Document:

English Translation of a
Chinese document

    

    

    
      Exhibit
10.34

    

    
      
        

      

    

    Brand
Usage Authorization Contract

    

    [English
translation for reference only]

    

    Form
prepared by the Trademark Bureau of the State Administration of Industry &
Commerce (“SAIC”)

    

    In
accordance with the Trademark Law of the People’s Republic of China, TCL Business System
Technology (Huizhou) Co Ltd (“Assignor”) and Guanke (Fujian) Electron
Technological Industry Co Ltd (“Assignee”) have entered into the Brand
Usage Authorization Contract for the usage of the TCL brand for manufacturing
and distribution of the LCD displays during June 2010 and June 2013. The
Assignor and the Assignee may renew the contract when it is
expired.

    

    1
Verified business scope of the Assignee

    LCD
Monitor

    

    2
Quantity of manufacturing

    Quantity
of the manufacturing shall be based on the purchase orders placed by the
Assignor

    

    3
Trademark printing

    The
trademark shall be printed by the Assignee in compliance with the requirements
by the Assignor

    

    4 Name of
the Assignee

    Guanke
(Fujian) Electron Technological Industry Co Ltd

    

    5 Charges
of the brand usage

    There is
no charge in connection with the usage of the brand because the Assignee is the
OEM partner for the Assignor

    

    6 Quality
and standard

    Products
manufactured by the Assignee shall be up to the national standards

    

    7 Quality
assurance and liability

    The
Assignee shall take the liabilities in connection with the quality of the
products

    

    8 Default
liability

    Confrontations
arising from the contract shall be resolved through friendly consultation
between the Assignor and the Assignee

    

    9
Others

    The
contract shall take effect from the date of signing by the two
parties

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      English Translation of a
Chinese document

      

      Exhibit
10.34

    

    
      
        

      

    Assignor
(Chop): TCL Business System Technology (Huizhou) Co Ltd

    Address:
Zhongkai High-tech Zone, Huizhou city, Guangzhou Province

    

    Assignee
(Chop): Guanke (Fujian) Electron Technological Industry Co Ltd

    Address:
Houlin Community, Luoshan Street, Jinjiang City, Fujian Province.

    

    Date:
June 3, 2010Exhibit
10.35

    

    SGOCO TECHNOLOGY,
LTD.

     

    2010
EQUITY COMPENSATION PLAN

     

    1.           PURPOSE
OF PLAN

     

    The
purpose of 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 SGOCO Group.

     

    2.           ELIGIBILITY

     

    The
Administrator may grant Awards under this Plan only to those persons that the
Administrator determines to be Eligible Persons; provided, however, that ISOs
may only be granted to an Eligible Person who is an employee of SGOCO
Group.  Notwithstanding the foregoing, a person who is otherwise an
Eligible Person may participate in this Plan only if such participation would
not compromise the Corporation’s ability to comply with Applicable Laws
(including securities laws).  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.  Any Committee of the Board that serves as the
      Administrator shall be comprised solely of one or more directors or such
      number of directors as may be required under Applicable Laws and may
      delegate some or all of its authority to another Committee so
      constituted.  Unless otherwise provided in the 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.

            

    

     

    
      	
               
      

            	
              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 advisable in connection with the authorization of
      Awards and the administration of this Plan (in the case of a Committee,
      within the authority delegated to that Committee or person(s)), including,
      the authority to:

            

    

     

    
      	
               
      

            	
              3.2.1

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

            

    

     

    
      	
               
      

            	
              3.2.2

            	
              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, performance and/or
      time-based schedules), or determine that no delayed exercisability or
      vesting is required, establish any applicable performance targets,
      establish the events of termination or reversion of such Awards, and
      determine whether to repurchase any Ordinary Shares acquired by a
      Participant under an Award;

            

    

     

    
      	
               
      

            	
              3.2.3

            	
              approve
      the forms of Award Documents (which need not be identical either as to
      type of Award or among
Participants);

            

    

     

    
      	
               
      

            	
              3.2.4

            	
              construe
      and interpret this Plan and any agreements defining the rights and
      obligations of SGOCO Group and Participants under this Plan and other
      Award Documents, 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;

            

    

     

    
      	
               
      

            	
              3.2.5

            	
              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;

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              3.2.6

            	
              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-year term of such Awards) in such
      circumstances as the Administrator may deem appropriate (including, 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 and
      provided that no such acceleration or extension would result in the
      imposition on any Participant of any taxes, penalties and/or interest
      under Section 409A;

            

    

     

    
      	
               
      

            	
              3.2.7

            	
              adjust
      the number of 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 subject to any required consent under Section 8.6.5 and
      provided that no such adjustment or change would result in the imposition
      on any Participant of any taxes, penalties and/or interest under Section
      409A;

            

    

     

    
      	
               
      

            	
              3.2.8

            	
              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);

            

    

     

    
      	
               
      

            	
              3.2.9

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

            

    

     

    
      	
               
      

            	
              3.2.10

            	
              acquire
      or settle (subject to Sections 7 and 8.6) rights under Awards in cash,
      Shares of equivalent value, or other consideration or in any combination
      thereof;

            

    

     

    
      	
               
      

            	
              3.2.11

            	
              determine
      the Fair Market Value of the Shares or Awards under this Plan from time to
      time and/or the manner in which such value will be
    determined;

            

    

     

    
      	
               
      

            	
              3.2.12

            	
              implement
      a program where (A) outstanding Awards are surrendered or cancelled in
      exchange for Awards of the same type (which may have lower exercise or
      purchase prices and different terms), Awards of a different type, or cash,
      or (B) the exercise or purchase price of an outstanding Award is reduced,
      based in each case on terms and conditions determined by the Administrator
      in its sole discretion;

            

    

     

    
      	
               
      

            	
              3.2.13

            	
              allow
      any Participant other than a U.S. Participant to defer the receipt of the
      payment of cash or the delivery of Shares that would otherwise be due
      under an Award;

            

    

     

    
      	
               
      

            	
              3.2.14

            	
              impose
      such restrictions, conditions or limitations as it determines appropriate
      as to the timing and manner of any resales by or other subsequent
      transfers of any Shares issued as a result of or under an Award,
      including, (A) restrictions under an insider trading policy, and (B)
      restrictions as to the use of a specified brokerage firm for such resales
      or other transfers;

            

    

     

    
      	
               
      

            	
              3.2.15

            	
              implement
      any procedures, steps or additional or different requirements as may be
      necessary to comply with any laws of the PRC that may be applicable to
      this Plan, any Award or any related documents, including, but not limited
      to, foreign exchange laws, tax laws and securities laws of the PRC;
      and

            

    

     

    
      	
               
      

            	
              3.2.16

            	
              make
      all other determinations deemed necessary or advisable for administering
      the Plan.

            

    

     

    
      	
               
      

            	
              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 Laws
      shall be within the absolute discretion of that entity or body and shall
      be final, binding and conclusive upon all persons.  Neither the
      Board nor any 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 SGOCO Group in respect of
      any claim, loss, damage or expense (including, 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.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              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 SGOCO Group 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 SGOCO Group or to third
      parties.

            

    

     

    4.           SHARES
SUBJECT TO THE PLAN; SHARE LIMITS

     

    
      	
               
      

            	
              4.1.

            	
              Shares
      Available.  Subject to the provisions of Section 7.1, the
      capital stock that may be delivered under this Plan shall be the
      Corporation’s authorized but unissued
Shares.

            

    

     

    
      	
               
      

            	
              4.2.

            	
              Share
      Limit.  Subject to Sections 4.3, Section 7.1 and Section
      8.10, the maximum number of Shares that may be delivered pursuant to
      Awards under this Plan is equal to  7% of the aggregate number
      of Shares outstanding from time to
time.

            

    

     

    
      	
               
      

            	
              4.3.

            	
              Awards
      Settled in Cash, Reissue of Awards and Shares.  To the
      extent that an Award is settled in cash or in a form other than Shares,
      the Shares that would have been delivered had there been no such cash or
      other settlement shall not be counted against the Shares available for
      issuance under this Plan.  In the event that Shares are
      delivered in respect of a Dividend Equivalent, Share Appreciation Right,
      Restricted Share Unit or other Award, only the actual number of Shares
      delivered with respect to the Award shall be counted against the share
      limit of this Plan.  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.  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 Shares exchanged by a Participant or
      withheld by SGOCO Group 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.

            

    

     

    
      	
               
      

            	
              4.4.

            	
              Reservation
      of Shares; No Fractional Shares; Minimum Issue.  The
      Corporation shall at all times reserve a number of Shares sufficient to
      cover the Corporation’s obligations and contingent obligations to deliver
      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 shares
      shall be delivered under this Plan.  The Administrator may pay
      cash in lieu of any fractional shares in settlement of Awards under this
      Plan.

            

    

     

    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 SGOCO
      Group.  The following terms and conditions apply to certain of
      the Awards that may be granted under the
Plan:

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.1.1

            	
              Options.  An
      Option is the grant of a right to purchase for a stated price per Share a
      specified number of Shares during a specified period as determined by the
      Administrator.  The Award Document for an Option will indicate
      whether the Option is intended to be an ISO; otherwise it will be deemed
      to be an NSO.  The maximum term of each Option (ISO or NSO)
      shall be ten (10) years.  The per share exercise price for each
      Option intended to be an ISO shall be not less than 100% of the Fair
      Market Value of a Share on the date of grant of the
      Option.  Notwithstanding the foregoing, no ISO may be granted to
      any Participant who at the time of such grant owns more than ten (10) % of
      the total combined voting power of all classes of securities of the
      Corporation, unless (i) the per share exercise price for such ISO is at
      least 110% of the Fair Market Value of a Share on the date the ISO is
      granted and (ii) the date on which such ISO terminates is not later than
      the day preceding the fifth anniversary of the date on which the ISO is
      granted.  The per share exercise price for an NSO shall be
      determined by the Administrator in its discretion; provided, however, that
      the per share exercise price of any NSO granted to a U.S. Participant
      shall be not less than 100% of the Fair Market Value of a Share on the
      date of grant of the Option.  When the 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 5.6.

            

    

     

    
      	
               
      

            	
              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 Shares with
      respect to which ISOs first become exercisable by a Participant in any
      calendar year exceeds $100,000, taking into account both Shares subject to
      ISOs under this Plan and Shares subject to ISOs under all other plans of
      SGOCO Group (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
      NSOs.  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 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).  There shall be
      imposed in any Award Document relating to ISOs such other terms and
      conditions as from time to time are required in order that the Option be
      an “incentive stock option” as that term is defined in Section 422 of the
      Code.

            

    

     

    
      	
               
      

            	
              5.1.3

            	
              Share Appreciation
      Rights.  A Share Appreciation Right is a right to receive
      a payment, in cash and/or Shares as specified in the Award or determined
      by the Administrator, equal to the excess of the Fair Market Value of a
      specified number of Shares on the date the Share Appreciation Right is
      exercised over the Base Price as set forth in the applicable Award
      Document.  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
      Event 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 the Shares during a specified period or at a specified time
      within a specified period before, after or including the date of such
      event; provided that the terms of any such limited Share Appreciation
      Rights are established by the Administrator at the time of grant and
      comply with the distribution rules under Section
  409A.

            

    

     

    
      	
               
      

            	
              5.1.4

            	
              Restricted
      Shares.  Restricted Shares are Shares subject to
      restrictions on transfer and such other restrictions as the Administrator,
      in its sole discretion, may deem necessary or advisable.  Each
      Award of Restricted Shares will be evidenced by an Award Document that
      will specify the Period of Restriction, the number of Shares granted, and
      such other terms and conditions as the Administrator, in its sole
      discretion, will determine.  Notwithstanding the foregoing, the
      Administrator, in its discretion, may accelerate the time at which any
      restrictions will lapse or be removed.  During the Period of
      Restriction, the holder of such Award will be entitled to receive all
      dividends and other distributions paid with respect to such Shares unless
      otherwise provided in the Award Document.  If any such dividends
      or distributions are paid in Shares, the Shares will be subject to the
      same restrictions on transferability and forfeitability as the Restricted
      Shares with respect to which they were
paid.

            

    

     

    
      	
               
      

            	
              5.1.5

            	
              Restricted Share
      Units.  Restricted Share Units consist of a Restricted
      Share, Performance Share or Performance Unit Award that the Administrator,
      in its sole discretion, permits to be paid out either in cash or in Shares
      in installments or on a deferred basis, in accordance with Section
      5.5.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.2.

            	
              Performance-Based
      Awards.  Without limiting the generality of the
      foregoing, any of the types of Awards above may be granted as
      Performance-Based Awards in the form of Performance Units, Performance
      Shares, Options or Share Appreciation Rights.  Each Performance
      Unit will have an initial value that is established by the Administrator
      on or before the date of grant.  Each Performance Share will
      have an initial value equal to the Fair Market Value of a Share on the
      date of grant.  The grant, vesting, exercisability or payment of
      Performance-Based Awards may depend on the degree of achievement of one or
      more performance goals relative to a pre-established targeted level or a
      level using one or more of the Business Criteria (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.

            

    

     

    
      	
               
      

            	
              5.2.1

            	
              Performance
      Goals.  The specific performance goals and the applicable
      performance measurement period for Performance-Based Awards shall be
      determined by the Administrator in its sole
      discretion.  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.

            

    

     

    
      	
               
      

            	
              5.2.2

            	
              Earning of Performance-Based
      Awards.  After the applicable performance period has
      ended, the holder of Performance-Based Awards will be entitled to receive
      a payout of the number of Performance-Based Awards earned by the
      Participant over the performance period, to be determined as a function of
      the extent to which the corresponding performance objectives have been
      achieved.  After the grant of a Performance-Based Award, the
      Administrator, in its sole discretion, may revise, reduce or waive any
      performance objectives for such Performance-Based
  Awards.

            

    

     

    
      	
               
      

            	
              5.2.3

            	
              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, but not to increase Awards, directly or indirectly, 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.

            

    

     

    
      	
               
      

            	
              5.3.

            	
              Award
      Documents.  Each Award shall be evidenced by an Award
      Document 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 Documents on behalf of the
      Corporation.

            

    

     

    
      	
               
      

            	
              5.4.

            	
              Date
      of Grant.  The date of grant of an Award will be, for all
      purposes, the date on which the Administrator makes the determination
      granting such Award, or such other later date as is determined by the
      Administrator and specified in the Award.  Notice of the
      determination will be provided to each Participant within a reasonable
      time on or after the date of such
grant.

            

    

     

    
      	
               
      

            	
              5.5.

            	
              Share
      Deferrals and Settlements.  Payment of Awards may be in
      the form of cash, Shares, 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; provided, however, that no U.S. Participant shall be permitted
      to make any such election to defer, unless the rules and procedures
      providing for such election comply with the deferral elections
      requirements under Section 409A.  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.  Notwithstanding any other provision of
      the Plan or any agreement entered into by SGOCO Group pursuant to the
      Plan, SGOCO Group shall not be obligated, and shall have no liability for
      failure to deliver any Shares under the Plan unless the issuance and
      delivery of Shares comply with (or are exempt from) all Applicable Laws,
      including, the Securities Act, U.S. state securities laws and regulations,
      and the requirements of any securities exchange or quotation system on
      which the Shares may then be listed or quoted, and shall be further
      subject to the approval of counsel for SGOCO Group with respect to such
      compliance.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              5.6.

            	
              Consideration
      for Shares or Awards.  The exercise or purchase price for
      any Award or the 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, one or a combination of the following
      methods:

            

    

     

    
      	
               
      

            	
              5.6.1

            	
              other
      than for the exercise or purchase price for any Award, services rendered
      by the recipient of such Award;

            

    

     

    
      	
               
      

            	
              5.6.2

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

            

    

     

    
      	
               
      

            	
              5.6.3

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

            

    

     

    
      	
               
      

            	
              5.6.4

            	
              delivery
      of previously owned Shares;

            

    

     

    
      	
               
      

            	
              5.6.5

            	
              reduction
      in the number of Shares otherwise deliverable pursuant to the Award;
      or

            

    

     

    
      	
               
      

            	
              5.6.6

            	
              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 Shares newly issued by the Corporation be issued for less than
the minimum lawful consideration for such Shares or for consideration other than
consideration permitted by Applicable Laws.  In the event that the
Administrator allows a Participant to exercise an Award by delivering Shares
previously owned by such Participant and unless otherwise expressly provided by
the Administrator, any shares delivered which were initially acquired by the
Participant from the Corporation (upon exercise of an Option or otherwise) must
have been owned by the Participant at least six months as of the date of
delivery.  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 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 Document, the Administrator
may at any time eliminate or limit a Participant’s ability to pay the purchase
or exercise price of any Award or Shares by any method other than cash payment
to the Corporation.  The Administrator may take all actions necessary
or advisable to alter the method of exercise of Awards and the exchange and
transmittal of proceeds with respect to Participants who are subject to the
jurisdiction of PRC laws and regulations in order to comply with applicable PRC
foreign exchange and tax regulations.  A Participant may be required
to provide evidence that any currency used to pay the exercise price of any
Award was acquired and taken out of the jurisdiction in which the Participant
resides in accordance with Applicable Laws, including foreign exchange control
laws and regulations.  In the event the exercise price for an Award is
paid in Renminbi or other foreign currency, as permitted by the Administrator,
the amount payable will be determined by conversion from U.S. dollars at the
official rate promulgated by the People’s Bank of China for Renminbi, or for
jurisdictions other than the PRC, the exchange rate as selected by the
Administrator on the date of exercise.

     

    
      	
               
      

            	
              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 Laws and by the Award
      Document, 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 comply with Applicable Laws (including securities
      laws).  Notwithstanding the foregoing or anything in Section
      5.7.3, ISOs 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.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              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;

            

    

     

    
      	
               
      

            	
              (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 SGOCO Group outside of the PRC or 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 of a Participant 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 Board expressly otherwise provides, if the
      Participant is not an employee of SGOCO Group and provides other services
      to SGOCO Group, 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 SGOCO Group and the date,
      if any, upon which such services shall be deemed to have
      terminated.  Unless the Board 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 SGOCO Group terminates, the Administrator shall have the
      discretion to determine whether and the extent to which the unvested and
      unexercisable portion of the Option shall terminate, and (2) any Shares
      subject to a Restricted Share or Restricted Share Unit Award that remain
      subject to restrictions at the time the Participant’s employment by or
      service to SGOCO Group terminates shall not vest and SGOCO Group shall
      have the right to reacquire any such unvested Shares subject to such Award
      in such manner and on such terms as the Administrator provides, which
      terms shall include repayment of the lower of the Fair Market Value and
      the original purchase price of the Restricted Shares, without interest, to
      the Participant to the extent not prohibited by Applicable
      Laws.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              6.2.

            	
              Events
      Not Deemed Terminations of Service.  Unless SGOCO Group
      policy or the Administrator otherwise provides, the employment
      relationship shall not be considered terminated in the case of (a) sick
      leave, (b) military leave, or (c) any other leave of absence authorized by
      SGOCO Group or the Administrator; provided that unless reemployment upon
      the expiration of such leave is guaranteed by contract or Applicable Laws,
      such leave is for a period of not more than 90 days.  In the
      case of any employee of SGOCO Group on an approved leave of absence,
      continued vesting of the Award while on leave from the employ of SGOCO
      Group may be suspended until the employee returns to service, unless the
      Administrator otherwise provides or Applicable Laws otherwise
      requires.  In no event shall an Award be exercised after the
      expiration of the term set forth in the applicable Award
      Document.

            

    

     

    
      	
               
      

            	
              6.3.

            	
              Effect
      of Change of Affiliate Status.  For purposes of this Plan
      and any Award, if an entity ceases to be an Affiliate 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 Affiliate who does
      not continue as an Eligible Person in respect of another entity within
      SGOCO Group after giving effect to the Affiliate’s change in
      status.

            

    

     

    7.           ADJUSTMENTS;
ACCELERATION

     

    
      	
               
      

            	
              7.1.

            	
              Adjustments.  Upon
      or in contemplation of: any reclassification, recapitalization, stock
      split (including a stock split in the form of a stock dividend) or reverse
      stock split; any merger, combination, consolidation, or other
      reorganization; any spin-off, split-up, or similar extraordinary dividend
      distribution in respect of the Shares (whether in the form of securities
      or property); any exchange of Shares or other securities of the
      Corporation, or any similar, unusual or extraordinary corporate
      transaction in respect of Shares; 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, take any
      of the following actions:

            

    

     

    
      	
               
      

            	
              7.1.1

            	
              proportionately
      adjust any or all of (1) the number and type of 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 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) the performance
      standards applicable to any outstanding
Awards,

            

    

     

    
      	
               
      

            	
              7.1.2

            	
              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 Shares upon or in respect of such
  event,

            

    

     

    
      	
               
      

            	
              7.1.3

            	
              cancel
      or cause to be canceled any Award that is not vested, exercisable or
      exercisable at an amount in excess of the Fair Market
    Value.

            

    

     

    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 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 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 stock split or reverse stock split, if
no action is taken by the Administrator, the proportionate adjustments
contemplated by clause (a) above shall nevertheless be made.

     

    
      	
               
      

            	
              7.2.

            	
              Automatic
      Acceleration of Awards.  Upon a dissolution of the
      Corporation or other event described in Section 7.1 that the Corporation
      does not survive (or does not survive as a public company in respect of
      its Shares), then each then outstanding Option and Share Appreciation
      Right exercisable at a price below the then current Fair Market Value
      shall become fully vested, all Restricted Shares or Restricted Share Units
      then outstanding shall fully vest free of restrictions, and each other
      Award granted under this Plan that is then outstanding shall become
      payable to the holder of such Award; provided that such acceleration
      provision shall not apply, unless otherwise expressly provided by the
      Administrator, with respect to any Award to the extent that the
      Administrator has made a provision for the substitution, assumption,
      exchange or other continuation or settlement of the Award, or the Award
      would otherwise continue in accordance with its terms, in the
      circumstances.

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              7.3.

            	
              Possible
      Acceleration of Awards.  Without limiting Section 7.2, in
      the event of a Change in Control Event, the Administrator may, in its
      discretion, provide that any outstanding Option or Share Appreciation
      Right exercisable at a price below the then current Fair Market Value
      shall become fully vested, that any Restricted Shares and Restricted Share
      Units then outstanding shall fully vest free of restrictions, and that any
      other Award granted under this Plan that is then outstanding shall be
      payable to the relevant Participant.  The Administrator may take
      such action with respect to all Awards then outstanding or only with
      respect to certain specific Awards identified by the Administrator in the
      circumstances.

            

    

     

    
      	
               
      

            	
              7.4.

            	
              Early
      Termination of Awards.  Any Award that has been
      accelerated as required or contemplated by Section 7.2 or 7.3 (or would
      have been so accelerated but for Section 7.5, 7.6 or 7.7) shall terminate
      upon the related event referred to in Section 7.2 or 7.3, 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 exercisable at a price below the then current
      Fair Market Value 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).

            

    

     

    
      	
               
      

            	
              7.5.

            	
              Other
      Acceleration Rules.  Any acceleration of Awards pursuant
      to this Section 7 shall comply with Applicable Laws 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 Sections 7.2, 7.3, 7.4 and/or 7.6 by express provision in
      the Award Document and may accord any Participant a right to refuse any
      acceleration, whether pursuant to the Award Document or otherwise, in such
      circumstances as the Administrator may approve.  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 an
NSO.

            

    

     

    
      	
               
      

            	
              7.6.

            	
              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.

            

    

     

    
      	
               
      

            	
              7.7.

            	
              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 SGOCO Group 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 SGOCO Group 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 to the extent permitted by the regulations under Section 409A, the
      Participant may by written notice to SGOCO Group designate the order in
      which such parachute payments will be reduced or modified so that SGOCO
      Group 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, by specific reference to the Code Section 280G
      limitations, for benefits in excess of amounts determined by applying the
      foregoing Section 280G limitations.

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    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 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 Laws,
      including securities laws to such approvals by any listing, regulatory or
      governmental authority as may, in the opinion of counsel for SGOCO Group,
      be necessary or advisable in connection therewith.  The person
      acquiring any securities under this Plan will, if requested by SGOCO
      Group, provide such assurances and representations to SGOCO Group as the
      Administrator may deem necessary or advisable to assure compliance with
      all Applicable Laws and applicable accounting
  requirements.

            

    

     

    
      	
               
      

            	
              8.2.

            	
              No
      Rights to Awards.  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 Document)
      shall confer upon any Eligible Person or other Participant any right to
      continue in the employ or other service of SGOCO Group, 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 SGOCO Group 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
      Document.

            

    

     

    
      	
               
      

            	
              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 Shares, except as expressly otherwise provided)
      of SGOCO Group 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 SGOCO Group 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 SGOCO
Group.

            

    

     

    
      	
               
      

            	
              8.5.

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

            

    

     

    
      	
               
      

            	
              8.5.1

            	
              require
      the Participant to pay or provide for payment of at least the minimum
      amount of any taxes which SGOCO Group may, in the opinion of counsel for
      SGOCO Group, be required to withhold with respect to such Award event or
      payment; or

            

    

     

    
      	
               
      

            	
              8.5.2

            	
              deduct
      from any amount otherwise payable in cash to the Participant (i) the
      minimum amount of any taxes that SGOCO Group may be required to withhold
      with respect to such cash payment and (ii) such additional amount as may
      be required under PRC laws and
regulations.

            

    

     

    In any
case where a tax is required to be withheld (including taxes in the PRC where
applicable) in connection with the delivery of Shares under this Plan (including
the sale of Shares as may be required to comply with foreign exchange rules in
the PRC for Participants who are subject to the jurisdiction of PRC laws and
regulations), 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 Shares
to be delivered by (or otherwise reacquire) the appropriate number of 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 Shares withheld exceed the minimum
whole number of Shares required for tax withholding under Applicable Laws, as
determined by the Administrator.  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 Laws.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              8.6.

            	
              Effective
      Date, Termination and Suspension,
  Amendments.

            

    

     

    
      	
               
      

            	
              8.6.1

            	
              Effective
      Date.  This Plan shall be effective as of the Effective
      Date.  Unless earlier terminated by the Board, (1) no additional
      Awards may be granted under this Plan at the close of business on the day
      before the tenth anniversary of the Effective Date; and (2) no ISOs may be
      granted under this Plan at the close of business on the day before the
      tenth anniversary of the earlier of the Effectve Date or the date this
      Plan is adopted by the Board.  After the termination of
      the  right to make Award under this Plan either upon such stated
      expiration date or its earlier termination by the Board, 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
      Laws, including, pursuant to the requirements of any applicable national
      securities exchange or other listing  requirements or under
      Section 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 or any Award Document shall be subject to shareholder
      approval.

            

    

     

    
      	
               
      

            	
              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
      and subject to the requirements of Sections 3.2, 8.6.3 and 8.6.5, 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, may make other changes to the terms and conditions of
      Awards.

            

    

     

    
      	
               
      

            	
              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 SGOCO Group 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 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, the Award Documents and all
      other related documents shall be governed by, and construed in accordance
      with, the laws of the State of New
York.

            

    

     

    
      	
               
      

            	
              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.

            

    

     

    
      	
               
      

            	
              8.9.

            	
              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.

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              8.10.

            	
              Share-Based
      Awards in Substitution for 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 stock options, share appreciation rights, restricted shares or
      other share-based Awards granted by other entities to persons who are or
      who will become Eligible Persons in respect of SGOCO Group, in connection
      with a distribution, merger or other reorganization by or with the
      granting entity or an affiliated entity, or the acquisition by SGOCO
      Group, directly or indirectly, of all or a substantial part of the stock
      or assets of the employing entity.  The Awards so granted need
      not comply with other specific terms of this Plan, provided that the
      Awards reflect only adjustments giving effect to the assumption or
      substitution consistent with the conversion applicable to the Shares in
      the transaction and any change in the issuer of the
      security.  Any 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 who become employed by SGOCO Group in connection with a
      business or asset acquisition or similar transaction) (a) shall not be
      counted against the share limit set forth in Section 4.2 or other limits
      on the number of shares available for issuance under this Plan and (b)
      need not comply with the exercise price provisions of Section
      5.1.1.

            

    

     

    
      	
               
      

            	
              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
      Shares, under any other plan or
authority.

            

    

     

    
      	
               
      

            	
              8.12.

            	
              No
      Corporate Action Restriction.  The existence of this
      Plan, the Award Documents 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, (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 stock ahead of or affecting the
      capital stock (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 Document 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
      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.

            

    

     

    
      	
               
      

            	
              8.14.

            	
              Section
      409A.  If any provision of the Plan or an Award Document
      contravenes any provision of Section 409A with respect to a Participant or
      could cause a Participant to be subject to accelerated taxation and
      penalties and/or interest under Section 409A (“Penalties”), such provision
      of the Plan or any Award Document shall be automatically modified to avoid
      the imposition of Penalties and to maintain, to the maximum extent
      practicable, the original intent of the applicable
    provision.

            

    

     

    
      	
               
      

            	
              8.15.

            	
              Compliance
      with PRC Laws and Regulations.  When required by PRC laws
      and regulations, Participants who are domestic individuals of the PRC
      shall duly fulfill reporting, registration and other obligations as
      required by such laws and
regulations.

            

    

     

    9.           DEFINITIONS

     

    
      	
               
      

            	
              9.1.

            	
              “Administrator” means the
      Board or one or more Committees appointed by the Board or another
      Committee (within its delegated authority) to administer all or certain
      aspects of this Plan in accordance with Section
  3.

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              9.2.

            	
              “Affiliate” means any
      entity if, at the time of granting of an Award (a) the Corporation,
      directly or indirectly, owns at least 50% of the combined voting power of
      all classes of stock or such entity or at least 50% of the ownership
      interest in such entity, or (b) such entity, directly or indirectly, owns
      at least 50% of the combined voting power of all classes of stock of the
      Corporation.

            

    

     

    
      	
               
      

            	
              9.3.

            	
              “Applicable Laws” means
      any applicable legal requirements relating to the administration of and
      the issuance of securities under equity securities-based compensation
      plans, including, the requirements of U.S. state corporate laws, U.S.
      federal and state securities laws, U.S. federal law, the Code, the laws of
      the Cayman Islands, the laws of the PRC, and any rules or regulations
      thereunder and the requirements of any securities exchange or quotation
      system on which the Shares may then be listed or quoted and the applicable
      laws of any other country or jurisdiction where Awards are granted under
      the Plan.  For all purposes of this Plan, references to statutes
      and regulations shall be deemed to include any successor statutes or
      regulations, to the extent reasonably appropriate as determined by the
      Administrator.

            

    

     

    
      	
               
      

            	
              9.4.

            	
              “Award Document” means
      the written or electronic agreement setting forth the material terms and
      conditions of an Award as established by the Administrator consistent with
      the express limitations of this
Plan.

            

    

     

    
      	
               
      

            	
              9.5.

            	
              “Awards” means,
      individually or collectively (a) Options, Share Appreciation Rights,
      Restricted Shares, Restricted Share Units, Performance Shares, Performance
      Units, Dividend Equivalents, share bonuses, share units, phantom shares,
      or similar rights to purchase or acquire Shares, whether at a fixed or
      variable price or ratio related to the Shares, 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; or (b) any
      similar securities with a value derived from the value of or related to
      the Shares and/or returns thereon.

            

    

     

    
      	
               
      

            	
              9.6.

            	
              “Base Price” means, with
      respect to any Share Appreciation Right, the Fair Market Value of a Share
      on the date such Share Appreciation Right was
  granted.

            

    

     

    
      	
               
      

            	
              9.7.

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

            

    

     

    
      	
               
      

            	
              9.8.

            	
              “Business Criteria” means
      the business criteria applicable to an Award as selected by the
      Administrator in its sole discretion.  Business Criteria may
      include, the following: 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, 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 SGOCO Group’s financial
      reporting.

            

    

     

    
      	
               
      

            	
              9.9.

            	
              “Change in Control Event”
      means any of the following:

            

    

     

    
      	
               
      

            	
              9.9.1

            	
              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 50% or more of either (1) the then-outstanding Shares
      of the Corporation (the “Outstanding Corporation Shares”) 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 Corporation 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 9.9.3 (1), (2) and (3)
  below;

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              9.9.2

            	
              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;

            

    

     

    
      	
               
      

            	
              9.9.3

            	
              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, the acquisition of assets or stock of
      another entity by the Corporation or any of its Subsidiaries, or a scheme
      of arrangement under Section 86 of the Cayman Islands Companies Law, Cap
      22 (Law 3 of 1961, as consolidated and revised) (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 Corporation Shares and the
      Outstanding Corporation Voting Securities immediately prior to such
      Business Combination beneficially own, directly or indirectly, more than
      50% of the then-outstanding ordinary or 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, 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 Corporation Shares and the Outstanding Corporation 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, 50% or more of, respectively, the then-outstanding
      ordinary or 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 50% 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

            

    

     

    
      	
               
      

            	
              9.9.4

            	
              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.

            

    

     

    Anything
in the foregoing to the contrary notwithstanding, a transaction shall not
constitute a Change in Control Event if its sole purpose is to change the legal
jurisdiction of the Corporation’s incorporation or to create a holding company
that will be owned in substantially the same proportions by the Persons who held
the Corporation’s securities immediately before such transaction.  In
addition, a sale by the Corporation of its securities in a transaction, the
primary purpose of which is to raise capital for the Corporation’s operations
and business activities, shall not constitute a Change in Control
Event.

     

    
      	
               
      

            	
              9.10.

            	
              “Code” means the U.S.
      Internal Revenue Code of 1986, as amended.  Any reference to a
      section of the Code herein will be a reference to any successor or amended
      section of the Code.

            

    

     

    
      	
               
      

            	
              9.11.

            	
              “Committee” means a
      committee of the Board or such other individuals satisfying Applicable
      Laws appointed by the Board in accordance with Section
  3.

            

    

     

    
      	
               
      

            	
              9.12.

            	
              “Corporation” means SGOCO
      Technology, Ltd., a company organized under the laws of the Cayman
      Islands, or any successor corporation
thereto.

            

    

     

    
      	
               
      

            	
              9.13.

            	
              “Dividend Equivalent”
      means a credit, made at the discretion of the Administrator, to the
      account of a Participant in an amount equal to the value of dividends paid
      on one Share for each Share represented by an Award held by such
      Participant.

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              9.14.

            	
              “Effective Date” means
      the date of the approval of this Plan by the shareholders of the
      Corporation.

            

    

     

    
      	
               
      

            	
              9.15.

            	
              “Eligible Person” means
      any person who is either: (a) an officer (whether or not a director) or
      employee of SGOCO Group; (b) a director of SGOCO Group; 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 SGOCO Group in a capital-raising transaction or as a market
      maker or promoter of SGOCO Group’s securities) to SGOCO Group and who is
      selected to participate in this Plan by the
  Administrator.

            

    

     

    
      	
               
      

            	
              9.16.

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

            

    

     

    
      	
               
      

            	
              9.17.

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

            

    

     

    
      	
               
      

            	
              9.17.1

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

            

    

     

    
      	
               
      

            	
              9.17.2

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

            

    

     

    
      	
               
      

            	
              9.17.3

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

            

    

     

    Anything
in the foregoing to the contrary notwithstanding, 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, 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) provided, however, that any such methodology
complies with Applicable Laws.

     

    
      	
               
      

            	
              9.18.

            	
              “ISO” means an Option
      intended to qualify as an incentive stock option within the meaning of
      Section 422 of the Code and the regulations promulgated thereunder, as
      designated in the applicable Award
Document.

            

    

     

    
      	
               
      

            	
              9.19.

            	
              “NSO” means an Option not
      intended to qualify as an ISO, as designated in the applicable Award
      Document, or an ISO that does not so qualify or ceases to so
      qualify.

            

    

     

    
      	
               
      

            	
              9.20.

            	
              “Option” means an Award
      granted to an Eligible Person pursuant to Section
  5.1.1.

            

    

     

    
      	
               
      

            	
              9.21.

            	
              “Participant” means an
      Eligible Person that has been granted an Award under the
    Plan.

            

    

     

    
      	
               
      

            	
              9.22.

            	
              “Performance-Based Award”
      means a Performance Unit, Performance Share Option or Share Appreciation
      Right granted to an Eligible Person pursuant to Section
    5.2.

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              9.23.

            	
              “Performance Share” means
      an Award granted to an Eligible Person pursuant to
      Section 5.2.

            

    

     

    
      	
               
      

            	
              9.24.

            	
              “Performance Unit” means
      an Award granted to an Eligible Person pursuant to
      Section 5.2.

            

    

     

    
      	
               
      

            	
              9.25.

            	
              “Period of Restriction”
      means the period during which the transfer of Restricted Shares are
      subject to restrictions and, therefore, the Shares are intended to be
      subject to a substantial risk of forfeiture for U.S. federal income tax
      purposes.  Such restrictions may be based on the passage of
      time, the achievement of target levels of performance, or the occurrence
      of other events as determined by the
  Administrator.

            

    

     

    
      	
               
      

            	
              9.26.

            	
              “Plan” means this SGOCO
      Technology, Ltd. 2010 Equity Compensation
Plan.

            

    

     

    
      	
               
      

            	
              9.27.

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

            

    

     

    
      	
               
      

            	
              9.28.

            	
              “Restricted Share Unit”
      means an Award granted to an Eligible Person pursuant to Section
      5.1.5.

            

    

     

    
      	
               
      

            	
              9.29.

            	
              “Restricted Shares” means
      an Award granted to an Eligible Person pursuant to
      Section 5.1.4.

            

    

     

    
      	
               
      

            	
              9.30.

            	
              “Renminbi” means Chinese
      Renminbi, the official currency of the
PRC.

            

    

     

    
      	
               
      

            	
              9.31.

            	
              “Section 409A” means
      Section 409A of the Code and any regulations and other Treasury guidance
      promulgated thereunder.

            

    

     

    
      	
               
      

            	
              9.32.

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

            

    

     

    
      	
               
      

            	
              9.33.

            	
              “SGOCO Group” means the
      Corporation and its Affiliates,
collectively.

            

    

     

    
      	
               
      

            	
              9.34.

            	
              “Share Appreciation
      Right” means an Award granted to an Eligible Person pursuant to
      Section 5.1.3.

            

    

     

    
      	
               
      

            	
              9.35.

            	
              “Shares” means the
      ordinary shares of the Corporation, par value US $0.001, 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.

            

    

     

    
      	
               
      

            	
              9.36.

            	
              “Subsidiary” means any
      corporation or other entity (i) a majority of whose outstanding voting
      stock or voting power is beneficially owned directly or indirectly by the
      Corporation or (ii) that is controlled by the Corporation directly or
      indirectly by contract or
otherwise.

            

    

     

    
      	
               
      

            	
              9.37.

            	
              “U.S. Participant” means
      a Participant who is a U.S.
taxpayer.

            

    

     

    Certification by
Secretary:

     

    I hereby
certify that the foregoing Plan was duly adopted by the Board of Directors of
SGOCO Technology, Ltd. on September 27 , 2010.

     

    I hereby
certify that the foregoing Plan was approved by the shareholders of SGOCO
Technology, Ltd. on November 17, 2010.

     

    Executed on this day of November 17,
2010.

     

    
      	 
      	 
      
	 
      	
              Xiaoling
      Xu, Corporate Secretary

            

    

    
      
         

      

      
        16

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