Document:

Exhibit 4.36

Exhibit 4.36

Toll Manufacturing Agreement

 for
the Production of Solar Modules

Between

SOLARFUN POWER HONG KONG LIMITED

And

Q-CELLS INTERNATIONAL GMBH

 

 

 

* Confidential Treatment Requested. The redacted material has been separately filed with the
Securities and Exchange Commission.

THIS TOLL MANUFACTURING AGREEMENT, dated as of December 1, 2008, by and between

SOLARFUN
Power Hong Kong Limited, established and existing under the laws of the Companies
Ordinance Hong Kong, with offices at Unit D 11/F, Seabright Plaza 9-23 Shell Street, North Point
Hong Kong (“SOLARFUN”)  and

Q-Cells
International GmbH, (“QCI”) established and existing under the laws of Germany with offices
at OT Thalheim, Guardianstraße 16, 06766 Bitterfeld-Wolfen, Germany.

This Toll Manufacturing Agreement will be referred to hereinafter as the “Agreement”.

Throughout the course of this Agreement, both SOLARFUN and QCI may occasionally be referred to
individually as a “Party” or collectively as
the “Parties”.

WHEREAS

	(1)	 	QCI is an established supplier of silicon based solar cells and is also interested in the
business of providing to its customers solar energy system solutions based on silicon based
solar modules.

	(2)	 	SOLARFUN is an established supplier of solar modules to customers dealing with solar energy
system solutions.

	(3)	 	QCI will provide to SOLARFUN solar cells
(“Cells”) to be assembled into solar modules
(“Modules”) and QCI will purchase from SOLARFUN Modules at the agreed quantity, schedule and
price as specified in this Agreement.

	(4)	 	The Parties agree to start cooperation where SOLARFUN will use the services of the
manufacturing entity Jiangsu Linyang SOLARFUN Co., Ltd. located in
the city of Qidong, Jiangsu
Province, China for the production of such solar modules
(“SOLARFUN’s Facilities”).

	(5)	 	The Parties believe that close cooperation between the Parties will lead to great benefits to
both Parties. From this initial cooperation both Parties will study further areas of
cooperation.

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements hereinafter set
forth, the Parties hereto agree on the following terms of this Agreement for the toll manufacturing
of the Modules utilizing the said Cells.

 

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* Confidential Treatment Requested. The redacted material has been separately filed with the
Securities and Exchange Commission.

§ 1. Subject Matter of the Agreement

	(1)	 	QCI commits to the timely delivery of Cells to SOLARFUN.

	(2)	 	SOLARFUN will manufacture the Modules with the Cells provided by QCI. Other materials and
parts (e.g. glass, cables, frames, etc.) needed for the assembly of the Modules will be
provided by SOLARFUN.

	(3)	 	The technical specifications of the Modules and Cells are listed in Attachment 1 — Module
Specifications and Attachment 2 — Cell Specifications, respectively. QCI reserves the right to
change their Cell Specifications or to deliver other types of Cells with prior written notice
to SOLARFUN.

SOLARFUN and QCI reserve the right to improve the Modules and either SOLARFUN or QCI may
suggest to the other any required change in their technical specifications of the Modules. Any
change of the technical specifications of the Modules requires the prior written consent of
both Parties. The Parties shall not withheld their consent without good cause.

	(4)	 	This toll-manufacturing contract is additional and is independent from any other supply
agreements between the Parties, and the contractual deliveries set forth in this contract are
additional and are independent from any other supply
agreement(s).

§ 2. Validity, Contract Period, Termination

	(1)	 	This Agreement comes into effect [*] but under the condition precedent that
the supervisory board of Q-Cells SE gives its approval for signing this Agreement. If the
approval of the supervisory board of Q-Cells SE is not given [*], the
Agreement will not come into effect. The Agreement will be in force for two (2) years until
December 31, 2010 (“Term”). QCI is granted an option to extend this contract for another year
until December 31, 2011 at terms to be negotiated and reflecting the fact that by this point
machinery and buildings dedicated to the QCI volumes [*]. This
option expires on [*].

This Agreement will expire on this expiration date of December 31, 2010, without any further
requirement for notice of termination, unless QCI exercises its option and an agreement can be
reached.

	(2)	 	If either Party materially breaches this Agreement, the Agreement may be terminated prior to
the expiration of its Term by the other Party by giving a written notice of its intent to
terminate and stating the grounds therefore (the “Termination Notice”).

 

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* Confidential Treatment Requested.
The redacted material has been separately filed with the Securities and Exchange Commission.

The Party receiving the Termination Notice shall have [*] days from the date of
receipt thereof to cure the specified breach or failure (“Cure Period”). In the event
such specified breach or failure is cured within the Cure Period in accordance with the
provisions of this Agreement, the Termination Notice shall have no further effect. In the event
such specified breach or failure is not cured within the Cure Period, then the non-breaching
party may immediately issue a written notice stating that the Agreement is terminated.

	(3)	 	Providing that QCI has provided to SOLARFUN all the Cells as scheduled and complied
with all of QCI’s obligations under this Agreement, SOLARFUN will be in material breach of this
Agreement if: (a) the Modules are not supplied within [*] days after the delivery of
the Cells to SOLARFUN’s Facilities; or (b) in [*] the delivered Modules
fall below [*] percent of applicable purchase orders and SOLARFUN is the cause for this
shortage; or (c) The Modules conforming to the technical specifications of Attachment 1 —
Module Specifications are not supplied to QCI in accordance with the agreed quality for a
period of [*].

	(4)	 	QCI will be in material breach of this Agreement in the event that: (a) QCI fails to pay for
any invoice issued by SOLARFUN within [*] days after the due date provided in the
invoice; or (b) the Cells conforming to the technical specifications of Attachment 2 — Cell
Specifications are not supplied to SOLARFUN in accordance with the agreed quality; quantity
and schedule for a period of [*], [*] [*]. Termination due to material breach of this Agreement by QCI shall not release
QCI [*].

§ 3. Cell Quantity and Schedule

	(1)	 	The Cells shall be delivered to SOLARFUN’s Facilities according to the quantity and
schedule as provided in Attachment 3 — Supply Plan, Delivery Dates and Delivery Address.
In this Agreement, the term “MW” shall mean mega watt.

a. In handling the Cells and Modules during the manufacturing process, Solarfun
is responsible to ensure that between the arrival of the Cells at SOLARFUN’s facilities and the
handing over of the Modules to QCI at the shipment port, [*]. For the avoidance of doubt, SOLARFUN is responsible only for
[*] that occurs within its area of responsibility, with each Party’s areas of
responsibility further detailed below:

QCI

	 	•	 	The specification of which materials to use for the Modules (in
accordance with [*] in Attachments 7 and 8, respectively)
	 
	 	•	 	Supply of Cells for the manufacturing of the Modules

SOLARFUN

	 	•	 	Purchase of materials according to QCI’s specifications
	 
	 	•	 	Manufacturing and workmanship of the Modules

 

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* Confidential Treatment Requested. The redacted material has been separately filed with the
Securities and Exchange Commission.

b. Based on these areas of responsibility, [*]
provided by QCells are specifically excluded from SOLARFUN’s
area of responsibility, but only as long as those characteristics are proven [*].

c. The Parties understand that [*]
referenced in the above paragraph
is to be considered as a target (“Target”), and this
Target will be mutually re-evaluated by the
Parties [*] to determine if it needs to be
adjusted (the [*]). For the avoidance of doubt, the Parties agree that
improvements to this [*] are the primary responsibility of
SOLARFUN.

d. At the latest [*] after the first production run, the Parties will re-evaluate the
Target with the aim of confirming that the Target can and should be [*] exceed the yet to be determined threshold Target (as mentioned, the aim at
this [*] Re-evaluation is to confirm that the Target can and should be [*], which assumes
that the experiences [*], and also assumes that the Monthly Re-evaluations have not caused the Parties
to come to a different conclusion)) SOLARFUN will [*] between QCI and SOLARFUN, and [*] at the time of reevaluation — it is understood that this [*]
is brought in line with the Target.

	(2)	 	QCI will be responsible for the [*], SOLARFUN shall [*] upon request to QCI, with the
expenses [*].

	(3)	 	SOLARFUN agrees to carefully store the provided Cells separately from other materials without
incurring additional cost for QCI. SOLARFUN agrees to insure the provided Cells on its own
expense against loss, fire damage, theft, and storm and water damage.

SOLARFUN assigns all its future insurance claims regarding the Cells to QCI and undertakes to
provide QCI with a statement form / other document from the insurance company, which states that
all payments from the insurance for compensation for damage to the Cells will be made to QCI. [*].

	(4)	 	QCI shall have the right to request for an increase in the monthly volume by no more than [*] as long as [*].
QCI shall submit such request in writing to SOLARFUN no later than [*] days before the required shipment date from Shanghai.

 

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* Confidential Treatment Requested. The redacted material has been separately filed with the
Securities and Exchange Commission.

	(5)	 	SOLARFUN shall have the right to reduce the agreed monthly volume by no more than
[*] without such reduction being considered as breach of contract [*].
SOLARFUN must notify QCI of such a shortfall in writing at
least [*] days prior to the scheduled shipment date.
	 
	(6)	 	For avoidance of doubt, QCI’s failure to provide the Cells shall not excuse
QCI from [*].

	 	§ 4.	 	 Module Deliveries

	(1)	 	SOLARFUN shall deliver the scheduled Modules to Shanghai’s port within [*] days
after the delivery of the Cells to SOLARFUN’s Facilities. Parties realize the significant
working capital impact arising from this point and will work jointly on transport and
production arrangements to bring this value down significantly during the term of this
agreement.
	 
	(2)	 	In case of late delivery of the Cells (as against the delivery schedule in Attachment
3, which is intended to create a continuous and smooth flow of delivery of Cells and
return of Modules), SOLARFUN will be entitled to postpone the delivery of the Modules for [*].
	 
	 	 	If there is a delay in delivery of the Cells and then a subsequent delivery of substantially
increased volumes of Cells to make up for that delay, QCI and SOLARFUN will [*], noting that the production lines can only
produce a certain number of Modules in a given time, and that, as a result, the [*] day
turn-around time for Modules from Cells per section 4(1) may not be
achievable.
	 
	(3)	 	If QCI fails to deliver the Cells as required by this Agreement, and the delay exceeds more
than [*] days, QCI shall be in material breach of this Agreement as specified in
section 2.
	 
	(4)	 	The Parties understand that the successful completion of the certification process is
dependent on the Joint effort and responsibility of both QCI and SOLARFUN. In the event that
certification to IEC 61215 is not completed as scheduled by
[*] for reasons not
attributable to SOLARFUN, [*].

 

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* Confidential Treatment Requested. The redacted material has been separately filed with the
Securities and Exchange Commission.

	(5)	 	In the event that certification to IEC 61215 is obtained [*], but certification to
UL 1703 has not yet been obtained, [*]. If certification to UL 1703 has not been obtained [*].
QCI’s delivery of Cells and SOLARFUN’s production of Modules [*] (this schedule is
further detailed in Attachment 3 — Supply Plan-Delivery Dates and Delivery Address).
Certification institute for UL 1703 shall be Underwriter Laboratories (UL).

	(6)	 	The Parties understand that due to the possibility of certain Module materials being of
limited availability, the Modules delivered by SOLARFUN may [*]. SOLARFUN guarantees a
minimum of [*] of annual deliveries [*].

	 	§ 5.	 	 Ownership of the Cells and Modules; Transfer of Risk

	(1)	 	The Cells provided by QCI will continue to be owned by QCI even after they have been
delivered to SOLARFUN. The Parties agree that the processing of the Cells into Modules will be
performed for QCI by SOLARFUN as the manufacturer. SOLARFUN combines the Cells provided by QCI
with other materials to manufacture the Modules. QCI will become the owner of the resulting
combination, if SOLARFUN combines the cells provided by QCI with other materials to establish
new modules.
	 
	(2)	 	SOLARFUN agrees to carefully store the provided cells separately from other materials of
SOLARFUN without incurring additional cost for QCI. SOLARFUN agrees to insure the provided
solar cells on its own expense against loss, fire damage, theft, storm, water and other
natural hazards, which can normally be insured against. SOLARFUN assigns all its future
insurance claims to QCI and undertakes to provide QCI with a statement form / Other document
from the insurance company, which states that all payments that relate to the provided cells
will exclusively be made to QCI.
	 
	(3)	 	The risk of loss regarding the Modules shall pass to QCI upon [*].

	 	§ 6.	 	 Periodical Reports

	(1)	 	Each Party shall provide to the other Party [*] of the delivery
schedule, i.e. QCI shall provide forecasts of the delivery schedule of the Cells and SOLARFUN
shall provide forecasts for the delivery schedule of the Modules. The receiving Party shall
issue its confirmation of receipt of the forecasts no later than [*] after receipt of
such forecasts.
	 
	(2)	 	Within [*] of the shipment of the Cells/Modules, the sending Party shall
notify the other Party of the expected date of arrival.

 

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* Confidential Treatment Requested.
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	(3)	 	Without limiting the injured Party’s right for late delivery fees as provided in section 11
below, if either Party becomes aware of any circumstances that may cause it to materially fail
to fulfill its obligation to deliver such quantities (for instance shortage of a necessary raw
material required for production) and the said Party cannot overcome such failure despite use
of commercially reasonable efforts, it shall give prompt written notice to the other Party
describing such circumstances, together with a proposed course of action. The delayed Party
shall keep the other regularly updated of the situation, including providing information
regarding anticipated deliveries and when the situation will be rectified.
	 
	(4)	 	 SOLARFUN shall notify QCI [*] by issuing a Readiness
Certificate. The Readiness Certificate shall list the
following information:

	 	a.	 	The number of Modules ready for delivery, [*].
	 
	 	b.	 	Number of pallets to be shipped and respective shipment reference number.
	 
	 	c.	 	Data regarding [*].
	 
	 	d.	 	The quantity of Cells that have not been used.

	(5)	 	SOLARFUN agrees to provide QCI [*] with a written inventory status
signed by an authorized person. The inventory status shall include:

	 	a.	 	A list of all Cells in SOLARFUN’s possession. The list must also include a
cumulative inventory of all Cells from all deliveries and those which are currently
in the manufacturing process.
	 
	 	b.	 	A list of all Modules produced from the Cells provided, but which have not yet been
reported in the Readiness Certificate.
	 
	 	c.	 	A list of all Modules produced from the Cells provided, which have been reported
in the Readiness Certificate.
	 
	 	d.	 	A list of all Modules produced from the Cells provided, which are ready for pick-up.

	 	§ 7.	 	 Packing, and Delivery of the Cells and Modules

	(1)	 	[*] to SOLARFUN’s Facilities (C.I.P. to 666
Linyang Rd, Qidong City, Jiangsu Province) [*].

 

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* Confidential Treatment Requested.
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	(2)	 	The Cell’s packing requirements are provided in
Attachment 4 — Delivery units and Packaging
of Cells to this Agreement. [*]
	 
	(3)	 	[*] to Shanghai’s port (F.O.B.
Shanghai’s Port [*]
	 
	(4)	 	The Modules will be packaged [*] by SOLARFUN at SOLARFUN’s
Facilities. Only one type of Module (one performance class) shall be placed in each
container. Prior to packaging [*] SOLARFUN will store
QCI’s Modules separate from modules designated for other customers.
	 
	(5)	 	[*] in accordance with Attachment 9 — Packaging of
Modules shall be [*].
	 
	(6)	 	In addition to the Readiness Certificate that will be prepared per section 6(4), SOLARFUN
will separately inform QCI immediately in writing after a container load with Modules has been
manufactured and is ready for shipment to Shanghai’s port.
QCI will arrange the pickup of the Modules at Shanghai’s port within [*] after
receipt of the Readiness Certificate.
	 
	(7)	 	If the Modules are not picked up within [*] after receipt of the Readiness
Certificate by QCI [*]. SOLARFUN agrees to store
these Modules and to store them separate from other modules of SOLARFUN.

	 	§ 8.	 	 Quality of Cells and Modules

	(1)	 	The solar cells delivered by QCI will be processed “genuine” (depending on and categorized by
efficiency) by SOLARFUN, which means that cells of different performance / efficiency
classifications cannot be used within the same module. Deviations from this policy are only
possible through explicit direction of QCI.
	 
	(2)	 	Modules will be evaluated in accordance with the valuation
criteria shown in Attachment 6  — Valuation Criteria of Modules.
	 
	(3)	 	Each Module will receive a unique, laminated serial number and will be measured for power
output by SOLARFUN before shipment. Upon completion of every full container load, the
measuring data (or the “flash data”) will be made available to QCI [*].
	 
	(4)	 	The final, determinative accounting of [*] will be summarized in the Inventory List.
The information will
[*] designated person at QCI.

 

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	(5)	 	If the [*].
	 
	(6)	 	Every Module will be labeled per Attachment 10 — Product Label.

	 	§ 9.	 	 Technical Cooperation

	 	 	Both Parties recognize [*] and agree herewith the following.
	 
	(1)	 	Parties will cooperate [*].

	 	a.	 	This [*].
	 
	 	b.	 	In order to achieve the implementation of [*], Parties will cooperate in
[*] to the extent that each Party sees it makes economic sense.
	 
	 	c.	 	Parties will share information relevant [*], as long as this is not
restricted by pre-existing agreements with other stakeholders, and as long as it is
reasonable for the respective Party.
	 
	 	d.	 	It is understood that [*] are confidential between the
Parties. New information that results from production [*] is
also confidential in the same way as [*] themselves, and such new
information may be used by either Party for further use in their business activities only
with the prior written consent of the other Party in each single case of use. It is also
understood, however, that the underlying information [*] that was
provided by and belongs to a respective Party continues to belong to that Party
irrespective of its inclusion [*], and may be used by that Party at
their discretion.
	 
	 	e.	 	[*] per calendar year a meeting will be organized between experts from Parties to
[*].

	(2)	 	QCI and SOLARFUN will review the Module production process on a [*] basis with the
objective to identify opportunities for improving the durability of the Modules.

 

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* Confidential Treatment Requested.
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	(3)	 	QCI will [*] based on
random sampling of SOLARFUN-produced Modules and help SOLARFUN in improving its processes
where necessary and if reasonable for QCI. If required and reasonable for QCI, QCI will
support SOLARFUN in the selection process of own testing equipment.

	(4)	 	QCI will support SOLARFUN to improve and optimize the lamination process for [*].

	(5)	 	QCI and SOLARFUN will work together [*].

	(6)	 	Any invention or development derived during the course of production of the Modules shall be
deemed as the [*].

	(7)	 	The Parties acknowledge that the Technical Information provided by either Party may also be
subject to legal protection as invention patents, utility models, trademarks, confidential
know-how and other Intellectual Property rights (“IPR”).

	(8)	 	The Parties acknowledge the respective Party’s IPR as provided in Attachment 12 to
this Agreement.
	 

	(9)	 	Technical Information disclosed by either Party to the other Party shall not be regarded as a
license to use the disclosed IPR for any other purpose then for the production of Modules for
QCI.

	(10)	 	The term Technical Information includes but is not limited to, technical specifications,
service manual, circuit diagrams, software and other information necessary for the production
of the Modules and the Cells (“Technical Information”).

	(11)	 	QCI grants to SOLARFUN [*].

	(12)	 	QCI grants to SOLARFUN [*].

§ 10. Price and Payment Terms

	(1)	 	The agreed price for the manufacturing of the Modules is provided in Attachment
5 — Prices.
	 
	(2)	 	The price does not include value added tax which will be added if applicable.

 

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Securities and Exchange Commission.

	(3)	 	SOLARFUN will send QCI an invoice upon issuance of the Readiness Certificate. QCI shall
complete payment by wire transfer to SOLARFUN’s bank account within [*] upon
presentation of the following transportation documents: [*]
	 
	(4)	 	SOLARFUN’s bank information:

	 	 	 	 
	 	Beneficiary:
	 	Jiangsu Linyang SOLARFUN Co., Ltd.
	 	Billing address:
	 	Please provide input
	 	A/C No:
	 	1745745004
	 	Beneficiary Bank:
	 	Citibank (China) Co., Ltd. Shanghai Branch
	 	Bank Address:
	 	33F Citigroup Tower

	 	 
	 	No. 33 Hua Yuan Shi Qiao Road Lu Jia Zui Finance

	 	 
	 	and Trade Zone

	 	 
	 	Shanghai, 200120, P.R. China

	 	SWIFT Add.
	 	CITICNSX
	 	Intermediary Bank:
	 	Citibank N.A. New York
	 	SWIFT Add.
	 	CITIUS33

§11. Delays

	(1)	 	QCI has the right to damages based on delivery delays, if SOLARFUN is more than [*] in
delay with the delivery of Modules, provided that QCI supplies Cells conforming to
Attachment 2 — Cell Specifications and per Attachment
3 — Supply Plan, Delivery
Dates and Delivery Address.

	(2)	 	SOLARFUN has the right to damages based on delivery delays in the event SOLARFUN is unable to
deliver Modules for a period of more than [*] past the original scheduled due date
as a result of [*].

	(3)	 	In addition to the above, any late payment shall bear an interest rate of [*]% per year.

§ 12. Return Procedure for Defective Materials

WHEREAS it is agreed that SOLARFUN is a manufacturer only of the Modules for QCI, and SOLARFUN
is responsible only for its areas of responsibility as further described in section 3(1). As a
result, is not responsible for defects and / or power capability in relation to the Cells
delivered by QCI to SOLARFUN.

	(1)	 	[*] shall be made by QCI in
accordance with sound business practice upon the delivery of the Module, and in no case later
than [*] after delivery at QCI’S construction site. QCI shall inform
SOLARFUN promptly in case of any obvious damages or other obvious defects to the Module
which QCI discovers [*].

 

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	(2)	 	If the Module does not meet the Module specifications per Attachments 1 — Module
Specifications and Attachment 6 — Valuation Criteria of Modules,
QCI shall notify SOLARFUN in
writing without undue delay after the detection and, together with the notification, submit
documentary evidence whereupon [*].

	(3)	 	SOLARFUN shall replace the Modules or refund QCI including all costs and expenses, no later
than [*] after QCI completes its inspection and
confirms the defect. [*] In the event both Parties cannot reach
an agreement on the quality of the Modules, then the dispute resolution procedures outlined in
section 15 herein should be followed.

§ 13. Warranty

	(1)	 	SOLARFUN shall guarantee the performance of the Modules in accordance with the warranty terms
attached in Attachment 11 — Manufacturer’s Guarantee (the “Manufacturer’s Guarantee”)
and to the extent the performance (or lack thereof) relates to SOLARFUN’s areas of
responsibility as described in section 3(1). It does not guarantee the performance of the
Modules to the extent that the performance (or lack thereof) is related to QCI’s areas of
responsibility as described in section 3(1). As needed, the test criteria established in IEC
61215 and UL 1703 will be used for the assessment of the Manufacturer’s Guarantee.

	(2)	 	In addition to the Manufacturer’s Guarantee, the following is agreed:

a. SOLARFUN does not assume any responsibility for defects in the Modules which derive from or
are related to any malfunction of the Cells provided by QCI, [*].

b. The Parties acknowledge that the Cells are provided by QCI, and that the design of the
Modules has been qualified/approved by QCI, therefore, SOLARFUN’S obligation for all warranties
expressed in Attachment 11 — Manufacturer’s Guarantee are [*].

c. The Parties acknowledge that the end user of the Modules in all cases is a
customer of QCI. The Parties further acknowledge that QCI, rather than Solarfun, is privy to
the agreements that QCI signs with the end user [*]. In light of this, it is agreed [*].
QCI will liaise with Solarfun on these claims to determine (1)
the allocation of responsibility between QCI and Solarfun per Section 3(l)(a) of this
Agreement, and 2) the solution to be offered by Solarfun under the obligations from this
Contract and the Manufacturer’s Gauarantee included herein. At
QCI’s indication Solarfun will
provide this solution to either QCI or the End User.

 

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d. If it is not clear which Party is responsible for the defect of a module, then the
dispute resolution procedures outlined in section 15 herein should be followed.

§ 14. Limitation of Liabilities

	(1)	 	[*]

	(2)	 	SOLARFUN undertakes no responsibility for the Modules except as otherwise provided in this
Agreement and its attachments.
	 
	(3)	 	SOLARFUN assumes no responsibility that the Modules will be fit for any particular
purpose, except as provided in this Agreement.

§ 15. Dispute Resolution

	(1)	 	If any dispute arises between the Parties relating to the interpretation, breach or
performance of this Agreement, or the grounds for the termination thereof, the Parties agree
that they shall first try to resolve such dispute amicably. In this regard, the CEOs (or their
respective designees) of each Party shall, for a period of [*] after such dispute
is formally submitted to either of such CEO in writing, attempt in good faith to negotiate a
resolution of the dispute. In case the dispute involves Technical Related Matters and the
Parties are unable to reach an understanding, the Parties will nominate an expert as provided
in paragraph 2 of this section 15.

	(2)	 	If the dispute involves Technical Related Matters it shall be examined by an expert appointed
by [*]. The appointed expert shall provide its expert opinion
regarding the function of the Modules, the Cells, and any other relevant part and the causes
of the malfunction (if exists). The expert will also provide a
suggestion for the adequate resolution of the dispute according to the terms of this
Agreement.

 

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Securities and Exchange Commission.

	(3)	 	In this Agreement the term Technical Related Disputes shall mean disputes regarding the
specifications, function or malfunction of the Modules, the Cells, or other related materials
(“Technical Related Disputes”).

	(4)	 	[*]

	(5)	 	The expert’s opinion shall be non-binding on either of the Parties, but may be used as
admissible evidence if the dispute is submitted to arbitration. For avoidance of doubt, both
Parties reserve the right to submit the case to arbitration pursuant to paragraph 7 of this
section 15 below and to present alternative expert opinion(s) to the arbitration tribunal.

	(6)	 	The Parties shall cooperate to fully accommodate the appointed expert and shall provide the
expert the necessary assistance to promptly complete his or her tasks, including [*] in order to conduct such
arbitration and get it started. [*]

	(7)	 	Should the Parties fail to reach a resolution under this section 16, the dispute may be
referred to arbitration by [*] and
shall be arbitrated in accordance with its rules.

	(8)	 	Claims under [*] shall be heard by a single arbitrator. Claims over [*] shall
be conducted by a panel of three (3) arbitrators.

	(9)	 	The arbitral award shall be final and binding upon both Parties.

	(10)	 	The place of arbitration shall be [*]
without regard to conflict of laws principles that would require
application of the laws of another jurisdiction; the application of United Nations Convention
on Contracts for the International Sale of Goods (CISG) shall be excluded; the language of
arbitration shall be English.

	(11)	 	Unless prohibited by applicable laws, the arbitrator(s) shall have the power to issue interim
measures, including but without limitation measures for preservation of property, attachment,
preliminary injunction, replevin, preservation of evidence, etc. to avoid irreparable harm,
maintain the status quo, or preserve the subject matter of the dispute.

 

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	(12)	 	All the arbitration costs — including but not limited to the costs of the arbitrators
(whether local or foreign arbitrators), all fees charged by the arbitration institution,
experts’ fees, and attorneys’ fees — [*].

§16. Governing Law

The Agreement and any dispute arising in connection with the formation and performance hereof shall
be governed and controlled in all respects by, and determined in accordance with, [*]
without regard to any internal conflict of law provisions
that would cause the laws of any other jurisdiction to apply.

§17. Force Majeure

Neither party is responsible, if they are hindered at the fulfillment of this Agreement by force
majeure, [*] and other events outside the control of the
Parties (“Force Majeure Event”). The non-performing Party shall give written notice to the other
Party immediately in these cases. The Parties agree that they will use all reasonable technical and
economical measures to eliminate the impact of the Force Majeure Event and ensure the completion of
this Agreement.

§18. [*]

	(1)	 	QCI acknowledges that SOLARFUN will use its facilities to accommodate the business volume
specified in this Agreement and may enter into long term supply agreements with other
suppliers to ensure the production of the Modules. Additionally, QCI acknowledges that it has
been advised that SOLARFUN will undertake special obligations in order to produce the required
volume, including but not limited to, [*].

	(2)	 	The Parties agree that [*].

 

16

 

* Confidential Treatment Requested.
The redacted material has been separately filed with the
Securities and Exchange Commission.

In the event
[*] by measures including, but not
necessarily limited to, the following:

	 	•	 	Using the [*];

	 	•	 	[*]
	 
	 	•	 	Not [*]
	 
	 	•	 	Using [*]

	(3)	 	SOLARFUN will, in good faith, report [*].

§19. Confidentiality

	(1)	 	Neither Party shall use or disclose to third parties any confidential information of the
other Party and each Party shall ensure that its and its affiliates’ employees, officers,
representatives and agents shall not use or disclose to third parties any confidential
information and upon the termination of this Agreement shall return to the other or destroy
all Confidential Information in written form.

	(2)	 	As used herein, Confidential Information shall include all confidential or proprietary
information given to one Party by the other Party, or otherwise acquired by such Party in its
performance of this Agreement, relating to such other Party or any of its affiliates,
including information regarding any of the products of such other Party or any of its
affiliates, information regarding its advertising, distribution, pricing, marketing or
strategic plans or information regarding its costs, productivity, technological advances,
technical drawings, know-how (“Confidential
Information”). The content of this Agreement shall
also be confidential.

	(3)	 	Confidential Information shall not include information that (a) was already known to the
receiving Party at the time of its receipt thereof or is independently developed by the
receiving Party, as evidenced by its written records, (b) is disclosed to the receiving Party,
other than under an obligation of confidentiality, by a third party who had no obligation to
the disclosing Party not to disclose such information to others or (c) is or becomes part of
the public domain through no fault of the receiving Party.

§20. Final Clause

	(1)	 	SOLARFUN does not have the right to a lien of retention for the Modules to be manufactured,
especially for possible claims from other legal relationships, unless the basic claim is
indisputable, legally established and in relation with this toll manufacturing contract.

 

17

 

* Confidential Treatment Requested.
The redacted material has been separately filed with the
Securities and Exchange Commission.

	(2)	 	This Agreement constitutes the entire understanding between the Parties with respect to the
subject matter of the Agreement and supersedes any prior discussions, negotiations, agreements,
memoranda of understanding and the like. Modifications to this Agreement may be made only in
writing and signed by each Party.

	(3)	 	The validity of the remaining Agreement is not affected, if one or more condition(s) of this
Agreement become(s) invalid. The Parties agree to replace the invalid condition by a different
one, which will be as close as possible to the condition of the one to be replaced in its
commercial effect. Contract gaps will be handled in a similar manner.

	(4)	 	Headings are used for convenience only and shall not be used in interpretation of this
Agreement.

	(5)	 	This Agreement shall be considered for all purposes as prepared through the joint efforts of
the Parties and shall not be construed against one Party or the other as a result of the
manner in which this Agreement was negotiated, prepared, drafted or executed.

	(6)	 	Any notice, request, demand, waiver, consent, approval or other communication which is
required or permitted hereunder shall be in writing and shall be deemed effective for all
purposes: (a) on the date established by the sender as having been delivered personally; (b)
on the date delivered by a private courier as established by the sender by evidence obtained
from the courier; (c) on the date sent by facsimile, with confirmation of transmission; or (d)
on the date transmitted to the recipient via e-mail, with confirmation of transmission,
providing that the communication is received during normal business hours of the recipient, if
not, then on the next business day. Such communications, to be valid, must be addressed as
follows:

If to QCI, to:

Q-Cells International GmbH 

OT Thalheim 

Guardianstraße 16

06766 Bitterfeld-Wolfen

Germany

Attn: Dr. Marko Schulz

Email: m.schulz@q-cells.com

Facsimile: +49-30 -3083394-44

 

18

 

* Confidential Treatment Requested.
The redacted material has been separately filed with the
Securities and Exchange Commission.

If
to SOLARFUN, to:

SOLARFUN Power Hong Kong Limited 

Unit D 11/F, Seabright Plaza 9-23 Shell Street 

North Point Hong Kong

Hong Kong S.A.R. China

Attn: Werner Niehaus

Email: werner.niehaus@solarfun.com.cn

Facsimile: +86-21-6393-3099

or to such other address or to the attention of such person as the recipient party has specified by
prior written notice to the sending party. If more than one method for sending notice as set forth
above is used, the earliest notice date established as set forth above shall control.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly
authorized respective representatives as of the day and year first written above.

	 	 	 	 	 
	On behalf of SOLARFUN Power 

Hong Kong Limited

	 	On behalf of Q-Cells International GmbH	 	 
	 
	 	 	 	 
	/s/ Harold Hoskens
 

Mr. Harold Hoskens, CEO

	 	/s/ Marko Schulz
 

Dr. Marko Schulz, CEO
	 	 
	22.12.08
	 	 	 	 
	 
	 	 	 	 
	 

	 	On behalf of Q-Cells International
GmbH

	 	 
	 
	 	 	 	 
	 

	 	/s/ [ILLEGIBLE]	 	 

 

19Exhibit 4.3

Exhibit 4.3

 

 

EMPLOYMENT AGREEMENT

Among

 
And

LINKTONE LTD.

Dated as of                     

 

 

 

 

THIS EMPLOYMENT AGREEMENT (“Agreement”)

is made and entered into this

 

(the “Effective Date”)

by and between

 

(the “Employee”)

and

LINKTONE LTD. (the “Company”)

BACKGROUND

WHEREAS the Employee and the Company desire to enter into this Agreement for the purpose of
retaining the services of the Employee, and the Company wishes to provide the Employee with an
inducement to remain with the Company;

NOW, THEREFORE, intending to be legally bound, and in consideration of the premises and the mutual
promises set forth in this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Employee agree as follows:

DEFINITIONS

“Administrator” means the Compensation Committee (as defined below) or the Board (as defined below)
who administer the Employee Stock Options (as defined below) under applicable stock option
agreements or stock incentive plans or schemes.

“Affiliate” means with respect to any Person directly or indirectly Controlling, Controlled by, or
under common Control with such Person.

“Ancillary Agreements” is as defined in Article 5.

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

“Cash Compensation” is as defined in Section 2.1.

“Cause” means (i) the Employee commits a crime involving dishonesty, breach of trust, or physical
harm to any person; (ii) the Employee willfully engages in conduct that is in bad faith and
materially injurious to the Company, including but not limited to, misappropriation of trade
secrets, fraud or embezzlement; (iii) the Employee commits a material breach of this Agreement or
the Ancillary Agreements, which breach is not cured within twenty (20) days after written notice to
the Employee from the Company; (iv) the Employee willfully refuses to implement or follow a
reasonable and lawful policy or directive of the Company, which breach is not cured within twenty
(20) days after written notice to the Employee from the Company; or (v) the Employee engages in
malfeasance demonstrated by a pattern of failure to perform job duties diligently and
professionally.

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 2 of 29

 

 

 

“Change in Control” means a change in ownership or control of the Company effected through either
of the following transactions: (i) the direct or indirect acquisition by any person or related
group of persons (other than an acquisition from or by the Company or by a Company-sponsored
employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is
under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3
of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined
voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made
directly to the Company’s shareholders which a majority of the Continuing Directors who are not
Affiliates or Associates of the offeror do not recommend such shareholders accept, or (ii) a change
in the composition of the Board over a period of thirty-six (36) months or less such that a
majority of the Board members (rounded up to the next whole number) ceases, by reason of one or
more contested elections for Board membership, to be comprised of individuals who are Continuing
Directors. The “Continuing Directors” means members of the Board who either (i) have been Board
members continuously for a period of at least thirty-six (36) months or (ii) have been Board
members for less than thirty-six (36) months and were elected or nominated for election as Board
members by at least a majority of the Board members described in clause (i) who were still in
office at the time such election or nomination was approved by the Board. “Associate” has the
meaning ascribed to such term in Rule 12b(2) promulgated under the Exchange Act.

“Company” is as defined in the Preamble.

“Compensation Committee” means the compensation committee of the Board of the Company or such other
group of directors performing similar functions.

“Control” (including the terms “Controlled by” and “under common Control with”) means the
possession, directly or indirectly or as a trustee or executor, of the power to direct or cause the
direction of the management of a Person, whether through the ownership of stock, as a trustee or
executor, by contract or credit agreement or otherwise.

“Corporate Transaction” means any of the following transactions: (i) a merger or consolidation in
which the Company is not the surviving entity, except for a transaction the principal purpose of
which is to change the state in which the Company is incorporated; (ii) the sale, transfer or other
disposition of all or substantially all of the assets of the Company; (iii) the complete
liquidation or dissolution of the Company; (iv) any reverse merger or series of related
transactions culminating in a reverse merger (including, but not limited to, a tender offer
followed by a reverse merger) in which the Company is the surviving entity but (A) the Ordinary
Shares outstanding immediately prior to such merger are converted or exchanged by virtue of the
merger into other property, whether in the form of securities, cash or otherwise, or (B) in which
securities possessing more than fifty percent (50%) of the total combined voting power of the
Company’s outstanding securities are transferred to a person or persons different from those who
held such securities immediately prior to such merger or the initial transaction culminating in
such merger, but excluding any such transaction or series of related transactions that the
Administrator determines shall not be a Corporate Transaction; or (v) acquisition in a single or
series of related transactions by any person or related group of persons (other than the Company or
by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule
13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of
the Company’s outstanding securities but excluding any such transaction or series of related
transactions that the Administrator determines shall not be a Corporate Transaction.

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 3 of 29

 

 

 

“Effective Date” is as defined in the Preamble.

“Employee” is as defined in the Preamble.

“Employee Resignation” and “Employee Resignation Date” are defined in Section 3.1.2.

“Employment Capacity” shall be                      reporting to                      of the
Company.

“Employment Contract Termination Date” means the later of                      or the date on which
either the Company or the Employee elects not to extend this Agreement further by giving written
notice to the other party.

“Employment Final Termination Date” means the date upon which the Employee’s employment with the
Company ceases for any reason.

“Employment Term” is as defined in Section 1.1.

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

“Good Reason” in the context of the Employee’s resignation is defined as (a) a change in the
Employee’s position which materially reduces the Employee’s level of responsibilities, duties or
stature; (b) a reduction in the Employee’s Monthly Base Salary or (c) a relocation of the
Employee’s principal place of employment by more than 50 miles.

“Monthly Base Salary” is as defined in Section 2.1 (i).

“Ordinary Shares” means the ordinary shares of the Company.

“Original Employment Agreement” is as defined in the Preamble.

“Performance Targets” shall be as defined in Section 2.1.

“Person” means an individual, corporation, partnership, limited liability company, limited
partnership, association, trust, unincorporated organization or other entity or group (as defined
in Section 13(d)(3) and Section 14(d)(2) of the Exchange Act).

“RMB” or Renminbi means the legal currency of the People’s Republic of China.

“Severance Multiplier” means the number equal to (i)                      plus (ii) the total
number of years between the Effective Date and the Employment Final Termination Date; if the
Employment Final Termination Date occurs six months or more after an anniversary of the Effective
Date, such half-year period after the anniversary shall be included in the number of years
referenced above (e.g., if the Employment Final Termination Date is two years and ten months after
                    , then the Severance Multiplier would be                     ).

“Stock Option Employment Commencement Package” shall be entitled to, and the Company shall grant
the Employee, a Stock Option Employment Commencement Package, as set forth in Section 2.6.

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 4 of 29

 

 

 

“Subsidiary” means, with respect to any Person, any entity which securities or other ownership
interests having ordinary voting power to elect a majority of the Board or other persons performing
similar functions are at the time directly or indirectly owned by such Person.

“U.S. dollars” or “US$” means the legal currency of the United States.

ARTICLE 1. EMPLOYMENT AND TERM

The Company hereby employs the Employee and the Employee hereby agrees to such employment by
the Company during the Employment Term to serve as                      of the Company, with the
customary duties, authorities and responsibilities of such position and such other duties,
authorities and responsibilities relative to the Company that may from time to time be delegated to
the Employee by                     . The Employee shall perform such duties and responsibilities as
are normally related to such position in accordance with the standards of the industry and any
additional duties now or hereafter assigned to the Employee by                     . The Employee
shall abide by the Company’s rules, regulations and practices as they may from time-to-time be
adopted or modified.

	1.1	 	Employment Term. The Employment Term of this Agreement shall commence on the Effective Date
and shall continue until the earlier of the Employment Contract Termination Date or the
Employment Final Termination Date.
	 
	1.2	 	Full Working Time. During the Employment Term, the Employee shall devote all of his
attention, experience and efforts during normal business hours to the proper performance of
his duties hereunder and to the business and affairs of the Company.
	 
	1.3	 	Change in Control/Corporate Transaction. Notwithstanding the foregoing, if a Change in
Control or Corporate Transaction occurs prior to the Employment Contract Termination Date,
then the terms outlined in Article 4 shall apply.

ARTICLE 2. COMPENSATION PACKAGE AMOUNT

	2.1	 	Cash Compensation. During the Employment Term, as compensation for services hereunder and
subject to the performance of his obligations hereunder, the Employee shall be paid the cash
compensation (the “Cash Compensation”), which consists of the following:

	 	i.	 	Base Salary: base salary in the amount of RMB
                     payable in twelve monthly installments (“Monthly Base Salary”)
and pro rated for the number of days actually worked by Employee in any month in
which the Employment Contract Termination Date or the Employment Final Termination
Date occurs;
	 
	 	ii.	 	Annual Performance Incentive Cash Bonus: an annual performance
incentive cash bonus, payable on or before                     of the following
calendar year, subject to the Company’s and/or Employee’s achievement of the annual
performance targets set forth in Exhibit A hereto (“Performance Targets”),
such performance as verified and approved by the Compensation Committee. The

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 5 of 29

 

 

 

	 	 	 	Employee is not entitled to any annual incentive cash bonus mentioned above unless he has been employed by the Company for the full calendar year (or, in the
case of                     , from the Effective Date until December 31,
                    ), and such bonus shall not be deemed earned until the
Compensation Committee verifies the Company’s achievement of the Performance Targets
and approves payment of such bonus to Employee.

The Cash Compensation shall be payable in RMB. The Employee may elect, at his own
foreign exchange risk and expense, to receive a percentage of such Cash Compensation in
foreign currencies, under which circumstances the Company will pay such amount in the
foreign currencies as designated by the Employee at the exchange rate made available to the
Company by any financial institution selected by the Company which provides foreign currency
exchange services for the Company.

	2.2	 	Benefits. During the Employment Term, as compensation for services hereunder, the Employee
shall be entitled to the benefits as follows:

	 	i.	 	Housing Allowance: housing allowance in the aggregate amount of
up to RMB                      per month.
	 
	 	ii.	 	Insurance: health and life insurance providing international
standard coverage as determined by the Compensation Committee after consultation
with the Employee, with insurance premiums per individual family member in the
amount of up to RMB                      (which is equivalent to
                    US Dollars (US$                    )) per year.
	 
	 	iii.	 	Education Reimbursement: reimbursement of education cost
incurred for                      child, up to total RMB                     
(which is equivalent to                      US Dollars (US$                    ))
per year.
	 
	 	iv.	 	Company Car: use of car (Buick sedan and business van
equivalent class) and driver as provided by the Company.
	 
	 	v.	 	Travel Allowance: reimbursement of travel related cost
incurred, up to RMB                      per family (which is equivalent to
                     US Dollars (US$                    )) per year.
	 
	 	vi.	 	Tax Advisory Services: reimbursement for actual tax advisory
service fees incurred, up to RMB                      (which is equivalent to
                     US Dollars (US$                    )) per year.
	 
	 	 	 	All reimbursements will be paid subject to Employee’s delivery of actual
expense receipts/invoices documenting the relevant reimbursement requested.

	2.3	 	Individual Income Tax. The Employee shall be responsible for paying his own individual income
tax with EXCEPTION of the one-time bonus in respect of the compensation received hereunder,
and Employee will certify in writing annually to the Board that he has accurately reported and
timely paid all income tax due in connection with such compensation. The Company will make all
required tax and statutory withholdings according to the PRC
taxation laws and the tax amount
will be deducted from the Employee’s Monthly Base
Salary, which deduction Employee hereby consents to.

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 6 of 29

 

 

 

	2.4	 	Annual Leave. The Employee shall be entitled to                     weeks of annual leave
with pay during each calendar year of the Employment Term, which must be taken in accordance
with the Company’s vacation policy then in effect.
	 
	2.5	 	Travel Expenses Reimbursement. The Company shall pay or reimburse the Employee for
reasonable business expenses actually incurred or paid by the Employee during the Employment
Term, in the performance of his services hereunder.
	 
	2.6	 	Employee Stock Option Awards. The Company and Employee acknowledge that Employee has been
granted an option to purchase                      ordinary shares (                    
American Depositary Shares) of the Company (the “Initial Stock Option Grant”), the general
terms of which are described in Exhibit B. As of the date of this Agreement and
subject to the approval of the Board of Directors, Employee will be granted additional options
to purchase                      ordinary shares of the Company (which is equivalent to
                     American Depositary Shares) (the “Second Stock Option Grants”), the
general terms of which are set forth in Exhibit B which is attached hereto. The
Second Stock Option Grants are conditioned upon Employee’s execution of the Company’s Notice
of Stock Option Award and Stock Option Award Agreement for each option, and such options will
be subject to the terms of those agreements and the terms of the Company’s 2003 Stock
Incentive Plan.

ARTICLE 3. TERMINATION

	3.1	 	General.

	 	3.1.1	 	Company’s Right to Terminate. The Company shall have the right to terminate
the employment of the Employee at any time with or without Cause, but the relative
rights and obligations of the parties in the event of any such termination or
resignation shall be determined under this Agreement.
	 
	 	3.1.2	 	Employee’s Resignation Right. The Employee shall have the right to resign for
any reason with six (6) months’ prior notice to the Company unless such resignation is
for “Good Reason” (in which case, Employee may resign by providing the Company with 30
days’ notice), but the relative rights and obligations of the parties in the event of
any such resignation shall be determined under this Agreement (such event, an “Employee
Resignation”, and the date of notice by the Employee to the Company, the “Employee
Resignation Date”).

3.2 Termination Under Certain Circumstances.

	 	3.2.1	 	Termination For Cause. In the event the Company terminates the Employee’s
employment for Cause prior to the expiration of the Employment Term, subject to the
Employee’s compliance with Articles 5, 6 and 7 hereof and the Exhibits referenced in
Article 5 hereof, the Company will be obliged to pay only the Standard Termination
Entitlements as defined in Section 3.4.1, and the Employee’s right to exercise the
Employee Stock Options described under Section 2.6 shall be determined pursuant to the
applicable stock option agreements and stock incentive plan governing such options.

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 7 of 29

 

 

 

	 	3.2.2	 	Resignation for Any Reason Other Than Good Reason. In the event the
	 
	 	 	 	Employee resigns for any reason other than Good Reason prior to the expiration of
the Employment Term, the Company will be obliged to pay the Standard Termination
Entitlements as defined in Section 3.4.1, subject to the Employee’s compliance with
Articles 5, 6 and 7 hereof and the Exhibits referenced in Article 5 hereof.
	 
	 	3.2.3	 	Termination Without Cause or Resignation for Good Reason. Except in the event
of a Change in Control or a Corporate Transaction, in the event that the Company
terminates the Employee’s employment without Cause or the Employee resigns for Good
Reason, subject to the Employee’s compliance with Articles 5, 6 and 7 hereof and the
Exhibits referenced in Article 5 hereof:
	 
	 	i.	 	the Company will be obligated to pay the Standard Termination
Entitlements as defined in Section 3.4.1 and the Severance Benefits as described in
Section 3.4.2; provided that, in each case, Employee’s eligibility for the Standard
Termination Entitlements and the Severance Benefits is conditioned upon the
following:

	 	(a)	 	Employee’s compliance with his post-employment obligations,
including without limitation the proprietary information, confidentiality,
non-competition, non-solicitation and non-disparagement obligations set forth
in Article 5 hereof and the Exhibits referenced in Article 5 hereof; and

	 	(b)	 	Employee having first signed a release certificate in the form
attached as Exhibit E.

	 	3.2.4	 	Termination upon a Change in Control. In the event of a Change in Control or
Corporate Transaction, the terms outlined in Article 4 shall apply.

	3.3	 	Liquidated Damages. The Company and Employee hereby stipulate that the damages which may be
incurred by the Employee as a consequence of any such termination of employment are not
capable of accurate measurement as of the Effective Date and that the liquidated damages
payments provided for in this Agreement constitute a reasonable estimate under the
circumstances of, and are in full satisfaction of, all damages sustained as a consequence of
any such termination of employment.
	 
	3.4	 	Definitions.

	 	3.4.1	 	Standard Termination Entitlements. For all purposes of this Agreement, the
“Standard Termination Entitlements” shall mean and include:
	 
	 	i.	 	the Employee’s earned but unpaid compensation (including, without
limitation, salary, bonus and all other items which constitute wages under
applicable law) as of the date of his termination of employment. This payment
shall be made at the time and in the manner prescribed by law applicable to the
payment of compensation but in no event later than 30 days after the date of the
Employee’s termination of employment;
	 
	 	ii.	 	the benefits, if any, due to the Employee (and the Employee’s estate,
surviving dependents or his designated beneficiaries) under the employee benefit
plans and programs and compensation plans and programs (including stock option
plans) maintained for the benefit of the employees of the Company; and

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 8 of 29

 

 

 

	 	iii.	 	all of the Employee’s Employee Stock Options that have been deemed to
have vested at or prior to the Employment Final Termination Date under the terms of
applicable stock option agreements and stock incentive plans.
	 
	 	3.4.2	 	Severance Benefits. For all purposes of this Agreement, the Employee’s
“Severance Benefits” shall mean: the payment of an amount equal to the Employee’s
Monthly Base Salary in effect immediately prior to his termination of employment
multiplied by the Severance Multiplier. Fifty percent (50%) of the total amount of
Severance Benefits shall be payable within                      (                    )
business days following the Employment Final Termination Date and the remaining fifty
percent 50% shall be payable on the one (1) year anniversary of the Employment Final
Termination Date.
	 
	 	3.4.3	 	Taxes. Notwithstanding any other provision of this Agreement whatsoever, the
Company, in its sole discretion, shall have the right to provide for the application
and effects of Section 409A of the U.S. Internal Revenue Code (the “Code”) (relating to
deferred compensation arrangements) and any related administrative guidance issued by
the Internal Revenue Service. The Company shall have the authority to delay the
payment of any amounts under this Agreement to the extent it deems necessary or
appropriate to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments
made to certain “key employees” of publicly-traded companies); in such event, the
payment(s) at issue may not be made before the date which is six (6) months after the
date of Executive’s separation from service, or, if earlier, the date of death.

	3.5	 	Director Status. Employee shall promptly resign from the Board and from any Board committees
on which he serves if his employment with the Company terminates for any reason and if
requested by a majority of the current directors of the Board following such termination.

ARTICLE 4. Change in Control/Corporate Transaction.

	4.1	 	Employment Term. If a Change in Control or Corporate Transaction occurs prior to the
Employment Contract Termination Date, then the Employment Term shall remain unchanged.
	 
	4.2	 	Severance Payment Amount. If a Change in Control or Corporate Transaction occurs prior to the
Employment Contract Termination Date and the Company terminates the Employee’s employment
without Cause or the Employee resigns for Good Reason, then the Employee will be entitled to
(a) a payment equal to the greater of (x)                      times the Employee’s Monthly
Base Salary in effect immediately prior to his termination or resignation of employment or (y)
                     months’ Employee’s Monthly Base Salary in effect immediately prior to his
termination or resignation of employment less any compensation paid to the Employee during the
period between the Change in Control or Corporate Transaction and Employment Final Termination
Date, and (b) subject to the Employee’s compliance with Articles 5, 6 and 7, the Standard
Termination Entitlements as defined in Section 3.4.1.
	 
	4.3	 	Health and Life Insurance Benefits. If a Change in Control or Corporate Transaction occurs
prior to the Employment Contract Termination Date, then the Employee will be entitled to
Company-paid contributions for health and life insurance premiums for the
greater of six months or the number of months between the Employment Final Termination Date
and the first anniversary of the Change in Control or Corporate Transaction.

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 9 of 29

 

 

 

	4.4	 	Section 280G. In order to avoid the payment of excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986 (the “Code”), the Company may reduce the payments or benefits to
the Employee (within the meaning of Section 280G(b)(2) of the Code). Such reduction may apply
to cash payments, vesting acceleration of Employee Stock Options and other benefits received
by the Employee, which could result in the acceleration of vesting of only a portion or none
of then unvested Employee Stock Options. In no event shall any payment be made under this
Agreement if it would result in an excess parachute payment under section 280G of the Internal
Revenue Code of 1986.

ARTICLE 5. PROPRIETARY INFORMATION AND NON-COMPETITION

The Employee shall, on the Effective Date, enter into a Key Employee Invention Assignment and
Confidentiality Agreement in the form as Exhibit C attached hereto and a Non-Compete
Agreement (together with the Key Employee Invention Assignment and Confidentiality Agreement, the
“Ancillary Agreements”) in the form as Exhibit D attached hereto. The Employee agrees that
the entering into the Ancillary Agreements is necessary to protect the interests of the Company,
its Subsidiaries or Affiliates and is reasonable and valid in geographical and temporal scope and
in all other respects. If any court determines that this Article 5 or any provision in the
Ancillary Agreements is unenforceable because of the duration or geographical scope of such
provision, such court will have the power to reduce the duration or scope of such provision, as the
case may be, and, in its reduced form, such provision will be enforceable.

ARTICLE 6. REMEDIES

If the Employee commits a breach, or threatens to commit a breach, of any provisions of this
Agreement or the Ancillary Agreements (the “Breach”), the Company shall have the right (a) to
terminate the employment under Section 3.2.1 and claim for damages associated with the Breach, each
of which shall be independent of the others and shall be severally enforceable, and all of which
shall be in addition to, and not in lieu of, any other rights and remedies available under law or
in equity to the Company; and (b) to have the provisions hereof or of the Ancillary Agreements
enforced by any court in the State of New York, USA, it being acknowledged and agreed that any
breach or threatened breach of any of such provision by the Employee will cause irreparable injury
to the Company and that money damages will not provide an adequate remedy to the Company.

ARTICLE 7. DISPUTE RESOLUTION

Any dispute, controversy or claim, at any time arising out of or relating to this Agreement,
or the breach, termination or invalidity thereof (other than any dispute, controversy or claim
pursuant to the Key Employee Invention Assignment and Confidentiality Agreement or Non-Compete
Agreement under the Articles 5 hereof, which may, at the option of the Company, be submitted to any
court having jurisdiction), shall be settled by binding arbitration at the request of either party.
Each arbitration hereunder shall be conducted in Hong Kong at the Hong Kong International
Arbitration Centre (“HKIAC”) in accordance with the UNCITRAL Arbitration Rules then in effect. Any
such arbitration shall be administered by HKIAC in accordance with HKIAC Procedures for Arbitration
in force at the date of this Agreement including such additions to the UNCITRAL Arbitration Rules
as are therein contained. Judgment upon an award rendered in an arbitration hereunder may be
entered in any court having jurisdiction or application may be made
to such court for judicial acceptance of any award and an order of enforcement, as the case
may

					
	 	 	 	 	 
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be. The arbitrators shall have the authority to grant any equitable and legal remedies that
would be available in any judicial proceeding intended to resolve a dispute. The parties
irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the
laying of venue for any such suit, action or proceeding brought before HKIAC. THE PARTIES ALSO
EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR
PROCEEDING. If any one or more provisions of this Article 7 shall for any reason be held invalid or
unenforceable, it is the specific intent of the parties that such provisions shall be modified to
the minimum extent necessary to make it or its application valid and enforceable.

ARTICLE 8. GENERAL PROVISIONS

	8.1	 	Notices. All notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly received if so given) by
hand delivery, telegram, telex, or telecopy, or facsimile transmission, or by mail (registered
or certified mail, postage prepaid, return receipt requested) or by any courier service,
providing proof of delivery. All communications hereunder shall be delivered to the
respective parties at the following addresses or to such other address as the party to whom
notice is given may have previously furnished to the other parties hereto in writing in the
manner set forth above:
	 
	 	 	If to the Employee:
	 
	 	 	If to the Company:
	 
	8.2	 	Entire Agreement. This Agreement, taken together with the Ancillary Agreements, shall
constitute the entire agreement between the Employee and the Company with respect to the
Employee’s employment with the Company and supersedes any and all prior agreements and
understandings, including but not limited to the Original Employment Agreement, written or
oral, with respect thereto.
	 
	8.3	 	Amendments and Waivers. Any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively) only by an instrument in writing and signed by the party
against whom such amendment or waiver is sought to be enforced.
	 
	8.4	 	Successors and Assigns. The personal services of the Employee are the subject of this
Agreement and the Ancillary Agreements and no part of the Employee’s or the Company’s rights
or obligations hereunder or thereunder may be assigned, transferred, pledged or encumbered by
the Employee or the Company. This Agreement and the Ancillary Agreements shall inure to the
benefit of, and be binding upon (a) the parties hereto, (b) the heirs, administrators,
executors and personal representatives of the Employee and (c) the successors and assigns of
the Company as provided herein.
	 
	8.5	 	Governing Law and Venue. This Agreement, including the validity hereof and the rights and
obligations of the parties hereunder, and all amendments and supplements hereof and all
waivers and consents hereunder, shall be construed in accordance with and governed by the laws
of the State of New York, USA, without giving effect to any conflicts of law
provisions or rule, that would cause the application of the laws of any other jurisdiction.

					
	 	 	 	 	 
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	8.6	 	Severability. If any provisions of this Agreement, as applied to any part or to any
circumstance, shall be adjudged by a court to be invalid or unenforceable, the same shall in
no way affect any other provision of this Agreement, the application of such provision in any
other circumstances or the validity or enforceability of this Agreement.
	 
	8.7	 	Survival. The rights and obligations of the Company and Employee pursuant to Articles 3, 4,
5, 6 and 7 shall survive the termination of the Employee’s employment with the Company and the
expiration of the Employment Term.
	 
	8.8	 	Captions. The headings and captions used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this Agreement.
	 
	8.9	 	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.
	 
	8.10	 	No Breach of Other Agreements. Employee hereby represents and warrants that his execution,
delivery and performance of this Agreement and the Ancillary Agreements shall not violate or
constitute a breach of the terms of any other agreement to which Employee is a party, whether
written or oral.
	 
	8.11	 	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

					
	 	 	 	 	 
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	EMPLOYEE

 	 	 
	By:  	 	 	 
	 	 	 	 
	 	 	 	 
	 
	COMPANY

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

					
	 	 	 	 	 
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Exhibit A

Annual Performance Incentive Cash Bonus Amounts and Targets

Employee shall be eligible for an Annual Performance Incentive Cash Bonus for                     ,
subject to the Company’s achievement of certain earnings per share and revenue milestones. The
Annual Performance Incentive Cash Bonus for                      shall be payable, if earned, on or
prior to                     , and cash performance bonuses for each subsequent year shall be payable on or
before                      of the following calendar year. For                     , the actual
amount of Employee’s bonus shall be based on the following performance targets:

	 	 	 	 	 
	EPS and Revenue Milestone	 	 	 
	(Both must be achieved)	 	Bonus Amount	 
	 
	 	 	 	 

Definitions:

	1.	 	“EPS” means earnings determined in accordance with U.S. generally accepted accounting
principles (“GAAP”), per Fully Diluted ADS, in USD cents, greater than or equal to the targets
set forth above
	 
	2.	 	“REV” means U.S. GAAP gross revenue, in USD Millions, greater than or equal to the targets
set forth above

Bonus amounts shall be based on the achievement of both EPS and REV milestones at
each threshold and shall be non-linear (                                        ). For purposes of satisfying the
EPS and REV Milestones, EPS and REV shall be calculated based on the inclusion of EPS and REV
generated only by the Company and its controlled entities in existence as of the date hereof and
shall not include any entities acquired or consolidated with the Company by way of additional
merger or acquisition activity during fiscal                      or thereafter.

In all events, Employee must remain continuously employed through the end of the calendar year to
be eligible for the Annual Performance Incentive Cash Bonus for such year. In addition, (1)
Employee is not entitled to any portion of the Annual Performance Incentive Cash Bonus if his
employment is terminated for Cause during the period after the end of a calendar year in which the
performance criteria have been satisfied but before the bonus for such year has been paid; and (2)
Employee is entitled to the Annual Performance Incentive Cash Bonus if his employment is terminated
without Cause or Employee resigns for Good Reason during the period between the end of the calendar
year and the date the bonus is paid.

Future Annual Performance Incentive Cash Bonuses shall be based on the achievement of similar
milestones linked to earnings per share and revenue targets, or other commensurate targets as
determined, in each case, by the Compensation Committee and the Board.

					
	 	 	 	 	 
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Exhibit B

Key Terms for Initial Stock Option Grant

	 	 	 	 	 
	Plan under Which Granted:
	 	2003 Stock Incentive Plan
	 
	 	 	 	 
	Grant Date:
	 	 	                    	 
	 
	 	 	 	 
	Vesting Commencement Date:
	 	 	                    	 
	 
	 	 	 	 
	Exercise Price per Ordinary Share:
	 	US$                    	 
	 
	 	 	 	 
	Total number of Ordinary Shares subject to the Option:
	 	 	                    	 
	 
	 	 	 	 
	Total Exercise Price:
	 	 	                    	 
	 
	 	 	 	 
	Expiration Date:
	 	 	                    	 
	 
	 	 	 	 
	Type of Option:
	 	 	                    	 
	 
	 	 	 	 
	Post-Termination Exercise Period:
	 	 	                    	 
	 
	 	 	 	 
	Vesting Schedule:
	 	 	                    	 

					
	 	 	 	 	 
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Exhibit C

Key Employee Invention Assignment and Confidentiality Agreement 

In consideration of, and as a condition of my continued employment with Linktone Ltd., a
Cayman Islands company (as contemplated in the employment agreement between Linktone Ltd. and me
(the “Agreement”)), or with any of its subsidiaries, including, without limitation, Shanghai
Linktone Consulting Co., Ltd., Shanghai Huitong Information Co Ltd., Shanghai Weilan Computer Co.
Ltd., Shanghai Unilink Computer Co. Ltd., Shanghai Linktone Internet Technology Limited and
Shanghai Linktone Software Co., Ltd. (collectively, the “Company”), I hereby represent to,
and agree with, the Company as follows:

	1.	 	Purpose of Agreement. I understand that the Company is engaged in a continuous
program of research, development, production and marketing in connection with its business and
that it is critical for the Company to preserve and protect its Proprietary Information (as
defined in Section 3 below), its rights in Inventions (as defined in Section 2 below) and in
any other intellectual property rights. Accordingly, I am entering into this Key Employee
Invention Assignment and Confidentiality Agreement (this “Agreement”) as a condition
of my continued employment with the Company, whether or not I am expected to create inventions
of value for the Company.
	 
	2.	 	Disclosure of Inventions. I will promptly disclose in confidence to the Company all
inventions, improvements, designs, original works of authorship, derivative works, formulas,
processes, compositions of matter, techniques, know-how, computer software programs,
databases, mask works and trade secrets (the “Inventions”) that I make or conceive or
first reduce to practice or create, either alone or jointly with others, during the period of
my employment, whether or not in the course of my employment, and whether or not such
Inventions are patentable, copyrightable or protectible as trade secrets or mask works.
	 
	3.	 	Proprietary Information. I understand that my employment by the Company creates a
relationship of confidence and trust with respect to any information of a confidential or
secret nature that may be disclosed to me by the Company that relates to the business of the
Company or to the business of any parent, subsidiary, affiliate, customer or supplier of the
Company or any other party with whom the Company agrees to hold information of such party in
confidence (the “Proprietary Information”). Such Proprietary Information includes but
is not limited to any confidential and/or proprietary knowledge, data or information, any
past, present or future Inventions, marketing plans, product plans, business strategies,
financial information (including budgets and unpublished financial statements), licenses,
prices and costs, forecasts, personal information, suppliers, customers and lists of either,
information, trade secrets, patents, mask works, ideas, confidential knowledge, data or other
proprietary information relating to new and existing products, processes, know-how, designs,
formulas, developmental or experimental work, improvements, discoveries, designs and
techniques, computer programs, data bases, other original works of authorship, employee
information including the skills and compensation of other employees of Company, or other
subject matter pertaining to any business of Company. I agree that Company may from time to
time create a list of specific
Proprietary Information and I will acknowledge any such lists in writing upon request.

					
	 	 	 	 	 
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	4.	 	Confidentiality. At all times, both during my employment and after its termination,
I will keep and hold all such Proprietary Information in strict confidence and trust. I will
not use or disclose any Proprietary Information without the prior written consent of the
Company, except as may be necessary to perform my duties as an employee of the Company for the
benefit of the Company. Upon termination of my employment with the Company, I will promptly
deliver to the Company all documents and materials of any nature pertaining to my work with
the Company. I will not take with me any documents or materials or copies thereof containing
any Proprietary Information.
	 
	5.	 	Work for Hire; Assignment of Inventions. I acknowledge and agree that any
copyrightable works prepared by me either alone or jointly with others, within the scope of my
employment are “works for hire” under the United States Copyright Act and that the Company
will be considered the author and owner of such copyrightable works. In the event that any
such copyrightable works are not deemed to be “works made for hire,” I hereby irrevocably
assign all of my right, title and interest in and to such copyrightable works to Company. I
agree that all Inventions that (i) are developed using equipment, supplies, facilities or
trade secrets of the Company, (ii) result from work performed by me for the Company, or (iii)
relate to the Company’s business or current or anticipated research and development
(collectively, “Company Inventions”), will be the sole and exclusive property of the
Company and are hereby irrevocably assigned by me to the Company.
	 
	6.	 	Assignment of Other Rights. In addition to the foregoing assignment of Company
Inventions to the Company, I hereby irrevocably transfer and assign to the Company: (i) all
worldwide patents, patent applications, copyrights, mask works, trade secrets and other
intellectual property rights in any Company Invention; and (ii) any and all Moral Rights (as
defined below) that I may have in or with respect to any Company Invention. I also hereby
forever waive and agree never to assert any and all Moral Rights I may have in or with respect
to any Company Invention, even after termination of my work on behalf of the Company.
“Moral Rights” mean any rights to claim authorship of a Company Invention, to object
to or prevent the modification of any Company Invention, or to withdraw from circulation or
control the publication or distribution of any Company Invention, and any similar right,
existing under judicial or statutory law of any country in the world, or under any treaty,
regardless of whether or not such right is denominated or generally referred to as a “moral
right”.
	 
	7.	 	Assistance. For no consideration in addition to my salary or wages during my
employment, I agree to assist the Company in every proper way to obtain for the Company and
enforce patents, copyrights, mask work rights, trade secret rights and other legal protections
for the Company’s Inventions in any and all countries. I will execute any documents that the
Company may reasonably request for use in obtaining or enforcing such patents, copyrights,
mask work rights, trade secrets and other legal protections. My obligations under this
paragraph will continue beyond the termination of my employment with the Company, provided
that the Company will compensate me at a reasonable rate after such termination for time or
expenses actually spent by me at the Company’s request on such assistance. I appoint the
                     of the Company as my attorney-in-fact to execute documents on my behalf
for this purpose. I hereby waive and quitclaim to Company any and all claims, of any nature
whatsoever, which I now or may hereafter have for infringement of any proprietary rights
assigned hereunder
to Company.

					
	 	 	 	 	 
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	8.	 	No Breach of Prior Agreement. I represent that my performance of all the terms of
this Agreement and my duties as an employee of the Company will not breach any invention
assignment, proprietary information, confidentiality or similar agreement with any former
employer or other party. I represent that I did not bring with me to the Company or use in
the performance of my duties for the Company any documents or materials or intangibles of a
former employer or third party that are not generally available to the public or have not been
legally transferred to the Company.
	 
	9.	 	Efforts; Duty Not to Compete. I understand that my employment with the Company
requires my undivided attention and effort during normal business hours. While I am employed
by the Company, I will not, without the Company’s express prior written consent, provide
services to, or assist in any manner, any business or third party which competes with the
current or planned business of the Company.
	 
	10.	 	Notification. I hereby authorize the Company to notify my actual or future employers
of the terms of this Agreement and my responsibilities hereunder.
	 
	11.	 	Non-Solicitation of Employees/Consultants. During my employment with the Company and
for a period of two (2) years thereafter, I will not directly or indirectly solicit away
employees or consultants of the Company for my own benefit or for the benefit of any other
person or entity. “Solicit” shall not include the placement of an advertisement in a
publication of general circulation.
	 
	12.	 	Non-Solicitation of Suppliers/Customers. During my employment with the Company and
after termination of my employment, I will not directly or indirectly solicit or take away
suppliers or customers of the Company if the identity of the supplier or customer or
information about the supplier or customer relationship is a trade secret or is otherwise
deemed confidential information within the meaning of Chinese law.
	 
	13.	 	Non-Disparagement. During my employment with the Company and after termination of my
employment, I will not directly or indirectly disparage, defame, otherwise speak negatively
about the Company or its predecessors, successors, or past or present subsidiaries or
affiliated entities, officers, directors, agents, employees and assigns, in any manner, or
take or cause to be taken any other action that is, likely to be harmful to them or their
business, business reputation or personal reputation in any way, provided that I shall respond
accurately and fully to any question, inquiry or request for information when instructed by
the Company or otherwise required by legal process.
	 
	14.	 	Injunctive Relief. I understand that in the event of a breach or threatened breach
of this Agreement by me the Company may suffer irreparable harm and will therefore be entitled
to injunctive relief to enforce this Agreement, without prejudice to any other rights or
remedies that Company may have for a breach of this Agreement.
	 
	15.	 	Governing Law; Severability. This Agreement will be governed by and construed in
accordance with the laws of New York, without giving effect to that body of laws pertaining to
conflict of laws. If any provision of this Agreement is determined by any court or arbitrator
of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such
provision will be enforced to the maximum extent possible given the intent of the parties
hereto. If such clause or provision cannot be so enforced, such provision

					
	 	 	 	 	 
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	 	 	shall be stricken
from this Agreement and the remainder of this Agreement shall be
enforced as if such invalid, illegal or unenforceable clause or provision had (to the
extent not enforceable) never been contained in this Agreement. Notwithstanding the
forgoing, if the value of this Agreement based upon the substantial benefit of the bargain
for any party is materially impaired, which determination as made by the presiding court
or arbitrator of competent jurisdiction shall be binding, then this Agreement will not be
enforceable against such affected party and both parties agree to renegotiate such
provision(s) in good faith.
	 
	16.	 	Counterparts. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered will be deemed an original, and all of which together
shall constitute one and the same agreement.
	 
	17.	 	Titles and Headings. The titles, captions and headings of this Agreement are
included for ease of reference only and will be disregarded in interpreting or construing this
Agreement. Unless otherwise specifically stated, all references herein to “sections” and
“exhibits” will mean “sections” and “exhibits” to this Agreement.
	 
	18.	 	Entire Agreement. This Agreement and the documents referred to herein constitute the
entire agreement and understanding of the parties with respect to the subject matter of this
Agreement, and supersede all prior understandings and agreements, whether oral or written,
between or among the parties hereto with respect to the specific subject matter hereof.
	 
	19.	 	Amendment and Waivers. This Agreement may be amended only by a written agreement
executed by each of the parties hereto. No amendment of or waiver of, or modification of any
obligation under this Agreement will be enforceable unless set forth in a writing signed by
the party against which enforcement is sought. Any amendment effected in accordance with this
section will be binding upon all parties hereto and each of their respective successors and
assigns. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. No waiver granted
under this Agreement as to any one provision herein shall constitute a subsequent waiver of
such provision or of any other provision herein, nor shall it constitute the waiver of any
performance other than the actual performance specifically waived.
	 
	20.	 	Successors and Assigns; Assignment. Except as otherwise provided in this Agreement,
this Agreement, and the rights and obligations of the parties hereunder, will be binding upon
and inure to the benefit of their respective successors, assigns, heirs, executors,
administrators and legal representatives. The Company may assign any of its rights and
obligations under this Agreement. No other party to this Agreement may assign, whether
voluntarily or by operation of law, any of its rights and obligations under this Agreement,
except with the prior written consent of the Company.
	 
	21.	 	Further Assurances. The parties agree to execute such further documents and
instruments and to take such further actions as may be reasonably necessary to carry out the
purposes and intent of this Agreement.
	 
	22.	 	Not Employment Contract. I understand that this Agreement does not constitute a
contract of employment or obligate the Company to employ me for any stated period of time.

					
	 	 	 	 	 
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This Agreement shall be effective as of Effective Date.

	 	 	 	 	 
	EMPLOYEE

 	 	 
	By:  	 	 	 
	 	 	 	 
	 	 	 	 
	 
	COMPANY

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

					
	 	 	 	 	 
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Exhibit D

Non-Compete Agreement

Dear                     ,

As an employee of Linktone Ltd., a Cayman Islands company (as contemplated in the employment
agreement between Linktone Ltd. and me (the “Agreement”)), or with any of its subsidiaries,
including, without limitation, Shanghai Linktone Consulting Co., Ltd., Shanghai Huitong Information
Co Ltd., Shanghai Weilan Computer Co. Ltd., Shanghai Unilink Computer Co. Ltd., Shanghai Linktone
Internet Technology Limited and Shanghai Linktone Software Co., Ltd. (collectively, the
“Company”), you must execute and deliver a covenant not to compete with the Company during
your employment and for 12 months thereafter. The terms and conditions set forth below, as
applicable, shall, upon your acceptance thereof, become an agreement between you and the Company.

Covenant Not to Compete

It is hereby agreed that, from the date hereof and so long as you are an employee, consultant
or serve in a similar capacity with the Company or any of its subsidiaries, you shall devote
substantially all of your professional time to the Company and its subsidiaries and shall not
participate in any manner in the management or operation of any business other than that of the
Company and its subsidiaries or serving on the board of directors of the Company or any of its
subsidiaries.

If your are no longer employed by or acting as a consultant for the Company or its
subsidiaries, you shall not be employed by or participate in any manner in the management or
operation of any business or entity that is or may be directly competitive with and offering
similar products or services as the Company or its subsidiaries until 12 months after the date of
termination of employment with the Company or any subsidiary.

Covenant Not to Solicit Employees

While employed by Company and for a period of two (2) years after the termination of your
employment with Company, you shall not, directly or indirectly, solicit for employment any person
who was employed by Company during your employment with Company. In the event that you hire or
employ any such person during such two (2) year period (without soliciting such person in violation
of this foregoing restriction), you shall reimburse the Company for any and all costs and expenses
incurred by the Company to replace such person (including, without limitation, costs and expenses
incurred for recruiting, hiring and training).

Covenant Not to Divert Business

For a period of two (2) years after the termination of your employment with Company, you shall
not, directly or indirectly:

					
	 	 	 	 	 
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(i) work as an employee, employer, consultant, agent, principal, partner, manager,
stockholder, officer, director, or in any other individual or representative capacity for any
person or entity who or which was a customer of Company during your employment with Company,
without the Company’s written consent; or

(ii) call on, solicit, or take away for you or for any other person or entity any person or
entity who or which was a customer of Company, or with which Company was in negotiations to become
a customer of Company, during your employment with Company.

Company Rights if You Violate this Agreement

In the event that you do not comply with the terms of this Agreement, any profit sharing or
stock options to which you would otherwise be entitled will be forfeited.

In the event you do not comply with the terms of this Agreement, the Employment Agreement or
the Key Employee Invention Assignment and Confidentiality Agreement, we also reserve the right to
discharge you as an employee. Furthermore, we reserve the right to recover monetary damages from
you, and we may also recover punitive damages to the extent permitted by law. In the event that
monetary damages are an inadequate remedy for any harm suffered by us as a result of a breach of
this Agreement by you, we may also seek other relief, including an order of specific performance or
injunctive relief. You will not seek, and you agree to waive any requirement for, the securing or
posting of a bond in connection with our seeking or obtaining such relief.

You further agree to indemnify and hold us harmless from any damages, losses, costs or
liabilities (including legal fees and the costs of enforcing this indemnity agreement) arising out
of or resulting from your failure to abide by the terms of this Agreement.

At-Will Employment

You agree and understand that, except as may be provided in any employment agreement between
you and the Company, your employment with the Company is “at-will,” meaning that it is not for any
specified period of time and can be terminated by you or by the Company at any time, with or
without advance notice, and for any or no particular reason or cause. You agree and understand
that it also means that job duties, title and responsibility and reporting level, compensation and
benefits, as well as the Company’s personnel policies and procedures, may be changed at any time
at-will by the Company. You understand and agree that nothing about the fact or the content of
this Agreement is intended to, nor should be construed to, alter the at-will nature of your
employment with the Company. You also understand and agree that the at-will nature of employment
with the Company can only be changed by the Board of Directors of the Company in an express writing
signed and dated by an authorized Board member and by you.

					
	 	 	 	 	 
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Acknowledgment

You agree that, in light of the substantial benefits you will receive as our employee, the
terms contained in this Agreement are necessary and reasonable in all respects and that the
restrictions imposed on you are reasonable and necessary to protect our legitimate business
interests. You acknowledge that a portion of the salary you receive during your employment with
the Company constitutes due consideration for your obligations hereunder. Additionally, you hereby
acknowledge and agree that the restrictions imposed on you by this Agreement will not prevent you
from obtaining employment in your field of expertise or cause you undue hardship.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the New York,
without regard to any conflicts of laws provision thereof.

By accepting this Agreement, you acknowledge that, given the nature of the Company’s business,
the provisions contained in this Agreement contain reasonable limitations as to time, geographical
area and scope of activity to be restrained, and do not impose a greater restraint than is
necessary to protect and preserve the Company and to protect the Company’s legitimate interests.
If, however, the provisions of this Agreement are determined by any court of competent jurisdiction
or any arbitrator to be unenforceable by reason of its extending for too long a period of time or
over too large a geographic area or by reason of its being too extensive in any other respect, or
for any other reason, it will be interpreted to extend only over the longest period of time for
which it may be enforceable and over the largest geographical area as to which it may be
enforceable and to the maximum extent in all other aspects as to which it may be enforceable, all
as determined by such court or arbitrator in such action.

Please confirm your agreement with the foregoing by signing and returning directly to the
undersigned the duplicate copy of this letter enclosed herewith.

	 	 	 	 	 
	 	Very truly yours,

Linktone Ltd.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Accepted and Agreed to as

of the date first above written:

 	 	 
	
 	 	 
	 	 	 
	 	 	 
	 

					
	 	 	 	 	 
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Exhibit E

Form of Release Certificate 

                     (“You”) and Linktone Ltd. (the “Company”) have agreed to enter into this Release
Certificate on the following terms:

1. Within ten (10) business days after you sign this Release Certificate (which you may sign
no sooner than the last day of your employment with the Company), you will become eligible to
receive severance benefits in accordance with the terms of your Employment Agreement dated [date]
(the “Agreement”).

2. In return for the consideration described in the Agreement, you and your representatives
completely release Linktone Ltd., its affiliated, related, parent or subsidiary corporations, and
its and their present and former directors, officers, and employees (the “Released Parties”) from
all claims of any kind, known and unknown, which you may now have or have ever had against any of
them, or arising out of your relationship with any of them, including all claims arising from your
employment or the termination of your employment, whether based on contract, tort, statute, local
ordinance, regulation or any comparable law in any jurisdiction (“Released Claims”). By way of
example and not in limitation, the Released Claims shall include any claims arising under Title VII
of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Worker Adjustment and
Retraining Notification Act, the Age Discrimination in Employment Act, and the New York Human
Rights Law, or any comparable law of any other jurisdiction or nation, as well as any claims
asserting wrongful termination, breach of contract, breach of the covenant of good faith and fair
dealing, negligent or intentional misrepresentation, and defamation and any claims for attorneys’
fees. You also agree not to initiate or cause to be initiated against any of the Released Parties
any lawsuit, compliance review, administrative claim, investigation or proceedings of any kind
which pertain in any manner to the Released Claims.

3. You acknowledge that the release of claims under the Age Discrimination in Employment Act
(“ADEA”) is subject to special waiver protection. Therefore, you acknowledge the following: (a)
you have had 21 days to consider this Release Certificate (but may sign it at any time beforehand
if you so desire); (b) you can consult an attorney in doing so; (c) you can revoke this Release
Certificate within seven (7) days of signing it by sending a certified letter to that effect to
[name and address]; and that (d) notwithstanding the foregoing, the portion of this Release
Certificate that pertains to the release of claims under the ADEA shall not become effective or
enforceable and no funds shall be exchanged until the 7-day revocation period has expired, but that
all other provisions of this Release Certificate will become effective upon its execution by the
parties.

4. You agree to immediately return to the Company all Company documents (and all copies
thereof) and other Company property which you have had in your possession or control at any time,
including, but not limited to, the items set forth in Exhibit 1 to this Release
Certificate, and all Company mobile phones in your possession, your laptop computer and the
Blackberry or similar personal digital assistant provided by the Company, the Company’s files,
notes, drawings, records, business plans and forecasts, financial information, specifications,
computer-recorded information, tangible property, credit cards, entry cards, identification badges
and keys, and any materials of any kind which contain or embody any proprietary or confidential
information of the Company (and all reproductions thereof).

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 24 of 29

 

 

 

5. You understand and agree that you shall remain bound by the terms of that certain Key
Employee Invention Assignment and Confidentiality Agreement between you and Linktone dated
                    , attached as Exhibit 2 to this Release Certificate (the “Confidentiality
Agreement”), and the Non-Compete Agreement between you and Linktone, attached hereto as Exhibit
3 to this Release Certificate (the “Non-Compete Agreement”), both of which shall each be
considered a part of this Release Certificate.

6. You further agree to be bound by a customary lock-up agreement in a form and substance
determined by the Company, in its sole discretion, whereby you agree, for a period of 1 year
following your last day of employment with the Company (the “Lock-up Period”), not to sell or
otherwise transfer or dispose of any of the Company’s (a) American Depositary Shares (“ADSs”), (b)
ordinary shares or securities convertible into or exercisable or exchangeable for ordinary shares,
(c) securities of the same class as the ADSs or ordinary shares or (d) other instruments
representing interests in securities of the same class as ADSs or ordinary shares (collectively,
the “Securities”); provided, however, during any 30-day period during the Lock-up
Period, you may sell up to one-twelfth of the total number of Securities of the Company held by you
as of your last day of employment with the Company. All sales or other transactions consummated
pursuant to this paragraph shall be subject to Rule 144 of the Securities Act of 1933, as amended
(including without limitation the volume restrictions thereunder). In furtherance of the
foregoing, the Company, its transfer agent and registrar and the depositary for the ADSs are hereby
authorized to decline to make any transfer of ADSs or ordinary shares or issue any stop orders if
such transfer would constitute a violation or breach of the Agreement or any of the Exhibits
referenced thereto.

7. You acknowledge and agree that the Company shall have no obligation to assist or facilitate
in any way the deposit of any ordinary shares owned by you (including shares received upon the
exercise of stock options) into the Company’s American Depositary Receipt program unless and until
you deliver a certificate to the Company in a form satisfactory to the Company, to the effect that
you are not then in possession of any material nonpublic information regarding the Company and the
Company and its Board of Directors conclude it is reasonable to rely on such certificate.

8. You agree to hold in strictest confidence the circumstances of your separation from the
Company and the provisions of this Release Certificate, and not to publicize or disclose such
information in any manner whatsoever; provided, however, that you may disclose this Agreement to
your immediate family, your attorney and tax advisors, or as otherwise required by law. You also
agree not to, either by yourself or indirectly through others, disparage, defame, otherwise speak
negatively about the Company or any of the Released Parties in any manner, or take or cause to be
taken any other action that is, likely to be harmful to them or their business, business reputation
or personal reputation in any way, provided that you shall respond accurately and fully to any
question, inquiry or request for information when instructed by the Company or otherwise required
by legal process.

9. The parties agree that this Release Certificate and the Agreement contain all of our
agreements and understandings with respect to their subject matter, and may not be contradicted by
evidence of any prior or contemporaneous agreement, except to the extent that the provisions of any
such agreement have been expressly referred to in this Release Certificate or the Agreement as
having continued effect. It is agreed that this Release Certificate shall be governed by the laws
of the State of New York. If any provision of this Release Certificate or its application to any
person, place, or circumstance is held by a court of competent jurisdiction to be invalid,
unenforceable, or void, the remainder of this Release Certificate and such provision as applied to
other person,
places, and circumstances will remain in full force and effect.

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 25 of 29

 

 

 

Please note that this Release Certificate may not be signed before the last day of your
employment with the Company, and that your eligibility for severance benefits is conditioned upon
meeting the terms set forth in the Agreement. By you signature below, you acknowledge that (a) you
have read this Release Certificate or have been afforded every opportunity to do so; (b) you are
fully aware of this Release Certificate’s contents and legal effect; (c) you have had an
opportunity to consult with an attorney of your choosing prior to signing this Release Certificate;
and (d) you have chosen to sign this Release Certificate freely, without coercion, and based upon
your own judgment and not in reliance upon any promises made by the Company other than those
contained in this Release Certificate.

	 	 	 
	 

	 	Date:                     
                    
	 
	 	 
	[Employee]
	 	 
	 

	 	Date:                     
                    
	 
	 	 
	[Company Signatory]
	 	 

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 26 of 29

 

 

 

Exhibit 1

[Property to be returned]

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 27 of 29

 

 

 

Exhibit 2

[Confidentiality Agreement]

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 28 of 29

 

 

 

Exhibit 3

[Non-compete agreement]

					
	 	 	 	 	 
	Confidential
	 	Copyright © 2004 Linktone Ltd.
	 	Page 29 of 29

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