Document:

China Transinfo Technology Corp.: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2

INDEMNIFICATION AGREEMENT

 This Indemnification Agreement (this “Agreement”), dated as of the 14th day of June, 2010 is made by and between CHINA TRANSINFO TECHNOLOGY CORP., a Nevada corporation (the “Company”), and Xingming
Zhang, an independent director of the Company (the “Indemnitee”). 

RECITALS

 A. The Company and the Indemnitee recognize that the present state of the law is too uncertain to provide the Company’s officers and directors with adequate and reliable advance knowledge or guidance with respect to the legal risks and
potential liabilities to which they may become personally exposed as a result of performing their duties for the Company; 

 B. The Company and the Indemnitee are aware of the substantial growth in the number of lawsuits filed against corporate officers and directors in connection with their activities in such capacities and by reason of their status as such; 

 C. The Company and the Indemnitee recognize that the cost of defending against such lawsuits, whether or not meritorious, is typically beyond the financial resources of most officers and directors of the Company; 

 D. The Company and the Indemnitee recognize that the legal risks and potential liabilities, and the threat thereof, associated with proceedings filed against the officers and directors of the Company bear no reasonable relationship to the amount of
compensation received by the Company’s officers and directors; 

 E. The Company, after reasonable investigation prior to the date hereof, has determined that the liability insurance coverage available to the Company as of the date hereof is inadequate, unreasonably expensive or both. The Company believes,
therefore, that the interest of the Company and its current and future stockholders would be best served by a combination of (i) such insurance as the Company may obtain pursuant to the Company’s obligations hereunder and (ii) a contract with
its officers and directors, including the Indemnitee, to indemnify them to the fullest extent permitted by law (as in effect on the date hereof, or, to the extent any amendment may expand such permitted indemnification, as hereafter in effect)
against personal liability for actions taken in the performance of their duties to the Company; 

 F. Section 78.7502 of the Nevada Revised Statutes empowers Nevada corporations to indemnify their officers and directors and further states that the indemnification provided by Section 78.7502 shall not be deemed exclusive of any other rights to
which those seeking indemnification may be entitled under the articles of incorporation or any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in an official capacity and as to action in another
capacity while holding such office; thus, Section 78.7502 does not by itself limit the extent to which the Company may indemnify persons serving as its officers and directors; 

 G. The Company’s Articles of Incorporation and Bylaws authorize the indemnification of the officers and directors of the Company in excess of that expressly permitted by Section 78.7502; 

 H. The Board of Directors of the Company has concluded that, to retain and attract talented and experienced individuals to serve as officers and directors of the Company and to encourage such individuals to take the business risks necessary for the
success of the Company, it is necessary for the Company to contractually indemnify its officers and directors, and to assume for itself liability for expenses and damages in connection with claims against such officers and directors in connection
with their service to the Company, and has further concluded that the failure to provide such contractual indemnification could result in great harm to the Company and its stockholders; 

 I. The Company desires and has requested the Indemnitee to serve or continue to serve as a director or officer of the Company, free from undue concern for the risks and potential liabilities associated with such services to the Company; and 

 J. The Indemnitee is willing to serve, or continue to serve, the Company, provided, and on the expressed condition, that the Indemnitee is furnished with the indemnification provided for herein. 

AGREEMENT

NOW, THEREFORE, the Company and Indemnitee agree as follows:

	
 	
1. 		
DEFINITIONS.

	

(a) “EXPENSES” means, for the purposes of this Agreement, all direct and
indirect costs of any type or nature whatsoever (including, without limitation, any fees and disbursements of Indemnitee’s counsel, accountants and other experts and other out-of-pocket costs) actually and reasonably incurred by the Indemnitee
in connection with the investigation, preparation, defense or appeal of a Proceeding; provided, however, that Expenses shall not include judgments, fines, penalties or amounts paid in settlement of a Proceeding. 

  (b) “PROCEEDING” means, for the purposes of this Agreement, any threatened, pending or completed action or proceeding, whether civil, criminal, administrative or investigative (including an action brought by or in the right of the
Company) in which Indemnitee may be or may have been involved as a party or otherwise, by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by Indemnitee or of any inaction on his or her
part while acting as such director or officer or by reason of the fact that he or she is or was serving at the request of the Company as a director, officer, employee or agent of another foreign or domestic corporation, partnership, joint venture,
trust or other enterprise, or was a director or officer of the foreign or domestic corporation which was a predecessor corporation to the Company or of another enterprise at the request of such
predecessor corporation, whether or not he or she is serving in such capacity at the time any liability or expense is incurred for which indemnification or reimbursement can be provided under this Agreement. 

2.

AGREEMENT TO SERVE.

 Indemnitee agrees to serve or continue to serve as a director or officer of the Company to the best of his or her abilities at the will of the Company or under separate contract, if such contract exists, for so long as Indemnitee is duly elected or
appointed and qualified or until such time as the Indemnitee tenders his or her resignation in writing.  Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment.

	
 	
3. 		
INDEMNIFICATION.

	

(a) THIRD PARTY PROCEEDINGS. The Company shall indemnify
Indemnitee against Expenses, judgments, fines, penalties or amounts paid in settlement (if the settlement is approved in advance by the Company) actually and reasonably incurred by Indemnitee in connection with a Proceeding (other than a Proceeding
by or in the right of the Company) if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to
believe Indemnitee’s conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of NOLO CONTENDERE or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act
in good faith and in a manner which Indemnitee reasonably believed to be in the best interests of the Company, or, with respect to any criminal Proceeding, had no reasonable cause to believe that Indemnitee's conduct was unlawful. 

  (b) PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY. To the fullest extent permitted by law, the Company shall indemnify Indemnitee against Expenses and amounts paid in settlement, actually and reasonably incurred by Indemnitee in connection with a
Proceeding by or in the right of the Company to procure a judgment in its favor if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the Company and its stockholders. Notwithstanding the
foregoing, no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged liable to the Company in the performance of Indemnitee’s duty to the Company and its stockholders unless and
only to the extent that the court in which such action or Proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for Expenses and
then only to the extent that the court shall determine. 

  (c) SCOPE.  Notwithstanding any other provision of this Agreement but subject to Section 14(b), the Company shall indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically
authorized by other provisions of this Agreement, the Company’s Articles of Incorporation, the Company’s Bylaws or by statute. 

4. 

LIMITATIONS ON INDEMNIFICATION.

 Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

  (a) EXCLUDED ACTS. To indemnify Indemnitee for any acts or omissions or transactions from which a director may not be relieved of liability under applicable law; 

  (b) EXCLUDED INDEMNIFICATION PAYMENTS.  To indemnify or advance Expenses in violation of any prohibition or limitation on indemnification under the statutes, regulations or rules promulgated by any state or federal regulatory agency having
jurisdiction over the Company. 

  (c) CLAIMS INITIATED BY INDEMNITEE.  To indemnify or advance Expenses to Indemnitee with respect to Proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to Proceedings brought to
establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 78.7502 of the Nevada Revised Statutes, but such indemnification or advancement of Expenses may be provided by
the Company in specific cases if the Board of Directors has approved the initiation or bringing of such suit; 

  (d) LACK OF GOOD FAITH.  To indemnify Indemnitee for any Expenses incurred by the Indemnitee with respect to any Proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each
of the material assertions made by the Indemnitee in such Proceeding was not made in good faith or was frivolous;

  (e) INSURED CLAIMS. To indemnify Indemnitee for Expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) which have been paid directly to or
on behalf of Indemnitee by an insurance carrier under a policy of directors’ and officers’ liability insurance maintained by the Company or any other policy of insurance maintained by the Company or Indemnitee; or 

  (f) CLAIMS UNDER SECTION 16(b).  To indemnify Indemnitee for Expenses and the payment of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or
any similar successor statute.

 5. 

 DETERMINATION OF RIGHT TO INDEMNIFICATION. 

 Upon receipt of a written claim addressed to the Board of Directors for indemnification pursuant to Section 3, the Company shall determine by any of the methods set forth in Section 78.751 of the Nevada Revised Statutes whether Indemnitee has met
the applicable standards of
conduct which makes it permissible under applicable law to indemnify Indemnitee. If a claim under Section 3 is not paid in full by the Company within ninety (90) days after such written claim has been received by the Company, the Indemnitee may at
any time thereafter bring suit against the Company to recover the unpaid amount of the claim and, unless such action is dismissed by the court as frivolous or brought in bad faith, the Indemnitee shall be entitled to be paid also the expense of
prosecuting such claim. The court in which such action is brought shall determine whether Indemnitee or the Company shall have the burden of proof concerning whether Indemnitee has or has not met the applicable standard of conduct. 

6. 

ADVANCEMENT AND REPAYMENT OF EXPENSES.

 Subject to Section 4 hereof, the Expenses incurred by Indemnitee in defending and investigating any Proceeding shall be paid by the Company in advance of the final disposition of such Proceeding within 30 days after receiving from Indemnitee the
copies of invoices presented to Indemnitee for such Expenses, if Indemnitee shall provide an undertaking to the Company to repay such amount to the extent it is ultimately determined that Indemnitee is not entitled to indemnification.  In
determining whether or not to make an advance hereunder, the ability of Indemnitee to repay shall not be a factor.  Notwithstanding the foregoing, in a proceeding brought by the Company directly, in its own right (as distinguished from an action
bought derivatively or by any receiver or trustee), the Company shall not be required to make the advances called for hereby if the Board of Directors determines, in its sole discretion, that it does not appear that Indemnitee has met the standards
of conduct which make it permissible under applicable law to indemnify Indemnitee and the advancement of Expenses would not be in the best interests of the Company and its stockholders. 

7.

PARTIAL INDEMNIFICATION.

 If the Indemnitee is entitled under any provision of this Agreement to indemnification or advancement by the Company of some or a portion of any Expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines,
penalties, and amounts paid in settlement) incurred by him in the investigation, defense, settlement or appeal of a Proceeding, but is not entitled to indemnification or advancement of the total amount thereof, the Company shall nevertheless
indemnify or pay advancements to the Indemnitee for the portion of such Expenses or liabilities to which the Indemnitee is entitled.

8.  

NOTICE TO COMPANY BY INDEMNITEE.

 Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof; provided,
however, that any delay in so notifying the Company shall not constitute a waiver by Indemnitee of her rights hereunder. The written notification to the Company shall be addressed to the Board of Directors and shall include a description of the
nature of the Proceeding and the facts underlying the Proceeding and be accompanied by copies of any documents filed with the court in which the Proceeding is pending. In addition, Indemnitee shall give the Company such information and cooperation
as it
may reasonably require and as shall be within Indemnitee’s power.

	
 	
 	
 
	
 	
9. 		
MAINTENANCE OF LIABILITY INSURANCE.

	

(a) Subject to Section 4 hereof, the Company hereby agrees that so long as
Indemnitee shall continue to serve as a director or officer of the Company and thereafter so long as Indemnitee shall be subject to any possible Proceeding, the Company, subject to Section 9(b), shall use reasonable commercial efforts to obtain and
maintain in full force and effect directors’ and officers’ liability insurance (“D&O Insurance”) which provides Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’
directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer. 

  (b) Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain D&O Insurance if the Company determines in good faith that such insurance is not reasonably available, the premium costs for such insurance are
disproportionate to the amount of coverage provided, the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or the Indemnitee is covered by similar insurance maintained by a subsidiary or parent of
the Company. 

  (c) If, at the time of the receipt of a notice of a claim pursuant to Section 8 hereof, the Company has D&O Insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with
the terms of such policies.

10.

DEFENSE OF CLAIM.

 In the event that the Company shall be obligated under Section 6 hereof to pay the Expenses of any Proceeding against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such Proceeding, with counsel approved by
Indemnitee, which approval shall not be unreasonably withheld, upon the 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, provided that (i) Indemnitee shall have the right to employ counsel in any
such Proceeding at Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, or (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between
the Company and the Indemnitee in the conduct of such defense or (C) the Company shall not, in fact, have employed counsel to assume the defense of such Proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of
the Company. 

11.

ATTORNEYS' FEES.

 In the event that Indemnitee or the Company institutes an action to enforce or interpret any terms of this Agreement, the Company shall reimburse Indemnitee for all of the Indemnitee’s reasonable fees and expenses in bringing and pursuing such
action or defense, unless as part of such action or defense, a court of competent jurisdiction determines that the material assertions made by Indemnitee as a basis for such action or defense were not made in good faith or were frivolous. 

12.

CONTINUATION OF OBLIGATIONS.

 All agreements and obligations of the Company contained herein shall continue during the period the Indemnitee is a director or officer of the Company, or is or was serving at the request of the Company as a director, officer, fiduciary, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise, and shall continue thereafter so long as the Indemnitee shall be subject to any possible proceeding by reason of the fact that Indemnitee served in any capacity
referred to herein. 

13.

SUCCESSORS AND ASSIGNS.

 This Agreement establishes contract rights that shall be binding upon, and shall inure to the benefit of, the successors, assigns, heirs and legal representatives of the parties hereto. 

	
 	
14. 		
NON-EXCLUSIVITY.

	

(a) The provisions for indemnification and advancement of expenses set forth
in this Agreement shall not be deemed to be exclusive of any other rights that the Indemnitee may have under any provision of law, the Company’s Articles of Incorporation or Bylaws, the vote of the Company’s stockholders or disinterested
directors, other agreements or otherwise, both as to action in the Indemnitee’s official capacity and action in another capacity while occupying the Indemnitee’s position as a director or officer of the Company. 

  (b) In the event of any changes, after the date of this Agreement, in any applicable law, statute, or rule which expand the right of a Nevada corporation to indemnify its officers and directors, the Indemnitee's rights and the Company’s
obligations under this Agreement shall be expanded to the full extent permitted by such changes. In the event of any changes in any applicable law, statute or rule, which narrow the right of a Nevada corporation to indemnify a director or officer,
such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties’ rights and obligations hereunder. 

15.

EFFECTIVENESS OF AGREEMENT.

 To the extent that the indemnification permitted under the terms of certain provisions of this Agreement exceeds the scope of the indemnification provided for in the Nevada Revised Statutes, such provisions shall not be effective unless and until
the Company’s Articles of

Incorporation authorize such additional rights of indemnification.  In all other respects, the balance of this Agreement shall be effective as of the date set forth on the first page and may apply to acts of omissions of Indemnitee which occurred
prior to such date if Indemnitee was an officer, director, employee or other agent of the Company, 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, at the time such act or omission occurred. 

16.

SEVERABILITY.

 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 court order, to perform its obligations under this
Agreement shall not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as provided in this Section 16. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be
enforceable in accordance with its terms. 

17.

GOVERNING LAW.

 This Agreement shall be interpreted and enforced in accordance with the laws of the State of Nevada, without reference to its conflict of law principals.  To the extent permitted by applicable law, the parties hereby waive any provisions of law
which render any provision of this Agreement unenforceable in any respect.

18.

NOTICE.

 All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for by the party addressee or (ii) if mailed by certified or registered mail with
postage prepaid, on the third business day after the mailing date.  Addresses for notice to either party are as shown on the signature page of this Agreement, or as subsequently modified by written notice. 

19.

MUTUAL ACKNOWLEDGMENT.

 Both the Company and Indemnitee acknowledge that in certain instances, federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise.  Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to undertake with the appropriate state or federal regulatory agency to submit for approval any request for indemnification, and has undertaken or may be required in the
future to undertake with the Securities and Exchange Commission 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. 

 20. 

 COUNTERPARTS. 

 This Agreement may be executed in one or more counterparts, each of which shall constitute an original. 

 21. 

 AMENDMENT AND TERMINATION. 

 No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both parties hereto. 

[Signature Page Follows]

 

 

 

 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year set forth above. 

	
COMPANY:
	
INDEMNITEE:

	
 
	
 

	
CHINA TRANSINFO TECHNOLOGY CORP.
	
 

	
 
	
 

	
By: /s/ Shudong Xia                                  

	
	
By: Xingming Zhang 
	

	
          Name: Shudong Xia
	
	
 
	

	
          Title: Chief Executive Officer
	
	
Xingming Zhang
	

	
 
	
	
 
	

	
 
	
	
 
	

	
Address: 9th Floor Vision Building
	
	
Address: Room1204, Bld.22, Lane29,
	

	
                        No.39 Xueyuanlu, Haidian District
	
	
                        Lingling Road, Xuhui District
	

	
                        Beijing, China 100191
	
	
                        Shanghai, China 200032China TransInfo Technology Corp.: Exhibit 10.3 - Filed by newsfilecorp.com

Exhibit 10.3

CHINA TRANSINFO TECHNOLOGY CORP.

2009 EQUITY INCENTIVE PLAN

STOCK OPTION
AGREEMENT 

Unless otherwise defined herein, the
terms in the Stock Option Agreement (the “Option Agreement”) have the same
meanings as defined in the China TransInfo Technology Corp. 2009 Equity
Incentive Plan (the “Plan”). 

	I. 	NOTICE OF STOCK OPTION
      GRANT 
	  	Optionee: 	Xingming Zhang 
	  	Address: 	Room1204, Bld.22, Lane29, Lingling Road ,Xuhui
      District, Shanghai, China 200032 

You have been granted an Option to
purchase Common Stock of the Company, subject to the terms and conditions of the
Plan and this Option Agreement, as follows: 

	
    Grant Date: 
	June
      14, 2010 
	
    Vesting Commencement Date: 
	June
      14, 2010 
	
    Exercise Price per Share: 
	$6.03
	
    Total Number of Shares Granted: 
	30,000 
	
    Total Exercise Price: 
	$180,900 
	
    Type of Option: 
	Nonstatutory Stock Option
	
    Expiration Date: 
	June
      14, 2015 

Vesting Schedule:

 The Option shall vest in equal
installments on a quarterly basis over a three-year period beginning on the Date
of Grant.

Termination Period:

To the extent vested, this Option will
be exercisable for three (3) months after Optionee ceases to be a Service
Provider, unless termination is due to Optionee’s death or Disability, in which
case this Option will be exercisable for twelve (12) months after
Optionee ceases to be a Service Provider. Notwithstanding the foregoing
sentence, in no event may this Option be exercised after any termination of the Optionee as a Service Provider
determined by the Company’s Board to be for Cause or after the Expiration Date
as provided above and this Option may be subject to earlier termination as
provided in the Plan.

“Cause” has the meaning ascribed to
such term or words of similar import in Optionee’s written employment or service
contract with the Company or its Parent or any Subsidiary and, in the absence of
such agreement or definition, means Optionee’s (i) conviction of, or plea of
nolo contendere to, a felony or any other crime involving moral turpitude; (ii)
fraud on or misappropriation of any funds or property of the Company or its
subsidiaries, or any affiliate, customer or vendor; (iii) personal dishonesty,
incompetence, willful misconduct, willful violation of any law, rule or
regulation (other than minor traffic violations or similar offenses), or breach
of fiduciary duty which involves personal profit; (iv) willful misconduct in
connection with Optionee’s duties or willful failure to perform Optionee’s
responsibilities in the best interests of the Company or its subsidiaries; (v)
illegal use or distribution of drugs; (vi) violation of any rule, regulation,
procedure or policy of the Company or its subsidiaries; or (vii) breach of any
provision of any employment, non-disclosure, non-competition, non-solicitation
or other similar agreement executed by Optionee for the benefit of the Company
or its subsidiaries, all as determined by the Company’s Board, which
determination will be conclusive.

II. 

AGREEMENT 

1. Grant of Option. The
Administrator grants to the Optionee named in the Notice of Stock Option Grant
in Part I of this Option Agreement, an Option to purchase the number of Shares
set forth in the Notice of Stock Option Grant, at the exercise price per Share
set forth in the Notice of Stock Option Grant (the “Exercise Price”), and
subject to the terms and conditions of the Plan, which is incorporated herein by
reference. In the event of a conflict between the terms and conditions of the
Plan and this Option Agreement, the terms and conditions of the Plan prevail.

If designated in the Notice of Stock
Option Grant as an Incentive Stock Option, this Option is intended to qualify as
an Incentive Stock Option as defined in Code section 422. Nevertheless, to the
extent that it exceeds the $100,000 rule of Code section 422(d), this Option
will be treated as a Nonstatutory Stock Option. 

2. Exercise of Option. 

(a) Right to Exercise. This
Option is exercisable during its term in accordance with the Vesting Schedule
set out in the Notice of Stock Option Grant and with the applicable provisions
of the Plan and this Option Agreement. 

(b) Method of Exercise. This
Option is exercisable by (i) delivery of an exercise notice in the form attached
as Exhibit A (the “Exercise Notice”) or in a manner and pursuant to
procedures as the Administrator may determine, which will state the election to
exercise the Option, the number of Shares with respect to which the Option is
being exercised, and other representations and agreements as may be required by
the Company and (ii) paying the Company in full the aggregate Exercise Price as
to all Shares being acquired, together with any applicable tax withholding.

-2- 

This Option will be deemed to be
exercised upon receipt by the Company of a fully executed Exercise Notice
accompanied by the aggregate Exercise Price, together with any applicable tax
withholding.

No Shares will be issued pursuant to
the exercise of an Option unless the issuance and exercise of Shares complies
with Applicable Laws. Assuming compliance, for income tax purposes the Shares
will be considered transferred to the Optionee on the date on which the Option
is exercised with respect to the Shares.

3. Method of Payment. The
aggregate Exercise Price may be paid by any of the following, or a combination
thereof, at the election of the Optionee: 

	 	(a) 	
      cash;

	 	 	
     

	 	(b) 	
      check;

	 	 	
     

	 	(c) 	
      promissory note;

	 	 	
     

	 	(d) 	
      other Shares, provided Shares have a Fair Market Value on
      the date of surrender equal to the aggregate exercise price of the Shares
      as to which said Option will be exercised;

	 	 	
     

	 	(e) 	
    by asking the Company to withhold Shares from the total
      Shares to be delivered upon exercise equal to the number of Shares having
      a value equal to the aggregate Exercise Price of the Shares being
      acquired; 

	 	 	
       
	 	(f) 	
      any combination of the foregoing methods of payment;
      or

	 	 	
     

	 	(g) 	
      such other consideration and method of payment for the
      issuance of Shares to the extent permitted by Applicable
  Laws.

4. Restrictions on Exercise.
This Option may not be exercised (a) until such time as the Plan has been
approved by the stockholders of the Company, or (b) if the issuance of such
Shares upon such exercise or the method of payment of consideration for such
shares would constitute a violation of any Applicable Laws. The Company will be
relieved of any liability with respect to any delayed issuance of shares or its
failure to issue shares if such delay or failure is necessary to comply with
Applicable Laws. 

5. Non-Transferability of
Option. This Option may not be transferred in any manner otherwise than by
will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by Optionee. The terms of the Plan and this Option
Agreement are binding upon the executors, administrators, heirs, successors and
assigns of the Optionee. 

6. Term of Option. This Option
may be exercised only within the term set out in the Notice of Stock Option
Grant, and may be exercised during the term only in accordance with the Plan and
the terms of this Option. 

7. Tax Obligations.

-3-

(a) Withholding Taxes. Optionee
agrees to arrange for the satisfaction of all Federal, state, local and foreign
income and employment tax withholding requirements applicable to the Option
exercise. Optionee acknowledges and agrees that the Company may refuse to honor
the exercise and refuse to deliver the Shares if withholding amounts are not
delivered at the time of exercise. 

(b) Notice of Disqualifying
Disposition of ISO Shares. If the Option granted to Optionee is an ISO, and
if Optionee sells or otherwise disposes of any of the Shares acquired pursuant
to the ISO on or before the later of (i) the date two (2) years after the Grant
Date, or (ii) the date one (1) year after the date of exercise, the Optionee
must immediately notify the Company of the disposition in writing. Optionee
agrees that Optionee may be subject to income tax withholding by the Company on
the compensation income recognized by the Optionee.

(c) Code Section 409A. Under
Code section 409A, an Option that vests after December 31, 2004 that was granted
with a per Share exercise price that is determined by the Internal Revenue
Service (the “IRS”) to be less than the Fair Market Value of a Share on the
Grant Date (a “discount option”) may be considered deferred compensation. An
Option that is a discount option may result in (i) income recognition by the
Optionee prior to the exercise of the Option, (ii) an additional twenty percent
(20%) tax, and (iii) potential penalty and interest charges. Optionee
acknowledges that the Company cannot and has not guaranteed that the IRS will
agree that the per Share Exercise Price of this Option equals or exceeds Fair
Market Value of a Share on the Grant Date in a later examination. Optionee
agrees that if the IRS determines that the Option was granted with a per Share
exercise price that was less than the Fair Market Value of a Share on the Grant
Date, Optionee will be solely responsible for any and all resulting tax
consequences.

8. No Guarantee of Continued
Service. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES
PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A
SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY
EMPLOYING OR RETAINING OPTIONEE) AND NOT THROUGH THE ACT OF BEING HIRED, BEING
GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER. OPTIONEE FURTHER ACKNOWLEDGES
AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER
AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR
IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING
PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH
OPTIONEE’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY
EMPLOYING OR RETAINING OPTIONEE) TO TERMINATE OPTIONEE’S RELATIONSHIP AS A
SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE. 

9. Notices. All notices or other
communications which are required or permitted hereunder will be in writing and
sufficient if (i) personally delivered or sent by telecopy, (ii) sent by
nationally-recognized overnight courier or (iii) sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as follows: 

if to the Optionee, to the address (or
telecopy number) set forth on the Notice of Stock Option Grant; and 

-4-

if to the Company, to the attention of the President at the
address set forth below:

China TransInfo Technolgoy Corp.
9th Floor, Vision
Building, No. 39 Xueyuanlu,
Haidian District, Beijing, China 100191

or to any other address as the party to whom notice is to be
given may have furnished to the other party in writing in accordance herewith.
Any communication will be deemed to have been given (i) when delivered, if
personally delivered, or when telecopied, if telecopied, (ii) on the first
Business Day (as hereinafter defined) after dispatch, if sent by
nationally-recognized overnight courier and (iii) on the fourth Business Day
following the date on which the piece of mail containing the communication is
posted, if sent by mail. As used herein, “Business Day” means a day that is not
a Saturday, Sunday or a day on which banking institutions in the city to which
the notice or communication is to be sent are not required to be open. 

10. Specific Performance.
Optionee expressly agrees that the Company will be irreparably damaged if the
provisions of this Option Agreement and the Plan are not specifically enforced.
Upon a breach or threatened breach of the terms, covenants and/or conditions of
this Option Agreement or the Plan by the Optionee, the Company will, in addition
to all other remedies, be entitled to a temporary or permanent injunction,
without showing any actual damage, and/or decree for specific performance, in
accordance with the provisions hereof and thereof. The Administrator has the
power to determine what constitutes a breach or threatened breach of this Option
Agreement or the Plan. The Administrator’s determinations will be final and
conclusive and binding upon the Optionee. 

11. No Waiver. No waiver of any
breach or condition of this Option Agreement will be deemed to be a waiver of
any other or subsequent breach or condition, whether of like or different
nature. 

12. Optionee Undertaking. The
Optionee agrees to take whatever additional actions and execute whatever
additional documents the Company may in its reasonable judgment deem necessary
or advisable in order to carry out or effect one or more of the obligations or
restrictions imposed on the Optionee pursuant to the express provisions of this
Option Agreement. 

13. Modification of Rights. The
rights of the Optionee are subject to modification and termination in certain
events as provided in this Option Agreement and the Plan. 

14. Governing Law. This
Agreement is governed by, and construed in accordance with, the laws of the
State of Nevada, without giving effect to its conflict or choice of law
principles that might otherwise refer construction or interpretation of this
Agreement to the substantive law of another jurisdiction.

15. Counterparts; Facsimile
Execution. This Option Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original, but all of which
together constitute one and the same instrument. Facsimile execution and
delivery of this Option Agreement is legal, valid and binding execution and
delivery for all purposes. 

-5-

16. Entire Agreement. The Plan,
this Option Agreement, and upon execution, the Exercise Notice, constitute the
entire agreement of the parties with respect to the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the Company
and Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee’s interest except by means of a writing signed by the
Company and Optionee. 

17. Severability. In the event
one or more of the provisions of this Option Agreement should, for any reason,
be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability will not affect any other provisions of this
Option Agreement, and this Option Agreement will be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

18. WAIVER OF JURY TRIAL. THE
OPTIONEE EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS OPTION AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN. 

Optionee acknowledges receipt of a copy
of the Plan and represents that he or she is familiar with the terms and
provisions thereof, and accepts this Option subject to all of the terms and
provisions thereof. Optionee has reviewed the Plan and this Option in their
entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Option and fully understands all provisions of the Option.
Optionee agrees to accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions arising under the Plan
or this Option. Optionee further agrees to notify the Company upon any change in
the residence address indicated below. 

	OPTIONEE 	CHINA TRANSINFO TECHNOLOGY CORP. 
	
    	 
	Signature          /s/ Xingming Zhang                           
    
    	By                     /s/ Shudong Xia                                                  
     
	 	 
	Print Name        Xingming Zhang                                
     	Print Name     
       Shudong Xia                                                        
     
	 	 
	Residence Address
    __________________________	Title         
              President and Chief Executive Officer              
     
	 
                                        __________________________
	 

-6-

EXHIBIT A

2009 EQUITY INCENTIVE PLAN

EXERCISE NOTICE

China TransInfo Technology Corp.
[Address] 

Attention: _______________,_________________

1. Exercise of Option. Effective
as of today, _____________, _____, the undersigned (“Optionee”) elects to
exercise Optionee’s option to purchase _________shares of the Common Stock (the
“Shares”) of China TransInfo Technology Corp. (the “Company”) under and pursuant
to the China TransInfo Technology Corp. 2009 Equity Incentive Plan (the “Plan”)
and the Stock Option Agreement dated ____________, ____ (the “Option
Agreement”). 

2. Delivery of Payment. Optionee
herewith delivers to the Company the full purchase price of the Shares, as set
forth in the Option Agreement, and any and all withholding taxes due in
connection with the exercise of the Option. 

3. Representations of Optionee.
Optionee acknowledges that Optionee has received, read and understood the Plan
and the Option Agreement and agrees to abide by and be bound by their terms and
conditions. 

4. Rights as Stockholder. Until
the issuance of the Shares (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder exists with
respect to the Optioned Stock, notwithstanding the exercise of the Option.
Subject to the requirements of Section 6 below, the Shares will be issued to the
Optionee as soon as practicable after the Option is exercised in accordance with
the Option Agreement. No adjustment will be made for a dividend or other right
for which the record date is prior to the date of issuance except as provided in
the Plan. 

5. Tax Consultation. Optionee
understands that Optionee may suffer adverse tax consequences as a result of
Optionee’s purchase or disposition of the Shares. Optionee represents that
Optionee has consulted with any tax consultants Optionee deems advisable in
connection with the purchase or disposition of the Shares and that Optionee is
not relying on the Company for any tax advice. 

6. Refusal to Transfer. The
Company will not (i) transfer on its books any Shares that have been sold or
otherwise transferred in violation of any of the provisions of this Exercise
Notice, or (ii) be required to treat as owner of such Shares or to
accord the right to vote or pay dividends to any purchaser or other transferee
to whom such Shares have been so transferred. 

7. Successors and Assigns. The
Company may assign any of its rights under this Exercise Notice to single or
multiple assignees, and this Exercise Notice inures to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Exercise Notice is binding upon Optionee and his or her
heirs, executors, administrators, successors and assigns. 

8. Interpretation. Any dispute
regarding the interpretation of this Exercise Notice will be submitted by
Optionee or by the Company forthwith to the Administrator for review at its next
regular meeting. The resolution of disputes by the Administrator will be final
and binding on all parties. 

9. Governing Law; Severability.
This Exercise Notice is be governed by, and construed in accordance with, the
laws of the State of Nevada, without giving effect to its conflict or choice of
law principles that might otherwise refer construction or interpretation of this
Exercise to the substantive law of another jurisdiction. In the event that any
provision hereof becomes or is declared by a court of competent jurisdiction to
be illegal, unenforceable or void, this Exercise Notice will continue in full
force and effect. 

10. Notices. Any notice required
or permitted hereunder will be provided in writing and deemed effective if
provided in the manner specified in the Option Agreement. 

11. Further Instruments. The
parties agree to execute any further instruments and to take any further action
as may be reasonably necessary to carry out the purposes and intent of the
Option Agreement and this Exercise Notice. 

-2-

12. Entire Agreement. The Plan
and Option Agreement are incorporated herein by reference. This Exercise Notice,
the Plan, and the Option Agreement constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee’s interest except by means of a writing signed by the Company and
Optionee. 

	Submitted by: 	Accepted by: 
	OPTIONEE 	CHINA TRANSINFO TECHNOLOGY CORP.

	___________________________________	___________________________________
	Signature 	By 
	

    ___________________________________

    Print Name 	

    ___________________________________

    Print Name 
	  	

    ___________________________________

    Title 
	Address: 	

    Address: 
	___________________________________	___________________________________
	  	  
	___________________________________	___________________________________
	 	 
	___________________________________	Date Received 

 

-3-

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