Document:

Exhibit
10.2

 

FORM OF
VOTING AGREEMENT

 

VOTING AGREEMENT (this “Agreement”), dated as of June 29,
2009, by and among Cell Genesys, Inc., a Delaware corporation (“Cell
Genesys”), and the undersigned stockholder (“Stockholder”) of
BioSante Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
identified on the signature page hereto.

 

RECITALS:

 

WHEREAS, the Company and Cell Genesys are entering into
an Agreement and Plan of Merger (as amended from time to time, the “Merger
Agreement”), dated as of the date hereof, providing for, among other
things, the merger of Cell Genesys with and into the Company, with the Company
continuing as the surviving corporation (the “Merger”);

 

WHEREAS, as of the date hereof, Stockholder is the
Beneficial Owner (as defined below) of, and has the sole right to vote and
dispose of, that number of shares of common stock and Class C Special
Shares (the “Company Shares”) of the Company set forth beside
Stockholder’s name on Schedule A hereto; and

 

WHEREAS, concurrently with the entry by the Company and
Cell Genesys into the Merger Agreement, and as a condition and inducement to
the willingness of Cell Genesys to enter into the Merger Agreement and incur
the obligations set forth therein, Cell Genesys has required that Stockholder
enter into this Agreement;

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual representations, warranties, covenants and agreements contained
herein, the parties hereto, intending to be legally bound, hereby agree as
follows:

 

ARTICLE I

DEFINITIONS

 

Capitalized terms used but not defined in this Agreement
are used in this Agreement with the meanings given to such terms in the Merger
Agreement.  In addition, for purposes of
this Agreement:

 

“Affiliate” means, with respect to any specified
person, a person who, at the time of determination, directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such specified person. 
For purposes of this Agreement, with respect to Stockholder, “Affiliate”
shall not include the Company and the persons that directly, or indirectly
through one or more intermediaries, are controlled by the Company.  For the avoidance of doubt, no officer or
director of the Company shall be deemed an Affiliate of another officer or
director of the Company by virtue of his or her status as an officer or
director of the Company.

 

“Beneficially Owned” or “Beneficial Ownership”
with respect to any securities means having beneficial ownership of such
securities (as determined pursuant to Rule 13d-3 under the Exchange Act,
disregarding the phrase “within 60 days” in paragraph (d)(1)(i) thereof),
including pursuant to any agreement, arrangement or understanding, whether or
not in writing.  

 

 

Without duplicative counting of
the same securities, securities Beneficially Owned by a person shall include
securities Beneficially Owned by (i) all Affiliates of such person, and (ii) all
other persons with whom such person would constitute a “group” within the
meaning of Section 13(d) of the Exchange Act and the rules promulgated
thereunder.

 

“Beneficial Owner” with respect to any securities
means a person that has Beneficial Ownership of such securities.

 

“person” shall have the meaning ascribed thereto
in the Merger Agreement.

 

“Subject Shares” means, with respect to
Stockholder, without duplication, (i) the Company Shares owned by
Stockholder on the date hereof as described on Schedule A, and (ii) any
additional Company Shares acquired by Stockholder or over which Stockholder
acquires Beneficial Ownership from and after the date hereof, whether pursuant
to existing stock option agreements or otherwise.

 

“Transfer” means, with respect to a security, the
sale, transfer, pledge, hypothecation, encumbrance, assignment or disposition
of such security or the Beneficial Ownership thereof, and each option,
agreement, arrangement or understanding, whether or not in writing, to effect
any of the foregoing.  As a verb, “Transfer”
shall have a correlative meaning.

 

ARTICLE II

COVENANTS OF STOCKHOLDER

 

Section 2.1             Irrevocable
Proxy.  Concurrently with the
execution of this Agreement, Stockholder agrees to deliver to Cell Genesys a
proxy in the form attached hereto as Exhibit A (the “Proxy”), which
shall be irrevocable to the extent provided in Section 212 of the Delaware
General Corporation Law (the “DGCL”), with respect to the Subject Shares
referred to therein.

 

Section 2.2             Agreement
to Vote.

 

(a)           At any meeting of the stockholders of
the Company held prior to the Expiration Date (as defined in Section 5.13),
however called, and at every adjournment or postponement thereof prior to the
Expiration Date, or in connection with any written consent of, or any other
action by, the stockholders of the Company given or solicited prior to the
Expiration Date, Stockholder shall vote, or provide a consent with respect to,
all of the Subject Shares entitled to vote or to consent thereon (i) in
favor of the adoption of the Merger Agreement and approval of the issuance of
shares of common stock of the Company to the stockholders of Cell Genesys
pursuant to the Merger Agreement, and any actions required in furtherance
thereof and (ii) against any amendment of the Company’s Certificate of
Incorporation or Bylaws or any other proposal or transaction involving the Company,
the purpose of which amendment or other proposal or transaction is to delay,
prevent or nullify the Merger or the transaction contemplated by the Merger
Agreement or change in any manner the voting rights of any capital stock of the
Company, and against any other action or agreement that would result in a
breach in any material respect of any covenant, representation or warranty or
any other obligation or agreement of the Company under the Merger Agreement.

 

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(b)           Stockholder shall not enter into any
agreement with any person (other than Cell Genesys) prior to the Expiration
Date (with respect to periods prior to or after the Expiration Date) directly
or indirectly to vote, grant any proxy or give instructions with respect to the
voting of, the Subject Shares in respect of the matters described in Section 2.2
hereof, or the effect of which would be inconsistent with or violative of any
provision contained in this Section 2.2. 
Any vote or consent (or withholding of consent) by Stockholder that is
not in accordance with this Section 2.2 shall be considered null and void,
and the provisions of the Proxy shall be deemed to take immediate effect.

 

Section 2.3             Revocation
of Proxies; Cooperation.  Stockholder
agrees as follows:

 

(a)           Stockholder
hereby represents and warrants that any proxies heretofore given in respect of
the Subject Shares with respect to the matters described in Section 2.2(a) hereof
are not irrevocable, and Stockholder hereby revokes any and all prior proxies
with respect to such Subject Shares as they relate to such matters.  Prior to the Expiration Date, Stockholder
shall not directly or indirectly grant any proxies or powers of attorney with
respect to the matters set forth in Section 2.2(a) hereof (other than
to Cell Genesys), deposit any of the Subject Shares or enter into a voting
agreement (other than this Agreement) with respect to any of the Subject Shares
relating to any matter described in Section 2.2(a).

 

(b)           Stockholder
will (i) use all reasonable efforts to cooperate with the Company and Cell
Genesys in connection with the transactions contemplated by the Merger
Agreement, and (ii) provide any information reasonably requested by the
Company or Cell Genesys for any regulatory application or filing sought for
such transactions.

 

Section 2.4             Intentionally
Omitted.

 

Section 2.5             No
Transfer of Subject Shares; Publicity. 
Stockholder agrees that:

 

(a)           Stockholder
(i) shall not Transfer or agree to Transfer any of the Subject Shares or,
with respect to any matter described in Section 2.2(a), grant any proxy or
power-of-attorney with respect to any of the Subject Shares, (ii) shall
take all action reasonably necessary to prevent creditors in respect of any
pledge of the Subject Shares from exercising their rights under such pledge,
and (iii) shall not take any action that would make in a material respect
any of its representations or warranties contained herein untrue or incorrect
or would have the effect of preventing or disabling the Stockholder from
performing any of its material obligations hereunder.  Notwithstanding the foregoing, Stockholder
may Transfer and agree to Transfer any of the Subject Shares provided that each
person to which any such Subject Shares are Transferred shall have (x) executed
a counterpart of this Agreement and a Proxy in the form attached hereto as Exhibit A
(with such modifications as Cell Genesys may reasonably request), and (y) agreed
in writing to hold such Subject Shares subject to all of the terms and conditions
set forth in this Agreement.

 

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(b)           Unless
required by applicable Law or permitted by the Merger Agreement, Stockholder
shall not, and shall not authorize or direct any of its Affiliates or Representatives
to, make any press release or public announcement with respect to this
Agreement or the Merger Agreement or the transactions contemplated hereby or
thereby, without the prior written consent of Cell Genesys in each instance.

 

ARTICLE III

REPRESENTATIONS, WARRANTIES AND ADDITIONAL COVENANTS

OF STOCKHOLDER

 

Stockholder represents, warrants and covenants to Cell
Genesys that:

 

Section 3.1             Ownership.  Stockholder is the sole Beneficial Owner and
the record and legal owner of the Subject Shares identified on Schedule A and
such shares constitute all of the capital stock of the Company Beneficially
Owned by Stockholder.  Stockholder has
good and valid title to all of such shares, free and clear of all Liens,
claims, options, proxies, voting agreements and security interests and has the
sole right to such Subject Shares and there are no restrictions on rights of
disposition or other Liens pertaining to such Subject Shares.  None of the Subject Shares is subject to any voting
trust or other contract with respect to the voting thereof, and no proxy, power
of attorney or other authorization has been granted with respect to any of such
Subject Shares.

 

Section 3.2             Authority
and Non-Contravention.

 

(a)           [FOR AN INDIVIDUAL:][Stockholder is an
individual, and not a corporation, limited liability company, partnership,
trust or other such entity.  Stockholder
has all necessary legal capacity to execute and deliver this Agreement and to
perform its obligations hereunder and to consummate the transactions
contemplated hereby.][FOR AN ENTITY:][Stockholder
is a
[              ]
duly organized, validly existing and in good standing under the laws of the
State of [              ].  Stockholder has all necessary power and
authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement
by Stockholder and the consummation by Stockholder of the transactions
contemplated hereby have been duly and validly authorized by all necessary
[corporate] action, and no other [corporate] proceedings on the part of
Stockholder are necessary to authorize this Agreement or to consummate the
transactions contemplated hereby.]

 

(b)           Assuming due authorization, execution
and delivery of this Agreement by Cell Genesys, this Agreement has been duly
and validly executed and delivered by Stockholder and constitutes the legal,
valid and binding obligation of Stockholder, enforceable against Stockholder in
accordance with its terms except (i) to the extent limited by applicable
bankruptcy, insolvency or similar laws affecting creditors’ rights and (ii) the
remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.

 

(c)           Stockholder is not nor will it be
required to make any filing with or give any notice to, or to obtain any
consent from, any person in connection with the execution, 

 

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delivery or performance of this Agreement or
obtain any permit or approval from any Governmental Authority for any of the
transactions contemplated hereby, except to the extent required by Section 13
or Section 16 of the Exchange Act and the rules promulgated
thereunder.

 

(d)           Neither the execution and delivery of
this Agreement by Stockholder nor the consummation of the transactions
contemplated hereby will directly or indirectly (whether with notice or lapse
of time or both) (i) conflict with, result in any violation of or
constitute a default by Stockholder under any mortgage, bond, indenture,
agreement, instrument or obligation to which Stockholder is a party or by which
it or any of the Subject Shares are bound, or violate any permit of any
Governmental Authority, or any Law or Order to which Stockholder, or any of the
Subject Shares, may be subject, or (ii) result in the imposition or
creation of any Lien upon or with respect to any of the Subject Shares; except,
in each case, for conflicts, violations, defaults or Liens that would not
individually or in the aggregate be reasonably expected to prevent or
materially impair or delay the performance by the Stockholder of its
obligations hereunder.

 

(e)           Stockholder
has sole voting power and sole power to issue instructions with respect to the
matters set forth in Article II hereof and sole power to agree to all of
the matters set forth in this Agreement, in each case with respect to all of
the Subject Shares, with no limitations, qualifications or restrictions on such
rights.

 

Section 3.3             Total
Shares.  Except as set forth on
Schedule A, Stockholder is not the Beneficial Owner of, and does not have
(whether currently, upon lapse of time, following the satisfaction of any
conditions, upon the occurrence of any event or any combination of the
foregoing) any right to acquire, and has no other interest in or voting rights
with respect to, any Company Shares or any securities convertible into or
exchangeable or exercisable for Company Shares.

 

Section 3.4             Reliance.  Stockholder understands and acknowledges that
Cell Genesys is entering into the Merger Agreement in reliance upon Stockholder’s
execution, delivery and performance of this Agreement.

 

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS OF CELL GENESYS

 

Cell Genesys represents, warrants and covenants to
Stockholder that, assuming due authorization, execution and delivery of this
Agreement by Stockholder, this Agreement constitutes the legal, valid and
binding obligation of Cell Genesys, enforceable against Cell Genesys in
accordance with its terms, except (i) to the extent limited by applicable
bankruptcy, insolvency or similar laws affecting creditors’ rights and (ii) the
remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought. Cell Genesys has the
corporate power and authority to execute and deliver this Agreement and to
perform its obligations hereunder.  The
execution and delivery by Cell Genesys of this Agreement and the consummation
by Cell Genesys of the transactions contemplated hereby have been duly and
validly authorized by Cell Genesys and no other corporate proceedings on the
part of Cell Genesys are necessary to authorize this Agreement or to consummate
the transactions 

 

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contemplated hereby.  This Agreement has been duly and validly
executed and delivered by Cell Genesys.

 

ARTICLE V

GENERAL PROVISIONS

 

Section 5.1             No
Ownership Interest.  Nothing
contained in this Agreement shall be deemed to vest in Cell Genesys or any of
its Affiliates any direct or indirect ownership or incidents of ownership of or
with respect to the Subject Shares.  All
rights, ownership and economic benefits of and relating to the Subject Shares
shall remain and belong to Stockholder, and neither Cell Genesys nor any of its
Affiliates shall have any authority to manage, direct, superintend, restrict,
regulate, govern or administer any of the policies or operations of the Company
or exercise any power or authority to direct Stockholder in the voting of any
of the Subject Shares, except as otherwise expressly provided herein or in the
Merger Agreement.

 

Section 5.2             Notices.  All notices, consents, waivers and other
communications under this Agreement shall be in writing (including facsimile or
similar writing) and shall be given:

 

(a)           If to Cell Genesys, to:

 

Cell
Genesys, Inc.

400
Oyster Point Boulevard, Suite 525

South
San Francisco, CA 94080

Attention:  Stephen A. Sherwin, M.D.,
Chairman and Chief Executive Officer

Facsimile No:  (650) 266-3070

 

with
a copy (which shall not constitute notice) to:

 

Shearman &
Sterling LLP

525 Market Street

San
Francisco, CA 94105

Attention:  Michael J. Kennedy, Esq.

Michael S. Dorf, Esq.

Facsimile
No:  (415) 616-1199

 

O’Melveny &
Myers LLP

2765
Sand Hill Road

Menlo
Park, CA 94025

Attention:  Sam Zucker, Esq.

Eric C. Sibbitt, Esq.

 

(b)           If to a Stockholder, to Stockholder’s
address set forth on Schedule A.

 

or such other address or facsimile number as a
party may hereafter specify for the purpose by notice to the other parties
hereto.  Each notice, consent, waiver or
other communication under this Agreement shall be effective only (a) if
given by facsimile, when the facsimile is transmitted to the facsimile number
specified in this Section and the appropriate facsimile confirmation is 

 

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received or (b) if given by overnight
courier or personal delivery when delivered at the address specified in this
Section.

 

Section 5.3             Further
Actions.  Upon the request of any
party to this Agreement, the other party will (a) furnish to the
requesting party any additional information, (b) execute and deliver, at
their own expense, any other documents and (c) take any other actions as
the requesting party may reasonably require to more effectively carry out the
intent of this Agreement.

 

Section 5.4             Entire
Agreement and Modification.  This
Agreement, the Proxy and any other documents delivered by the parties in
connection herewith constitute the entire agreement between the parties with
respect to the subject matter hereof and supersede all prior agreements and
understandings, both written and oral, between the parties with respect to its
subject matter and constitute (along with the documents delivered pursuant to
this Agreement) a complete and exclusive statement of the terms of the
agreement between the parties with respect to its subject matter. This
Agreement shall not be amended, supplemented or otherwise modified except by a
written document executed by the party against whose interest the modification
will operate.  The parties shall not enter
into any other agreement inconsistent with the terms and conditions of this
Agreement and the Proxy, or that addresses any of the subject matters addressed
in this Agreement and the Proxy.

 

Section 5.5             Drafting
and Representation.  The parties
agree that the terms and language of this Agreement were the result of
negotiations between the parties and, as a result, there shall be no
presumption that any ambiguities in this Agreement shall be resolved against
any party.  Any controversy over
construction of this Agreement shall be decided without regard to events of
authorship or negotiation.

 

Section 5.6             Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
affecting the validity or enforceability of the remaining provisions
hereof.  Any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  If any provision of this Agreement is so
broad as to be unenforceable, the provision shall be interpreted to be only so
broad as is enforceable.

 

Section 5.7             No
Third-Party Rights.  Stockholder may
not assign any of its rights or delegate any of its obligations under this
Agreement without the prior written consent of Cell Genesys.  Cell Genesys may not assign any of their
rights or delegate any of their obligations under this Agreement with respect
to Stockholder without the prior written consent of Stockholder.  This Agreement will apply to, be binding in
all respects upon, and inure to the benefit of each of the respective
successors, personal or legal representatives, heirs, distributes, devisees,
legatees, executors, administrators and permitted assigns of Stockholder and
the successors and permitted assigns of Cell Genesys.  Nothing expressed or referred to in this
Agreement will be construed to give any person, other than the parties to this
Agreement, any legal or equitable right, remedy or claim under or with respect
to this Agreement or any provision of this Agreement except such rights as may
inure to a successor or permitted assignee under this Section.

 

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Section 5.8             Enforcement
of Agreement.  Stockholder acknowledges
and agrees that Cell Genesys could be damaged irreparably if any of the
provisions of this Agreement are not performed in accordance with their
specific terms and that any breach of this Agreement by Stockholder could not
be adequately compensated by monetary damages. 
Accordingly, Stockholder agrees that, (a) it will waive, in any
action for specific performance, the defense of adequacy of a remedy at Law,
and (b) in addition to any other right or remedy to which Cell Genesys may
be entitled, at Law or in equity, Cell Genesys will be entitled to enforce any
provision of this Agreement by a decree of specific performance and to
temporary, preliminary and permanent injunctive relief to prevent breaches or
threatened breaches of any of the provisions of this Agreement, without posting
any bond or other undertaking.

 

Section 5.9             Waiver.  The rights and remedies of the parties to
this agreement are cumulative and not alternative.  Neither any failure nor any delay by a party
in exercising any right, power or privilege under this Agreement, the Proxy or
any of the documents referred to in this Agreement will operate as a waiver of
such right, power or privilege, and no single or partial exercise of any such
right, power or privilege will preclude any other or further exercise of such
right, power or privilege or the exercise of any other right, power or
privilege.  To the maximum extent
permitted by Law, (a) no claim or right arising out of this Agreement, the
Proxy or any of the documents referred to in this Agreement can be discharged
by one party, in whole or in part, by a waiver or renunciation of the claim or
right unless in a written document signed by the other party, (b) no
waiver that may be given by a party will be applicable except in the specific
instance for which it is given, and (c) no notice to or demand on one
party will be deemed to be a waiver of any obligation of that party or of the
right of the party giving such notice or demand to take further action without
notice or demand as provided in this Agreement, the Proxy or the documents
referred to in this Agreement.

 

Section 5.10           Governing
Law.  This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties
hereto will be governed by, construed under and interpreted in accordance with
the Laws of the State of Delaware, without giving effect to principles of
conflicts or choice of law.

 

Section 5.11           Consent
to Jurisdiction.  Any suit, action or
proceeding seeking to enforce any provision of, or based on any matter arising
out of or in connection with, this Agreement, the Proxy or the transactions
contemplated hereby or thereby shall be brought exclusively in the United
States District Court for the District of Delaware or, if such court does not have
jurisdiction over the subject matter of such proceeding or if such jurisdiction
is not available, in the Court of Chancery of the State of Delaware, County of
New Castle, and each of the parties hereby consents to the exclusive
jurisdiction of those courts (and of the appropriate appellate courts
therefrom) in any suit, action or proceeding and irrevocably waives, to the
fullest extent permitted by Law, any objection which it may now or hereafter
have to the laying of the venue of any suit, action or proceeding in any of
those courts or that any suit, action or proceeding which is brought in any of
those courts has been brought in an inconvenient forum. Process in any suit,
action or proceeding may be served on any party anywhere in the world, whether
within or without the jurisdiction of any of the named courts.  Without limiting the foregoing, each party
agrees that service of process on it by notice as provided in Section 5.2
shall be deemed effective service of process. 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ALL 

 

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RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 5.12           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of
which, taken together, shall constitute one and the same instrument.  This Agreement may be executed by facsimile
signature (including signatures in Adobe PDF or similar format).

 

Section 5.13           Termination.  This Agreement shall terminate upon the
earliest of (a) the Effective Time (as defined in the Merger Agreement), (b) the
termination of the Merger Agreement in accordance with Article IX thereof,
or (c) written notice by Cell Genesys to Stockholder of the termination of
this Agreement (the date of the earliest of the events described in clauses (a),
(b) and (c), the “Expiration Date”).

 

Section 5.14           Expenses.  Except as otherwise provided in this
Agreement, all costs and expenses incurred in connection with this Agreement
and the transactions contemplated hereby shall be paid by the party incurring
such expenses.

 

Section 5.15           Headings;
Construction.  The headings contained
in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement.  In this Agreement (a) words denoting the
singular include the plural and vice versa, (b) “it” or “its” or words
denoting any gender include all genders and (c) the word “including” shall
mean “including without limitation,” whether or not expressed.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties hereto have caused this
Voting Agreement to be duly executed as of the day and year first above
written.

 

	
  CELL
  GENESYS:

  	
  CELL
  GENESYS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STOCKHOLDER:

  	
  [NAME]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Additional
  Signature (if held jointly):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (If
  held jointly)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Printed Full Name)

  

 

 

SCHEDULE
A

 

	
  NAME AND

  ADDRESS OF STOCKHOLDER

  	
   

  	
  COMPANY SHARES

  BENEFICIALLY OWNED

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT
A

 

IRREVOCABLE PROXY

 

From and after the date hereof and until the Expiration
Date (as defined below), the undersigned stockholder (“Stockholder”) of
BioSante Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
hereby irrevocably (to the full extent permitted by Section 212 of the
Delaware General Corporation Law) grants to, and appoints, Cell Genesys, Inc.,
a Delaware corporation (“Cell Genesys”), and any designee of Cell
Genesys, and each of them individually, as the sole and exclusive attorney and
proxy of the undersigned, with full power of substitution and resubstitution,
to vote the Subject Shares (as defined in the Voting Agreement) of the
Stockholder, or grant a consent or approval in respect of the Subject Shares of
the Stockholder, in a manner consistent with Section 2.2 of the Voting
Agreement (as defined below).  Upon the
undersigned’s execution of this Proxy, any and all prior proxies given by the
undersigned with respect to any Subject Shares relating to the voting rights
expressly provided herein are hereby revoked and the undersigned agrees not to
grant any subsequent proxies with respect to the Subject Shares relating to such
voting rights at any time prior to the Expiration Date.

 

This Proxy is irrevocable, is coupled with an interest
and is granted pursuant to that certain Voting Agreement (as amended from time
to time, the “Voting Agreement”) of even date herewith, by and among
Cell Genesys and Stockholder, and is granted in consideration of Cell Genesys
entering into the Merger Agreement (as defined in the Voting Agreement). As
used herein, the term “Expiration Date,” and all capitalized terms used
herein and not otherwise defined, shall have the meanings set forth in the
Voting Agreement.  The
Stockholder agrees that this proxy shall be irrevocable until the Expiration
Date and is coupled with an interest sufficient at law to support an
irrevocable proxy and given to Cell Genesys as an inducement to enter into the
Merger Agreement and, to the extent permitted under applicable law, shall be
valid and binding on any person to whom Stockholder may transfer any of his,
her or its Subject Shares in breach of the Voting Agreement.  The Stockholder hereby ratifies
and confirms all that such irrevocable proxy may lawfully do or cause to be
done by virtue hereof.

 

The attorneys and proxies named above, and each of them,
are hereby authorized and empowered by the undersigned, at any time prior to
the Expiration Date, to act as the undersigned’s attorney and proxy to vote the
Subject Shares, and to exercise all voting and other rights of the undersigned
with respect to the Subject Shares (including, without limitation, the power to
execute and deliver written consents pursuant to Section 228 of the
Delaware General Corporation Law), at every annual, special or adjourned
meeting of the stockholders of the Company and in every written consent in lieu
of such meeting in a manner consistent with Section 2.2 of the Voting
Agreement.

 

This Proxy shall be binding upon the heirs, estate,
executors, personal representatives, successors and assigns of Stockholder
(including any transferee of any of the Subject Shares), and all authority
herein conferred or agreed to be conferred shall survive the death or
incapacity of the Stockholder.

 

 

If any provision of this Proxy or any part of any such
provision is held under any circumstances to be invalid or unenforceable in any
jurisdiction, then (a) such provision or part thereof shall, with respect
to such circumstances and in such jurisdiction, be deemed amended to conform to
applicable laws so as to be valid and enforceable to the fullest possible
extent, (b) the invalidity or unenforceability of such provision or part
thereof under such circumstances and in such jurisdiction shall not affect the
validity or enforceability of such provision or part thereof under any other
circumstances or in any other jurisdiction, and (c) the invalidity or
unenforceability of such provision or part thereof shall not affect the
validity or enforceability of the remainder of such provision or the validity
or enforceability of any other provision of this Proxy. Each provision of this
Proxy is separable from every other provision of this Proxy, and each part of
each provision of this Proxy is separable from every other part of such
provision.

 

Dated:  June 29,
2009

 

	
   

  	
   

  
	
   

  	
  (Signature of
  Stockholder)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print Name of
  Stockholder)

  
	
   

  	
   

  
	
   

  	
  Number
  of Subject Shares owned of record or Beneficially Owned as of the date of
  this Proxy:

  
	
   

  	
   

  
	
   

  	
   

  

 

2Exhibit 4.1

 

CHINAEDU
CORPORATION

 

EQUITY
INCENTIVE PLAN

 

ARTICLE 1

 

PURPOSE

 

The purpose of this
Equity Incentive Plan (the “Plan”) is to attract qualified personnel and to and
retain their service with CHINAEDU Corporation (the “Company”) and its Subsidiaries
(hereinafter defined), and to provide such persons with an ownership interest
in the Company through the granting of stock options, restricted stock and
restricted stock units that will:

 

(a)                                  increase the interest of the employees,
non-employee directors and consultants in the Company’s and its Subsidiaries’
welfare;

(b)                                 furnish an incentive to those employees,
non-employee directors and consultants to continue their services for the
Company; and

(c)                                  provide a means through which the Company
and its Subsidiaries may attract able persons to provide services to them.

 

ARTICLE 2

 

DEFINITIONS

 

For the purpose of the
Plan, unless the context requires otherwise, the following terms shall have the
meanings indicated:

 

	
  “Affiliate”

  	
   

  	
  With respect to the
  Company, any company or other trade or business that controls, is controlled
  by or is under common control with the Company within the meaning of
  Rule 405 of Regulation C under the Securities Act, including, without
  limitation, any Subsidiary. For purposes of granting stock options, an entity
  may not be considered an Affiliate unless the Company holds a “controlling
  interest” in such entity, where the term “controlling interest” has the same
  meaning as provided in Treasury Regulation 1.414(c)-2(b)(2)(i), provided that
  the language “at least 50 percent” is used instead of “at least 80 percent”
  and, provided further, that where granting of stock options is based upon a
  legitimate business criteria, the language “at least 20 percent” is used
  instead of “at least 80 percent” each place it appears in Treasury Regulation
  1.414(c)-2(b)(2)(i)

  

 

 

	
  “American Depositary
  Receipts” or “ADRs”

  	
   

  	
  A physical certificate
  evidencing ownership in American Depositary Shares, issued by the Depositary
  and listed on an established national or regional stock exchange or is
  publicly traded on an established securities market in the United States

  
	
   

  	
   

  	
   

  
	
  “American Depositary
  Shares” or “ADSs”

  	
   

  	
  An equity right
  representing the means an equity right representing one or more Shares of the
  Company, or a fraction of a Share of the Company, held on deposit by the
  Custodian, which carries the corporate and economic rights of the Shares of
  the Company, subject to the terms specified on the American Depositary
  Receipt

  
	
   

  	
   

  	
   

  
	
  “Applicable Laws”

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Award”

  	
   

  	
  A grant of an Option,
  Restricted Stock or Restricted Stock Unit under the Plan

  
	
   

  	
   

  	
   

  
	
  “Award Agreement”

  	
   

  	
  The Agreement between
  the Company and a Grantee that evidences and sets out the terms of a Grant

  
	
   

  	
   

  	
   

  
	
  “Benefit Arrangement”

  	
   

  	
  Shall have the meaning
  set forth in Article 27

  
	
   

  	
   

  	
   

  
	
  “Board”

  	
   

  	
  The Board of Directors
  of the Company

  
	
   

  	
   

  	
   

  
	
  “Change of Control”

  	
   

  	
  (i) the
  dissolution or liquidation of the Company or a merger, consolidation, or
  reorganization of the Company with one or more other entities in which the
  Company is not the surviving entity, (ii) a sale of substantially all of
  the assets of the Company to another person or entity, or (iii) any
  transaction (including without limitation a merger or reorganization in

  

 

A-2

 

	
   

  	
   

  	
  which the Company is
  the surviving entity) which results in any person or entity owning 50% or
  more of the combined voting power of all classes of shares of the Company

  
	
   

  	
   

  	
   

  
	
  “Code”

  	
   

  	
  means the Internal
  Revenue Code of 1986, as now in effect or as hereafter amended

  
	
   

  	
   

  	
   

  
	
  “Company”

  	
   

  	
  CHINAEDU Corporation

  
	
   

  	
   

  	
   

  
	
  “Compensation
  Committee”

  	
   

  	
  The Compensation
  Committee established in accordance with Article 2.8 of the Fourth
  Amended and Restated Shareholders Agreement, which Compensation Committee
  shall be comprised of independent directors in accordance with NASDAQ rules.

  
	
   

  	
   

  	
   

  
	
  “Custodian”

  	
   

  	
  Hong Kong &
  Shanghai Bank Corporation Limited or such other bank appointed by the Company
  to hold any ADSs on deposit upon or after a public offering of the Shares

  
	
   

  	
   

  	
   

  
	
  “Grant Date”

  	
   

  	
  The date on which
  Restricted Stock, Restricted Stock Units or an Option is granted by
  resolutions of the Directors

  
	
   

  	
   

  	
   

  
	
  “Depositary”

  	
   

  	
  The Bank of New York or
  such other U.S. bank appointed by the Company to issues any ADRs upon or
  after a public offering of the Shares

  
	
   

  	
   

  	
   

  
	
  “Disability”

  	
   

  	
  The Grantee is unable
  to perform each of the essential duties of such Grantee’s position by reason
  of a medically determinable physical or mental impairment which is
  potentially permanent in character or which can be expected to last for a
  continuous period of not less than 12 months; provided, however, that, with
  respect to rules regarding expiration of an Incentive Stock Option
  following termination of the Grantee’s Service, Disability shall mean the
  Grantee is unable to engage in any substantial gainful activity by reason of
  a medically determinable physical or mental

  

 

A-3

 

	
   

  	
   

  	
  impairment which can be
  expected to result in death or which has lasted or can be expected to last
  for a continuous period of not less than 12 months

  
	
   

  	
   

  	
   

  
	
  “Effective Date”

  	
   

  	
  November 20, 2007,
  the date the Plan was approved and adopted by the Board

  
	
   

  	
   

  	
   

  
	
  “Exchange Act”

  	
   

  	
  The Securities Exchange
  Act of 1934, as now in effect or as hereafter amended

  
	
   

  	
   

  	
   

  
	
  “Fair Market Value”

  	
   

  	
  The value of a Share,
  determined as follows: if on the Grant Date or other determination date the
  Shares are listed on an established national or regional stock exchange, or
  are publicly traded on an established securities market, the Fair Market
  Value of a Share shall be the closing price of a Share on such exchange or in
  such market (if there is more than one such exchange or market the
  Compensation Committee shall determine the appropriate exchange or market) on
  the Grant Date or such other determination date (or if there is no such
  reported closing price, the Fair Market Value shall be the mean between the
  highest bid and lowest asked prices or between the high and low sale prices
  on such trading day) or, if no sale of Shares is reported for such trading
  day, on the next preceding day on which any sale shall have been reported. If
  the Shares are not listed on such an exchange, or traded on such a market,
  Fair Market Value shall be the value of the Shares as determined by the
  Compensation Committee by the reasonable application of a reasonable
  valuation method in a manner consistent with Code Section 409A

  
	
   

  	
   

  	
   

  
	
  “Grant”

  	
   

  	
  An award of an Option,
  Restricted Stock or Restricted Stock Units under the Plan

  
	
   

  	
   

  	
   

  
	
  “Grant Date”

  	
   

  	
  As determined by the
  Compensation Committee, the latest to occur of (i) the date as of which
  the Compensation Committee approves a Grant, (ii) the date

  

 

A-4

 

	
   

  	
   

  	
  on which the recipient
  of a Grant first becomes eligible to receive a Grant or (iii) such other
  date as may be specified by the Compensation Committee.

  
	
   

  	
   

  	
   

  
	
  “Grantee”

  	
   

  	
  Person who receives or
  holds a Grant under the Plan

  
	
   

  	
   

  	
   

  
	
  “Incentive Stock
  Option”

  	
   

  	
  An “incentive stock
  option” within the meaning of Section 422 of the Code, or the
  corresponding provision of any subsequently enacted tax statute, as amended
  from time to time

  
	
   

  	
   

  	
   

  
	
  “IPO”

  	
   

  	
  The initial sale to the
  general public of the Shares pursuant to a registration statement filed with
  and declared effective by the U.S. Securities and Exchange Commission

  
	
   

  	
   

  	
   

  
	
  “Nonqualified Stock
  Option”

  	
   

  	
  A stock option that is
  not an Incentive Stock Option

  
	
   

  	
   

  	
   

  
	
  “Option”

  	
   

  	
  An option to purchase
  one or more Shares pursuant to the Plan

  
	
   

  	
   

  	
   

  
	
  “Option Period”

  	
   

  	
  The period that the
  Option may be exercised as specified by the Compensation Committee

  
	
   

  	
   

  	
   

  
	
  “Option Price”

  	
   

  	
  The price per Share
  payable on the exercise of an Option, such price as from time to time
  specified by resolutions of the Directors

  
	
   

  	
   

  	
   

  
	
  “Other Agreement”

  	
   

  	
  Shall have the meaning
  set forth in Article 27

  
	
   

  	
   

  	
   

  
	
  “Plan”

  	
   

  	
  This CHINAEDU
  Corporation Third Amended and Restated Stock Option Plan, in its present form
  or as from time to time amended in accordance with the provisions hereof and
  subject to the provisions of the Shareholders Agreement

  
	
   

  	
   

  	
   

  
	
  “Purchase Price”

  	
   

  	
  The purchase price for
  each share of Stock pursuant to a grant of Restricted Stock or Restricted
  Stock Unit

  

 

A-5

 

	
  “Reporting Person”

  	
   

  	
  A person who is
  required to file reports under Section 16(a) of the Exchange Act

  
	
   

  	
   

  	
   

  
	
  “Restricted Stock”

  	
   

  	
  Shares awarded to a
  Grantee pursuant to this Plan, that are subject to restrictions and to a risk
  of forfeiture

  
	
   

  	
   

  	
   

  
	
  “Restricted Stock Unit”

  	
   

  	
  A bookkeeping entry
  representing the equivalent of one Share awarded to a Grantee

  
	
   

  	
   

  	
   

  
	
  “Securities Act”

  	
   

  	
  The Securities Act of
  1933, as now in effect or as hereafter amended

  
	
   

  	
   

  	
   

  
	
  “Service”

  	
   

  	
  Service as an employee,
  officer, director or other Service Provider of the Company or an Affiliate.
  Unless otherwise stated in the applicable Award Agreement, a Grantee’s change
  in position or duties shall not result in interrupted or terminated Service,
  so long as such Grantee continues to be an employee, officer, director or
  other Service Provider of the Company or an Affiliate. Subject to the
  preceding sentence, whether a termination of Service shall have occurred for
  purposes of the plan shall be determined by the Compensation Committee, which
  determination shall be final, binding and conclusive

  
	
   

  	
   

  	
   

  
	
  “Shareholders
  Agreement”

  	
   

  	
  The Fourth Amended and
  Restated Shareholders Agreement entered into by and among the Company and
  various shareholders of the Company on or about March 9, 2007

  
	
   

  	
   

  	
   

  
	
  “Shares”

  	
   

  	
  The ordinary shares,
  $.01 par value per share, of the Company. Upon an IPO, “Shares” shall also
  mean the ADSs to be issued by the Company in satisfaction of awards over
  Shares granted under the Plan

  
	
   

  	
   

  	
   

  
	
  “Subsidiary”

  	
   

  	
  Any corporation,
  association or other business entity of which securities representing more
  than fifty percent (50%) of the combined voting power of the total voting
  stock (or in the case of an association or other business entity which

  

 

A-6

 

	
   

  	
   

  	
  is not a corporation,
  more than fifty percent (50%) of the equity interest) is at the time owned or
  controlled, directly or indirectly, by the Company or one or more
  Subsidiaries of the Company or a combination thereof

  
	
   

  	
   

  	
   

  
	
  “Ten-Percent
  Shareholder”

  	
   

  	
  An individual who owns
  more than ten percent (10%) of the total combined voting power of all classes
  of outstanding shares of the Company, its parents or any of its Subsidiaries.
  In determining share ownership, the attribution rules of Section 424(d) of
  the Code shall be applied

  
	
   

  	
   

  	
   

  
	
  “U.S. Grantee”

  	
   

  	
  Any Grantee who is or
  becomes a taxpayer in the United States

  

 

ARTICLE 3

 

ADMINISTRATION

 

The Plan shall be
administered by the Compensation Committee. Each determination, interpretation
or other action made or taken by the Compensation Committee pursuant to the
provisions of the Plan will be conclusive and binding for all purposes and on
all persons.  In the event that the Plan, any Grant or any Award Agreement
entered into hereunder provides for any action to be taken by or determination
to be made by the Compensation Committee, such action may be taken by or such
determination may be made by the full Board.  To the extent permitted by
law, the Compensation Committee may upon resolution delegate some or all of its
authority and powers with respect to the administration of the Plan to one or
more members of the Board pursuant to such conditions or limitations as the
Compensation Committee may establish in such resolution

 

Any vacancy occurring in
the membership of the Compensation Committee may be filled by appointment by
the Board in accordance with Article 2.8 of the Shareholders
Agreement.  The Compensation Committee shall select one of its members to
act as its Chairman and shall make such rules and regulations for its
operation, as it deems appropriate. Not less than half the total numbers of
directors appointed to the Compensation Committee present shall constitute a
quorum, and the act of a majority of the members of the Compensation Committee
present at a meeting at which a quorum is present shall be the act of the
Compensation Committee. The Compensation Committee shall determine and
designate from time the employees to whom Awards will be granted (including the
number of shares subject to each Award), interpret the Plan, prescribe, amend,
and rescind any rules and regulations necessary or appropriate for the
administration of the Plan, and make such other determinations and take such
other action as it deems necessary or advisable. Any interpretation,
determination, or other action made or taken by the Compensation Committee
shall be final, binding, and conclusive on all interested parties.

 

Furthermore, if the
Company is required to prepare an accounting restatement due to the material
noncompliance of the Company, as a result of misconduct, with any financial
reporting requirement

 

A-7

 

under the securities
laws, the individuals subject to automatic forfeiture under Section 304 of
the Sarbanes-Oxley Act of 2002 and any Grantee who knowingly engaged in the
misconduct, was grossly negligent in engaging in the misconduct, knowingly
failed to prevent the misconduct or was grossly negligent in failing to prevent
the misconduct, shall reimburse the Company the amount of any payment in
settlement of an Award earned or accrued during the twelve (12) month period
following the first public issuance or filing with the United States Securities
and Exchange Commission (whichever first occurred) of the financial document
that contained such material noncompliance.

 

In order to assure the
viability of Awards granted to Grantees employed in various jurisdictions, the
Compensation Committee may provide for such special terms as it may consider
necessary or appropriate to accommodate differences in local law, tax policy,
or custom applicable in the jurisdiction in which the Grantee resides or is
employed.  Moreover, the Compensation Committee may approve such supplements
to, or amendments, restatements, or alternative versions of, the Plan as it may
consider necessary or appropriate for such purposes without thereby affecting
the terms of the Plan in effect for any other purpose; provided, however, that no such supplements,
amendments, restatements, or alternative versions shall increase the share
limitations contained in Article 5 of the Plan.  Notwithstanding the
foregoing, the Compensation Committee may not take any actions hereunder, and
no Awards shall be granted, that would violate any Applicable Laws.

 

Authority of the Compensation
Committee

 

Subject
to the provisions of the Plan, the Compensation Committee shall have the full
authority, in its sole discretion, to take any actions it deems necessary or
advisable for the administration of the Plan. Such actions shall include:

 

(i) selecting
Participants who are to receive Awards under the Plan;

 

(ii) determining
the exercise price for any Options and the Fair Market Value;

 

(iii) determining
the type, number, Grant Date, vesting requirements, duration and other features
and conditions of such Awards;

 

(iv) approving
the forms of agreements to be used under the Plan;

 

(v) amending
or modifying any outstanding Awards, but only in ways that will not be adverse
to the award/option holder, including, without limitation, the repricing of an
Option by reduction of the exercise price of an Option or the
replacement of an Option with cash or other award type that would be
treated as a repricing under the rules of the stock exchange on which the
Shares are listed;

 

(vi) accelerating
the vesting, or extending the post-termination exercise term, of Awards at any
time and under such terms and conditions as it deems appropriate;

 

(vii) interpreting
the Plan and any Award Agreement;

 

(viii) correcting
any defect, supplying any omission or reconciling any inconsistency in the Plan
or any Award Agreement;

 

(ix) adopting
such rules or guidelines as it deems appropriate to implement the Plan;

 

A-8

 

(x) authorizing
any person to execute on behalf of the Company any instrument required to
effect the grant of an Award previously authorized by the Committee;

 

(xi) making
all other decisions relating to the operation of the Plan; and

 

(xii) adopting
such plans or subplans as may be deemed necessary or appropriate to comply with
the laws of certain countries, allow for tax-preferred treatment of the Awards
or otherwise provide for the participation by Participants who reside in such
countries.

 

The Compensation
Committee’s determinations under the Plan shall be final and binding on all
persons.

 

ARTICLE 4

 

ELIGIBILITY

 

Any employee and
non-employee director of the Company or any of its Subsidiaries, as well as any
consultant who performs Services for the Company or any of its Subsidiaries,
whose judgment, initiative and efforts contributed or may be expected to
contribute to a successful performance of the Company or any of the
Subsidiaries of the Company is eligible to participate in the Plan. 
However, An Incentive Stock Option may only be granted to employees and a
Nonqualified Stock Option may be granted to employees, non-employee directors
and consultants.

 

ARTICLE
5

 

SHARES
SUBJECT TO PLAN

 

Not more than 12,846,621
Shares may be issued under this Plan (subject to this paragraph and Article 20(b) below),
provided however that there shall be an annual increase to be added on January 1st each year in an amount equal to two
percent (2%) of the total number of shares of Shares of the Company outstanding
on December 31st of the preceding calendar year (rounded down to the
nearest whole share). The number of Shares that are subject to Options at any
time under this Plan shall not exceed the number of Shares that then remain
available for issuance under this Plan.  The Company, during the term of
the Plan, shall at all times reserve and keep available sufficient Shares to
satisfy the requirements of this Plan.  Shares offered under this Plan may
be authorized but unissued Shares or treasury Shares.  In the event that
Shares previously issued under the Plan are reacquired by the Company, such
Shares shall be added to the number of Shares then available for issuance under
this Plan.  In the event that an outstanding Option for any reason expires
or is canceled, the Shares allocable to the unexercised portion of such Option
shall be added to the number of Shares then available for issuance under this
Plan.

 

ARTICLE
6

 

STOCK
OWNERSHIP LIMITATION

 

No Incentive Stock Option
may be granted under this Plan which would result in the aggregate number

 

A-9

 

of Shares issued or
issuable or which may be issuable under this Plan to exceed ten per cent (10%)
of the issued share capital of the Company at the time of granting of the
Option (excluding any shares to be issued upon exercise of the Options; provided, however, that this limitation
will not apply if the exercise price is at least 110% of the fair market value
of the Share on the Grant Date and the Option Period is not greater than five
years from the Grant Date).

 

Nonqualified Stock
Options are not subject to the restrictions set forth in this Article.

 

ARTICLE
7

 

LIMITATION
ON CERTAIN TERMS OF OPTIONS

 

Subject to the terms of
the Plan, the Compensation Committee shall determine the provisions, terms, and
conditions of each Option including, but not limited to, the Option vesting
schedule, forfeiture provisions, form of payment upon settlement of the Option,
payment contingencies, and satisfaction of any performance criteria, provided, however; that unless approved by the
Compensation Committee (i) no Option vesting schedule shall be less than
three (3) years and (ii) no acceleration for Option vesting schedule
shall be permitted.  The performance criteria established by the
Compensation Committee may be based on any one of, or combination of, increase
in share price, earnings per share, total shareholder return, return on equity,
return on assets, return on investment, net operating income, cash flow,
revenue, economic value added, personal management objectives, or other measure
of performance selected by the Compensation Committee.

 

ARTICLE 8

 

 ALLOTMENT
OF SHARES

 

The grant of an Option to
a Grantee shall not be deemed either to entitle the Grantee to, or to disqualify
the Grantee from, participation in any other grant of Options under the Plan.

 

ARTICLE
9

 

GRANT
OF OPTIONS

 

All Options under the
Plan shall be granted by the Compensation Committee.  The grant of Options
shall be evidenced by stock option agreements setting forth the total number of
shares subject to the Option, the exercise price, the term of the Option, the
Grant Date, and such other terms and provisions as are approved by the
Compensation Committee.  Options may be granted in different classes. The
Company shall execute appropriate stock option agreements with the Grantees
after approval of the issuance of stock option grants.

 

A-10

 

ARTICLE
10

 

EXERCISE
PRICE

 

The exercise price for an
Option shall not be less than 100% of the Fair Market Value per share of the
Share on the Grant Date. The Compensation Committee shall determine the Fair
Market Value of the Share on the Grant Date and shall set forth the
determination in its minutes.

 

ARTICLE
11

 

OPTION
PERIOD

 

Each Option shall
terminate upon the expiration of ten years from the Grant Date, or under such
circumstances and on such date prior thereto as is set forth in the Plan or as
may be fixed by the Compensation Committee and stated in the Award Agreement
relating to such Option; provided, however, that in the event that the Grantee
is a Ten-Percent Shareholder, an Option granted to such Grantee that is
intended to be an Incentive Stock Option shall not be exercisable after the
expiration of five years from its Grant Date.  No Option granted under the
Plan may be exercised at any time after the Option Period.

 

ARTICLE
12

 

TERMINATION
OF EMPLOYMENT, DIRECTORSHIP

OR
CONSULTANCY SERVICES

 

In the event a Grantee
shall cease to provide Services to the Company or its Subsidiaries, such
Grantee’s Options shall be terminated as follows:

 

(a)          Death. In the event of death while the Grantees
are providing services, the Option may be exercised, for a period of one (1) year
after the Grantee’s death or until expiration of the Option Period (if sooner)
to the extent of the shares with respect to which the Option could have been
exercised by the Grantee on the date of the Grantee’s death; such Option may
only be exercised by the personal representative of the Grantee’s estate or by
the person who acquired the right to exercise the Option by bequest or
inheritance or by reason of the Grantee’s death.

 

(b)         Disability.  In the event of termination of
services due to Disability, the Option may be exercised by the Grantee or his
or her guardian for a period of one (1) year after such termination or
until expiration of the Option Period (if sooner), to the extent of the shares
with respect to which the Option could have been exercised by the Grantee on
the date of such termination.

 

(c)          Termination for
Other Reasons. 
In the event of termination of services for reasons other than as set forth in
subparagraphs (a) and (b) above, the Option may be exercised by
Grantee for a period of 90 days after the Grantee’s termination or until
expiration of the Option Period (if sooner), to the extent of the shares with
respect to which the Option could have been vested by the Grantee on the date
of termination.

 

A-11

 

Notwithstanding the
foregoing, the Compensation Committee may grant Options not subject to the
termination provisions in the Articles.  In addition, the Compensation
Committee may waive the requirements set forth in this Article with
respect to any Grantee.

 

ARTICLE
13

 

EXERCISE OF OPTIONS

 

Options granted under the
Plan may be exercised during the Option Period, at such times and in such
amounts, in accordance with the terms and conditions and subject to such
restrictions as are set forth in the applicable Agreements.  Subject to Article 7
hereof, if the Compensation Committee imposes conditions upon exercise, then
subsequent to the Grant Date the Compensation Committee may, also in its sole
discretion, accelerate the date on which all or any portion of the Options may
be exercised.

 

ARTICLE
14

 

NON-ASSIGNABILITY

 

An Option granted to a
Grantee may not be transferred or assigned other than by will or by the laws of
descent and distribution.  If the Grantee attempts to alienate, assign,
pledge, hypothecate or otherwise dispose of his Option or any right thereunder,
except as provided for in this Plan or the stock option agreement, or in the
event of any levy, attachment, execution or similar process upon the right or
interest conferred by this Plan or the stock option agreement, the Compensation
Committee may terminate the Grantee’s Option by notice to him, and it shall
thereupon become null and void.

 

ARTICLE
15

 

RESTRICTED
STOCK AND RESTRICTED STOCK UNITS

 

(a)                 The Compensation Committee may from time
to time grant Restricted Stock and Restricted Stock Units to Grantees, subject
to such restrictions, conditions and other terms as the Compensation Committee
may determine.

 

(b)                At the time an award of Restricted Stock
or Restricted Stock Units is made under this Plan, the Compensation Committee
shall establish a restriction period applicable to such Award.  Each Grant
of Restricted Stock or Restricted Stock Units may be subject to a different
restriction period.  The Compensation Committee may, in its sole
discretion, at the time a Grant of Restricted Stock or Restricted Stock Units
is made, prescribe conditions that must be satisfied prior to the expiration of
the restriction period, including the satisfaction of corporate or individual
performance objectives or the continued provision of Service, in order that all
or any portion of the Award shall vest.

 

The Compensation
Committee also may, in its sole discretion, shorten or terminate the
restriction period or waive any of the conditions applicable to all or a
portion of the Restricted Stock or Restricted Stock Units.  The Restricted
Stock and Restricted Stock Units may not be sold, transferred, assigned,
pledged or otherwise encumbered or disposed of during the restriction period or
prior to the satisfaction of any other conditions prescribed by the
Compensation Committee with respect to such Restricted Stock or Restricted
Stock Units.

 

A-12

 

(c)                 The Company shall issue, in the name of
each Grantee to whom Restricted Stock or Restricted Stock Units has been
granted, share certificates representing the total number of shares of
Restricted Stock granted to the Grantee, as soon as reasonably practicable
after the Grant Date.  The Compensation Committee may provide in the Award
Agreement that either (i) the Secretary of the Company shall hold such
certificates for the Grantee’s benefit until such time as the Restricted Stock
is forfeited to the Company, or the restrictions lapse, or (ii) such
certificates shall be delivered to the Grantee, provided, however, that such
certificates shall bear a legend or legends that complies with the applicable
securities laws and regulations and makes appropriate reference to the
restrictions imposed under the Plan and the Award Agreement.

 

(d)                Unless the Compensation Committee
otherwise provides in an Award Agreement, holders of Restricted Stock shall
have the right to vote such Shares and the right to receive any dividends
declared or paid with respect to such Shares.  The Compensation Committee
may provide that any dividends paid on Restricted Stock must be reinvested in
Shares, which may or may not be subject to the same vesting conditions and
restrictions applicable to such Restricted Stock.  All distributions, if
any, received by a Grantee with respect to Restricted Stock as a result of any
stock split, stock dividend, combination of shares, or other similar
transaction shall be subject to the restrictions applicable to the original
Grant.

 

(e)                 Holders of Restricted Stock Units shall
have no rights as shareholders of the Company.  The Compensation Committee
may provide in an Award Agreement evidencing a grant of Restricted Stock Units
that the holder of such Restricted Stock Units shall be entitled to receive,
upon the Company’s payment of a cash dividend on its outstanding Shares, a cash
payment for each Restricted Stock Unit held equal to the per-share dividend
paid on the Share.   Such Award Agreement may also provide that such
cash payment will be deemed reinvested in additional Restricted Stock Units at
a price per unit equal to the Fair Market Value of a Share on the date that
such dividend is paid.  A holder of Restricted Stock Units shall have no
right other than those of a general creditor of the Company.  Restricted
Stock Units represent an unfounded and unsecured obligation of the Company,
subject to the terms and conditions of the applicable Award Agreement.

 

(f)                   Unless otherwise provided by the Compensation
Committee in the applicable Award Agreement, upon the termination of a Grantee’s
provision of Service to the Company or an affiliate of the Company, any shares
of Restricted Stock or Restricted Stock Units held by such Grantee that have
not vested, or with respect to which all applicable restrictions and conditions
have not lapsed, shall immediately be deemed forfeited.  Upon forfeiture of Restricted Stock or
Restricted Stock Units, the Grantee shall have no further rights with respect
to such Grant, including but not limited to any right to vote Restricted Stock
or any right to receive dividends with respect to shares of Restricted Stock or
Restricted Stock Units.

 

(f)                   The Grantee shall be required to purchase
the Restricted Stock and Restricted Stock Units from the Company at a Purchase
Price equal to the greater of (i) the aggregate par value of the shares of
Stock represented by such Restricted Stock or Restricted Stock Units or (ii) the
Purchase Price, if any, specified in the Award Agreement relating to such
Restricted Stock or Restricted Stock Units.  The Purchase Price shall be
payable in the form of cash or cash equivalents acceptable to the Company or,
in the discretion of the Compensation Committee, in consideration for past
Services rendered to the Company or an affiliate of the Company.

 

Upon the expiration or
termination of the restriction period and the satisfaction of any other
conditions prescribed by the Compensation Committee, having properly paid the
Purchase Price,

 

A-13

 

the restrictions
applicable to shares of Restricted Stock and Restricted Stock Units shall
lapse, and, unless otherwise provided in the Award Agreement, a stock
certificate for such Shares shall be delivered, free of all such restrictions,
to the Grantee or the Grantee’s beneficiary or estate, as the case may be.

 

ARTICLE
16

 

PAYMENT
AND REPURCHASE

 

No Shares may be issued
until full payment of the Option Price or Purchase Price therefor has been
made, and a Grantee will have none of the rights of a shareholder until Shares
are issued to him.

 

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

 

The Compensation
Committee may, at the time it grants Options, grant to the Grantees rights to
exercise their Options without cash, provided that the Shares or any securities
representing the Shares are publicly traded.  After the Company’s Shares
or securities representing the Shares are publicly traded, Grantees who are
eligible to exercise their Options without cash may give a cashless exercise
notice to the Company, specifying the number of shares to be sold and the
desired selling prices for such shares, and the Company will designate a broker
to sell such Options on behalf of the Grantees.  The amounts representing
the difference between the Option Prices and the prices at which the underlying
Shares for such Options are sold will be used as follows: (i) the amounts
will first be used to pay all expenses, including the brokerage commission and
other selling expenses, (ii) the Company will then deduct from the amounts
applicable taxes in accordance with Article 26 below, and (iii) the
remaining amounts will be paid to the Grantee exercising such Options.

 

Notwithstanding anything
in the Plan to the contrary and in accordance with Article 3 of the Plan,
if you are resident for tax purposes in the Peoples Republic of China, a
Grantee may exercise an Option only by placing a market sell order with a
broker with respect to Shares then issuable upon exercise.

 

The Compensation
Committee may provide for exercise of Options immediately or in installments
and upon such other terms, conditions and restrictions as it may determine,
including granting the

 

A-14

 

Company the right to
repurchase shares issued upon exercise of Options.  If the Shares are
listed on an established national or regional stock exchange or is publicly
traded in an established securities market, the Company’s repurchase rights
shall terminate as of the first date that the Shares are so listed, quoted or
publicly traded.

 

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

 

ARTICLE
17

 

AMENDMENT
OR DISCONTINUANCE

 

Subject to provisions in
the Shareholders Agreement or the Second Amended and Restated Articles of
Association, the Plan may be amended or discontinued by the Board without the
approval of the shareholders of the Company.  No amendment may adversely
affect an outstanding Award without the consent of the Grantee.

 

ARTICLE
18

 

EFFECT
OF THE PLAN

 

Neither the adoption of
this Plan nor any action of the Board or the Compensation Committee shall be
deemed to give any officer or employee any right to be granted an Option to
purchase Shares of the Company or any other rights except as may be evidenced
by an Award Agreement, or any amendment thereto, duly authorized by the
Compensation Committee and executed on behalf of the Company and then only to
the extent and upon the terms and conditions expressly set forth therein.

 

ARTICLE
19

 

TERM

 

Unless sooner terminated
by action of the Board, the Plan will terminate on November 20, 2017, but
Awards granted before the date will continue to be effective in accordance with
their terms and conditions.

 

ARTICLE
20

 

RECAPITALIZATION,
MERGER AND CONSOLIDATION

 

(a)                The existence of this Plan and Awards granted
hereunder shall not affect in any way the right or power of the Company or its
shareholders to make or authorize any or all adjustments,

 

A-15

 

recapitalizations,
reorganizations or other changes in the Company’s capital structure and its
business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or preference stocks ranking prior to or otherwise
affecting the Shares or the rights thereof (or any rights, options or warrants
to purchase same), or the dissolution or liquidation of the Company, or any
sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding, whether of a similar character or otherwise.

 

(b)               The number of Shares available under the Plan
described in Article 5, the number of Shares that may be issued pursuant
to Awards granted under the Plan, and the consideration payable per Share upon
exercise, shall be proportionately adjusted by the Compensation Committee for
any increase or decrease in the number of issued Shares resulting from a
subdivision or consolidation of Shares or other capital adjustment, or the
payment of a stock dividend or other increase or decrease in such Shares,
effected without receipt of consideration by the Company; provided, however,
that any fractional Shares resulting from any such adjustment shall be
eliminated for the purposes of such adjustment.

 

(c)                Subject to any required action by the
shareholders, if the Company shall be the surviving or resulting corporation in
any merger or consolidation, any Award granted hereunder shall pertain to and
apply to the securities or rights (including cash, property or assets) to which
a holder of such Grant would have been entitled.

 

(d)               In the event of any merger or consolidation pursuant
to which the Company is not the surviving or resulting corporation, there shall
be substituted for each share of Restricted Stock, Restricted Stock Units or
Shares subject to the unexercised portions of such outstanding Options, that
number of shares of each class of stock or other securities or that amount of
cash, property or assets of the surviving or consolidated company which were
distributed or distributable to the shareholders of the Company in respect to
Shares held by them, such outstanding Options to be thereafter exercisable
(subject to appropriate adjustment, if appropriate, as to the per share
exercise prices for such stock, securities, cash or property, as determined
under subsection b above) in accordance with their terms.  Subject to any
contrary language in an Award Agreement evidencing a Grant of Restricted Stock
or Restricted Stock Units, any restriction applicable to such Grant shall apply
as well to any replacement shares received by the Grantee as a result of the
merger or consolidation.  Notwithstanding the foregoing, however, all
Options may be canceled by the Company as of the effective date of any such
reorganization, merger or consolidation or of any dissolution or liquidation of
the Company by giving notice to each holder thereof or his personal
representative of its intention to do so and by permitting the purchase during
the thirty (30) day period next preceding such effective date of all of the
shares subject to such outstanding options.  The Compensation Committee
may elect, in its sole discretion, to cancel any outstanding Awards and pay or
deliver, or cause to be paid or delivered, to the holder thereof an amount in
cash or securities having a value (as determined by the Compensation Committee
acting in good faith), in the case of Restricted Stock or Restricted Stock
Units, equal to the formula or fixed price per share paid to shareholders and,
in the case of Options, equal to the product of the number of Shares subject to
the Option (the “Award Shares”) multiplied by the amount, if any, by which (I) the
formula or fixed price per share paid to shareholders pursuant to such
transaction exceeds (II) the Option Price applicable to such Award Shares.

 

(e)               In the event that either sufficient
Shares are purchased, or any tender, exchange or similar offer is commenced
which would, if successful (i) result in the events that will materially
alter the structure or business of the Company, then, notwithstanding any other
provision in its Plan to the

 

A-16

 

contrary, all unmatured
installments of Options outstanding shall thereupon automatically be
accelerated and exercisable in full and any right the Company may have to
repurchase shares issued upon exercise of Options shall terminate.  All
unvested Restricted Stock and Restricted Stock Units shall fully and
immediately vest.  The determination of the Compensation Committee that
any of the foregoing conditions has been met shall be binding and conclusive on
all parties.

 

(f)                 Except as hereinbefore expressly
provided, the issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, for cash or property,
or for labor or services either upon direct sale or upon the exercise of rights
or warrants to subscribe therefor, or upon conversion of shares or obligations
of the Company convertible into such shares or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of Restricted Stock, Restricted Stock Units or Shares subject
to Options granted pursuant to this Plan.

 

(g)              Upon the occurrence of each event
requiring an adjustment of the price or the number of shares purchasable
pursuant to Options granted pursuant to the terms of this Plan, the Company
shall mail forthwith to each Grantee a copy of its computation of such
adjustment, which shall be conclusive and shall be binding upon each such
Grantee.

 

ARTICLE 21

 

LIQUIDATION
OR DISSOLUTION

 

In case the Company
shall, at any time while any Award under this Plan shall be in force and remain
unexpired, (i) sell all or substantially all its property, or (ii) dissolve,
liquidate, or wind up its affairs, then each Grantee may thereafter receive
upon exercise hereof (in lieu of each Share of the Company which such Grantee
would have been entitled to receive) the same kind and amount of any securities
or assets as may be issuable, distributable or payable upon any such sale,
dissolution, liquidation, or winding up with respect to each Share of the
Company.  If the Company shall, at any time prior to the expiration of any
Award, make any partial distribution of its assets, in the nature of a partial
liquidation, whether payable in cash or in kind (but excluding the distribution
of a cash dividend payable out of earned surplus and designated as such) then
in such event each Option Price or Purchase Price shall be reduced, on the
payment date of such distribution, in proportion to the percentage reduction in
the tangible book value of the Shares (determined in accordance with generally
accepted accounting principles) resulting by reason of such distribution.

 

ARTICLE
22

 

AWARDS
IN SUBSTITUTION FOR

STOCK OPTIONS
GRANTED BY OTHER CORPORATIONS

 

Awards may be granted
under the Plan from time to time in substitution for such options, restricted
stock, or restricted stock units held by employees of a corporation who become
or are about to become employees of the Company or its Subsidiaries as the
result of a merger or consolidation of the employing entity with the Company or
the acquisition by the Company of stock of the employing

 

A-17

 

entity.  The terms
and conditions of the substitute Awards so granted may vary from the terms and
conditions set forth in this Plan to such extent as the Compensation Committee
at the time of grant may deem appropriate to conform, in whole or in part, to
the provisions of the options in substitution for which they are granted.

 

ARTICLE
23

 

INVESTMENT
INTENT

 

The Company may require
that there be presented to and filed with it by any Grantee under the Plan,
such evidence as it may deem necessary to establish that the Shares underlying
the Awards to be purchased or transferred are being acquired for investment and
not with a view to their distribution.

 

ARTICLE 24

 

NO
RIGHT TO CONTINUE EMPLOYMENT

 

No provision in the Plan
or in any Grant or Award Agreement shall be construed to confer upon any
individual the right to remain in the employ or service of the Company or any
Affiliate, or to interfere in any way with any contractual or other right or
authority of the Company either to increase or decrease the compensation or
other payments to any individual at any time, or to terminate any employment or
other relationship between any individual and the Company or any
Affiliate.  The obligation of the Company to pay any benefits pursuant to
this Plan shall be interpreted as a contractual obligation to pay only those
amounts described herein, in the manner and under conditions prescribed
herein.  The Plan shall in no way be interpreted to require the Company to
transfer any amounts to a third party trustee or otherwise hold any amounts in
trust or escrow for payment to any participant or beneficiary under the terms
of the Plan.

 

ARTICLE
25

 

INDEMNIFICATION
OF BOARD AND COMMITTEE

 

No member of the Board or
the Compensation Committee, nor any officer or employee of the Company acting
on behalf of the Board or the Compensation Committee, shall be personally
liable for any action, determination, or interpretation taken or made in good
faith with respect to the Plan, and all members of the Board or the
Compensation Committee and each and any officer or employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully
indemnified and protected by the Company in respect of any such action,
determination or interpretation.  This obligation shall survive any
termination of this Plan.

 

ARTICLE
26

 

TAX
REQUIREMENTS

 

No Shares will be
delivered under the Plan to any Grantee until such Grantee has made
arrangements

 

A-18

 

acceptable to the
Compensation Committee for the satisfaction of any income and employment tax
withholding obligations under Applicable Laws.  The Company shall have the
authority and the right to deduct or withhold, or require a Grantee to remit to
the Company, an amount sufficient to satisfy federal, state, local and foreign
taxes (including the Grantee’s payroll tax obligations) required or permitted
by law to be withheld with respect to any taxable event concerning a Grantee
arising as a result of this Plan.  The employee receiving Shares issued
upon the grant of Restricted Stock, Restricted Stock Units or the exercise of
any Option shall be required to pay the Company the amount of any taxes, which
the Company is required to withhold with respect to such Shares.  Such
payment may be made in cash, by check, or through the delivery of Shares owned
by the employee (which may be effected by the actual delivery of Shares by the
employee or by the Company’s withholding a number of Shares to be issued upon
the exercise of the Option), which Shares have an aggregate Fair Market Value
equal to the required withholding payment, or any combination thereof. 
Notwithstanding any other provision of the Plan, the number of Shares which may
be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased from the Grantee of such Award after such
Shares were acquired by the Grantee from the Company) in order to satisfy the
Grantee’s federal, state, local and foreign income and payroll tax liabilities
with respect to the issuance, vesting, exercise or payment of the Award shall,
unless specifically approved by the Compensation Committee, be limited to the
number of Shares which have a Fair Market Value on the date of withholding or
repurchase equal to the aggregate amount of such liabilities based on the
minimum statutory withholding rates for federal, state, local and foreign
income tax and payroll tax purposes that are applicable to such supplemental
taxable income.

 

ARTICLE
27

 

PARACHUTE
LIMITATIONS

 

Notwithstanding any other
provision of this Plan, unless an agreement, contract or understanding
heretofore or hereafter entered into by a U.S. Grantee with the Company on any
Affiliate (an “Other Agreement”) directly or indirectly modifies or excludes
application of this paragraph, including by specifically addressing Section 280G
of the Code and/or the treatment with respect to any payment or benefit to the
U.S. Grantee that could be considered a “parachute payment” within the meaning
of Section 280G(b)(2) of the Code as then in effect (a “Parachute
Payment”), if the U.S. Grantee is a “disqualified individual.” As defined in Section 280G(c) of
the Code, any Grants held by that U.S. Grantee and any right to receive any
payment or other benefit under this Plan shall not become exercisable or vested
(i) to the extent that such right to exercise, vesting, payment, or benefit,
taking into account all other rights, payments, or benefits to or for the U.S.
Grantee under this Plan, all Other Agreements, and any formal or informal plan
or other arrangement for the direct or indirect provision of compensation to
the U.S. Grantee (including groups or classes of participants or beneficiaries
of which the U.S. Grantee is a member), whether or not such compensation is
deferred, is in cash, or is in the form of a benefit to or for the U.S. Grantee
(a “Benefit Arrangement”), would cause any payment or benefit to the U.S.
Grantee under this Plan to be considered a Parachute Payment and (ii), if, as a
result of receiving a Parachute Payment, the aggregate after-tax amounts
received by the U.S. Grantee from the Company under this Plan, all Other
Agreements, and all Benefit Arrangements would be less than the maximum
after-tax amount that could be received by the U.S. Grantee without causing any
such payment or benefit to be considered a Parachute Payment.  In the
event that the receipt of any such right to exercise, vesting, payment, or
benefit under this Plan in conjunction with all other rights, payments, or
benefits to or for the U.S. Grantee under any Other Agreement or any Benefit
Arrangement would cause the U.S. Grantee to be considered to have received a
Parachute Payment

 

A-19

 

under this Plan that
would have the effect of decreasing the after-tax amount received by the U.S.
Grantee as described in clause (ii) of the preceding sentence, then the
U.S. Grantee shall have the right, in the U.S. Grantee’s sole discretion, to
designate those rights, payments, or benefits under this Plan, any Other
Agreements, and any Benefit Arrangements that should be reduced or eliminated
so as to avoid having the payment or benefit to the U.S. Grantee under this
Plan be deemed to be a Parachute Payment.

 

ARTICLE
28

 

REQUIREMENTS
OF LAW

 

The Company shall not be
required to sell or issue any Shares under any Grant if the sale or issuance of
such Shares would constitute a violation by the Grantee, any other individual
exercising a right emanating from such Grant, or the Company of any provision
of any law or regulation of any governmental authority, including without
limitation any federal or state securities laws or regulations.  If at any
time the Company shall determine, in its discretion, that the listing,
registration or qualification of any shares subject to a Grant upon any
securities exchange or under any governmental regulatory body is necessary or desirable
as a condition or of in connection with, the issuance or purchase of shares
hereunder, no Shares may be issued or sold to the Grantee or any other
individual exercising an Option pursuant to such Grant unless such listing,
registration, qualification, consent or approval shall been effected or
obtained free of any conditions not acceptable to the Company, and any delay
caused thereby shall in no way affect the date of termination of the
Grant.  Specifically, in connection with the Securities Act, upon the
exercise of any right emanating from such Grant, unless a registration
statement under the Securities Act is in effect with respect to the Shares
covered by such Grant, the Company shall not be required to sell or issue such
shares unless the Compensation Committee has received evidence satisfactory to
it that the Grantee or any other individual exercising an Option or the vesting
of Restricted Stock or Restricted Stock Units may acquire such Shares pursuant
to the Plan to comply with any law or regulation of any governmental
authority.  As to any jurisdiction that expressly imposes the requirement
that an Option shall not be exercisable or Restricted Stock or Restricted Stock
Units shall not vest until the Shares covered by such Option, Restricted Stock
or Restricted Stock Units are registered or are exempt from registration, the
exercise of such Option or the vesting of such Restricted Stock or Restricted
Stock Units (under circumstances in which the laws of such jurisdiction apply)
shall be deemed conditioned upon the effectiveness of such registration or the
availability of such an exemption.

 

During any time when the
Company has a class of equity security registered under Section 12 of the
Exchange Act, it is the intent of the Company that Grants pursuant to the Plan
and the exercise of Options and the vesting of Restricted Stock and Restricted
Stock Units granted hereunder will qualify for the exemption provided by Rule 16b-3
under the Exchange Act.  To the extent that any provision of the Plan or
action by the Compensation Committee does not comply with the requirements of Section 16b-3,
it shall deemed inoperative to the extent permitted by law and deemed advisable
by the Compensation Committee, and shall not affect the validity of the
Plan.  In the event that Rule 16b-3 is revised or replaced, the
Compensation Committee may exercise its discretion to modify the plan in any
respect necessary to satisfy the requirements of, or to take advantage of any
features of, the revised exemption or its replacement.

 

To the extent required by
applicable law, not less often than annually, the Company shall furnish to
Grantees summary financial information including a balance sheet regarding the
Company’s financial

 

A-20

 

condition and results of
operations, unless such Grantees have duties with the Company that assure them
access to equivalent information.  Such financial statements need not be
audited.

 

ARTICLE
29

 

NONEXCLUSIVITY
OF THE PLAN

 

Neither the adoption of
the Plan nor submission of the Plan to the shareholders of the Company for
approval shall be construed as creating any limitations upon the right and
authority of the Compensation Committee to adopt such other incentive
compensation arrangements (which arrangements may be applicable either
generally to a class or classes of individuals or specifically to a particular
individual or particular individuals) as the Compensation Committee in its
discretion determines desirable, including, without limitation, the granting of
stock options otherwise than under the Plan.

 

ARTICLE
30

 

CAPTIONS

 

The use of captions in
this Plan or any Award Agreement s for the convenience of reference only and
shall not affect the meaning of any provision of the Plan or such Award
Agreement.

 

ARTICLE
31

 

OTHER
AWARD AGREEMENT PROVISIONS

 

Each Grant awarded under
the Plan may contain such other terms and conditions not inconsistent with the
Plan as may be determined by the Compensation Committee, in its sole
discretion.

 

ARTICLE
32

 

NUMBER
AND GENDER

 

With respect to words
used in this Plan, the singular form shall include the plural form, the
masculine gender shall include the feminine gender, etc., as the context
requires.

 

ARTICLE
33

 

SEVERABILITY

 

If any provision of the
Plan or any Award Agreement shall be determined to be illegal or unenforceable
by any court of law in any jurisdiction, the remaining provisions hereof and
thereof shall be severable and enforceable in accordance with their terms, and
all provisions shall remain enforceable in any other jurisdiction.

 

A-21

 

ARTICLE
34

 

GOVERNING
LAW

 

The Plan and all Awards
granted hereunder shall be governed by and construed in accordance with the
laws of the Cayman Islands.

 

ARTICLE
35

 

CODE
SECTION 409A

 

The Compensation
Committee intends to comply with Section 409A of the Code, or an exemption
to Section 409A of the Code, with regard to Grants to U.S. Grantees
hereunder that constitute nonqualified deferred compensation within the meaning
of Section 409A of the Code.  To the extent that the Compensation
Committee determines that the U.S. Grantee would be subject to the additional
20% tax imposed on certain nonqualified deferred compensation plans pursuant to
Section 409A of the Code as a result of any provision of any Grant granted
under this Plan, such provision shall be deemed amended to the minimum extent
necessary to avoid application of the additional tax.  The nature of any
such amendment shall be determined by the Compensation Committee.

 

A-22

 

IN
WITNESS WHEREOF,
the Company has caused this instrument to be executed as of the effective date,
by its Chief Executive Officer pursuant to prior action taken by the Board.

 

 

	
   

  	
  Signature

  	
   

  
	
   

  	
  By:

  	
  Julia Huang

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

A-23

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