Document:

exv10w1

Exhibit 10.1

HISOFT TECHNOLOGY INTERNATIONAL LIMITED

AMENDED AND RESTATED SHARE INCENTIVE PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. PURPOSE OF THE PLAN
	 	 	1	 
	2. ADMINISTRATION
	 	 	1	 
	2.1 Administrator
	 	 	1	 
	2.2 Plan Awards; Interpretation; Powers of Administrator
	 	 	2	 
	2.3 Binding Determinations
	 	 	3	 
	2.4 Reliance on Experts
	 	 	3	 
	2.5 Delegation
	 	 	3	 
	3. ELIGIBILITY
	 	 	3	 
	4. SHARES SUBJECT TO THE PLAN
	 	 	4	 
	4.1 Shares Available
	 	 	4	 
	4.2 Share Limits
	 	 	4	 
	4.3 Replenishment and Reissue of Unvested Awards
	 	 	4	 
	4.4 Reservation of Shares
	 	 	5	 
	5. OPTION GRANT PROGRAM
	 	 	5	 
	5.1 Option Grants in General
	 	 	5	 
	5.2 Types of Options
	 	 	5	 
	5.3 Option Price
	 	 	6	 
	5.4 Vesting; Term; Exercise Procedure
	 	 	8	 
	5.5 Limitations on Grant and Terms of Incentive Stock Options
	 	 	9	 
	5.6 Limits on 10% Holders
	 	 	9	 
	5.7 Effects of Termination of Employment on Options
	 	 	10	 
	5.8 Option Repricing/Cancellation and Regrant/Waiver of Restrictions
	 	 	11	 
	6. SHARE AWARD PROGRAM
	 	 	11	 
	6.1 Share Awards in General
	 	 	11	 
	6.2 Types of Share Awards
	 	 	11	 
	6.3 Purchase Price
	 	 	11	 
	6.4 Vesting
	 	 	12	 
	6.5 Term
	 	 	12	 
	6.6 Share Certificates; Fractional Shares
	 	 	12	 
	6.7 Dividend and Voting Rights
	 	 	12	 
	6.8 Termination of Employment; Return to the Company
	 	 	12	 

-i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	6.9 Waiver of Restrictions
	 	 	13	 
	7. PROVISIONS APPLICABLE TO ALL AWARDS
	 	 	13	 
	7.1 Rights of Eligible Persons, Participants and Beneficiaries
	 	 	13	 
	7.2 No Transferability; Limited Exception to Transfer Restrictions
	 	 	14	 
	7.3 Adjustments; Changes in Control
	 	 	15	 
	7.4 Termination of Employment or Services
	 	 	19	 
	7.5 Compliance with Laws
	 	 	20	 
	7.6 Tax Withholding
	 	 	22	 
	7.7 Plan and Award Amendments, Termination and Suspension
	 	 	23	 
	7.8 Privileges of Share Ownership
	 	 	23	 
	7.9 Share-Based Awards in Substitution for Awards Granted by Other Company
	 	 	23	 
	7.10 Effective Date of the Plan
	 	 	24	 
	7.11 Term of the Plan
	 	 	24	 
	7.12 Governing Law/Severability
	 	 	24	 
	7.13 Captions
	 	 	24	 
	7.14 Non-Exclusivity of Plan
	 	 	25	 
	7.15 No Restriction on Corporate Powers
	 	 	25	 
	7.16 Other Company Compensation or Benefit Programs
	 	 	25	 
	7.17 Other Languages
	 	 	25	 
	8. DEFINITIONS
	 	 	25	 

-ii-

 

 

HISOFT TECHNOLOGY INTERNATIONAL LIMITED

AMENDED AND RESTATED SHARE INCENTIVE PLAN

PREFACE

     This Plan is divided into two separate equity programs: (1) the option grant program set forth
in Section 5 under which Eligible Persons (as defined in Section 3) may, at the discretion of the
Administrator, be granted Options, and (2) the share award program set forth in Section 6 under
which Eligible Persons may, at the discretion of the Administrator, be awarded restricted or
unrestricted Ordinary Shares. Section 2 of this Plan contains the general rules regarding the
administration of this Plan. Section 3 sets forth the requirements for eligibility to receive an
Award grant under this Plan. Section 4 describes the authorized shares of the Company that may be
subject to Awards granted under this Plan. Section 7 contains other provisions applicable to all
Awards granted under this Plan. Section 8 provides definitions for certain capitalized terms used
in this Plan and not otherwise defined herein.

	1.	 	PURPOSE OF THE PLAN.

	 	 	The purpose of this Plan is to promote the success of the Company and the interests of its
shareholders by providing a means through which the Company may grant equity-based
incentives to attract, motivate, retain and reward certain officers, employees, directors
and other eligible persons and to further link the interests of Award recipients with
those of the Company’s shareholders generally.

	2.	 	ADMINISTRATION.

	 	2.1	 	Administrator. This Plan shall be administered by and all Awards under this
Plan shall be authorized by the Administrator. The “Administrator” means the Board or
one or more committees appointed by the Board or another committee (within its
delegated authority) to administer all or certain aspects of this Plan. Any such
committee shall be comprised solely of one or more directors or such number of
directors as may be required under applicable law. A committee may delegate some or
all of its authority to another committee so constituted. The Board or a committee
comprised solely of directors may also delegate, to the extent permitted by the laws
of the Cayman Islands and any other applicable law, to one or more officers of the
Company, its powers under this Plan (a) to designate the officers and employees of the
Company and its Affiliates who will receive grants of Awards under this Plan, and (b)
to determine the number of shares subject to, and the other terms and conditions of,
such Awards. The Board may delegate different levels of authority to different
committees with administrative and grant authority under this Plan. Unless otherwise
provided in the Memorandum and Articles of Association of the Company or the
applicable charter of any Administrator: (a) a majority of the members of the acting
Administrator shall constitute a quorum, and (b) the vote of a majority of the members
present assuming the presence of a quorum or the unanimous written consent of the
members of the Administrator shall constitute action by the acting Administrator.

 

 

	 	2.2	 	Plan Awards; Interpretation; Powers of Administrator. Subject to the express
provisions of this Plan, the Administrator is authorized and empowered to do all things
necessary or desirable in connection with the authorization of Awards and the
administration of this Plan (in the case of a committee or delegation to one or more
officers, within the authority delegated to that committee or person(s)), including,
without limitation, the authority to:

	 	(a)	 	determine eligibility and, from among those persons determined to be
eligible, the particular Eligible Persons who will receive Awards;
	 
	 	(b)	 	grant Awards to Eligible Persons, determine the price and number of
securities to be offered or awarded to any of such persons, determine the other
specific terms and conditions of Awards consistent with the express limits of this
Plan, establish the installments (if any) in which such Awards will become
exercisable or will vest (which may include, without limitation, performance and/or
time-based schedules) or determine that no delayed exercisability or vesting is
required, establish any applicable performance targets, and establish the events of
termination or reversion of such Awards;
	 
	 	(c)	 	approve the forms of Award Agreements, which need not be identical either as
to type of Award or among Participants;
	 
	 	(d)	 	construe and interpret this Plan and any Award Agreement or other agreements
defining the rights and obligations of the Company, its Affiliates, and Participants
under this Plan, make factual determinations with respect to the administration of
this Plan, further define the terms used in this Plan, and prescribe, amend and
rescind rules and regulations relating to the administration of this Plan or the
Awards;
	 
	 	(e)	 	cancel, modify, or waive the Company’s rights with respect to, or modify,
discontinue, suspend, or terminate any or all outstanding Awards, subject to any
required consent under Section 7.7.4;
	 
	 	(f)	 	accelerate or extend the vesting or exercisability or extend the term of any
or all outstanding Awards (within the maximum ten-year term of Awards under Sections
5.4.2 and 6.5) in such circumstances as the Administrator may deem appropriate
(including, without limitation, in connection with a termination of employment or
services or other events of a personal nature);
	 
	 	(g)	 	determine Fair Market Value for purposes of this Plan and Awards;
	 
	 	(h)	 	determine the duration and purposes of leaves of absence that may be granted
to Participants without constituting a termination of their employment for purposes of
this Plan; and
	 
	 	(i)	 	determine whether, and the extent to which, adjustments are required
pursuant to Section 7.3 hereof and authorize the termination, conversion,

2

 

	 	 	 	substitution or succession of awards upon the occurrence of an event of the
type described in Section 7.3.

	 	2.3	 	Binding Determinations. Any action taken by, or inaction of, the Company, any
Affiliate, the Board or the Administrator relating or pursuant to this Plan and within
its authority hereunder or under applicable law shall be within the absolute
discretion of that entity or body and shall be conclusive and binding upon all
persons. Neither the Board nor the Administrator, nor any member thereof or person
acting at the direction thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in connection with
this Plan (or any Award), and all such persons shall be entitled to indemnification
and reimbursement by the Company in respect of any claim, loss, damage or expense
(including, without limitation, attorneys’ fees) arising or resulting therefrom to the
fullest extent permitted by law and/or under any directors and officers liability
insurance coverage that may be in effect from time to time.
	 
	 	2.4	 	Reliance on Experts. In making any determination or in taking or not taking
any action under this Plan, the Administrator or the Board, as the case may be, may
obtain and may rely upon the advice of experts, including employees of and
professional advisors to the Company. No director, officer or agent of the Company or
any of its Affiliates shall be liable for any such action or determination taken or
made or omitted in good faith.
	 
	 	2.5	 	Delegation. The Administrator may delegate ministerial, non-discretionary
functions to individuals who are officers or employees of the Company or any of its
Affiliates or to third parties.

	3.	 	ELIGIBILITY.

	 	 	Awards may be granted under this Plan only to those persons that the Administrator
determines to be Eligible Persons. An “Eligible Person” means any person who qualifies as
one of the following at the time of grant of the respective Award:

	 	(a)	 	an officer (whether or not a director) or employee of the Company or any of
its Affiliates;
	 
	 	(b)	 	any member of the Board; or
	 
	 	(c)	 	any director of one of the Company’s Affiliates, or any individual consultant
or advisor who renders or has rendered bona fide services (other than services in
connection with the offering or sale of securities of the Company or one of its
Affiliates, as applicable, in a capital raising transaction or as a market maker or
promoter of that entity’s securities) to the Company or one of its Affiliates.

	 	 	An advisor or consultant may be selected as an Eligible Person pursuant to clause (c) above
only if such person’s participation in this Plan would not adversely affect (1) the
Company’s eligibility to rely on the Rule 701 exemption from registration under the

3

 

	 	 	Securities Act for the offering of shares issuable under this Plan by the Company, or (2)
the Company’s compliance with any other applicable laws.

	 	 	An Eligible Person may, but need not, be granted one or more Awards pursuant Section 5
and/or one or more Awards pursuant to Section 6. An Eligible Person who has been granted an
Award under this Plan may, if otherwise eligible, be granted additional Awards under this
Plan if the Administrator so determines. However, a person’s status as an Eligible Person
is not a commitment that any Award will be granted to that person under this Plan.
Furthermore, an Eligible Person who has been granted an Award under Section 5 is not
necessarily entitled to an Award under Section 6, or vice versa, unless otherwise expressly
determined by the Administrator.

	 	 	Each Award granted under this Plan must be approved by the Administrator at or prior to the
grant of the Award.

	4.	 	SHARES SUBJECT TO THE PLAN.

	 	4.1	 	Shares Available. Subject to the provisions of Section 7.3.1, the shares that
may be delivered under this Plan will be the Company’s authorized but unissued
Ordinary Shares. The Ordinary Shares issued and delivered may be issued and delivered
for any lawful consideration.
	 
	 	4.2	 	Share Limits. Subject to the provisions of Section 7.3.1 and further subject
to the share counting rules of Section 4.3, the maximum number of Ordinary Shares that
may be delivered pursuant to Awards granted under this Plan will not exceed
92,197,949* shares (the “Share Limit”). As required under U.S. Treasury Regulation
Section 1.422-2(b)(3)(i), in no event will the number of Ordinary Shares that may be
delivered pursuant to Incentive Stock Options granted under this Plan exceed the Share
Limit.
	 
	 	4.3	 	Replenishment and Reissue of Unvested Awards. To the extent that an Award is
settled in cash or a form other than Ordinary Shares, the shares that would have been
delivered had there been no such cash or other settlement shall not be counted against
the shares available for issuance under this Plan. No Award may be granted under this
Plan unless, on the date of grant, the sum of (a) the maximum number of Ordinary Shares
issuable at any time pursuant to such Award, plus (b) the number of Ordinary Shares
that have previously been issued pursuant to Awards granted under this Plan, plus (c)
the maximum number of Ordinary Shares that may be issued at any time after such date of
grant pursuant to Awards that are outstanding on such date, does not exceed the Share
Limit. Notwithstanding the foregoing, Ordinary Shares that are subject to or underlie

 

			
	*	 	This number includes a “Special Incentive Pool” of 10 million shares, with the vesting of any
Awards covering such shares to be subject to completion of a IPO with a market capitalization of no
less than US$400mn (“Threshold IPO”) on or before August 31, 2010 (in addition to any other vesting
requirements that may be imposed on such Award). If a Threshold
IPO is not completed by August
31, 2010, any then-outstanding Awards covered by shares in the Special Incentive Pool shall
automatically be cancelled or forfeited, as the case may be, on that date, and the Special
Incentive Pool shall be cancelled and shall no longer be available for Award grants under the Plan.

4

 

	 	 	 	Options granted under this Plan that expire or for any reason are canceled or
terminated without having been exercised (or Ordinary Shares subject to or
underlying the unexercised portion of such Options in the case of Options that were
partially exercised), as well as Ordinary Shares that are subject to Share Awards
made under this Plan that are forfeited to the Company or otherwise repurchased by
the Company prior to the vesting of such shares for a price not greater than the
original purchase or issue price of such shares (as adjusted pursuant to Section
7.3.1) will again, except to the extent prohibited by law or applicable listing or
regulatory requirements (and subject to any applicable limitations of the Code in
the case of Awards intended to be Incentive Stock Options), be available for
subsequent Award grants under this Plan. Shares that are exchanged by a Participant
or withheld by the Company as full or partial payment in connection with any Award
under this Plan, as well as any shares exchanged by a Participant or withheld by
the Company or one of its Affiliates to satisfy the tax withholding obligations
related to any Award, shall be available for subsequent awards under this Plan.
	 
	 	4.4	 	Reservation of Shares. The Company shall at all times reserve a number of
Ordinary Shares sufficient to cover the Company’s obligations and contingent
obligations to deliver shares with respect to Awards then outstanding under this Plan.

	5.	 	OPTION GRANT PROGRAM.

	 	5.1	 	Option Grants in General. Each Option shall be evidenced by an Award Agreement
in the form approved by the Administrator. The Award Agreement evidencing an Option
shall contain the terms established by the Administrator for that Option, as well as
any other terms, provisions, or restrictions that the Administrator may impose on the
Option or any Ordinary Shares subject to the Option; in each case subject to the
applicable provisions and limitations of this Section 5 and the other applicable
provisions and limitations of this Plan. The Administrator may require that the
recipient of an Option promptly execute and return to the Company his or her Award
Agreement evidencing the Option. In addition, the Administrator may require that the
spouse of any married recipient of an Option also promptly execute and return to the
Company the Award Agreement evidencing the Option granted to the recipient or such
other spousal consent form that the Administrator may require in connection with the
grant of the Option.
	 
	 	5.2	 	Types of Options. The Administrator will designate each Option granted under
this Plan to a U.S. resident as either an Incentive Stock Option or a Nonqualified
Option, and such designation shall be set forth in the applicable Award Agreement. Any
Option granted under this Plan to a U.S. resident that is not expressly designated in
the applicable Award Agreement as an Incentive Stock Option will be deemed to be
designated a Nonqualified Option under this Plan and not an “incentive stock option”
within the meaning of Section 422 of the Code. Incentive Stock Options shall be
subject to the provisions of Section 5.5 in addition to the provisions of this Plan
applicable to Options generally. The

5

 

	 	 	 	Administrator may designate any Option granted under this Plan to a non-U.S. resident in
accordance with the rules and regulations applicable to options in the jurisdiction in
which such person is a resident.
	 
	 	5.3	 	Option Price.

	 	5.3.1	 	Pricing Limits. Subject to the following provisions of this Section 5.3.1,
the Administrator will determine the purchase price per share of the
Ordinary Shares covered by each Option (the “exercise price” of the
Option) at the time of the grant of the Option, which exercise price will be
set forth in the applicable Award Agreement. In no case will the exercise
price of an Option be less than the greater of:

	 	(a)	 	the nominal value of the Ordinary Shares;
	 
	 	(b)	 	subject to clause (c) below, 100% of the Fair Market Value
of the Ordinary Shares on the date of grant; or
	 
	 	(c)	 	in the case of an Incentive Stock Option granted to a
Participant described in Section 5.6, 110% of the Fair Market Value of the
Ordinary Shares on the date of grant.

	 	5.3.2	 	Payment Provisions. The Company will not be obligated to deliver
certificates for the Ordinary Shares to be purchased on exercise of an
Option unless and until it receives full payment of the exercise price
therefor, all related withholding obligations under Section 7.6 have been
satisfied, and all other conditions to the exercise of the Option set forth
herein or in the Award Agreement have been satisfied. The purchase price
of any Ordinary Shares purchased on exercise of an Option must be paid
in full at the time of each purchase in such lawful consideration as may be
permitted or required by the Administrator, which may include, without
limitation, one or a combination of the following methods:

	 	(a)	 	cash, check payable to the order of the Company, or
electronic funds transfer;
	 
	 	(b)	 	notice and third party payment in such manner as may be
authorized by the Administrator;
	 
	 	(c)	 	the delivery of previously owned Ordinary Shares;
	 
	 	(d)	 	by a reduction in the number of Ordinary Shares otherwise
deliverable pursuant to the Award;
	 
	 	(e)	 	subject to such procedures as the Administrator may adopt,
pursuant to a “cashless exercise”; or

6

 

	 	(f)	 	if authorized by the Administrator or specified in the applicable Award
Agreement, by a promissory note of the Participant consistent with the
requirements of Section 5.3.3.

	 	 	 	In no event shall any shares newly-issued by the Company be issued for less than the
minimum lawful consideration for such shares or for consideration other than consideration
permitted by applicable law. In the event that the Administrator allows a Participant to
exercise an Award by delivering Ordinary Shares previously owned by such Participant and
unless otherwise expressly provided by the Administrator, any shares delivered which were
initially acquired by the Participant from the Company (upon exercise of an option or
otherwise) must have been owned by the Participant at least six months as of the date of
delivery. Ordinary Shares used to satisfy the exercise price of an Option (whether
previously-owned shares or shares otherwise deliverable pursuant to the terms of the
Option) shall be valued at their Fair Market Value on the date of exercise. Unless
otherwise expressly provided in the applicable Award Agreement, the Administrator may
eliminate or limit a Participant’s ability to pay the purchase or exercise price of any
Award by any method other than cash payment to the Company.
	 
	 	5.3.3	 	Acceptance of Notes to Finance Exercise. The Company may, with the Administrator’s
approval in each specific case, accept one or more promissory notes from any Eligible Person
in connection with the exercise of any Option; provided that any such note shall be subject
to the following terms and conditions:

	 	(a)	 	The principal of the note shall not exceed the amount required to be paid to
the Company upon the exercise, purchase or acquisition of one or more Awards under
this Plan and the note shall be delivered directly to the Company in consideration of
such exercise, purchase or acquisition.
	 
	 	(b)	 	The initial term of the note shall be determined by the Administrator;
provided that the term of the note, including extensions, shall not exceed a period
of five years.
	 
	 	(c)	 	The note shall provide for full recourse to the Participant and shall bear
interest at a rate determined by the Administrator, but not less than the interest
rate necessary to avoid the imputation of interest under the Code and to avoid any
adverse accounting consequences in connection with the exercise, purchase or
acquisition.
	 
	 	(d)	 	If the employment or services of the Participant by or to the Company and
its Affiliates terminates, the unpaid principal balance of the note shall become due
and payable immediately on the effective date of such termination; provided, however,
that if a sale of the shares acquired on exercise of the Option would cause

7

 

	 	 	 	such Participant to incur liability under Section 16(b) of the Exchange
Act, the unpaid balance shall become due and payable on the 10th business
day after the first day on which a sale of such shares could have been
made without incurring such liability assuming for these purposes that
there are no other transactions (or deemed transactions) in securities of
the Company by the Participant subsequent to such termination.
	 
	 	(e)	 	If required by the Administrator or by applicable law, the
note shall be secured by a pledge of any shares or rights financed thereby or
other collateral, in compliance with applicable law.

	 	 	 	The terms, repayment provisions, and collateral release provisions of the note and
the pledge securing the note shall conform with all applicable rules and
regulations, including those of the Federal Reserve Board of the United States and
any applicable law, as then in effect.

	 	5.4	 	Vesting; Term; Exercise Procedure.

	 	5.4.1	 	Vesting. An Option may be exercised only to the extent that it is
vested and exercisable. The Administrator will determine the vesting and/or
exercisability provisions of each Option (which may be based on performance criteria,
passage of time or other factors or any combination thereof), which provisions will
be set forth in the applicable Award Agreement. Unless the Administrator otherwise
expressly provides, once exercisable an Option will remain exercisable until the
expiration or earlier termination of the Option.
	 
	 	5.4.2	 	Term. Each Option shall expire not more than 10 years after its date
of grant. Each Option will be subject to earlier termination as provided in or
pursuant to Sections 5.7 and 7.3. Any payment of cash or delivery of shares in payment
of or pursuant to an Option may be delayed until a future date if specifically
authorized by the Administrator in writing and by the Participant.
	 
	 	5.4.3	 	Exercise Procedure. Any exercisable Option will be deemed to be
exercised when the Company receives written notice of such exercise from the
Participant (on a form and in such manner as may be required by the Administrator),
together with any required payment made in accordance with Section 5.3 and Section
7.6 and any written statement required pursuant to Section 7.5.1.
	 
	 	5.4.4	 	Fractional Shares/Minimum Issue. Fractional share interests will be
disregarded, but may be accumulated. The Administrator, however, may determine that
cash, other securities, or other property will be paid or transferred in lieu of any
fractional share interests. No fewer than 100 shares (subject to adjustment pursuant
to Section 7.3.1) may be purchased

8

 

	 	 	 	on exercise of any Option at one time unless the number purchased is the total
number at the time available for purchase under the Option.

	 	5.5	 	Limitations on Grant and Terms of Incentive Stock Options.

	 	5.5.1	 	$100,000 Limit. To the extent that the aggregate Fair Market Value
of shares with respect to which incentive stock options first become exercisable by a
Participant in any calendar year exceeds $100,000, taking into account both Ordinary
Shares subject to Incentive Stock Options under this Plan and shares subject to
incentive stock options under all other plans of the Company or any of its Affiliates,
such options will be treated as nonqualified options. For this purpose, the Fair
Market Value of the shares subject to options will be determined as of the date the
options were awarded. In reducing the number of options treated as incentive stock
options to meet the $100,000 limit, the most recently granted options will be reduced
(recharacterized as nonqualified options) first. To the extent a reduction of
simultaneously granted options is necessary to meet the $100,000 limit, the
Administrator may, in the manner and to the extent permitted by law, designate which
Ordinary Shares are to be treated as shares acquired pursuant to the exercise of an
incentive stock option.
	 
	 	5.5.2	 	Other Code Limits. Incentive Stock Options may only be granted to
individuals that are employees of the Company or one of its Affiliates and satisfy
the other eligibility requirements of the Code. Any Award Agreement relating to
Incentive Stock Options will contain or shall be deemed to contain such other terms
and conditions as from time to time are required in order that the Option be an
“incentive stock option” as that term is defined in Section 422 of the Code.
	 
	 	5.5.3	 	ISO Notice of Sale Requirement. Any Participant who exercises an
Incentive Stock Option shall give prompt written notice to the Company of any sale or
other transfer of the Ordinary Shares acquired on such exercise if the sale or other
transfer occurs within (a) one year after the exercise date of the Option, or (b) two
years after the grant date of the Option.

	 	5.6	 	Limits on 10% Holders. No Incentive Stock Option may be granted to any
person who, at the time the Option is granted, owns (or is deemed to own under
Section 424(d) of the Code) outstanding shares of the Company (or any of its
Affiliates) possessing more than 10% of the total combined voting power of all
classes of shares of the Company (or any of its Affiliates), unless the exercise
price of such Option is at least 110% of the Fair Market Value of the shares
subject to the Option and such Option by its terms is not exercisable after the
expiration of five years from the date such Option is granted.

9

 

	 	5.7	 	Effects of Termination of Employment on Options.

	 	5.7.1	 	Dismissal for Cause. Unless otherwise provided in the Award
Agreement and subject to earlier termination pursuant to or as contemplated by
Section 5.4.2 or 7.3, if a Participant’s employment by or service to the Company or
any of its Affiliates is terminated by such entity for Cause, the Participant’s
Option will terminate on the thirtieth (30th) day following the Participant’s
Severance Date, whether or not the Option is then vested and/or exercisable.
	 
	 	5.7.2	 	Death or Disability. Unless otherwise provided in the Award
Agreement (consistent with applicable securities laws) and subject to earlier
termination pursuant to or as contemplated by Section 5.4.2 or 7.3, if a
Participant’s employment by or service to the Company or any of its Affiliates
terminates as a result of the Participant’s death or Total Disability:

	 	(a)	 	the Participant (or his or her Personal Representative or
Beneficiary, in the case of the Participant’s Total Disability or death,
respectively), will have until the date that is six months after the
Participant’s Severance Date to exercise the Participant’s Option (or portion
thereof) to the extent that it was vested and exercisable on the Severance
Date;
	 
	 	(b)	 	the Option, to the extent not vested and exercisable on the
Participant’s Severance Date, shall terminate on the Severance Date; and
	 
	 	(c)	 	the Option, to the extent exercisable for the 6-month period
following the Participant’s Severance Date and not exercised during such
period, shall terminate at the close of business on the last day of the
six-month period.

	 	5.7.3	 	Other Terminations of Employment. Unless otherwise provided in the
Award Agreement (consistent with applicable securities laws) and subject
to earlier termination pursuant to or as contemplated by Section 5.4.2 or
7.3, if a Participant’s employment by or service to the Company or any of
its Affiliates terminates for any reason, including upon resignation or
retirement, but other than a termination by such entity for Cause or
because of the Participant’s death or Total Disability:

	 	(a)	 	the Participant will have until the date that is 60 days
after the Participant’s Severance Date to exercise his or her Option (or
portion thereof) to the extent that it was vested and exercisable on the
Severance Date;
	 
	 	(b)	 	the Option, to the extent not vested and exercisable on the
Participant’s Severance Date, shall terminate on the Severance Date; and

10

 

	 	5.7.4	 	the Option, to the extent exercisable for the 60-day period following
the Participant’s Severance Date and not exercised during such period, shall
terminate at the close of business on the last day of the 60-day period.

	 	5.8	 	Option Repricing/Cancellation and Regrant/Waiver of Restrictions. Subject to
Section 4 and Section 7.7 and the specific limitations on Options contained in this
Plan, the Administrator from time to time may authorize, generally or in specific
cases only, for the benefit of any Eligible Person, any adjustment in the exercise
price, the vesting schedule, the number of shares subject to, or the term of, an
Option granted under this Plan by cancellation of an outstanding Option and a
subsequent regranting of the Option, by amendment, by substitution of an outstanding
Option, by waiver or by other legally valid means. Such amendment or other action may
result in, among other changes, an exercise price that is higher or lower than the
exercise price of the original or prior Option, provide for a greater or lesser number
of Ordinary Shares subject to the Option, or provide for a longer or shorter vesting
or exercise period.

	6.	 	SHARE AWARD PROGRAM.

	 	6.1	 	Share Awards in General. Each Share Award shall be evidenced by an Award
Agreement in the form approved by the Administrator. The Award Agreement evidencing a
Share Award shall contain the terms established by the Administrator for that Share
Award, as well as any other terms, provisions, or restrictions that the Administrator
may impose on the Share Award; in each case subject to the applicable provisions and
limitations of this Section 6 and the other applicable provisions and limitations of
this Plan. The Administrator may require that the recipient of a Share Award promptly
execute and return to the Company his or her Award Agreement evidencing the Share
Award. In addition, the Administrator may require that the spouse of any married
recipient of a Share Award also promptly execute and return to the Company the Award
Agreement evidencing the Share Award granted to the recipient or such other spousal
consent form that the Administrator may require in connection with the grant of the
Share Award.
	 
	 	6.2	 	Types of Share Awards. The Administrator shall designate whether a Share Award
shall be a Restricted Share Award, and such designation shall be set forth in the
applicable Award Agreement.
	 
	 	6.3	 	Purchase Price.

	 	6.3.1	 	Pricing Limits. Subject to the following provisions
of this Section 6.3, the Administrator will determine the purchase price per
share of the Ordinary Shares covered by each Share Award at the time of grant
of the Award. In no case will such purchase price be less than the nominal
value of the Ordinary Shares.

11

 

	 	6.3.2	 	Payment Provisions. The Company will not be obligated to record in
the Company’s register of members, or issue certificates evidencing, Ordinary
Shares awarded under this Section 6 unless and until it receives full payment of
the purchase price therefor and all other conditions to the purchase, as determined
by the Administrator, have been satisfied, at which point the relevant shares shall
be issued and noted in the Company’s register of members. The purchase price of any
shares subject to a Share Award must be paid in full at the time of the purchase in
such lawful consideration as may be permitted or required by the Administrator,
which may include, without limitation, one or a combination of the methods set
forth in clauses (a) through (f) in Section 5.3.2 and/or past services rendered to
the Company or any of its Affiliates.

	 	6.4	 	Vesting. The restrictions imposed on the Ordinary Shares subject to a Restricted Share Award
(which may be based on performance criteria, passage of time or other factors or any
combination thereof) will be set forth in the applicable Award Agreement.
	 
	 	6.5	 	Term. A Share Award shall either vest or be repurchased by the Company not more than 10
years after the date of grant. Each Share Award will be subject to earlier repurchase as
provided in or pursuant to Sections 6.8 and 7.3. Any payment of cash or delivery of shares in
payment for a Share Award may be delayed until a future date if specifically authorized by
the Administrator in writing and by the Participant.
	 
	 	6.6	 	Share Certificates; Fractional Shares. Share certificates evidencing Restricted Shares will
bear a legend making appropriate reference to the restrictions imposed hereunder and will be
held by the Company or by a third party designated by the Administrator until the restrictions
on such shares have lapsed, the shares have vested in accordance with the provisions of the
Award Agreement and Section 6.4, and any related loan has been repaid. Fractional share
interests will be disregarded, but may be accumulated. The Administrator, however, may
determine that cash, other securities, or other property will be paid or transferred in lieu
of any fractional share interests.
	 
	 	6.7	 	Dividend and Voting Rights. Unless otherwise provided in the applicable Award Agreement, a
Participant holding Restricted Shares will be entitled to cash dividend and voting rights for
all Restricted Shares issued even though they are not vested, but such rights will terminate
immediately as to any Restricted Shares which are repurchased by the Company.
	 
	 	6.8	 	Termination of Employment; Return to the Company. Unless the Administrator otherwise
expressly provides, Restricted Shares subject to an Award that remain subject to vesting
conditions that have not been satisfied by the time specified in the applicable Award
Agreement (which may include, without limitation, the Participant’s Severance Date), will not
vest and will be reacquired by the Company in such manner and on such terms as the
Administrator provides, which terms shall include return or repayment of the lower of
(a) the Fair Market Value

12

 

	 	 	 	of the Restricted Shares at the time of the termination, or (b) the original
purchase price of the Restricted Shares, without interest, to the Participant to
the extent not prohibited by law. The Award Agreement shall specify any other terms
or conditions of the repurchase if the Award fails to vest.
	 
	 	6.9	 	Waiver of Restrictions. Subject to Sections 4 and 7.7 and the specific
limitations on Share Awards contained in this Plan, the Administrator from time to time
may authorize, generally or in specific cases only, for the benefit of any Eligible
Person, any adjustment in the vesting schedule, or the restrictions upon or the term
of, a Share Award granted under this Plan by amendment, by substitution of an
outstanding Share Award, by waiver or by other legally valid means.

	7.	 	PROVISIONS APPLICABLE TO ALL AWARDS.

	 	7.1	 	Rights of Eligible Persons, Participants and Beneficiaries.

	 	7.1.1	 	Employment Status. No person shall have any claim or
rights to be granted an Award (or additional Awards, as the case may be) under
this Plan, subject to any express contractual rights (set forth in a document
other than this Plan) to the contrary.
	 
	 	7.1.2	 	No Employment/Service Contract. Nothing contained in
this Plan (or in any other documents under this Plan or related to any Award)
shall confer upon any Eligible Person or Participant any right to continue in
the employ or other service of the Company or any of its Affiliates,
constitute any contract or agreement of employment or other service or affect
an employee’s status as an employee at will, nor shall interfere in any way
with the right of the Company or any Affiliate to change such person’s
compensation or other benefits, or to terminate his or her employment or other
service, with or without cause at any time. Nothing in this Section 7.1.2, or
in Section 7.3 or 7.15, however, is intended to adversely affect any express
independent right of such person under a separate employment or service
contract. An Award Agreement shall not constitute a contract of employment or
service.
	 
	 	7.1.3	 	Plan Not Funded. Awards payable under this Plan will
be payable in Ordinary Shares or from the general assets of the Company, and
(except as to the share reservation provided in Section 4.4) no special or
separate reserve, fund or deposit will be made to assure payment of such
Awards. No Participant, Beneficiary or other person will have any right, title
or interest in any fund or in any specific asset (including Ordinary Shares,
except as expressly provided) of the Company or any of its Affiliates by
reason of any Award hereunder. Neither the provisions of this Plan (or of any
related documents), nor the creation or adoption of this Plan, nor any action
taken pursuant to the provisions of this Plan will create, or be construed to
create, a trust of any kind or a fiduciary relationship between the Company or
any of its Affiliates and any Participant, Beneficiary or other person. To the
extent that a Participant, Beneficiary or other person

13

 

	 	 	 	acquires a right to receive payment pursuant to any Award hereunder, such right
will be no greater than the right of any unsecured general creditor of the Company.
	 
	 	7.1.4	 	Charter Documents. The Memorandum and Articles of Association of the
Company, as may lawfully be amended from time to time, may provide for additional
restrictions and limitations with respect to the Ordinary Shares (including additional
restrictions and limitations on the voting or transfer of Ordinary Shares) or
priorities, rights and preferences as to securities and interests prior in rights to
the Ordinary Shares. To the extent that these restrictions and limitations are greater
than those set forth in this Plan or any Award Agreement, such restrictions and
limitations shall apply to any Ordinary Shares acquired pursuant to the exercise of
Awards and are incorporated herein by this reference.

	 	7.2	 	No Transferability; Limited Exception to Transfer Restrictions.

	 	7.2.1	 	Limit On Exercise and Transfer. Unless otherwise expressly provided
in
(or pursuant to) this Section 7.2, by applicable law and by the Award
Agreement, as the same may be amended:

	 	(a)	 	all Awards are non-transferable and will not be subject in
any manner to sale, transfer, anticipation, alienation, assignment, pledge,
encumbrance or charge;
	 
	 	(b)	 	Awards will be exercised only by the Participant; and
	 
	 	(c)	 	amounts payable or shares issuable pursuant to an Award will
be delivered only to (or for the account of), and, in the case of Ordinary
Shares, registered in the name of, the Participant.

	 	 	 	In addition, the shares shall be subject to the restrictions set forth in the
applicable Award Agreement.
	 
	 	7.2.2	 	Further Exceptions to Limits On Transfer. The exercise and transfer
restrictions in Section 7.2.1 will not apply to:

	 	(a)	 	transfers to the Company;
	 
	 	(b)	 	transfers by gift to “immediate family” as that term is
defined in SEC Rule 16a-1(e) promulgated under the Exchange Act;
	 
	 	(c)	 	the designation of a Beneficiary to receive benefits if the
Participant dies or, if the Participant has died, transfers to or exercises
by the Participant’s Beneficiary, or, in the absence of a validly designated
Beneficiary, transfers by will or the laws of descent and distribution; or

14

 

	 	(d)	 	if the Participant has suffered a disability, permitted transfers or
exercises on behalf of the Participant by the Participant’s duly
authorized legal representative.

	 	 	 	Notwithstanding anything else in this Section 7.2.2 to the contrary, but subject
to compliance with all applicable laws, Incentive Stock Options and Restricted
Share Awards will be subject to any and all transfer restrictions under the Code
applicable to such awards or necessary to maintain the intended tax consequences
of such Awards. Notwithstanding clause (b) above but subject to compliance with
all applicable laws, any contemplated transfer by gift to “immediate family” as
referenced in clause (b) above is subject to the condition precedent that the
transfer be approved by the Administrator in order for it to be effective.

	 	7.3	 	Adjustments; Changes in Control.

	 	7.3.1	 	Adjustments. Upon or in contemplation of any reclassification,
recapitalization, share split (including a share split in the form of a share
dividend) or reverse share split (“share split”); any merger, amalgamation,
combination, consolidation or other reorganization; any split-up, spin-off, or similar
extraordinary dividend distribution in respect of the Ordinary Shares (whether in the
form of securities or property); any exchange of Ordinary Shares or other securities
of the Company, or any similar, unusual or extraordinary corporate transaction in
respect of the Ordinary Shares; or a sale of substantially all the assets of the
Company as an entirety; then the Administrator shall, in such manner, to such extent
(if any) and at such time as it deems appropriate and equitable in the circumstances:

	 	(a)	 	proportionately adjust any or all of (1) the number of
Ordinary Shares or the number and type of other securities that thereafter
may be made the subject of Awards (including the specific share limits,
maxima and numbers of shares set forth elsewhere in this Plan), (2) the
number, amount and type of Ordinary Shares (or other securities or property)
subject to any or all outstanding Awards, (3) the grant, purchase, or
exercise price of any or all outstanding Awards, or (4) the securities, cash
or other property deliverable upon exercise or vesting of any outstanding
Awards, or
	 
	 	(b)	 	make provision for a settlement by a cash payment or for the
assumption, substitution or exchange of any or all outstanding Awards (or the
cash, securities or other property deliverable to the holder(s) of any or all
outstanding Awards) based upon the distribution or consideration payable to
holders of the Ordinary Shares upon or in respect of such event.

	 	 	 	The Administrator may adopt such valuation methodologies for outstanding Awards as
it deems reasonable in the event of a cash,

15

 

	 	 	 	securities or other property settlement. In the case of Options, but without limitation on
other methodologies, the Administrator may base such settlement solely upon the excess (if
any) of the amount payable upon or in respect of such event over the exercise price of the
Option to the extent of the then vested and exercisable shares subject to the Option.
	 
	 	 	 	The Administrator may make adjustments to and/or accelerate the exercisability of Options
in a manner that disqualifies the Options as Incentive Stock Options without the written
consent of the Option holders affected thereby.
	 
	 	 	 	In any of such events, the Administrator may take such action prior to such event to the
extent that the Administrator deems the action necessary to permit the Participant to
realize the benefits intended to be conveyed with respect to the underlying shares in the
same manner as is or will be available to shareholders generally.
	 
	 	 	 	Any adjustment by the Administrator pursuant to this Section 7.3.1 shall be final,
binding, and conclusive. Unless otherwise expressly provided by the Administrator, in no
event shall a conversion of one or more outstanding shares of the Company’s preferred
shares (if any) or any new issuance of securities by the Company for consideration be
deemed, in and of itself, to require an adjustment pursuant to this Section 7.3.1.
	 
	 	 	 	In the case of any event described in the first paragraph of this Section 7.3.1, if no
action is formally taken by the Administrator in the circumstances with respect to
then-outstanding Awards, the proportionate adjustments contemplated by clause (a) above
shall nevertheless be deemed to have been made with respect to the Awards outstanding at
the time of such event in order to preserve the intended level of incentives.
	 
	 	7.3.2	 	Consequences of a Change in Control Event. Subject to Sections 7.3.4 through 7.3.6,
upon (or, as may be necessary to effectuate the purposes of this acceleration, immediately
prior to) the occurrence of a Change in Control Event:

	 	(a)	 	each Option will become immediately vested and exercisable, and must be
exercised within 15 days, and
	 
	 	(b)	 	Restricted Shares will immediately vest free of forfeiture restrictions
and/or restrictions giving the Company the right to repurchase the shares at their
original purchase price;

	 	 	 	provided, however, that such acceleration provision shall not apply, unless
otherwise expressly provided by the Administrator, with respect to any Award to the extent
that the Administrator has made a provision for the substitution, assumption, exchange or
other continuation or settlement of the Award, or the Award would otherwise continue in
accordance with its terms, in the circumstances.

16

 

	 	 	 	The foregoing Change in Control Event provisions shall not in any way limit the authority
of the Administrator to accelerate the vesting of one or more Awards in such
circumstances (including, but not limited to, a Change in Control Event) as the
Administrator may determine to be appropriate, regardless of whether accelerated vesting
of all or a portion of the Award(s) is otherwise required or contemplated by the
foregoing in the circumstances.

	 	7.3.3	 	Early Termination of Awards. Any Award, the vesting of which has been accelerated to
the extent required in the circumstances as contemplated by Section 7.3.2 (or would have been
so accelerated but for Section 7.3.4 or 7.3.6), shall terminate upon the related Change in
Control Event, subject to any provision that has been expressly made by the Administrator,
through a plan of reorganization or otherwise, for the survival, substitution, assumption,
exchange or other continuation or settlement of such Award and provided that, in the case of
Options that will not survive or be substituted for, assumed, exchanged, or otherwise
continued or settled in the Change in Control Event, the holder of such Award shall be given
reasonable advance notice of the impending termination and a reasonable opportunity to
exercise his or her outstanding Options in accordance with their terms before the termination
of such Awards (except that in no case shall more than ten days’ notice of accelerated vesting
and the impending termination be required and any acceleration may be made contingent upon the
actual occurrence of the event). For purposes of this Section 7.3, an Award shall be deemed to
have been “assumed” if (without limiting other circumstances in which an Award is assumed) the
Award continues after the Change in Control Event, and/or is assumed and continued by a Parent
(as such term is defined in the definition of Change in Control Event) following a Change in
Control Event, and confers the right to purchase or receive, as applicable and subject to
vesting and the other terms and conditions of the Award, for each Ordinary Share subject to
the Award immediately prior to the Change in Control Event, the consideration (whether cash,
shares, or other securities or property) received in the Change in Control Event by the
shareholders of Company for each Ordinary Share sold or exchanged in such transaction (or the
consideration received by a majority of the shareholders participating in such transaction if
the shareholders were offered a choice of consideration); provided, however, that if the
consideration offered for a Ordinary Share in the transaction is not solely the ordinary or
common shares of a successor Company or a Parent, the Board may provide for the consideration
to be received upon exercise or payment of the Award, for each share subject to the Award, to
be solely ordinary or common shares (as applicable) of the successor Company or a Parent equal
in Fair Market Value to the per share consideration received by the shareholders participating
in the Change in Control Event.

	 	7.3.4	 	Other Acceleration Rules. Any acceleration of Awards pursuant to this Section 7.3
shall comply with applicable legal requirements and, if

17

 

	 	 	 	necessary to accomplish the purposes of the acceleration or if the circumstances require,
may be deemed by the Administrator to occur a limited period of time not greater than 30
days before the event that triggered such acceleration. Without limiting the generality of
the foregoing, the Administrator may deem an acceleration to occur immediately prior to the
applicable event and/or reinstate the original terms of an Award if an event giving rise to
an acceleration does not occur. The Administrator may override the provisions of this
Section 7.3 as to any Award by express provision in the applicable Award Agreement and may
accord any Participant a right to refuse any acceleration, whether pursuant to the Award
Agreement or otherwise, in such circumstances as the Administrator may approve. The portion
of any Incentive Stock Option accelerated in connection with a Change in Control Event or
any other action permitted hereunder shall remain exercisable as an Incentive Stock Option
only to the extent the applicable $100,000 limitation on Incentive Stock Options is not
exceeded. To the extent exceeded, the accelerated portion of the Option shall be
exercisable as a Nonqualified Option.
	 
	 	7.3.5	 	Possible Rescission of Acceleration. If the vesting of an Award has been accelerated
expressly in anticipation of an event or upon shareholder approval of an event and the
Administrator later determines that the event will not occur, the Administrator may rescind
the effect of the acceleration as to any then outstanding and unexercised or otherwise
unvested Awards.
	 
	 	7.3.6	 	Golden Parachute Limitation. Notwithstanding anything else contained in this
Section 7.3 to the contrary, in no event shall an Award be accelerated under this Section 7.3
to an extent or in a manner which would not be fully deductible by the Company or one of its
Affiliates for federal income tax purposes because of Section 280G of the Code, nor shall any
payment hereunder be accelerated to the extent any portion of such accelerated payment would
not be deductible by the Company or one of its Affiliates because of Section 280G of the
Code. If a holder of an Award would be entitled to benefits or payments hereunder and under
any other plan or program that would constitute “parachute payments” as defined in Section
280G of the Code, then the holder may by written notice to the Company designate the order in
which such parachute payments will be reduced or modified so that the Company or one of its
Affiliates is not denied federal income tax deductions for any “parachute payments” because
of Section 280G of the Code. Notwithstanding the foregoing, if a Participant is a party to an
employment or other agreement with the Company or one of its Affiliates, or is a participant
in a severance program sponsored by the Company or one of its Affiliates that contains
express provisions regarding Section 280G and/or Section 4999 of the Code (or any similar
successor provision), the Section 280G and/or Section 4999 provisions of such employment or
other agreement or plan, as applicable, shall control as to any Awards held by that
Participant (for example, and without limitation, a Participant may be a party to an
employment agreement with

18

 

	 	 	 	the Company or one of its Affiliates that provides for a “gross-up” as opposed to a
“cut-back” in the event that the Section 280G thresholds are reached or exceeded in
connection with a change in control and, in such event, the Section 280G and/or
Section 4999 provisions of such employment agreement shall control as to any Awards
held by that Participant).

	 	7.4	 	Termination of Employment or Services.

	 	7.4.1	 	Events Not Deemed a Termination of Employment. Unless the
Administrator otherwise expressly provides with respect to a particular Award, if a
Participant’s employment by or service to the Company or an Affiliate terminates but
immediately thereafter the Participant continues in the employ of or service to
another Affiliate or the Company, as applicable, the Participant shall be deemed to
have not had a termination of employment or service for purposes of this Plan and the
Participant’s Awards. Unless the express policy of the Company or the Administrator
otherwise provides, a Participant’s employment relationship with the Company or any of
its Affiliates shall not be considered terminated solely due to any sick leave,
military leave, or any other leave of absence authorized by the Company or any
Affiliate or the Administrator; provided that, unless reemployment upon the
expiration of such leave is guaranteed by contract or law, such leave is for a period
of not more than 90 days. In the case of any Participant on an approved leave of
absence, continued vesting of the Award while on leave from the employ of or service
with the Company or any of its Affiliates will be suspended until the Participant
returns to service, unless the Administrator otherwise provides or applicable law
otherwise requires. In no event shall an Award be exercised after the expiration of
the term of the Award set forth in the Award Agreement.
	 
	 	7.4.2	 	Effect of Change of Affiliate Status. For purposes of this Plan and
any Award, if an entity ceases to be an Affiliate, a termination of employment or
service will be deemed to have occurred with respect to each Eligible Person in
respect of such Affiliate who does not continue as an Eligible Person in respect of
another Affiliate that continues as such after giving effect to the transaction or
other event giving rise to the change in status.
	 
	 	7.4.3	 	Administrator Discretion. Notwithstanding the provisions of Section
5.7 or 6.8, in the event of, or in anticipation of, a termination of employment or
service with the Company or any of its Affiliates for any reason, the Administrator
may accelerate the vesting and exercisability of all or a portion of the Participant’s
Award, and/or, subject to the provisions of Sections 5.4.2 and 7.3, extend the
exercisability period of the Participant’s Option upon such terms as the Administrator
determines and expressly sets forth in or by amendment to the Award Agreement.

19

 

	 	7.4.4	 	Termination of Consulting or Affiliate Services. If the Participant
is an Eligible Person solely by reason of clause (c) of Section 3, the
Administrator shall be the sole judge of whether the Participant continues to
render services to the Company or any of its Affiliates, unless a written contract
or the Award Agreement otherwise provides. If, in these circumstances, the Company
or any Affiliate notifies the Participant in writing that a termination of the
Participant’s services to the Company or any Affiliate has occurred for purposes of
this Plan, then (unless the contract or the Award Agreement otherwise expressly
provides), the Participant’s termination of services with the Company or Affiliate
for purposes of this Plan shall be the date which is 10 days after the mailing of
the notice by the Company or Affiliate or, in the case of a termination for Cause,
the date of the mailing of the notice.

	 	7.5	 	Compliance with Laws.

	 	7.5.1	 	General. This Plan, the granting and vesting of Awards under this
Plan, and the offer, issuance and delivery of Ordinary Shares, the acceptance of
promissory notes and/or the payment of money under this Plan or under Awards are
subject to compliance with all applicable federal and state laws, rules and
regulations (including but not limited to state and federal securities laws, and
federal margin requirements) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be
necessary or advisable in connection therewith. The person acquiring any securities
under this Plan will, if requested by the Company, provide such assurances and
representations to the Company as the Administrator may deem necessary or desirable
to assure compliance with all applicable legal and accounting requirements.
	 
	 	7.5.2	 	Compliance with Securities Laws. No Participant shall sell, pledge
or otherwise transfer Ordinary Shares acquired pursuant to an Award or any interest
in such shares except in accordance with the express terms of this Plan and the
applicable Award Agreement. Any attempted transfer in violation of this Section 7.5
shall be void and of no effect. Without in any way limiting the provisions set forth
above, no Participant shall make any disposition of all or any portion of Ordinary
Shares acquired or to be acquired pursuant to an Award, except in compliance with all
applicable federal and state securities laws and unless and until:

	 	(a)	 	there is then in effect a registration statement under the
Securities Act covering such proposed disposition and such disposition is
made in accordance with such registration statement;
	 
	 	(b)	 	such disposition is made in accordance with Rule 144 under
the Securities Act; or
	 
	 	(c)	 	such Participant notifies the Company of the proposed
disposition and furnishes the Company with a statement of the circumstances

20

 

	 	 	 	surrounding the proposed disposition, and, if requested by the Company,
furnishes to the Company an opinion of counsel acceptable to the Company’s
counsel, that such disposition will not require registration under the
Securities Act and will be in compliance with all applicable state securities
laws.

	 	 	 	Notwithstanding anything else herein to the contrary, neither the Company or any
Affiliate has any obligation to register the Ordinary Shares or file any registration
statement under either federal or state securities laws, nor does the Company or any
Affiliate make any representation concerning the likelihood of a public offering of the
Ordinary Shares or any other securities of the Company or any Affiliate.
	 
	 	7.5.3	 	Share Legends. All certificates evidencing Ordinary Shares issued or
delivered under this Plan shall bear the following legends and/or any other
appropriate or required legends under applicable laws:
	 
	 	 	 	“OWNERSHIP OF THIS CERTIFICATE, THE SHARES EVIDENCED BY THIS CERTIFICATE AND ANY INTEREST
THEREIN ARE SUBJECT TO SUBSTANTIAL RESTRICTIONS ON TRANSFER UNDER APPLICABLE LAW AND
UNDER AGREEMENTS WITH THE COMPANY, INCLUDING RESTRICTIONS ON SALE, ASSIGNMENT, TRANSFER,
PLEDGE OR OTHER DISPOSITION.”
	 
	 	 	 	“THE SHARES ARE SUBJECT TO THE COMPANY’S RIGHT OF FIRST REFUSAL AND CALL RIGHTS TO
REPURCHASE THE SHARES UNDER THE COMPANY’S SHARE INCENTIVE PLAN AND AGREEMENTS WITH THE
COMPANY THEREUNDER, COPIES OF WHICH ARE AVAILABLE FOR REVIEW AT THE OFFICE OF THE
SECRETARY OF THE COMPANY.”
	 
	 	 	 	“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (“ACT”), NOR HAVE THEY BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES LAWS OF ANY STATE. NO TRANSFER OF SUCH SECURITIES WILL BE PERMITTED
UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER, THE
TRANSFER IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR IN THE OPINION OF COUNSEL
TO THE COMPANY, REGISTRATION UNDER THE ACT IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO
COMPLY WITH THE ACT AND WITH APPLICABLE STATE SECURITIES LAWS.”
	 
	 	7.5.4	 	Confidential Information. Any financial or other information relating to
the Company obtained by Participants in connection with or as a result of
this Plan or their Awards shall be treated as confidential.

21

 

	 	7.6	 	Tax Withholding.

	 	7.6.1	 	Tax Withholding. Upon any exercise, vesting, or payment of any
Award
or upon the disposition of Ordinary Shares acquired pursuant to the
exercise of an Incentive Stock Option prior to satisfaction of the holding
period requirements of Section 422 of the Code, the Company or any of its
Affiliates shall have the right at its option to:

	 	(a)	 	require the Participant (or the Participant’s Personal
Representative or Beneficiary, as the case may be) to pay or provide for
payment of at least the minimum amount of any taxes which the Company or
Affiliate may be required to withhold with respect to such Award event or
payment;
	 
	 	(b)	 	deduct from any amount otherwise payable (in respect of an
Award or otherwise) in cash to the Participant (or the Participant’s Personal
Representative or Beneficiary, as the case may be) the minimum amount of any
taxes which the Company or Affiliate may be required to withhold with respect
to such Award event or payment; or
	 
	 	(c)	 	reduce the number of Ordinary Shares to be delivered by (or
otherwise reacquire shares held by the Participant at least 6 months) the
appropriate number of Ordinary Shares, valued at their then Fair Market Value,
to satisfy the minimum withholding obligation.

	 	 	 	In any case where a tax is required to be withheld in connection with the delivery
of Ordinary Shares under this Plan, the Administrator may in its sole discretion
(subject to Section 7.5) grant (either at the time of the Award or thereafter) to
the Participant the right to elect, pursuant to such rules and subject to such
conditions as the Administrator may establish, to have the Company reduce the
number of shares to be delivered by (or otherwise reacquire) the appropriate
number of shares, valued in a consistent manner at their Fair Market Value or at
the sales price in accordance with authorized procedures for cashless exercises,
necessary to satisfy the minimum applicable withholding obligation on exercise,
vesting or payment. In no event shall the shares withheld exceed the minimum whole
number of shares required for tax withholding under applicable law. The Company
may, with the Administrator’s approval, accept one or more promissory notes from
any Eligible Person in connection with taxes required to be withheld upon the
exercise, vesting or payment of any award under this Plan; provided that any such
note shall be subject to terms and conditions established by the Administrator and
the requirements of applicable law.
	 
	 	7.6.2	 	Tax Loans. If so provided in the Award Agreement or otherwise
authorized by the Administrator, the Company may, to the extent
permitted by law, authorize a loan to an Eligible Person in the amount of

22

 

	 	 	 	any taxes that the Company or any of its Affiliates may be required to withhold
with respect to Ordinary Shares received (or disposed of, as the case may be)
pursuant to a transaction described in Section 7.6.1. Such a loan will be for a
term and at a rate of interest and pursuant to such other terms and conditions as
the Company may establish, subject to compliance with applicable law. Such a loan
need not otherwise comply with the provisions of Section 5.3.3.

	 	7.7	 	Plan and Award Amendments, Termination and Suspension.

	 	7.7.1	 	Board Authorization. The Board may, at any time, terminate or, from
time to time, amend, modify or suspend this Plan, in whole or in part. No Awards may
be granted during any period that the Board suspends this Plan.
	 
	 	7.7.2	 	Shareholder Approval. To the extent then required by applicable law
or any applicable listing agency or required under Sections 162, 422 or 424 of the
Code to preserve the intended tax consequences of this Plan, or deemed necessary or
advisable by the Board, any amendment to this Plan shall be subject to shareholder
approval.
	 
	 	7.7.3	 	Amendments to Awards. Without limiting any other express authority
of the Administrator under (but subject to) the express limits of this Plan, the
Administrator by agreement or resolution may waive conditions of or limitations on
Awards to Participants that the Administrator in the prior exercise of its discretion
has imposed, without the consent of a Participant, and (subject to the requirements of
Sections 2.2 and 7.7.4) may make other changes to the terms and conditions of Awards.
	 
	 	7.7.4	 	Limitations on Amendments to Plan and Awards. No amendment,
suspension or termination of this Plan or change of or affecting any outstanding
Award shall, without written consent of the Participant, affect in any manner
materially adverse to the Participant any rights or benefits of the Participant or
obligations of the Company under any Award granted under this Plan prior to the
effective date of such change. Changes, settlements and other actions contemplated by
Section 7.3 shall not be deemed to constitute changes or amendments for purposes of
this Section 7.7.

	 	7.8	 	Privileges of Share Ownership. Except as otherwise expressly authorized by the Administrator
or this Plan or in the Award Agreement, a Participant will not be entitled to any privilege
of share ownership as to any Ordinary Shares not actually delivered to and held of record by
the Participant. No adjustment will be made for dividends or other rights as a shareholder
for which a record date is prior to such date of delivery.
	 
	 	7.9	 	Share-Based Awards in Substitution for Awards Granted by Other Company.
Awards may be granted to Eligible Persons in substitution for or in connection

23

 

	 	 	 	with an assumption of employee share options, share appreciation rights, restricted shares
or other share-based awards granted by other entities to persons who are or who will
become Eligible Persons in respect of the Company or one of its Affiliates, in connection
with a distribution, merger, amalgamation or other reorganization by or with the granting
entity or an affiliated entity, or the acquisition by the Company or one of its
Affiliates, directly or indirectly, of all or a substantial part of the shares or assets
of the employing entity. The Awards so granted need not comply with other specific terms
of this Plan, provided the Awards reflect only adjustments giving effect to the assumption
or substitution consistent with the conversion applicable to the Ordinary Shares in the
transaction and any change in the issuer of the security. Any shares that are delivered
and any Awards that are granted by, or become obligations of, the Company, as a result of
the assumption by the Company of, or in substitution for, outstanding awards previously
granted by an acquired company (or previously granted by a predecessor employer (or direct
or indirect parent thereof) in the case of persons that become employed by the Company or
one of its Affiliates in connection with a business or asset acquisition or similar
transaction) shall not be counted against the Share Limit or other limits on the number of
shares available for issuance under this Plan.
	 
	 	7.10	 	Effective Date of the Plan. This Plan is effective upon the Effective Date, subject to
approval by the shareholders of the Company within twelve months after the date the Board
approves this Plan.
	 
	 	7.11	 	Term of the Plan. Unless earlier terminated by the Board, this Plan will terminate at the
close of business on the day before the 10th anniversary of the Effective Date.
After the termination of this Plan either upon such stated expiration date or its earlier
termination by the Board, no additional Awards may be granted under this Plan, but previously
granted Awards (and the authority of the Administrator with respect thereto, including the
authority to amend such Awards) shall remain outstanding in accordance with their applicable
terms and conditions and the terms and conditions of this Plan.
	 
	 	7.12	 	Governing Law/Severability.

	 	7.12.1	 	Choice of Law. This Plan, the Awards, all documents evidencing Awards and
all other related documents will be governed by, and construed in accordance with,
the laws of the Cayman Islands.
	 
	 	7.12.2	 	Severability. If it is determined that any provision of this Plan or an
Award Agreement is invalid and unenforceable, the remaining provisions of this Plan
and/or the Award Agreement, as applicable, will continue in effect provided that the
essential economic terms of this Plan and the Award can still be enforced.

	 	7.13	 	Captions. Captions and headings are given to the sections and subsections of this
Plan solely as a convenience to facilitate reference. Such headings will not be

24

 

	 	 	 	deemed in any way material or relevant to the construction or interpretation of this
Plan or any provision thereof.
	 
	 	7.14	 	Non-Exclusivity of Plan. Nothing in this Plan will limit or be deemed to limit
the authority of the Board or the Administrator to grant awards or authorize any other
compensation, with or without reference to the Ordinary Shares, under any other plan
or authority.
	 
	 	7.15	 	No Restriction on Corporate Powers. The existence of this Plan, the Award
Agreements, and the Awards granted hereunder, shall not limit, affect or restrict in
any way the right or power of the Board or the shareholders of the Company to make or
authorize: (a) any adjustment, recapitalization, reorganization or other change in the
Company’s or any Affiliate’s capital structure or its business; (b) any merger,
amalgamation, consolidation or change in the ownership of the Company or any
Affiliate; (c) any issue of bonds, debentures, capital, preferred or prior preference
shares ahead of or affecting the Company’s authorized shares or the rights thereof;
(d) any dissolution or liquidation of the Company or any Affiliate; (e) any sale or
transfer of all or any part of the Company or any Affiliate’s assets or business; or
(f) any other corporate act or proceeding by the Company or any Affiliate. No
Participant, Beneficiary or any other person shall have any claim under any Award or
Award Agreement against any member of the Board or the Administrator, or the Company
or any employees, officers or agents of the Company or any Affiliate, as a result of
any such action.
	 
	 	7.16	 	Other Company Compensation or Benefit Programs. Payments and other benefits
received by a Participant under an Award made pursuant to this Plan shall not be
deemed a part of a Participant’s compensation for purposes of the determination of
benefits under any other employee welfare or benefit plans or arrangements, if any,
provided by the Company or any Affiliate, except where the Administrator or the Board
expressly otherwise provides or authorizes in writing. Awards under this Plan may be
made in addition to, in combination with, as alternatives to or in payment of grants,
awards or commitments under any other plans or arrangements of the Company or any
Affiliate.
	 
	 	7.17	 	Other Languages. This Plan or an Award Agreement or any other document
hereunder may be available in the Chinese language or other languages. In the event of
any inconsistency between the English version of this Plan or an Award Agreement or
any other document hereunder, and the non-English version, the English version shall
prevail.

	8.	 	DEFINITIONS.

	 	 	“Administrator” has the meaning given to such term in Section 2.1.

	 	 	“Affiliate” means (a) any entity (other than the Company) in an unbroken chain of entities
ending with the Company if, at the time of the determination, each of the entities other
than the Company owns shares possessing fifty percent (50%) or more of the total combined
voting power of all classes of shares in one of the other entities in such chain,

25

 

	 	 	or (b) any entity (other than the Company) in an unbroken chain of entities beginning with
the Company if, at the time of the determination, each of the entities other than the last entity
in the unbroken chain owns shares possessing fifty percent (50%) or more of the total combined
voting power of all classes of shares in one of the other entities in
such chain.

	 	 	“Award” means an award of any Option or Share Award, or any combination thereof, whether
alternative or cumulative, authorized by and granted under this Plan.

	 	 	“Award Agreement” means any writing, approved by the Administrator, setting forth the terms of an
Award that has been duly authorized and approved. An Award Agreement shall be deemed an Ordinary
Shares purchase agreement under the Company’s Memorandum and Articles of Association.

	 	 	“Award Date” means the date upon which the Administrator took the action granting an Award or such
later date as the Administrator designates as the Award Date at the time of the grant of the
Award.

	 	 	“Beneficiary” means the person, persons, trust or trusts designated by a Participant, or, in the
absence of a designation, entitled by will or the laws of descent and distribution, to receive the
benefits specified in the Award Agreement and under this Plan if the Participant dies, and means
the Participant’s executor or administrator if no other Beneficiary is designated and able to act
under the circumstances.

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

	 	 	“Cause” with respect to a Participant means (unless otherwise expressly provided in the applicable
Award Agreement, or another applicable contract with the Participant that defines such term for
purposes of determining the effect that a “for cause” termination has on the Participant’s options
and/or share awards) a termination of employment or service based upon a finding by the Company or
any of its Affiliates, acting in good faith and based on its reasonable belief at the time, that
the Participant:

	 	(a)	 	has been negligent in the discharge of his or her duties to the Company or any Affiliate,
has refused to perform stated or assigned duties or is incompetent in or (other than by
reason of a disability or analogous condition) incapable of performing those duties;
	 
	 	(b)	 	has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a
breach of confidentiality, an unauthorized disclosure or use of inside information, customer
lists, trade secrets or other confidential information;
	 
	 	(c)	 	has breached a fiduciary duty, or willfully and materially violated any other duty, law,
rule, regulation or policy of the Company or any of its Affiliates; or has been convicted of,
or plead guilty or nolo contendere to, a felony or misdemeanor (other than minor traffic
violations or similar offenses);
	 
	 	(d)	 	has materially breached any of the provisions of any agreement with the Company or any of
its Affiliates;

26

 

	 	(e)	 	has engaged in unfair competition with, or otherwise acted intentionally in a manner
injurious to the reputation, business or assets of, the Company or any of its Affiliates;
or
	 
	 	(f)	 	has improperly induced a vendor or customer to break or terminate any contract with the
Company or any of its Affiliates or induced a principal for whom the Company or any Affiliate
acts as agent to terminate such agency relationship.

	 	 	A termination for Cause shall be deemed to occur (subject to reinstatement upon a contrary final
determination by the Administrator) on the date on which the Company or any Affiliate first
delivers written notice to the Participant of a finding of termination for Cause.

	 	 	“Change in Control Event” means any of the following:

	 	(a)	 	Approval by shareholders of the Company (or, if no shareholder approval is required, by the
Board alone) of the complete dissolution or liquidation of the Company, other than in the
context of a Business Combination that does not constitute a Change in Control Event under
paragraph (c) below;
	 
	 	(b)	 	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act (a “Person”)) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 50% or more of either (1) the then-outstanding
Ordinary Shares of the Company (the “Outstanding Company Ordinary Shares”) or (2) the combined
voting power of the then-outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this paragraph (b), the following acquisitions shall
not constitute a Change in Control Event; (A) any acquisition directly from the Company, (B)
any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any Affiliate or a successor, (D) any
acquisition by any entity pursuant to a Business Combination, (E) any acquisition by a Person
described in and satisfying the conditions of Rule 13d-1(b) promulgated under the Exchange
Act, or (F) any acquisition by a Person who is the beneficial owner (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the Outstanding Company
Ordinary Shares and/or the Outstanding Company Voting Securities on the Effective Date (or an
affiliate, heir, descendant, or related party of or to such Person);
	 
	 	(c)	 	Consummation of a reorganization, amalgamation, merger, statutory share exchange or
consolidation or similar corporate transaction involving the Company or any other entity a
majority of whose outstanding voting shares or voting power is beneficially owned directly or
indirectly by the Company (a “Subsidiary”), a sale or other disposition of all or
substantially all of the assets of the Company, or the acquisition of assets or shares of
another entity by the Company or any of its Subsidiaries (each, a “Business Combination”), in
each case unless, following such Business Combination, (1) all or substantially all of the
individuals and

27

 

	 	 	 	entities that were the beneficial owners of the Outstanding Company Ordinary Shares and the
Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding ordinary
 shares and the combined voting power of the then-outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the entity resulting
from such Business Combination (including, without limitation, an entity that, as a result
of such transaction, owns the Company or all or substantially all of the Company’s assets
directly or through one or more subsidiaries (a “Parent”)), and (2) no Person (excluding
any individual or entity described in clauses (C), (E) or (F) of paragraph (b) above)
beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act),
directly or indirectly, more than 50% of, respectively, the then-outstanding ordinary
 shares of the entity resulting from such Business Combination or the combined voting power
of the then-outstanding voting securities of such entity, except to the extent that the
ownership in excess of 50% existed prior to the Business Combination.

	 	 	“Code” means the Internal Revenue Code of 1986 of the United States, as amended from time to time.

	 	 	“Ordinary Shares” means the Company’s Ordinary Shares of US$0.0001 par value, and such other
securities or property as may become the subject of Awards, or become subject to Awards, pursuant
to an adjustment made under Section 7.3.1 of this Plan.

	 	 	“Company” means HiSoft Technology International Limited, an exempted company incorporated under
the laws of the Cayman Islands, and its successors.

	 	 	“Effective Date” means the date the Board approved this Plan.

	 	 	“Eligible Person” has the meaning given to such term in Section 3 of this Plan.

	 	 	“Exchange Act” means the Securities Exchange Act of 1934 of the United States, as amended from
time to time.

	 	 	“Fair Market Value,” for purposes of this Plan and unless otherwise determined or provided by the
Administrator in the circumstances, means as follows:

	 	(a)	 	If the Ordinary Shares are listed or admitted to trade on the New York Stock Exchange or
other national securities exchange or on a recognized securities exchange outside of the
United States, including without limitation, the Stock Exchange of Hong Kong Limited (the
“Exchange”), the Fair Market Value shall equal the closing price of a Ordinary Share as
reported on the composite tape for securities or equivalent system for reporting such closing
price on the Exchange for the date in question, or, if no sales of Ordinary Shares were made
on the Exchange on that date, the closing price of a Ordinary Share as reported on said
composite tape for the next preceding day on which sales of Ordinary Shares were made on the
Exchange. The Administrator may, however, provide with respect to one or more Awards that the
Fair Market Value shall equal the last closing price of a Ordinary Share as reported on the
composite tape for securities listed on the

28

 

	 	 	 	Exchange available on the date in question or the average of the high and low trading
prices of a Ordinary Share as reported on the composite tape for securities listed on the
Exchange for the date in question or the most recent trading day.
	 
	 	(b)	 	If the Ordinary Shares are not listed or admitted to trade on the a national securities
exchange, the Fair Market Value shall equal the last price of a Ordinary Share as furnished by
the National Association of Securities Dealers, Inc. (the “NASD”) through the NASDAQ National
Market Reporting System (the “National Market”) for the date in question, or, if no sales of
Ordinary Shares were reported by the NASD through the National Market on that date, the last
price of a Ordinary Share as furnished by the NASD through the National Market for the next
preceding day on which sales of Ordinary Shares were reported by the NASD. The Administrator
may, however, provide with respect to one or more Awards that the Fair Market Value shall
equal the last closing price of a Ordinary Share as furnished by the NASD through the National
Market available on the date in question or the average of the high and low trading prices of
a Ordinary Share as furnished by the NASD through the National Market for the date in question
or the most recent trading day.

	 	(c)	 	If the Ordinary Shares are not listed or admitted to trade on a national securities exchange
and is not reported on the National Market Reporting System, the Fair Market Value shall
equal the mean between the bid and asked price for a Ordinary Share on such date, as
furnished by the NASD or a similar organization.
	 
	 	(d)	 	If the Ordinary Shares are not listed or admitted to trade on a national securities
exchange, are not reported on the National Market Reporting System and if bid and asked
prices for the shares are not furnished by the NASD or a similar organization, the Fair
Market Value shall be the value as reasonably determined by the Administrator for purposes of
the Award in the circumstances.

	 	 	The Administrator also may adopt a different methodology for determining Fair Market Value with
respect to one or more Awards if a different methodology is necessary or advisable to secure any
intended favorable tax, legal or other treatment for the particular Award(s) (for example, and
without limitation, the Administrator may provide that Fair Market Value for purposes of one or
more Awards will be based on an average of closing prices (or the average of high and low daily
trading prices) for a specified period preceding the relevant date).

	 	 	Any determination as to Fair Market Value made pursuant to this Plan shall be determined without
regard to any restriction other than a restriction which, by its terms, will never lapse, and
shall be conclusive and binding on all persons with respect to Awards granted under this Plan.

	 	 	“Incentive Stock Option” means an Option that is designated and intended as an “incentive stock
option” within the meaning of Section 422 of the Code, the award of which contains such provisions
(including but not limited to the receipt of shareholder approval of this Plan, if the award is
made prior to such approval) and is made under such circumstances and to such persons as may be
necessary to comply with that section.

29

 

	 	 	“Nonqualified Option” means an Option that is not an “incentive stock option” within the meaning of
Section 422 of the Code and includes any Option designated or intended as a Nonqualified Option and
any Option designated or intended as an Incentive Stock Option that fails to meet the applicable
legal requirements thereof.

	 	 	“Option” means an option to purchase Ordinary Shares granted under Section 5 of this Plan. The
Administrator will designate any Option granted to an employee of the Company or an Affiliate as a
Nonqualified Option or an Incentive Stock Option “Participant” means an Eligible Person who has
been granted and holds an Award under this Plan.

	 	 	“Personal Representative” means the person or persons who, upon the disability or incompetence of
a Participant, has acquired on behalf of the Participant, by legal proceeding or otherwise, the
power to exercise the rights or receive benefits under this Plan by virtue of having become the
legal representative of the Participant.

	 	 	“Plan” means this HiSoft Technology International Limited Amended and Restated Share Incentive
Plan, as it may hereafter be amended from time to time.

	 	 	“Public Offering Date” means the date the Ordinary Shares are first registered under the Exchange
Act and listed or quoted on a recognized national securities exchange or in the NASDAQ National
Market Quotation System.

	 	 	“Qualified IPO” means a firm commitment public offering of Ordinary Shares in the United States
that has been registered under the United States Securities Act of 1933, as amended, with a
minimum market capitalization of US$350,000,000, regardless of the then current Series A
Conversion Price (or conversion ratio) (as defined in the Amended and Restated Articles of
Association of the Company), and with gross proceeds to the Company of at least US$50,000,000, or
in a similar public offering of Ordinary Shares in a jurisdiction and on a recognized securities
exchange outside of the United States, including without limitation, the Stock Exchange of Hong
Kong Limited, provided such public offering is equivalent to the aforementioned in terms of price,
offering proceeds and regulatory approval.

	 	 	“Restricted Shares” means Ordinary Shares awarded to a Participant under this Plan, subject to
payment of such consideration and such conditions on vesting (which may include, among others, the
passage of time, specified performance objectives or other factors) and such transfer and other
restrictions as are established in or pursuant to this Plan and the related Award Agreement, to
the extent such remain unvested and restricted under the terms of the applicable Award Agreement.

	 	 	“Restricted Share Award” means an award of Restricted Shares.

	 	 	“Securities Act” means the Securities Act of 1933 of the United States, as amended from time to
time.

	 	 	“Severance Date” with respect to a particular Participant means, unless otherwise provided in the
applicable Award Agreement:

30

 

	 	(a)	 	if the Participant is an Eligible Person under clause (a) of Section 3 and the Participant’s
employment by the Company or any of its Affiliates terminates (regardless of the reason), the
last day that the Participant is actually employed by the Company or such Affiliate (unless,
immediately following such termination of employment, the Participant is a member of the Board
or, by express written agreement with the Company or any of its Affiliates, continues to
provide other services to the Company or any Affiliate as an Eligible Person under clause (c)
of Section 3, in which case the Participant’s Severance Date shall not be the date of such
termination of employment but shall be determined in accordance with clause (b) or (c) below,
as applicable, in connection with the termination of the Participant’s other services);
	 
	 	(b)	 	if the Participant is not an Eligible Person under clause (a) of Section 3 but is an
Eligible Person under clause (b) thereof, and the Participant ceases to be a member of the
Board (regardless of the reason), the last day that the Participant is actually a member of
the Board (unless, immediately following such termination, the Participant is an employee of
the Company or any of its Affiliates or, by express written agreement with the Company or any
of its Affiliates, continues to provide other services to the Company or any Affiliate as an
Eligible Person under clause (c) of Section 3, in which case the Participant’s Severance Date
shall not be the date of such termination but shall be determined in accordance with clause
(a) above or (c) below, as applicable, in connection with the termination of the
Participant’s employment or other services);
	 
	 	(c)	 	if the Participant is not an Eligible Person under clause (a) or clause (b) of Section 3 but
is an Eligible Person under clause (c) thereof, and the Participant ceases to provide
services to the Company or any of its Affiliates as determined in accordance with Section
7.4.4 (regardless of the reason), the last day that the Participant actually provides
services to the Company or such Affiliate as an Eligible Person under clause (c) of Section 3
(unless, immediately following such termination, the Participant is an employee of the
Company or any of its Affiliates or is a member of the Board, in which case the Participant’s
Severance Date shall not be the date of such termination of services but shall be determined
in accordance with clause (a) or (b) above, as applicable, in connection with the termination
of the Participant’s employment or membership on the Board).

	 	 	“Share Award” means an award of Ordinary Shares under Section 6 of this Plan. A Share Award may be
a Restricted Share Award or an award of unrestricted Ordinary Shares.

	 	 	“Total Disability” means a “total and permanent disability” within the meaning of Section 22(e)(3)
of the Code and, with respect to Awards other than Incentive Stock Options, such other
disabilities, infirmities, afflictions, or conditions as the Administrator may include.

31exv10w2

Exhibit 10.2

HISOFT TECHNOLOGY INTERNATIONAL LIMITED

SHARE INCENTIVE PLAN

OPTION AGREEMENT

              
 THIS OPTION AGREEMENT (this “Option Agreement”) dated    
              
            
            by and between HiSoft Technology
International Limited, an exempted company incorporated under the laws of the Cayman Islands (the
“Company”), and             
         (the “Participant”) evidences the option (the “Option”) granted by the
Company to
the Participant as to the number of the Company’s Ordinary Shares, par value US$0.0001 per share,
first set forth below.

	 	 	 	 	 

	Number of Ordinary Shares:1

	 	       
             
             
            
	 	Award Date:      
             
             
         
	 
	 	 	 	 
	Exercise Price per Share:1

	 	  US$  
              
             
           
	 	Expiration Date:1,2                                    
	 
	 	 	 	 
	Type of Option (check one):

	 	Nonqualified Option
	 	       
   [        
            ]
	 
	 	 	 	 
	 

	 	Incentive Stock Option
	 	      
    [         
           ]

     Vesting1,2 The Option shall become vested as to 25% of the total number of
Ordinary Shares subject to the Option on the first anniversary of the Award Date. The remaining
75% of the total number of Ordinary Shares subject to the Option shall vest in 12 substantially
equal three-monthly installments, with the first installment vesting on the last day of the third
month following the month in which the first anniversary of the Award Date occurs and an
additional installment vesting on the last day of each of the 11 three-monthly periods thereafter.

          The Option is granted under the HiSoft Technology International Limited Share Incentive Plan
(the “Plan”) and subject to the Terms and Conditions of Option (the “Terms”) attached to this
Option Agreement (incorporated herein by this reference) and to the Plan. The Option has been
granted to the Participant in addition to, and not in lieu of, any other form of compensation
otherwise payable or to be paid to the Participant. Capitalized terms are defined in the Plan if
not defined herein. The parties agree to the terms of the Option set forth herein. The Participant
acknowledges receipt of a copy of the Terms and the Plan, specifically acknowledges and agrees to
Section 14 of the Terms, and agrees to maintain in confidence all information provided to him/her
in connection with the Option.

	 	 	 	 	 	 	 

	“PARTICIPANT”	 	 	 	HISOFT TECHNOLOGY
 INTERNATIONAL LIMITED
	 
	 
	 	 	 	 	 	 
	Signature	 	 	 	an exempted company incorporated under the laws of
the Cayman Islands
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name

	 	 	 	By:	 	 
	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address

	 	 	 	Print Name:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 
	 

	 	 	 	 	 	 
	City, State, Zip Code
	 	 	 	 	 	 

 

			
	1	 	Subject to adjustment under Section 7.3.1 of the Plan.
	 
	2	 	Subject to early termination under Section 5.7 or 7.3 of the Plan.

 

 

CONSENT OF SPOUSE

     In consideration of the Company’s execution of this Option Agreement, the undersigned spouse
of the Participant agrees to be bound by all of the terms and provisions hereof and of the Plan.

	 	 	 	 	 

	 
	 

	 	 	 	 
	Signature of Spouse

	 	Date
	 	 

2

 

TERMS AND CONDITIONS OF OPTION

1. Vesting; Limits on Exercise.

     The Option shall vest and become exercisable in percentage installments of the aggregate
number of shares subject to the Option as set forth on the cover page of this Option Agreement.
The Option may be exercised only to the extent the Option is vested and exercisable.

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and
exercisable, the Participant has the right to exercise the Option (to the extent not
previously exercised), and such right shall continue, until the expiration or earlier
termination of the Option.
	 
	 	•	 	No Fractional Shares. Fractional share interests shall be disregarded,
but may be accumulated.
	 
	 	•	 	Minimum Exercise. No fewer than 100 Ordinary Shares (subject to
adjustment under Section 7.3.1 of the Plan) may be purchased at any one time, unless
the number purchased is the total number at the time exercisable under the Option.
	 
	 	•	 	ISO Value Limit. If the Option is designated as an Incentive Stock
Option (an “ISO”), as indicated on the cover page of this Option Agreement, and if the
aggregate fair market value of the shares with respect to which ISOs (whether granted
under the Option or otherwise) first become exercisable by the Participant in any
calendar year exceeds US$100,000, as measured on the applicable Award Dates, the
limitations of Section 5.5.1 of the Plan shall apply and to such extent the Option will
be rendered a Nonqualified Option.

2. Continuance of Employment/Service Required; No Employment/Service Commitment.

     The vesting schedule requires continued employment or service through each applicable vesting
date as a condition to the vesting of the applicable installment of the Option and the rights and
benefits under this Option Agreement. Employment or service for only a portion of the vesting
period, even if a substantial portion, will not entitle the Participant to any proportionate
vesting or avoid or mitigate a termination of rights and benefits upon or following a termination
of employment or services as provided in Section 4 below or under the Plan.

     Nothing contained in this Option Agreement or the Plan constitutes a continued employment or
service commitment by the Company or any of its Affiliates, affects the Participant’s status, if
he or she is an employee, as an employee at will who is subject to termination without cause,
confers upon the Participant any right to remain employed by or in service to the Company or any
Affiliate, interferes in any way with the right of the Company or any Affiliate at any time to
terminate such employment or service, or affects the right of the Company or any Affiliate to
increase or decrease the Participant’s other compensation.

1

 

3. Method of Exercise of Option.

     The Option shall be exercisable by the delivery to the Secretary of the Company (or such
other person as the Administrator may require pursuant to such administrative exercise procedures
as the Administrator may implement from time to time) of:

	 	•	 	an executed Exercise and Ordinary Share Purchase Agreement (stating the number
of Ordinary Shares to be purchased pursuant to the Option) in substantially the form
attached hereto as Exhibit A or such other form as the Administrator may require from
time to time (the “Exercise Agreement”);
	 
	 	•	 	payment in full for the Exercise Price of the shares to be purchased, in cash
or by electronic funds transfer to the Company, or by certified or cashier’s check
payable to the order of the Company subject to such specific procedures or directions
as the Administrator may establish;
	 
	 	•	 	undated stock powers or instruments of transfer and such other documents as
the Administrator may require from time to time, duly executed by the Participant as
transferor of the shares to be purchased, to facilitate the exercise of the Call Right
(as defined in Section 8 below) and the Right of First Refusal (as defined in Section
9 below). By delivery of such undated stock power, instrument of transfer or other
documents to the Administrator, the Participant shall be deemed to authorize the
Administrator to date and complete such document and cause the transfer from the
Participant of the shares represented thereby pursuant to an exercise of the Call
Right or the Right of First Refusal;
	 
	 	•	 	any written statements or agreements required pursuant to Section 7.5.1 of the
Plan; and
	 
	 	•	 	satisfaction of the tax withholding provisions of Section 7.6.1 of the Plan.

The Administrator may, at its discretion and irrespective of any contrary request by the
Participant, hold the share certificates representing the shares purchased on exercise of the
Option in custody on behalf of the Participant.

The Administrator also may, but is not required to, authorize a non-cash payment alternative
specified below at or prior to the time of exercise. In which case, the Exercise Price and/or
applicable withholding taxes, to the extent so authorized, may be paid in full or in part by
delivery to the Company of:

	 	•	 	Ordinary Shares already owned by the Participant, valued at their Fair Market
Value on the exercise date, provided, however, that any shares
acquired directly from the Company (upon exercise of an option or otherwise) must have
been owned by the Participant for at least six (6) months before the date of such
exercise; and/or
	 
	 	•	 	if the Ordinary Shares are then registered under the Exchange Act and listed
or quoted on a recognized national securities exchange or in the NASDAQ National

2

 

	 	 	 	Market Quotation System, or on a recognized securities exchange outside of the United
States, including without limitation, the Stock Exchange of Hong Kong Limited,
irrevocable instructions to a broker to, upon exercise of the Option, promptly sell a
sufficient number of Ordinary Shares acquired upon exercise of the Option and deliver to
the Company the amount necessary to pay the Exercise Price (and, if applicable, the
amount of any related tax withholding obligations); and/or
	 
	 	•	 	a note meeting the requirements of Section 5.3.3 of the Plan (or, in the case
of tax
loans, Section 7.6.2 of the Plan).

An Option will qualify as an ISO only if it meets all of the applicable requirements of the Code.
If the Option is designated as an ISO, the Option may be rendered a Nonqualified Option if the
Administrator permits the use of one or more of the non-cash payment alternatives referenced
above.

4. Early Termination of Option.

     The Option, to the extent not previously exercised, and all other rights in respect thereof,
whether vested and exercisable or not, shall terminate and become null and void prior to the
Expiration Date in the event of:

	 	•	 	the termination of the Participant’s employment or services, as provided in
Section 5.7 of the Plan, or
	 
	 	•	 	the termination of the Option, pursuant to Section 7.3 of the Plan.

     Notwithstanding any post-termination exercise period provided for herein or in the Plan, an
Option will qualify as an ISO only if it is exercised within the applicable exercise periods for
ISOs under, and meets all of the other requirements of, the Code. If the Option is designated as
an ISO and is not exercised within the applicable exercise periods for ISOs or does not meet such
other requirements, the Option will be rendered a Nonqualified Option.

5. Non-Transferability and Other Restrictions.

     The Option and any other rights of the Participant under this Option Agreement or the Plan
are nontransferable and exercisable only by the Participant, except as set forth in Section 7.2 of
the Plan. Any Ordinary Shares issued on exercise of the Option shall be subject to the approval of
the Board, and are subject to other substantial restrictions, on transfer, and are subject to
call, rights of first refusal, and other rights in favor of the Company as set forth herein and in
the Exercise Agreement.

6. Securities Law Compliance.

     The Participant acknowledges that the Option and the Ordinary Shares are not being registered
under the Securities Act, based, in part, in reliance upon an exemption from registration under
Securities and Exchange Commission Rule 701 promulgated under the Securities Act, and a comparable
exemption from qualification under applicable state securities laws, as each may be amended from
time to time. The Participant, by executing this Option

3

 

Agreement, hereby makes the following representations to the Company and acknowledges that the
Company’s reliance on federal and state securities law exemptions from registration and
qualification is predicated, in substantial part, upon the accuracy of these representations:

	 	•	 	The Participant is acquiring the Option and, if and when he/she exercises the Option,
will acquire the Ordinary Shares solely for the Participant’s own account, for investment
purposes only, and not with a view to or an intent to sell, or to offer for resale in
connection with any unregistered distribution, all or any portion of the shares within the
meaning of the Securities Act and/or any applicable state securities laws.
	 
	 	•	 	The Participant has had an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the Option and the restrictions imposed on
any Ordinary Shares purchased upon exercise of the Option. The Participant has been
furnished with, and/or has access to, such information as he or she considers necessary or
appropriate for deciding whether to exercise the Option and purchase Ordinary Shares.
However, in evaluating the merits and risks of an investment in the Ordinary Shares, the
Participant has and will rely upon the advice of his/her own legal counsel, tax advisors,
and/or investment advisors.
	 
	 	•	 	The Participant is aware that the Option may be of no practical value, that any value
it may have depends on its vesting and exercisability as well as an increase in the Fair
Market Value of the underlying Ordinary Shares to an amount in excess of the Exercise
Price, and that any investment in ordinary shares of a closely held entity such as the
Company is non-marketable, non-transferable and could require capital to be invested for an
indefinite period of time, possibly without return, and at substantial risk of loss.
	 
	 	•	 	The Participant understands that any Ordinary Shares acquired on exercise of the Option
will be characterized as “restricted securities” under the federal securities laws, and
that, under such laws and applicable regulations, such securities may be resold without
registration under the Securities Act only in certain limited circumstances, including in
accordance with the conditions of Rule 144 promulgated under the Securities Act, as
presently in effect, with which the Participant is familiar.
	 
	 	•	 	The Participant has read and understands the restrictions and limitations set forth in
the Plan, this Option Agreement (including these Terms), and the Exercise Agreement, which
are imposed on the Option and any Ordinary Shares which may be acquired upon exercise of
the Option.
	 
	 	•	 	At no time was an oral representation made to the Participant relating to the Option
or the purchase of Ordinary Shares and the Participant was not presented with or solicited
by any promotional meeting or material relating to the Option or the Ordinary Shares.

7. Lock-Up Agreement.

     Neither the Participant (nor any permitted transferee) may, directly or indirectly, offer,
sell or transfer or dispose of any of the Ordinary Shares acquired upon exercise of the Option
(the “Shares”) or any interest therein (or agree to do any thereof) (collectively, a “Transfer”)

4

 

during the period commencing as of 14 days prior to and ending 180 days, or such lesser period of
time as the relevant underwriters may permit, after the effective date of a registration statement
covering any public offering of the Company’s securities of which the Participant has notice. (The
term “Participant” includes, where the context so requires, any permitted direct or indirect
transferee of the Participant.) The Participant shall agree and consent to the entry of stop
transfer instructions with the Company’s transfer agent against the Transfer of the Company’s
securities beneficially owned by the Participant and shall conform the limitations hereunder and
under the Exercise Agreement by agreement with and for the benefit of the relevant underwriters by
a lock-up agreement or other agreement in customary form. Notwithstanding anything else herein to
the contrary, this Section 7 shall not be construed so as to prohibit the Participant from
participating in a registration or a public offering of the Ordinary Shares with respect to any
shares which he or she may hold at that time, provided, however, that such participation shall be
at the sole discretion of the Board.

8. Limited Call Right; Mandatory Sale; Transfer Restrictions.

     8.1 Company’s Call Right. The Company shall have the right (but not the obligation), subject
to the terms and conditions of this Section 8, to repurchase in one or more transactions in
connection with the Participant’s termination of employment or services to the Company or any of
its Affiliates, and the Participant (or any permitted transferee) shall be obligated to sell any
of the Shares acquired upon exercise of the Option at the Repurchase Price (as defined below) (the
“Call Right”). To exercise the Call Right, the Company must give written notice thereof to the
Participant (the “Call Notice”). The Call Notice is irrevocable by the Company and must (a) be in
writing and signed by an authorized officer of the Company, (b) set forth the Company’s intent to
exercise the Call Right and contain the total number of Shares to be sold to the Company pursuant
to the Call Right, (c) be mailed or delivered in accordance with Section 11, and (d) be so mailed
or delivered during the Notice Period (determined in accordance with the following sentence). The
“Notice Period” shall:

	 	(a)	 	commence on the Participant’s Severance Date (determined in accordance with the
Plan); and
	 
	 	(b)	 	terminate on the date that is ninety (90) days after the Participant’s
Severance Date.

     8.2 Repurchase Price. The price per Share to be paid by the Company upon settlement of the
Company’s Call Right (the “Repurchase Price”) shall equal the Fair Market Value of a Share
determined as of the date of the Call Notice.

     8.3 Closing. The closing of any repurchase under this Section 8 shall be at a date to be
specified by the Company, such date to be no later than 30 days after the date of the Call Notice.
The purchase price shall be paid at the closing in the form of a check or by cancellation of money
purchase indebtedness against surrender by the Participant of a share certificate evidencing the
Shares with duly endorsed share powers. No adjustments (other than pursuant to Section 8.3.1 of
the Plan) shall be made to the purchase price for fluctuations in the fair market value of the
Ordinary Shares after the date of the Call Notice.

5

 

     8.4 Termination of Call Right. The Company’s Call Right shall terminate to the extent that it
is not exercised prior to the Public Offering Date.

     8.5 Assignment. Notwithstanding anything to the contrary, the Company may assign any or all
of its rights under this Section 8 to one or more shareholders of the Company.

9. Right of First Refusal.

     The Company shall have a right of first refusal, as set forth below, to purchase the Shares
acquired upon exercise of the Option before the Shares (or any interest in them) can be validly
transferred to any other person or entity.

     9.1 Notice of Intent to Sell. Before there can be a valid sale or transfer of any Shares
(or any interest in them) by any holder thereof, the holder shall first give notice in
writing to the
Company, mailed or delivered in accordance with the provisions of Section 11, of his or her
intention to sell or transfer such Shares (the “Option Notice”).

     The Option Notice shall specify the identity of the proposed transferee, the number of Shares
to be sold or transferred to the transferee, the price per Share and the terms upon which such
holder intends to make such sale or transfer. If the payment terms for the Shares described in the
Option Notice differ from delivery of cash or a check at closing, the Company shall have the
option, as set forth herein, of purchasing the Shares for cash (or a cash equivalent) at not less
than Fair Market Value. The determination of Fair Market Value shall be mailed or delivered to the
selling or transferring shareholder (the “Company’s Notice”) within ten (10) days of its receipt of
the Option Notice. Should the selling or transferring shareholder disagree with the Company’s
determination of such Fair Market Value, he or she shall have the right (the “Retraction Right”) to
retract the proposed sale or transfer to a third party and the offer of Shares to the Company
pursuant to the Option Notice (such retraction to be made in writing and mailed or delivered in
accordance with the provisions of Section 11). If the shareholder again proposes to sell or
transfer the Shares, the shareholder shall again offer such Shares to the Company pursuant to the
terms of this Section 9 prior to any sale or transfer.

     9.2 Option to Purchase. Subject to the selling shareholder’s Retraction Right, during the
60-day period commencing upon receipt of the Option Notice by the Company (the “Option Period”),
the Company shall have an option to purchase any or all of the Shares specified in the Option
Notice at the price offered therein (the “Right of First Refusal”).

     9.3 Purchase of Shares. Not more than thirty (30) days after receipt of the Option Notice,
the Company shall give written notice to the shareholder desiring to sell or transfer Shares of
the number of such Shares to be purchased (or, if no Shares are to be purchased, stating such
fact) by the Company pursuant to the terms of this Section 9 (the “Purchase Notice”). Purchases
pursuant to this Section 9 shall be consummated within thirty (30) days after delivery of the
Purchase Notice to the selling shareholder, but in no event later than the expiration of the
Option Period. The purchase price shall be paid at the closing in cash, by check, by cancellation
of money purchase indebtedness, or, if the payment terms set forth in the Option Notice differ
from payment in cash or by check at closing, in accordance with the payment terms set forth in the
Option Notice (or payment of the amount set forth in the Company’s Notice in cash, by

6

 

cancellation of money purchase indebtedness, or by check). The purchase price shall be paid
against surrender by the selling shareholder of a share certificate evidencing the number of
Shares specified in the Option Notice, with duly endorsed share powers.

     9.4 Ability to Sell Unpurchased Shares. Unless all of the Shares referred to in the Option
Notice are to be purchased as indicated in the Purchase Notice, the shareholder desiring to sell
or transfer may dispose of any Shares referred to in the Option Notice that are not to be
purchased by the Company to the person or persons specified in the Option Notice during a period
of twenty (20) days commencing upon his or her receipt of the Purchase Notice; provided,
however, that he or she shall not sell or transfer such Shares (a) at a lower price or on terms
more favorable to the Participant or transferee than those specified in the Option Notice, and (b)
to a person other than the person or persons specified in the Option Notice; and provided
further that such transfer is consistent with the other provisions and limitations of the
Plan, this Option Agreement (including these Terms), and the Exercise Agreement. If the transfer
is not consummated within such twenty (20) day period, the shareholder shall again offer such
Shares to the Company pursuant to the terms of this Section 9 prior to any sale or transfer to the
same or any other person.

     9.5 Assignment. Notwithstanding anything to the contrary, the Company may assign any or all
of its rights under this Section 9 to one or more shareholders of the Company.

     9.6 Termination of Right of First Refusal. The Company’s Right of First Refusal shall
terminate to the extent that it is not exercised prior to the Public Offering Date.

10. No Shareholder Rights Following Exercise of a Call or Repurchase.

     If the Participant (or any permitted transferee) holds Shares as to which the Call Right or
the Right of First Refusal has been exercised (in connection with the termination of the
Participant’s employment or otherwise), the Participant shall be entitled to the value of such
shares in accordance with the provisions of Section 8 or 9, as applicable, but (unless otherwise
required by law) shall no longer be entitled to participation in the Company or other rights as a
shareholder with respect to the shares subject to the call or repurchase. To the maximum extent
permitted by law, the Participant’s rights following the exercise of the Call Right or Right of
First Refusal shall, with respect to the call or repurchase and the Shares covered thereby, be
solely the rights that he or she has as a general creditor of the Company to receive payment of the
amount specified in Section 8 or 9, as applicable.

11. Notices.

     Any notice to be given under the terms of this Option Agreement or the Exercise Agreement
shall be in writing and addressed to the Company at its principal office to the attention of the
Secretary, and to the Participant at the address reflected or last reflected on the Company’s
payroll records. Any notice shall be delivered in person or shall be enclosed in a properly sealed
envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or
certification fee prepaid) in a post office or branch post office regularly maintained by the
United States Government. Any such notice shall be given only when received, but if the
Participant is no longer an Eligible Person, shall be deemed to have been duly

7

 

given five business days after the date mailed in accordance with the foregoing provisions of this
Section 11.

12. Plan.

     The Option and all rights of the Participant under this Option Agreement are subject to, and
the Participant agrees to be bound by, all of the terms and conditions of the Plan, incorporated
herein by this reference. In the event of a conflict or inconsistency between the terms and
conditions of this Option Agreement and of the Plan, the terms and conditions of the Plan shall
govern. The Participant agrees to be bound by the terms of the Plan and this Option Agreement
(including these Terms). The Participant acknowledges having read and understood the Plan, and
this Option Agreement. Unless otherwise expressly provided in other sections of this Option
Agreement, provisions of the Plan that confer discretionary authority on the Board or the
Administrator do not and shall not be deemed to create any rights in the Participant unless such
rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the
Administrator so conferred by appropriate action of the Board or the Administrator under the Plan
after the date hereof.

13. Entire Agreement.

     This Option Agreement (including these Terms and together with the form of Exercise Agreement
attached hereto) and the Plan together constitute the entire agreement and supersede all prior
understandings and agreements, written or oral, of the parties hereto with respect to the subject
matter hereof. The Plan, this Option Agreement and the Exercise Agreement may be amended pursuant
to Section 7.7 of the Plan. Such amendment must be in writing and signed by the Company. The
Company may, however, unilaterally waive any provision hereof or of the Exercise Agreement in
writing to the extent such waiver does not adversely affect the interests of the Participant
hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the
same provision or a waiver of any other provision hereof.

14. Satisfaction of All Rights to Equity.

     The Option is in complete satisfaction of any and all rights that the Participant may have
(under an employment, consulting, or other written or oral agreement with the Company or any of
its Affiliates, or otherwise) to receive (1) options or share awards with respect to the
securities of the Company or any of its Affiliates, and/or (2) any other equity or derivative
security in or with respect to the Company or any of its Affiliates. This Option Agreement
supersedes the terms of all prior understandings and agreements, written or oral, of the parties
with respect to such matters. The Participant shall have no further rights or benefits under any
prior agreement conveying any right with respect to any security or derivative security in or with
respect to the Company or any of its Affiliates. The foregoing notwithstanding, this Section 14
shall not adversely affect the Participant’s rights under any prior option or share award
agreement under the Plan (provided such agreement is expressly labeled as an option or share award
agreement under the Plan and is similar in form to this Option Agreement) which has been signed by
an authorized officer of the Company.

8

 

15. Governing Law; Limited Rights; Severability.

     15.1. Cayman Islands Law; Construction. This Option Agreement and the Exercise Agreement
shall be governed by and construed and enforced in accordance with the laws of the Cayman Islands
without regard to conflict of law principles thereunder. The terms of the Option grant have
resulted from the negotiations of the parties and each of the parties has had an opportunity to
obtain and consult with its own counsel. The language of all parts of the Plan, this Option
Agreement (including these Terms) and the Exercise Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against either of the parties.

     15.2. Limited Rights. The Participant has no rights as a shareholder of the Company with
respect to the Option as set forth in Section 7.8 of the Plan. The Option does not place any limit
on the corporate authority of the Company as set forth in Section 7.15 of the Plan.

     15.3. Arbitration.

     (a) Any dispute, controversy or claim arising out of or in connection with or relating to this
Option Agreement, or the interpretation, breach, termination or validity hereof, shall be resolved
through arbitration. A dispute may be submitted to arbitration upon the request of either party
with written notice to the other (the “Notice”). The arbitration shall be conducted in Hong Kong
under the auspices of the Hong Kong International Arbitration Centre (the “Centre”). There shall be
three (3) arbitrators. Each party shall nominate one (1) arbitrator within thirty (30) days after
the delivery of the Notice to the other party. The appointment of party nominated arbitrators shall
be confirmed by the Centre. Both arbitrators shall agree on the third arbitrator within thirty (30)
days of their confirmation by the Centre. Should either party fail to appoint an arbitrator or
should the two arbitrators fail within thirty (30) days to reach agreement on the third arbitrator,
such arbitrator shall be appointed by the Secretary General of the Centre.

     (b) The arbitration proceedings shall be conducted in English. The arbitration tribunal shall
apply the UNCITRAL Arbitration Rules as administered by the Centre at the time of the arbitration.
However, if such rules conflict with the provisions of this Section 15.3, including the provisions
concerning the appointment of an arbitrator(s), the provisions of this Section 15.3 shall prevail.

     (c) The arbitrators shall decide any dispute submitted by the parties strictly in accordance
with the substantive laws of the Cayman Islands and shall not apply any other substantive law.

     (d) Each party shall cooperate with the other in making full disclosure of and providing
complete access to all information and documents requested by the other in connection with such
arbitration proceedings, subject only to any confidentiality obligations binding on such party.

     (e) The costs of arbitration shall be borne by the losing party, unless otherwise determined
by the arbitration tribunal.

9

 

     (f) When any dispute occurs and when any dispute is under arbitration, except for the matters
in dispute, the parties shall continue to fulfill their respective obligations and shall be
entitled to exercise their rights under this Agreement.

     (g) The award of the arbitration tribunal shall be final and binding upon the parties, and
the prevailing party may apply to a court of competent jurisdiction for enforcement of such award.

     15.4. Severability. If the arbitrator selected in accordance with Section 15.3 or a court of
competent jurisdiction determines that any portion of this Option Agreement, the Plan, or the
Exercise Agreement is in violation of any statute or public policy, then only the portions of this
Option Agreement, the Plan, or the Exercise Agreement, as applicable, which violate such statute
or public policy shall be stricken, and all portions of this Option Agreement, the Plan, and the
Exercise Agreement which do not violate any statute or public policy shall continue in full force
and effect. Furthermore, it is the parties’ intent that any court order striking any portion of
this Option Agreement, the Plan, and/or the Exercise Agreement should modify the stricken terms as
narrowly as possible to give as much effect as possible to the intentions of the parties
hereunder.

     15.5. Shareholder Approval. Notwithstanding anything else contained herein to the contrary,
the Option and all rights of the Participant under this Option Agreement are subject to approval
of the Plan by the Company’s shareholders (such approval to be obtained in accordance with the
terms of the Plan, the Company’s Memorandum and Articles of Association, and applicable law)
within 12 months after the Effective Date of the Plan.

     15.6. Local Law; Foreign Exchange and Tax Compliance. Notwithstanding anything else contained
herein to the contrary, due to certain foreign exchange regulations in the People’s Republic of
China (“PRC”), the Administrator may, at its discretion, limit the method of Option exercise to a
cashless method for Participants resident in the PRC not having permanent residence in a country
other than the PRC (“PRC Participants”). Such discretion includes and is not limited to the
required exchange of proceeds by the Administrator into Renminbi for transmittal to PRC
Participants, deductions for fees associated with the exchange, and deductions for PRC taxes, as
may be necessary to comply with applicable PRC foreign exchange and tax regulations.

(Remainder of Page Intentionally Left Blank)

10

 

EXHIBIT A

HISOFT TECHNOLOGY INTERNATIONAL LIMITED

SHARE INCENTIVE PLAN

OPTION EXERCISE AND ORDINARY SHARE

PURCHASE AGREEMENT

     The undersigned (the “Purchaser”) hereby irrevocably elects to exercise his/her right,
evidenced by that certain Option Agreement dated as of                                          (the “Option Agreement”) under the HiSoft Technology International Limited Share Incentive Plan (the “Plan”), as follows:

	 	•	 	the Purchaser hereby irrevocably elects to purchase                                          Ordinary Shares, par value US$0.0001
per share (the “Shares”), of HiSoft Technology International Limited, an exempted company
incorporated under the laws of the Cayman Islands (the “Company”), and
	 
	 	•	 	such purchase shall be at the price of US$                                         per share, for an aggregate amount of US$                          
       
(subject to applicable withholding taxes pursuant to Section 7.6.1 of the Plan).

     Capitalized terms are defined in the Plan if not defined herein.

     1. Delivery of Share Certificate. The Purchaser requests that a certificate representing the
Shares be registered to Purchaser and delivered to:                                                                                                                         .

     2. Investment Representations. The Purchaser acknowledges that the sale of the Shares by the
Purchaser is restricted by Securities and Exchange Commission Rule 701. The Purchaser hereby
affirms as made as of the date hereof the representations in Section 6 of the “Terms and Conditions
of Option” (which are attached to and a part of the Option Agreement, the “Terms”) and such
representations are incorporated herein by this reference. The Purchaser represents that he/she has
no need for liquidity in this investment, has the ability to bear the economic risk of this
investment, and can afford a complete loss of the purchase price for the Shares.

     The Purchaser acknowledges receipt of the Company’s condensed consolidated financial
information.

     The Purchaser also understands and acknowledges (a) that the certificates representing the
Shares will be legended as provided for in Section 7.5.3 of the Plan, and (b) that the Company has
no obligation to register the Shares or file any registration statement under federal or state
securities laws.

     3. Limitation on Disposition and Other Restrictions. The Shares are subject to and the
Purchaser hereby agrees to the following terms and conditions of the sale of the Shares to the
Purchaser:

 

 

	 	•	 	any transfer of the Shares must comply with the restrictions on transfer set forth in
Section 7.2 of the Plan and all applicable laws as set forth in Section 7.5 of the
Plan;
	 
	 	•	 	the Shares are subject to, and following any otherwise permitted transfer of
the Shares, the Shares shall remain subject to and the transferee shall be bound by,
the lock-up provisions set forth in Section 7 of the Terms, the Company’s call right
and right of first refusal set forth in Sections 8 and 9 of the Terms, the share
legend requirements of Section 7.5.3 of the Plan, the foregoing provisions of this
Section 3, and the arbitration provisions of Section 15.3 of the Terms; and
	 
	 	•	 	as a condition to any otherwise permitted transfer of the Shares, the Company
may require the transferee to execute a written agreement, in a form acceptable to the
Administrator, that the transferee acknowledges and agrees to the foregoing terms and
restrictions imposed on the Shares.

     4. Plan and Option Agreement. The Purchaser acknowledges that all of his/her rights are
subject to, and the Purchaser agrees to be bound by, all of the terms and conditions of the Plan
and the Option Agreement (including the Terms), both of which are incorporated herein by this
reference. If a conflict or inconsistency between the terms and conditions of this Exercise and
Ordinary Share Purchase Agreement and of the Plan or the Option Agreement shall arise, the terms
and conditions of the Plan and/or the Option Agreement shall govern. The Purchaser acknowledges
receipt of a copy of all documents referenced herein (including the Terms and a disclosure
statement) and acknowledges reading and understanding these documents and having an opportunity to
ask any questions that he/she may have had about them. Any controversy or claim arising out of or
relating to this Exercise and Ordinary Share Purchase Agreement shall be submitted to arbitration
in accordance with Section 15.3 of the Terms, and Cayman Islands law shall apply as provided in
Section 15.1 of the Terms.

     5. Entire Agreement. This Exercise and Ordinary Share Purchase Agreement, the Option
Agreement (including the Terms), and the Plan together constitute the entire agreement and
supersede all prior understandings and agreements, written or oral, of the parties hereto with
respect to the subject matter hereof. The Plan, the Option Agreement and this Exercise and
Ordinary Share Purchase Agreement may be amended pursuant to Section 7.7 of the Plan. Such
amendment must be in writing and signed by the Company. The Company may, however, unilaterally
waive any provision hereof or of the Option Agreement in writing to the extent such waiver does
not adversely affect the interests of the Participant hereunder, but no such waiver shall operate
as or be construed to be a subsequent waiver of the same provision or a waiver of any other
provision hereof.

     6. Notice of Sale of ISO Shares. If the Shares are being acquired upon exercise of an Option
intended to qualify as an Incentive Stock Option, the Purchaser agrees that, upon any sale or other
transfer of the Shares within either one year of the date that they are acquired by the Purchaser
or two years after the Award Date set forth in the Option Agreement, the Purchaser shall provide
the notice required under Section 5.5.3 of the Plan.

 

 

	 	 	 	 	 	 	 

	“PURCHASER”	 	 	 	ACCEPTED BY:
	 	 	 	 	HISOFT TECHNOLOGY
 INTERNATIONAL LIMITED
	 
	 	 	 	 	 	 
	Signature	 	 	 	an exempted company incorporated under the laws
of the Cayman Islands
	 
	 
	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date

	 	 	 	Print Name:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	(To be completed by the company after the price
(including applicable withholding taxes), value (if
applicable) and receipt of funds is verified.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]