Document:

Unassociated Document

    SEPARATION
AGREEMENT

     

    This
agreement (the “Agreement”) effective on the last day executed below, is entered
into between YI (JENNY) LIU (“Employee”) and RINO INTERNATIONAL CORPORATION, a
Nevada corporation (“Employer”) relating to Employee’s employment and separation
from employment with Employer and its subsidiaries.

     

    In
consideration of the execution and delivery of the Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowl­edged, the parties hereby agree as follows:

     

    
      	
              1.

            	
              Separation
      From Employment and Severance
Rights.

            

    

     

    
      	
              1.1.

            	
              Employee
      resigned as Chief Financial Officer and from any and all other offices or
      positions Employee may have had with Employer or any of its subsidiaries
      or affiliated companies effective April 27, 2010 (“Separation Date”), with
      Employee’s Base Salary continuing through April 30, 2010 pursuant to the
      Employment Agreement defined below.

            

    

     

    
      	
              1.2.

            	
              Employee’s
      separation from employment with Employer was effective on the Separation
      Date. Employee will be reimbursed the sum of $1,000 for business expenses
      incurred by Employee, including the costs of her China and U.S. based
      cellular phone bill for the period from January 2010 through April 2010
      for use of such phone for work on behalf of
  Employer.

            

    

     

    
      	
              1.3.

            	
              In
      exchange for the covenants, warranties and promises which Employee makes
      in this Agreement below and the Employee’s compliance with this Agreement,
      Section 5(B) of the Employment Agreement, dated June 30, 2009 (the
      “Employment Agreement”) is hereby amended such that the options to
      purchase 10,000 shares of the Employer’s common stock (the “Shares”) at
      the exercise price $6.15 per share granted to Employee shall vest
      immediately upon the execution of this Agreement.. [and the options to
      purchase 20,000 shares that were to vest on June 30, 2011 and the options
      to purchase 20,000 shares which were to vest on June 30, 2012 shall be
      cancelled and be of no further force or effect]. Once vested, the
      foregoing options to purchase 10,000 shares of the Employer’s common stock
      which may be exercised until August 12, 2013. None of the options referred
      to in this Section 1.3 may be exercised on a cashless
    basis.

            

    

     

    
      	
              1.4.

            	
              In
      connection with Employee’s receipt of the Shares, Employee represents
      to the Company as follows

            

    

     

    (i)           Employee is
acquiring the Shares for investment purposes for her own account and without a
present intention to distribute the Shares and the Employee will dispose of the
Shares only in accordance with the Securities Act of 1933, as amended (the
“Securities Act”).

    

    (ii)           Employee
understands that the Shares have not been registered under the Securities Act of
1933, as amended (the “Securities Act”) and cannot be resold, except pursuant to
Rule 144 or another exemption from the registration requirements of the
Securities Act.

    

    (iii)           Employee
acknowledges that the certificate(s) representing the Shares will include a
restrictive legend substantially as follows:

    

    The
securities represented by this certificate have not been registered under the
Securities Act of 1933, as amended (the “Act”), and may not be sold, transferred
or otherwise disposed of in the absence of an effective registration statement
under such Act or an opinion of counsel satisfactory to the Company to the
effect that such registration is not required.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    (iv) Employer and its counsel are
entitled to rely on this above referenced representation letter in authorizing
the Employer’s transfer agent to issue certificate(s) for the
Shares.

    

    
      	
              1.5.

            	
              Employer
      agrees that if Employee is made a party, is threatened to be made a party,
      to any action, suit or proceeding, whether civil, criminal,
      administrative, or investigative (a “Proceeding”), by reason of the fact
      that Employee is or was an employee of Employer, or is or was serving at
      the request of Employer as an employee or agent of another corporation,
      partnership, joint venture, trust, or other enterprise, including service
      with respect to clients of Employer, whether or not the basis of such
      Proceeding is Employee’s alleged action in an official capacity while
      serving as an employee, agent or consultant, Employee shall be indemnified
      and held harmless by Employer, to the same extent as the officers and
      directors of the Employer to the fullest extent permitted by law and to
      the extent such proceeding is eligible for coverage under Employer’s
      officer and director liability insurance policy then in effect, against
      all cost, expense, liability, and loss (including, without limitation,
      attorney’s fees, judgments, fines, ERISA excise taxes or other liabilities
      or penalties and amounts paid or to be paid in settlement) reasonably
      incurred or suffered by Employee in connection therewith, and such
      indemnification shall continue as to Employee even if she has ceased to be
      an employee or agent of the Employer and shall inure to the benefit of
      Employee’s heirs, executors and administrators. Employer shall pay in
      cash, as and when due, any and all attorneys’ fees and costs incurred by
      Employee in connection with any dispute or settlement arising from a
      Proceeding covered under this Section
  1.5.  

            

    

     

    
      	
              1.6.

            	
              Employer
      shall pay in cash, as and when due, any and all attorneys’ fees and costs
      incurred by Employee in connection with any dispute or settlement arising
      from her affiliation with Employer , as an employee or as a consultant, or
      as an employee or agent of another corporation, partnership, joint
      venture, trust, or other enterprise, including service with respect to
      clients of Employer, whether or not the basis of such proceeding is
      Employee’s alleged action, Employee shall be indemnified and held harmless
      by Employer, to the same extent as the officers and directors of the
      Company, to the fullest extent legally
  permitted.

            

    

     

    
      	
              2.

            	
              Covenants
      of Employee.

            

    

     

    
      	
              2.1.

            	
              In
      exchange for the promises which Employer makes in this Agreement,
      Employee, her heirs, executors, administrators, successors and assigns
      (referred to collectively as “Releasors”) hereby waive and release
      Employer and any and all of Employer’s past and/or present affiliates,
      officers, directors, members, agents, employees, employee benefit plans
      and their fiduciaries and administrators, and all of its and their
      successors and assigns (referred to collectively as the “Releasees”) from
      all causes of action, suits, debts, dues, liabilities, obligations, costs,
      expenses, liens, damages, judgments, claims and demands of any kind
      whatsoever, at law or in equity, whether or not they are presently known
      to exist, that Releasors has against Releasees arising out of, by reason
      of, or relating in any way whatsoever to any matter, cause or thing from
      any time up to the Effective Date of this
  Agreement..

            

    

     

    
      	
              2.2.

            	
              The
      rights and claims which Employee and other Releasors waive and release
      against Employer and other Releasees include, to every extent allowed by
      law, those arising under the Employee Retirement Income Security Act of
      1974, the Civil Rights Acts of 1866, 1871, 1964 and 1991, the
      Rehabilitation Act of 1973, the Fair Labor Standards Act, the Equal Pay
      Act of 1963, the Vietnam Era Veteran’s Readjustment Assistance Act of
      1974, the Occupational safety and Health Act, the Immigration reform and
      Control Act of 1986, the Americans with Disabilities Act, the Age
      Discrimination in Employment Act of 1967, the Older Worker’s Benefit
      Protection Act, the Florida Civil Rights Act, the Americans with
      Disabilities Act and the Family and Medical Leave Act of 1993, both as
      amended, and the Labor Law of People’s Republic of China, as amended.
      Employee and other Releasors also agree to release Employer and other
      Releasors from any other claim of discrimination, harassment or
      retaliation in employment (whether based on federal, state or local law,
      statutory or decisional), any claim sounding in tort or contract (express
      or implied) and any claim for attorneys’ fees, costs, disbursements and/or
      the like. This is not a complete list, and Employee and other Releasors
      waive and release all similar rights and claims under all other federal,
      state and local discrimination provisions and all other statutory and
      common law causes of action relating in any way to Employee’s employment
      or separation from employment with Employer and its subsidiaries and
      affiliates.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              2.3.

            	
              Employee
      agrees that she has waived any damages and other relief available to her
      (including, without limitation, monetary damages, equitable relief and
      reinstatement) with respect to any claim or cause of action released in
      Sections 2.1. and 2.2. above.  Therefore, Employee and other
      Releasors agree and covenant not to file any suit, charge or complaint
      against Releasees in any court or administrative agency, with regard to
      any claim, demand, liability or obligation released in Sections 2.1. and
      2.2. above. Employee further represents that no claims, complaints,
      charges, or other proceedings are pending in any court, administrative
      agency, commission or other forum relating directly or indirectly to her
      engagement with Employer.  Nothing in this Agreement shall be
      construed to prohibit Employee from filing a charge with or participating
      in any investigation or proceeding conducted by the United States Equal
      Employment Opportunity Commission or a comparable state or local
      agency.  Further, nothing in this Agreement shall be construed
      to prohibit Employee from challenging this Agreement pursuant to the Older
      Workers’ Benefit Protection Act

            

    

     

    
      	
              2.4.

            	
              Except
      for the representations and obligations of Employee created by or arising
      out of this Agreement effective on the Separation Date, Employer, and
      Employer’s subsidiaries and affiliated companies, do hereby release,
      acquit, satisfy and forever discharge and covenant not to sue Employee or
      Employee's descendants, heirs, successors and assigns, and each of them,
      past or present, from any and all manner of action, causes of action,
      rights, liens, agreements, contracts, covenants, obligations, suits,
      claims, debts, dues, sums of monies, costs, expenses, attorneys' fees,
      judgments, orders and liabilities, accounts, covenants, controversies,
      promises, damages, of whatever kind and nature in law or equity or
      otherwise whether now known or unknown, including specifically but not
      limited to, any and all claims arising out of such employment relationship
      Employee had with Employer and the transactions and relationships
      described herein.

            

    

     

    
      	
              2.5.

            	
              Employee
      agrees not to testify for, appear on behalf of, or otherwise assist in any
      way any individual, company, or agency in any claim against Employer,
      except, unless, and only pursuant to a lawful subpoena issued to
      Employee.  If such a subpoena is issued, Employee will
      immediately notify Employer and provide it with a copy of the
      subpoena.

            

    

     

    
      	
              2.6.

            	
              Employee
      understands and agrees that as of the Separation Date, Employee was and is
      no longer authorized to incur any expenses or obligations or liabilities
      on behalf of Employer.

            

    

     

    
      	
              2.7.

            	
              Employee
      acknowledges and agrees that, during the period of Employee’s employment
      by Employer, Employee had access to confidential, proprietary, strategic
      and sensitive information relating to Employer's business and affairs and
      the business and affairs of its affiliates and clients, including, without
      limitation, materials used for identifying clients, client information and
      lists, information concerning ongoing and potential assignments, internal
      operating procedures, business plans, projections, valuations techniques,
      financial models and research data.  Employee also acknowledges
      and agrees that such information is special and unique to Employer and its
      affiliates and clients and Employee has not and will not disclose to any
      other person or entity such information without Employer’s prior written
      consent, except: (a) as may be required pursuant to a valid subpoena, at
      the request of a government agency in connection with any investigation it
      is conducting or as otherwise required by applicable law; and (b) to
      Employee’s financial advisor(s) and/or her attorney, provided that
      Employee first informs them of the confidentiality of this Agreement and
      they agree to maintain its confidentiality. Employee hereby agrees and
      covenants that Employee will not, directly or indirectly, publish,
      disclose or make accessible to any other person, firm, corporation,
      organization or entity, including, without limitation, any member of her
      family, any confidential, proprietary, strategic or sensitive information
      whatsoever relating, directly or indirectly, to Employer's clients,
      including, but not limited to, Employer’s clients’ names, business, or
      affairs or the business or affairs of any of Employer's affiliates or
      clients, that Employee may learn or initiate and develop a business
      relationship with during Employee’s employment by Employer, whether or not
      such information is specifically designated as confidential, proprietary,
      strategic or sensitive.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              2.8.

            	
              Employee
      will not at any time after the Separation Date disclose or use for
      Employee’s own benefit or purposes or the benefit or purposes of any other
      person, firm, partnership, joint venture, association, corporation or
      other business organization, entity or enterprise other than Employer and
      any of its subsidiaries or affiliates, any trade secrets, information,
      data or other confidential information relating to customers, development
      programs, costs, marketing, trading, investment, sales activities,
      promotion, credit and financial data, manufacturing processes, financing
      methods, plans or the business and affairs of Employer, generally, or of
      any subsidiary or affiliate of Employer, however, that the foregoing shall
      not apply to information which is not unique to Employer, or which is
      generally known to the industry or the public other than as a result of
      Employee’s breach of this Agreement.  Employee agrees to return
      to Employer all memoranda, books, papers, plans, information, letters and
      other data, and all copies thereof or therefrom (including electronic
      media containing such information) in any way relating to the business of
      Employer and its affiliates, except that Employee may retain personal
      notes, notebooks and diaries that do not contain confidential information
      of the type described in the preceding sentence. Employee further agrees
      that Employee will not retain or use for Employee’s account at any time
      any trade names, trademark or other proprietary business designation used
      or owned in connection with the business of Employer or its
      affiliates.

            

    

     

    
      	
              2.9.

            	
              Employee
      hereby certifies that Employee has returned to Employer, all of Employer’s
      property, including computer and office equipment, office keys, supplies,
      customer and work files and other related
  materials.

            

    

     

    
      	
              2.10.

            	
              Employee
      agrees and acknowledges that this Agreement does not constitute an
      admission by Employer of any violation of any federal, state, or local
      statute or regulation, or any violation of any of Employee’s rights or of
      any duty owed by Employer to Employee. Employer agrees and acknowledges
      that this Agreement does not constitute an admission by Employee of any
      violation of any federal, state, or local statute or regulation, or any
      violation of any of Employer’s rights or of any duty owed by Employee to
      Employer.

            

    

     

    
      	
              2.11.

            	
              Employee
      hereby agrees to indemnify Employer and its subsidiaries, its affiliates,
      controlling persons, representatives and agents, for any loss, damage,
      claim or expense arising out of her breach of the foregoing
      representations or warranties and covenants. Employee agrees that the
      payments and the benefits provided in Section 1 of this Agreement are in
      full discharge of any and all liabilities and obligations of Employer to
      Employee.

            

    

     

    
      	
              3.

            	
              Miscellaneous.

            

    

     

    
      	
              3.1.

            	
              Employee
      agrees that Employee has not made, and shall not make or solicit, any
      disparaging, denigrating, critical or untrue statements (public or
      private) about Employer, its management or about any other employee of
      Employer, its products, customers, clients, or prospects.  It is
      agreed and understood that any breach of this paragraph by Employee would
      be material.

            

    

     

    
      	
              3.2.

            	
              Employer
      agrees that it shall not make any disparaging, denigrating, critical or
      untrue statements (public or private) about Employee.  It is
      agreed and understood that any breach of this Section 3 by Employer would
      be material.

            

    

     

    
      	
              3.3.

            	
              This
      Agreement shall be interpreted and enforced in accordance with the laws of
      the State of New York. Each of the parties submits to the jurisdiction of
      any provincial or federal court sitting in New York, in any action or
      proceeding arising out of or relating to this Agreement and agrees that
      all claims in respect of the action or proceeding may be heard and
      determined by any such court. Each party also agrees not to bring any
      action or proceeding arising out of or relating to this Agreement in any
      other court. Each of the parties waives any defense of inconvenient forum
      to the maintenance of any action or proceeding so brought and waives any
      bond, surety, or other security that might be required of any other party
      with respect thereto.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              3.4.

            	
              If
      either party initiates proceedings for the other's breach of this
      Agreement, the prevailing party shall recover attorneys' fees and costs,
      including such fees and costs on any enforcement or appeal
      proceedings.

            

    

     

    
      	
              3.5.

            	
              If
      one or more paragraphs of this Agreement are ruled invalid or
      unenforceable, such invalidity or unenforceability shall not affect any
      other provision of the Agreement, which shall remain in full force and
      effect.

            

    

     

    
      	
              3.6.

            	
              This
      Agreement may be modified only by a writing signed by both
      parties.

            

    

     

    
      	
              3.7.

            	
              Both
      parties agree that, unless required by law or by a court of competent
      jurisdiction, this Agreement shall remain confidential and will not be
      used for any purpose other than enforcing its specific terms in any
      proceeding between the parties. If this document must be filed in any
      court proceeding, the person seeking to file it will do so only under
      seal, unless expressly prohibited by the
court.

            

    

     

    
      	
              3.8.

            	
              This
      Agreement may be executed in two counterparts, each of which shall
      constitute an original, but all of which together shall constitute one and
      the same document.

            

    

     

    IN
WITNESS WHEREOF, Employee and Employer have agreed upon and signed this
Agreement as of the date set forth below.

     

    
      
        	EMPLOYEE:	 	EMPLOYER:	 
	 	 	 	 	 
	 	 	 	RINO
      INTERNATIONAL CORPORATION	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Sign 
      	
                /s/
      YI (JENNY) LIU

              	 	By: 
      	/s/ Dejun Zou	 
	 	
                YI
      (JENNY) LIU

              	 	Its:  	
                

                  President and Chief Executive
      Officer

                

              	 
	 	
              	 	 	
              	 
	Date: 
      	August 12, 2010	 	Date: 
      	August
      12, 2010	 

      

    

     

    
      
        
        

      

      
        5Unassociated Document

    NON-QUALIFIED STOCK OPTION
AGREEMENT

    

    Under
The

    RINO
International Corporation 2009 Stock Incentive Plan

    

    AGREEMENT
(“Agreement”),
dated August 12, 2010 by and between RINO International Corporation, a Nevada
corporation (the “Company”), and Yi
(Jenny) Liu (the “Participant”).

     

    Preliminary
Statement

     

    WHEREAS, the Board of
Directors of the Company (the “Board”) has appointed
a committee (the “Committee”) to
administer the RINO International Corporation 2009 Stock Incentive Plan (the
“Plan”). The
Board has authorized this grant of a non-qualified stock option (the “Option”) on June 30,
2009 (the “Grant
Date”) to purchase the number of shares of the Company’s common stock,
par value $0.0001 per share (the “Common Stock”) set
forth below to the Participant, as a Eligible Employee of the Company
(collectively, the Company and all Subsidiaries and Parents of the Company shall
be referred to as the “Company”).

     

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

     

    WHEREAS, on August 12, 2010,
the Company and the Participant entered into a Separation Agreement, which
amended the terms of the Option that was granted on June 30, 2009 (the
“Separation Agreement”).

     

    NOW THEREFORE BE IT, the
parties hereto agree the terms of the Option be amended in entirety as
follows:

     

    1.       Grant of
Option. The Company hereby acknowledges the grant of an Option to
Optionee to purchase 10,000 shares (“Shares”) of its Common Stock on June 30,
2009 in the manner and subject to the conditions provided
hereinafter.

    

    2.      
Vesting and
Exercise.

    

    (a) The
Shares underlying the Option shall vest upon the execution of this Agreement and
shall have an exercise price of $6.15 per share, which is the Fair Market Value
or higher of a share of Common Stock on the Grant Date, or 110% of such Fair
Market Value in the case of a Ten Percent Stockholder as provided in Code
Section 422 (the “Option Exercise Price”). To the extent that the Option has
become vested and is exercisable as provided herein, the Option may thereafter
be exercised by the Participant, in whole or in part, at any time or from time
to time prior to the expiration of the Option as provided herein and in
accordance with Sections 6.3(c) and 6.3(d) of the Plan, including, without
limitation, by the filing of any written form of exercise notice as may be
required by the Committee and payment in full of the Option Exercise Price
multiplied by the number of shares of Common Stock underlying the portion of the
Option exercised. Upon expiration of the Option, the Option shall be canceled
and no longer exercisable.

    

    (b)        [Intentionally
omitted].

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

      

    3.      
Time of Exercise of
Option. Any portion of the Option which has vested may be exercised;
provided, however, such Option
shall expire and terminate upon the first to occur of any of the following
events (the “Expiration Date”):

    

    (a)           
August 12, 2013;

    

    (b)           the
dissolution or liquidation of the Company; or

    

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

    

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

    

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

    

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

    

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

     

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

    

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

    

    6.    
  [Intentionally omitted].

    

    7.      
[Intentionally omitted].

    

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

    

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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

    

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

     

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

    

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

    

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

    

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

    

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

    

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

    

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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

    

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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

     

    
      
        	 	
                RINO
      INTERNATIONAL

                CORPORATION

              	 
	 	      
                a
      Nevada corporation

              	 
	 	 	 	 
	
              	
                By:  
      

              	/s/
      Dejun Zou	 
	 	      
                Its: 
      

              	
                President
      and Chief Executive Officer

              	 
	 	 	
              	 
	 	      
                OPTIONEE

              	 
	 	 	 	 
	 	 	      
                /s/
      Yi (Jenny) Liu

              	 
	 	 	      
                Print
      Name Yi (Jenny) Liu

              	 

      

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

    

    ______________,
20___

    

    RINO
International Corporation

    

    Re: Stock
Option Exercise

    
To Whom
It May Concern:

    

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

    

    The
Optionee hereby represents and agrees as follows:

    

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

    

    2. The
Optionee is a resident of __________.

    

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

    

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

    

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

    

    ___
Optionee elects a Cashless Exercise for __________Option Shares.

    

    OPTIONEE: 

    

    _____________________________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
B

     

    RINO
International 2009 Stock Incentive Plan

     

    SCHEDULE
A

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

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

     

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

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