As filed with the Securities and Exchange Commission on December 30, 2008
Registration No. 333-151271
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
(Exact name of registrant as specified in its charter)
|(State or other jurisdiction of
|incorporation or organization)
21/F, Yinhai Building
No. 299 Yanjiang Zhong Road
Guangzhou, Guangdong 510110
Peoples Republic of China
(Address of Principal Executive Offices)
CNinsure Inc. Share Incentive Plan
(as amended and restated effective December 18, 2008)
(Full title of the plan)
CT Corporation System
111 Eighth Avenue
New York, New York 10011
(Name and address of agent for service)
(Telephone number, including area code, agent for service)
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated
filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer o
||Accelerated filer o
Non-accelerated filer þ (Do not check if a smaller reporting company)
||Smaller reporting company o
||David T. Zhang
Chief Executive Officer
||Latham & Watkins LLP
||41st Floor, One Exchange Square
21/F, Yinhai Building
||8 Connaught Place, Central
No. 299 Yanjiang Zhong Road
||Hong Kong S.A.R., China
Guangzhou, Guangdong 510110
Peoples Republic of China
(86 20) 6122-2777
TABLE OF CONTENTS
CNinsure Inc. hereby amends its registration statement on Form S-8 (Registration No.
333-151271) by filing this Post-Effective Amendment No. 1 to reflect the amendment and restatement
of the CNinsure Inc. Share Incentive Plan. The amended and restated CNinsure Inc. Share Incentive
Plan is filed herewith as Exhibit 99.1 and replaces Exhibit 99.1 of the initial registration
statement. No additional securities are being registered.
Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this Post-Effective Amendment No. 1 to the Registration
Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Guangzhou,
China, on December 30, 2008.
||/s/ Yinan Hu
||Chairman and Chief Executive Officer
Pursuant to the requirements of the Securities Act, this Registration Statement has been
signed by the following persons in the capacities and on the dates indicated.
|/s/ Yinan Hu
Chairman and Chief Executive Officer
(principal executive officer)
||December 30, 2008
Chief Financial Officer
(principal financial and accounting officer)
||December 30, 2008
Director and President
||December 30, 2008
||December 30, 2008
||December 30, 2008
||December 30, 2008
Allen Warren Lueth
||December 30, 2008
|/s/ Mengbo Yin
||December 30, 2008
Name: Donald J. Puglisi
Title: Managing Director, Puglisi &
Authorized Representative in the
||December 30, 2008
||/s/ Yinan Hu
||CNinsure Inc. Share Incentive Plan (as amended and restated
effective December 18, 2008)
||Power of Attorney
SHARE INCENTIVE PLAN
(Amended and Restated Effective December 18, 2008)
The purpose of this CNinsure Inc. Share Incentive Plan (the Plan) is to promote the
success and enhance the value of CNinsure Inc., a company formed under the laws of the Cayman
Islands (the Company) by linking the personal interests of the members of the Board,
Employees, and Consultants to those of the Company shareholders and by providing such individuals
with an incentive for outstanding performance to generate superior returns to Company shareholders.
The Plan is further intended to provide flexibility to the Company in its ability to motivate,
attract, and retain the services of members of the Board, Employees, and Consultants upon whose
judgment, interest, and special effort the successful conduct of the Companys operation is largely
DEFINITIONS AND CONSTRUCTION
Wherever the following terms are used in the Plan, they shall have the meanings specified
below, unless the context clearly indicates otherwise. The singular pronoun shall include the
plural where the context so indicates.
2.1 Applicable Laws means the legal requirements relating to the Plan and the Awards
under applicable provisions of the corporate, securities, tax and other laws, rules, regulations
and government orders, and the rules of any applicable stock exchange or national market system, of
any jurisdiction applicable to Awards granted to residents therein.
2.2 Award means an Option, Restricted Share or Restricted Share Units award granted
to a Participant pursuant to the Plan.
2.3 Award Agreement means any written agreement, contract, or other instrument or
document evidencing an Award, including through electronic medium.
2.4 Board means the Board of Directors of the Company.
2.5 Change in Control means a change in ownership or control of the Company after
the Registration Date effected through either of the following transactions:
(a) the direct or indirect acquisition by any person or related group of persons (other than
an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a
person that directly or indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
securities possessing more than fifty percent (50%) of the total combined voting power of the
Companys outstanding securities pursuant to a tender or exchange offer made directly to the
Companys shareholders which a majority of the Incumbent Board (as defined below) who are not
affiliates or associates of the offeror under Rule 12b-2 promulgated under the Exchange Act do not
recommend such shareholders accept, or
(b) the individuals who, as of the Effective Date, are members of the Board (the Incumbent
Board), cease for any reason to constitute at least fifty percent (50%) of the Board; provided
that if the election, or nomination for election by the Companys shareholders, of any new member
of the Board is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new
member of the Board shall be considered as a member of the Incumbent Board.
2.6 Code means the Internal Revenue Code of 1986 of the United States, as amended.
2.7 Committee means the committee of the Board described in Article 9.
2.8 Consultant means any consultant or adviser if: (a) the consultant or adviser
renders bona fide services to a Service Recipient; (b) the services rendered by the consultant or
adviser are not in connection with the offer or sale of securities in a capital-raising transaction
and do not directly or indirectly promote or maintain a market for the Companys securities; and
(c) the consultant or adviser is a natural person who has contracted directly with the Service
Recipient to render such services.
2.9 Corporate Transaction means any of the following transactions, provided,
however, that the Committee shall determine under (d) and (e) whether multiple transactions are
related, and its determination shall be final, binding and conclusive:
(a) an amalgamation, arrangement or consolidation or scheme of arrangement in which the
Company is not the surviving entity, except for a transaction the principal purpose of which is to
change the jurisdiction in which the Company is incorporated;
(b) the sale, transfer or other disposition of all or substantially all of the assets of the
(c) the complete liquidation or dissolution of the Company;
(d) any reverse takeover or series of related transactions culminating in a reverse takeover
(including, but not limited to, a tender offer followed by a reverse takeover) in which the Company
is the surviving entity but (A) the Shares of the Company outstanding
immediately prior to such takeover are converted or exchanged by virtue of the takeover into
other property, whether in the form of securities, cash or otherwise, or (B) in which securities
possessing more than fifty percent (50%) of the total combined voting power of the Companys
outstanding securities are transferred to a person or persons different from those who held such
securities immediately prior to such takeover or the initial transaction culminating in such
takeover, but excluding any such transaction or series of related transactions that the Committee
determines shall not be a Corporate Transaction; or
(e) acquisition in a single or series of related transactions by any person or related group
of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities possessing more
than fifty percent (50%) of the total combined voting power of the Companys outstanding securities
but excluding any such transaction or series of related transactions that the Committee determines
shall not be a Corporate Transaction.
2.10 Disability means that the Participant qualifies to receive long-term disability
payments under the Service Recipients long-term disability insurance program, as it may be
amended from time to time, to which the Participant provides services regardless of whether the
Participant is covered by such policy. If the Service Recipient to which the Participant provides
service does not have a long-term disability plan in place, Disability means that a Participant
is unable to carry out the responsibilities and functions of the position held by the Participant
by reason of any medically determinable physical or mental impairment for a period of not less than
ninety (90) consecutive days. A Participant will not be considered to have incurred a Disability
unless he or she furnishes proof of such impairment sufficient to satisfy the Committee in its
2.11 Effective Date shall have the meaning set forth in Section 10.1.
2.12 Employee means any person, including an officer or member of the Board of the
Company, any Parent or Subsidiary of the Company, who is in the employ of a Service Recipient,
subject to the control and direction of the Service Recipient as to both the work to be performed
and the manner and method of performance. The payment of a directors fee by a Service Recipient
shall not be sufficient to constitute employment by the Service Recipient.
2.13 Exchange Act means the Securities Exchange Act of 1934 of the United States, as
2.14 Fair Market Value means, as of any date, the value of Shares determined as
(a) If the Shares are listed on one or more established stock exchanges or national market
systems, including without limitation, The New York Stock Exchange and The Nasdaq Global Market,
its Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no
sales were reported) as quoted on the principal exchange or system on which the Shares are listed
(as determined by the Committee) on the date of determination (or, if no closing sales price or
closing bid was reported on that date, as applicable, on the last trading
date such closing sales price or closing bid was reported), as reported in The Wall Street
Journal or such other source as the Committee deems reliable;
(b) If the Shares are regularly quoted on an automated quotation system (including the OTC
Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing
sales price for such shares as quoted on such system or by such securities dealer on the date of
determination, but if selling prices are not reported, the Fair Market Value of a Share shall be
the mean between the high bid and low asked prices for the Shares on the date of determination (or,
if no such prices were reported on that date, on the last date such prices were reported), as
reported in The Wall Street Journal or such other source as the Committee deems reliable; or
(c) In the absence of an established market for the Shares of the type described in (a) and
(b), above, the Fair Market Value thereof shall be determined by the Committee in good faith and in
its discretion by reference to (i) the placing price of the latest private placement of the Shares
and the development of the Companys business operations and the general economic and market
conditions since such latest private placement, (ii) other third party transactions involving the
Shares and the development of the Companys business operation and the general economic and market
conditions since such sale, (iii) an independent valuation of the Shares, or (iii) such other
methodologies or information as the Committee determines to be indicative of Fair Market Value,
2.15 Incentive Share Option means an Option that is intended to meet the
requirements of Section 422 of the Code or any successor provision thereto.
2.16 Independent Director means a member of the Board who is not an Employee of the
2.17 Non-Employee Director means a member of the Board who qualifies as a
Non-Employee Director as defined in Rule 16b-3(b)(3) under the Exchange Act, or any successor
definition adopted by the Board.
2.18 Non-Qualified Share Option means an Option that is not intended to be an
Incentive Share Option.
2.19 Option means a right granted to a Participant pursuant to Article 5 of the Plan
to purchase a specified number of Shares at a specified price during specified time periods. An
Option may be either an Incentive Share Option or a Non-Qualified Share Option.
2.20 Participant means a person who, as a member of the Board, Consultant or
Employee, has been granted an Award pursuant to the Plan.
2.21 Parent means a parent corporation under Section 424(e) of the Code.
2.22 Plan means this CNinsure Inc. Share Incentive Award Plan, as it may be amended
from time to time.
2.23 Related Entity means any business, corporation, partnership, limited liability
company or other entity in which the Company, a Parent or Subsidiary of the Company holds a
substantial ownership interest, directly or indirectly but which is not a Subsidiary and which the
Board designates as a Related Entity for purposes of the Plan.
2.24 Restricted Share means a Share awarded to a Participant pursuant to Article 6
that is subject to certain restrictions and may be subject to risk of forfeiture.
2.25 Restricted Share Unit means the right granted to a Participant pursuant to
Article 6 to receive a Share at a future date.
2.26 Securities Act means the Securities Act of 1933 of the United States, as
2.27 Service Recipient means the Company, any Parent or Subsidiary of the Company
and any Related Entity to which a Participant provides services as an Employee, Consultant or as a
2.28 Share means Ordinary Shares of the Company, and such other securities of the
Company that may be substituted for Shares pursuant to Article 8.
2.29 Subsidiary means any corporation or other entity of which a majority of the
outstanding voting shares or voting power is beneficially owned directly or indirectly by the
2.30 Trading Date means the closing of the first sale to the general public of the
Shares pursuant to a registration statement filed with and declared effective by the U.S.
Securities and Exchange Commission under the Securities Act.
SHARES SUBJECT TO THE PLAN
3.1 Number of Shares.
(a) Subject to the provisions of Article 8 and Section 3.1(b), the maximum aggregate number of
Shares which may be issued pursuant to all Awards (including Incentive Share Options) is fifteen
percent (15%) of the Shares outstanding immediately after the closing of the Companys initial
public offering on November 5, 2007.
(b) To the extent that an Award terminates, expires, or lapses for any reason, any Shares
subject to the Award shall again be available for the grant of an Award pursuant to the Plan. To
the extent permitted by Applicable Laws, Shares issued in assumption of, or in substitution for,
any outstanding awards of any entity acquired in any form or combination by the Company or any
Parent or Subsidiary of the Company shall not be counted against Shares available for grant
pursuant to the Plan. Shares delivered by the Participant or withheld by the Company upon the
exercise of any Award under the Plan, in payment of the exercise price thereof or tax withholding
thereon, may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 3.1(a). If any Restricted Shares are forfeited by the
Participant or repurchased by the Company, such Shares may again be optioned, granted or awarded
hereunder, subject to the limitations of Section 3.1(a). Notwithstanding the provisions of this
Section 3.1(b), no Shares may again be optioned, granted or awarded if such action would cause an
Incentive Share Option to fail to qualify as an incentive share option under Section 422 of the
3.2 Shares Distributed. Any Shares distributed pursuant to an Award may consist, in
whole or in part, of authorized and unissued Shares, treasury Shares (subject to Applicable Laws)
or Shares purchased on the open market. Additionally, in the discretion of the Committee, American
Depository Shares in an amount equal to the number of Shares which otherwise would be distributed
pursuant to an Award may be distributed in lieu of Shares in settlement of any Award. If the
number of Shares represented by an American Depository Share is other than on a one-to-one basis,
the limitations of Section 3.1 shall be adjusted to reflect the distribution of American
Depository Shares in lieu of Shares.
ELIGIBILITY AND PARTICIPATION
4.1 Eligibility. Persons eligible to participate in this Plan include Employees,
Consultants, and all members of the Board, as determined by the Committee.
4.2 Participation. Subject to the provisions of the Plan, the Committee may, from
time to time, select from among all eligible individuals, those to whom Awards shall be granted and
shall determine the nature and amount of each Award. No individual shall have any right to be
granted an Award pursuant to this Plan.
4.3 Jurisdictions. In order to assure the viability of Awards granted to Participants
employed in various jurisdictions, the Committee may provide for such special terms as it may
consider necessary or appropriate to accommodate differences in local law, tax policy, or custom
applicable in the jurisdiction in which the Participant resides or is employed. Moreover, the
Committee may approve such supplements to, or amendments, restatements, or alternative versions of,
the Plan as it may consider necessary or appropriate for such purposes without thereby affecting
the terms of the Plan as in effect for any other purpose; provided, however, that no such
supplements, amendments, restatements, or alternative versions shall increase the share limitations
contained in Section 3.1 of the Plan. Notwithstanding the foregoing, the Committee may not take any
actions hereunder, and no Awards shall be granted, that would violate any Applicable Laws.
5.1 General. The Committee is authorized to grant Options to Participants on the
following terms and conditions:
(a) Exercise Price. The exercise price per Share subject to an Option shall be
determined by the Committee and set forth in the Award Agreement which may be a fixed or variable
price related to the Fair Market Value of the Shares; provided, however, that no Option may be
granted to an individual subject to taxation in the United States at less than the Fair Market
Value on the date of grant.. The exercise price per Share subject to an Option may be amended or
adjusted in the absolute discretion of the Committee, the determination of which shall be final,
binding and conclusive. For the avoidance of doubt, to the extent not prohibited by Applicable
Laws or any exchange rule, a downward adjustment of the exercise prices of Options mentioned in the
preceding sentence shall be effective without the approval of the Companys shareholders or the
approval of the affected Participants.
(b) Time and Conditions of Exercise. The Committee shall determine the time or times
at which an Option may be exercised in whole or in part, including exercise prior to vesting;
provided that the term of any Option granted under the Plan shall not exceed ten years, except as
provided in Section 11.1. The Committee shall also determine any conditions, if any, that must be
satisfied before all or part of an Option may be exercised.
(c) Payment. The Committee shall determine the methods by which the exercise price of
an Option may be paid, the form of payment, including, without limitation (i) cash or check
denominated in U.S. Dollars, (ii) to the extent permissible under the Applicable Laws, cash or
check in Chinese Renminbi, (iii) cash or check denominated in any other local currency as approved
by the Committee, (iv) Shares held for such period of time as may be required by the Committee in
order to avoid adverse financial accounting consequences and having a Fair Market Value on the date
of delivery equal to the aggregate exercise price of the Option or exercised portion thereof, (v)
after the Trading Date the delivery of a notice that the Participant has placed a market sell order
with a broker with respect to Shares then issuable upon exercise of the Option, and that the broker
has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price; provided that payment of such proceeds is then made to
the Company upon settlement of such sale, (vi) other property acceptable to the Committee with a
Fair Market Value equal to the exercise price, or (vii) any combination of the foregoing.
Notwithstanding any other provision of the Plan to the contrary, no Participant who is a member of
the Board or an executive officer of the Company within the meaning of Section 13(k) of the
Exchange Act shall be permitted to pay the exercise price of an Option in any method which would
violate Section 13(k) of the Exchange Act.
(d) Evidence of Grant. All Options shall be evidenced by an Award Agreement between
the Company and the Participant. The Award Agreement shall include such additional provisions as
may be specified by the Committee.
5.2 Incentive Share Options. Incentive Share Options may be granted to Employees of
the Company, a Parent or Subsidiary of the Company. Incentive Share Options may not be granted to
Employees of a Related Entity or to Independent Directors or Consultants. The terms of any
Incentive Share Options granted pursuant to the Plan, in addition to the requirements of Section
5.1, must comply with the following additional provisions of this Section 5.2:
(a) Expiration of Option. An Incentive Share Option may not be exercised to any
extent by anyone after the first to occur of the following events:
(i) Ten years from the date it is granted, unless an earlier time is set in the Award
(ii) Three months after the Participants termination of employment as an Employee; and
(iii) One year after the date of the Participants termination of employment or service on
account of Disability or death. Upon the Participants Disability or death, any Incentive Share
Options exercisable at the Participants Disability or death may be exercised by the Participants
legal representative or representatives, by the person or persons entitled to do so pursuant to the
Participants last will and testament, or, if the Participant fails to make testamentary
disposition of such Incentive Share Option or dies intestate, by the person or persons entitled to
receive the Incentive Share Option pursuant to the applicable laws of descent and distribution.
(b) Individual Dollar Limitation. The aggregate Fair Market Value (determined as of
the time the Option is granted) of all Shares with respect to which Incentive Share Options are
first exercisable by a Participant in any calendar year may not exceed $100,000 or such other
limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent
that Incentive Share Options are first exercisable by a Participant in excess of such limitation,
the excess shall be considered Non-Qualified Share Options.
(c) Ten Percent Owners. An Incentive Share Option shall be granted to any individual
who, at the date of grant, owns Shares possessing more than ten percent of the total combined
voting power of all classes of shares of the Company only if such Option is granted at a price that
is not less than 110% of Fair Market Value on the date of grant and the Option is exercisable for
no more than five years from the date of grant.
(d) Transfer Restriction. The Participant shall give the Company prompt notice of any
disposition of Shares acquired by exercise of an Incentive Share Option within (i) two years from
the date of grant of such Incentive Share Option or (ii) one year after the transfer of such Shares
to the Participant.
(e) Expiration of Incentive Share Options. No Award of an Incentive Share Option may
be made pursuant to this Plan after the tenth anniversary of the Effective Date.
(f) Right to Exercise. During a Participants lifetime, an Incentive Share Option may
be exercised only by the Participant.
RESTRICTED SHARES AND RESTRICTED SHARE UNITS
6.1 Grant of Restricted Shares. The Committee is authorized to make Awards of
Restricted Shares and/or Restricted Share Units to any Participant selected by the Committee in
such amounts and subject to such terms and conditions as determined by the Committee. All Awards
of Restricted Shares shall be evidenced by an Award Agreement.
6.2 Issuance and Restrictions. Restricted Shares shall be subject to such
restrictions on transferability and other restrictions as the Committee may impose (including,
without limitation, limitations on the right to vote Restricted Shares or the right to receive
dividends on the Restricted Share). These restrictions may lapse separately or in combination at
such times, pursuant to such circumstances, in such installments, or otherwise, as the Committee
determines at the time of the grant of the Award or thereafter.
6.3 Forfeiture/Repurchase. Except as otherwise determined by the Committee at the
time of the grant of the Award or thereafter, upon termination of employment or service during the
applicable restriction period, Restricted Shares that are at that time subject to restrictions
shall be forfeited or repurchased in accordance with the Award Agreement; provided, however, that
the Committee may (a) provide in any Restricted Share Award Agreement that restrictions or
forfeiture and repurchase conditions relating to Restricted Shares will be waived in whole or in
part in the event of terminations resulting from specified causes, and (b) in other cases waive in
whole or in part restrictions or forfeiture and repurchase conditions relating to Restricted
6.4 Certificates for Restricted Shares. Restricted Shares granted pursuant to the
Plan may be evidenced in such manner as the Committee shall determine. If certificates
representing Restricted Shares are registered in the name of the Participant, certificates must
bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such
Restricted Shares, and the Company may, at its discretion, retain physical possession of the
certificate until such time as all applicable restrictions lapse.
6.5 Restricted Share Units. At the time of grant, the Committee shall specify the
date or dates on which the Restricted Share Units shall become fully vested and nonforfeitable, and
may specify such conditions to vesting as it deems appropriate. At the time of grant, the
Committee shall specify the maturity date applicable to each grant of Restricted Share Units which
shall be no earlier than the vesting date or dates of the Award and may be determined at the
election of the grantee. On the maturity date, the Company shall, subject to Sections 7.4 and 7.5,
transfer to the Participant one unrestricted, fully transferable Share for each Restricted Share
Unit scheduled to be paid out on such date and not previously forfeited.
PROVISIONS APPLICABLE TO AWARDS
7.1 Award Agreement. Awards under the Plan shall be evidenced by Award Agreements
that set forth the terms, conditions and limitations for each Award which may include the term of
an Award, the provisions applicable in the event the Participants employment or service
terminates, and the Companys authority to unilaterally or bilaterally amend, modify, suspend,
cancel or rescind an Award.
7.2 Limits on Transfer. No right or interest of a Participant in any Award may be
pledged, encumbered, or hypothecated to or in favor of any party other than the Company or a
Subsidiary, or shall be subject to any lien, obligation, or liability of such Participant to any
other party other than the Company or a Subsidiary. Except as otherwise provided by the Committee,
no Award shall be assigned, transferred, or otherwise disposed of by a Participant other than
by will or the laws of descent and distribution. The Committee by express provision in the Award
or an amendment thereto may permit an Award (other than an Incentive Share Option) to be
transferred to, exercised by and paid to certain persons or entities related to the Participant,
including but not limited to members of the Participants family, charitable institutions, or
trusts or other entities whose beneficiaries or beneficial owners are members of the Participants
family and/or charitable institutions, or to such other persons or entities as may be expressly
approved by the Committee, pursuant to such conditions and procedures as the Committee may
establish. Any permitted transfer shall be subject to the condition that the Committee receive
evidence satisfactory to it that the transfer is being made for estate and/or tax planning purposes
(or to a blind trust in connection with the Participants termination of employment or service
with the Company or a Subsidiary to assume a position with a governmental, charitable, educational
or similar non-profit institution) and on a basis consistent with the Companys lawful issue of
7.3 Beneficiaries. Notwithstanding Section 7.2, a Participant may, in the manner
determined by the Committee, designate a beneficiary to exercise the rights of the Participant and
to receive any distribution with respect to any Award upon the Participants death. A beneficiary,
legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is
subject to all terms and conditions of the Plan and any Award Agreement applicable to the
Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any
additional restrictions deemed necessary or appropriate by the Committee. If the Participant is
married and resides in a community property state, a designation of a person other than the
Participants spouse as his or her beneficiary with respect to more than 50% of the Participants
interest in the Award shall not be effective without the prior written consent of the Participants
spouse. If no beneficiary has been designated or survives the Participant, payment shall be made
to the person entitled thereto pursuant to the Participants will or the laws of descent and
distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a
Participant at any time provided the change or revocation is filed with the Committee.
7.4 Share Certificates. Notwithstanding anything herein to the contrary, the Company
shall not be required to issue or deliver any certificates evidencing shares of Share pursuant to
the exercise of any Award, unless and until the Board has determined, with advice of counsel, that
the issuance and delivery of such certificates is in compliance with all Applicable Laws,
regulations of governmental authorities and, if applicable, the requirements of any exchange on
which the Shares are listed or traded. All Share certificates delivered pursuant to the Plan are
subject to any stop-transfer orders and other restrictions as the Committee deems necessary or
advisable to comply with all Applicable Laws, and the rules of any national securities exchange or
automated quotation system on which the Shares are listed, quoted, or traded. The Committee may
place legends on any Share certificate to reference restrictions applicable to the Share. In
addition to the terms and conditions provided herein, the Board may require that a Participant make
such reasonable covenants, agreements, and representations as the Board, in its discretion, deems
advisable in order to comply with any such laws, regulations, or requirements. The Committee shall
have the right to require any Participant to comply with any timing or other restrictions with
respect to the settlement or exercise of any Award, including a window-period limitation, as may be
imposed in the discretion of the Committee.
7.5 Paperless Administration. Subject to Applicable Laws, the Committee may make
Awards, provide applicable disclosure and procedures for exercise of Awards by an internet website
or interactive voice response system for the paperless administration of Awards.
7.6 Foreign Currency. A Participant may be required to provide evidence that any
currency used to pay the exercise price of any Award were acquired and taken out of the
jurisdiction in which the Participant resides in accordance with Applicable Laws, including foreign
exchange control laws and regulations. In the event the exercise price for an Award is paid in
Chinese Renminbi or other foreign currency, as permitted by the Committee, the amount payable will
be determined by conversion from U.S. dollars at the official rate promulgated by the Peoples Bank
of China for Chinese Renminbi, or for jurisdictions other than the Peoples Republic of China, the
exchange rate as selected by the Committee on the date of exercise.
CHANGES IN CAPITAL STRUCTURE
8.1 Adjustments. In the event of any dividend, share split, combination or exchange
of Shares, amalgamation, arrangement or consolidation, reorganization of the Company, including the
Company becoming a subsidiary in a transaction not involving a Corporate Transaction, spin-off,
recapitalization or other distribution (other than normal cash dividends) of Company assets to its
shareholders, or any other change affecting the shares of Shares or the share price of a Share, the
Committee shall make such proportionate and equitable adjustments, if any, to reflect such change
with respect to (a) the aggregate number and type of shares that may be issued under the Plan
(including, but not limited to, adjustments of the limitations in Section 3.1 and substitutions of
shares in a parent or surviving company); (b) the terms and conditions of any outstanding Awards
(including, without limitation, any applicable performance targets or criteria with respect
thereto); and (c) the grant or exercise price per share for any outstanding Awards under the Plan.
The form and manner of any such adjustments shall be determined by the Committee in its sole
8.2 Acceleration upon a Change of Control. Except as may otherwise be provided in any
Award Agreement or any other written agreement entered into by and between the Company and a
Participant, if a Change of Control occurs and a Participants Awards are not converted, assumed,
or replaced by a successor, such Awards shall become fully exercisable and all forfeiture
restrictions on such Awards shall lapse. Upon, or in anticipation of, a Change of Control, the
Committee may in its sole discretion provide for (i) any and all Awards outstanding hereunder to
terminate at a specific time in the future and shall give each Participant the right to exercise
such Awards during a period of time as the Committee shall determine, (ii) either the purchase of
any Award for an amount of cash equal to the amount that could have been attained upon the exercise
of such Award or realization of the Participants rights had such Award been currently exercisable
or payable or fully vested (and, for the avoidance of doubt, if as of such date the Committee
determines in good faith that no amount would have been attained upon the exercise of such Award or
realization of the Participant s rights, then such Award may be terminated by the Company without
payment), (iii) the replacement of such Award with other rights or property selected by the
Committee in its sole discretion or the assumption of or substitution of such Award by the
successor or surviving corporation, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of Shares and prices, or (iv)
provide for payment of Awards in cash based on the value of Shares on the date of the Change of
Control plus reasonable interest on the Award through the date such Award would otherwise be vested
or have been paid in accordance with its original terms, if necessary to comply with Section 409A
of the Code.
8.3 Outstanding Awards Corporate Transactions. In the event of a Corporate
Transaction, each Award will terminate upon the consummation of the Corporate Transaction, unless
the Award is assumed by the successor entity or Parent thereof in connection with the Corporate
Transaction. Except as provided otherwise in an individual Award Agreement, in the event of a
Corporate Transaction and:
(a) the Award either is (x) assumed by the successor entity or Parent thereof or replaced
with a comparable Award (as determined by the Committee) with respect to shares of the capital
stock of the successor entity or Parent thereof or (y) replaced with a cash incentive program of
the successor entity which preserves the compensation element of such Award existing at the time of
the Corporate Transaction and provides for subsequent payout in accordance with the same vesting
schedule applicable to such Award, then such Award (if assumed), the replacement Award (if
replaced), or the cash incentive program automatically shall become fully vested, exercisable and
payable and be released from any restrictions on transfer (other than transfer restrictions
applicable to Options) and repurchase or forfeiture rights, immediately upon termination of the
Participants employment or service with all Service Recipient within twelve (12) months of the
Corporate Transaction without cause; and
(b) For each Award that is neither assumed nor replaced, such portion of the Award shall
automatically become fully vested and exercisable and be released from any repurchase or forfeiture
rights (other than repurchase rights exercisable at Fair Market Value) for all of the Shares at the
time represented by such portion of the Award, immediately prior to the specified effective date of
such Corporate Transaction, provided that the Participant remains an Employee, Consultant or
Director on the effective date of the Corporate Transaction.
8.4 Outstanding Awards Other Changes. In the event of any other change in the
capitalization of the Company or corporate change other than those specifically referred to in this
Article 8, the Committee may, in its absolute discretion, make such adjustments in the number and
class of shares subject to Awards outstanding on the date on which such change occurs and in the
per share grant or exercise price of each Award as the Committee may consider appropriate to
prevent dilution or enlargement of rights.
8.5 No Other Rights. Except as expressly provided in the Plan, no Participant shall
have any rights by reason of any subdivision or consolidation of shares of any class, the payment
of any dividend, any increase or decrease in the number of shares of any class or any dissolution,
liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly
provided in the Plan or pursuant to action of the Committee under the Plan, no issuance by the
Company of shares of any class, or securities convertible into shares of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number of shares subject to
an Award or the grant or exercise price of any Award.
9.1 Committee. The Plan shall be administered by the Compensation Committee of the
Board; provided, however that the Compensation Committee may delegate to a committee of one or more
members of the Board the authority to grant or amend Awards to Participants other than Independent
Directors and executive officers of the Company. The Committee shall consist of at least two
individuals, each of whom qualifies as a Non-Employee Director. Reference to the Committee shall
refer to the Board if the Compensation Committee has not been established or ceases to exist and
the Board does not appoint a successor Committee. Notwithstanding the foregoing, the full Board,
acting by majority of its members in office shall conduct the general administration of the Plan if
required by Applicable Law, and with respect to Awards granted to Independent Directors and for
purposes of such Awards the term Committee as used in the Plan shall be deemed to refer to the
9.2 Action by the Committee. A majority of the Committee shall constitute a quorum.
The acts of a majority of the members present at any meeting at which a quorum is present, and acts
approved in writing by a majority of the Committee in lieu of a meeting, shall be deemed the acts
of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any
report or other information furnished to that member by any officer or other employee of the
Company or any Subsidiary, the Companys independent certified public accountants, or any executive
compensation consultant or other professional retained by the Company to assist in the
administration of the Plan.
9.3 Authority of Committee. Subject to any specific designation in the Plan, the
Committee has the exclusive power, authority and discretion to:
(a) Designate Participants to receive Awards;
(b) Determine the type or types of Awards to be granted to each Participant;
(c) Determine the number of Awards to be granted and the number of Shares to which an Award
(d) Determine the terms and conditions of any Award granted pursuant to the Plan, including,
but not limited to, the exercise price, grant price, or purchase price, any restrictions or
limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the
exercisability of an Award, and accelerations or waivers thereof, any provisions related to
non-competition and recapture of gain on an Award, based in each case on such considerations as the
Committee in its sole discretion determines;
(e) Determine whether, to what extent, and pursuant to what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in, cash, Shares, other Awards, or other
property, or an Award may be canceled, forfeited, or surrendered;
(f) Prescribe the form of each Award Agreement, which need not be identical for each
(g) Decide all other matters that must be determined in connection with an Award, including,
without limitation, cancel or redeem an outstanding Award (including but not limited to an
outstanding Option with an exercise price exceeding the Fair Market Value of the underlying
shares), in exchange for cash, another Award or a combination of Awards, on terms and conditions
the Committee determines and communicates to the holder of such outstanding Award.;
(h) Establish, adopt, or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;
(i) Interpret the terms of, and any matter arising pursuant to, the Plan or any Award
(j) Make all other decisions and determinations that may be required pursuant to the Plan or
as the Committee deems necessary or advisable to administer the Plan.
9.4 Decisions Binding. The Committees interpretation of the Plan, any Awards granted
pursuant to the Plan, any Award Agreement and all decisions and determinations by the Committee
with respect to the Plan are final, binding, and conclusive on all parties.
EFFECTIVE AND EXPIRATION DATE
10.1 Effective Date. The Plan is effective as of the date the Plan is approved by the
Companys shareholders (the Effective Date). The Plan will be deemed to be approved by
the shareholders if it receives the affirmative vote of the holders of a majority of the share
capital of the Company present or represented and entitled to vote at a meeting duly held in
accordance with the applicable provisions of the Companys Memorandum of Association and Articles
10.2 Expiration Date. The Plan will expire on, and no Award may be granted pursuant
to the Plan after, the tenth anniversary of the Effective Date. Any Awards that are outstanding on
the tenth anniversary of the Effective Date shall remain in force according to the terms of the
Plan and the applicable Award Agreement.
AMENDMENT, MODIFICATION, AND TERMINATION
11.1 Amendment, Modification, And Termination. With the approval of the Board, at any
time and from time to time, the Committee may terminate, amend or modify the Plan; provided,
however, that (a) to the extent necessary and desirable to comply with Applicable Laws, or stock
exchange rules, the Company shall obtain shareholder approval of any Plan amendment in such a
manner and to such a degree as required, and (b) shareholder approval is required for any amendment
to the Plan that (i) increases the number of Shares available under the Plan (other than any
adjustment as provided by Article 8), (ii) permits the Committee to extend the term of the Plan or
the exercise period for an Option beyond ten years from the date
of grant, or (iii) results in a material increase in benefits or a change in eligibility
11.2 Awards Previously Granted. Except with respect to amendments made pursuant to
Section 12.15, no termination, amendment, or modification of the Plan shall adversely affect in any
material way any Award previously granted pursuant to the Plan without the prior written consent of
12.1 No Rights to Awards. No Participant, employee, or other person shall have any
claim to be granted any Award pursuant to the Plan, and neither the Company nor the Committee is
obligated to treat Participants, employees, and other persons uniformly.
12.2 No Shareholders Rights. No Award gives the Participant any of the rights of a
Shareholder of the Company unless and until Shares are in fact issued to such person in connection
with such Award.
12.3 Taxes. No Shares shall be delivered under the Plan to any Participant until such
Participant has made arrangements acceptable to the Committee for the satisfaction of any income
and employment tax withholding obligations under Applicable Laws. The Company or any Subsidiary
shall have the authority and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount sufficient to satisfy all applicable taxes (including the Participants
payroll tax obligations) required or permitted by law to be withheld with respect to any taxable
event concerning a Participant arising as a result of this Plan. The Committee may in its
discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have
the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares)
having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other
provision of the Plan, the number of Shares which may be withheld with respect to the issuance,
vesting, exercise or payment of any Award (or which may be repurchased from the Participant of such
Award after such Shares were acquired by the Participant from the Company) in order to satisfy the
Participants federal, state, local and foreign income and payroll tax liabilities with respect to
the issuance, vesting, exercise or payment of the Award shall, unless specifically approved by the
Committee, be limited to the number of Shares which have a Fair Market Value on the date of
withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum
statutory withholding rates for federal, state, local and foreign income tax and payroll tax
purposes that are applicable to such supplemental taxable income.
12.4 No Right to Employment or Services. Nothing in the Plan or any Award Agreement
shall interfere with or limit in any way the right of the Service Recipient to terminate any
Participants employment or services at any time, nor confer upon any Participant any right to
continue in the employ or service of any Service Recipient.
12.5 Unfunded Status of Awards. The Plan is intended to be an unfunded plan for
incentive compensation. With respect to any payments not yet made to a Participant pursuant to an
Award, nothing contained in the Plan or any Award Agreement shall give the Participant any
rights that are greater than those of a general creditor of the Company or any Subsidiary.
12.6 Indemnification. To the extent allowable pursuant to applicable law, each member
of the Committee or of the Board shall be indemnified and held harmless by the Company from any
loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in
connection with or resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action or failure to act pursuant to
the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in
such action, suit, or proceeding against him or her; provided he or she gives the Company an
opportunity, at its own expense, to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be entitled pursuant to
the Companys Memorandum of Association and Articles of Association, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them harmless.
12.7 Relationship to other Benefits. No payment pursuant to the Plan shall be taken
into account in determining any benefits pursuant to any pension, retirement, savings, profit
sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except to
the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.
12.8 Expenses. The expenses of administering the Plan shall be borne by the Company
and its Subsidiaries.
12.9 Titles and Headings. The titles and headings of the Sections in the Plan are for
convenience of reference only and, in the event of any conflict, the text of the Plan, rather than
such titles or headings, shall control.
12.10 Fractional Shares. No fractional shares of Share shall be issued and the
Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional
shares or whether such fractional shares shall be eliminated by rounding up or down as appropriate.
12.11 Government and Other Regulations. The obligation of the Company to make payment
of awards in Share or otherwise shall be subject to all Applicable Laws and to such approvals by
government agencies as may be required. The Company shall be under no obligation to register any
of the Shares paid pursuant to the Plan under the Securities Act or any other similar law in any
applicable jurisdiction. If the Shares paid pursuant to the Plan may in certain circumstances be
exempt from registration pursuant to the Securities Act or other Applicable Laws, the Company may
restrict the transfer of such shares in such manner as it deems advisable to ensure the
availability of any such exemption.
12.12 Governing Law. The Plan and all Award Agreements shall be construed in
accordance with and governed by the laws of the Cayman Islands.
12.13 Section 409A. To the extent that the Committee determines that any Award
granted under the Plan is or may become subject to Section 409A of the Code, the Award
Agreement evidencing such Award shall incorporate the terms and conditions required by Section
409A of the Code. To the extent applicable, the Plan and the Award Agreements shall be interpreted
in accordance with Section 409A of the Code and the U.S. Department of Treasury regulations and
other interpretative guidance issued thereunder, including without limitation any such regulation
or other guidance that may be issued after the Effective Date. Notwithstanding any provision of
the Plan to the contrary, in the event that following the Effective Date the Committee determines
that any Award may be subject to Section 409A of the Code and related U.S. Department of Treasury
guidance (including such U.S. Department of Treasury guidance as may be issued after the Effective
Date), the Committee may adopt such amendments to the Plan and the applicable Award agreement or
adopt other policies and procedures (including amendments, policies and procedures with retroactive
effect), or take any other actions, that the Committee determines is necessary or appropriate to
(a) exempt the Award from Section 409A of the Code and /or preserve the intended tax treatment of
the benefits provided with respect to the Award, or (b) comply with the requirements of Section
409A of the Code and related U.S. Department of Treasury guidance.
12.14 Appendices. The Committee may approve such supplements, amendments or
appendices to the Plan as it may consider necessary or appropriate for purposes of compliance with
applicable laws or otherwise and such supplements, amendments or appendices shall be considered a
part of the Plan; provided, however, that no such supplements shall increase the share limitations
contained in Section 3.1 of the Plan.
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the person whose signature appears below constitutes
and appoints Mr. Yinan Hu, with full power to act alone, as his true and lawful attorney-in-fact,
with the power of substitution, for and in such persons name, place and stead, in any and all
capacities, to sign any and all amendments (including post-effective amendments) to the
Registration Statement on Form S-8 (File No. 333-151271), and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and Exchange Commission,
granting unto the said attorney-in-fact full power and authority to do and perform each and every
act and thing requisite and necessary to be done as fully to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that the said attorney-in-fact may
lawfully do or cause to be done by virtue hereof.
|/s/ Mengbo Yin
||December 30, 2008