Document:

exv10w5

Exhibit 10.5

Execution Copy

THIRD AMENDED STRATEGIC COOPERATION AGREEMENT

This Third Amended Strategic Cooperation Agreement (the
“Agreement”) is entered into on Jan. 23,
2008 in Dalian, the People’s Republic of China (“PRC”) by and among the following entities,

HiSoft Technology (Dalian) Co., Ltd. , a company incorporated under the laws of the PRC,
whose registered office is at No. 33, Lixian Street, Qixianling Industrial Base, Hi-Tech
Zone, Dalian, PRC (“HiSoft”), on one hand;

And

Dalian Haihui Sci-Tech Company Limited , a joint stock company organized and existing
under the laws of the PRC, whose registered office is at No. 35, Lixian Street, Qixianling
Industrial Base, Hi-Tech Zone, Dalian, PRC (“Haihui Dalian”);

Li Shi , a PRC individual the ID Card Number of whom is
110105196101272110;

Zhang Xin , a PRC individual the ID Card Number of whom is
150202197311211218;

WANG Jiuchang , a PRC individual the ID Card number of whom is 210211195210265835
(together with Li Shi and Zhang Xin, the “Existing Shareholders”), on the other hand.

In this Agreement, the above parties may be individually referred to as a “Party” and collectively
as the “Parties”.

RECITALS

WHEREAS, the persons listed in Schedule 1 attached hereto (the “Original Shareholders”),
Haihui Dalian, on one side, and HiSoft, on the other side, previously entered into a Second
Amended Strategic Cooperation Agreement, dated as of January 23, 2008 (the “Prior Agreement”);

WHEREAS, as of the date of this Agreement, the Existing Shareholders are the sole record and
beneficial owners of Haihui Dalian after certain share transfer transactions among the Original
Shareholders and the Existing Shareholders;

WHEREAS, each Existing Shareholder is willing to accept the rights and obligations of the Original
Shareholders under the Prior Agreement, except as otherwise amended hereby;

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NOW THEREFORE, in consideration of the premises and other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

AGREEMENT

	1.	 	Strategic Cooperation

The Parties agree to cooperate with each other and perform their respective obligations in
accordance with this Agreement.

	2.	 	Business Contracts
	 
	 	 	Undertaking New Projects. Starting from date on which this Agreement is duly
executed by the Parties hereto (the “Effective Date”), Haihui Dalian shall (i) cease to
accept any new project for the development and sale of computer software, development of
Internet application technologies and related products, technical and engineering
services for automation projects and technical consultancy and marketing consultancy
services (the “Current Business”) from any prospective customers, (ii) refer any and all
new projects from prospective customers to HiSoft, and (iii) limit its business scope as
to the software-related training services.
	 
	3.	 	HiSoft’s Services to Haihui Dalian
	 
	3.1	 	Technical and Business Management Services. Haihui Dalian hereby appoints
HiSoft as its exclusive provider of the software products and systems
maintenance services (“HiSoft Services”) with respect to active projects with
client contracts (the “Existing Projects”).
	 
	3.2	 	Exclusivity. During the term of this Agreement, Haihui Dalian shall not hire,
use or accept any maintenance and other technical services with respect to any
of the Existing Projects from any third party without the prior written consent
of HiSoft.
	 
	3.3	 	Intellectual Property Rights. Unless otherwise agreed to by the Parties in
writing and to the extent permitted under the relevant contracts between
Haihui Dalian and its customers and applicable law then in force and the
relevant governmental authorities, HiSoft shall be the sole and exclusive
owner of all rights, title and interests to any and all Intellectual Property Rights
arising from the performance of this Agreement, whether developed by HiSoft
or Haihui Dalian, including but not limited to copyrights, patents, know-how,
trademarks, service marks, trade secrets and other similar rights, but except for
the rights of attribution or other “personal rights”  which vest only in the
employees according to law.

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	 	 	For the purpose of this Agreement, the term
“Intellectual Property Rights”
means any and all intangible legal rights or interests evidenced by or embodied in (1)
any idea, design, concept, method, process, technique, apparatus, software, invention,
discovery or improvement, including any patents, patent applications, trade secrets and
know-how; (2) any work of authorship, including any copyrights, industrial designs, mask
works or moral rights; (3) any trademarks, trade names, service marks, trade
designations, trade dress and associated goodwill; and (4) any other proprietary
technology or material in which similar rights exist by virtue of or pursuant to any law
in force in any part of the world.
	 
	3.4	 	Claims. Haihui Dalian shall be exclusively responsible for any claims or legal or
administrative proceedings arising from any improper technical operation or any improper use
by it of any of the Intellectual Property Rights and other rights in and associated with the
HiSoft Services provided hereunder without HiSoft’s instruction. In the event Haihui Dalian
finds any unauthorized or illegal exploitation of the Intellectual Property Rights and other
rights in and associated with the HiSoft Services by any person, Haihui Dalian shall promptly
inform HiSoft of such illegal acts, and shall provide assistance and give full cooperation to
HiSoft (if so requested by HiSoft) in any action, claim or proceedings brought or threatened
in relation to such Intellectual Property Rights and any other rights.
	 
	4.	 	Use of Haihui Dalian Facilities and Intangible Assets; Related Options
	 
	4.1	 	Use of Haihui Dalian Facilities. Throughout the term of this Agreement,
Haihui Dalian shall allow HiSoft to lease and use all of the facilities and assets
of Haihui Dalian (the “Target Assets”) on a full time basis (i.e., 24 hours a day
and 7 days a week).
	 
	4.2	 	Use of Intellectual Property Rights. During the term of this Agreement,
Haihui Dalian shall allow HiSoft to use all of the Intellectual Property Rights
that Haihui Dalian possesses as of the date of this Agreement (the “Target
IPRs”), whether registered or not. Where necessary, HiSoft may require
Haihui Dalian to enter into a separate license agreement for any particular
Target IPR it elects to use, for the purpose of registering such license with the
relevant registration authority as required by applicable law.
	 
	4.3	 	Option to Purchase Target IPRs and Target Assets. During the term of this
Agreement, HiSoft shall have an option, exercisable by HiSoft at its discretion
at any time with a delivery of a written notice to Haihui Dalian, to purchase
from Haihui Dalian, all or any of the Target IPRs and the Target Assets at the
minimum price allowed by applicable law or another price agreed to by
HiSoft.
	 
	4.4	 	Exercise of Option. In the event HiSoft exercises its option to purchase any
Target IPR or Target Asset, Haihui Dalian shall prepare and execute all such
documents and take all such actions necessary or advisable to effectuate the

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	 	 	transfer of the Target IPRs or Target Assets of Haihui Dalian to HiSoft or its
designee, including without limitation making all necessary applications and obtaining
all necessary government approvals for such transfer.
	 
	5.	 	Financial Arrangements
	 
	5.1	 	Fees for HiSoft Services. As consideration for the HiSoft Services, Haihui
Dalian shall pay to HiSoft the fees in accordance with this Section 5.1 (the “Fees”).
The Fees shall be paid on a quarterly basis (“Settlement Period”).

	 	(a)	 	Service Fee Schedule/Formula. The Fee shall be
calculated in
accordance with Schedule 2 (Service Fee Schedule/Formula) hereof.
	 
	 	(b)	 	Reimbursement. In addition to those amounts due resulting from
the
HiSoft Services rendered hereunder, to the extent not expressly
addressed by this Agreement, Haihui Dalian agrees to reimburse
HiSoft for (i) all expenses HiSoft may incur in connection with its
performance of HiSoft Services, including, but not limited to travel,
professional, printing and postage fees and expenses, and (ii) all
expenses HiSoft may be required to incur on behalf of Haihui Dalian in
connection with its performance of HiSoft Services or with respect to
payments made by HiSoft for such HiSoft Services pursuant to this
Agreement, resulting, without limitation, from any taxes, excises,
duties, levies, withholdings or other similar charges, with the exception
of any taxes due on HiSoft’s income.
	 
	 	(c)	 	Settlement. Within seven (7) days from expiration of each
Settlement
Period, HiSoft shall send Haihui Dalian a billing notice on the amounts
of the Fees, duly calculated for that Settlement Period. Haihui Dalian
shall pay the Fees within seven (7) days after the date of each billing
notice from HiSoft. Any and all Fees payable under this Agreement
shall be paid in RMB by Haihui Dalian to HiSoft. If Haihui Dalian
fails to pay any Fees when due, it shall pay to the HiSoft a default
interest on the overdue sum from the due date to the date the sum is
received in full at the bank’s benchmark lending rate for the relevant
month published by the People’s Bank of China compounded monthly.
	 
	 	(d)	 	Inspection. Haihui Dalian shall keep separate accounts on the
HiSoft
Services. HiSoft shall be entitled, at any time and in respect of any
Settlement Period to send its employee(s) or employ, at its own costs, a
certified public accounting firm registered in the PRC to review the
accounts having relations with the HiSoft Services, and/or audit Haihui
Dalian’s report(s) in respect of any Settlement Period. Haihui Dalian
shall provide any and all documents, books, records, data and
information and assistance as may be deemed by HiSoft’s employee(s)
or the certified public accounting firm as necessary or advisable to
check or audit Haihui Dalian’s report(s). The auditing report rendered
by HiSoft’s employee(s) shall be final and conclusive unless

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	 	 	 	challenged by Haihui Dalian within seven (7) days after its receipt of such
report. Any auditing report rendered by the certified public accounting firm
shall be final and conclusive in respect of the appraisal. HiSoft shall be
entitled to send Haihui Dalian at any time after the date of the auditing report
a billing notice covering the Fees as indicated by the auditing report. Haihui
Dalian shall settle such billing notice within seven (7) days after the date
thereof in accordance with Section 5.1(c) above.
	 
	 	(e)	 	Deductions. Any payment of the Fees made by Haihui Dalian to
HiSoft shall be free from any deductions whatsoever including but not limited to
any handling fees charged by the bank, tax or any other costs and expenses.

	5.2	 	Nothing in this Agreement implies any assumption of any debt of Haihui Dalian by HiSoft or
any assignment of any account receivable by Haihui Dalian to HiSoft.
	 
	6.	 	Confidentiality
	 
	6.1	 	Confidentiality. Each Party shall protect and maintain all Confidential
Information (as defined below) of the other Parties which may be directly or
indirectly disclosed to or obtained by the first Party, under any circumstances
and whether or not such Confidential Information is disclosed in the
performance of this Agreement, in the strictest confidence and shall not, for so
long as, and to the extent that, such Confidential Information has not become
generally available and known to the public through authorized publication by
the other Parties, disclose, directly or indirectly, in any manner, any such
Confidential Information to any person for any purposes without the prior
written consent of the second Party, except that HiSoft shall be free to disclose
any Confidential Information to its employees, officers, agents and
shareholders.
	 
	 	 	For the purpose of this Agreement, the term “Confidential Information” of a Party means
any proprietary or secret information related to such Party, including, where applicable,
any and all written, oral or other tangible or intangible forms of information relating
to or associated with the Intellectual Property Rights of such Party; marketing plans or
techniques; customer names; business model; market survey; financial or business
information, whether or not labeled as “Confidential”; trade secrets which include, but
are not restricted to, any portion or phase of scientific or technical information,
design processes, procedures, formulas or improvements as well as inventions, original
works of authorship, developments, concepts, improvements, designs, discoveries, ideas,
trademarks or trade secrets.
	 
	6.2	 	Obligations upon Termination of Agreement. Upon the termination or
expiration of this Agreement, each Party shall return to the other Parties or
destroy any and all the documents, information or software containing the

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	 	 	other Parties’ Confidential Information upon request, delete all of such Confidential
Information from any electronic devices, and cease to use them.
	 
	6.3	 	Compliance by Employees and Others. Each Party shall procure any and all of its
employees, directors, officers, and agents to keep the other
Parties’ Confidential Information
in strictest confidence.
	 
	7.	 	Representations and Warranties
	 
	7.1	 	Mutual Representations and Warranties. Each Party represents and warrants
to the other Parties as follows:

	 	(a)	 	It (other than the Existing Shareholders) is a company duly registered
in Dalian, PRC and validly existing under the laws of the PRC.
	 
	 	(b)	 	It has full right, power, authority and capacity and has obtained all
consents and approvals necessary to execute, deliver and perform this
Agreement.
	 
	 	(c)	 	It has duly executed and delivered this Agreement, and the
Agreement constitutes a legal, valid and binding agreement
enforceable against it in accordance with the terms hereof.
	 
	 	(d)	 	The execution of, and performance of its obligations under this
Agreement do not and will not contravene any agreement to which it
is a party.

	7.2	 	Further Representations. Warranties and Undertakings by Haihui Dalian.
Haihui Dalian hereby further represents, warrants, and undertakes to HiSoft
that during the term of this Agreement (unless otherwise instructed or
permitted by HiSoft in advance in writing):

	 	(a)	 	it shall maintain good title to the Target IPRs until they are
transferred
to HiSoft pursuant to this Agreement, and shall not directly or
indirectly create any mortgage, pledge, lien, or other encumbrance of
any substance upon any of them or sell, transfer or otherwise dispose
of any of them;
	 
	 	(b)	 	it shall not undertake any HiSoft Services using its own resources nor
outsource or purchase any HiSoft Services from any party other than
HiSoft, but shall, throughout the term of this Agreement, purchase the
same from HiSoft on the terms hereof; for the Existing Projects only;
	 
	 	(c)	 	it shall not carry out any business in direct or indirect competition
with that of HiSoft (including, without limitation, its provision of the
HiSoft Services hereunder and any other IT services and software
development business) or that of any of the affiliates of HiSoft which
is controlled by, controlling, or under common control with HiSoft,

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	 	 	 	directly or indirectly (such affiliates include without limitation, DMK
International, Inc. ,
 ,
HiSoft Services (Beijing) Limited , HiSoft
Technology (Chengdu) Co., Ltd. , HiSoft Systems (Shenzhen) Limited , HiSoft
Systems Hong Kong Limited , HiSoft Envisage Inc. and HiSoft Technology
(Singapore) Pte. Ltd.);
	 
	 	(d)	 	it shall not solicit, employ or offer to employ any employee of HiSoft;
	 
	 	(e)	 	it shall make its best efforts to assist HiSoft in obtaining all relevant
licenses, permits, qualifications related to HiSoft Services, including
without limitation high and new technology enterprise status,
software enterprise status, software product registrations, CMM5 and
ISO9001, except as otherwise waived by HiSoft.

	8.	 	Warranties of the Existing Shareholders
	 
	 	 	The Existing Shareholders jointly and severally represent and warrant to HiSoft, and undertake to
procure, that Haihui Dalian will fully perform his obligations hereunder throughout the term of
this Agreement.
	 
	9.	 	General Provisions
	 
	9.1	 	Effective Date and Term. This Agreement shall take effect on the Effective
Date and the initial term of this Agreement shall expire on July 27, 2024 unless
and until earlier terminated as set forth below.
	 
	9.2	 	Early Termination. This Agreement shall only be terminated by mutual
written agreement of all Parties within the initial term set forth in Section 9.1
hereof.
	 
	9.3	 	Survival. The rights and obligations under Sections 6, 7 and 9.4 shall survive
the expiration or termination of this Agreement.
	 
	9.4	 	Settlement of Disputes. The Parties shall attempt to settle any dispute arising
from the interpretation or performance of this Agreement or in connection
with this Agreement through friendly consultation. In case no settlement can
be reached through consultation within thirty (30) days after a Party requests
such consultation, a Party may submit such dispute to the China International
Economic and Trade Arbitration Commission (“CIETAC”). The arbitration
shall follow the current rules of CIETAC, and the arbitration proceedings shall
be conducted in Chinese and shall take place in Beijing. There shall be one
arbitrator, who shall be mutually agreed by the Parties hereto. In the absence
of an agreement among the Parties on the appointment of the arbitrator, the
chairman of CIETAC shall designate the arbitrator. The arbitration award

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	 	 	shall be final and binding upon the Parties and shall be enforceable in accordance
with its terms.
	 
	9.5	 	Force Maieure. Force Majeure includes acts of governments, acts of nature,
fire, explosion, typhoon, flood, earthquake, tide, lightning, war, and means any
event that is beyond the Party’s reasonable control and cannot be prevented
with reasonable care. However, any shortage of credit, capital or finance shall
not be regarded as an event of Force Majeure. The Party claiming Force
Majeure shall notify the other Parties without delay. If either of the Parties is
delayed in or prevented from performing its obligations under this Agreement
by Force Majeure, neither Party shall be responsible for any damage, increased
costs or loss which the other Parties may sustain by reason of such a failure or
delay of performance, and such failure or delay shall not be deemed a breach
of this Agreement. The Party claiming Force Majeure shall take appropriate
means to minimize or remove the effects of Force Majeure, and attempt to
resume performance of the obligations delayed or prevented by the event of
Force Majeure. After the event of Force Majeure is removed, all Parties agree
to resume performance of this Agreement with their best efforts
	 
	9.6	 	Governing Law. This Agreement shall be governed by the laws of the PRC.
	 
	9.7	 	Notice. Any and all notices hereunder shall be in writing. A notice shall be
deemed effective upon delivery if hand delivered or three (3) business days
after deposit with an international courier service or in the mail addressed to
the intended recipient at the address set forth herein or otherwise provided by
the recipient; if sent by facsimile, it shall be deemed delivered immediately,
provided that if it is delivered after 5:00 p.m. on a certain day, it shall be
deemed delivered on the next business day.

	 	 	 	To HiSoft:

	 	 	 	HiSoft Technology (Dalian) Co., Ltd

No. 33 Lixian Street, Hi-Tech Zone, Dalian, China, 116023,

Attn. Ms. Zhang Wei,

Fax: +86-411-84791350

	 	 	 	To Haihui Dalian:

	 	 	 	Dalian Haihui Sci-Tech Company Limited

c/o HiSoft Technology (Dalian) Co., Ltd.

No. 33 Lixian Street, Hi-Tech Zone, Dalian, China, 116023,

Attn. Ms. Zhang Wei,

Fax: +86-411-84791350

	 	 	 	To the Existing Shareholders:
	 
	 	 	 	If to Zhang Xin or Li Shi:

	 	 	 	6/F, Haya Plaza, No. 1, Shangdi East Road, Haidian
District, 
Beijing
100085, China

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	 	 	 	Fax:+86-10-5987-5588

	 	 	 	If to Wang Jiuchang:

	 	 	 	No. 33 Lixian Street, Hi-Tech Zone, Dalian, China, 116023,
Fax:+86-0411-84791350

	9.8	 	Successors; Assignment. This Agreement binds and will benefit the Parties
and their respective successors and assigns. None of Haihui Dalian or the
Exiting Shareholders may assign this agreement to any third Party without the
prior written consent of HiSoft. Each of Haihui Dalian and the Existing
Shareholders hereby grants its consent to HiSoft that HiSoft may transfer all or
any of its rights and obligations under this Agreement at any time to any Party
at its sole discretion.
	 
	9.9	 	Severability. Any provision of this Agreement which is invalid, illegal or
unenforceable in any jurisdiction shall, as to this jurisdiction, be ineffective to
the extent of such invalidity, illegality to unenforceability, without affecting in
any way the remaining provisions hereof in such jurisdiction or rendering that
or any other provision of this Agreement invalid, illegal or unenforceable in
any other jurisdiction.
	 
	9.10	 	Entire Agreement; Amendment and Supplement. This Agreement, together
with any schedule attached hereto, constitutes the entire understanding of the
Parties with respect to the subject hereof, and supersedes all prior oral or
written agreements among the Parties including but not limited to the Prior
Agreement. Any amendment and supplement of this Agreement shall come
into force only after a written agreement is signed by all Parties. The
amendment and supplement shall become part of this Agreement and shall
have the same legal effect as this Agreement.
	 
	9.11	 	Counterparts. This Agreement may be executed in any number of counterparts
all of which taken together shall constitute one instrument.

[Signature page follows.]

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	NOW, IN WITNESS HEREOF, the Parties have caused their authorized representatives to execute
this Agreement on the Effective Date.

	HISOFT: HAIHUDDALIVN:

	HiSoft Technolqgy (Dalian) Co., Ltd. Dalian Haihui Sci-Tech Company Limited

	By:___By:

	Name: Name:

	Title: Title:

	EXISTING SHAREHOLDERS:

	LI Shi            ZHANG Xin

	as an individual            as an individual

	WANG Jiuchang

	as an individual

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SCHEDULE 1

Schedule of the Original Shareholders of Haihui Dalian

	 	 	 	 	 	 	 
	#	 	Name	 	Ownership%
	1

	 	LI
Yuanming

 PRC ID No. 21021119560326581X
	 	 	96	%
	2

	 	WANG Xingwei

PRC ID No. 210602196308213515
	 	 	1	%
	3

	 	TAN
Jikui
PRC ID No.210255700720029
	 	 	
1	
%
	4

	 	WANG
Zhuohong

 PRC ID No. 210211196606095822
	 	 	1	%
	5

	 	HE
Qing

PRC ID No.220203196610013617
	 	 	1	%

 

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Schedule 2

Service Fees Schedule

Service Fees for HiSoft Services shall be calculated in accordance with the following formula,
viz.:

Service Fees = R — C

Where,

“R” means all the revenue generated by Haihui Dalian during the relevant Settlement Period;
and

“C” means the total costs incurred by Haihui Dalian during the same Settlement Period, which shall
include the following:

(1) Compensation for employees;

(2) Administrative expenses;

(3) Travel cost; and

(4) Capital expenditures.

In addition, “C” shall be consistent with past practice of Haihui Dalian and practice of the
industry, and shall be subject to HiSoft’s review in accordance with this Agreement.

(The
list shall be subject to the adjustments agreed upon by the Parties
from time to time.)exv10w6

Exhibit 10.6

Execution Copy

THIRD AMENDED EQUITY ACQUISITION OPTION AGREEMENT

     This THIRD AMENDED EQUITY ACQUISITION OPTION AGREEMENT (the “Agreement”) is entered into as of
Jan. 23, 2008 between:

HiSoft Technology (Dalian) Co., Ltd., a wholly foreign-owned enterprise incorporated under
the laws of the People’s Republic of China
(“PRC”), whose registered office is at No. 33,
Lixian Street, Qixianling Industrial Base, Hi-Tech Zone, Dalian, PRC (hereinafter known as
“HiSoft”), on one side;

and

the
persons listed in Schedule 1 attached hereto (each an “Existing Shareholder”,
and collectively the “Existing Shareholders”); and

Dalian Haihui Sci-Tech Company Limited , a joint stock limited company organized and
existing under the laws of the PRC, whose registered office is at No. 35, Lixian Street,
Qixianling Industrial Base, Hi-Tech Zone, Dalian, PRC (“Haihui Dalian”), on the other.

The parties to this Agreement are collectively referred to as the “Parties” and individually as
a “Party.”

Recitals

WHEREAS, the persons listed in Schedule 2 attached hereto (the “Original
Shareholders”), HiSoft and Haihui Dalian previously entered into a Second Amended Equity
Acquisition Option Agreement, dated as of January 23, 2008 (the “Prior Agreement”), under
which each of the Original Shareholders granted to HiSoft or persons designated by it an
option to purchase the Original Shareholders’ shares in Haihui Dalian, on the terms and
subject to the conditions set forth therein;

WHEREAS, as of the date of this Agreement, the Existing Shareholders are the sole record and
beneficial owners of Haihui Dalian, holding the shares in Haihui Dalian in the percentages
respectively set forth next to their names on Schedule 1, after certain share
transfer transactions among the Original Shareholders and the Existing Shareholders;

WHEREAS, each Existing Shareholder is willing to accept the rights and obligations of the
Original Shareholders under the Prior Agreement, except as otherwise amended hereby; and

     NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions
hereinafter set forth, the Parties hereto agree as follows:

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AGREEMENT

1. GRANT OF OPTIONS

     1.1 Option to Purchase from
 Existing Shareholders. For good and valuable
consideration, each of the Existing Shareholders hereby grants an option to HiSoft (each such
option an “Option” and collectively the “Options”), exercisable on and subject to the terms and
conditions hereof, for HiSoft or its nominee to purchase all and any part of the shares of Haihui
Dalian held by such Existing Shareholder (the “Haihui Dalian Shares”) at the Purchase Price. The
“Purchase Price” for the Haihui Dalian Shares to be transferred to HiSoft, or its nominee, upon
exercise of this Option shall be RMB1.00, or a higher consideration to be agreed upon by the
Parties if such higher consideration is required under applicable law then in force, and the
relevant approval/registration authorities. HiSoft may sell, transfer, assign, charge, pledge,
encumber or create any interest in favor of any party over or in relation to the Option, without
the prior consent from or notice to the Existing Shareholders or Haihui Dalian.

     1.2 Option Terms. The Options shall not lapse or expire or terminate with respect to
an Existing Shareholder unless and until (i) they are exercised in full or (ii) terminated by
HiSoft and the Existing Shareholder in writing, (iii) the Existing Shareholder has otherwise
transferred all the Haihui Dalian Shares held thereby to a party with the prior consent of HiSoft
(the “Option Termination Date”).

     Each Option granted by an Existing Shareholder hereunder may be exercised by HiSoft in favor
of any persons nominated by HiSoft separately or together, on one or more occasions, in each case
for all or any portion of the Haihui Dalian Shares, by written notice to the Existing Shareholder
(with a copy to Haihui Dalian) in substantially the form attached hereto as Exhibit A or
in any other form to the satisfaction of HiSoft in its sole discretion (the “Exercise Notice”).

     1.3 Consequences of Exercise. Upon receipt by an Existing Shareholder of an Exercise
Notice, such Existing Shareholder shall enter into an agreement with HiSoft or its nominee for the
sale and purchase of the Haihui Dalian Shares in a customary form satisfactory to HiSoft and
permitted under applicable law then in force and the relevant approval/registration authorities
with immediate effect. Consummation of the sale and purchase of the Haihui Dalian Shares set
forth in the Exercise Notice (“Option Exercise Closing”) shall take place in accordance with
Section 2 hereof.

     1.4 Payment of Purchase Price by HiSoft. The Purchase Price will be paid by HiSoft or
its nominee at or prior to the Option Exercise Closing.

     1.5 Cooperation by Existing Shareholders. Each of the Existing Shareholders agrees
that, with effect from the date of this Agreement, he shall exercise his rights as a holder of the
Haihui Dalian Shares in accordance with the terms of this Agreement.

	 	 	 	 	 

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2. OPTION EXERCISE CLOSING; DELIVERIES

     2.1
 Pre-closing Obligations; General. Prior to Option Exercise Closing and within 30
business days after the date of the Exercise Notice or such other period as HiSoft and the relevant
Existing Shareholder(s) may agree, each of the Existing Shareholders and Haihui Dalian shall
approve, enter into, execute and deliver all such documents as shall be necessary to effect the
transfer of the relevant Haihui Dalian Shares, take all such actions and submit all such documents
as may be required by the relevant approval/registration authorities, including but not limited to
the following:

          (a) Adopt a resolution of the Existing Shareholders approving the transfer of the Haihui
Dalian Shares by the Existing Shareholders to HiSoft or its nominee pursuant to HiSoft’s exercise
of the Option;

          (b) Make filings with all relevant authorities for the transfer of the Haihui Dalian Shares as
required by applicable laws and regulations.

     2.2 The Option Exercise Closing. The Option Exercise Closing shall be held on the
date immediately after the completion of the actions set forth in Section 2.1 above (and
Section 2.4, where applicable) but no later than 3 months after the issue date of the
Exercise Notice or such other date as HiSoft and the transferring Existing Shareholders may agree,
at a time and place agreed to by HiSoft and the transferring Existing Shareholders.

	2.3	 	Deliveries. At the Option Exercise Closing

          (a) Haihui Dalian shall deliver to HiSoft the following documents on behalf of the
transferring Existing Shareholder(s):

	 	(i)	 	certified true copies of any and all documents
filed with relevant authorities in accordance with Section
2.1(b) above and any and all documents issued by such authorities
in response, if any;
	 
	 	(ii)	 	original share certificate(s) under the name
of HiSoft or its nominee (as applicable) representing the number of
Haihui Dalian Shares acquired from the transferring Existing
Shareholders; and
	 
	 	(iii)	 	a certified true copy of the updated register
of shareholders of Haihui Dalian showing HiSoft or its nominee (as
applicable) being a shareholder of Haihui Dalian holding the number of
Haihui Dalian Shares acquired from the transferring Existing
Shareholders.

          (b) The transferring Existing Shareholder(s) and Haihui Dalian shall deliver to HiSoft such
other documents as may be necessary to transfer good title to the Haihui Dalian Shares being
transferred.

          (c) HiSoft, or its nominee, shall deliver to the transferring Existing
Shareholder(s) the relevant Purchase Price.

	 	 	 	 	 

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     2.4 Conversion into an FIE.
 Without limiting the generality of Sections 2.1 through 2.3 above, in the event upon exercise of the Options, HiSoft requires the relevant
Haihui Dalian Shares to be transferred to a nominee who is a foreign entity or person, which would
require the conversion of Haihui Dalian into a foreign invested enterprise under PRC law (an
“FIE”), then prior to Option Exercise Closing and within 30 business days after the date of the
Exercise Notice or such other period as HiSoft and the Existing Shareholders may agree, the
Existing Shareholders and Haihui Dalian shall approve, enter into, execute and deliver all such
documents, including without limitation, shareholder resolutions, a joint venture contract or
shareholders agreement (as appropriate), and articles of association in such form and substance
satisfactory to HiSoft, and take all such actions as shall be necessary to effect the conversion
of Haihui Dalian into an FIE, including obtaining the approval and consent of all competent
authorities. Upon Option Exercise Closing, Haihui Dalian shall deliver such other documents in
addition to those in Section 2.3 above that are in connection with or evidence the
conversion of Haihui Dalian into an FIE in such form and substance satisfactory to HiSoft.

3. PROTECTIVE PROVISIONS

     3.1 Restrictions on Transfers. Until the Option Termination Date, no Existing
Shareholder shall sell, assign, pledge, exchange, hypothecate or otherwise transfer or dispose of
any Haihui Dalian Shares, unless required by a court order, in which case the Existing Shareholder
shall immediately notify HiSoft in writing. Haihui Dalian shall refuse to recognize or register
any purported transfer of the Haihui Dalian Shares in violation of this Section 3.1.

     3.2 Registered Capital of Haihui Dalian. Neither the Existing Shareholders nor
Haihui Dalian shall take any action to increase or otherwise change the registered capital of
Haihui Dalian at any time prior to the Option Termination Date without the prior written consent of
HiSoft.

     3.3 Representations, Warranties and Undertakings of the Existing Shareholders. Each
Existing Shareholder represents and warrants and agrees to undertake as follows:

          (a) At each Option Exercise Closing, the Existing Shareholder will own the entire legal and
beneficial interest in his Haihui Dalian Shares (save for such equity interest previously
transferred pursuant to this Agreement) and have full and effective rights to dispose of the Haihui
Dalian Shares. There is and shall be no pledge, guaranty or other third party rights and interests
imposed on the Haihui Dalian Shares, and the Haihui Dalian Shares shall be fully paid up.

          (b) As of the date of this Agreement, the Existing Shareholder is and shall be the legal and
beneficial owner of 100% of his Haihui Dalian Shares save any Haihui Dalian Shares transferred to
HiSoft or its nominees pursuant to this Agreement, and shall not impose any pledge, guaranty and
any other encumbrances on the Haihui Dalian Shares during the term hereof except as otherwise
provided herein.

          (c) The Existing Shareholder waives any and all his pre-emptive rights, if any, to purchase
the Haihui Dalian Shares and consent to each exercise by HiSoft and/or its

	 	 	 	 	 

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nominee of the Option in whole or in part at any time or from time to
time.

          (d) The Existing Shareholder is a PRC entity or citizen.

     3.4 Joint and Several Representations, Warranties and Undertakings of the Existing
Shareholders and Haihui Dalian. Each of the Existing Shareholders and Haihui Dalian jointly
and severally represents and warrants and agrees to undertake as follows:

          (a) The execution and performance of this Agreement shall not and does not in any way violate
any agreements and contracts to which he is a party, and to his best knowledge, shall not and does
not violate any laws or regulations, license, order, judgment, decree.

          (b) The business of Haihui Dalian shall comply with all applicable laws, regulations and rules
and shall not breach any aforesaid laws, regulations and rules.

          (c) During the term of this Agreement, unless HiSoft or HiSoft Technology
International Limited (“HiSoft Cayman”) otherwise consents to in writing or otherwise in
accordance with the Third Amended Strategic Cooperation Agreement dated the same date herewith
between HiSoft, on one hand, and Haihui Dalian together with the Existing Shareholders, on the
other, Haihui Dalian shall:

	 	(i)	 	carry on its business as a going concern in, and only in, the
ordinary course;
	 
	 	(ii)	 	maintain with its best efforts the existing
organizational
structure and senior management personnel;
	 
	 	(iii)	 	keep normal business operation and ensure there is
no
substantial negative impact on Haihui Dalian’s goodwill and
operation after any Option Exercise Closing;
	 
	 	(iv)	 	keep its tangible assets in a good condition except wear and tear;
	 
	 	(v)	 	not transfer its assets or impose mortgage, pledge, guaranty on
its assets;
	 
	 	(vii)	 	collect due account receivable and otherwise exercise
creditor’s
rights and pay due account payable and other debts on schedule
in daily business;
	 
	 	(viii)	 	comply with laws and regulations in connection with its
estates,
assets, accounts or business;
	 
	 	(ix)	 	except in the ordinary course of business, promptly keep
HiSoft
informed of any events which may have a material effect on its
business in writing;
	 
	 	(x)	 	not enter into any settlement or waiver or alteration of any
claims or any other rights in a lawsuit without the prior consent
of HiSoft;
	 
	 	(xi)	 	not modify or supplement its constitutional documents, unless
necessary if and when the Option is exercised by HiSoft and/or
its nominee;
	 
	 	(xii)	 	not merge with or make an investment in any third party, nor
acquire or dispose of any of its assets outside the ordinary course
of business;

	 	 	 	 	 

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	 	(xiii)	 	not enter into any abnormal or unusual contracts or any
commitments or transactions with any third parties or with any of the
Existing Shareholders or incur any liability, debt or obligations or
guarantee and/or assume any obligations or liabilities of any other
persons outside the ordinary course of business;
	 
	 	(xiv)	 	provide documents related to its operation
upon HiSoft’s reasonable request, and permit HiSoft to have an
on-site investigation on the condition that HiSoft would not
interfere with its daily business unreasonably;
	 
	 	(xv)	 	consent to being examined by HiSoft
regarding its estates, assets, business and any other documents
mentioned in the Amended Equity Acquisition Agreement;
	 
	 	(xvi)	 	allow HiSoft to contact its clients and creditors directly;
	 
	 	(xvii)	 	not make any material changes in its business as it currently
conducts;
	 
	 	(xviii)	 	not distribute any profits;
	 
	 	(xix)	 	not make any material changes to the number of its employees;
	 
	 	(xx)	 	not make any material changes to its business plans and budgets;
	 
	 	(xxi)	 	not enter into a winding-up, any bankruptcy
proceedings or liquidation or apply for the appointment of a
receiver.

          (d) Haihui Dalian shall use its best efforts to amend any contracts with any third parties if
so requested by HiSoft for the purpose of ensuring HiSoft’s interests hereunder.

          (e) Haihui Dalian is an independent legal person, duly organized, validly existing and in good
standing under the laws and regulations of the PRC and has all requisite corporate power and
authority and legal right to conduct its business, to assume its liabilities with respect to the
assets under its operation and management and to execute and deliver, and to perform all of its
obligations under this Agreement.

          (f) There are no actions, suits or proceedings pending or, to the knowledge of the Existing
Shareholders and Haihui Dalian, threatened against Haihui Dalian and/or any of the Existing
Shareholders or the ownership or any assets or properties of Haihui Dalian and/or any of the
Existing Shareholders before any court, arbitrator or governmental department, commission, board,
bureau, agency, authority, or instrumentality, domestic or foreign (including, without limitation,
any regulatory commission of any jurisdiction), which, if determined adversely against Haihui
Dalian and/or any of the Existing Shareholders, would, singly or in the aggregate, have a material
adverse effect on the business, operations, prospects or assets or financial or other condition of
Haihui Dalian or the transactions contemplated by this Agreement.

     3.5 Continuing Effect of the Representations and Warranties. Existing Shareholders
and Haihui Dalian shall (i) ensure that all of the representations and warranties set forth in
Section 3.3 and Section 3.4 will be true and accurate at all times during the
continuance in force of this Agreement as if made on any date subsequent; and (ii) without delay,
deliver a notice in writing to HiSoft upon the occurrence of any events, facts. conditions and
changes or any other matters which have caused or may cause a substantial adverse consequence to
Haihui Dalian or breach of this Agreement.

	 	 	 	 	 

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    For the purpose of this Section 3, the term Haihui Dalian shall include any
subsidiaries of Haihui Dalian.

4. CONFIDENTIALITY

     No Existing Shareholder shall without the prior written approval of HiSoft make any
announcement concerning or otherwise disclose or divulge any information concerning Haihui Dalian
or its business or the entering into or the performing of this Agreement or any
related agreements.

     Existing Shareholders shall at all times after the date of this Agreement keep confidential,
and not directly or indirectly reveal, disclose or use for his own or any other purposes, any
confidential information concerning Haihui Dalian or its business or any information with respect
to the negotiation relating to this Agreement; the subject matter and/or provisions of this
Agreement; or any other party hereto, except that the restriction contained in this Section
4 shall not apply to (i) information which was already in the public domain or otherwise known
to the public prior to any such disclosure; and (ii) information the disclosure of which is
necessary in order to comply with applicable law, the order of any court, the requirements of a
stock exchange or other governmental or regulatory authority or to obtain tax or other clearances
or consents from any relevant authority.

     Upon any Existing Shareholder ceasing to be a shareholder of Haihui Dalian, such Existing
Shareholder shall return and deliver to Haihui Dalian all materials and information relating to
Haihui Dalian or its business.

     The Parties agree that this Section 4 remains valid during and after the term of this
Agreement whether this Agreement has been modified, rescinded, or
terminated.

5. PURCHASE/REPURCHASE RIGHT FOR SHARES IN HISOFT TECHNOLOGY INTERNATIONAL LIMITED

     To ensure enforcement of this Agreement as intended by the Parties, in the event of any
material violation of this Agreement by an Existing Shareholder, Kaiki Inc., a British Virgin
Islands company (the “Founder”), provided the defaulting Existing Shareholder is not a shareholder
(either direct or beneficial) of the Founder, and the holders of Series A Preferred Shares, Series
A-1 Preferred Shares and/or Series B Preferred Shares (each an “Investor”) of HiSoft Cayman shall
have the first right to purchase, and HiSoft Cayman shall have the second right to repurchase, up
to all the common shares of HiSoft Cayman indirectly owned by such Existing Shareholder through
the Founder at the then current par value, exercisable at the discretion of the Founder, the
Investor(s) and/or HiSoft Cayman, as applicable, all subject to the terms and conditions of
certain share purchase agreement and certain investors’ rights agreement entered into or to be
entered into among the shareholders of HiSoft Cayman and other Parties to the extent permitted
under applicable law then in force and the relevant approval/registration authorities.

	 	 	 	 	 

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6. MISCELLANEOUS

     6.1 Effectiveness and Term. This Agreement shall take effect upon duly execution by
the Parties until terminated in writing by the Parties or until the Existing Shareholders have
transferred all the shares held thereby of Haihui Dalian to HiSoft or its nominee in accordance
with this Agreement.

     6.2 Assignment. This Agreement may not be assigned by any Existing
Shareholder or Haihui Dalian without the prior written consent of HiSoft. HiSoft may assign this
agreement without the consent of any Existing Shareholder or Haihui Dalian. The provisions of
this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
respective heirs, legal representatives, successors and permitted assigns.

     6.3 Further Assurances. From and after the date of this Agreement, upon the request
of HiSoft, the Existing Shareholders and Haihui Dalian shall execute and deliver such instruments,
documents or other writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.

     6.4 Amendment; Termination. This Agreement may only be amended or terminated
by written consent of all the Parties hereto.

     6.5 Governing Law. This Agreement shall be governed by the laws of the PRC.

     6.6 Dispute Resolution. The Parties shall attempt to settle any dispute arising from
the interpretation or performance of this Agreement or in connection with this Agreement through
friendly consultation. In case no settlement can be reached through consultation within 30 days
after a Party requests such consultation, a Party may submit such dispute to the China
International Economic and Trade Arbitration Commission (“CIETAC”). The arbitration shall follow
the current rules of CIETAC, and the arbitration proceedings shall be conducted in Chinese and
shall take place in Beijing. There shall be one arbitrator, who shall be mutually agreed by the
Parties hereto. In the absence of an agreement between the parties on the appointment of the
arbitrator, the chairman of CIETAC shall designate the arbitrator. The arbitration award shall be
final and binding upon the parties and shall be enforceable in accordance with its terms.

     6.7 Notices. Any and all notices hereunder shall be in writing. A notice shall be
deemed effective upon delivery if hand delivered or three (3) business days after deposit with an
international courier service or in the mail addressed to the intended recipient at the address
set forth herein or otherwise provided by the recipient; if sent by facsimile, it shall be deemed
delivered immediately, provided that if it is delivered after 5:00 p.m. on a certain day, it shall
be deemed delivered on the next business day.

To HiSoft:

Hisoft Technology (Dalian) Co., Ltd

No. 33 Lixian Street, Hi-Tech Zone, Dalian, China, 116023,

Attn. Ms. Zhang Wei,

Fax: +86-411-84791350

To an Existing Shareholder:

	 	 	 	 	 

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As set forth on Schedule 1 hereof.

To Haihui Dalian:

Dalian Haihui Sci-Tech Company Limited

c/o HiSoft Technology (Dalian) Co., Ltd.

No. 33 Lixian Street, Hi-Tech Zone, Dalian, China, 116023,

Attn. Ms. Zhang Wei,

Fax: +86-411-84791350

     6.8 Termination of the Amended Equity Acquisition Agreement. This Agreement
shall be terminated on the Option Termination Date.

     6.9 Entire Agreement. This Agreement, together with any exhibits attached hereto,
constitutes the entire understanding of the Parties with respect to the subject hereof, and
supersedes all prior oral or written agreements among the Parties.

     6.10 Counterparts. This Agreement may be executed in any number of counterparts all of
which taken together shall constitute one instrument.

Signature Page Follows

	 	 	 	 	 

	3rd Amended Equity Acquisition Option Agreement

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	IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and
year herein above first written.
HISOFT:
HiSoft Technology (Dalian) Co., Ltd.

	By:
Name: Title:

	EXISTING SHAREHOLDERS:
LI Shi            ZHANG Xin
as an individual            as an individual

	WANG Jiuchang
as an individual
HAIHUI DALIAN:
Dalian Haihui Sci-Tech Company Limited
By:
Name: Title:

 

 

Execution Copy

SCHEDULE 1

Existing Shareholding Structure of Haihui Dalian

Total Registered Capital: RMB6,909,709

	 	 	 	 	 	 	 	 	 	 	 
	#	 	Name	 	Ownership %	 	Registered Capital	 	Contact Address
	1

	 	Ll Shi
	 	 	30	%	 	RMB2,072,913
	 	6/F, Haya Plaza, No. 1, Shangdi
	 

	 	PRC ID No. 110105196101272110
	 	 	 	 	 	 	 	East Road, Haidian District,
	 

	 	 	 	 	 	 	 	 	 	Beijing 100085, China
	 

	 	 	 	 	 	 	 	 	 	Fax: +86-10-5987-5588
	2

	 	ZHANG Xin
	 	 	35	%	 	RMB2,418,398
	 	6/F, Haya Plaza, No. 1, Shangdi
	 

	 	PRC ID No. 150202197311211218
	 	 	 	 	 	 	 	East Road, Haidian District,
	 

	 	 	 	 	 	 	 	 	 	Beijing 100085, China
	 

	 	 	 	 	 	 	 	 	 	Fax:+86-10-5987-5588
	3

	 	WANG Jiuchang
	 	 	35	%	 	RMB2,418,398
	 	No.33 Lixian Street, Hi-Tech
	 

	 	PRC ID No. 210211195210265835
	 	 	 	 	 	 	 	Zone, Dalian, China, 116023,
	 

	 	 	 	 	 	 	 	 	 	Fax:+86-0411-84791350

3rd Amended Equity Acquisition Option Agreement

 

 

Execution Copy

SCHEDULE 2

Original Shareholding Structure of Haihui Dalian

Total Registered Capital: RMB6,909,709

	 	 	 	 	 	 	 	 	 
	#	 	Name	 	Ownership %
	 	1	 	 	LI Yuanming 

	 	 	96	%
	 	 	 	 	PRC ID No.21021119560326581X
	 	 	 	 
	 	2	 	 	WANG Xingwei 

	 	 	1	%
	 	 	 	 	PRC ID No. 210602196308213515
	 	 	 	 
	 	3	 	 	TAN Jikui 

	 	 	1	%
	 	 	 	 	PRC ID No.210255700720029
	 	 	 	 
	 	4	 	 	WANG Zhuohong 

	 	 	1	%
	 	 	 	 	PRC ID No. 210211196606095822
	 	 	 	 
	 	5	 	 	HE Qing 

	 	 	1	%
	 	 	 	 	PRC ID No.220203196610013617
	 	 	 	 

3rd Amended Equity Acquisition Option Agreement

 

 

EXHIBIT A

Form of Exercise Notice

Date:

			
	To:	 	[insert name of relevant Existing Shareholder]

[insert address of relevant Existing Shareholder]

Dear Sir,

Notice of Exercise of Option regarding Equity Interest in Dalian
Haihui Sci-Tech Company Limited (“Haihui Dalian”)

Reference is made to the Third Amended Equity Acquisition Option Agreement (“Amended Equity
Acquisition Agreement”) dated [     ] between HiSoft Technology (Dalian) Co., Ltd. (the “Company”),
Haihui Dalian, you as one of the “Existing Shareholders” to the Third Amended Equity Acquisition
Agreement, and some other parties.

Words and expressions defined in the Amended Equity Acquisition Agreement have the same meanings
when used in this Exercise Notice.

In accordance with Section 1.2 of the Amended Equity Acquisition Agreement, we notify you
that we hereby:

          (a) exercise the Option; and

          (b) require you to sell us the following number of shares of Haihui Dalian currently held by
you:

     
[insert number] shares representing
[insert percentage] % of
total share capital of Haihui Dalian.

Cordially,

HiSoft Technology (Dalian) Co., Ltd.

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Copy: Dalian Haihui Sci-Tech Company Limited

3rd Amended Equity Acquisition Option Agreement

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