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ALONG MOBILE TECHNOLOGIES,
INC.
DIRECTOR AND OFFICER
INDEMNIFICATION AGREEMENT
This indemnification agreement (the "Agreement")
is entered into as of, by and between Along Mobile
Technologies, Inc., a Nevada Corporation (the "Corporation"), and
Yuan Hong ("Indemnitee"), with an effective date of _____ being the
date of such Indemnitee's appointment as a Director or Officer of
the Corporation (the "Effective Date"), and is based on the
following:
PREMISES
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A.
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The Corporation and Indemnitee recognize the
difficulty in obtaining liability insurance for the Corporation's
independent and non-independent directors, as well as officers, the
significant increases in the cost of such insurance, and the
general reductions in the coverage of such insurance. Furthermore,
the Corporation and Indemnitee also recognize the substantial
increase in corporate litigation in general, subjecting independent
and non-independent directors, as well as officers, to expensive
litigation risks at the same time as the availability and coverage
of liability insurance have been severely limited.
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B.
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Indemnitee may not be willing to serve in such
capacity(s) without protection. Moreover, the Corporation (i)
desires to attract and retain the involvement of highly-qualified
persons, such as Indemnitee, to serve the Corporation and, in part,
in order to induce Indemnitee to be involved with the Corporation,
(ii) wishes to provide for the indemnification and advancing of
expenses to Indemnitee to the maximum extent permitted by law, and
(iii) wishes to assure Indemnitee that there will be increased
certainty of adequate protection in the future.
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C.
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In addition to any insurance purchased by the
Corporation on behalf of Indemnitee, the purchase of such insurance
being at the sole discretion of the Corporation, it is reasonable,
prudent, and necessary for the Corporation to obligate itself
contractually to indemnify Indemnitee so that he may remain free
from undue concern that he will not be adequately protected both
during his service as an independent or non-independent officer
and/or director of the Corporation and following any termination of
such service.
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D.
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The directors of the Corporation have duly
approved this Agreement and the indemnification provided herein
with the express recognition that the indemnification arrangements
provided herein exceed that which the Corporation would be required
to provide pursuant to Nevada Law.
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AGREEMENT
NOW, THEREFORE, in consideration of the premises
and the covenants contained herein, the Corporation and Indemnitee
do hereby covenant and agree as follows:
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1.
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Definitions . For purposes of
this Agreement:
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a.
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"Indemnitee" shall include the Indemnitee named
in the first paragraph of this Agreement and such Indemnitee's
actual or alleged alter egos, spouse, family members, and
corporations, partnerships, limited liability companies, trusts,
and other enterprises or entities of any form whatsoever under the
control of any of the foregoing, and the property of all of the
foregoing. The term "control" (including the terms "controlling,"
"controlled by," and "under common control with") means the
possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person or entity,
whether through the ownership of voting securities, by contract, or
otherwise, as interpreted under the Securities Act of 1933 or the
Securities Exchange Act of 1934 ("Exchange Act").
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b.
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''Disinterested Director'' means a director of
the Corporation who is not or was not a party to the Proceeding in
respect of which indemnification is being sought by
Indemnitee.
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c.
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''Expenses'' includes, without limitation,
expenses incurred in connection with the defense or settlement of
any and all investigations, judicial or administrative proceedings
or appeals, attorneys' fees, witness fees and expenses, fees and
expenses of accountants and other advisors, retainers and
disbursements and advances thereon, the premium, security for, and
other costs relating to any bond (including cost bonds, appraisal
bonds or their equivalents), and any expenses of establishing a
right to indemnification under Sections 3,4,5,6 and 7 below, but
shall not include the amount of judgments, fines or penalties
actually levied against Indemnitee.
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d.
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''Independent Counsel'' means a law firm or a
member of a law firm, who (or which) is authorized to practice law
in the State of Nevada, and neither is presently nor in the past
five years has been retained to represent: (i) the Corporation or
Indemnitee in any matter material to either such party, or (ii) any
other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term
''Independent Counsel'' shall not include any person who, under the
applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Corporation
or Indemnitee in an action to determine Indemnitee's right to
indemnification under this Agreement.
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e.
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‘'Proceeding'' includes any threatened,
pending or completed investigation, action, suit or other
proceeding, whether brought in the name of the Corporation or
otherwise, against Indemnitee, for which indemnification is not
prohibited under Sections 3 below and whether of a civil, criminal,
administrative or investigative nature, including, but not limited
to, actions, suits or proceedings 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 an independent or non-independent
director or officer of the Corporation, or is or was serving, at
the request of the Corporation, as a director or officer of any
other entity, including, but not limited to, another corporation,
partnership, joint venture or trust, or by reason of anything done
or not done by Indemnitee in any such capacity, whether or not
Indemnitee 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.
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2.
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Service by Indemnitee .
Indemnitee will serve and/or continue to serve as an independent or
non-independent director or officer of the Corporation faithfully
and to the best of Indemnitee's ability so long as Indemnitee is
duly elected or appointed and until such time as Indemnitee is
removed as permitted by law or tenders a resignation in
writing.
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3.
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Indemnification . The
Corporation shall indemnify Indemnitee to the fullest extent
permitted by Nevada Law in effect on the date hereof or as such law
may from time to time be amended (but, in the case of any such
amendment, only to the extent that such amendment permits the
Corporation to provide broader indemnification rights than said law
permitted the Corporation to provide prior to such amendment).
Without diminishing the scope of the indemnification provided by
this Section, the rights of indemnification of Indemnitee provided
hereunder shall include but shall not be limited to those rights
hereinafter set forth, except that no indemnification shall be paid
to Indemnitee:
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a.
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To the extent expressly prohibited by Nevada
Law;
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b.
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For which payment is actually made to Indemnitee
under a valid and collectible insurance policy or under a valid and
enforceable indemnity clause, agreement of the Corporation or any
other Corporation or organization on whose board Indemnitee serves
at the request of the Corporation, except in respect of any
indemnity exceeding the payment under such insurance, clause, or
agreement;
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c.
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In connection with an action, suit or proceeding,
or part thereof (including claims and counterclaims) initiated by
Indemnitee, except a judicial proceeding or arbitration pursuant to
Section 18 to enforce rights under this Agreement, unless the
action, suit or proceeding (or part thereof) was authorized by the
Board of Directors of the Corporation;
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d.
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For any amounts paid in settlement of any action,
suit or proceeding effected without the Corporation’s written
consent and pursuant to Section 11 of this Agreement;
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e.
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With respect to any action, suit or proceeding
brought by or on behalf of the Corporation against Indemnitee that
is authorized by the Board of Directors of the Corporation, except
as provided in Sections 5,6,and 7 below; and
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f.
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With respect to any action, suit or proceeding in
which the final adjudication establishes that Indemnitee's
act’s or omissions involved intentional misconduct, fraud,
gross negligence, or a knowing violation of law and were material
to the cause of action.
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4.
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Action or Proceedings Other than an Action by or in the
Right of the Corporation . Except as
limited by Section 3 above, Indemnitee shall be entitled to the
indemnification rights provided in this Section if Indemnitee is a
party or is threatened to be made a party to any Proceeding (other
than an action by or in the name of the Corporation) by reason of
the fact that Indemnitee is or was an independent or
non-independent director or officer of the Corporation, or is or
was serving at the request of the Corporation as an officer or
director of another entity; or by reason of anything done or not
done by Indemnitee in any such capacity. Pursuant to this Section,
Indemnitee shall be indemnified against all costs, judgments,
penalties, fines, liabilities, amounts paid in settlement by or on
behalf of Indemnitee, and Expenses actually and reasonably incurred
by Indemnitee in connection with such Proceeding, if Indemnitee
acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Corporation, and with
respect to any criminal Proceeding, had no reasonable cause to
believe his or her conduct was unlawful.
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5.
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Indemnity in Proceedings by or in the Name of the
Corporation . Except as limited by Section
3 above, Indemnitee shall be entitled to the indemnification rights
provided in this Section if Indemnitee was or is a party or is
threatened to be made a party to any Proceeding brought by or in
the name of the Corporation to procure a judgment in its favor by
reason of the fact that Indemnitee is or was an independent or
non-independent director or officer of the Corporation, or by
reason of anything done or not done by Indemnitee in any such
capacity. Pursuant to this Section, Indemnitee shall be indemnified
against all costs, judgments, penalties, fines, liabilities,
amounts paid in settlement by or on behalf of Indemnitee, and
Expenses actually and reasonably incurred by Indemnitee in
connection with such Proceeding if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Corporation; provided,
however, that no such indemnification shall be made in respect of
any claim, issue, or matter as to which Nevada Law expressly
prohibits such indemnification by reason of any adjudication of
liability of Indemnitee to the Corporation, unless, despite the
adjudication of liability but in view of all the circumstances of
the case, Indemnitee is entitled to indemnification for such costs,
judgments, penalties, fines, liabilities and Expenses as a Nevada
court shall deem proper.
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6.
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Indemnification for Costs, Charges and Expenses of
Successful Party . Notwithstanding the
limitations of Section 3, to the extent that Indemnitee has been
successful, on the merits or otherwise, in whole or in part, in
defense of any action, suit or proceeding (including an action,
suit or proceeding brought by or on behalf of the Corporation) or
in defense of any claim, issue or matter therein, including,
without limitation, the dismissal of any action without prejudice,
or if it is ultimately determined that Indemnitee is otherwise
entitled to be indemnified against Expenses, Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred
in connection therewith.
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7.
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Partial Indemnification . If
Indemnitee is entitled under any provision of this Agreement to
indemnification by the Corporation for some or a portion of the
costs, judgments, penalties, fines, liabilities or Expenses
actually and reasonably incurred in connection with any action,
suit or proceeding (including an action, suit or proceeding brought
by or on behalf of the Corporation), but not, however, for all of
the total amount thereof, the Corporation shall nevertheless
indemnify Indemnitee for the portion of such costs, judgments,
penalties, fines, liabilities and Expenses actually and reasonably
incurred to which Indemnitee is entitled.
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8.
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Determination of Entitlement to Indemnification
. Upon written request by Indemnitee for
indemnification pursuant to Sections 3,4,5,6 or 7, the entitlement
of Indemnitee to indemnification, to the extent not provided
pursuant to the terms of this Agreement, shall be determined by the
following person or persons who shall be empowered to make such
determination: (a) the Board of Directors of the Corporation by a
majority vote of Disinterested Directors, whether or not such
majority constitutes a quorum; (b) a committee of Disinterested
Directors designated by a majority vote of such directors, whether
or not such majority constitutes a quorum; (c) if there are no
Disinterested Directors, or if the Disinterested Directors so
direct, by Independent Counsel in a written opinion to the Board of
Directors, a copy of which shall be delivered to Indemnitee; or (d)
the stockholders of the Corporation.
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9.
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Selection of Independent Counsel . Independent Counsel shall be selected by the Board of
Directors, and the Corporation shall give written notice to
Indemnitee advising him of the identity of Independent Counsel so
selected. Indemnitee may, within sev
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