Document:

exv10w1

Exhibit 10.1

PROFIT STAR LIMITED 

2010 SHARE INCENTIVE PLAN

ARTICLE 1.

PURPOSE

     The purpose of the Profit Star Limited 2010 Share Incentive Plan (the “Plan”) is to
promote the success and enhance the value of Profit Star Limited (the “Company”) by linking
the personal interests of the selected members of the Board, Employees, and Consultants to those of
Company shareholders and by providing such individuals with an incentive for outstanding
performance to generate superior returns to Company shareholders. The Plan is further intended to
provide flexibility to the Company in its ability to motivate, attract, and retain the services of
members of the Board, Employees, and Consultants upon whose judgment, interest, and special effort
the successful conduct of the Company’s operation is largely dependent.

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION

     Wherever the following terms are used in the Plan they shall have the meanings specified
below, unless the context clearly indicates otherwise. The singular pronoun shall include the
plural where the context so indicates.

     2.1 “Administrator” shall mean the entity that conducts the general administration of
the Plan as provided in Article 10. With reference to the duties of the Committee under the Plan
which have been delegated to one or more persons pursuant to Section 12.6, or as to which the
Board has assumed, the term “Administrator” shall refer to such person(s) unless the Committee or
the Board has revoked such delegation or the Board has terminated the assumption of such duties.

     2.2 “Applicable Accounting Standards” shall mean International Financial Reporting
Standards, Generally Accepted Accounting Principles in the United States, or such other accounting
principles or standards as may apply to the Company’s financial statements under Applicable Law.

     2.3 “Applicable Laws” means (i) the laws of the Cayman Islands as they relate to the
Company and its Shares; (ii) the legal requirements relating to the Plan and the Awards under
applicable provisions of the corporate, securities, tax and other laws, rules, regulations and
government orders of any jurisdiction applicable to Awards granted to residents; and (iii) the
rules of any applicable securities exchange, national market system or automated quotation system
on which the Shares are listed, quoted or traded.

     2.4 “Article” means an article of this Plan.

 

 

     2.5 “Award” shall mean an Option, a Restricted Share award, a Restricted Share Unit
award, a Dividend Equivalents award, a Deferred Share award, a Share Payment award or a Share
Appreciation Right, which may be awarded or granted under the Plan (collectively,
“Awards”).

     2.6 “Award Agreement” shall mean any written notice, agreement, terms and conditions,
contract or other instrument or document evidencing an Award, including through electronic medium,
which shall contain such terms and conditions with respect to an Award as the Administrator shall
determine consistent with the Plan.

     2.7 “Board” shall mean the Board of Directors of the Company.

     2.8 “Code” shall mean the United States Internal Revenue Code of 1986, as amended
from time to time.

     2.9 “Committee” shall mean the Compensation Committee of the Board, or another
committee or subcommittee of the Board, appointed as provided in Section 10.1.

     2.10 “Company” shall mean Profit Star Limited, a Cayman Islands corporation.

     2.11 “Consultant” means any consultant or adviser if: (a) the consultant or adviser
renders bona fide services to a Service Recipient; (b) the services rendered by the consultant or
adviser are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for the Company’s
securities; and (c) the consultant or adviser is a natural person who has contracted directly with
the Service Recipient to render such services.

     2.12 “Corporate Transaction” means any of the following transactions, provided,
however, that the Committee shall determine under (f) and (g) whether multiple transactions are
related, and its determination shall be final, binding and conclusive:

          (a) an amalgamation, arrangement, consolidation or scheme of arrangement in which the Company
is not the surviving entity, except for a transaction the principal purpose of which is to change
the jurisdiction in which the Company is incorporated or which following such transaction the
holders of the Company’s voting securities immediately prior to such transaction own fifty percent
(50%) or more of the surviving entity;

          (b) 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 under 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 Incumbent Board (as defined below) who are not
affiliates or associates of the offeror under Rule 12b-2 promulgated under the Exchange Act do not
recommend such shareholders accept, or

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          (c) the individuals who, as of the Effective Date, are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least fifty percent (50%) of the Board; provided
that if the election, or nomination for election by the Company’s shareholders, of any new member
of the Board is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new
member of the Board shall be considered as a member of the Incumbent Board.

          (d) the sale, transfer or other disposition of all or substantially all of the assets of the
Company;

          (e) the completion of a voluntary or insolvent liquidation or dissolution of the Company;

          (f) any reverse takeover, scheme of arrangement, or series of related transactions culminating
in a reverse takeover or scheme of arrangement (including, but not limited to, a tender offer
followed by a reverse takeover) in which the Company survives but (A) the Shares of the Company
outstanding immediately prior to such transaction are converted or exchanged by virtue of the
transaction 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 transaction culminating in such takeover or scheme
of arrangement, but excluding any such transaction or series of related transactions that the
Committee determines shall not be a Corporate Transaction; or

          (g) 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 under 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 Committee determines
shall not be a Corporate Transaction.

     2.13 “Deferred Share” shall mean a right to receive Shares awarded under Section 7.3.

     2.14 “Director” shall mean a member of the Board, as constituted from time to time.

     2.15 “Dividend Equivalent” shall mean a right to receive the equivalent value (in
cash or Shares) of dividends paid on Shares, awarded under Section 7.1.

     2.16 “Effective Date” shall have the meaning set forth in Section 11.1.

     2.17 “Eligible Individual” shall mean any person who is an Employee, a Consultant or
a Non-Employee Director, as determined by the Committee or the Board resolution of the Company
(including the affirmative vote of the director appointed by the holders of Series A Preferred
Shares of the Company to the extent any Series A Preferred Shares are issued and outstanding).

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     2.18 “Employee” means any person who is in the employ of a Service Recipient, subject
to the control and direction of the Service Recipient as to both the work to be performed and the
manner and method of performance. The payment of a director’s fee by a Service Recipient shall
not be sufficient to constitute “employment” by the Service Recipient.

     2.19 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from
time to time.

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

          (a) If the Shares are listed on one or more established and regulated securities exchanges,
national market systems or automated quotation system on which Shares are listed, quoted or traded,
its Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no
sales were reported) as quoted on the principal exchange or system on which the Shares are listed
(as determined by the Committee) on the date of determination (or, if no closing sales price or
closing bid was reported on that date, as applicable, on the last trading date such closing sales
price or closing bid was reported), as reported in The Wall Street Journal or such other source as
the Committee deems reliable;

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

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

     2.21 “Holder” shall mean a person who has been granted an Award.

     2.22 “Incentive Option” shall mean an Option that is intended to meet the applicable
provisions of Section 422 of the Code.

     2.23 “Non-Employee Director” shall mean a Director of the Company who is not an
Employee.

     2.24 “Non-Qualified Option” shall mean an Option that is not an Incentive Option.

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     2.25 “Option” shall mean a right to purchase shares of Shares at a specified exercise
price, granted under Article 5. An Option shall be either a Non-Qualified Option or an Incentive
Option; provided, however, that Options granted to Non-Employee Directors and
Consultants shall only be Non-Qualified Options.

     2.26 “Parent” means a parent corporation under Section 424(e) of the Code.

     2.27 “Plan” shall mean this Profit Star Limited 2010 Share Incentive Plan, as it may
be amended or restated from time to time.

     2.28 “Related Entity” means any business, corporation, partnership, limited liability
company or other entity in which the Company, a Parent or Subsidiary of the Company holds a
substantial ownership interest, directly or indirectly but which is not a Subsidiary and which the
Board designates as a Related Entity for purposes of the Plan.

     2.29 “Restricted Share” shall mean Shares awarded under Article 6 that is subject to
certain restrictions and may be subject to risk of forfeiture or repurchase.

     2.30 “Restricted Share Units” shall mean the right to receive Shares awarded under
Section 9.5.

     2.31 “Securities Act” shall mean the Securities Act of 1933, as amended.

     2.32 “Series A Preferred Shares” means any and all of the Company’s series A
preferred shares, par value US$0.01 per share, with the rights and privileges as set forth in the
amended and restated memorandum of association and the articles of association of the Company.

     2.33 “Service Recipient” means the Company, any Parent or Subsidiary of the Company
and any Related Entity to which a Holder provides services as an Employee, Consultant or as a
Director.

     2.34 “Share” means an ordinary share (common share) of the Company, and such other
securities of the Company that may be substituted for Shares pursuant to Article 12.

     2.35 “Share Appreciation Right” shall mean a share appreciation right granted under
Article 8.

     2.36 “Share Payment” shall mean (a) a payment in the form of Shares, or (b) an option
or other right to purchase Shares, as part of a bonus, deferred compensation or other arrangement,
awarded under Section 7.2.

     2.37 “Subsidiary” means any entity (other than the Company), whether domestic or
foreign, in an unbroken chain of entities beginning with the Company if each of the entities other
than the last entity in the unbroken chain beneficially owns, directly or indirectly, at the time
of the determination, securities or interests representing more than fifty percent (50%) of the
total combined voting power of all classes of securities or interests in one of the other entities
in such chain.

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     2.38 “Substitute Award” shall mean an Award granted under the Plan upon the
assumption of, or in substitution for, outstanding equity awards previously granted by a company
or other entity in connection with a corporate transaction, such as a merger, combination,
consolidation or acquisition of property or securities; provided, however, that in
no event shall the term “Substitute Award” be construed to refer to an award made in connection
with the cancellation and repricing of an Option or Share Appreciation Right.

     2.39 “Termination of Service” shall mean,

          (a) As to a Consultant, the time when the engagement of a Holder as a Consultant to a Service
Recipient is terminated for any reason, with or without cause, including, without limitation, by
resignation, discharge, death or retirement, but excluding terminations where the Consultant
simultaneously commences or remains in employment or service with the Company, any Subsidiary or
any Related Entity.

          (b) As to a Non-Employee Director, the time when a Holder who is a Non-Employee Director
ceases to be a Director for any reason, including, without limitation, a termination by
resignation, failure to be elected, death or retirement, but excluding terminations where the
Holder simultaneously commences or remains in employment or service with the Company, any
Subsidiary or any Related Entity.

          (c) As to an Employee, the time when the employee-employer relationship between a Holder and
the Company or any Subsidiary is terminated for any reason, including, without limitation, a
termination by resignation, discharge, death, disability or retirement; but excluding terminations
where the Holder simultaneously commences or remains in employment or service with the Company, any
Subsidiary or any Related Entity; provided, however, that.

     The Administrator, in its sole discretion, shall determine the effect of all matters and
questions relating to Terminations of Service, including, without limitation, the question of
whether a Termination of Service resulted from a discharge for cause and all questions of whether
particular leaves of absence constitute a Termination of Service; provided,
however, that, with respect to Incentive Options, unless the Administrator otherwise
provides in the terms of the Award Agreement or otherwise, a leave of absence, change in status
from an employee to an independent contractor or other change in the employee-employer relationship
shall constitute a Termination of Service only if, and to the extent that, such leave of absence,
change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the
Code and the then applicable regulations and revenue rulings under said Section. For purposes of
the Plan, a Holder’s employee-employer relationship or consultancy relations shall be deemed to be
terminated in the event that the Subsidiary employing or contracting with such Holder ceases to
remain a Subsidiary following any merger, sale of securities or other corporate transaction or
event (including, without limitation, a spin-off).

     2.40 “Trading Date” means the closing of the first sale to the general public of the
Shares pursuant to an effective registration statement under Applicable Law, which results in the
Shares being publicly traded on one or more established stock exchanges or national market
systems.

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ARTICLE 3.

SHARES SUBJECT TO THE PLAN

     3.1 Number of Shares.

          (a) Subject to Section 3.1(b) the aggregate number of Shares which may be issued or
transferred pursuant to Awards under the Plan is 75,000, an annual increase to be added on the
first business day of each calendar year beginning in 2011 equal to the lesser of (x) one percent
(1%) of the number of Shares outstanding as of such date, or (y) a lesser number of Shares
determined by the Committee; provided, however, that no more than 75,000 shares may be issued upon
the exercise of Incentive Options.

          (b) To the extent that an Award terminates, expires, or lapses for any reason, or is settled
in cash and not Shares, then any Shares subject to the Award shall again be available for the grant
of an Award pursuant to the Plan. Shares delivered by the Holder or withheld by the Company upon
the exercise of any Award under the Plan, in payment of the exercise price thereof or tax
withholding thereon, may again be optioned, granted or awarded hereunder, subject to the
limitations of Section 3.1(a). If any Shares forfeited by the Holder or repurchased by the Company
at the same or lesser price than paid by the Holder so that the Shares are again returned to the
Company, may again be optioned, granted or awarded hereunder, subject to the limitations of Section
3.1(a). To the extent permitted by applicable law or any exchange rule, Shares issued in
assumption of, or in substitution for, any outstanding awards of any entity acquired in any form of
combination by the Company, any Parent or any Subsidiary shall not be counted against Shares
available for grant pursuant to the Plan. The payment of Dividend Equivalents in cash in
conjunction with any outstanding Awards shall not be counted against the Shares available for
issuance under the Plan. Notwithstanding the provisions of this Section 3.1(b), no Shares may
again be optioned, granted or awarded if such action would cause an Incentive Option to fail to
qualify as an incentive stock option under Section 422 of the Code.

     3.2 Share Distributed. Any Shares distributed pursuant to an Award may consist, in
whole or in part, of authorized and unissued Shares, treasury Shares (subject to Applicable Laws)
or Shares purchased on the open market. Additionally, in the discretion of the Committee,
American Depository Shares in an amount equal to the number of Shares which otherwise would be
distributed pursuant to an Award may be distributed in lieu of Shares in settlement of any Award.
If the number of Shares represented by an American Depository Share is other than on a one-to-one
basis, the limitations of Section 3.1 shall be adjusted to reflect the distribution of American
Depository Shares in lieu of Shares.

ARTICLE 4.

GRANTING OF AWARDS

     4.1 Participation. The Administrator may, from time to time, select from among all
Eligible Individuals, those to whom an Award shall be granted and shall determine the nature

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and amount of each Award, which shall not be inconsistent with the requirements of the Plan.
No Eligible Individual shall have any right to be granted an Award pursuant to the Plan.

     4.2 Award Agreement. Each Award shall be evidenced by an Award Agreement.

     4.3 Jurisdictions. Notwithstanding any provision of the Plan to the contrary, in
order to comply with the laws in the jurisdictions in which the Service Recipients operate or have
Employees, Non-Employee Directors or Consultants, or in order to comply with the requirements of
any securities exchange, the Administrator, in its sole discretion, shall have the power and
authority to: (a) determine which Subsidiaries and Related Entities shall be covered by the Plan;
(b) determine which Eligible Individuals are eligible to participate in the Plan; (c) modify the
terms and conditions of any Award granted to Eligible Individuals to comply with Applicable Laws
or listing requirements of any securities exchange; (d) establish subplans and modify exercise
procedures and other terms and procedures, to the extent such actions may be necessary or
advisable (any such subplans and/or modifications shall be attached to the Plan as appendices);
provided, however, that no such subplans and/or modifications shall increase the
share limitations contained in Sections 3.1; and (e) take any action, before or after an Award is
made, that it deems advisable to obtain approval or comply with any necessary local governmental
regulatory exemptions or approvals or listing requirements of any such securities exchange.
Notwithstanding the foregoing, the Administrator may not take any actions hereunder, and no Awards
shall be granted, that would violate the any Applicable Laws.

     4.4 Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan may, in the
sole discretion of the Administrator, be granted either alone, in addition to, or in tandem with,
any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with
other Awards may be granted either at the same time as or at a different time from the grant of
such other Awards.

ARTICLE 5.

OPTIONS

     5.1 General. The Committee is authorized to grant Options to Eligible Individuals on
the following terms and conditions:

          (a) Exercise Price. The exercise price per Share subject to an Option shall be
determined by the Administrator and set forth in the Award Agreement which may be a fixed or
variable price related to the Fair Market Value of the Shares; provided, however, that (i) such
exercise price per Share shall no less than US$14 unless otherwise agreed by the Board of the
Company, including the affirmative vote of the director appointed by the holders of the Series A
Preferred Shares to the extent any Series A Preferred Shares are issued and outstanding, and
(ii).no Option may be granted to an individual subject to taxation in the United States at less
than the Fair Market Value on the date of grant, without compliance with Section 409A of the Code,
or the Holder’s consent. The exercise price per Share subject to an Option may be amended or
adjusted in the absolute discretion of the Administrator, the determination of which shall be
final, binding and conclusive. For the avoidance of doubt, to the extent not prohibited by
Applicable Laws (including any applicable exchange rule), a downward adjustment of the exercise
prices of

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Options mentioned in the preceding sentence shall be effective without the approval of the
Company’s shareholders or the approval of the affected Holders.

          (b) Vesting. The period during which the right to exercise, in whole or in part, an
Option vests in the Holder shall be set by the Administrator and the Administrator may determine
that an Option may not be exercised in whole or in part for a specified period after it is granted.
Such vesting may be based on service with the Service Recipient or any other criteria selected by
the Administrator. At any time after grant of an Option, the Administrator may, in its sole
discretion and subject to whatever terms and conditions it selects, accelerate the period during
which an Option vests. No portion of an Option which is unexercisable at a Holder’s Termination of
Service shall thereafter become exercisable, except as may be otherwise provided by the
Administrator either in the Award Agreement or by action of the Administrator following the grant
of the Option.

          (c) Time and Conditions of Exercise. The Administrator shall determine the time or
times at which an Option may be exercised in whole or in part, including exercise prior to vesting
and that a partial exercise must be with respect to a minimum number of shares. The Administrator
shall also determine any conditions, if any, that must be satisfied before all or part of an Option
may be exercised.

          (d) Partial Exercise. An exercisable Option may be exercised in whole or in part.
However, an Option shall not be exercisable with respect to fractional shares and the Administrator
may require that, by the terms of the Option, a partial exercise must be with respect to a minimum
number of shares.

          (e) Manner of Exercise. All or a portion of an exercisable Option shall be deemed
exercised upon delivery of all of the following to the Secretary of the Company, or such other
person or entity designated by the Administrator, or his, her or its office, as applicable:

               (i) A written or electronic notice complying with the applicable rules established by the
Administrator stating that the Option, or a portion thereof, is exercised. The notice shall be
signed by the Holder or other person then entitled to exercise the Option or such portion of the
Option;

               (ii) Such representations and documents as the Administrator, in its sole discretion, deems
necessary or advisable to effect compliance with all Applicable Laws or regulations, and the rules
of any securities exchange or automated quotation system on which the Shares are listed, quoted or
traded. The Administrator may, in its sole discretion, also take whatever additional actions it
deems appropriate to effect such compliance including, without limitation, placing legends on share
certificates and issuing stop-transfer notices to agents and registrars;

               (iii) In the event that the Option shall be exercised pursuant to Section 9.3 by any person or
persons other than the Holder, appropriate proof of the right of such person or persons to exercise
the Option, as determined in the sole discretion of the Administrator; and

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               (iv) Full payment of the exercise price and applicable withholding taxes to share
administrator of the Company for the Shares with respect to which the Option, or portion thereof,
is exercised, in a manner permitted by Section 9.1 and 9.2.

          (f) Term. The term of any Option granted under the Plan shall not exceed ten years,
except as provided in Section 9.1. Except as limited by the requirements of Section 409A or
Section 422 of the Code and regulations and rulings thereunder, the Administrator may extend the
term of any outstanding Option, and may extend the time period during which vested Options may be
exercised, in connection with any Termination of Service of the Holder, and may amend any other
term or condition of such Option relating to such a Termination of Service.

          (g) Evidence of Grant. All Options shall be evidenced by an Award Agreement between
the Company and the Holder. The Award Agreement shall include such additional provisions as may be
specified by the Committee.

     5.2 Incentive Options. Incentive Options may be granted to Employees of the Company,
a Parent or Subsidiary of the Company. Incentive Options may not be granted to Employees of a
Related Entity or to Non-Employee Directors or Consultants. The terms of any Incentive Options
granted pursuant to the Plan, in addition to the requirements of Section 5.1, must comply with the
following additional provisions of this Section 5.2:

          (a) Expiration of Option. An Incentive Option may not be exercised to any extent by
anyone after the first to occur of the following events:

               (i) Ten years from the date it is granted, unless an earlier time is set in the Award
Agreement;

               (ii) Three months after the Holder’s Termination of Service as an Employee (save in the case
of termination on account of Disability or death); and

               (iii) Two years after the date of the Holder’s Termination of Service on account of Disability
or death. Upon the Holder’s Disability or death, any Incentive Options exercisable at the Holder’s
Disability or death may be exercised by the Holder’s legal representative or representatives, by
the person or persons entitled to do so pursuant to the Holder’s last will and testament, or, if
the Holder fails to make testamentary disposition of such Incentive Option or dies intestate, by
the person or persons entitled to receive the Incentive Option pursuant to the applicable laws of
descent and distribution as determined under Applicable Law.

          (b) Individual Dollar Limitation. The aggregate Fair Market Value (determined as of
the time the Option is granted) of all Shares with respect to which Incentive Options are first
exercisable by a Holder in any calendar year may not exceed U.S. $100,000 or such other limitation
as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive
Options are first exercisable by a Holder in excess of such limitation, the excess shall be
considered Non-Qualified Options.

          (c) Ten Percent Owners. An Incentive Option shall be granted to any individual who,
at the date of grant, owns Shares possessing more than ten percent of the total

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combined voting power of all classes of shares of the Company only if such Option is granted
at a price that is not less than 110% of Fair Market Value on the date of grant and the Option is
exercisable for no more than five years from the date of grant.

          (d) Transfer Restriction. The Holder shall give the Company prompt notice of any
disposition of Shares acquired by exercise of an Incentive Option within (i) two years from the
date of grant of such Incentive Option or (ii) one year after the transfer of such Shares to the
Holder.

          (e) Expiration of Incentive Options. No Award of an Incentive Option may be made
pursuant to this Plan after the tenth anniversary of the Effective Date.

          (f) Right to Exercise. During a Holder’s lifetime, an Incentive Option may be
exercised only by the Holder.

     5.3 Substitute Awards. Notwithstanding the foregoing provisions of this Article 5 to
the contrary, in the case of an Option that is a Substitute Award, the price per share of the
shares subject to such Option may be less than the Fair Market Value per share on the date of
grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date
such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the
aggregate exercise price thereof does not exceed the excess of: (x) the aggregate fair market
value (as of the time immediately preceding the transaction giving rise to the Substitute Award,
such fair market value to be determined by the Administrator) of the shares of the predecessor
entity that were subject to the grant assumed or substituted for by the Company, over (y) the
aggregate exercise price of such shares.

     5.4 Substitution of Share Appreciation Rights. The Administrator may provide in the
Award Agreement evidencing the grant of an Option that the Administrator, in its sole discretion,
shall have the right to substitute a Share Appreciation Right for such Option at any time prior to
or upon exercise of such Option; provided, that such Share Appreciation Right shall be
exercisable with respect to the same number of shares of Shares for which such substituted Option
would have been exercisable.

ARTICLE 6.

AWARD OF RESTRICTED STOCK

     6.1 Award of Restricted Share.

          (a) The Administrator is authorized to grant Restricted Share to Eligible Individuals, and
shall determine the amount of, and the terms and conditions, including the restrictions applicable
to each award of Restricted Share, which terms and conditions shall not be inconsistent with the
Plan, and may impose such conditions on the issuance of such Restricted Share as it deems
appropriate.

          (b) The Administrator shall establish the purchase price, if any, and form of payment for
Restricted Share; provided, however, that such purchase price shall be no less than

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the par value of the Shares to be purchased, unless otherwise permitted by Applicable Law. In
all cases, legal consideration shall be required for each issuance of Restricted Share.

     6.2 Rights as Shareholders. Subject to Section 6.4, upon issuance of Restricted
Share, the Holder shall have, unless otherwise provided by the Administrator, all the rights of a
shareholder with respect to said shares, subject to the restrictions in his or her Award
Agreement, including the right to receive all dividends and other distributions paid or made with
respect to the shares; provided, however, that, in the sole discretion of the
Administrator, any extraordinary distributions with respect to the Shares shall be subject to the
restrictions set forth in Section 6.3.

     6.3 Restrictions. All shares of Restricted Share (including any shares received by
Holders thereof with respect to shares of Restricted Share as a result of share dividends, share
splits or any other form of recapitalization) shall, in the terms of each individual Award
Agreement, be subject to such restrictions and vesting requirements as the Administrator shall
provide. Such restrictions may include, without limitation, restrictions concerning voting rights
and transferability and such restrictions may lapse separately or in combination at such times and
pursuant to such circumstances or based on such criteria as selected by the Administrator,
including, without limitation, criteria based on the Holder’s duration of employment, directorship
or consultancy with the Service Recipient, or other criteria selected by the Administrator. By
action taken after the Restricted Share is issued, the Administrator may, on such terms and
conditions as it may determine to be appropriate, accelerate the vesting of such Restricted Share
by removing any or all of the restrictions imposed by the terms of the Award Agreement.
Restricted Share may not be sold or encumbered until all restrictions are terminated or expire.

     6.4 Repurchase or Forfeiture of Restricted Share. If no price was paid by the Holder
for the Restricted Share, upon a Termination of Service the Holder’s rights in unvested Restricted
Share then subject to restrictions shall lapse, and such Restricted Share shall be surrendered to
the Company and cancelled without consideration. If a purchase price was paid by the Holder for
the Restricted Share, upon a Termination of Service the Company shall have the right to repurchase
from the Holder the unvested Restricted Share then subject to restrictions at a cash price per
share equal to the price paid by the Holder for such Restricted Share or such other amount as may
be specified in the Award Agreement The Administrator in its sole discretion may provide that in
the event of certain events the Holder’s rights in unvested Restricted Share shall not lapse, such
Restricted Share shall vest and shall be non-forfeitable, and if applicable, the Company shall not
have a right of repurchase.

     6.5 Certificates for Restricted Share. Restricted Share granted pursuant to the Plan
may be evidenced in such manner as the Administrator shall determine. Certificates or book
entries evidencing shares of Restricted Share must include an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted Share, and the Company may, in
it sole discretion, retain physical possession of any share certificate until such time as all
applicable restrictions lapse.

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ARTICLE 7.

AWARD OF DIVIDEND EQUIVALENTS, DEFERRED STOCK, STOCK PAYMENTS, 
RESTRICTED STOCK UNITS

     7.1 Dividend Equivalents.

          (a) Dividend Equivalents may be granted by the Administrator based on dividends declared on
the Shares, to be credited as of dividend payment dates during the period between the date an Award
is granted to a Holder and the date such Award vests, is exercised, is distributed or expires, as
determined by the Administrator. Such Dividend Equivalents shall be converted to cash or
additional shares of Shares by such formula and at such time and subject to such limitations as may
be determined by the Administrator.

     7.2 Share Payments. The Administrator is authorized to make Share Payments to any
Eligible Individual. The number or value of shares of any Share Payment shall be determined by
the Administrator and may be based upon any other criteria, including service to the Service
Recipients, determined by the Administrator. Share Payments may, but are not required to be made
in lieu of base salary, bonus, fees or other cash compensation otherwise payable to such Eligible
Individual.

     7.3 Deferred Share. The Administrator is authorized to grant Deferred Share to any
Eligible Individual. The number of shares of Deferred Share shall be determined by the
Administrator and may be based on any specific criteria, including service to the Service
Recipients, as the Administrator determines, in each case on a specified date or dates or over any
period or periods determined by the Administrator. Shares underlying a Deferred Share award will
not be issued until the Deferred Share award has vested, pursuant to a vesting schedule or other
conditions or criteria set by the Administrator. Unless otherwise provided by the Administrator,
a Holder of Deferred Share shall have no rights as a Company shareholder with respect to such
Deferred Share until such time as the Award has vested and the Shares underlying the Award has
been issued to the Holder.

     7.4 Restricted Share Units. The Administrator is authorized to grant Restricted
Share Units to any Eligible Individual. The number and terms and conditions of Restricted Share
Units shall be determined by the Administrator. The Administrator shall specify the date or dates
on which the Restricted Share Units shall become fully vested and nonforfeitable, and may specify
such conditions to vesting as it deems appropriate, including service to the Service Recipients,
in each case on a specified date or dates or over any period or periods, as the Administrator
determines,. The Administrator shall specify, or permit the Holder to elect, the conditions and
dates upon which the shares of Shares underlying the Restricted Share Units which shall be issued,
which dates shall not be earlier than the date as of which the Restricted Share Units vest and
become nonforfeitable and which conditions and dates shall be subject to compliance with Section
409A of the Code, to the extent applicable to the Holder. Restricted Share Units may be paid in
cash, Shares or both, as Determined by the Administrator. On the distribution dates, the Company
shall issue to the Holder one unrestricted, fully transferable Shares (or the Fair Market Value of
one such Share in cash) for each vested and nonforfeitable Restricted Share Unit.

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     7.5 Term. The term of a Dividend Equivalent award, Deferred Share award, Share
Payment award and/or Restricted Share Unit award shall be set by the Administrator in its sole
discretion.

     7.6 Exercise or Purchase Price. The Administrator may establish the exercise or
purchase price of shares of Deferred Share, shares distributed as a Share Payment award or shares
distributed pursuant to a Restricted Share Unit award; provided, however, that
value of the consideration shall not be less than the par value of a share of Shares, unless
otherwise permitted by Applicable Law.

     7.7 Exercise upon Termination of Service. A Dividend Equivalent award, Deferred
Share award, Share Payment award and/or Restricted Share Unit award is exercisable or
distributable only while the Holder is an Employee, Director or Consultant, as applicable. The
Administrator, however, in its sole discretion may provide that the Dividend Equivalent award,
Deferred Share award, Share Payment award and/or Restricted Share Unit award may be exercised or
distributed subsequent to a Termination of Service in certain events.

ARTICLE 8.

AWARD OF STOCK APPRECIATION RIGHTS

     8.1 Grant of Share Appreciation Rights.

          (a) The Administrator is authorized to grant Share Appreciation Rights to Eligible Individuals
from time to time, in its sole discretion, on such terms and conditions as it may determine
consistent with the Plan.

          (b) A Share Appreciation Right shall entitle the Holder (or other person entitled to exercise
the Share Appreciation Right pursuant to the Plan) to exercise all or a specified portion of the
Share Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive from
the Company an amount determined by multiplying the difference obtained by subtracting the exercise
price per share of the Share Appreciation Right from the Share Value on the date of exercise of the
Share Appreciation Right by the number of shares of Shares with respect to which the Share
Appreciation Right shall have been exercised, subject to any limitations the Administrator may
impose.

          (c) The exercise price per Share subject to an Share Appreciation Right shall be determined by
the Administrator and set forth in the Award Agreement which may be a fixed or variable price
related to the Fair Market Value of the Shares; provided, however, that no Share Appreciation Right
may be granted to an individual subject to taxation in the United States at less than the Fair
Market Value on the date of grant, without compliance with Section 409A of the Code, or the
Holder’s consent. The exercise price per Share subject to a Share Appreciation Right may be
amended or adjusted in the absolute discretion of the Administrator, the determination of which
shall be final, binding and conclusive. For the avoidance of doubt, to the extent not prohibited
by Applicable Laws (including any applicable securities exchange rule), a downward adjustment of
the exercise prices of Share Appreciation Rights mentioned in the
preceding sentence shall be effective without the approval of the Company’s shareholders or
the approval of the affected Holders.

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          (d) In the case of an Share Appreciation Right that is a Substitute Award, the price per share
of the shares subject to such Share Appreciation Right may be less than the Fair Market Value per
share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market
Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute
Award, over (b) the aggregate exercise price thereof does not exceed the excess of: (x) the
aggregate fair market value (as of the time immediately preceding the transaction giving rise to
the Substitute Award, such fair market value to be determined by the Administrator) of the shares
of the predecessor entity that were subject to the grant assumed or substituted for by the Company,
over (y) the aggregate exercise price of such shares.

     8.2 Share Appreciation Right Vesting.

          (a) The period during which the right to exercise, in whole or in part, a Share Appreciation
Right vests in the Holder shall be set by the Administrator and the Administrator may determine
that a Share Appreciation Right may not be exercised in whole or in part for a specified period
after it is granted. Such vesting may be based on service with the Service Recipients, or any
other criteria selected by the Administrator. At any time after grant of a Share Appreciation
Right, the Administrator may, in its sole discretion and subject to whatever terms and conditions
it selects, accelerate the period during which a Share Appreciation Right vests.

          (b) No portion of a Share Appreciation Right which is unexercisable at Termination of Service
shall thereafter become exercisable, except as may be otherwise provided by the Administrator
either in the Award Agreement or by action of the Administrator following the grant of the Share
Appreciation Right.

     8.3 Manner of Exercise. All or a portion of an exercisable Share Appreciation Right
shall be deemed exercised upon delivery of all of the following to the share administrator of the
Company, or such other person or entity designated by the Administrator, or his, her or its
office, as applicable:

          (a) A written or electronic notice complying with the applicable rules established by the
Administrator stating that the Share Appreciation Right, or a portion thereof, is exercised. The
notice shall be signed by the Holder or other person then entitled to exercise the Share
Appreciation Right or such portion of the Share Appreciation Right;

          (b) Such representations and documents as the Administrator, in its sole discretion, deems
necessary or advisable to effect compliance with all applicable provisions of the Securities Act
and any other federal, state or foreign securities laws or regulations. The Administrator may, in
its sole discretion, also take whatever additional actions it deems appropriate to effect such
compliance; and

          (c) In the event that the Share Appreciation Right shall be exercised pursuant to this Section
10.3 by any person or persons other than the Holder, appropriate proof of the right
of such person or persons to exercise the Share Appreciation Right, in the sole discretion of
the Administrator.

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     8.4 Payment. Amounts payable upon exercise of a Share Appreciation Right shall
be in cash, Shares (based on its Fair Market Value as of the date the Share Appreciation Right is
exercised), or a combination of both, as determined by the Administrator.

ARTICLE 9.

ADDITIONAL TERMS OF AWARDS

     9.1 Payment. The Administrator shall determine the methods by which payments by any
Holder with respect to any Awards granted under the Plan shall be made, including, without
limitation: (a) cash or check, (b) Shares (including, in the case of payment of the exercise price
of an Award, Shares issuable pursuant to the exercise of the Award) or Shares held for such period
of time as may be required by the Administrator in order to avoid adverse accounting consequences
under Applicable Accounting Standards, in each case, having a Fair Market Value on the date of
delivery equal to the aggregate payments required, (c) following the Trading Date, delivery of a
notice that the Holder has placed a market sell order with a broker with respect to Shares then
issuable upon exercise or vesting of an Award, and that the broker has been directed to pay a
sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate
payments required, provided, that payment of such proceeds is then made to the Company upon
settlement of such sale, or (d) other form of legal consideration acceptable to the Administrator.
The Administrator shall also determine the methods by which Shares shall be delivered or deemed
to be delivered to Holders. Notwithstanding any other provision of the Plan to the contrary, no
Holder shall be permitted to make payment with respect to any Awards granted under the Plan to the
extent prohibited by Applicable Law.

     9.2 Tax Withholding. No Shares shall be delivered under the Plan to any Holder until
such Holder has made arrangements acceptable to the Administrator for the satisfaction of any
income, employment, social welfare or other tax withholding obligations under Applicable Laws.
The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or
require a Holder to remit to the Company, an amount sufficient to satisfy federal, state, local
and foreign taxes (including the Holder’s employment, social welfare or other tax obligations)
required by Applicable Laws to be withheld with respect to any taxable event concerning a Holder
arising as a result of the Plan. The Administrator may in its sole discretion and in satisfaction
of the foregoing requirement allow a Holder to elect to have the Company withhold Shares otherwise
issuable under an Award (or allow the surrender of Shares). The number of Shares which may be so
withheld or surrendered shall be limited to the number of Shares which have a Fair Market Value on
the date of withholding or repurchase equal to the aggregate amount of such liabilities based on
the minimum statutory withholding rates for tax purposes that are applicable to such taxable
income. The Administrator shall determine the Fair Market Value of the Shares, consistent with
Applicable Law, for tax withholding obligations due in connection with a broker-assisted cashless
Option or Share Appreciation Right exercise involving the sale of shares to pay the Option or
Share Appreciation Right exercise price or any tax withholding obligation.

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     9.3 Transferability of Awards.

     (a) Except as otherwise provided in Section 9.3(b):

                    (i) No Award under the Plan may be sold, pledged, assigned or transferred in any manner other
than by will or the laws of descent and distribution or, subject to the consent of the
Administrator, as required under applicable domestic relations laws, unless and until such Award
has been exercised, or the shares underlying such Award have been issued, and all restrictions
applicable to such shares have lapsed;

                    (ii) No Award or interest or right therein shall be liable for the debts, contracts or
engagements of the Holder or his successors in interest or shall be subject to disposition by
transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect, except to the extent
that such disposition is permitted by the preceding sentence; and

                    (iii) During the lifetime of the Holder, only the Holder may exercise an Award (or any portion
thereof) granted to him under the Plan, unless it has been disposed of pursuant to applicable
domestic relations law; after the death of the Holder, any exercisable portion of an Award may,
prior to the time when such portion becomes unexercisable under the Plan or the applicable Award
Agreement, be exercised by his personal representative or by any person empowered to do so under
the deceased Holder’s will or under the then Applicable Laws of descent and distribution.

               (b) Notwithstanding Section 9.3(a), the Administrator, in its sole discretion, may determine
to permit a Holder to transfer an Award other than an Incentive Option to certain persons or
entities related to the Holder, including but not limited to members of the Holder’s family,
charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are
members of the Holder’s family and/or charitable institutions, or to such other persons or entities
as may be expressly approved by the Committee, pursuant to such conditions and procedures as the
Administrator may establish, including the following conditions: (i) an Award transferred shall
not be assignable or transferable other than by will or the laws of descent and distribution; (ii)
an Award transferred shall continue to be subject to all the terms and conditions of the Award as
applicable to the original Holder (other than the ability to further transfer the Award); and (iii)
the Holder and the permitted transferee shall execute any and all documents requested by the
Administrator, including, without limitation documents to (A) confirm the status of the transferee
as a permitted transferee, (B) satisfy any requirements for an exemption for the transfer under
Applicable Laws and (C) evidence the transfer.

               (c) Notwithstanding Section 9.3(a), a Holder may, in the manner determined by the
Administrator, designate a beneficiary to exercise the rights of the Holder and to receive any
distribution with respect to any Award upon the Holder’s death. A beneficiary, legal guardian,
legal representative, or other person claiming any rights pursuant to the Plan is subject to all
terms and conditions of the Plan and any Award Agreement applicable to the Holder, except to the
extent the Plan and Award Agreement otherwise provide, and to any additional

17

 

restrictions deemed necessary or appropriate by the Administrator. If the Holder is married
and resides in a community property jurisdiction, a designation of a person other than the Holder’s
spouse as his or her beneficiary with respect to more than 50% of the Holder’s interest in the
Award shall not be effective without the prior written or electronic consent of the Holder’s
spouse. If no beneficiary has been designated or survives the Holder, payment shall be made to the
person entitled thereto pursuant to the Holder’s will or the laws of descent and distribution.
Subject to the foregoing, a beneficiary designation may be changed or revoked by a Holder at any
time provided the change or revocation is filed with the Administrator prior to the Holder’s death.

     9.4 Conditions to Issuance of Shares.

               (a) Notwithstanding anything herein to the contrary, the Company shall not be required to
issue or deliver any certificates or make any book entries evidencing Shares pursuant to the
exercise of any Award, unless and until the Board has determined, with advice of counsel, that the
issuance of such shares is in compliance with all Applicable Laws, regulations of governmental
authorities and, if applicable, the requirements of any exchange on which the Shares are listed or
traded, and the Shares are covered by an effective registration statement or applicable exemption
from registration. In addition to the terms and conditions provided herein, the Board or Committee
may require that a Holder make such reasonable covenants, agreements, and representations as the
Board or Committee , in its discretion, deems advisable in order to comply with any such laws,
regulations, or requirements.

               (b) All Share certificates delivered pursuant to the Plan and all shares issued pursuant to
book entry procedures are subject to any stop-transfer orders and other restrictions as the
Administrator deems necessary or advisable to comply with all Applicable Laws, rules and
regulations. The Administrator may place legends on any Shares certificate or book entry to
reference restrictions applicable to the Shares.

               (c) The Administrator shall have the right to require any Holder to comply with any timing or
other restrictions with respect to the settlement, distribution or exercise of any Award, including
a window-period limitation, as may be imposed in the sole discretion of the Administrator.

               (d) No fractional Shares shall be issued and the Administrator shall determine, in its sole
discretion, whether cash shall be given in lieu of fractional shares or whether such fractional
shares shall be eliminated by rounding down.

               (e) Notwithstanding any other provision of the Plan, unless otherwise determined by the
Administrator or required by any Applicable Law, rule or regulation, the Company shall not deliver
to any Holder certificates evidencing Shares issued in connection with any Award and instead such
Shares shall be recorded in the books of the Company (or, as applicable, its transfer agent or
share plan administrator).

     9.5 Forfeiture Provisions. Pursuant to its general authority to determine the terms
and conditions applicable to Awards under the Plan, the Administrator shall have the right to
provide, in the terms of Awards made under the Plan, or to require a Holder to agree by

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separate written instrument, that: (a)(i) any proceeds, gains or other economic benefit
actually or constructively received by the Holder upon any receipt or exercise of the Award, or
upon the receipt or resale of any Shares underlying the Award, must be paid to the Company, and
(ii) the Award shall terminate and any unexercised portion of the Award (whether or not vested)
shall be forfeited, if (b)(i) a Termination of Service occurs prior to a specified date, or within
a specified time period following receipt or exercise of the Award, or (ii) the Holder at any
time, or during a specified time period, engages in any activity in competition with the Company,
or which is inimical, contrary or harmful to the interests of the Company, as further defined by
the Administrator or (iii) the Holder incurs a Termination of Service for “cause” (as such term is
defined in the sole discretion of the Administrator, or as set forth in a written agreement
relating to such Award between the Company and the Holder).

     9.6 Applicable Currency. Unless otherwise required by Applicable Law, or as
determined in the discretion of the Administrator, all Awards shall be designated in U.S. dollars.
A Holder may be required to provide evidence that any currency used to pay the exercise price of
any Award were acquired and taken out of the jurisdiction in which the Holder resides in
accordance with Applicable Laws, including foreign exchange control laws and regulations. In the
event the exercise price for an Award is paid in another foreign currency, as permitted by the
Administrator, the amount payable will be determined by conversion from U.S. dollars at the
exchange rate as selected by the Administrator on the date of exercise.

ARTICLE 10.

ADMINISTRATION

     10.1 Administrator. The Compensation Committee (or another committee or a
subcommittee of the Board assuming the functions of the Committee under the Plan) shall administer
the Plan (except as otherwise permitted herein) and shall consist of at least two or more
Non-Employee Directors appointed by and holding office at the pleasure of the Board, each of whom
shall comply with Applicable Laws. To the extent any Series A Preferred Shares are issued and
outstanding, the holders of the Series A Preferred Shares of the Company shall have the right to
appoint at least one (1) member of such Compensation Committee, who shall has veto right on all
decisions to be made by such Compensation Committee. Except as may otherwise be provided in any
charter of the Committee, appointment of Committee members shall be effective upon acceptance of
appointment. Committee members may resign at any time by delivering written or electronic notice
to the Board. Vacancies in the Committee may only be filled by the Board or the holders of Series
A Preferred Shares of the Company (to the extent any Series A Preferred Shares are issued and
outstanding), as applicable. Notwithstanding the foregoing, (a) the full Board, acting by a
majority of its members in office (including the Director designated by the holders of the Series
A Preferred Shares of the Company to the extent any Series A Preferred Shares are issued and
outstanding), shall conduct the general administration of the Plan with respect to Awards granted
to Non-Employee Directors and (b) the Board or Committee may delegate its authority hereunder to
the extent permitted by Section 10.6.

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     10.2 Duties and Powers of Committee. It shall be the duty of the Committee to
conduct the general administration of the Plan in accordance with its provisions. The Committee
shall have the power to interpret the Plan and the Award Agreement, and to adopt such rules for
the administration, interpretation and application of the Plan as are not inconsistent therewith,
to interpret, amend or revoke any such rules and to amend any Award Agreement provided that the
rights or obligations of the Holder of the Award that is the subject of any such Award Agreement
are not affected adversely by such amendment, unless the consent of the Holder is obtained or such
amendment is otherwise permitted under Section 11.10. Any such grant or award under the Plan need
not be the same with respect to each holder. Any such interpretations and rules with respect to
Incentive Options shall be consistent with the provisions of Section 422 of the Code. In its sole
discretion, the Board may at any time and from time to time exercise any and all rights and duties
of the Committee under the Plan except with respect to matters which under Applicable Law are
required to be determined in the sole discretion of the Committee.

     10.3 Action by the Committee. Unless otherwise established by the Board or in any
charter of the Committee, a majority of the Committee (including the member designated by the
holders of the Series A Preferred Shares of the Company to the extent any Series A Preferred
Shares are issued and outstanding) shall constitute a quorum and the acts of a majority of the
members present at any meeting (including the member designated by the holders of the Series A
Preferred Shares of the Company to the extent any Series A Preferred Shares are issued and
outstanding) at which a quorum is present, and acts approved in writing by all members of the
Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the
Committee is entitled to, in good faith, rely or act upon any report or other information
furnished to that member by any officer or other employee of the Company or any Subsidiary, the
Company’s independent certified public accountants, or any executive compensation consultant or
other professional retained by the Company to assist in the administration of the Plan.

     10.4 Authority of Administrator. Subject to any specific designation in the Plan,
the Administrator has the exclusive power, authority and sole discretion to:

               (a) Designate Eligible Individuals to receive Awards;

               (b) Determine the type or types of Awards to be granted to each Eligible Individual;

               (c) Determine the number of Awards to be granted and the number of shares of Shares to which
an Award will relate;

               (d) Determine the terms and conditions of any Award granted pursuant to the Plan, including,
but not limited to, the exercise price, grant price, or purchase price, any reload provision, any
restrictions or limitations on the Award, any schedule for vesting, lapse of forfeiture
restrictions or restrictions on the exercisability of an Award, and accelerations or waivers
thereof, and any provisions related to non-competition and recapture of gain on an Award, based in
each case on such considerations as the Administrator in its sole discretion determines;

20

 

               (e) Determine whether, to what extent, and pursuant to what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in cash, Shares, other Awards, or other
property, or an Award may be canceled, forfeited, or surrendered;

               (f) Prescribe the form of each Award Agreement, which need not be identical for each Holder;

               (g) Decide all other matters that must be determined in connection with an Award;

               (h) Establish, adopt, or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

               (i) Interpret the terms of, and any matter arising pursuant to, the Plan or any Award
Agreement; and

               (j) Make all other decisions and determinations that may be required pursuant to the Plan or
as the Administrator deems necessary or advisable to administer the Plan.

     10.5 Decisions Binding. The Administrator’s interpretation of the Plan, any Awards
granted pursuant to the Plan, any Award Agreement and all decisions and determinations by the
Administrator with respect to the Plan are final, binding, and conclusive on all parties.

     10.6 Delegation of Authority. To the extent permitted by Applicable Laws, the Board
(including the affirmative vote of the director of the Company designated by the holders of the
Series A Preferred Shares to the extent any Series A Preferred Shares are issued and outstanding)
or Committee may from time to time delegate to a committee of one or more members of the Board or
one or more officers of the Company the authority to grant or amend Awards or to take other
administrative actions pursuant to Article 10; provided, however, that in no event shall an
officer be delegated the authority to grant awards to, or amend awards held by, the following
individuals: (a) individuals who are subject to Section 16 of the Exchange Act, or (b) officers
of the Company (or Directors) to whom authority to grant or amend Awards has been delegated
hereunder. Any delegation hereunder shall be subject to the restrictions and limits that the
Board or Committee specifies at the time of such delegation, and the Board may at any time rescind
the authority so delegated or appoint a new delegatee. At all times, the delegatee appointed
under this Section 10.6 shall serve in such capacity at the pleasure of the Board and the
Committee.

ARTICLE 11.

MISCELLANEOUS PROVISIONS

     11.1 Effective Date. The Plan has been adopted and approved by the Board, subject to
shareholder approval. The Plan will be effective as of the date it is approved by the Company’s
shareholders (the “Effective Date”). The Plan will be deemed to be approved by the
shareholders if it receives the affirmative vote of a majority (in excess of 50%) of the votes of
the ordinary shares and the affirmative vote of a majority (in excess of 50%) of the votes of the
Series A Preferred Shares to the extent any Series A Preferred Shares are issued and

21

 

outstanding, entitled to vote and present at a meeting duly held in accordance with the
applicable provisions of the Company’s amended and restated memorandum of association and the
articles of association of the Company. Awards may be granted or awarded prior to such
shareholder approval, provided that such Awards shall not be exercisable, shall not vest and the
restrictions thereon shall not lapse and no Shares shall be issued pursuant thereto prior to the
Effective Date, and provided further that if such approval has not been obtained within twelve
(12) months after adoption of the Plan by the Board, all Awards previously granted or awarded
under the Plan shall thereupon be canceled and become null and void.

     11.2 Expiration Date. The Plan will expire on, and no Award may be granted pursuant
to the Plan after, the tenth anniversary of the Effective Date. Any Awards that are outstanding
on the tenth anniversary of the Effective Date shall remain in force according to the terms of the
Plan and the applicable Award Agreement.

     11.3 Amendment, Suspension or Termination of the Plan. Except as otherwise provided
in this Section 11.3, at any time and from time to time, the Administrator may terminate, amend or
modify the Plan; provided, however, that (a) to the extent necessary and desirable to comply with
Applicable Laws, or securities exchange rules, the Company shall obtain shareholder approval of
any Plan amendment in such a manner and to such a degree as required, and (b) shareholder approval
is required for any amendment to the Plan that (i) increases the number of Shares available under
the Plan (other than any adjustment as provided by Article 12), (ii) permits the Administrator to
extend the term of the Plan or the exercise period for an Option or Share Appreciation Right
beyond ten years from the date of grant, or (iii) results in a material increase in benefits or a
change in eligibility requirements. Except as provided in the Plan or any Award Agreement, no
amendment, suspension or termination of the Plan shall, without the consent of the Holder, impair
any rights or obligations under any Award theretofore granted or awarded.

     11.4 No Shareholders Rights. Except as otherwise provided herein, a Holder shall
have none of the rights of a shareholder with respect to shares of Shares covered by any Award
until the Holder becomes the record owner of such shares of Shares.

     11.5 Paperless Administration. In the event that the Company establishes, for itself
or using the services of a third party, an automated system for the documentation, granting or
exercise of Awards, such as a system using an internet website or interactive voice response, then
the paperless documentation, granting or exercise of Awards by a Holder may be permitted through
the use of such an automated system.

     11.6 Effect of Plan upon Other Compensation Plans. The adoption of the Plan shall
not affect any other compensation or incentive plans in effect for the Company or any Subsidiary.
Nothing in the Plan shall be construed to limit the right of the Company or any Subsidiary:
(a) to establish any other forms of incentives or compensation for Employees, Directors or
Consultants of the Company or any Subsidiary, or (b) to grant or assume options or other rights or
awards otherwise than under the Plan in connection with any proper corporate purpose including
without limitation, the grant or assumption of options in connection with the acquisition by
purchase, lease, merger, consolidation or otherwise, of the business, securities or assets of any
corporation, partnership, limited liability company, firm or association.

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     11.7 Compliance with Laws. The Plan, the granting and vesting of Awards under the
Plan and the issuance and delivery of shares of Shares and the payment of money under the Plan or
under Awards granted or awarded hereunder are subject to compliance with all Applicable Laws,
rules and regulations (including but not limited to securities law and margin requirements), and
to such approvals by any listing, regulatory or governmental authority as may, in the opinion of
counsel for the Company, be necessary or advisable in connection therewith. Any securities
delivered under the Plan shall be subject to such restrictions, and the person acquiring such
securities shall, if requested by the Company, provide such assurances and representations to the
Company as the Company may deem necessary or desirable to assure compliance with all applicable
legal requirements. To the extent permitted by Applicable :aw, the Plan and Awards granted or
awarded hereunder shall be deemed amended to the extent necessary to conform to such laws, rules
and regulations.

     11.8 Titles and Headings, References to Sections of the Code or Exchange Act. The
titles and headings of the Sections in the Plan are for convenience of reference only and, in the
event of any conflict, the text of the Plan, rather than such titles or headings, shall control.
References to sections of the Code or the Exchange Act shall include any amendment or successor
thereto.

     11.9 Governing Law. The Plan and any agreements hereunder shall be administered,
interpreted and enforced under the internal laws of the Cayman Islands without regard to conflicts
of laws thereof.

     11.10 Section 409A. To the extent that the Administrator determines that any Award
granted under the Plan is subject to Section 409A of the Code, the Award Agreement evidencing such
Award shall incorporate the terms and conditions required by Section 409A of the Code. To the
extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section
409A of the Code and Department of Treasury regulations and other interpretive guidance issued
thereunder, including without limitation any such regulations or other guidance that may be issued
after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event
that following the Effective Date the Administrator determines that any Award may be subject to
Section 409A of the Code and related Department of Treasury guidance (including such Department of
Treasury guidance as may be issued after the Effective Date), the Administrator may adopt such
amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Administrator determines are necessary or appropriate to (a) exempt the Award
from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided
with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and
related Department of Treasury guidance and thereby avoid the application of any penalty taxes
under such Section.

     11.11 No Rights to Awards. No Eligible Individual or other person shall have any
claim to be granted any Award pursuant to the Plan, and neither the Company nor the Administrator
is obligated to treat Eligible Individuals, Holders or any other persons uniformly.

23

 

     11.12 No Right to Employment or Services. Nothing in the Plan or any Award Agreement
shall interfere with or limit in any way the right of the Service Recipient to terminate any
Holder’s employment or services at any time, nor confer upon any Holder any right to continue in
the employ or service of any Service Recipient.

     11.13 Effect of Plan upon Other Compensation Plans. The adoption of the Plan shall
not affect any other compensation or incentive plans in effect for any Service Recipient. Nothing
in the Plan shall be construed to limit the right of any Service Recipient: (a) to establish any
other forms of incentives or compensation for Employees, Directors or Consultants, or (b) to grant
or assume options or other rights or awards otherwise than under the Plan in connection with any
proper corporate purpose including without limitation, the grant or assumption of options in
connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the
business, securities or assets of any corporation, partnership, limited liability company, firm or
association.

     11.14 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for
incentive compensation. With respect to any payments not yet made to a Holder pursuant to an
Award, nothing contained in the Plan or any Award Agreement shall give the Holder any rights that
are greater than those of a general creditor of the Company or any Subsidiary.

     11.15 Indemnification. To the extent allowable pursuant to applicable law, each
member of the Committee or of the Board shall be indemnified and held harmless by the Company from
any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such
member in connection with or resulting from any claim, action, suit, or proceeding to which he or
she may be a party or in which he or she may be involved by reason of any action or failure to act
pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction
of judgment in such action, suit, or proceeding against him or her; provided he or she gives the
Company an opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such
persons may be entitled pursuant to the Company’s amended and restated memorandum of association
and the articles of association of the Company, as a matter of law, or otherwise, or any power
that the Company may have to indemnify them or hold them harmless.

     11.16 Relationship to other Benefits. No payment pursuant to the Plan shall be taken
into account in determining any benefits under any pension, retirement, savings, profit sharing,
group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the
extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

     11.17 Expenses. The expenses of administering the Plan shall be borne by the Company
and its Subsidiaries.

ARTICLE 12.

24

 

CHANGES IN CAPITAL STRUCTURE

     12.1 Adjustments. In the event of any distribution, share split, combination or
exchange of Shares, amalgamation, arrangement or consolidation, reorganization of the Company,
including the Company becoming a subsidiary in a transaction not involving a Corporate
Transaction, spin-off, recapitalization or other distribution (other than normal cash dividends)
of Company assets to its shareholders, or any other change affecting the Shares or the share price
of a Share, the Administrator shall make such proportionate and equitable adjustments, if any, to
reflect such change with respect to (a) the aggregate number and type of shares that may be issued
under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1 and
substitutions of shares in a parent or surviving company); (b) the terms and conditions of any
outstanding Awards (including, without limitation, any applicable performance targets or criteria
with respect thereto); and (c) the grant or exercise price per share for any outstanding Awards
under the Plan. The form and manner of any such adjustments shall be determined by the
Administrator in its sole discretion.

     12.2 Corporate Transactions. Except as may otherwise be provided in any Award
Agreement or any other written agreement entered into by and between the Company and a Holder, if
a Corporate Transaction occurs and a Holder’s Awards are not converted, assumed, or replaced by a
successor as provided in Section 12.3, such Awards shall become fully exercisable and all
forfeiture restrictions on such Awards shall lapse. Upon, or in anticipation of, a Corporate
Transaction, the Administrator may in its sole discretion provide for (i) any and all Awards
outstanding hereunder to terminate at a specific time in the future and shall give each Holder the
right to exercise such Awards during a period of time as the Administrator shall determine, (ii)
either the purchase of any Award for an amount of cash equal to the amount that could have been
attained upon the exercise of such Award or realization of the Holder’s rights had such Award been
currently exercisable or payable or fully vested (and, for the avoidance of doubt, if as of such
date the Committee determines in good faith that no amount would have been attained upon the
exercise of such Award or realization of the Holder’s rights, then such Award may be terminated by
the Company without payment), or (iii) the replacement of such Award with other rights or property
selected by the Administrator in its sole discretion or the assumption of or substitution of such
Award by the successor or surviving corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of Shares and prices.

     12.3 Assumption of Awards – Corporate Transactions. In the event of a Corporate
Transaction, each Award may be assumed by the successor entity or Parent thereof in connection
with the Corporate Transaction. Except as provided otherwise in an individual Award Agreement, an
Award will be considered assumed if the Award either is (x) assumed by the successor entity or
Parent thereof or replaced with a comparable Award (as determined by the Administrator) with
respect to capital shares (or equivalent) of the successor entity or Parent thereof or (y)
replaced with a cash incentive program of the successor entity which preserves the compensation
element of such Award existing at the time of the Corporate Transaction and provides for
subsequent payout in accordance with the same vesting schedule applicable to such Award. If an
Award is assumed in a Corporate Transaction, then such Award, the replacement Award or the cash
incentive program automatically shall become fully vested, exercisable and payable and be released
from any restrictions on transfer (other than

25

 

transfer restrictions applicable to Options) and repurchase or forfeiture rights, immediately
upon termination of the Holder’s employment or service with all Service Recipients within twelve
(12) months of the Corporate Transaction without cause.

     12.4 Outstanding Awards – Other Changes. In the event of any other change in the
capitalization of the Company or corporate change other than those specifically referred to in
this Article 12, the Committee may, in its absolute discretion, make such adjustments in the
number and class of shares subject to Awards outstanding on the date on which such change occurs
and in the per share grant or exercise price of each Award as the Administrator may consider
appropriate to prevent dilution or enlargement of rights.

     12.5 No Other Rights. Except as expressly provided in the Plan, no Holder shall have
any rights by reason of any subdivision or consolidation of shares of any class, the payment of
any dividend, any increase or decrease in the number of shares of any class or any dissolution,
liquidation, merger, or consolidation of the Company or any other corporation. Except as
expressly provided in the Plan or pursuant to action of the Administrator under the Plan, no
issuance by the Company of shares of any class, or securities convertible into shares of any
class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number
of shares subject to an Award or the grant or exercise price of any Award.

*   *   *   *   *

I hereby certify that the foregoing Plan was duly adopted by the Board of Directors of Profit Star
Limited on March 1st, 2010 and amended on September 15, 2010.

*   *   *   *   *

26

 

I hereby certify that the foregoing Plan was initially approved by the shareholders of Profit Star
Limited on March 1st, 2010 and amended on September 15, 2010.

Executed on this 15 day of September, 2010.

	 	 	 	 	 
	 	 	 
	 	/s/ Tao Song
 	 
	 	Director Tao Songexv10w2

Exhibit 10.2

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (the “Agreement”) is entered into as of [__________], 2010 by
and between Sky-mobi Limited, a Cayman Islands company (the “Company”) and the undersigned, a
director and/or officer of the Company (“Indemnitee”).

RECITALS

     1. The Company recognizes that highly competent persons are becoming more reluctant to serve
corporations as directors or in other capacities unless they are provided with adequate protection
through insurance or adequate indemnification against risks of claims and actions against them
arising out of their services to the corporation.

     2. The Board of Directors of the Company (the “Board”) has determined that the inability to
attract and retain highly competent persons to serve the Company is detrimental to the best
interests of the Company and its shareholders and that it is reasonable and necessary for the
Company to provide adequate protection to such persons against risks of claims and actions against
them arising out of their services to the corporation.

     3. The Company is willing to indemnify Indemnitee to the fullest extent permitted by
applicable law, and Indemnitee is willing to serve and continue to serve the Company on the
condition that he be so indemnified.

AGREEMENT

     In consideration of the premises and the covenants contained herein, the Company and
Indemnitee do hereby covenant and agree as follows:

A. DEFINITIONS

     The following terms shall have the meanings defined below:

     Expenses shall include damages, judgments, fines, penalties, settlements and costs, attorneys’
fees and disbursements and costs of attachment or similar bond, investigations, and any expenses
paid or incurred in connection with investigating, defending, being a witness in, participating in
(including on appeal), or preparing for any of the foregoing in, any Proceeding.

     Indemnifiable Event means any event or occurrence that takes place either before or after the
execution of this Agreement, related to the fact that Indemnitee is or was a director or an officer
of the Company, or is or was serving at the request of the Company as a director or officer of
another corporation, partnership, joint venture or other entity, or was a director or officer of an
entity that was a predecessor of the Company or another entity at the request of such predecessor
entity, or related to anything done or not done by Indemnitee in any such capacity.

     Participant means a person who is a party to, or witness or participant (including on appeal)
in, a Proceeding.

 

 

     Proceeding means any threatened, pending, or completed action, suit or proceeding, or any
inquiry, hearing or investigation, whether civil, criminal, administrative, investigative or other,
in which Indemnitee may be or may have been involved as a party or otherwise by reason of an
Indemnifiable Event, including, without limitation, any threatened, pending, or completed action,
suit or proceeding by or in the right of the Company.

B. AGREEMENT TO INDEMNIFY

     1. General Agreement. In the event Indemnitee was, is, or becomes a Participant in,
or is threatened to be made a Participant in, a Proceeding, the Company shall indemnify the
Indemnitee from and against any and all Expenses which Indemnitee incurs or becomes obligated to
incur in connection with such Proceeding, to the fullest extent permitted by applicable law.

     2. Indemnification of Expenses of Successful Party. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee has been successful on the merits in
defense of any Proceeding or in defense of any claim, issue or matter in such Proceeding,
Indemnitee shall be indemnified against all Expenses incurred in connection with such Proceeding or
such claim, issue or matter, as the case may be.

     3. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for a portion of Expenses, but not for the total amount
of Expenses, the Company shall indemnify the Indemnitee for the portion of such Expenses to which
Indemnitee is entitled.

     4. Exclusions. Notwithstanding anything in this Agreement to the contrary, Indemnitee
shall not be entitled to indemnification under this Agreement:

     (a) to the extent that payment is actually made to Indemnitee under a valid, enforceable and
collectible insurance policy;

     (b) in connection with a judicial action by or in the right of the Company, in respect of any
claim, issue or matter as to which the Indemnitee shall have been adjudicated by final judgment in
a court of law to be liable for gross negligence or willful misconduct in the performance of his
duty to the Company unless and only to the extent that any court in which such action was brought
shall determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such
Expenses as such court shall deem proper;

     (c) in connection with any Proceeding initiated by Indemnitee against the Company or any
director or officer of the Company, and not by way of defense, unless (i) the Company has joined in
or the Board has consented to the initiation of such Proceeding; or (ii) the Proceeding is one to
enforce indemnification rights under this Agreement or any applicable law;

     (d) for a disgorgement of profits made from the purchase and sale by the Indemnitee of
securities pursuant to Section 16(b) of the Exchange Act or similar provisions of any applicable
U.S. state statutory law or common law;

2

 

     (e) brought about by the dishonesty or fraud of the Indemnitee seeking payment hereunder;
provided, however, that the Indemnitee shall be protected under this Agreement as to any claims
upon which suit may be brought against him by reason of any alleged dishonesty on his part, unless
a judgment or other final adjudication thereof adverse to the Indemnitee establishes that he
committed (i) acts of active and deliberate dishonesty, (ii) with actual dishonest purpose and
intent, and (iii) which acts were material to the cause of action so adjudicated;

     (f) for any judgment, fine or penalty which the Company is prohibited by applicable law from
paying as indemnity; or

     (g) arising out of Indemnitee’s breach of an employment agreement with the Company (if any) or
any other agreement with the Company or any of its subsidiaries.

     5. No Employment Rights. Nothing in this Agreement is intended to create in
Indemnitee any right to continued employment with the Company.

     6. Contribution. If the indemnification provided in this Agreement is unavailable and
may not be paid to Indemnitee for any reason other than those set forth in Section B.4, then the
Company shall contribute to the amount of Expenses paid in settlement actually and reasonably
incurred and paid or payable by Indemnitee in such proportion as is appropriate to reflect (i) the
relative benefits received by the Company on the one hand and by the Indemnitee on the other hand
from the transaction from which such Proceeding arose, and (ii) the relative fault of the Company
on the one hand and of the Indemnitee on the other hand in connection with the events which
resulted in such Expenses, as well as any other relevant equitable considerations. The relative
fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by
reference to, among other things, the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments,
fines or settlement amounts. The Company agrees that it would not be just and equitable if
contribution pursuant to this Section B.6 were determined by pro rata allocation or any other
method of allocation which does not take account of the foregoing equitable considerations.

C. INDEMNIFICATION PROCESS

     1. Notice and Cooperation By Indemnitee. Indemnitee shall, as a condition precedent
to his right to be indemnified under this Agreement, give the Company notice in writing as soon as
practicable of any claim made against Indemnitee for which indemnification will or could be sought
under this Agreement, provided that the delay of Indemnitee to give notice hereunder shall not
prejudice any of Indemnitee’s rights hereunder, unless such delay results in the Company’s
forfeiture of substantive rights or defenses. Notice to the Company shall be given in accordance
with Section F.7 below. In addition, Indemnitee shall give the Company such information and
cooperation as the Company may reasonably request.

     2. Indemnification Payment.

     (a) Advancement of Expenses. Indemnitee may submit a written request to the Company
requesting that the Company advance to Indemnitee all Expenses that may be reasonably incurred by
Indemnitee in connection with a Proceeding as such Expenses are

3

 

incurred. The Company shall, within ten business days of receiving such a written request by
Indemnitee, advance all requested Expenses to Indemnitee.

     (b) Reimbursement of Expenses. To the extent Indemnitee has not requested any advanced
payment of Expenses from the Company, Indemnitee shall be entitled to receive reimbursement for the
Expenses incurred in connection with a Proceeding from the Company immediately after Indemnitee
makes a written request to the Company for reimbursement.

     (c) Determination by the Reviewing Party. Notwithstanding anything foregoing to the contrary,
in the event the Reviewing Party informs the Company that Indemnitee is not entitled to
indemnification in connection with a Proceeding under this Agreement or applicable law, the Company
shall be entitled to be reimbursed by Indemnitee for all the Expenses previously advanced or
otherwise paid to Indemnitee in connection with such Proceeding; provided, however,
that Indemnitee may bring a suit to enforce his indemnification right in accordance with Section
C.3 below.

     3. Suit to Enforce Rights. Regardless of any action by the Reviewing Party, if
Indemnitee has not received full indemnification within 30 days after making a written demand in
accordance with Section C.2 above, Indemnitee shall have the right to enforce its indemnification
rights under this Agreement by commencing litigation in any court of competent jurisdiction seeking
a determination by the court or challenging any determination by the Reviewing Party or any aspect
of the Agreement. Any determination by the Reviewing Party not challenged by Indemnitee and any
judgment entered by the court shall be binding on the Company and Indemnitee.

     4. Assumption of Defense. In the event the Company is obligated under this Agreement
to advance any Expenses for any Proceeding against Indemnitee, the Company shall be entitled to
assume the defense of such Proceeding, with counsel approved by Indemnitee, upon delivery to
Indemnitee of written notice of its election to do so. After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not
be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same Proceeding, unless (i) the employment of counsel by Indemnitee
has been previously authorized by the Company, (ii) Indemnitee shall have reasonably concluded,
based on written advice of counsel, that there may be a conflict of interest of such counsel
retained by the Company between the Company and Indemnitee in the conduct of any such defense, or
(iii) the Company ceases or terminates the employment of such counsel with respect to the defense
of such Proceeding, in any of which events the fees and expenses of Indemnitee’s counsel shall be
at the expense of the Company. At all times, Indemnitee shall have the right to employ counsel in
any Proceeding at Indemnitee’s expense.

     5. Defense to Indemnification, Burden of Proof and Presumptions. It shall be a
defense to any action brought by Indemnitee against the Company to enforce this Agreement that it
is not permissible under this Agreement or applicable law for the Company to indemnify the
Indemnitee for the amount claimed. In connection with any such action or any determination by the
Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified under this
Agreement, the burden of proving such a defense or determination shall be on the Company. Neither
the failure of the Reviewing Party or the Company to have made a determination prior to the
commencement of such action by Indemnitee that indemnification is proper under the circumstances
because Indemnitee has met the standard

4

 

of conduct set forth in applicable law, nor an actual determination by the Reviewing Party or the
Company that Indemnitee had not met such applicable standard of conduct shall be a defense to the
action or create a presumption that Indemnitee has not met the applicable standard of conduct.

     6. No Settlement Without Consent. The Company shall not settle any Proceeding in any
manner that would impose any damage, loss, penalty or limitation on Indemnitee without Indemnitee’s
prior written consent. Neither the Company nor Indemnitee shall unreasonably withhold its consent
to any proposed settlement, provided that Indemnitee may withhold his consent if any proposed
settlement imposes any damage, loss, penalty or limitation on Indemnitee.

     7. Company Participation. The Company shall not be liable to indemnify the Indemnitee
under this Agreement with regard to any judicial action if the Company was not given a reasonable
and timely opportunity, at its expense, to participate in the defense of such action, unless such
lack of opportunity does not result in the Company’s forfeiture of substantive rights or defenses.

     8. Reviewing Party.

          (a) For purposes of this Agreement, the Reviewing Party with respect to each indemnification
request of Indemnitee shall be (A) the Board of Directors by a majority vote of a quorum consisting
of Disinterested Directors (as hereinafter defined), or (B) if a quorum of the Board of Directors
consisting of Disinterested Directors is not obtainable or, even if obtainable, said Disinterested
Directors so direct, Independent Counsel in a written opinion to the Board of Directors, a copy of
which shall be delivered to Indemnitee; and, if it is determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten days after such determination.
Indemnitee shall cooperate with the person, persons or entity making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons
or entity upon reasonable advance request any documentation or information which is not privileged
or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. Any Independent Counsel or member of the Board of
Directors shall act reasonably and in good faith in making a determination under the Agreement of
the Indemnitee’s entitlement to indemnification. Any costs or expenses (including attorneys’ fees
and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity
making such determination shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom. “Disinterested Director” means a director of the Company
who is not and was not a party to the Proceeding in respect of which indemnification is sought by
Indemnitee.

          (b) If the determination of entitlement to indemnification is to be made by Independent
Counsel, the Independent Counsel shall be selected as provided in this Section C.8(b). The
Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board of Directors, in which event the preceding sentence shall apply),
and Indemnitee shall give written notice to the Company advising it of the identity of the
Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be,
may, within 10 days after such written notice of selection shall have been given, deliver to the
Company or to Indemnitee, as the case may be,

5

 

a written objection to such selection; provided, however, that such objection may be asserted only on
the ground that the Independent Counsel so selected does not meet the requirements of
“Independent Counsel” as defined in Section C.8(d) of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the person so selected shall act as Independent Counsel. If a written objection is made
and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and
until such objection is withdrawn or a court has determined that such objection is without merit.
If, within 20 days after submission by Indemnitee of a written request for indemnification, no
Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee
may petition the a court of competent jurisdiction for resolution of any objection which shall have
been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for
the appointment as Independent Counsel of a person selected by the court or by such other person as
the court shall designate, and the person with respect to whom all objections are so resolved or
the person so appointed shall act as Independent Counsel. The Company shall pay any and all
reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in
connection with acting under this Agreement, and the Company shall pay all reasonable fees and
expenses incident to the procedures of this Section C.8(b), regardless of the manner in which such
Independent Counsel was selected or appointed.

          (c) In making a determination with respect to entitlement to indemnification hereunder, the
Reviewing Party shall presume that Indemnitee is entitled to indemnification under this Agreement
if Indemnitee has submitted a request for indemnification in accordance with this Agreement, and
the Company shall have the burden of proof to overcome that presumption in connection with the
making by any person, persons or entity of any determination contrary to that presumption. The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order,
settlement (with or without court approval), conviction, or upon a plea of nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee
did not act in good faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his conduct was unlawful. For purposes of any determination of
good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based
on the records or books of account of the Company and any other corporation, partnership, joint
venture or other entity of which Indemnitee is or was serving at the written request of the Company
as a director, officer, employee, agent or fiduciary, including financial statements, or on
information supplied to Indemnitee by the officers and directors of the Company or such other
corporation, partnership, joint venture or other entity in the course of their duties, or on the
advice of legal counsel for the Company or such other corporation, partnership, joint venture or
other entity or on information or records given or reports made to the Company or such other
corporation, partnership, joint venture or other entity by an independent certified public
accountant or by an appraiser or other expert selected with reasonable care by the Company or such
other corporation, partnership, joint venture or other entity. In addition, the knowledge and/or
actions, or failure to act, of any director, officer, agent or employee of the Company or such
other corporation, partnership, joint venture or other entity shall not be imputed to Indemnitee
for purposes of determining the right to indemnification under this Agreement. The provisions of
this Section C.8(c) shall not be deemed to be exclusive or to limit in any way the other
circumstances in which the

6

 

Indemnitee may be deemed to have met the applicable standard of conduct set forth in this
Agreement.

          (d) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five years has
been, retained to represent (i) the Company or Indemnitee in any matter material to either such
party (other than with respect to matters concerning the Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The
Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully
indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of
or relating to this Agreement or its engagement pursuant hereto.

D. DIRECTOR AND OFFICER LIABILITY INSURANCE

     1. Good Faith Determination. The Company shall from time to time make the good faith
determination whether or not it is practicable for the Company to obtain and maintain a policy or
policies of insurance with reputable insurance companies providing the officers and directors of
the Company with coverage for losses incurred in connection with their services to the Company or
to ensure the Company’s performance of its indemnification obligations under this Agreement.

     2. Coverage of Indemnitee. To the extent the Company maintains an insurance policy or
policies providing directors’ and officers’ liability insurance, Indemnitee shall be covered by
such policy or policies, in accordance with its or their terms, to the maximum extent of the
coverage available for any of the Company’s directors or officers.

     3. No Obligation. Notwithstanding the foregoing, the Company shall have no obligation
to obtain or maintain any director and officer insurance policy if the Company determines in good
faith that such insurance is not reasonably available in the case that (i) premium costs for such
insurance are disproportionate to the amount of coverage provided, or (ii) the coverage provided by
such insurance is limited by exclusions so as to provide an insufficient benefit.

E. NON-EXCLUSIVITY; FEDERAL PREEMPTION; TERM

     1. Non-Exclusivity. The indemnification provided by this Agreement shall not be
deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s current
memorandum and articles of association, applicable law or any written agreement between Indemnitee
and the Company (including its subsidiaries and affiliates). The indemnification provided under
this Agreement shall continue to be available to Indemnitee for any action taken or not taken while
serving in an indemnified capacity even though he may have ceased to serve in any such capacity at
the time of any Proceeding.

     2. Federal Preemption. Notwithstanding the foregoing, both the Company and Indemnitee
acknowledge that in certain instances, U.S. federal law or public policy may

7

 

override applicable law and prohibit the Company from indemnifying its directors and officers under
this Agreement or otherwise. Such instances include, but are not limited to, the U.S. Securities
and Exchange Commission’s prohibition on indemnification for liabilities arising under certain U.S.
federal securities laws. Indemnitee understands and acknowledges that the Company has undertaken
or may be required in the future to undertake with the SEC to submit the question of
indemnification to a court in certain circumstances for a determination of the Company’s right
under public policy to indemnify Indemnitee.

     3. Duration of Agreement. All agreements and obligations of the Company contained
herein shall continue during the period Indemnitee is an officer and/or a director of the Company
(or is or was serving at the request of the Company as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise) and shall continue
thereafter so long as Indemnitee shall be subject to any Proceeding by reason of his former or
current capacity at the Company, whether or not he is acting or serving in any such capacity at the
time any expense is incurred for which indemnification can be provided under this Agreement. This
Agreement shall continue in effect regardless of whether Indemnitee continues to serve as an
officer and/or a director of the Company or any other enterprise at the Company’s request.

F. MISCELLANEOUS

     1. Amendment of this Agreement. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of
the provisions of this Agreement shall operate as a waiver of any other provisions (whether or not
similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided in
this Agreement, no failure to exercise or any delay in exercising any right or remedy shall
constitute a waiver.

     2. Subrogation. In the event of payment to Indemnitee by the Company under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee, who shall execute all papers required and shall do everything that may be
necessary to secure such rights, including the execution of such documents necessary to enable the
Company to bring suit to enforce such rights.

     3. Assignment; Binding Effect. Neither this Agreement nor any of the rights or
obligations hereunder may be assigned by either party hereto without the prior written consent of
the other party; except that the Company may, without such consent, assign all such rights and
obligations to a successor in interest to the Company which assumes all obligations of the Company
under this Agreement. Notwithstanding the foregoing, this Agreement shall be binding upon and
inure to the benefit of and be enforceable by and against the parties hereto and the Company’s
successors (including any direct or indirect successor by purchase, merger, consolidation, or
otherwise to all or substantially all of the business and/or assets of the Company) and assigns, as
well as Indemnitee’s spouses, heirs, and personal and legal representatives. As a condition to any
purchase, merger, consolidation or other business combination transaction involving the Company,
the Company’s successor shall expressly assume the obligations under this Agreement.

     4. Severability and Construction. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in violation of applicable
law. The Company’s inability, pursuant to a court order, to perform its

8

 

obligations under this Agreement shall not constitute a breach of this Agreement. In addition, if
any portion of this Agreement shall be held by a court of competent jurisdiction to be invalid,
void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest
extent permitted by applicable law. The parties hereto acknowledge that they each have
opportunities to have their respective counsels review this Agreement. Accordingly, this Agreement
shall be deemed to be the product of both of the parties hereto, and no ambiguity shall be
construed in favor of or against either of the parties hereto.

     5. Counterparts. This Agreement may be executed in two counterparts, both of which
taken together shall constitute one instrument.

     6. Governing Law. This agreement and all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the State of New York, U.S.A., without giving effect to conflicts of
law provisions thereof.

     7. Notices. All notices, demands, and other communications required or permitted
under this Agreement shall be made in writing and shall be deemed to have been duly given if
delivered by hand, against receipt, or mailed, postage prepaid, certified or registered mail,
return receipt requested, and addressed to the Company at:

Sky-mobi Limited

10/F, Building B, United Mansion

No. 2, Zijinhua Road, Hangzhou

Zhejiang 310013

People’s Republic of China

Attention: Chief Financial Officer

     and to Indemnitee at its last address notified to the Company.

     8. Entire Agreement. This Agreement constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, between the parties with respect to
the subject matter hereof.

(Signature page follows)

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

COMPANY

Sky-mobi Limited

	 	 	 

	 

Name: Carl Yeung

	 	 
	Title: Chief Financial Officer
	 	 

INDEMNITEE

	 	 	 

	 

Name:

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