terms. 
 5. Entire Agreement. This Option Exercise and Common Share Purchase Agreement, the Option Agreement (including the
Terms), and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan, the Option Agreement and this Option
Exercise and Common Share Purchase Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof or of the
Option Agreement in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other
provision hereof. 
 6. Notice of Sale of ISO Shares. If the Shares are being acquired upon exercise of an Option intended to qualify
as an Incentive Stock Option, the Purchaser agrees that, upon any sale or other transfer of the Shares within either one year of the date that they are acquired by the Purchaser or two years after the Award Date set forth in the Option Agreement,
the Purchaser shall provide the notice required under Section 5.1.2 of the Plan. 
  

							
	“PURCHASER”	 		 	 ACCEPTED BY:
 CHINA DRTV,
INC.,

	  
 Signature
	 		 	 an international business company formed
 under the laws of the British Virgin Island

				
	  
 Print Name
	 		 	 By:
	 	  

				
	  
 Date
	 		 	 Its:
	 	  

			
		 		 	(To be completed by the company after the price (including applicable withholding taxes), value (if applicable) and receipt of funds is verified.)

 CHINA DRTV, INC. 
 AMENDED AND RESTATED 2005 SHARE INCENTIVE PLAN 
 EMPLOYEE SHARE OPTION AGREEMENT 
 THIS EMPLOYEE SHARE OPTION AGREEMENT (this “Option Agreement”) dated
                                 by and between China DRTV, Inc., an
international business company formed under the laws of the British Virgin Islands (the “Corporation”), and
                                        
(the “Grantee”) evidences the share option (the “Option”) granted by the Corporation to the Grantee as to the number of the Corporation’s ordinary shares (“Common Shares”) first set forth
below. 
  

													
	 	 	  	  	  	  	  	  	  	  	  	 	  
	  	 	Number of Common Shares:1	  	  	  	 	  	Award Date:	  	  	 	  
	 	 		  		  		  		  		 	 
	 	 	 Exercise Price per Common Share:1
	  	$            	  		  	Expiration Date:1	  	  	 	 
	 	 		  		  		  		  		 	 
	 	 	 Type of Option (check one):
	  	 Nonqualified Option
                            [           
 ]
	  		 	 
	 				 
	 	 		  	 Incentive Stock
Option                        
[            ]
	  		 	 
	 	 
	 	 	 Vesting The Option shall become
vested as to 100% of the total number of Common Shares subject to the Option on the Award Date.
  

 The Option is granted under the China DRTV, Inc. Amended and Restated 2005 Share Incentive Plan
(the “Plan”) and subject to the Terms and Conditions of Employee Share Option (the “Terms”) attached to this Option Agreement (incorporated herein by this reference) and to the Plan. The Option has been granted to
the Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. Capitalized terms are defined in the Plan if not defined herein. The parties agree to the terms of the Option set forth
herein. The Grantee acknowledges receipt of a copy of the Terms and the Plan, specifically acknowledges and agrees to Section 14 of the Terms, and agrees to maintain in confidence all information provided to him/her in connection with the
Option. 
  

					
	“GRANTEE”	 		  	CHINA DRTV, INC.
	  	 	 	  	 
	Signature	 		  	By:                                      
                                        
                                    
	  	 		  	
	Print Name	 		  	
		 		  	Print
Name:                                       
                                        
                   
		 		  	
	  	 		  	Title:                                     
                                        
                                  
	Address	 		  	

  

	1	Subject to adjustment under Section 7.1 of the Plan. 

 CONSENT OF SPOUSE 
 (optional) 
 In consideration of the Corporation’s execution of this Option Agreement, the undersigned
spouse of the Grantee agrees to be bound by all of the terms and provisions hereof and of the Plan. 
  

							
	  	 		 	  	  	
	Signature of Spouse	 		 	Date	  	

 TERMS AND CONDITIONS OF EMPLOYEE SHARE OPTION 
  

	1.	Vesting; Limits on Exercise. 

 The Option
shall vest and become exercisable as set forth on the cover page of this Option Agreement. The Option may be exercised only to the extent the Option is vested and exercisable. 
  

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Grantee has the right to exercise the Option (to the extent not previously exercised),
and such right shall continue, until the expiration or earlier termination of the Option. 

  

	 	•	 	No Fractional Shares. Fractional Common Share interests shall be disregarded, but may be cumulated subject to the Plan. 

  

	 	•	 	Minimum Exercise. No fewer than 100 Common Shares (subject to adjustment under Section 7.1 of the Plan) may be purchased at any one time, unless the number purchased is
the total number at the time exercisable under the Option. 

  

	 	•	 	ISO Value Limit. If the Option is designated as an Incentive Stock Option (an “ISO”), as indicated on the cover page of this Option Agreement, and if the
aggregate fair market value of the shares with respect to which ISOs (whether granted under the Option or otherwise) first become exercisable by the Grantee in any calendar year exceeds $100,000, as measured on the applicable Award Dates, the
limitations of Section 5.1.2 of the Plan shall apply and to such extent the Option will be rendered a Nonqualified Option. 

  

	2.	No Employment/Service Commitment. 

 Nothing
contained in this Option Agreement or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an employee, as an employee at will who is
subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate
such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Grantee’s other compensation. 
  

	3.	Method of Exercise of Option. 

 The Option
shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Committee may require pursuant to such administrative exercise procedures as the Committee may implement from time to time) of: 
  

	 	•	 	an executed Option Exercise and Common Share Purchase Agreement (stating the number of Common Shares to be purchased pursuant to the Option) in substantially the form attached
hereto as Exhibit A or such other form as the Administrator may require from time to time (the “Exercise Agreement”); 

  

 1 

	 	•	 	payment in full for the Exercise Price of the shares to be purchased, in cash or by electronic funds transfer to the Corporation, or by certified or cashier’s check payable to
the order of the Corporation subject to such specific procedures or directions as the Administrator may establish; 

  

	 	•	 	any written statements or agreements required pursuant to Section 8.1 of the Plan; and 

  

	 	•	 	satisfaction of the tax withholding provisions of Section 8.5 of the Plan. 

 The Administrator also may, but is not required to, authorize a non-cash payment alternative specified below at or prior to the time of exercise. In which case, the Exercise Price and/or applicable withholding taxes, to the extent so
authorized, may be paid in full or in part by delivery to the Corporation of: 
  

	 	•	 	Common Shares already owned by the Grantee, valued at their Fair Market Value on the exercise date, provided, however, that any shares acquired directly from the
Corporation (upon exercise of an option or otherwise) must have been owned by the Grantee for at least six (6) months before the date of such exercise; and/or 

  

	 	•	 	if the Common Shares are then registered under the Exchange Act and listed or quoted on a recognized national securities exchange or in the NASDAQ National Market Quotation System,
irrevocable instructions to a broker to, upon exercise of the Option, promptly sell a sufficient number of Common Shares acquired upon exercise of the Option and deliver to the Corporation the amount necessary to pay the Exercise Price (and, if
applicable, the amount of any related tax withholding obligations). 

 An Option will qualify as an ISO only if it meets all of the applicable
requirements of the Code. If the Option is designated as an ISO, the Option may be rendered a Nonqualified Option if the Administrator permits the use of one or more of the non-cash payment alternatives referenced above. 
  

	4.	Early Termination of Option. 

 4.1 Possible Termination of Option upon Change in Control. The Option is subject to termination in connection with a Change in Control Event or certain similar reorganization events as provided in Section 7.3 of the Plan.

 4.2 Termination of Option upon a Termination of Grantee’s Employment or Services. Subject to earlier termination on the
Expiration Date of the Option or pursuant to Section 4.1 above, if the Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary (other than in the capacity as a member of the board of directors of the
Corporation as provided below), the following rules shall apply (the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary is referred to as the Grantee’s “Severance Date”):

  

	 	•	 	 other than as expressly provided below in this Section 4.2, (a) the Grantee will have until the date that is 30 days after his or her Severance Date to
exercise the Option (or 

  

 2 

	 	 
portion thereof), and (b) the Option, to the extent not exercised during the 30-day period following the Severance Date, shall terminate at the close of
business on the last day of the 30-day period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s voluntary Retirement (as defined below and other than a termination by the Corporation or a
Subsidiary for cause as provided below), then (a) the Grantee will have until the date that is 3 years after his or her Severance Date to exercise the Option (or portion thereof) and (b) the Option, to the extent not exercised during the
3-year period following the Severance Date, shall terminate at the close of business on the last day of the 3-year period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s death or Disability (as defined below), then (a) the Grantee (or his beneficiary or
personal representative, as the case may be) will have until the date that is 3 years after the Grantee’s Severance Date to exercise the Option, and (b) the Option, to the extent not exercised during the 3-year period following the
Severance Date, shall terminate at the close of business on the last day of the 3-year period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of a termination by the Corporation or a Subsidiary for Cause (as defined below), the Option shall terminate on the
Severance Date. 

 In the event a Grantee who is appointed by the holders of the preferred shares of the Corporation to serve
on the board of directors of the Corporation (the “Board”) terminates his service to the Corporation (other than in connection with a Change in Control Event or certain similar reorganization events), the Option shall not be subject
to Section 4.2 herein. 
 For purposes of the Option, “Disability” means a permanent disability (within the meaning of
Section 22(e)(3) of the Code or as otherwise determined by the Administrator). For purposes of the Option, “Retirement” means a termination of employment by the Grantee that occurs upon or after the Grantee’s attainment of age 65
and in accordance with the retirement policies of the Corporation (or the Subsidiary that employs the Grantee) then in effect. For purposes of the Option, “Cause” means that the Grantee: (a) has been repeatedly negligent in the
discharge of his or her duties to the Corporation or a Subsidiary or has refused to perform stated or assigned duties (other than by reason of a disability or analogous condition); (b) has been dishonest or committed or engaged in an act of
theft, embezzlement or fraud, a breach of confidentiality, an unauthorized disclosure or use of inside information, customer lists, trade secrets or other confidential information; (c) has breached a fiduciary duty, or violated any other duty,
law, rule, regulation or policy of the company or an affiliate; (d) has been convicted of, or plead guilty or nolo contendere to, a felony or misdemeanor (other than minor traffic violations or similar offenses); (e) has materially
breached any of the provisions of any agreement with the Corporation or a Subsidiary; (f) has engaged in unfair competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of, the Corporation
or a Subsidiary; or has improperly induced a vendor or customer to break or terminate any contract with the Corporation or a Subsidiary or induced a principal for whom the Corporation or a Subsidiary acts as agent to terminate such agency
relationship. 
  

 3 

 In all events the Option is subject to earlier termination on the Expiration Date of the Option or as
contemplated by Section 4.1. The Administrator shall be the sole judge of whether the Grantee continues to render employment or services for purposes of this Option Agreement. 
  

	5.	Non-Transferability. 

 The Option and any
other rights of the Grantee under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set forth in Section 5.7 of the Plan. Any Common Shares issued on exercise of the Option are subject to
substantial restrictions on transfer, and are subject to other rights in favor of the Corporation as set forth herein and in the Exercise Agreement. 
  

	6.	Securities Law Compliance. 

 The Grantee
acknowledges that the Option and the Common Shares are not being registered under the Securities Act, based, in part, in reliance upon an exemption from registration under Securities and Exchange Commission Rule 701 promulgated under the Securities
Act of 1933, and a comparable exemption from qualification under applicable state securities laws, as each may be amended from time to time. The Grantee, by executing this Option Agreement, hereby makes the following representations to the
Corporation and acknowledges that the Corporation’s reliance on federal and state securities law exemptions from registration and qualification is predicated, in substantial part, upon the accuracy of these representations: 
  

	 	•	 	The Grantee is acquiring the Option and, if and when he/she exercises the Option, will acquire the Common Shares solely for the Grantee’s own account, for investment purposes
only, and not with a view to or an intent to sell, or to offer for resale in connection with any unregistered distribution, all or any portion of the Common Shares within the meaning of the Securities Act, or other applicable state securities laws.

  

	 	•	 	The Grantee has had an opportunity to ask questions and receive answers from the Corporation regarding the terms and conditions of the Option and the restrictions imposed on any
Common Shares purchased upon exercise of the Option. The Grantee has been furnished with, and/or has access to, such information as he or she considers necessary or appropriate for deciding whether to exercise the Option and purchase Common Shares.
However, in evaluating the merits and risks of an investment in the Common Shares, the Grantee has and will rely upon the advice of his/her own legal counsel, tax advisors, and/or investment advisors. 

  

	 	•	 	The Grantee is aware that the Option may be of no practical value, that any value it may have depends on its vesting and exercisability as well as an increase in the Fair Market
Value of the underlying Common Shares to an amount in excess of the Exercise Price, and that any investment in common shares of a closely held corporation such as the Corporation is non-marketable, non-transferable and could require capital to be
invested for an indefinite period of time, possibly without return, and at substantial risk of loss. 

  

 4 

	 	•	 	The Grantee understands that any Common Shares acquired on exercise of the Option will be characterized as “restricted securities” under the federal securities laws, and
that, under such laws and applicable regulations, such securities may be resold without registration under the Securities Act only in certain limited circumstances, including in accordance with the conditions of Rule 144 promulgated under the
Securities Act, as presently in effect, with which the Grantee is familiar. 

  

	 	•	 	The Grantee has read and understands the restrictions and limitations set forth in the Plan, this Option Agreement (including these Terms), which are imposed on the Option and any
Common Shares which may be acquired upon exercise of the Option. 

  

	 	•	 	At no time was an oral representation made to the Grantee relating to the Option or the purchase of Common Shares and the Grantee was not presented with or solicited by any
promotional meeting or material relating to the Option or the Common Share. 

  

	7.	Lock-Up Agreement. 

 Grantee may not (nor may
any permitted transferee), directly or indirectly, offer, sell or transfer or dispose of any of the Common Shares acquired upon exercise of the Option or any interest therein (or agree to do any thereof) (collectively, a “Transfer”)
during the period commencing as of 14 days prior to and ending one year, or such lesser period of time as the relevant underwriters may permit, after the effective date of a registration statement covering any public offering of the
Corporation’s securities of which the Grantee has notice (The term “Grantee” includes, where the context so requires, any permitted direct or indirect transferee of the Grantee.) The Grantee shall agree and consent to the entry of
stop transfer instructions with the Corporation’s transfer agent against the Transfer of the Corporation’s securities beneficially owned by the Grantee and shall conform the limitations hereunder by agreement with and for the benefit of
the relevant underwriters by a lock-up agreement or other agreement in customary form. Notwithstanding anything else herein to the contrary, this Section 7 shall not be construed so as to prohibit the Grantee from participating in a
registration or a public offering of the Common Shares with respect to any shares which he or she may hold at that time, provided, however, that such participation shall be at the sole discretion of the Board. 
  

	8.	Notices. 

 Any notice to be given under the
terms of this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such
other address as either party may hereafter designate in writing to the other. Any such notice shall be given only when received, but if the Grantee is no longer employed by the Corporation or a Subsidiary, shall be deemed to have been duly given
five business days after the date mailed in accordance with the foregoing provisions of this Section 8. 
  

	9.	Plan. 

 The Option and all rights of the
Grantee under this Option Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated 
  

 5 

 herein by this reference. In the event of a conflict or inconsistency between the terms and conditions of this Option
Agreement and of the Plan, the terms and conditions of the Plan shall govern. The Grantee agrees to be bound by the terms of the Plan and this Option Agreement (including these Terms). The Grantee acknowledges having read and understanding the Plan
and this Option Agreement. Unless otherwise expressly provided in other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not and shall not be deemed to create any
rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after the
date hereof. 
  

	10.	Entire Agreement. 

 This Option Agreement
(including these Terms) and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Option Agreement
may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely
affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
  

	11.	Governing Law; Limited Rights; Severability. 

 11.1 British Virgin Islands Laws; Construction. This Option Agreement and the Exercise Agreement shall be governed by and construed and enforced in accordance with the laws of the British Virgin Islands without regard to conflict of
law principles thereunder. The terms of the Option grant have resulted from the negotiations of the parties and each of the parties has had an opportunity to obtain and consult with its own counsel. The language of all parts of the Plan, this Option
Agreement (including these Terms) and the Exercise Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the parties. 
 11.2 Limited Rights. The Grantee has no rights as a shareholder of the Corporation with respect to the Option as set forth in Section 8.7 of
the Plan. The Option does not place any limit on the corporate authority of the Corporation as set forth in Section 8.12 of the Plan. 
 11.3 Severability. If the arbitrator selected in accordance with Section 12.2 or a court of competent jurisdiction determines that any portion of this Option Agreement, the Plan, or the Exercise Agreement is in violation of any
statute or public policy, then only the portions of this Option Agreement, the Plan, or the Exercise Agreement, as applicable, which violate such statute or public policy shall be stricken, and all portions of this Option Agreement, the Plan, and
the Exercise Agreement which do not violate any statute or public policy shall continue in full force and effect. Furthermore, it is the parties’ intent that any court order striking any portion of this Option Agreement, the Plan, and/or the
Exercise Agreement should modify the stricken terms as narrowly as possible to give as much effect as possible to the intentions of the parties hereunder. 
  

 6 

	12.	Arbitration. 

 12.1 Any dispute,
controversy or claim arising out of or in connection with or relating to this Option Agreement, or the interpretation, breach, termination or validity hereof, shall be resolved through arbitration. A dispute may be submitted to arbitration upon the
request of either party with written notice to the other (the “Notice”). The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “Centre”). There
shall be three (3) arbitrators. Each party shall nominate one (1) arbitrator within thirty (30) days after the delivery of the Notice to the other party. The appointment of party nominated arbitrators shall be confirmed by the Centre.
Both arbitrators shall agree on the third arbitrator within thirty (30) days of their confirmation by the Centre. Should either party fail to appoint an arbitrator or should the two arbitrators fail within thirty (30) days to reach
agreement on the third arbitrator, such arbitrator shall be appointed by the Secretary General of the Centre. 
 12.2 The arbitration
proceedings shall be conducted in English. The arbitration tribunal shall apply the UNCITRAL Arbitration Rules as administered by the Centre at the time of the arbitration. However, if such rules conflict with the provisions of this
Section 12.2, including the provisions concerning the appointment of an arbitrator(s), the provisions of this Section 12.2 shall prevail. 
 12.3 The arbitrators shall decide any dispute submitted by the parties strictly in accordance with the substantive laws of the British Virgin Islands and shall not apply any other substantive law. 
 12.4 Each party shall cooperate with the other in making full disclosure of and providing complete access to all information and documents
requested by the other in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such party. 
 12.5 The costs of arbitration shall be borne by the losing party, unless otherwise determined by the arbitration tribunal. 
 12.6 When any dispute occurs and when any dispute is under arbitration, except for the matters in dispute, the parties shall continue to fulfill their respective obligations and shall be entitled to exercise their rights under this
Agreement. 
 12.7 The award of the arbitration tribunal shall be final and binding upon the parties, and the prevailing party may
apply to a court of competent jurisdiction for enforcement of such award. 
  

	13.	Shareholder Approval. 

 Notwithstanding
anything else contained herein to the contrary, the Option and all rights of the Grantee under this Option Agreement are subject to approval of the Plan by the Corporation’s shareholders (such approval to be obtained in accordance with the
terms of the Plan, the Corporation’s Memorandum and Articles of Association, and applicable law) within 12 months after the Effective Date of the Plan. 
  

 7 

	14.	Satisfaction of All Rights to Equity. 

 The
Option is in complete satisfaction of any and all rights that the Grantee may have (under an employment, consulting, or other written or oral agreement with the Corporation or any of its Affiliates, or otherwise) to receive (1) options or share
awards with respect to the securities of the Corporation or any of its Affiliates, and/or (2) any other equity or derivative security in or with respect to the Corporation or any of its Affiliates. This Option Agreement supersedes the terms of
all prior understandings and agreements, written or oral, of the parties with respect to such matters. The Grantee shall have no further rights or benefits under any prior agreement conveying any right with respect to any security or derivative
security in or with respect to the Corporation or any of its Affiliates. The foregoing notwithstanding, this Section 14 shall not adversely affect the Grantee’s rights under any prior option or share award agreement under the Plan
(provided such agreement is expressly labeled as an option or share award agreement under the Plan and is similar in form to this Option Agreement) which has been signed by an authorized officer of the Corporation. 
  

	15.	Effect of this Agreement. 

 This Option
Agreement shall be assumed by, be binding upon and inure to the benefit of any successor or successors to the Corporation. 
  

	16.	Counterparts. 

 This Option Agreement may be
executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  

	17.	Section Headings. 

 The section headings of
this Option Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 
 [Remainder
of page intentionally left blank] 
  

 8 

 EXHIBIT A 
 CHINA DRTV, INC. 
 AMENDED AND RESTATED 2005 SHARE INCENTIVE PLAN

 OPTION EXERCISE AND COMMON SHARE PURCHASE AGREEMENT 
 The undersigned (the “Purchaser”) hereby irrevocably elects to exercise his/her right, evidenced by that certain Option Agreement dated
as of
                                        
(the “Option Agreement”) under the amended and restated China DRTV Inc. 2005 Share Incentive Plan (the “Plan”), as follows: 
  

	 	•	 	the Purchaser hereby irrevocably elects to purchase
                                     Common Shares (the
“Shares”), of China DRTV Inc., an international business company formed under the laws of the British Virgin Islands (the “Corporation”), and 

  

	 	•	 	such purchase shall be at the price of $                     per share,
for an aggregate amount of $                     (subject to applicable withholding taxes pursuant to Section 8.5 of the Plan).

 Capitalized terms are defined in the Plan if not defined herein. 
 1. Delivery of Share Certificate. The Purchaser requests that a certificate representing the Shares be registered to Purchaser and delivered to:
                                        
                                        
                                        
                                        
                                 
                                       
                                        
                                        
                                        
                                        
              . 
 2. Investment Representations. The
Purchaser acknowledges that the sale of the Shares by the Purchaser is restricted by Securities and Exchange Commission Rule 701. The Purchaser hereby affirms as made as of the date hereof the representations in Section 6 of the “Terms and
Conditions of Option” (which are attached to and a part of the Option Agreement, the “Terms”) and such representations are incorporated herein by this reference. The Purchaser represents that he/she has no need for liquidity in
this investment, has the ability to bear the economic risk of this investment, and can afford a complete loss of the purchase price for the Shares. 
 The Purchaser acknowledges receipt of the Corporation’s condensed consolidated financial information. 
 3. Limitation on
Disposition and Other Restrictions. The Shares are subject to and the Purchaser hereby agrees to the following terms and conditions of the sale of the Shares to the Purchaser: 
  

	 	•	 	any transfer of the Shares must comply with the restrictions on transfer set forth in Section 5.7 of the Plan and all applicable laws as set forth in Section 8.1 of the
Plan; 

  

	 	•	 	the Shares are subject to, and following any otherwise permitted transfer of the Shares, the Shares shall remain subject to and the transferee shall be bound by, the lock-up
provisions set forth in Section 7 of the Terms, the foregoing provisions of this Section 3 and the arbitration provisions of Section 12 of the Terms; and 

  

	 	•	 	as a condition to any otherwise permitted transfer of the Shares, the Corporation may require the transferee to execute a written agreement, in a form acceptable to the
Administrator, that the transferee acknowledges and agrees to the foregoing terms and restrictions imposed on the Shares. 

 4. Plan and Option Agreement. The Purchaser acknowledges that all of his/her rights are subject
to, and the Purchaser agrees to be bound by, all of the terms and conditions of the Plan and the Option Agreement (including the Terms), both of which are incorporated herein by this reference. If a conflict or inconsistency between the terms and
conditions of this Option Exercise and Common Share Purchase Agreement and of the Plan or the Option Agreement shall arise, the terms and conditions of the Plan and/or the Option Agreement shall govern. The Purchaser acknowledges receipt of a copy
of all documents referenced herein (including the Terms and a disclosure statement) and acknowledges reading and understanding these documents and having an opportunity to ask any questions that he/she may have had about them. Any controversy or
claim arising out of or relating to this Option Exercise and Common Share Purchase Agreement shall be submitted to arbitration in accordance with Section 12.2 of the Terms, and the British Virgin Islands laws shall apply as provided in
Section 11.1 of the Terms. 
 5. Entire Agreement. This Option Exercise and Common Share Purchase Agreement, the Option Agreement
(including the Terms), and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan, the Option Agreement and
this Option Exercise and Common Share Purchase Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof
or of the Option Agreement in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any
other provision hereof. 
 6. Notice of Sale of ISO Shares. If the Shares are being acquired upon exercise of an Option intended to
qualify as an Incentive Stock Option, the Purchaser agrees that, upon any sale or other transfer of the Shares within either one year of the date that they are acquired by the Purchaser or two years after the Award Date set forth in the Option
Agreement, the Purchaser shall provide the notice required under Section 5.1.2 of the Plan. 
  

							
	“PURCHASER”	 		 	 ACCEPTED BY:
 CHINA DRTV,
INC.,

	  
 Signature
	 		 	 an international business company formed
 under the laws of the British Virgin Island

				
	  
 Print Name
	 		 	 By:
	 	  

				
	  
 Date
	 		 	 Its:
	 	  

			
		 		 	(To be completed by the company after the price (including applicable withholding taxes), value (if applicable) and receipt of funds is verified.)

 ACORN INTERNATIONAL, INC. 
 2006 EQUITY INCENTIVE PLAN 
 SHARE APPRECIATION RIGHTS AWARD AGREEMENT

 THIS SHARE APPRECIATION RIGHTS AWARD AGREEMENT (this “Award Agreement”) dated
                                        
by and between ACORN INTERNATIONAL, INC., a company formed under the laws of the Cayman Islands (the “Corporation”), and
                                        
(the “Grantee”) evidences the award (the “Award”) granted by the Corporation to the Grantee of the number of share appreciation rights (the “SARs”) first set forth below. 
  

													
	 	 	  	  	  	  	  	  	  	  	  	 	  
	  	 	Number of SARs:1	  	  	  	 	  	Award Date:	  	  	 	  
	 	 		  		  		  		  		 	 
	 	 	 Base Price per SAR:1
	  	$            	  		  	Expiration Date:1,2	  	  	 	 
	 	 		  		  		  		  		 	 
	 	 	Vesting1,2 The Award is subject to time-based and performance-based vesting requirements as set forth in Section 1 of the attached Terms and Conditions of Share Appreciation Rights (the
“Terms”) attached to this Award Agreement (incorporated herein by this reference).
	  	 	  	  	  	  	  	  	  	  	  	 	  

 The Award is granted under the Acorn International, Inc. 2006 Equity Incentive Plan (the
“Plan”) and subject to the Terms and to the Plan. The Award has been granted to the Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. Capitalized terms are
defined in the Plan if not defined herein. The parties agree to the terms of the Award set forth herein. The Grantee acknowledges receipt of a copy of the Terms, the Plan and the Prospectus for the Plan. 
  

			
	“GRANTEE”	  	ACORN INTERNATIONAL, INC.
	  	  	 a company formed under the laws of the Cayman
Islands 
  

	Signature	  	By:                                      
                                        
                   
		  	
		  	
		  	Print
Name:                                       
                                        
 
	  	  	
	Print Name	  	Title:                                     
                                        
                

 CONSENT OF SPOUSE 
 In consideration of the Corporation’s execution of this Award Agreement, the undersigned spouse of the Grantee agrees to be bound by all of the
terms and provisions hereof and of the Plan. 
  

							
	  	 		 	  	  	
	Signature of Spouse	 		 	Date	  	

  

	1	Subject to adjustment under Section 7.1 of the Plan. 

	2	Subject to early termination under Section 4 of the Terms and Section 7.4 of the Plan. 

 TERMS AND CONDITIONS OF SHARE APPRECIATION RIGHTS 
  

	1.	Vesting; Limits on Exercise. 

 1.1    [Performance-Based Vesting. Notwithstanding any other provision herein, no portion of the Award shall vest and become exercisable, and no SARs shall be payable hereunder, unless the Adjusted Net
Income (as defined below) of the Corporation for its [2006/2007] fiscal year equals or exceeds the amount set for on [Schedule 1/Schedule 2] attached hereto. In respect of any year, “Adjusted Net Income” means net income for that
year as reflected in the Corporation’s audited U.S. GAAP financial statements for that year, excluding any non-cash impairment charges and non-cash stock-based compensation charges and plus or minus, as applicable, the net increase or decrease
in the December 31 aggregate deferred revenue balance for that year compared to the prior year. [For avoidance of doubt, the year-end aggregate deferred revenue balance as of December 31, 2005 is deemed to be zero]. The Administrator shall
adjust the performance goal referred to above to the extent (if any) it determines that the adjustment is necessary or advisable to preserve the intended incentives and benefits to reflect (1) any share split, reverse share split, share
dividend, material change in corporate capitalization, any material corporate transaction (such as a reorganization, combination, separation, merger, acquisition, or any combination of the foregoing), or any complete or partial liquidation of the
Corporation, (2) any change in accounting policies or practices, (3) the effects of any special charges to the Corporation’s earnings, or (4) any other similar special circumstances.]3 
 1.2    Time-Based
Vesting. Subject to early termination of the Award as provided in Section 4 below[, in the event that the performance-based criteria set forth in Section 1.1 above is satisfied], the Award shall vest and become exercisable as to 25% of
the total number of SARs subject to the Award on [May 1, 2007/May 1, 2008/the date of grant]. The remaining 75% of the total number of SARs subject to the Award shall become vested in 36 substantially equal monthly installments thereafter, with the
first installment vesting on [May 31, 2007/May 31, 2008/May 31, 2006] and an additional installment vesting on the last day of each of the 35 months thereafter. The SARs may be exercised only to the extent the SARs are vested and
exercisable.4 
 1.3    Limits on Exercise. The following rules shall apply to any exercise of the SARs pursuant to this Award Agreement: 
  

	 	•	 	Cumulative Exercisability. To the extent that the SARs are vested and exercisable, the Grantee has the right to exercise the SARs (to the extent not previously exercised),
and such right shall continue, until the expiration or earlier termination of the SARs. 

  

	 	•	 	No Fractional SARs. Fractional SARs shall be disregarded, but may be cumulated. 

  

	3	Note – this section to be used only in SAR grants intended to
be dependent on the 2006 and 2007 net income. 

	4	Note – this section to be conformed based on whether or not a performance threshold is included, and which. 

  

 1 

	 	•	 	Minimum Exercise. No fewer than 1001 SARs
may be exercised at any one time, unless the number exercised is the total number at the time exercisable under the Award. 

  

	2.	Continuance of Employment/Service Required; No Employment/Service Commitment. 

 The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable
installment of the Award and the rights and benefits under this Award Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or
mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 4 below or under the Plan. 
 Nothing contained in this Award Agreement or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an
employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any
Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Grantee’s other compensation. 
  

	3.	Exercise and Payment of SARs. 

 3.1    Method of Exercise. The SARs shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Administrator may require pursuant to such administrative exercise
procedures as the Administrator may implement from time to time) of a written notice stating the number of SARs to be exercised pursuant to the Award or by the completion of such other administrative exercise procedures as the Administrator may
require from time to time. 
 3.2    Payment of SARs. 
 (A) Amount. Upon the exercise of the SARs and the attendant surrender of an exercisable portion of the Award, the Grantee will be
entitled to receive payment of an amount (subject to the tax withholding provisions of Section 3.3) determined by multiplying: 
  

	 	•	 	the difference (but not less than zero) obtained by subtracting the Base Price of the SARs being exercised from the per-share fair market value (determined in accordance with the
applicable provisions of the Plan) of the Common Shares of the Corporation as of the date of exercise (the “Exercise Date”), by 

  

	 	•	 	the number of SARs being exercised. 

  

 2 

 (B) Form of Payment. The amount determined under Section 3.2(A) will be paid
to the Grantee on or as soon as administratively practicable after the Exercise Date solely by delivery to the Grantee of a number of Common Shares (either by delivering one or more certificates for such shares or by entering such shares in book
entry form, as determined by the Corporation in its discretion) equal to (i) the amount of the payment determined under Section 3.2(A), divided by (ii) the fair market value of a Common Share as of the Exercise Date. The
Corporation’s obligation to deliver Common Shares with respect to the SARs is subject to the condition precedent that the Grantee or other person entitled under the Plan to receive any shares with respect to the SARs deliver to the Corporation
any representations or other documents or assurances required pursuant to Section 8.1 of the Plan. The Grantee shall have no further rights with respect to any SARs that are paid or that terminate pursuant to Section 4. 
 (C) SARs Not Funded. SARs payable under this Award Agreement will be paid from the general assets of the Corporation, and no
special or separate reserve, fund or deposit will be made to assure payment of the SARs. Neither this Award Agreement nor any action taken pursuant to the provisions of this Award Agreement will create, or be construed to create, a trust of any kind
or a fiduciary relationship between the Corporation and Grantee (or any other person). To the extent that Grantee (or any permitted transferee) acquires a right to receive payment pursuant to any SAR hereunder, such right will be no greater than the
right of any unsecured general creditor of the Corporation. 
 3.3    Tax Withholding. Upon payment of any
SAR, the Corporation (or the Subsidiary last employing the Grantee) shall have the right at its option to (a) require the Grantee to pay or provide for payment in cash of the amount of any taxes that the Corporation or the Subsidiary may be
required to withhold with respect to such payment and/or distribution, or (b) deduct from any amount payable to the Grantee the amount of any taxes which the Corporation or the Subsidiary may be required to withhold with respect to such payment
and/or distribution. In any case where a tax is required to be withheld in connection with the delivery of Common Shares under this Award Agreement, the Administrator may, in its sole discretion, direct the Corporation or the Subsidiary to reduce
the number of shares to be delivered by (or otherwise reacquire) the appropriate number of whole shares, valued at their then fair market value (with the “fair market value” of such shares determined in accordance with the applicable
provisions of the Plan), to satisfy such withholding obligation at the minimum applicable withholding rates. 
  

	4.	Early Termination of Award. 

 4.1    Possible Termination of Award upon Change in Control. The Award is subject to termination in connection with a Change in Control Event or certain similar reorganization events as provided in
Section 7.4 of the Plan. 
 4.2    Termination of Award upon a Termination of Grantee’s Employment or
Services. Subject to earlier termination on the Expiration Date of the Award or pursuant to Section 4.1 above, if the Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary, the following rules
shall apply (the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary is referred to as the Grantee’s “Severance Date”): 
  

 3 

	 	•	 	other than as expressly provided below in this Section 4.2, (a) the Grantee will have until the date that is 3 months after his or her Severance Date to exercise the Award
(or portion thereof) to the extent that it was vested on the Severance Date, (b) the Award, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Award, to the extent exercisable for the 3-month
period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 3-month period; 

  

	 	•	 	if the termination of the Grantee’s employment or services is the result of the Grantee’s Retirement (as defined below), (a) unless the Administrator shall otherwise
determine within 10 days of the Grantee’s Severance Date, the Award, to the extent not then vested, shall become fully vested as of the Severance Date, (b) the Grantee (or his beneficiary or personal representative, as the case may be)
will have until the date that is 12 months after the Grantee’s Severance Date to exercise the Award, and (c) the Award, to the extent exercisable for the 12-month period following the Severance Date and not exercised during such period,
shall terminate at the close of business on the last day of the 12-month period; 

  

	 	•	 	if the termination of the Grantee’s employment or services is the result of the Grantee’s death or Total Disability (as defined below), (a) the Award, to the extent
not then vested, shall become fully vested as of the Severance Date, (b) the Grantee (or his beneficiary or personal representative, as the case may be) will have until the date that is 12 months after the Grantee’s Severance Date to
exercise the Award, and (c) the Award, to the extent exercisable for the 12-month period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 12-month period; and

  

	 	•	 	if the Grantee’s employment or services are terminated by the Corporation or a Subsidiary for Cause (as defined below), the Award (whether vested or not) shall terminate on the
Severance Date. 

 For purposes of the Award, “Retirement” means a termination of employment or service by the
Grantee that occurs upon or after the Grantee’s attainment of age 65 and in accordance with the retirement policies of the Corporation (or the Subsidiary that employs the Grantee) then in effect. 
 For purposes of the Award, “Total Disability” means a “permanent and total disability” (within the meaning of
Section 22(e)(3) of the Code or as otherwise determined by the Administrator). 
 For purposes of the Award, “Cause”
means that the Grantee: 
  

	 	(1)	has been negligent in the discharge of his or her duties to the Corporation or any of its Subsidiaries, has refused to perform stated or assigned duties or is incompetent in or
(other than by reason of a disability or analogous condition) incapable of performing those duties; 

  

 4 

	 	(2)	has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of confidentiality, an unauthorized disclosure or use of inside information, customer
lists, trade secrets or other confidential information; has breached a fiduciary duty, or willfully and materially violated any other duty, law, rule, regulation or policy of the Corporation, any of its Subsidiaries or any affiliate of the
Corporation or any of its Subsidiaries; or has been convicted of a felony or misdemeanor (other than minor traffic violations or similar offenses); 

  

	 	(3)	has materially breached any of the provisions of any agreement with the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; or

  

	 	(4)	has engaged in unfair competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of, the Corporation, any of its Subsidiaries or
any affiliate of the Corporation or any of its Subsidiaries; has improperly induced a vendor or customer to break or terminate any contract with the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries;
or has induced a principal for whom the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries acts as agent to terminate such agency relationship. 

 In all events the Award is subject to earlier termination on the Expiration Date of the Award or as contemplated by Section 4.1. The Administrator
shall be the sole judge of whether the Grantee continues to render employment or services for purposes of this Award Agreement. 
  

	5.	Non-Transferability. 

 The Award and any
other rights of the Grantee under this Award Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set forth in Section 5.7 of the Plan. 
  

	6.	Notices. 

 Any notice to be given under the
terms of this Award Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such
other address as either party may hereafter designate in writing to the other. Any such notice shall be delivered in person or shall be enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage
and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Grantee is no longer employed by the Corporation or
a Subsidiary, shall be deemed to have been duly given five business days after the date mailed in accordance with the foregoing provisions of this Section 6. 
  

 5 

	7.	Plan. 

 The Award and all rights of the
Grantee under this Award Agreement are subject to the terms and conditions of the Plan, incorporated herein by this reference. The Grantee agrees to be bound by the terms of the Plan and this Award Agreement (including these Terms). The Grantee
acknowledges having read and understanding the Plan, the Prospectus for the Plan, and this Award Agreement. Unless otherwise expressly provided in other sections of this Award Agreement, provisions of the Plan that confer discretionary authority on
the Board or the Administrator do not and shall not be deemed to create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate
action of the Board or the Administrator under the Plan after the date hereof. 
  

	8.	Entire Agreement. 

 This Award Agreement
(including these Terms) and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Award Agreement
may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely
affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
  

	9.	Governing Law. 

 This Award Agreement shall
be governed by and construed and enforced in accordance with the laws of the Cayman Islands without regard to conflict of law principles thereunder. 
  

	10.	Effect of this Agreement. 

 Subject to the
Corporation’s right to terminate the Award pursuant to Section 7.4 of the Plan, this Award Agreement shall be assumed by, be binding upon and inure to the benefit of any successor or successors to the Corporation. 
  

	11.	Counterparts. 

 This Award Agreement may be
executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  

	12.	Section Headings. 

 The section headings of
this Award Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 
  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]