Document:

Unassociated Document

    EMPLOYMENT
AGREEMENT

     

    This
EMPLOYMENT AGREEMENT is made as of August 12, 2010 by and between RINO
International Corporation, a Nevada corporation (the "Company"), and Ben Wang
(“Employee”).

     

    WITNESSETH:

     

    WHEREAS,
Employee wishes to be employed by the Company with the duties and
responsibilities as hereinafter described, and the Company desires to assure
itself of the availability of Employee’s services in such capacity.

     

    NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the
Company and Employee hereby agree as follows:

     

    1.         EMPLOYMENT. The
Company hereby agrees to employ Employee, and Employee hereby agrees to serve
the Company, upon the terms and conditions hereinafter set forth.

     

    2.         TERM. The employment
of Employee by the Company pursuant to this Agreement shall be for a thirty-six
(36) month period (subject to earlier termination as provided herein)
commencing on April 27, 2010 (the “Employment Term”).

     

    3.         DUTIES. Employee
shall, subject to overall direction consistent with the legal authority of the
Chief Executive Officer and Chairman of the Board, serve as, and have all power
and authority inherent in the offices of Chief Financial Officer of the
Company and shall be responsible for those areas in the conduct of the business
reasonably assigned to him by the Chief Executive Officer and the Chairman of
the Board. Employee shall devote substantially all of his business time and
efforts to the business of the Company; provided, however, that it is understood
and agreed that, while Employee may devote time to other business matters in
which he may have an interest, in the event of a conflict, Employee’s first and
primary responsibility shall be to the performance of his duties for the
Company.

     

    4.         RESPONSIBILITIES. The
general responsibilities of the chief financial officer (“CFO”)
include,  but are not limited to:  (i) overseeing all
Company accounting practices, including accounting departments, preparing and
reviewing budgets, financial reports, and tax and audit functions; the CFO being
responsible for presenting and reporting accurate and timely historical
financial information of the Company; (ii) supervising investment and
raising of funds for the Company’s business, taking into consideration risk and
liquidity; (iii) overseeing the capital structure of the Company, including
determining the best mix of debt, equity and internal financing;
(iv) directing financial strategy, planning and forecasts and conferring
with the Chief Executive Officer, Chairman of the Board and other executives of
the Company in relation thereto; (v) developing and analyzing business planning
(vi) coordinating with the Company’s auditors and attorneys to ensure the
Company’s compliance with its reporting obligations under U.S .securities laws
and regulations and other relevant laws and regulations; (vii) leading
a  team to design and implement the Company’s internal control systems
so as to be in compliance with Section 404 of the Sarbanes Oxley Act of 2002;
and (viii) performing such other tasks and functions assigned to him from time
to time by the Chief Executive Officer or the Board of Directors of the
Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.         COMPENSATION AND OTHER
PROVISIONS. Employee
shall be entitled to the compensation and benefits hereinafter described in
subparagraphs (A) through (G) (such compensation and benefits being hereinafter
referred to as “Compensation Benefits”).

     

    A. 
ANNUAL BASE SALARY. The
Company shall pay to Employee a base salary (the “Base Salary”) as
follows:

     

              An
amount of RMB 1,000,000 after tax per annum or RMB 83,333 per month, paid
in arrears monthly on the 10th day of each month.

    

    B.  EQUITY COMPENSATION. The
Company shall grant to Employee options to purchase 150,000 shares of the
Company’s common stock at the exercise price of twenty U.S. dollars
($20.00) per share. Each installment of options shall expire on the
fifth anniversary of its vesting date set forth at the end of the next
sentence. Provided that Employee is then employed by the Company, options
to purchase the following number of shares of Common Stock shall first become
exercisable according to the following schedule:

    

    ●    options to
purchase 50,000 shares will vest on April 19, 2011;

     

    ●    options to
purchase 50,000 shares will vest on April 19, 2012; and

     

    ●    options to
purchase 50,000 shares will vest on April 19, 2013.

    

    The
Company and Employee are simultaneously entering into a Non-Qualified Stock
Option Agreement relating to the foregoing grant of options to the Employee and
containing certain additional terms and conditions.

    

    C.  COMPENSATION ADJUSTMENT.
The Base Salary and Employee’s other compensation will be reviewed by the Board
of Directors of the Company (the “Board”) at least annually and may be increased
(but not decreased) from time to time as the Board may determine.

     

    D.  PARTICIPATION IN BENEFIT
PLANS. During the Employment Term, Employee shall be eligible to
participate in all Employee benefit plans and arrangements now in effect or
which may hereafter be established, including, without limitation, all group
insurance and medical care plans and all disability, retirement and other
Employee benefit plans of the Company. Should the Employee not want to
participate in the Company’s health plan, with Board approval (which the Company
does not ensure will be obtained), the Company may reimburse the Employee for
the expense incurred in participating in another plan.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    E.  OTHER PROVISIONS.
During the Employment Term, Employee shall be entitled to four (4) weeks paid
vacation per annum. Employee shall make himself available via email enabled
mobile phone during periods in which he is not in the offices of the
Company. Subject to providing reasonable written documentation thereof and
subject to obtaining advance written approval for any expenditure or series of
related expenditures exceeding $500, Employee shall be reimbursed for all
reasonable expenses incurred by him in the performance of his duties, including,
but not limited to, entertainment, travel and other expenses incurred in
connection with such duties.

      

    F.  INDEMNIFICATION. The
Company shall indemnify and hold harmless Employee to the fullest extent
permitted by law for any action or inaction of Employee while serving as an
officer and director of the Company or, at the Company’s request, as an officer
or director of any other entity affiliated with the Company, or as a fiduciary
of any benefit plan. The Company shall include the Employee under the
Company’s directors’ and officers’ liability insurance in the same amount
and to the same extent as the Company covers its other officers and directors
both (i) during the Employment Term, and (ii) for a one (1) year period after
the Employment Term.

     

    6.         TERMINATION.
Employee’s employment hereunder shall terminate as a result of the occurrence of
any one or more of the following events: 

    

    A.  Employee’s
death;

     

    B.  Employee
shall be, in the good faith judgment of the Chief Executive Officer of the
Company,  unable to perform his duties hereunder by reason of illness,
accident or other physical or mental disability for a continuous period of at
least three (3) months or an aggregate of nine (9) months during any continuous
eighteen (18) month period (“ Disability
”);

     

    C.  Voluntary
resignation by Employee;

    

     D.  Termination for Good
Reason. If any of the following events occurs after the Effective Date,
the Employee may resign from his employment for Good Reason by giving written
notice of resignation within 60 days following such event:

     

    (i)  a material
reduction in the scope of the Employee's assigned duties and responsibilities
from those in effect under this Agreement on the Effective Date or the
assignment of duties or responsibilities that are inconsistent with the
Employee's status in the Company;

     

    (ii)
 the
failure by the Company to continue to provide the Employee with benefits
substantially similar to those specified in Section 5 of this Agreement, unless,
the Company deems it necessary to change such benefits in order to conform to
applicable law.

     

    Any
written notice of resignation for Good Reason shall describe in reasonable
detail the circumstances believed to constitute Good Reason. Notwithstanding
Employee's provision of a notice of resignation for Good Reason, the Company has
a right to remedy or cure for a period of 30 days following its receipt of such
notice the circumstances described by the Employee as constituting Good Reason
and Employee's resignation shall become effective on the 31st day following
notice to the Company if the Company fails to remedy or cure the circumstances
constituting Good Reason within such 30-day period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    E.  Termination
by the Company with Cause, where “Cause” shall mean:
(i) final non-appealable adjudication that the Employee has committed a
felony; or (ii) the determination of the Board that Employee has engaged in
intentional misconduct or the gross neglect of his duties;,

     

    F.  Termination
by the Company for any reason other than Cause.

     

    Any
termination pursuant to subparagraph B, C, D, E or F of this Section shall be
communicated by a written notice (“Notice of Termination”), such
notice to set forth with specificity the grounds for termination if termination
is for “Cause”. Employee’s employment under this Agreement shall be deemed to
have terminated as follows: (i) if Employee’s employment is terminated pursuant
to subparagraph A above, on the date of his death; (ii) if Employee’s employment
is terminated pursuant to subparagraph B, E or F above, on the date the Notice
of Termination is received by Employee; and (iii) if Employee’s employment is
terminated pursuant to subparagraph C above, thirty (30) days after the date on
which the Company receives Notice of Termination from Employee. The date on
which termination is deemed to have occurred pursuant to this paragraph is
hereinafter referred to as the “Date of
Termination” If the Notice of Termination is sent to Employee by
Company, then it shall be sent to Employee pursuant to the terms set forth in
Section 15 of this Agreement.

     

    7.         PAYMENTS ON
TERMINATION. In the event that Employee’s employment is terminated
pursuant to Sections 6 above, the Company shall pay to Employee and or his
estate, (i) all of the Compensation Benefits Employee is entitled to through the
Date of Termination (ii) all benefits and other compensation, if any, due and
owing as of the Date of Termination, and (iii) any Severance Payments that the
Employee may be entitled to pursuant to Section 16.

     

    8.         LIFE INSURANCE. If
requested by the Company, Employee shall submit to such physical examinations
and otherwise take such actions and execute and deliver such documents as may be
reasonably necessary to enable the Company to obtain life insurance on the life
of Employee for the benefit of the Company.

     

    9.         REPRESENTATIONS AND
WARRANTIES. Employee represents and warrants to the Company that he is
under no contractual or other restriction or obligation that would prevent the
performance of his duties hereunder or interfere with the rights of the Company
hereunder.

     

    10.         DISCLOSURE AND PROTECTION OF
CONFIDENTIAL INFORMATION.

     

    A.  For
purposes of this Agreement, “Confidential
Information” means knowledge, information and material which is
proprietary to the Company, of which Employee may obtain knowledge or access
through or as a result of his employment by the Company (including information
conceived, originated, discovered or developed in whole or in part by Employee).
Confidential Information includes, but is not limited to, (i) technical
knowledge, information and material such as trade secrets, processes, formulas,
data, know-how, improvements, inventions, computer programs, drawings, patents,
and experimental and development work techniques, and (ii) marketing and
other information, such as supplier lists, customer lists, marketing and
business plans, business or technical needs of customers, consultants, licensees
or suppliers and their methods of doing business, arrangements with customers,
consultants, licensees or suppliers, manuals and personnel records or data.
Confidential Information also includes any information described above which the
Company obtains from another party and which the Company treats as proprietary
or designates as confidential, whether or not owned or developed by the Company.
Notwithstanding the foregoing, any information which is or becomes available to
the general public other than by breach of this Section 10 shall not constitute
Confidential Information for purposes of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    B.  During
the period in which the Employee is employed by the Company and for two (2)
years thereafter, Employee agrees, to hold in confidence all Confidential
Information and not to use such information for Employee’s own benefit or to
reveal, report, publish, disclose or transfer, directly or indirectly, any
Confidential Information to any person or entity, or to utilize any Confidential
Information for any purpose, except in the course of Employee’s work for the
Company or as required by law.

     

    C.  Employee
will abide by any and all policies and procedures, whether formal or informal,
that may from time to time be imposed by the Company for the protection of
Confidential Information, and will inform the Company of any defects in, or
improvements that could be made to, such policies and
procedures.

     

    D.  Employee
will notify the Company in writing immediately upon receipt of any subpoena,
notice to produce, or other compulsory order or process of any court of law or
government agency which requires or may require the disclosure or other transfer
of Confidential Information.

     

    E.  Upon
termination of Employee’s employment with the Company, Employee will deliver to
the Company or destroy (at Employee’s election) any and all records and tangible
property that contain Confidential Information that are in his possession or
under his control.

     

    11.       COVENANT NOT TO
COMPETE.

     

    A.  In
consideration for the Company entering into this Agreement, Employee covenants
and agrees that during the period in which the Employee is employed by the
Company and for one (1) year thereafter, Employee will not, without the express
prior written consent of the Company, directly or indirectly, compete with the
business of the Company anywhere within the United States of America or the
Peoples Republic of China. Employee will not undertake any activities that are
competitive with or acquire interests in an entity which is competitive with the
business of the Company, whether alone, as a partner, or as an officer,
director, Employee, independent contractor, consultant or shareholder holding 5%
or more of the outstanding voting stock of any other corporation, or as a
trustee, fiduciary or other representative of any other person or
entity.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    B.  During
the period in which the Employee is employed by the Company and for one (1) year
thereafter, Employee will not, directly or indirectly, solicit or induce any
Employee of the Company or any Employee of a subsidiary of the Company to leave
him or his employment, or solicit or induce any consultant or independent
contractor to sever that person’s relationship with the Company.

     

    C.  If
any court shall determine that the duration or geographical limit of any
covenant contained in this Section 11 is unenforceable, it is the intention of
the parties that covenant shall not be terminated but shall be deemed amended to
the extent required to render it valid and enforceable, such amendment to apply
only in the jurisdiction of the court that has made such
adjudication.

    

    D.  Employee
acknowledges and agrees that (i) the covenants contained in Sections 10 and 11
hereof are of the essence in this Agreement and that such covenants are
reasonable and necessary to protect and preserve the interests, properties, and
business of the Company, and (ii) irreparable loss and damage will be suffered
by the Company should Employee breach any of such covenants.

    

    12.       AVAILABILITY OF INJUNCTIVE
RELIEF. Employee acknowledges and agrees that any breach by him of the
provisions of Sections 10 or 11 hereof will cause the Company irreparable injury
and damage for which it cannot be adequately compensated in damages. Employee
therefore expressly agrees that the Company shall be entitled to seek injunctive
and/or other equitable relief, on a temporary or permanent basis to prevent an
anticipatory or continuing breach of this Agreement. Nothing herein shall be
construed as a waiver by the Company of any right it may have or hereafter
acquired to monetary damages by reason of any injury to its property, business
or reputation or otherwise arising out of any wrongful act or omission of
it.

     

    13.       SURVIVAL. The
covenants, agreements, representations and warranties contained in or made
pursuant to this Agreement shall survive Employee’s termination of employment,
irrespective of any investigation made by or on behalf of any
party.

     

    14.       MODIFICATION. This
Agreement sets forth the entire understanding of the parties with respect to the
subject matter hereof, supersedes all existing agreements between them
concerning such subject matter, and may be modified only by a written instrument
duly executed by each party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.       NOTICES. Any notice
required or permitted hereunder shall be deemed validly given if delivered by
hand, verified overnight delivery, or by first class, certified mail to the
following addresses (or to such other address as the addressee shall notify in
writing to the other party):

     

    
      	 	

              If
      to Employee

            	

              Ben
      Wang

            
	 	 	 
	 	

              If
      to the Company:

            	

              11
      Youquan Road, Zhanqian Street, Jinzhou District

            
	 	 	

              Dalian,
      China 116100

            

    

     

    16.      SEVERANCE UPON TERMINATION
WITHOUT CAUSE OR FOR GOOD REASON. If, during the Term, Company terminates
Employee's employment with the Company and its subsidiaries for any reason other
than for Cause or Employee's death or disability, or Employee terminates his
employment for Good Reason (not including Company's or Employee's non-renewal of
the Term) and Employee executes and delivers to the Company a valid and
effective release of all claims against the Company and its affiliates in a form
and format as prepared and provided by the Company, the Employee shall be
entitled to receive (i) a lump sum cash payment in the amount of any accrued and
unpaid salary as of his date of termination, (ii) a lump sum cash payment equal
to any accrued and unpaid bonus for any prior fiscal year, (iii) a lump sum cash
payment equal to the pro rata amount of any bonus payable with respect to the
fiscal year in which termination occurs (such pro rata amount determined by
multiplying the bonus that would have been paid for the full fiscal year had the
Employee continued to render service to the Company as of the last day of the
fiscal year multiplied by a ratio, the numerator of which is the number of days
since the beginning of the fiscal year until the date of termination and the
denominator of which is 365), (iv) an amount equal to the sum of (a) 50% of his
then current annual base salary and (b) 50% of the average annual cash bonus
payments paid by the Company to the Employee during the current year of the
Company, and such sum shall be payable in six (6) substantially equal monthly
payments; provided that each payment is intended to constitute a separate
payment within the meaning of Section 409A of the Internal Revenue Code of 1986,
as amended ("Code"). Further, the Company shall continue the medical and life
insurance benefits which Employee was receiving on the date of his termination,
with any related costs to be paid by Employee being no more than what Employee
had been paying prior to the date of termination, for a period of six (6) months
after the date of his termination; provided such continued coverage shall end on
the date Employee has commenced employment elsewhere and becomes eligible for
participation in a similar type of benefit program of his successor
employer.

    

    17.       WAIVER. Any waiver by
either party of a breach of any provision of this Agreement shall not operate as
or be construed to be a waiver of any other breach of such provision or of any
breach of any other provision of this Agreement. The failure of a party to
insist upon strict adherence to any term of this Agreement on one or more
occasions shall not be considered a waiver or deprive that party of the right
thereafter to insist upon strict adherence to that term or any other term of
this Agreement. All waivers must be in writing.

     

    18.       BINDING EFFECT. The
Company’s rights and obligations under this Agreement shall not be transferable
by assignment or otherwise, and any attempt to do any of the foregoing shall be
void. The provisions of this Agreement shall be binding upon the Employee and
his heirs and personal representatives, and shall be binding upon and inure to
the benefit of the Company, its successors and assigns.

     

    19.       HEADINGS. The
headings in this Agreement are solely for convenience of reference and shall be
given no effect in the construction or interpretation of this
Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    20.       GOVERNING LAW.. The validity,
construction and enforcement of, and the remedies under, this Agreement shall be
governed in accordance with the laws of the State of New York, without giving
effect to any choice of laws principles.

     

    21.       INVALIDITY. The
invalidity or unenforceability of any term of this Agreement shall not
invalidate, make unenforceable or otherwise affect any other term of this
Agreement, which shall remain in full force and effect.

     

    22.       ATTORNEYS’ FEES. Except for any
disputes arising pursuant to Section 16 of this Agreement, if any dispute or
litigation arises hereunder between any of the parties hereto, then the
prevailing party shall be entitled to all reasonable costs and expenses incurred
by it in connection therewith (including, without limitation, all
reasonable attorneys’ fees and costs incurred before and at any trial or other
proceeding and at all tribunal levels), as well as all other relief granted in
any suit or other proceeding. As used herein, a party shall be deemed
“prevailing” when it recovers (i) as to a damage claim, an aggregate of more
than fifty percent (50%) of the damages which it seeks among its various
asserted claims exclusive of interest, attorney’s fees, costs incurred and
exemplary damages and (ii) as to an equity claim, substantial injunctive or
other equitable relief upon its asserted claim. Either of the parties herein
shall be entitled to request the trier of fact in any dispute, litigation or
arbitration between them, to determine which of the parties is
“prevailing”.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    WITNESS
WHEREOF, the parties have executed this Agreement as of the date first
hereinabove written.

    

    RINO
International Corporation, a Nevada corporation

     

    

    Zou Dejun 

      
        

      

    

    Name

     

    /s/ Zou Dejun

      
        

      

    

    Signature

     

    Chief
Executive
Officer

    Title

     

     

    Employee

     

    Ben
Wang

     

    Ben Wang 

      
        

      

    

    Name

     

    /s/ Ben Wang

      
        

      

    

    SignatureUnassociated Document

    NON-QUALIFIED STOCK OPTION
AGREEMENT

    

    Under
The

    RINO
International Corporation 2009 Stock Incentive Plan

    

    AGREEMENT
(“Agreement”),
dated as of August 12, 2010 by and between RINO International Corporation, a
Nevada corporation (the “Company”), and Ben
Wang (the “Optionee”).

     

    Preliminary
Statement

     

    The Board
of Directors of the Company (the “Board”) has appointed
a committee (the “Committee”) to
administer the RINO International Corporation 2009 Stock Incentive Plan (the
“Plan”), has
authorized this grant of a non-qualified stock option (the “Option”) on August
12, 2010 (the “Grant
Date”) to purchase the number of shares of the Company’s common stock,
par value $0.0001 per share (the “Common Stock”) set
forth below to the Participant, as a Eligible Employee of the Company or an
Affiliate (collectively, the Company and all Subsidiaries and Parents of the
Company shall be referred to as the “Company”).

     

    Unless
otherwise indicated, any capitalized term used but not defined herein shall have
the meaning ascribed to such term in the Plan. For the convenience of the
Participant, capitalized terms used but not defined herein and defined in the
Plan have been set forth hereto in Schedule A. A copy of
the Plan has been delivered to the Participant. By signing and returning this
Agreement, the Participant (i) acknowledges having received and read a copy of
the Plan and this Agreement, (ii) agrees to comply with the Plan, this Agreement
and all applicable laws and regulations, (iii) acknowledges that the Company has
not provided any tax advice to the Participant regarding the grant or future
exercise of the Option or the subsequent sale or transfer of shares of Common
Stock issuable hereunder, and (iv) understands that the Participant should
consult with the Participant’s personal financial, accounting and tax advisors
regarding the same to the extent the Participant deems necessary.

     

    Accordingly,
the parties hereto agree as follows:

     

    1.       Grant of
Option. The Company hereby grants to Optionee, an Option to purchase
an aggregate of 150,000 shares (“Shares”) of its Common Stock in the manner and
subject to the conditions provided hereinafter.

    

    2.      
Vesting and
Exercise. The Shares underlying the Option shall
vest at the time of and shall have an exercise price (the “Option Exercise
Price”) as set forth in Exhibit A attached hereto, which is the Fair Market
Value or higher of a share of Common Stock on the Grant Date. The Option shall
vest proportionately in the periods prior to each vesting date. To the extent
that such portion of the Option has become vested and is exercisable as provided
herein, the Option may thereafter be exercised by the Participant, in whole or
in part, at any time or from time to time prior to the expiration of the Option
as provided herein and in accordance with Sections 6.3(c) and 6.3(d) of the
Plan, including, without limitation, by the filing of any written form of
exercise notice as may be required by the Committee and payment in full of the
Option Exercise Price multiplied by the number of shares of Common Stock
underlying the portion of the Option exercised. Upon expiration of the Option,
the Option shall be canceled and no longer exercisable.

     

    3.      
Time of Exercise of
Option. Any portion of the Option which has vested may be exercised;
provided, however, no portion
of the Option may be exercised after the fifth anniversary of its respective
date of vesting (“Vesting Expiration Date”) and any portion of the Option that
has not been exercised on or prior to the Vesting Expiration Date shall be
automatically forfeited and of no further effect without any action by the
Company or the Board (a “Vesting Expiration”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.      
Method of
Exercise.   All or a portion of the Option may be
exercised by payment of the Option Exercise Price in cash, unless another form
of payment is authorized by the Board . In the event of payment of the Option
Exercise Price by check, the Option shall not be considered exercised until
receipt of cleared funds by the Company upon deposit of the check.

    

    5.     
 Restrictions on
Exercise and Delivery.   Exercise of the Option, or any
portion thereof, shall be subject to the conditions set forth below as
determined by the Board  in its sole and absolute
discretion:

    

    (a)   the
satisfaction of any withholding tax or other withholding liabilities, is
necessary or desirable as a condition of, or in connection with, such exercise
or the delivery or purchase of Shares pursuant thereto,

    

    (b)  the
listing, registration, or qualification of any Shares deliverable upon such
exercise is desirable or necessary, under any state or federal law, as a
condition of, or in connection with, such exercise or the delivery or purchase
of Shares pursuant thereto, or

     

    (c)  the
consent or approval of any regulatory body is necessary or desirable as a
condition of, or in connection with, such exercise or the delivery or purchase
of any Shares pursuant thereto,

    

    then in
any such event, such exercise shall not be effective unless such withholding,
listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Board .
Optionee shall execute such documents and take such other actions as are
required by the Board  to enable it to effect or obtain such
withholding, listing, registration, qualification, consent or approval. Neither
the Company nor any officer or director, or member of the Board , shall have any
liability with respect to the non-issuance of any portion of the Shares on
exercise or failure to sell any Shares as the result of any suspensions of
exercisability imposed pursuant to this Section.

    

    6.     
 Expiration of
Option.   Except as otherwise provided in this Agreement,
to the extent not previously exercised, the Option (or the relevant portion
thereof) shall terminate upon the first to occur of any of the following events
(the “Expiration Date”):

    

    (a)             
the dissolution or liquidation of the Company;

    

    (b)           
at the time of a breach by Optionee of any material provision of the Optionee’s
Employment Agreement with the Company or any other written agreement between the
Optionee and the Company; or

    

    (c)           
any portion of the Option that terminate pursuant to a Vesting
Expiration.

    

    7.      
Termination of
Service. If the Optionee’s employment terminates, any portion of the
Option which has vested shall expire on the earliest of the following occasions
(or such later date as the Board may determine):

    

    (a)               
the Expiration Date;

    

    (b)                the
date three (3) months after the termination of the Optionee’s employment for any
reason other than for Cause (including Disability (as defined in Section
22(e)(3) of the Internal Revenue Code), death and retirement);

    

    (c)                the
date of the Optionee’s termination of employment for Cause (as such term is
defined in the Optionee’s Employment Agreement with the Company).

    

    After the
date Optionee’s employment terminates, the Optionee (or in the case of the
Optionee’s death or Disability, the Optionee’s representative) may exercise all
or any portion of the Option which has vested at any time before its (i)
expiration under the preceding sentence or (ii) termination by operation of any
of the events in paragraph 5 hereof. When the Optionee’s employment terminates,
any portion of this Option which has not vested shall expire immediately without
any further action by the Board  or the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.          
Assignability.  This
Option may not be sold, pledged, assigned or transferred (except by will or the
laws of descent and distribution) unless with the written consent of the
Company.

    

    9.          
Representation
Letter.  Upon exercise of all or any part of the Option, the
Optionee will deliver to the Company the Exercise Representation Letter
substantially the same as the one set forth on Exhibit B hereto, as such Exhibit
may be amended by the Board  from time to time. Optionee also agrees
to make such other representations as are deemed necessary or appropriate by the
Company and its counsel.

    

    10.        
Rights as
Shareholder. Neither Optionee nor his or her executor,
administrator, heirs or legatees, shall be, or have any rights or privileges of
a shareholder of the Company in respect of the Shares unless and until
certificates representing such Shares shall have been issued in Optionee's
name.

    

    11.    
    No Right of
Employment. Neither the grant nor exercise of any Option nor
anything in the Plan or this Agreement shall impose upon the Company any
obligation to employ or continue to employ any Optionee. The right of the
Company to terminate any employee shall not be diminished or affected because an
Option has been granted to such employee.

    

    12.         Mandatory
Arbitration.  In the event of any dispute between the Company
and Optionee regarding this Agreement, the dispute and any issue as to the
arbitrability of such dispute, shall be settled to the exclusion of a court of
law, by arbitration in New York City, New York by a panel of three arbitrators
(each party shall choose one arbitrator and the third shall be chosen by the two
arbitrators so selected) in accordance with the Commercial Arbitration Rules of
the American Arbitration Association then in effect. The decision of a majority
of the arbitrators shall be final and binding upon the parties. All costs of the
arbitration and the fees of the arbitrators shall be allocated between the
parties as determined by a majority of the arbitrators, it being the intention
of the parties that the prevailing party in such a proceeding be made whole with
respect to its expenses.

    

    13.          The Company’s Rights.
The existence of the Option shall not affect in any way the right or power of
the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, or any merger or consolidation of the Company, or any
issue of bonds, debentures, preferred or other stocks with preference ahead of
or convertible into, or otherwise affecting the Common Stock or the rights
thereof, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of the Company's assets or business, or any other
corporate act or proceeding, whether of a similar character or
otherwise.

    

    14.          Optionee. Whenever
the word “Optionee” is used in any provision of this Agreement under
circumstances where the provision should logically be construed, as determined
by the Board, to apply to the estate, personal representative, beneficiary to
whom the Option or Shares may be transferred by will or by the laws of descent
and distribution, or another permitted transferee, the word “Optionee” shall be
deemed to include such person.

    

    15.          Conformity with Plan.
This Agreement is intended to conform in all respects with, and is subject to
all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the
event of any ambiguity in this Agreement or any matters as to which this
Agreement is silent, the Plan shall govern. A copy of the Plan is provided
to Optionee with this Agreement as Exhibit C.

    

    16.          Section 409A
Compliance. To the extent applicable, the Board or the Committee may at
any time and from time to time amend, in whole or in part, any or all of the
provisions of this Agreement (in a manner determined by the Board or Committee
in its sole discretion) solely to comply with Section 409A of the Code and the
regulations promulgated thereunder, subject to the terms and conditions of the
Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    17.          Notices. All notices
and other communications made or given pursuant to this Agreement shall be in
writing and shall be sufficiently made or given if hand delivered or mailed by
certified mail, addressed to the Optionee at the address contained in the
records of the Company, or addressed to the Board , care of the Company to the
attention of its Corporate Secretary at its principal office or, if the
receiving party consents in advance, transmitted and received via telecopy or
via such other electronic transmission mechanism as may be available to the
parties.

    

    18.         Binding Effect. This
Agreement shall be binding upon and inure to the benefit of Optionee, his heirs
and successors, and of the Company, its successors and assigns.
 

    

    19.         Governing Law. This
Agreement shall be governed by the laws of the State of New York, without giving
effect to principles of conflicts of laws.

    

    20.         Descriptive
Headings.  Titles to Sections are solely for informational
purposes.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, this Agreement is effective as of, and the date of grant shall
be August 12, 2010.

     

    
      
        	 	
                RINO
      INTERNATIONAL CORPORATION
      
                  a
      Nevada corporation

                

              	 
	 	 	 	 
	
              	
                By:
      

              	      
                /s/
      Dejun Zou

              	 
	 	      
                Its:

              	
                President
      and Chief Executive Officer

              	 
	 	 	
              	 
	 	      
                OPTIONEE

              	 
	 	 	 	 
	 	 	      
                /s/
      Ben Wang

              	 
	 	 	      
                Ben
      Wang

              	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

    

    VESTING
SCHEDULE AND OPTION EXERCISE PRICE

    

    
      	
              Number of
      Shares

            	 	
              Vesting Date

            	 	
               
      Vesting Expiration
      Date

            	 	
              Exercise
      Price per Share

            	 
	50,000	 	
              April
      19, 2011

            	 	
              April
      19, 2016

            	 	$	20.00	 
	50,000	 	
              April
      19, 2012

            	 	
              April
      19, 2017

            	 	$	20.00	 
	50,000	 	
              April
      19, 2013

            	 	
              April
      19, 2018

            	 	$	20.00	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
B

     

    ______________,
20___

    

    RINO
International Corporation

    

    Re: Stock
Option Exercise

    

    To Whom
It May Concern:

    

    I (the
“Optionee”) hereby exercise my right to purchase ________ shares of common stock
(the “Shares”) of RINO International Corporation, a Nevada Company (the
“Company”), pursuant to, and in accordance with, an option agreement dated as of
_________  ______, 20___ (the “Agreement”). As provided in such
Agreement, I deliver herewith payment as set forth in the Agreement in the
amount of the aggregate option exercise price. Please deliver to me at my
address as set forth above stock certificates representing the subject shares
registered in my name.

    

    The
Optionee hereby represents and agrees as follows:

    

    1. The
Optionee acknowledges receipt of a copy of the Agreement. The Optionee has
carefully reviewed the Agreement.

    

    2. The
Optionee is a resident of __________.

    

    3. The
Optionee represents and agrees that if the Optionee is an “affiliate” (as
defined in Rule 144 under the Securities Act of 1933) of the Company at the time
the Optionee desires to sell any of the Shares, the Optionee will be subject to
certain restrictions under, and will comply with all of the requirements of,
applicable federal and state securities laws.

    

    The
foregoing representations and warranties are given on ________ at
_____________________.

    

    ___
Optionee encloses a check in the amount of $ ______________ for the payment of
the aggregate amount of the Option Exercise Price.

    

    

    OPTIONEE: 

    

    _____________________________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
C

     

    RINO
International 2009 Stock Incentive Plan

     

    SCHEDULE
A

     

    The
following terms used but not defined in the Agreement and defined in the Plan
have been provided below for the convenience of the Participant but are
qualified in their entirety by the full text of such terms in the
Plan.

     

    A.        
“Acquisition
Event” means a
merger or consolidation in which the Company is not the surviving entity, any
transaction that results in the acquisition of all or substantially all of the
Company’s outstanding Common Stock by a single person or entity or by a group of
persons and/or entities acting in concert, or the sale or transfer of all or
substantially all of the Company’s assets.

     

    B.        
“Affiliate” means each of the following:
(a) any Subsidiary; (b) any Parent; (c) any corporation, trade or
business (including, without limitation, a partnership or limited liability
company) which is directly or indirectly controlled 50% or more (whether by
ownership of stock, assets or an equivalent ownership interest or voting
interest) by the Company; (d) any corporation, trade or business (including,
without limitation, a partnership or limited liability company) which directly
or indirectly controls 50% or more (whether by ownership of stock, assets or an
equivalent ownership interest or voting interest) of the Company; and
(e) any other entity in which the Company or any of its Affiliates has a
material equity interest and which is designated as an “Affiliate” by resolution
of the Committee; provided that the Common Stock subject to any Award
constitutes “service recipient stock” for purposes of Section 409A of the Code
or otherwise does not subject the Award to Section 409A of the
Code.

     

    C.         “Appreciation
Award” means any
Award under this Plan of any Stock Option, Stock Appreciation Right or Other
Stock-Based Award, provided that such Other Stock-Based Award is based on the
appreciation in value of a share of Common Stock in excess of an amount equal to
at least the Fair Market Value of the Common Stock on the date such Other
Stock-Based Award is granted.

     

    D.        
“Award” means any award under this
Plan of any Stock Option, Stock Appreciation Right, Restricted Stock,
Performance Share, Other Stock-Based Award or Performance-Based Cash Awards. All
Awards shall be granted by, confirmed by, and subject to the terms of, a written
agreement executed by the Company and the Participant.

     

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

     

    F.        
“Cause” means with respect to a
Participant’s Termination of Employment or Termination of Consultancy from and
after the date hereof, the following: (a) in the case where there is no
employment agreement, consulting agreement, change in control agreement or
similar agreement in effect between the Company or an Affiliate and the
Participant at the time of the grant of the Award (or where there is such an
agreement but it does not define “cause” (or words of like import)), termination
due to: (i) a Participant’s conviction of, or plea of guilty or nolo contendere
to, a felony; (ii) perpetration by a Participant of an illegal act, or fraud
which could cause significant economic injury to the Company; (iii) continuing
willful and deliberate failure by the Participant to perform the Participant’s
duties in any material respect, provided that the Participant is given notice
and an opportunity to effectuate a cure as determined by the Committee; or (iv)
a Participant’s willful misconduct with regard to the Company that could have a
material adverse effect on the Company; or (b) in the case where there is an
employment agreement, consulting agreement, change in control agreement or
similar agreement in effect between the Company or an Affiliate and the
Participant at the time of the grant of the Award that defines “cause” (or words
of like import), “cause” as defined under such agreement; provided, however,
that with regard to any agreement under which the definition of “cause” only
applies on occurrence of a change in control, such definition of “cause” shall
not apply until a change in control actually takes place and then only with
regard to a termination thereafter. With respect to a Participant’s Termination
of Directorship, “cause” means an act or failure to act that constitutes cause
for removal of a director under applicable Nevada law.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    G.        
“Change in
Control” has the
meaning set forth in Section 13.2 of the Plan.

     

    H.        
“Change in
Control Price”
has the meaning set forth in Section 13.1 of the Plan.

     

    I.         
“Code” means the Internal Revenue
Code of 1986, as amended. Any reference to any section of the Code shall also be
a reference to any successor provision and any Treasury Regulation promulgated
thereunder.

     

    J.        
“Committee”
means: (a) with respect to the application of this Plan to Eligible
Employees and Consultants, a committee or subcommittee of the Board appointed
from time to time by the Board, which committee or subcommittee shall consist of
two or more non-employee directors, each of whom shall be (i) a “non-employee
director” as defined in Rule 16b-3; (ii) to the extent required by Section
162(m) of the Code, an “outside director” as defined under Section 162(m) of the
Code; and (iii) an “independent director” for purposes of the applicable stock
exchange rules; and (b) with respect to the application of this Plan to
Non-Employee Directors, the Board. To the extent that no Committee exists that
has the authority to administer this Plan, the functions of the Committee shall
be exercised by the Board. If for any reason the appointed Committee does not
meet the requirements of Rule 16b-3 or Section 162(m) of the Code, such
noncompliance shall not affect the validity of Awards, grants, interpretations
or other actions of the Committee.

     

    K.        
“Common
Stock” means the
common stock, $0.0001 par value per share, of the Company.

     

    L.        
“Company” means RINO International
Corporation, a Nevada Corporation, and its successors by operation of
law.

     

    M.       
“Consultant” means any individual or
entity who provides bona fide consulting or advisory services to the Company or
its Affiliates pursuant to a written agreement, which are not in connection with
the offer and sale of securities in a capital-raising transaction.

     

    N.         “Disability” means with respect to a
Participant’s Termination, a permanent and total disability as defined in
Section 22(e)(3) of the Code. A Disability shall only be deemed to occur at the
time of the determination by the Committee of the Disability. Notwithstanding
the foregoing, for Awards that are subject to Section 409A of the Code,
Disability shall mean that a Participant is disabled under Section
409A(a)(2)(C)(i) or (ii) of the Code.

     

    O.        
“Effective
Date” means the
effective date of this Plan as defined in Article XVII.

     

    P.         “Eligible
Employees” means
each employee of the Company or an Affiliate.

     

    Q.        
“Exchange
Act” means the
Securities Exchange Act of 1934, as amended. Any references to any section of
the Exchange Act shall also be a reference to any successor
provision.

    

    R.        
“Fair
Market Value”
means, unless otherwise required by any applicable provision of the Code or any
regulations issued thereunder, as of any date and except as provided below, the
last sales price reported for the Common Stock on the applicable date: (a) as
reported on the principal national securities exchange in the United States on
which it is then traded, or (b) if the Common Stock is not traded, listed or
otherwise reported or quoted, the Committee shall determine in good faith the
Fair Market Value in whatever manner it considers appropriate taking into
account the requirements of Section 409A of the Code. For purposes of the grant
of any Award, the applicable date shall be the trading day immediately prior to
the date on which the Award is granted. For purposes of the exercise of any
Award, the applicable date shall be the date a notice of exercise is received by
the Committee or, if not a day on which the applicable market is open, the next
day that it is open.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    S.        
“Family
Member” means
“family member” as defined in Section A.1.(5) of the general instructions of
Form S-8.

     

    T.        
“GAAP” has the meaning set forth in
Section 11.2(c)(ii).

     

    U.        
“Incentive
Stock Option”
means any Stock Option awarded to an Eligible Employee of the Company, its
Subsidiaries and its Parent (if any) under this Plan intended to be and
designated as an “Incentive Stock Option” within the meaning of Section 422 of
the Code.

     

    V.        
“Non-Employee
Director” means a
director of the Company who is not an active employee of the Company or an
Affiliate.

     

    W.      
“Non-Qualified
Stock Option”
means any Stock Option awarded under this Plan that is not an Incentive Stock
Option.

     

    X.        
“Other
Stock-Based Award” means an Award under Article
X of this Plan that is valued in whole or in part by reference to, or is payable
in or otherwise based on, Common Stock, including, without limitation, a
restricted stock unit or an Award valued by reference to an
Affiliate.

     

    Y.        
“Parent” means any parent corporation
of the Company within the meaning of Section 424(e) of the Code.

     

    Z.        
“Participant” means an Eligible Employee,
Non-Employee Director or Consultant to whom an Award has been granted pursuant
to the Plan.

     

    AA.         “Performance-Based
Cash Award” means
a cash Award under Article XI of this Plan that is payable or otherwise based on
the attainment of certain pre-established performance goals during a Performance
Period.

     

    BB.        
“Performance
Goals” mean such performance goals as determined in writing by the
Committee.

     

    CC.        
“Performance
Period” means the
duration of the period during which receipt of an Award is subject to the
satisfaction of performance criteria, such period as determined by the Committee
in its sole discretion.

     

    DD.        
“Performance
Share” means an
Award made pursuant to Article IX of this Plan of the right to receive Common
Stock or cash of an equivalent value at the end of a specified Performance
Period.

    

    EE.          
“Person” means any individual,
corporation, partnership, limited liability company, firm, joint venture,
association, joint-stock company, trust, incorporated organization, governmental
or regulatory or other entity.

     

    FF.         
 “Plan” means this RINO
International Corporation 2009 Stock Incentive Plan, as amended from time to
time.

     

    GG.        
“Reference
Stock Option” has
the meaning set forth in Section 7.1 of the Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    HH.         “Restricted
Stock” means an
Award of shares of Common Stock under this Plan that is subject to restrictions
under Article VIII.

     

    II.       
     “Restriction
Period” has the
meaning set forth in Subsection 8.3(a) of the Plan.

     

    JJ.         
“Rule
16b-3” means Rule
16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor
provision.

     

    KK.        
“Section
162(m) of the Code” means the exception for
performance-based compensation under Section 162(m) of the Code and any
applicable Treasury regulations thereunder.

     

    LL.         
“Section
409A of the Code”
means the nonqualified deferred compensation rules under Section 409A of the
Code and any applicable Treasury regulations thereunder.

     

    MM.        “Securities
Act” means the
Securities Act of 1933, as amended and all rules and regulations promulgated
thereunder. Any reference to any section of the Securities Act shall also be a
reference to any successor provision.

     

    NN.        
“Stock
Appreciation Right” means the right pursuant to
an Award granted under Article VII. A Tandem Stock Appreciation Right shall mean
the right to surrender to the Company all (or a portion) of a Stock Option in
exchange for cash or a number of shares of Common Stock (as determined by the
Committee, in its sole discretion, on the date of grant) equal to the difference
between (a) the Fair Market Value on the date such Stock Option (or such
portion thereof) is surrendered, of the Common Stock covered by such Stock
Option (or such portion thereof), and (b) the aggregate exercise price of
such Stock Option (or such portion thereof). A Non-Tandem Stock Appreciation
Right shall mean the right to receive cash or a number of shares of Common Stock
(as determined by the Committee, in its sole discretion, on the date of grant)
equal to the difference between (i) the Fair Market Value of a share of
Common Stock on the date such right is exercised, and (ii) the aggregate
exercise price of such right, otherwise than on surrender of a Stock
Option.

     

    OO.        “Stock
Option” or “Option” means any option to purchase
shares of Common Stock granted to Eligible Employees, Non-Employee Directors or
Consultants granted pursuant to Article VI of the Plan.

     

    PP.        
 “Subsidiary” means any subsidiary
corporation of the Company within the meaning of Section 424(f) of the
Code.

     

    QQ.        “Ten
Percent Stockholder” means a person owning stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company, its Subsidiaries or its Parent.

     

    RR.         “Termination” means a Termination of
Consultancy, Termination of Directorship or Termination of Employment, as
applicable.

     

    SS.         
“Termination
of Consultancy”
means: (a) that the Consultant is no longer acting as a consultant to the
Company or an Affiliate; or (b) when an entity which is retaining a Participant
as a Consultant ceases to be an Affiliate unless the Participant otherwise is,
or thereupon becomes, a Consultant to the Company or another Affiliate at the
time the entity ceases to be an Affiliate. In the event that a Consultant
becomes an Eligible Employee or a Non-Employee Director upon the termination of
his or her consultancy, unless otherwise determined by the Committee, in its
sole discretion, no Termination of Consultancy shall be deemed to occur until
such time as such Consultant is no longer a Consultant, an Eligible Employee or
a Non-Employee Director. Notwithstanding the foregoing, the Committee may, in
its sole discretion, otherwise define Termination of Consultancy in the Award
agreement or, if no rights of a Participant are reduced, may otherwise define
Termination of Consultancy thereafter.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TT.         
“Termination
of Directorship”
means that the Non-Employee Director has ceased to be a director of the Company;
except that if a Non-Employee Director becomes an Eligible Employee or a
Consultant upon the termination of his or her directorship, his or her ceasing
to be a director of the Company shall not be treated as a Termination of
Directorship unless and until the Participant has a Termination of Employment or
Termination of Consultancy, as the case may be.

     

    UU.         
“Termination
of Employment”
means: (a) a termination of employment (for reasons other than a military
or personal leave of absence granted by the Company) of a Participant from the
Company and its Affiliates; or (b) when an entity which is employing a
Participant ceases to be an Affiliate, unless the Participant otherwise is, or
thereupon becomes, employed by the Company or another Affiliate at the time the
entity ceases to be an Affiliate. In the event that an Eligible Employee becomes
a Consultant or a Non-Employee Director upon the termination of his or her
employment, unless otherwise determined by the Committee, in its sole
discretion, no Termination of Employment shall be deemed to occur until such
time as such Eligible Employee is no longer an Eligible Employee, a Consultant
or a Non-Employee Director. Notwithstanding the foregoing, the Committee may, in
its sole discretion, otherwise define Termination of Employment in the Award
agreement or, if no rights of a Participant are reduced, may otherwise define
Termination of Employment thereafter.

     

    VV.        
“Transfer” means: (a) when used as a
noun, any direct or indirect transfer, sale, assignment, pledge, hypothecation,
encumbrance or other disposition (including the issuance of equity in a Person),
whether for value or no value and whether voluntary or involuntary (including by
operation of law), and (b) when used as a verb, to directly or indirectly
transfer, sell, assign, pledge, encumber, charge, hypothecate or otherwise
dispose of (including the issuance of equity in a Person) whether for value or
for no value and whether voluntarily or involuntarily (including by operation of
law). “Transferred” and “Transferrable” shall have a correlative
meaning

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