Document:

Shareholders' Agreement, dated as of June 27, 2005

 Exhibit 4.10 
  
 Execution Copy 
  

  
 SHAREHOLDERS’ AGREEMENT 

 

  
 By and among 
  
 GENERAL ELECTRIC INTERNATIONAL OPERATIONS COMPANY, INC. 
  
 GOLDEN MEDITECH (BVI) COMPANY LIMITED 
  
 CHENGXUAN
INTERNATIONAL LTD. 
  
 and 
  
 CHINA MEDICAL TECHNOLOGIES, INC. 
  
 Dated as of June 27, 2005 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE 1 DEFINITIONS
	  	1
			
	 SECTION 1.01
	  	CERTAIN DEFINED TERMS	  	1
	 SECTION 1.02
	  	DEFINITIONS	  	2
	 SECTION 1.03
	  	INTERPRETATION AND RULES OF CONSTRUCTION	  	3
		
	 ARTICLE 2 AGREEMENTS
	  	4
			
	 SECTION 2.01
	  	OBSERVER RIGHT	  	4
	 SECTION 2.02
	  	USE OF NAMES	  	4
	 SECTION 2.03
	  	USE OF CLINICAL DATABASE	  	4
	 SECTION 2.04
	  	NO EXCLUSIVITY; CORPORATE OPPORTUNITY	  	4
	 SECTION 2.05
	  	TRANSACTIONS BETWEEN THE COMPANY AND THE SHAREHOLDERS OR
THEIR AFFILIATES	  	6
	 SECTION 2.06
	  	BUSINESS CONDUCT	  	6
		
	 ARTICLE 3 MISCELLANEOUS
	  	6
			
	 SECTION 3.01
	  	TERM	  	6
	 SECTION 3.02
	  	EXPENSES	  	7
	 SECTION 3.03
	  	NOTICES	  	7
	 SECTION 3.04
	  	PUBLIC ANNOUNCEMENTS	  	9
	 SECTION 3.05
	  	SEVERABILITY	  	9
	 SECTION 3.06
	  	WAIVER	  	9
	 SECTION 3.07
	  	AMENDMENT	  	9
	 SECTION 3.08
	  	ASSIGNMENT AND SUCCESSION	  	10
	 SECTION 3.09
	  	NO THIRD PARTY BENEFICIARIES	  	10
	 SECTION 3.10
	  	SPECIFIC PERFORMANCE	  	10
	 SECTION 3.11
	  	GOVERNING LAW	  	10
	 SECTION 3.12
	  	HEADINGS	  	10
	 SECTION 3.13
	  	COUNTERPARTS	  	10

  

 i 

 THIS SHAREHOLDERS’ AGREEMENT (this “Agreement”), is entered into as of June 27,
2005, by and among: 
  
 A. CHINA MEDICAL TECHNOLOGIES, INC., a
company incorporated in the Cayman Islands with limited liability with its registered address at Walkers SPV Limited, Walker House, Mary Street, PO Box 908GT, George Town, Grand Cayman, Cayman Islands (the “Company”); 
  
 B. CHENGXUAN INTERNATIONAL LTD., a company incorporated in the British Virgin
Islands with limited liability with its registered address at The Mill Mall, PO Box 92, Road Town, Tortola, British Virgin Islands, (“Chengxuan”); 
  
 C. GENERAL ELECTRIC INTERNATIONAL OPERATIONS COMPANY, INC., a company incorporated in Delaware, the United States with its
registered address at Corporate Trust Center, 1209 Orange Street, City of Wilmington, County of New Castle, State of Delaware, United States of America, (“GE”); and 
  
 D. GOLDEN MEDITECH (BVI) COMPANY LIMITED, a company incorporated in the British Virgin Islands with limited liability with
its registered address at P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands (“Meditech”). 
  
 RECITALS 
  
 WHEREAS, the Company, Chengxuan, GE and Meditech are parties to a Shareholders’ Agreement dated as of January 19, 2005 (the “Existing
Shareholders’ Agreement”); and 
  
 WHEREAS, the
parties hereto desire to terminate the Existing Shareholders’ Agreement upon the consummation of the Initial Public Offering (as defined below) and to enter into this Agreement in substitution thereof; 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual
representations, covenants and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS 
  
 SECTION 1.01 Certain Defined Terms. 
  
 For the purposes of this Agreement: 
  
 “Affiliate” means, with respect to any specified Person who is an individual, such Person’s spouse and children
under 18, and with respect to other specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person. 

 “Board” means the board of directors of the Company. 
  
 “Business” means the research, development,
production, marketing, distribution and sale by the Company’s subsidiary, YDME of medical devices and equipment, including but not limited to high intensity-focused ultrasonic devices for treatment of tumors. 
  
 “Director” means a Person who is a member
of the Board. 
  
 “Initial Public
Offering” means the first underwritten public offering of the Ordinary Shares of the Company or American Depositary Shares representing such Ordinary Shares on an internationally recognized stock exchange or automated securities trading
system with total offering proceeds of at least U.S. $25 million, after the payment of all fees and expenses of such offering. 
  
 “Ordinary Shares” means the ordinary shares, par value US$0.1 per share, of the Company. 
  
 “Person” means any individual, partnership,
firm, corporation, limited liability company, association, trust, unincorporated organization or other entity. 
  
 “PRC” means the People’s Republic of China, excluding the Hong Kong Special Administrative Region, the Macao Special
Administrative Region and Taiwan. 
  
 “Shareholders” means Chengxuan, GE and Meditech and any other signatory hereto who is deemed a “Shareholder” pursuant to the terms of this Agreement. 
  
 “Supply Agreement” means the GE Ultrasonic Equipment Supply Agreement, dated as of March
19, 2003 and the amended agreement dated as of November 16, 2004, between YDME and GE (China) Co., Ltd. 
  
 “Third Party” means, with respect to any Shareholder, any other Person (other than a Permitted Transferee of such
Shareholder). 
  
 “YDME” means,
Beijing Yuande Bio-Medical Engineering Co., Ltd., a wholly foreign-owned enterprise established under the laws of the PRC and a wholly-owned subsidiary of the Company. 
  
 SECTION 1.02 Definitions. 
  

The following terms have the meanings set forth in the Section set forth opposite such term: 
  

			
	 Definition

	 	 Location

	“Agreement”	 	Preamble
	“Chengxuan”	 	Preamble
	“Company Exclusivity Period”	 	2.03(a)
	“Company”	 	Preamble
	“GE Exclusivity Period”	 	2.03(b)
	“GE”	 	Preamble

  

 2 

			
	 Definition

	 	 Location

	“Meditech”	 	Preamble
	“Opportunity Notice”	 	2.03(a)
	“Project Notice”	 	2.03(b)

  
 SECTION 1.03
Interpretation and Rules of Construction. 
  
 In this
Agreement, except to the extent that the context otherwise requires: 
  

	 	(i)	when a reference is made in this Agreement to an Article, Section Schedule, Preamble or Recitals, such reference is to an Article, Section, Preamble or Recitals of, or a Schedule
to, this Agreement unless otherwise indicated; 

  

	 	(ii)	the table of contents and headings for this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement;

  

	 	(iii)	whenever the words “include,” “includes” or “including” are used in this Agreement, they are deemed to be followed by the words “without
limitation”; 

  

	 	(iv)	the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to
any particular provision of this Agreement; 

  

	 	(v)	all terms defined in this Agreement have the defined meanings when used in any certificate or other document made or delivered pursuant hereto, unless otherwise defined therein;

  

	 	(vi)	the definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms; 

  

	 	(vii)	any law defined or referred to herein or in any agreement or instrument that is referred to herein means such law or statute as from time to time amended, modified or supplemented,
including by succession of comparable successor laws; 

  

	 	(viii)	references to a Person are also to its permitted successors and assigns; and 

  

	 	(ix)	the use of “or” is not intended to be exclusive unless expressly indicated otherwise. 

  

 3 

 ARTICLE 2 
  

AGREEMENTS 
  
 SECTION 2.01 Observer Right. 
  
 A representative of GE may attend all meetings of the Board in a nonvoting capacity; provided that such representative shall not disclose
any business of the Board to any Person, other than GE or its Affiliate, unless compelled to do so by judicial or administrative process or by other requirement of applicable law. The Company shall give written notice to GE at least ten days prior
to each meeting of the Board, specifying the time, place and agenda of such meeting. Such representative shall be entitled to receive (i) all documents and materials submitted to the Board for review or approval, (ii) true and complete copies of
minutes of all Board meetings and (iii) any other information given to any Director in the same manner and at the same time as such documents, materials and information are given to any such Director. The Company shall reimburse GE’s
representative for reasonable expenses incurred by such representative in connection with the Board meetings consistent with the Company’s reimbursement of the Directors. 
  
 SECTION 2.02 Use of Names. 
  

Neither the Company nor any of its Affiliates shall use the names of any Shareholder or any Affiliate of a Shareholder in any press release, notice or
other publication without the prior consent of such Shareholder, which consent shall not be unreasonably withheld; provided that the Company may use the names of any Shareholder or any Affiliate of a Shareholder in a disclosure if, in the
opinion of counsel reasonably acceptable to such Shareholder, such disclosure document which is required by the United States securities laws or any other government laws and regulations, or the rules and regulations of the securities exchange or
automated securities trading system where the Company’s securities will be listed or traded upon the Initial Public Offering. 
  
 SECTION 2.03 Use of Clinical Database. 
  
 GE and Meditech and their respective Affiliates shall have complete access to, and full use of, without any restriction and free of royalty fees or other
fees, data relating to clinical cases obtained by YDME from hospitals and other medical institutions and any medical professional using YDME’s high intensity-focused ultrasonic device for any lawful purpose in connection with their business,
provided that YDME has obtained the necessary consent from such hospitals and other medical institutions and any medical professional. Such data shall include, but shall not be limited to, hospital survey information, medical record
information, test reports and imaging records before and after treatment. 
  
 SECTION 2.04 No Exclusivity; Corporate Opportunity. 
  
 (a) In the event a Shareholder is offered, presented with or develops a business opportunity that is primarily based in the PRC and such business opportunity is competitive with the high-intensity-focused ultrasonic
business of the Company or its Affiliates in the PRC, irrespective of whether such Shareholder believes that the Company would be able (financially or otherwise) or willing to pursue such business opportunity, such Shareholder shall, prior to taking
or failing to take any action that would reasonably prevent the Company from pursuing such business opportunity, provide the Company with notice of its intention to pursue such business opportunity (an “Opportunity Notice”). The
Opportunity Notice shall describe the business opportunity in reasonable detail and shall specify an estimate of the cost and other terms and conditions on which it proposes to pursue such business opportunity. 
  

 4 

	 	(i)	Following delivery of the Opportunity Notice, such Shareholder and the Company shall discuss the Company’s participation in such business opportunity in good faith for a period
of time (the “Company Exclusivity Period”) expiring on the earlier of: 

  

	 	(A)	thirty days from delivery of the Opportunity Notice; and 

  

	 	(B)	the date on which the Company notifies such Shareholder that it is not interested in pursuing such business opportunity. 

  

	 	(ii)	If the Company expresses an interest in pursuing such project, the Shareholder shall use reasonable efforts to enable the Company to participate in such project. The Shareholder
shall be free to pursue such business opportunity as the Shareholder shall in its discretion determine (i) if no memorandum of understanding or comparable agreement is signed by the Shareholder and the Company during the Company Exclusivity Period
or (ii) if the Shareholder and the Company sign a memorandum of understanding or comparable agreement, but no definitive agreement in respect of such memorandum of understanding or comparable agreement is executed by the Shareholder and the Company
within three months after the signing of such memorandum of understanding or comparable agreement. 

  
 (b) (i) The Company agrees that, with respect to any high intensity-focused ultrasonic project that the Company proposes to undertake,
including, without limitation, projects relating to the joint venture between the Company and InSightec-Image Guided Treatment Ltd. as a result of their cooperation or the development of new facilities anywhere in the world, the Company will provide
GE with notice of its intention to undertake such project (a “Project Notice”). The Project Notice shall describe the project in reasonable detail and shall specify an estimate of the cost and other terms and conditions on which it
proposes to undertake such project. 
  

	 	(ii)	Following delivery of the Project Notice, the Company and GE shall discuss GE’s participation in such project in good faith for a period of time (the “GE Exclusivity
Period”) expiring on the earlier of: 

  

	 	(A)	thirty days from delivery of the Project Notice; and 

  

	 	(B)	the date on which GE notifies the Company that it is not interested in pursuing such project. 

  

	 	(iii)	If GE expresses an interest in pursuing such project, the Company shall use reasonable efforts to enable GE to participate in such project. The Company shall be free to pursue such
project or otherwise dispose of such project opportunity as the Company shall in its discretion determine (i) if no memorandum of understanding or comparable agreement is signed by the Company and GE during the GE Exclusivity Period or (ii) if the
Company and GE sign a memorandum of understanding or comparable agreement, but no definitive agreement in respect of such memorandum of understanding or 

  

 5 

 comparable agreement is executed by the Company and GE within three months after the signing of such
memorandum of understanding or comparable agreement. 
  
 SECTION
2.05 Transactions Between the Company and the Shareholders or Their Affiliates. 
  
 (a) No transaction between the Company or its Affiliate, on the one hand, and any Shareholder or its Affiliates, on the other hand, shall be entered into or conducted, and no material terms thereof shall be changed or
waived, unless the terms of such transaction or any such proposed change or waiver are approved by the Company’s audit committee and unanimously approved by the Board; provided that no such approval of the Board shall be required
with respect to (i) the purchase and sale of ultrasonic or other medical imaging equipment designed as a component of, or for use with the products of, the Company and its Affiliates pursuant to the Supply Agreement, and (ii) the distribution of the
products of YDME by GE or any Affiliates of GE pursuant to Section 2.05(b). 
  
 (b) The Company hereby grants GE a right of first refusal to act, or to designate one or more of GE’s Affiliates to act, as the sole and exclusive distributor of the high intensity-focused ultrasonic device of
YDME outside the PRC. Such distribution may be conducted directly or indirectly (through dealer or other channels) by GE or any Affiliates of GE. It is understood that the terms of any agreement entered into pursuant to the right of first refusal
shall be subject to the approval of the Company’s audit committee, which approval shall not be unreasonably withheld or delayed. 
  
 (c) In the event that (i) the Company sells or otherwise transfers all or substantially all of the assets of the Company or its Business
to any Person, or (ii) the Company or YDME consolidates with or merges into any Person and would not be the continuing or surviving corporate of such consolidation or merger, the Company shall cause such Person to assume and agree to perform and
discharge the obligations of YDME under the Supply Agreement and under or arising from Section 2.04(a). Any such sale, transfer, consolidation or merger shall be of no force and effect unless such Person has agreed to assume, perform and discharge
the obligations of YDME under the Supply Agreement and under or arising from Section 2.04(a). 
  
 SECTION 2.06 Business Conduct. 
  
 The Company will at all times conduct its business in accordance with applicable laws and in an ethical manner. The Company acknowledges receipt of GE’s policy in this regard, entitled “Integrity: The Spirit and Letter of Our
Commitment”. 
  
 ARTICLE 3 
  
 MISCELLANEOUS 
  
 SECTION 3.01 Term. 
  
 This Agreement shall become effective upon the consummation of the Initial
Public Offering and shall continue until terminated by mutual written agreement of the 
  

 6 

 parties; provided, that the rights and obligations of a Shareholder contained in this Agreement will cease to
exist if the Shareholder’s ownership interest in the Company falls below 5% of the outstanding shares, calculated on a fully diluted basis. For the avoidance of doubt, any termination of this Agreement with respect to one Shareholder shall not
prejudice the rights and obligations of any other Shareholder hereunder, or the rights and obligations of the Company with respect to any other Shareholder. This Agreement shall continue to be in full force and effect with respect to such other
Shareholder. 
  
 SECTION 3.02 Expenses. 
  
 Except as otherwise specified in this Agreement, all costs and expenses,
including, without limitation, fees and disbursements of counsel incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be paid by the party incurring such costs and expenses. 
  
 SECTION 3.03 Notices. 
  
 All notices, requests, claims, demands and other communications hereunder
shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by a responsible overnight courier service, by telecopy or registered or certified mail (postage prepaid, return
receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 3.03): 
  

	 	(a)	if to the Company: 

  
 China Medical Technologies, Inc. 
 24
Yongchang North Road 
 Beijing Economic-Technological Development Area 
 Beijing 100176 
  
 Telecopy: (8610) 6788-4642 
 Attention: Mr.
Xiaodong Wu 
  
 With a copy to: 
  
 Latham & Wartkins LLP 
 41st Floor

 One Exchange Square 
 8
Connaught Place, Central 
 Hong Kong 
  
 Telecopy: (852) 2522-7006 
 Attention: David
Zhang, Esq. 
  

	 	(b)	if to Chengxuan: 

  
 Chengxuan International Ltd. 
 24 Yongchang
North Street 
 Beijing Economic and Technology Development Zone 
 Beijing 100176 
  

 7 

 Telecopy: (8610) 6788-4642 
 Attention: Mr. Xiaodong Wu 
  
 With a copy to: 
  
 Latham & Wartkins LLP 
 41st Floor 
 One
Exchange Square 
 8 Connaught Place, Central 
 Hong Kong 
  
 Telecopy: (852)
2522-7006 
 Attention: David Zhang, Esq. 
  

	 	(c)	if to GE: 

  
 General Electric International Operations Company, Inc. 
 1 Yongchang North Road 
 Beijing Economic-Technological Development Area 
 Beijing 100176 
  
 Telecopy: (8610) 6787-5022

 Attention: Qiao Gangliang, Esq. 
  
 with a copy to: 
  
 Shearman & Sterling LLP 
 2318 China
World Tower Two 
 1 Jianguomenwai Dajie 
 Chaoyang District 
 Beijing 100004 
  
 Telecopy: (8610) 6505-1818 
 Attention: Lee Edwards, Esq. 
  

	 	(d)	if to Meditech: 

  
 Golden Meditech (BVI) Company Limited 
 Suite A, 36/F, Bank of China Tower 
 1 Garden Road 
 Central, Hong Kong 
  
 Telecopy:
(852) 2868-6981 
 Attention: Ms. Ting (Tina) Zheng 
  

 8 

 with a copy to: 
  
 Jones Day 
 31st Floor, Edinburgh Tower 
 The Landmark 
 15 Queen’s Road Central 
 Hong Kong 
  
 Telecopy: (8610) 2868-5871 
 Attention: Barbara Mok, Esq. 
  
 SECTION 3.04 Public Announcements. 
  
 Except as
required by law or by the requirements of any securities exchange on which the securities of any party hereto are listed, no party to this Agreement shall make, or cause to be made, any press release or public announcement in respect of this
Agreement or the transactions contemplated by this Agreement or otherwise communicate with any news media without the prior written consent of the Company and each of the Shareholders, and the Company and the Shareholders shall cooperate as to the
timing and contents of any such press release or public announcement. 
  
 SECTION 3.05 Severability. 
  
 If any term or
other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or
legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement are consummated as
originally contemplated to the greatest extent possible. 
  
 SECTION 3.06 Waiver. 
  
 Any party to this
Agreement may (a) extend the time for the performance of any of the obligations or other acts of any other party, (b) waive any inaccuracies in the representations and warranties of any other party contained herein or in any document delivered by
any other party pursuant hereto or (c) waive compliance with any of the agreements or conditions of any other party contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party to be
bound thereby. Any waiver of any term or condition shall not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of any
party to assert any of its rights hereunder shall not constitute a waiver of any of such rights. 
  
 SECTION 3.07 Amendment. 
  
 This Agreement may not be amended or modified except (a) by an instrument in writing signed by, or on behalf of, all parties hereto or (b) by a waiver in
accordance with Section 3.06. 
  

 9 

 SECTION 3.08 Assignment and Succession. 
  
 This Agreement may not be assigned by operation of law or otherwise without
the express written consent of the Company and the Shareholders (which consent may be granted or withheld in the sole discretion of each party). The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 
  
 SECTION 3.09
No Third Party Beneficiaries. 
  
 This Agreement shall be
binding upon and inure solely to the benefit of the parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person, including, without limitation, any union or any employee or
former employee of the Company, any legal or equitable right, benefit or remedy of any nature whatsoever. 
  
 SECTION 3.10 Specific Performance. 
  
 The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms
hereof and that the parties hereto shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or in equity. 
  
 SECTION 3.11 Governing Law. 
  
 This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, United States of America, without regard to the
principles of conflicts of law thereof. The parties hereto irrevocably submit to the non-exclusive jurisdiction of any state or federal court sitting in the County of New York, in the State of New York over any suit, action or proceeding arising out
of or relating to this Agreement. To the fullest extent they may effectively do so under applicable law, the parties hereto irrevocably waive and agree not to assert, by way of motion, as a defense or otherwise, any claim that they are not subject
to the jurisdiction of any such court, any objection that they may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in
any such court has been brought in an inconvenient forum. 
  
 SECTION 3.12 Headings. 
  
 The headings and
subheadings in this Agreement are included for convenience and identification only and are in no way intended to described, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof. 
  
 SECTION 3.13 Counterparts. 
  
 This Agreement may be executed and delivered (including by facsimile
transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

  
 [SIGNATURES BEGIN ON NEXT PAGE] 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized signatories hereunto duly authorized as of the date first above written. 
  

			
	CHINA MEDICAL TECHNOLOGIES, INC.
		
	 By:
	 	 /s/

	 Name:
	 	Xiaodong Wu
	 Title:
	 	Chief Executive Officer
	
	 CHENGXUAN INTERNATIONAL LTD.

		
	 By:
	 	 /s/

	 Name:
	 	Xiaodong Wu
	 Title:
	 	Director
	
	 GENERAL ELECTRIC INTERNATIONAL
 OPERATIONS
COMPANY, INC.

		
	 By:
	 	 /s/

	 Name:
	 	Chih Chen
	 Title:
	 	 
	
	GOLDEN MEDITECH (BVI) COMPANY LIMITED
		
	 By:
	 	 /s/

	 Name:
	 	Kam Yuen
	 Title:
	 	Director

  

 112005 stock option plan adopted on February 2, 2005

 Exhibit 10.1 
  
 China Medical Technologies, Inc. 
  
 2005 STOCK OPTION PLAN 
  

	1.	Purposes of the Plan 

  
 The purposes of this Plan are: 
  

	 	(a)	to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	(b)	to provide additional incentive to Employees, Directors and Consultants, and 

  

	 	(c)	to motivate the participating personnel, promote their dedication, and encourage them to devote themselves to the success of the Company’s business. 

 
 Stock Purchase Rights may also be granted under the Plan. 
  

	2.	Definitions 

  

			
	“Administrative Committee”	  	a committee which is designated to administer the Plan in accordance with Section 4 below.
		
	“Applicable Laws”	  	the requirements relating to the administration of stock option plans under any stock exchange or quotation system on which the Ordinary Shares are listed or quoted and the laws of any
country or jurisdiction which apply to the grant of Options or Stock Purchase Rights under the Plan.
		
	“Board”	  	the Board of Directors of the Company.
		
	“Company”	  	China Medical Technologies, Inc., a company incorporated under the laws of Cayman Islands.

 Page 2 
  

					
	“Consultant”	 	any person who is engaged by the Company or any Subsidiary to render consulting or advisory services to such entity.
		
	“Director”	 	a member of the Board.
		
	“Disability”	 	any total and permanent disability which prevents a Service Provider from performing his duties under the relevant contract of employment, engagement, appointment or service (as the
case may be) or otherwise from continuing in such capacity.
		
	“Employee”	 	any person employed by the Company or any Subsidiary of the Company, including but not limited to the directors of such Subsidiary. A person shall not cease to be an Employee in the
case of:
			
	 	 	(i)	  	any leave of absence approved by the Company; or
			
	 	 	(ii)	  	any transfers or secondment between any locations of the Company or between the Company and any Subsidiary.
		
	“Fair Market Value”	 	as of any date, the value of Ordinary Shares as determined in the following manners:
			
	 	 	(i)	  	if the Ordinary Shares are listed or publicly traded on any established stock exchange or a national market system, its Fair Market Value shall be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange or system on the date of determination or on the last market trading day prior to the date of determination (if the date of determination is not a market trading day), as
reported in The Wall Street Journal or such other sources as the Administrative Committee deems reliable;

 Page 3 
  

					
	 	 	(ii)	  	if the Ordinary Shares are regularly quoted by a principal recognised securities dealer but selling prices are not reported, its Fair Market Value shall be the average between the high bid
and low asked prices for the Ordinary Shares on the date of determination or on the last market trading day prior to the date of determination (if the date of determination is not a market trading day); or
			
	 	 	(iii)	  	in the absence of an established market for the Ordinary Shares, its Fair Market Value shall be determined in good faith by the Administrative Committee after consultation with legal and
accounting experts as the Administrative Committee may deem advisable.
		
	“Option”	 	a stock option granted pursuant to the Plan which confers the holder a right to purchase a specified amount of Ordinary Shares from the Company on and subject to the pre-determined
terms and conditions stipulated in the Option Agreement.
		
	“Option Agreement”	 	a written or electronic agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms
and conditions of the Plan.
		
	“Optioned Stock”	 	the Ordinary Shares subject to an Option or a Stock Purchase Right, as adjusted in accordance with Section 12 below.
		
	“Optionee”	 	the holder of an outstanding Option or Stock Purchase Right granted under the Plan.

 Page 4 
  

			
	“Ordinary Shares”	  	the ordinary shares of the Company, par value US$0.01 per share.
		
	“Plan”	  	this Stock Option Plan.
		
	“Restricted Stock”	  	Ordinary Shares acquired by an Optionee upon exercise of the Stock Purchase Right, which is granted pursuant to Section 10 below.
		
	 “Restricted Stock
 Purchase
Agreement”
	  	a written or electronic agreement between the Company and an Optionee evidencing the terms and conditions of an individual grant of Stock Purchase Right. The Restricted Stock Purchase
Agreement is subject to the terms and conditions of the Plan.
		
	“Service Provider”	  	an Employee, a Director or a Consultant.
		
	“Stock Purchase Right”	  	a right to purchase Ordinary Shares pursuant to Section 10 below.
		
	“Subsidiary”	  	any entity in which the Company holds directly or indirectly fifty point one percent (50.1%) or more of the voting equity.
		
	“Tax Law”	  	the relevant tax law of the applicable jurisdiction, as amended from time to time.

  
 Except where otherwise
indicated by the context herein, references to the masculine gender shall also include the feminine gender and the neuter and vice versa, and references to the singular shall also include the plural and vice versa. 
  

	3.	Stock Subject to the Plan 

  
 Subject to the provisions of Section 12 of the Plan, the maximum aggregate number of Ordinary Shares which may be subject to Option or Stock Purchase
Right and sold under the Plan is 30,000,000 Ordinary Shares. At all times during the term of the Plan and while any Option(s) or Stock Purchase Right(s) are outstanding, the Company shall retain as 

 Page 5 
  

 authorized and unissued stock, or as treasury stock, at least the number of Ordinary Shares from time to
time required under the provisions of the Plan for such outstanding Option(s) and Stock Purchase Right(s), or otherwise assure itself of its ability to perform its obligations hereunder. 
  
 If an Option or Stock Purchase Right expires or terminates for any reason or becomes unexercisable without having been
exercised in full, or is surrendered, the unacquired or unpurchased Ordinary Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). However, Ordinary Shares that have
actually been issued under the Plan, upon exercise of either an Option or Stock Purchase Right, shall not be reverted to the Plan and shall not become available for future distribution under the Plan, except that if Restricted Stock are repurchased
by the Company at their original purchase price and cancelled pursuant to Section 10, the Ordinary Shares so repurchased (which will then be authorized but unissued Ordinary Shares) shall become available for future grant under the Plan. 

 

	4.	Administration of the Plan 

  

	 	(a)	Administrative Committee 

  
 The Plan shall be administered by the Board or a committee appointed by the Board (the “Administrative Committee”), which Administrative
Committee shall be constituted to comply with the Applicable Laws. Unless it is prohibited by the Applicable Laws, in which event the Plan shall be administered by the Board, the Administrative Committee, if appointed, shall comprise the chief
executive officer and the chief financial officer of the Company. 
  

	 	(b)	Powers of the Administrative Committee 

  
 Subject to the provisions of the Plan and, in the case of an Administrative Committee, the specific duties delegated by the Board to such Administrative
Committee, and subject to the approval of any relevant authorities, the Administrative Committee shall have, in addition to its other authority provided herein, the authority at its sole discretion: 
  

	 	(i)	to determine the Fair Market Value in the manners as set out in the definition of Fair Market Value under Section 2 above; 

  

	 	(ii)	to select from time to time the Service Providers (excluding the Directors and senior executive officers of the Company, 

 Page 6 
  

 Option or Stock Purchase Right grants to whom shall be determined by the compensation committee of the
Board or before the appointment of compensation committee, by the Board) to whom Options and Stock Purchase Rights may be granted hereunder; 
  

	 	(iii)	to determine the number of Ordinary Shares to be covered by each grant of Option or Stock Purchase Right hereunder (excluding the Directors and senior executive officers of the
Company, Option or Stock Purchase Right grants to whom shall be determined by the compensation committee of the Board or before the appointment of compensation committee, by the Board) to whom Options and Stock Purchase Rights may be granted
hereunder; 

  

	 	(iv)	to approve forms of agreement for use under the Plan; 

  

	 	(v)	to determine the terms and conditions, of any Option or Stock Purchase Right granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the
time or times when Option or Stock Purchase Rights may be exercised (which may be based on performance criteria or a pre-determined vesting period), any forfeiture restrictions, any vesting acceleration or waiver of forfeiture restrictions, and any
restriction or limitation regarding any Option or Stock Purchase Right or the Ordinary Shares relating thereto, based in each case on such factors as the Administrative Committee, at its sole discretion, shall determine; 

  

	 	(vi)	to determine whether and under what circumstances an Option may be settled in cash under subsection 9(e) below instead of Ordinary Shares; 

  

	 	(vii)	to reduce the exercise price of any Option or Stock Purchase Right to the then current Fair Market Value if the Fair Market Value of the Ordinary Shares covered by such Option or
Stock Purchase Right has declined since the date the Option or Stock Purchase Right was granted; 

  

	 	(viii)	to prescribe, amend and rescind rules and regulations relating to the Plan (but not the Plan per se), including rules and regulations relating to sub-plans established for the
purpose of qualifying for preferred tax treatment under foreign tax law; 

 Page 7 
  

	 	(ix)	to allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Ordinary Shares to be issued upon exercise of an Option or Stock Purchase
Right that number of Ordinary Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Ordinary Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be
determined or the tax liability arises or the tax is due to be paid, or any other date as the Administrative Committee may deem appropriate. All elections by Optionees to have Ordinary Shares withheld for this purpose shall be made in such form and
under such conditions as the Administrative Committee may deem necessary or advisable; 

  

	 	(x)	to construe and interpret the terms of the Plan and awards granted pursuant to the Plan; and 

  

	 	(xi)	to take any other actions as the Administrative Committee shall consider appropriate for the proper administration of the Plan. 

  

	 	(c)	Effect of Administrative Committee’s Decision 

  
 All decisions, determinations and interpretations of the Administrative Committee pursuant to the provisions of the Plan shall be final conclusive and
binding on all Optionees. 
  

	5.	Eligibility 

  

	 	(a)	Options and Stock Purchase Rights may be granted to Service Providers. 

  

	 	(b)	Neither the Plan nor any Option or Stock Purchase Right shall confer upon any Optionee any right with respect to continuing the Optionee’s relationship as a Service Provider
with the Company, nor shall it interfere in any way with his or her right or the Company’s right to terminate such relationship at any time, with or without cause. 

 Page 8 
  

	6.	Term of Plan 

  
 The Plan shall become effective upon its adoption by the Board. It shall continue in effect for a term of five (5) years unless sooner terminated under
Section 14 below. 
  

	7.	Term of Option 

  
 The term of each Option shall be stated in the Option Agreement; provided, however, that the term shall be no more than five (5) years from the date of
grant thereof. 
  

	8.	Option Exercise Price and Consideration 

  

	 	(a)	The per share exercise price for the Ordinary Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrative Committee.

  

	 	(b)	The terms, conditions and restrictions for the issuance of the Ordinary Shares upon exercise of an Option, including the method of payment, shall be determined by the Administrative
Committee. The Administrative Committee may at its sole discretion authorize or accept payment in one or more of the following manners: 

  

	 	(i)	cash, 

  

	 	(ii)	check payable to the order of the Company, 

  

	 	(iii)	promissory note, 

  

	 	(iv)	surrender to the Company of other Ordinary Shares which (x) in the case of Ordinary Shares acquired upon exercise of an Option, have been owned by the Optionee for more than six (6)
months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Ordinary Shares as to which such Option shall be exercised, 

  

	 	(v)	consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or 

  

	 	(vi)	any combination of the foregoing methods of payment. 

 Page 9 
  

 In making its determination as to the above, the Administrative Committee shall consider the best
interest of and advantage to the Company. 
  

	9.	Exercise of Option 

  

	 	(a)	Procedure for Exercise; Rights as a Shareholder 

  
 Any Option granted hereunder shall be exercisable according to the terms hereof at such times and under such conditions as determined by the
Administrative Committee and set forth in the Option Agreement, except in the case of Options granted to the Company’s Directors and senior executive officers. One-third (1/3) of the Options shall become exercisable one year after the Vesting
Commencement Date, another one-third (1/3) of the Options shall become exercisable 18 months after the Vesting Commencement Date, the remaining one-third (1/3) of the Option shall become exercisable two (2) years after the Vesting Commencement Date.
Unless the Administrative Committee provides otherwise, vesting of Options granted hereunder to Directors shall be tolled during any unpaid leave of absence. An Option may not be exercised for a fraction of an Ordinary Share. 
  
 An Option shall be deemed exercised when the Company receives: 

 

	 	(i)	written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and 

  

	 	(ii)	full payment for the Ordinary Shares with respect to which the Option is exercised. 

  
 Full payment may consist of any consideration and method of payment authorized by the Administrative Committee and permitted
by the Option Agreement and the Plan. After the Option is exercised, the Company shall promptly issue (or cause to be issued) such number of Ordinary Shares as covered by such Option. Ordinary Shares issued upon exercise of an Option shall be issued
in the name of the Optionee or, if requested by the Optionee, in the joint name of the Optionee and his or her spouse. Until the Ordinary Shares are issued (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 attend general meeting of the Company, vote or receive dividends or other distributions or any other rights as a shareholder shall exist with respect to the Ordinary 

 Page 10 
  

 Shares, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other
right for which the record date is prior to the date the Ordinary Shares are issued, except as provided in Section 12 below. 
  
 Exercise of an Option in any manner shall result in a decrease in the number of Ordinary Shares thereafter available, both for purposes of the Plan and
for sale under the Option, by the number of Ordinary Shares as to which the Option is exercised. 
  

	 	(b)	Termination of Relationship as Service Provider 

  
 If an Optionee ceases to be a Service Provider (save and except due to the Optionee’s Disability, in which event subsection 9(c) below shall apply or
due to the Optionee’s death, in which event subsection 9(d) below shall apply), such Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement (of at least thirty (30) days but in no event later
than the expiration of the term of the Option as set forth in the Option Agreement) to the extent that the Option is vested on the date of such cessation. In the absence of a specified time in the Option Agreement, the Option shall remain
exercisable for three (3) months following the Optionee’s cessation as aforesaid (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement). If, on the date of cessation, the Optionee is not
vested as to his or her entire Option, the Ordinary Shares covered by the unvested portion of the Option shall revert to the Plan. If, after the cessation, the Optionee does not exercise his or her Option to the fullest extent vested within the time
specified in the Option Agreement or stipulated herein as the case may be, the Option shall lapse automatically, and the Ordinary Shares covered by such unexercised portion of the Option shall revert to the Plan and the Optionee shall have no claim
for compensation or otherwise against the Company whatsoever. 
  

	 	(c)	Disability of Optionee 

  
 If an Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her Option within such
period of time as is specified in the Option Agreement (of at least six (6) months but in no event later than the expiration of the term of such Option as set forth in the Option Agreement) to the extent the Option is vested on the date of such
cessation. In the absence of a specified time in the Option Agreement, the Option 

 Page 11 
  

 shall remain exercisable for twelve (12) months following the Optionee’s cessation as aforesaid (but
in no event later than the expiration of the term of such Option as set forth in the Option Agreement). If, on the date of cessation, the Optionee is not vested as to his or her entire Option, the Ordinary Shares covered by the unvested portion of
the Option shall revert to the Plan. If, after the cessation, the Optionee does not exercise his or her Option to the fullest extent vested within the time specified in the Option Agreement or stipulated herein as the case may be, the Option shall
lapse automatically, and the Ordinary Shares covered by such unexercised portion of the Option shall revert to the Plan and the Optionee shall have no claim for compensation or otherwise against the Company whatsoever. 
  

	 	(d)	Death of Optionee 

  
 If an Optionee dies while being a Service Provider, the Option may be exercised within such period of time as is specified in the Option Agreement (of at
least six (6) months but in no event later than the expiration of the term of such Option as set forth in the Option Agreement) to the extent that the Option is vested on the date of death by the Optionee’s estate or by a person who acquires
the right to exercise the Option by bequest or inheritance (collectively, the “Optionee’s Representative”). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Optionee’s death (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). If, at the time of death, the Optionee is not vested as to the entire Option, the Ordinary Shares
covered by the unvested portion of the Option shall immediately revert to the Plan. If the Option is not exercised by the Optionee’s Representative to the fullest extent vested within the time specified in the Option Agreement or stipulated
herein as the case may be, the Option shall lapse automatically, and the Ordinary Shares covered by such unexercised portion of the Option shall revert to the Plan and the Optionee’s estate and the Optionee’s Representative shall have no
claim for compensation or otherwise against the Company whatsoever. 
  

	 	(e)	Buyout Provisions 

  
 The Administrative Committee may at any time offer to buy out an Option previously granted for a payment in cash or Ordinary Shares, based on such fair
and reasonable terms and conditions as the 

 Page 12 
  

 Administrative Committee shall establish and communicate to the Optionee at the time that such offer is
made or as set forth in the Option Agreement. 
  

	10.	Stock Purchase Rights 

  

	 	(a)	Rights to Purchase 

  
 Stock Purchase Rights may be issued in favor of the Optionees either alone, in addition to, or in tandem with other awards granted under the Plan and/or
cash awards made by the Company outside of the Plan. After the Administrative Committee determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically of the terms, conditions and
restrictions related to the offer, including the number of Ordinary Shares that such person shall be entitled to purchase, the price to be paid, the forfeiture restrictions, the time limit for the exercise of the Stock Purchase Rights and the time
within which such person must accept such offer. 
  

	 	(b)	Repurchase Option 

  
 Unless the Administrative Committee determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable
upon the voluntary or involuntary termination of the Optionee as a Service Provider for any reason (including death or Disability). The purchase price for Ordinary Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the
original price paid by the Optionee and may be paid by cancellation of any indebtedness of the Optionee to the Company. The repurchase option shall lapse at such rate as the Administrative Committee may determine at its sole discretion. Except with
respect to Ordinary Shares purchased by the Directors and senior executive officers of the Company, the repurchase option shall lapse at a rate of one-third (1/3) one (1) year from the date of purchase, another one-third (1/3) 18 months from the
date of purchase, and the remaining one-third (1/3) two (2) years from the date of purchase. 
  

	 	(c)	Other Provisions 

  
 The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by
the Administrative Committee at its sole discretion. 

 Page 13 
  

	 	(d)	Rights as a Shareholder 

  
 Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to those of a shareholder and shall be a shareholder when his or
her purchase and personal particulars are entered upon the records of the Company or of the duly authorized transfer agent of the Company. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the
Stock Purchase Right is exercised, except as provided in Section 12 below. 
  

	11.	Non-Transferability of Options and Stock Purchase Rights 

  
 The Option and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of succession and may be exercised, during the lifetime of the Optionee, only by the Optionee except as provided in subsection 9(d) above. 
  

	12.	Adjustments Upon Changes in Capitalization, Merger or Asset Sale 

  

	 	(a)	(i) Changes in Capitalization 

  
 Subject to any action of the shareholders of the Company as necessitated by the Applicable Laws, the number of Ordinary Shares covered by each outstanding
Option or Stock Purchase Right, and the number of Ordinary Shares which have been authorized for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or which have been reverted to the Plan upon
cancellation or expiration of an Option or Stock Purchase Right, as well as the price per Ordinary Share covered by each such outstanding Option or Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number of
issued Ordinary Shares effected without receipt of consideration by the Company. The conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”. Such adjustment
shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock
of any class, 

 Page 14 
  

 shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of
Ordinary Shares subject to an Option or Stock Purchase Right. 
  

	 	(ii)	Adjustments for Stock Split, Stock Dividend, Etc. 

  
 If the Company shall at any time increase or decrease the number of its outstanding Ordinary Shares, or change in any way the rights and privileges of its
outstanding Ordinary Shares, by means of the payment of a stock dividend or any other distribution upon such Ordinary Shares, or through a stock split, subdivision, consolidation, combination, reclassification or recapitalization involving such
Ordinary Shares, then in relation to the Ordinary Shares that are covered by the Options or Stock Purchase Rights granted or available under the Plan and are affected by one or more of the above events, the numbers, rights and privileges of the
Ordinary Shares covered by the Option or Stock Purchase Rights shall be increased, decreased or changed in like manner as if such Ordinary Shares had been issued and outstanding, fully paid and nonassessable at the time of such occurrence.

  

	 	(b)	Dissolution or Liquidation 

  
 In the event of the proposed dissolution or liquidation of the Company, the Administrative Committee shall notify each Optionee as soon as practicable
prior to the effective date of such proposed dissolution or liquidation. The Administrative Committee may at its sole discretion provide for an Optionee to have the right to exercise his or her Option or Stock Purchase Right at any time until
fifteen (15) days prior to the commencement of such proposed dissolution or liquidation. In addition, the Administrative Committee may at its sole discretion provide that any repurchase option of the Company applicable to any Restricted Stock and/or
any right of the Company to buy out outstanding Options under subsection 9(e) shall lapse upon dissolution or liquidation of the Company, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated.

  

	 	(c)	Merger or Asset Sale 

  
 In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding
Option and Stock Purchase Right shall be assumed or an equivalent option or right substituted by the 

 Page 15 
  

 successor corporation or its holding company (meaning any entity which holds directly or indirectly at
least fifty point one percent of the voting equity of the successor corporation) or subsidiary (meaning any entity in which the successor corporation holds directly or indirectly fifty point one percent or more of the voting equity). In the event
that the successor corporation or its holding company or subsidiary refuses to assume or substitute for the Option or Stock Purchase Right, the Optionee shall fully vest in and have the right to exercise the Option or Stock Purchase Right as to all
of the Optioned Stock, including such part of the Optioned Stock as to which it would not otherwise be vested or exercisable and the repurchase option of the Company applicable to any Restricted Stock and/or any right of the Company to buy out
outstanding Options under subsection 9(e) shall lapse upon consummation of such merger or sale of assets. If an Option or Stock Purchase Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or
sale of assets, the Administrative Committee shall accordingly notify the Optionee in writing or electronically in which event the Option or Stock Purchase Right shall be fully exercisable for a period of fifteen (15) days from the date of such
notice, and the Option or Stock Purchase Right shall terminate upon the expiration of such fifteen (15) day period. For the purposes of this paragraph, the Option or Stock Purchase Right shall be considered assumed if, following the merger or sale
of assets, the outstanding Option or Stock Purchase Right confers the right to purchase or receive proportionately the consideration (whether stock, cash, or other securities or property) received by holders of Ordinary Shares in the merger or sale
of assets; provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its holding company or subsidiary, the Administrative Committee may, with the consent of the
successor corporation, provide for the consideration to be received upon the exercise of the Option or Stock Purchase Right to be solely common stock of the successor corporation or its holding company or subsidiary equal in fair market value to the
per share consideration received by holders of Ordinary Shares in the merger or sale of assets, such fair market value to be conclusively determined by the Administrative Committee. 
  

	 	(d)	General Adjustment Rules 

  
 If any adjustment or substitution provided for in this Section 12 shall result in the creation of a fractional Ordinary Share under any 

 Page 16 
  

 Option, the Company shall, in lieu of issuing such fractional Ordinary Share, pay to the Optionee a cash
sum in the amount equal to the product of such fraction multiplied by the Fair Market Value of an Ordinary Share on the date the fractional Ordinary Share otherwise would have been issued. 
  

	 	(e)	Determination by Administrative Committee 

  
 Adjustments under this Section 12 shall be made by the Administrative Committee whose determinations with regard thereto shall be final, conclusive and
binding upon all parties. 
  

	13.	Time of Granting Options and Stock Purchase Rights 

  
 The date of grant of an Option or Stock Purchase Right shall, for all purposes, be the date on which the Administrative Committee makes the determination
granting such Option or Stock Purchase Right, or such other date as determined by the Administrative Committee. Notice of the determination shall be given to each Service Provider to whom an Option or Stock Purchase Right is so granted within a
reasonable time after the date of such grant. 
  

	14.	Amendment and Termination of the Plan 

  

	 	(a)	Amendment and Termination 

  
 Subject to Subsection 14(b) below, the Board may at any time amend, alter, suspend or terminate the Plan. 
  

	 	(b)	Shareholder Approval 

  
 The Board shall obtain shareholder approval of any amendment to the Plan to the extent necessary and desirable to comply with Applicable Laws. 

 

	 	(c)	Effect of Amendment or Termination 

  
 No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the
Optionee and the Administrative Committee. Termination of the Plan shall not affect the Administrative Committee’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such
termination. 

 Page 17 
  

	15.	Conditions Upon Issuance of Shares 

  

	 	(a)	Legal Compliance 

  
 Ordinary Shares shall not be issued pursuant to the exercise of an Option or Stock Purchase Right unless the exercise of such Option or Stock Purchase
Right and the issuance and delivery of such Ordinary Shares shall comply with Applicable Laws. 
  

	 	(b)	Cash Payment 

  
 The payment of cash pursuant to the Plan shall be subject to all Applicable Laws. 
  

	 	(c)	Investment Representations 

  
 The Company may require any person to whom an Option or a Stock Purchase Right is granted, as a condition of exercising such Option or Stock Purchase
Right or receiving Ordinary Shares pursuant to the Plan, to give written assurances, in the substance and form satisfactory to the Company and its legal counsel, to the effect that such person is acquiring the Ordinary Shares subject to the Option
or Stock Purchase Right for his own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Company deems necessary or appropriate in order to comply with Applicable
Laws. 
  

	 	(d)	The Administrative Committee may provide that Ordinary Shares issuable upon the exercise of an Option or Stock Purchase Right shall, under certain conditions, be subject to
restrictions whereby the Company has a right of first refusal with respect to such Ordinary Shares, which restrictions may survive an Optionee’s term of employment, engagement, appointment or service with the Company. 

 

	16.	Inability to Obtain Regulatory Approval 

  
 The inability of the Company to obtain approval from any regulatory body having jurisdiction over the Company with respect to issuance of Ordinary Shares
pursuant to this Plan shall relieve the Company of any liability in respect of the failure to issue such Ordinary Shares as to which such requisite approval shall not have been obtained. 

 Page 18 
  

	17.	Shareholder Approval 

  
 The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months after the date the Plan is adopted by the Board. Such
shareholder approval shall be obtained in the degree and manner required under Applicable Laws. 
  

	18.	Information to Optionees and Purchasers 

  
 The Company shall provide to each Optionee and to each individual who acquires Ordinary Shares pursuant to the Plan, not less frequently than annually
during the period such Optionee or purchaser has one or more Options or Stock Purchase Rights outstanding, and, in the case of an individual who acquires Ordinary Shares pursuant to the Plan, during the period such individual owns such Ordinary
Shares, copies of annual financial statements. The Company shall not be required to provide such statements to key employees whose duties in connection with the Company assure their access to equivalent information. 
  

	19.	Withholding 

  
 The Company’s obligations to deliver Ordinary Shares upon the exercise of an Option or Stock Purchase Right shall be subject to the Optionee’s
satisfaction of all Applicable Laws related to tax withholding as a result of such exercise. 
  

	20.	Nonexclusivity of the Plan 

  
 Neither the adoption of the Plan by the Board nor the submission of the Plan to shareholders of the Company for approval shall be construed as creating
any limitations on the power or authority of the Board to adopt such other or additional incentive or other compensation arrangements of whatever nature as the Board may deem necessary or desirable or preclude or limit the continuation of any other
plan, practice or arrangement for the payment of compensation or fringe benefits to employees generally, or to any class or group of employees, which the Company or any Subsidiary now has lawfully put into effect, including, without limitation, any
retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term incentive plans. 

 Page 19 
  

	21.	No Transfer or Assignment 

  
 The Option or Stock Purchase Right granted hereunder shall not be transferred or assigned without the approval in writing of the Administrative Committee.

  

	22.	Governing Law 

  
 The terms and conditions of this Plan shall be governed by and construed in accordance with the laws of New York, U.S.A. 
  
 - END -

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