Document:

exv4w5

 

Exhibit 4.5

Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

Shenyang Brilliance JinBei Automobile Co., Ltd.

Joint Venture Contract

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

Table of Contents

	 	 	 	 	 	 	 	 	 
	ARTICLE 1.	 	PARTIES OT THE JOINT VENTURE
	 	 	4	 
	ARTICLE 2.	 	ESTABLISHMENT OF JOINT VENTURE COMPANY
	 	 	5	 
	ARTICLE 3.	 	PURPOSE OF JVCO
	 	 	5	 
	ARTICLE 4.	 	SCOPE OF BUSINESS OF JVCO
	 	 	5	 
	ARTICLE 5.	 	PRODUCT LINES OF THE JOINT VENTURE COMPANY
	 	 	6	 
	ARTICLE 6.	 	TOTAL INVESTMENT
	 	 	6	 
	ARTICLE 7.	 	REGISTERED CAPITAL OF JVCO
	 	 	6	 
	ARTICLE 8.	 	INVESTMENT BY EACH PARTY
	 	 	6	 
	ARTICLE 9.	 	BOARD OF DIRECTORS
	 	 	7	 
	ARTICLE 10.	 	BUSINESS MANAGEMENT ORGANIZATION
	 	 	9	 
	ARTICLE 11.	 	PROCUREMENT
	 	 	10	 
	ARTICLE 12.	 	EXPORT AND FOREIGN EXCHANGE BALANCE
	 	 	10	 
	ARTICLE 13.	 	DOMESTIC SALES
	 	 	11	 
	ARTICLE 14.	 	TRADE MARK
	 	 	11	 
	ARTICLE 15.	 	TERM OF THE JOINT VENTURE AND ITS EXTENSION
	 	 	11	 
	ARTICLE 16.	 	LABOR MANAGEMENT AND SALARIES
	 	 	12	 
	ARTICLE 17.	 	USE OF SITE
	 	 	12	 
	ARTICLE 18.	 	FINANCE AND ACCOUNTING
	 	 	13	 
	ARTICLE 19.	 	DISTRIBUTION OF PROFITS AND SHARING OF RISKS
	 	 	13	 
	ARTICLE 20.	 	AUDIT
	 	 	14	 
	ARTICLE 21.	 	TRANSFER OF PAID-IN CAPITAL CONTRIBUTION
	 	 	14	 
	ARTICLE 22.	 	EARLY TERMINATION OF THE CONTRACT AND EARLY
DISSOLUTION OF JVCO
	 	 	14	 
	ARTICLE 23.	 	LIQUIDATION
	 	 	15	 
	ARTICLE 24.	 	SETTLEMENT OF DISPUTES
	 	 	16	 
	ARTICLE 25.	 	APPLICABLE LAW
	 	 	16	 
	ARTICLE 26.	 	FAVORABLE TREATMENT
	 	 	16	 
	ARTICLE 27.	 	TAXES
	 	 	17	 

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	 	 	 	 	 	 	 	 	 
	ARTICLE 28.	 	FORCE MAJEURE
	 	 	17	 
	ARTICLE 29.	 	INSURANCE
	 	 	18	 
	ARTICLE 30.	 	SUPPLIES PROVIDED BY JINBEI
	 	 	18	 
	ARTICLE 31.	 	WORKERS’ UNION
	 	 	18	 
	ARTICLE 32.	 	MISCELLANEOUS
	 	 	19	 

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

Recital

This contract is made on this day of July 16, 1991 by and between Shenyang
JinBei Automotive Company Limited (hereafter referred to as JinBei) and
Brilliance China Automotive Holdings Limited (hereinafter referred to as
“Brilliance China”).

In accordance with the “Law of the People’s Republic of China on Sino-foreign
Joint Ventures”, the implementing rules thereof, and other relevant Chinese
laws and regulations, Jinbei and Brilliance China, adhering to the principle of
equality and mutual benefit and through friendly consultations, agree to
jointly invest in and set up a joint venture enterprise (“JVCO”) in Shenyang
City, Liaoning Province, People’s Republic of China. JVCO will engage in the
manufacture, sales and after sales services of automobiles and automobile
components using advanced technologies and equipment and under modern
management.

Therefore, JinBei and Brilliance China formulate this Contract according to the
following terms and conditions:

ARTICLE 1. PARTIES OT THE JOINT VENTURE

	1.1	 	 Parties to this Contract are the parties to JVCO which are as follows:

	 	1.1.1 	 	JinBei, a company created and existing under the laws of the
People’s Republic of China.

	 	 	 	 	 
	 	 	
Registration Authority:
	 	Administration of Industry and Commence of
Shenyang City, Liaoning Province, PRC (Business License
Registration No. 2101001104352(1-1)),
	 	 	 	 	 
	 	 	
Legal address:
	 	No. 38, Wangliutang Road, Shenhe
District, Shenyang City, Liaoning Province, PRC
	 	 	 	 	 
	 	 	
Legal representative:	 	 
	 	 	
Name:
	 	He Guo Hua
	 	 	
Position:
	 	Chairman of the Board
	 	 	
Nationality:
	 	China

	 	1.1.2 	 	Brilliance China, a company organized and existing under the
laws of Bermuda.

	 	 	 	 	 
	 	 	
Registration Number:
	 	BC-17455
	 	 	 	 	 
	 	 	
Principal place of business:
	 	Suites 2303-06, 23rd Floor, Great

Eagle Centre, 23 Harbour Road, Wanchai, Hong Kong
	 	 	 	 	 
	 	 	
Legal representative:	 	 
	 	 	
Name:
	 	Wu Xiao An
	 	 	
Position:
	 	Chairman of the Board

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	 	 	 	 	 
	 	 	
Nationality:
	 	China

	1.2	 	 JinBei and Brilliance China hereby confirm that their respective legal
representative above is authorized to sign this Contract and that JinBei
and Brilliance China have the capability to perform this Contract.

ARTICLE 2. ESTABLISHMENT OF JVCO

	2.1	 	 JinBei and Brilliance agree to set up JVCO in accordance with the “Law of
the People’s Republic of China on Sino-foreign Joint Ventures”, the
implementing rules thereof and other relevant Chinese laws and
regulations.
	 
	 	 	JVCO is duly established and becomes a legal person on the date of
issuance of JVCO business license. All activities of JVCO shall be in
compliance with and protected by the laws and regulations of the People’s
Republic of China.
	 
	2.2	 	 The name of JVCO in English is Shenyang Brilliance JinBei Automobile Co.,
Ltd..

The
name of JVCO in Chinese is Shenyang Huachen Jinbei Qiche Youxian
Zeren
Gongsi.

	 	 	The legal address of JVCO is at No. 14, Shanzuizi Street, Dadong
District, Shenyang City, Liaoning Province, China.
	 
	2.3	 	 JVCO is organized as a limited liability company. All liabilities of
JVCO are assured against its total assets. Each Party to JVCO is liable
for the debt of JVCO up to the capital contribution it subscribed. The
profits, risks and losses of JVCO shall be shared by the Parties in
proportion to their contribution to the registered capital.
	 
	2.4	 	The Article of Association of JVCO will be signed by the Parties in
concurrence with the signing of this Contract. This Contract and the
Articles of Association will become effective upon the approval by the
Ministry of Foreign Trade and Economic Cooperation.

ARTICLE 3. PURPOSE OF JVCO

     JVCO shall produce the optimal economic benefits, enhance the economic
growth and provide tax benefit to the State as well as creating investment
return for the Parties of JVCO through scientific and efficient utilization of
the assets contributed to JVCO by the Parties.

ARTICLE 4. SCOPE OF BUSINESS OF JVCO

     JVCO shall design and sell various light buses, sedans and components
thereof (including imported items) and provide after sales services; import or
purchase in domestic market the necessary production equipment and components
of light buses and sedans; refit various light buses and sedans and carry out
relevant technical consulting projects; engage in automobile sales and retail
in gas refill; conduct other economic activities related to the above mentioned
business operation.

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

ARTICLE 5. PRODUCT LINES OF JVCO

     During the term of this Contract, JVCO shall produce products approved by
relevant authorities of the state and other products that the Board of
Directors decides to produce based on the demand in the domestic and
international market.

ARTICLE 6. TOTAL INVESTMENT

	6.1 	 	The total investment of JVCO is US$ Five Hundred Seventy Million and Nine
Hundred and Eighty Thousand (US$ 570,980,000).
	 
	6.2	 	 Financing of the Total Investment
Sources of total investment are:

	 	•	 	Capital contributions subscribed by the Parties;
	 
	 	•	 	Loans raised by JVCO.

	6.3	 	JVCO may apply for bank loans based on actual needs. If guarantee is
required by the lending bank (hereinafter referred to as the “Lender”),
the Parties of JVCO shall provide counter-guarantee, in proportion to
their respective capital contribution, to such Lender or to other bank,
financial institutions or other organization, which have provided
guarantee to the Lender.

ARTICLE 7. REGISTERED CAPITAL OF JVCO

	7.1	 	 The registered capital JVCO is US$ Four Hundred Forty Four Million and
One Hundred and Sixty Thousand (US$ 444,160,000).
	 
	7.2	 	 JVCO may increase its registered capital with written consent of the
Parties and approval by the Board of Directors of JVCO.
	 
	7.3	 	 The registered capital of JVCO shall not be reduced during the term of
this Contract.

ARTICLE 8.INVESTMENT BY EACH PARTY

	8.1	 	 Amount, percentage and means of investment by each party are as follows:

	 	•	 	The total amount of investment by JinBei shall be US$ Two
Hundred and Seventeen Million, Six Hundred and Thirty Eight Thousand
and Four Hundred (US Dollars 217,638,400). If the contribution is
made in the form of RMB cash equivalent or assets in kind, such RMB
cash shall be converted into US dollars according to the foreign
exchange rate published by the State Administration of Foreign
Exchange on the date of payment of such contribution, which
contribution represents 49% of the registered capital.

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	 	•	 	The total amount of investment by Brilliance China shall be
US$ Two Hundred Twenty Six Million, Five Hundred Twenty One Thousand
and Six Hundred (US$ 226,521,600), representing 51% of the
registered capital.

	8.2	 	 Each Party shall be deemed to have made its contribution when such Party
has transferred its cash contribution in cash fund into the RMB and/or
foreign exchange band accounts opened by JVCO with Shenyang Branch of Bank
of China.
	 
	 	 	Upon the receipt of capital contributions paid by the Parties according
to the provisions of this Article, JVCO shall retain an accountant
registered in PRC to verify the contributions and issue a capital
verification report to JVCO. JVCO shall issue a contribution certificate
to each Party within 30 days of receipt of the capital verification
report.
	 
	8.3	 	 Unless otherwise required by the Board of Directors (or contrary to PRC
laws and regulations), the Parties may dispose of its capital contribution
according to the relevant provisions of the Articles of Association of
JVCO.

ARTICLE 9. BOARD OF DIRECTORS

	9.1	 	 JVCO shall establish a Board of Directors. The Board of Directors shall
be the highest authority of JVCO. The Board of Directors shall have the
authority to make decision on all material matters of JVCO and shall be
responsible for the overall control and management of JVCO.
	 
	9.2	 	 The Board of Directors shall comprise 10 Directors appointed by JinBei
and Brilliance China, of whom seven shall be appointed by Brilliance China
and three shall be appointed by JinBei. There shall be one Chairman on
the Board who shall be appointed by Brilliance China and one Vice Chairman
who shall be appointed by JinBei.
	 
	 	 	Each Director, Chairman and Vice Chairman shall be appointed for a term
of 4 years and may serve consecutive term if reappointed by the Party
that originally appointed him. If there is a vacancy of seat on the
Board of Directors due to a Director’s failure to perform his duty for
any reason, the original appointing Party shall appoint a replacement as
soon as possible.
	 
	 	 	The Board of Directors shall consist of the following members:
	 
	 	 	Chairman:Su Qiang
	 
	 	 	Vice Chairman:He Guo Hua
	 
	 	 	Directors:
	 
	 	 	JinBei: He Guo Hua, Liu Zhi Gang, Zha Jian Ping
	 
	 	 	Brilliance China: Su Qiang, Wu Xiao An, Hong Xing, He Tao, Sun Dong,
Sheng Jun
	 
	9.3	 	 The Chairman of the Board is the legal representative of JVCO. The
Chairman of the Board shall convene and preside on the meetings of Board
of Directors, and exercise 

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	 	 	other rights vested in him by the Article of
Association of JVCO. In the event that the
Chairman is unable to exercise his responsibilities for any reason, the
Chairman may authorize the Vice Chairman or another Director to exercise
the responsibilities on behalf of the Chairman.
	 
	9.4 	 	All Parties agree that a Board meeting shall be held only when at least
two thirds of all Directors are present in the meeting in person or by
proxy. The Board of Directors of JVCO shall have the right to pass
resolutions on the following issues, provided however, such resolutions
require unanimous approval of all Directors who are present at the
meeting:

	 	•	 	Amendment of the Articles of Association of JVCO;
	 
	 	•	 	Termination, dissolution and extension of JVCO;
	 
	 	•	 	Increase of the registered capital of JVCO;
	 
	 	•	 	Merger of JVCO with other economic entities.

	 	 	Decisions on all other issues shall be made in accordance with discussion
procedures set forth in the Article of Association of JVCO.
	 
	 	 	No Board meetings shall be held and no resolutions shall be passed
failing a quorum for the Board meetings. The Chairman and the Vice
Chairman shall each have one vote.
	 
	 	 	Notwithstanding the provisions of this Article, the Parties agree that in
the event of special circumstances, which require prompt decisions
without any delay, to keep JVCO harmless from serious losses, the
Chairman and the Vice Chairman may make written decisions through
unanimous consent. Such decisions shall be approved by the subsequent
Board meeting.
	 
	9.5	 	 The Board of Directors shall convene two meetings every year, or one
meeting every year, if agreed by all Parties. The meetings of the Board
shall be held at the legal address of JVCO, or at other locations
designated by the Board of Directors. When necessary, the Chairman may
convene and preside on the interim Board meetings at the request of at
least one third of all Directors in writing.
	 
	9.6	 	 In accordance with the “Law of the People’s Republic of China on
Sino-foreign Joint Ventures”, the implementing rules thereof, and the
relevant regulations on the implementation thereof, the detailed
functions, power and working procedures of the Board of Directors shall be
set forth in the Article of Association of JVCO made and signed by the
Parties in concurrence with this Contract.
	 
	9.7	 	 The remuneration of the Directors or their proxies shall be determined by
the Board of Directors of the company and shall be paid by JVCO.
	 
	 	 	All expenses incurred by a Director or his proxy, or by the secretary of
the Board, which are directly related to the Board meetings (e.g.,
allowance, travel, accommodation, meals, banquets), shall be borne by
JVCO based the actual amount incurred.

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	9.8	 	 Complete and accurate minutes shall be prepared for every Board meeting,
including the photocopy of the notice of the Board meeting. All minutes
and resolutions signed by the Chairman or an authorized Director shall be
recorded and kept on file by the secretary designated by the Board of
Directors.
	 
	 	 	Minutes of the Board meetings shall cover the discussions on all issues
and the relevant resolutions, which shall be kept on file and maintained
in the minutes of meetings. Such minutes of meetings shall be available
to any Director or his proxy at his request for examination at any
reasonable time in photocopy of such signed minutes of meetings.
	 
	 	 	Appointment and removal of any member of the Board of Directors shall be
recorded in the minutes.

ARTICLE 10. BUSINESS MANAGEMENT ORGANIZATION

	10.1	 	 The President shall be responsible for JVCO under the direction of the
Board of Directors.
	 
	10.2	 	 JVCO shall have one President, several Vice Presidents, who will be
responsible for the daily operation and management of JVCO.
	 
	 	 	The President of JVCO shall implement the resolutions of the Board of
Directors, and shall organize and lead the daily operation and management
of JVCO. The President shall, within the authorization granted by the
Board of Directors, represent JVCO outside of the company and shall have
the right to appoint and remove personnel on positions below the Vice
President (excluding Vice President), and perform other duties assigned
by the Board of Directors. The specific duties of the Present shall be
set forth in the Articles of Association of JVCO.
	 
	 	 	The Vice Presidents shall assist the President in fulfilling his
responsibilities.
	 
	 	 	JVCO shall establish production and operation management departments
under the Vice Presidents, and shall have General Manager and several
Deputy General Managers for such departments; JVCO shall establish
various divisions under the Deputy General Mangers and shall have
division chief and several deputy division chiefs for such divisions.
JVCO may, based on the requirements of production and operation
management, establish relevant management organs under production and
operation management department and above various divisions.
	 
	10.3	 	 The President, Vice Presidents and the General Managers and Deputy
General Mangers subordinate to the Vice Presidents of JVCO shall not
concurrently serve in other economic organizations without the consent of
the Board of Directors, and shall not participate in any commercial
competition activities of other economic organizations against JVCO. The
President, Vice Presidents and the General Mangers and Deputy General
Mangers subordinate to the Vice Presidents of JVCO may be removed at any
time by resolution of the Board of Directors or decision of the President
for malpractice or dereliction of duty.

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	10.4	 	 Unless otherwise requested by the Board of Directors, the President of JVCO shall
submit a detailed report to the Board of Directors at least once a year. The President
shall prepare a comprehensive annual report, which shall include but not
limited to production, sales, financial issues, labor of the past twelve months and a
work plan for the coming year. Such report shall be submitted to the Board of Directors
for approval. In addition, the President shall be responsible for establishing various rules
and systems relating to daily operation activities
	 
	10.5	 	 JVCO shall adopt modern scientific management principles and concept
acceptable to the Parties in its management under the direction of the
President.

ARTICLE 11. PROCUREMENT

	11.1 	 	JVCO shall have the right to decide in its discretion to purchase
machinery and equipment, processing appliance, raw materials, fuel,
auxiliary items, transportation vehicles and office items (hereafter
referred to as Supplies) either in China or on the overseas market.
	 
	11.2	 	 Under the same conditions where the quality, prices, term of delivery,
terms of maintenance and after-sale services all meet the requirements of
JVCO, JVCO shall give priority to purchase manufacturing equipment,
processing appliance and auxiliary items of the Contract Products from
JinBei.
	 
	11.3 	 	The Contract Products, auxiliary sets and spare parts shall be inspected
according to the inspection procedures of JVCO and shall not be used in
the production of Contract Products unless they are found to be up to
standard in the inspection.
	 
	11.4 	 	The assembly lines, equipment and processing appliance shall be purchased
by JVCO from domestic or international markets by itself. The vendors
that provide the said assembly lines, equipment and appliance must ensure
the competitiveness of the equipment such provided in terms of technology,
prices and term of delivery.

ARTICLE 12. EXPORT AND FOREIGN EXCHANGE BALANCE

	12.1	 	 The Parties acknowledge that foreign exchange balance is a key issue and
the Parties shall do their best to assist JVCO in increasing the variety
and quantities of products exported so as to achieve foreign exchange
balance.
	 
	12.2	 	 In the event of foreign exchange unbalance, the Parties shall do their
best to assist JVCO to in making up the foreign exchange shortfall:

	 	•	 	Brilliance China shall assist JVCO in developing
international market and expanding export.
	 
	 	•	 	JinBei shall assist JVCO in foreign exchange swap with
Chinese National Foreign Exchange Swap Center and/or with other
Chinese enterprises.
	 
	 	•	 	JinBei shall assist JVCO with formalities of “accounting for
import with production” with relevant authorities to enable JVCO to
receive foreign exchange

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	 	 	or assist JVCO in purchasing domestic products for export to make up
the difference in accordance with related Chinese regulations.

	12.3	 	 JVCO may export the products it produces at its discretion, or entrust
the sale on commission basis or the distribution of the products with the
trading companies established by the Parties in China or their overseas
sales institutions.

ARTICLE 13. DOMESTIC SALES

	13.1	 	 The sale prices to domestic buyers shall be decided in accordance with
the price policies stipulated by the State Administration of Price Control
of the People’s Republic of China as well as market conditions.
	 
	13.2	 	 The Parties agree: the Contract Products produced by JVCO may be sold by
JVCO and JVCO shall be responsible for providing after sales services in
PRC (except for Hong Kong, Macao and Taiwan province or regions) to
customers, which make payments with RMB.
	 
	 	 	After-sales services include:

	 	•	 	Domestic transportation;
	 
	 	•	 	Warehousing;
	 
	 	•	 	Sales network management;
	 
	 	•	 	Customer follow-up services;
	 
	 	•	 	Guarantee;
	 
	 	•	 	Training on sales and maintenance;
	 
	 	•	 	Supplemental service.

ARTICLE 14. TRADE MARK

     JVCO may use trademarks registered in China by JinBei for all Contract
Products without any additional payment. JVCO’s use of JinBei’s trademarks
shall be in compliance with the requirements of JinBei.

ARTICLE 15. TERM OF JVCO AND ITS EXTENSION

     The Parties agree that there is no term for JVCO. Unless the Joint
Venture Contract is terminated and JVCO is dissolved according to the relevant
provisions of the Articles of Association of JVCO and the Joint Venture
Contract, JVCO shall exist for a perpetual term, which shall commence as of the
date of issuance of Business License of JVCO.

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

ARTICLE 16. LABOR MANAGEMENT AND SALARIES

	16.1 	 	JVCO shall formulate the labor management rules in accordance with the
“Regulations of the People’s Republic of China on Labor Management in
Sino-foreign Joint Ventures”, the implementing rules thereof, and the
implementing rules thereof and the relevant laws and regulations. All
issues such as recruitment, employment, dismissal, resignation, wages,
welfare, labor insurance, labor protection, labor safety and labor
discipline shall be handled according to such labor management rules.
	 
	16.2	 	 JVCO shall prepare and implement staffing plans which shall include the
number and the qualification requirements of various personnel needed by
JVCO. Once approved by the President, such plans shall be used in the
independent recruitment by JVCO and shall be submitted to the relevant
authorities.
	 
	16.3	 	 JVCO shall strengthen the occupational technical training of the
employees, and shall establish strict examination system to ensure that
the employees meet the requirements of modernization in production and
management skills.
	 
	16.4	 	 JVCO shall enter into labor contracts with individual PRC employees.
Such contracts shall be in compliance with the conditions and terms
provided by relevant labor administrative authorities.
	 
	16.5 	 	JVCO shall enter into employment contracts with individual foreign
employees. Such contracts shall be in compliance with the conditions
provided in the relevant administrative regulations.
	 
	16.6	 	 In the recruitment, JVCO shall employ the recruited personnel according
to their qualification and capability.
	 
	16.7 	 	The salary level of the JVCO employees shall be determined by the
President based on the principle that the salary level shall be no lower
than similar joint ventures in auto industry. The salary and bonus system
shall be based on the principle of allocation according to work done, and
work-more-paid-more.
	 
	16.8	 	 The remunerations of officers of JVCO shall be determined by the Board of
Directors, and the remunerations of other personnel shall be determined by
the President of JVCO. The officers of JVCO shall mean the Directors,
President and Vice Presidents of JVCO.
	 
	16.9 	 	The President may grant bonuses to personnel on positions lower than the
Vice President (excluding Vice President) every year according to the
rules of JVCO. Bonuses granted to the employees and managers in whatever
form shall all serve as an incentive, and shall be granted based on the
actual performance of the employees and managers.

ARTICLE 17. USE OF SITE

     JVCO shall under take formalities and pay the relevant fees with respect
to the use of the site according to the provisions in the Implementing Rules of
the Law of the People’s Republic of China on Sino-foreign Joint Venture,
Regulations of the State Council on

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

 Encouraging Foreign Investment and the Regulations of Shenyang Municipal
People’s Government on Encouraging Foreign Investment.

ARTICLE 18. FINANCE AND ACCOUNTING

	18.1	 	 The financial and accounting issues shall be handled in accordance with
the finance and accounting regulations and rules for sino-foreign joint
ventures in PRC. If there is no applicable PRC law and regulation that
covers a specific accounting issue, JVCO may handle such issue with
reference to international accounting principles, provided however, JVCO
shall ensure that such referenced international accounting principles are
not in conflict with the relevant accounting regulations of PRC.
	 
	18.2 	 	JVCO shall adopt the internationally accepted debit and credit book
keeping on accrual basis. JVCO shall prepare all vouchers, books and
reports and shall print the same in Chinese.
	 
	 	 	JVCO shall submit its monthly, quarterly and annual balance sheet, profit
and loss statement and other supplementary information to the Parties of
JVCO.
	 
	18.3 	 	The fiscal year of JVCO shall be the calendar year, commencing on January
1 and ending on December 31 of each calendar year.
	 
	18.4 	 	In principle, JVCO shall adopt RMB as the standard bookkeeping currency,
and shall actively seek to evolve an accounting system using US Dollars as
standard bookkeeping currency.
	 
	18.5	 	 JVCO shall open its bank accounts with Bank of China Shenyang Branch or
with other banks in PRC approved by PRC State Administration of Foreign
Exchange. Based on the recommendation of the Board of Directors, JVCO may
also open its bank accounts with banks outside of PRC approved by PRC
State Administration of Foreign Exchange or its branches.

ARTICLE 19. DISTRIBUTION OF PROFITS AND SHARING OF RISKS

	19.1	 	 JVCO shall first pay income tax on the profits received by JVCO according
to the PRC Income Tax Law on Sino-foreign Joint Ventures, contribute to
the “Three Funds” from the after tax profits and then distribute the
remaining profits to the Parties to JVCO annually according to the ratio
of their contribution to the registered capital.
	 
	19.2	 	 The percentage of contribution to the Three Funds shall be determined by
the Board of Directors based on the status of the operation of each year
after the establishment of JVCO.
	 
	19.3	 	 Current year profits shall not be distributed before losses from previous
year have been made up. Undistributed profits of previous year may be
carried over to and distributed in current year.
	 
	19.4	 	 With the consent of the Board of Directors and the approval of approving
authorities, profits received by JVCO may be retained from distribution
and used in reinvestment to expand production.

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Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	19.5 	 	Lawful profits received by Brilliance China may be remitted to a bank
account outside of China designated by Brilliance China according to the
relevant regulations of PRC.

ARTICLE 20. AUDIT

	20.1 	 	The Parties to JVCO agree that the Board of Directors shall retain an
accountant registered in China, or a foreign accountant when necessary, to
conduct an outside audit on the income and expenditures and the accounts
of JVCO. The audit on the financial statements shall be conducted within
a reasonable period before the Board meeting is convened so that the Board
of Directors may review and approve such audit. The accounting firm to be
retained shall be determined by the Board of Directors.
	 
	20.2	 	 To facilitate the audit provided in this Article, JVCO shall, at the
reasonable request of the auditor retained by the Board of Directors, make
available necessary documents and accounts to such auditor.
	 
	20.3 	 	Each Party to JVCO may retain an auditor at its own costs to conduct an
audit on the accounts of JVCO on behalf of such Party. JVCO shall make
available the complete accounting books and records to such auditor,
provided that such auditors must keep such information confidential for
JVCO, and that such audit shall not affect the normal operation of JVCO.

ARTICLE 21. TRANSFER OF PAID-IN CAPITAL CONTRIBUTION

     If a Party to JVCO wishes to transfer its capital contribution, such Party
shall proceed with the transfer according to the provisions in the Articles of
Association.

ARTICLE 22. EARLY TERMINATION OF THE CONTRACT AND EARLY DISSOLUTION OF JVCO

	22.1 	 	This contract shall be terminated and JVCO shall be dissolved under the
following circumstances:

	 	a.	 	Either Party to JVCO shall have failed to perform the
obligations provided in this Contract and the Articles of
Association and such breach shall have persisted for a period of 90
days without correction and shall have caused JVCO’s inability to
operate; or in the reasonable opinion of the non-breaching Party,
the economic objective of the non-breaching Party shall have
suffered or the non-breaching Party shall have sustained material
risks of losses due to such breach;
	 
	 	b.	 	The purpose of JVCO shall have failed to be met and there
shall have been no future development for JVCO;
	 
	 	c.	 	A force majeure causing the failure of operation of JVCO
shall have occurred and shall have persisted for 180 days;
	 
	 	d.	 	Expropriation of all or material part of the assets of JVCO
or of either Party to JVCO;

14

 

Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	 	e.	 	One Party to JVCO shall have been actually excluded from the
Board of Directors by reason of the other Party;
	 
	 	f.	 	The foreign Party to JVCO wishes to transfer all of its
capital contribution, which is not agreed to by the Chinese Party
and therefore the Chinese Party needs to buy back the entire capital
contribution to be transferred by the foreign Party to JVCO;

	22.2	 	 In the event that this Contract is terminated and the assets of JVCO are
liquidated due to a breach, the breaching Party shall indemnified the
non-breaching Party and JVCO for all losses thus incurred.
	 
	 	 	However, without prejudice of the foregoing rights, if the breaching
Party so suggests, the other Party to JVCO shall use its best endeavors
to seek appropriate solutions. The Parties shall reach new terms and
conditions within 90 days if necessary and possible.
	 
	 	 	If no appropriate solution is reached within 90 days, the Board of
Directors shall convene a meeting to terminate this Contract according to
this Article 22, liquidate JVCO and dissolve JVCO.

ARTICLE 23. LIQUIDATION

	23.1	 	 If this Contract is terminated for any reason, the Board of Directors
shall establish a Liquidation Committee. The Liquidation Committee shall
have the right to handle all legal issues on behalf of JVCO during the
liquidation process. The Liquidation Committee shall appraise and
liquidate the assets of JVCO according to the applicable PRC laws and
regulations and the principles provided in this Contract.
	 
	23.2 	 	The Liquidation Committee shall prepare a liquidation plan, which shall
be approved unanimously by the Board of Directors and implemented
thereafter under the supervision of the Board of Directors.
	 
	23.3 	 	In the event that this Contract is terminated according to the provisions
of Article 22, Brilliance China shall have the right of first refusal to
purchase the assets of JVCO.
	 
	23.4	 	 In the event that this Contract is terminated due to a breach by a Party
to JVCO, the non-breaching Party shall have the right of first refusal to
purchase the assets of JVCO.
	 
	 	 	If the non-breaching Party fails to exercise such right of first refusal,
the breaching Party shall have the priority right to purchase assets of JVCO.
	 
	23.5	 	 In the event that both Parties fail to exercise such first right of
refusal according to the provisions of Articles 23.3 and 23.4, JVCO shall
consider transferring its assets in public bidding auction in PRC or
outside of PRC.
	 
	23.6 	 	The expenses of liquidation and the remuneration to the members of the
Liquidation Committee shall be paid prior to payment to other creditors.

15

 

Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

	23.7	 	 After the discharge of all debts of JVCO, the remaining assets of JVCO
shall be distributed to the Parties to JVCO in proportion to the capital
contribution they subscribe in the registered capital.
	 
	23.8	 	 After the completion of all liquidation proceedings, the Liquidation
Committee shall issue a final report, which shall be approved by the Board
of Directors unanimously, and shall be submitted to the relevant
authorities of PRC. The cancellation of registration shall be undertaken
with the Shenyang Municipal Administration of Industry and Commerce. The
Parties to JVCO shall have the right to receive photocopies of all
accounting books and other documents, provided that the original documents
shall be properly kept with JinBei.

ARTICLE 24. SETTLEMENT OF DISPUTES

	24.1	 	 In case of a dispute between the Parties to JVCO with respect to the
interpretation and the performance of this Contract and/or the Articles of
association, the Parties to JVCO shall use their best efforts to settle
the dispute through friendly consultation or conciliation. If the dispute
fails to be settled through consultation or conciliation within 90 days,
either Party may submit the dispute to the Arbitration Institute
of the Stockholm Chamber of Commerce for arbitration according to its
arbitral proceedings and rules in Stockholm in Sweden.
	 
	24.2	 	 The award of arbitration shall be final and binding upon the Parties of
the dispute. The Parties to the dispute shall treat the enforcement of
the arbitration award as an obligation under this contract, and shall
enforce such award without any delay.
	 
	24.3	 	 One Party or the other Party of the dispute shall bear the expenses of
the arbitration according to the provisions set forth in the arbitration
award.
	 
	24.4	 	 During the course of the settlement of dispute, the Parties to JVCO shall
continue to perform other provisions of this Contract and the Articles of
Association of JVCO except for the portion under dispute.

ARTICLE 25. APPLICABLE LAW

     The execution, force, interpretation, performance and the settlement of
disputes of this Contract shall be governed by the PRC laws and regulations.

ARTICLE 26. FAVORABLE TREATMENT

     26.1 The Parties to JVCO shall use their best efforts to cause JVCO to be
entitled to various favorable treatments available under the laws,
regulations and rules promulgated by PRC central and local authorities.

     26.2 After this Contract becomes effective, if any existing laws, regulations,
interpretation or order is modified, amended, supplemented or revoked, and
the subsequent regulations are more favorable than the laws and
regulations applicable at the time of execution of this Contract, then
JVCO or the Parties to JVCO shall apply for the new favorable treatment as
soon as practicable, and shall use their best efforts to expedite the
approval of the said application.

16

 

Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

ARTICLE 27.TAXES

	27.1	 	 JVCO shall pay taxes according to the relevant PRC laws and regulations.
	 
	27.2	 	 The employees of JVCO shall pay personal income tax according to PRC Law
on Personal Income Tax.

ARTICLE 28. FORCE MAJEURE

	28.1	 	 A force majeure event shall mean an event which is unforeseeable by the
Parties at the time of execution of this Contract, and which is inevitable
and hampers the actual performance by the Parties. For the purpose of
this Contract, force majeure events shall include but not limited to
earthquake, war, fire, flood, storm and other events that are beyond the
control of the Parties to JVCO and that affect the normal performance of
this Contract.
	 
	28.2 	 	In the event that a force majeure event occurs and either Party to JVCO
fails to perform this Contract in full or in part, such Party may be
exempted from the performance of its obligations and may not be held
liable during the event of force majeure and the period in which the
result of such force majeure event persists. If the suspension of
performance of this Contract due to force majeure shall only apply to the
period in which the effect of such force majeure persists.
	 
	 	 	The Parties to JVCO shall use their best efforts to minimize the fore
majeure, especially the losses caused by the delay resulting from the
force majeure.
	 
	28.3	 	 In the event of the occurrence of a force majeure event, the Party which
encounters the force majeure event shall promptly notify the other Party
by post, telex, fax or telegram or by other means, and shall deliver to
the other Party a written material on such event (including the written
certification from the relevant government authorities and a description
of the cause of the delay of the performance of this Contract in full or
in part) within 15 days of the occurrence of such event. Such 15-day
period shall commence on the date of occurrence of the force majeure
event. If the notification fails to be served in the manner described
above, the Party that encounters the force majeure event shall promptly
loss its right to claim the occurrence of the force majeure event. The
Party that counters the force majeure event shall also have the obligation
to notify the other Party of the result of the force majeure within the
same period.
	 
	28.4 	 	If a force majeure event occurs, the Board of Directors shall convene a
meeting to decide whether this Contract or any related contract shall be
amended based on the effect such event has on the performance of this
Contract or other related contract.
	 
	28.5	 	 If the circumstances or consequences of the force majeure event cause
serious losses which results in JVCO’s inability to continue its
operation, and the Parties fail to identify satisfactory and fair
resolution, either Party may terminate this Contract without making any
indemnification or reimbursement according to the Implementing Rules of
the PRC Law on Sino-foreign Joint Ventures.

17

 

Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

ARTICLE 29. INSURANCE

     The insurances of JVCO shall be purchased in the name of JVCO from
People’s Insurance Company of China or other Chinese insurance institutions
that may be selected by the Board of Directors. The insured subject, coverage,
insured value and term of the insurance policy shall be decided by the Board of
Directors based on the requirements of the insurance company from which the
insurance policy is purchased.

ARTICLE 30. SUPPLIES PROVIDED BY JINBEI

     To ensure the normal production and business operation of JVCO, JinBei
agrees that JVCO may lease part of office facilities, factory premises and
production equipment and processing appliance from JinBei. Terms and
conditions on the expenses related to such lease shall be covered by an
agreement or contract formulated by JinBei and JVCO through consultation.

ARTICLE 31. WORKERS’ UNION

	31.1	 	 The employees of JVCO will establish a trade union according to the PRC
Law on Trade Union and the Articles of Association of All-China Federation
of Trade Union. The union representatives of JVCO shall defend the
democratic rights and material rights of the employees.
	 
	31.2 	 	JVCO shall allocate monthly an amount equal to 2% of the aggregate
salaries of all employees as the union fund, and shall provide the union
with necessary buildings and facilities to support the operation, meetings
and the conduct of welfare, cultural and sports courses by the union.
	 
	31.3	 	 JVCO acknowledges that the union shall have the right to supervise the
performance of the labor contracts entered into by the employees and JVCO.
	 
	31.4	 	 The trade union of JVCO shall conduct its activities according to PRC
laws and regulations. The representatives of the union shall have the
right to be present at the meetings of the Board of Directors on
development plans, and other material issues on production and business
operation to reflect the requirements of the employees and to put forward
proposals on projects in development plans and activities in production
and business operation.
	 
	31.5	 	 The trade union shall assist JVCO to arrange and scientifically utilize
welfare and bonus funds. When making decisions on issues related to
incentive and discipline of employees, salary systems, welfare, labor
safety and labor insurance, etc., the Board of Directors shall listen to
and adopt reasonable suggestions of the trade union and obtain the
cooperation of the trade union.
	 
	31.6	 	 The trade union of JVCO shall organize the employees to study political,
occupational, scientific and technical knowledge, carry out cultural,
entertainment and sporting activities and shall educate the employees to
abide by the labor discipline and to accomplish various economic targets
of JVCO with best efforts.

18

 

Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

ARTICLE 32. MISCELLANEOUS

	32.1	 	 This Contract and its attachments and annexes shall not be amended unless
agreed by the Parties to JVCO through the execution of a written agreement
and such amendments shall be approved by the original approving
authorities of this Contract to become effective.
	 
	32.2	 	 In the event that a force majeure event causes material losses to JVCO or
the failure to perform this Contract, the term of JVCO may be terminated
with the unanimous consent of the Board of Directors and the approval of
the original approving authorities.
	 
	32.3	 	 If a Party’s failure to perform its obligations set forth in this
Contract and the Articles of Association of JVCO, or its material breach
of the terms of this Contract and the Articles of Association results in
JVCO’s inability to operate or to achieve the purpose of the business
operation, such Party shall be deemed to have terminated this Contract
unilaterally. Subject to the approval by the original approving
authorities, the other Party to JVCO shall have the right to terminate
this Contract according to the terms herein and claim damages. Upon the
occurrence of the above circumstances, if the Parties to JVCO agree to
continue the operation of JVCO, the breaching Party shall indemnify JVCO
for the economic losses resulting from its breach of contract.
	 
	32.4 	 	Any notice or communication to any Party to JVCO (i) shall be deemed to
have been made upon the receipt of return confirmation when delivered by
registered mail to the address listed in Article 2 of this Contract or
other address as notified by such Party, and (ii) shall be deemed to have
been effectively delivered to the address set forth in Article 2 of this
Contract upon the provision of evidence up to the standard when
transmitted by other means. Any notice or communication relating to
material issues on the performance of this Contract shall be deemed to
have been made on the date of transmission if transmitted by telex, fax,
telegram or other similar telecommunication.

19

 

Translated from Chinese

	 	 	 
	Brilliance Jinbei Joint Venture Contract	 	
Amended in 2003

     This Contract is signed in five originals both in Chinese and English.
Both language versions shall have the same force. In the case of conflict
between the two language versions, the Chinese version shall prevail.

     IN WITNESS WHEREOF, this Contract is amended by the Parties to JVCO on
February 26, 2003 in Shenyang City, PRC.

     Shenyang JinBei Automotive Company Limited

     (Seal)

     By:     /s/ He Guo Hua     

Representative

Brilliance China Automotive Holdings Limited

     (Seal)

     By:     /s/ Wu Xiao An     

Representative

20exv4w6

Table of Contents

Exhibit 4.6

Dated the 28th day of June 2002

BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED

SHARE OPTION SCHEME

Adopted on 28 June 2002

Certified by :

/s/ Wu Xiao An

Wu Xiao An

Director

 

TABLE OF CONTENTS

									
	AMENDMENT TO BYE-LAWS OF BRILLIANCE CHINA
	AGREEMENT, DATED DECEMBER 1,2002
	JOINT VENTURE CONTRACT DATED MARCH 27,2003
	AGREEMENT DATED APRIL 28, 2003
	CAPITAL INCREASE AGREEMENT
	AMENDED JOINT VENTURE AGREEMENT
	SHARE OPTION SCHEME OF BRILLIANCE CHINA
	STATEMENTS EXPLAINING HOW RATIOS CALCULATED
	LIST OF SIGNIFICANT SUBSIDIARIES
	SECTION 906 CERTIFICATION FROM CEO
	SECTION 906 CERTIFICATION FROM CEO
	AMENDMENT TO ARTICLES OF ASSOCIATION

Table of Contents

CONTENT

	 	 	 	 	 	 	 	 	 
	Clause	 	Heading	 	Page
	
	 	
	 	

	 	1.	 	 	Definitions
	 	 	1	 
	 	2.	 	 	Conditions
	 	 	3	 
	 	3.	 	 	Purpose, Duration And Administration
	 	 	3	 
	 	4.	 	 	Grant Of Options
	 	 	4	 
	 	5.	 	 	Subscription Price
	 	 	6	 
	 	6.	 	 	Exercise Of Options
	 	 	6	 
	 	7.	 	 	Lapse Of Option
	 	 	8	 
	 	8.	 	 	Maximum Number Of Shares Available For Subscription
	 	 	9	 
	 	9.	 	 	Reorganisation Of Capital Structure
	 	 	10	 
	 	10.	 	 	Share Capital
	 	 	11	 
	 	11.	 	 	Disputes
	 	 	11	 
	 	12.	 	 	Alteration Of The Scheme
	 	 	11	 
	 	13.	 	 	Termination
	 	 	12	 
	 	14.	 	 	Cancellation of Options
	 	 	12	 
	 	15.	 	 	Miscellaneous
	 	 	13	 

i

Table of Contents

BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED

SHARE OPTION SCHEME

1. DEFINITIONS

	1.01	 	In this Scheme the following expressions have the following meanings.

	 	 	 
	"Adoption Date”	 	
means 28 June 2002, the date on which the Scheme is
conditionally adopted by the Company at a general meeting of
the Shareholders;
	 	 	 
	"Associates”	 	
has the meaning ascribed thereto in Rule 1.01 of the Listing
Rules;
	 	 	 
	"Auditors”
"Board”	 	
means the auditors for the time being of the Company;
means the board of directors of the Company or a duly
authorised committee thereof;
	 	 	 
	"Business Day”	 	
means a day (other than Saturday and days on which a tropical
cyclone warning No.8 or above or a “black rainstorm warning
signal” is hoisted in Hong Kong at any time between 9:00 a.m.
and 5:00 p.m.) on which banks are open in Hong Kong for
general banking business;
	 	 	 
	“Companies Act”	 	
means the Companies Act 1981 of Bermuda (as amended);
	 	 	 
	“Company”	 	
means Brilliance China Automotive Holdings Limited
, an exempted company incorporated
in Bermuda with limited liability;
	 	 	 
	“Connected Person”	 	
has the meaning ascribed thereto in the Listing Rules;
	 	 	 
	"Eligible Employees”	 	
means any employee of or any person to whom any offer of
employment has been made (whether full time or part time
employee, including any executive directors but not any
non-executive director) by the Company, its Subsidiaries and
any Invested Entity;
	 	 	 
	"Exchanges”	 	
means The New York Stock Exchange, Inc and The Stock Exchange
of Hong Kong Limited;
	 	 	 
	"Grantee”	 	
means any Participant who accepts the offer of the grant of
any Option in accordance with the terms of the Scheme or
(where the context so permits) a person entitled to any such
Option in consequence of the death of the original Grantee;
	 	 	 
	"Group”	 	
means the Company and its Subsidiaries from time to time;
	 	 	 
	“HKSE”	 	
means The Stock Exchange of Hong Kong Limited;
	 	 	 
	"Hong Kong”	 	
means the Hong Kong Special Administrative Region of the
People’s Republic of China;

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Table of Contents

	 	 	 
	“Invested Entity”	 	
means any entity in which the Group holds any equity interest;
	 	 	 
	“Listing Rules”	 	
means the Rules Governing the Listing of Securities on the
HKSE (as amended from time to time);
	 	 	 
	“Offer Date”	 	
means the date on which the Board passes a resolution
approving the making of a grant of an Option to a
Participant;
	 	 	 
	“Option”	 	
means an option to subscribe for Shares granted pursuant to
the Scheme;
	 	 	 
	“Option Period”	 	in respect of any particular Option, such period as the Board may in its
absolute discretion determine, save that such period shall not be more
than ten (10) years from the date of grant of the Option and that the Board
may at its discretion determine the minimum period for which the Option
has to be held before the exercise of the subscription right attaching
thereto;
	 	 	 
	“Participant”	 	
means any person belonging to any of the following
classes of participants :
	 	 	 
	 	 	(aa)  any Eligible Employee;

	 	 	 
	 	 	(bb)  any non-executive director (including
independent non-executive directors) of the Company, any of its Subsidiaries or any Invested Entity;

	 	 	 
	 	 	(cc)  any supplier of goods or services to any member
of the Group or any Invested Entity;

	 	 	 
	 	 	(dd)  any customer of the Group or any Invested Entity;

	 	 	 
	 	 	(ee)  any person or entity acing in their capacities
as advisers or consultants that provides research,
development or other technological support to the
Group or any Invested Entity; and

	 	 	 
	 	 	(ff)   any shareholder of any member of the Group or
any Invested Entity or any holder of any securities
issued by any member of the Group or any Invested
Entity determined by the directors of the Company as
having contributed or may contribute to the
development and growth of the Group and any Invested
Entity.

	 	 	 
	“Scheme”	 	means this share option scheme in its present or any
amended form;
	 	 	 
	"Shares”	 	
means shares of US$0.01 each (or of such other
nominal amount as shall result from a sub-division,
consolidation, re-classification or re-construction
of such shares from time to time) in the share
capital of the Company;
	 	 	 
	“Shareholders”	 	
means the holders of Shares;
	 	 	 
	“Subscription Price”	 	
means the price per Share at which a Grantee may
subscribe for Shares on the exercise of an Option as
described in Clause 5;
	 	 	 
	“trading day”	 	
means a day on which the HKSE is open for the trading
of securities;
	 	 	 
	“HK$”	 	
Hong Kong dollars; and
	 	 	 
	“US$”	 	
United States dollars.

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	1.02	 	In this Scheme, save as where the context otherwise requires :

	 	(a)	 	clause headings are inserted for convenience of reference
only and shall be ignored in the interpretation of the Scheme;
	 
	 	(b)	 	references herein to Clauses are to clauses of this Scheme;
	 
	 	(c)	 	references to any statute or statutory provision shall be
construed as references to such statute or statutory provision as
respectively amended, consolidated or re-enacted, or as its
operation is modified by any other statute or statutory provision
(whether with or without modification), and shall include any
subsidiary legislation enacted under the relevant statute;
	 
	 	(d)	 	expressions in singular shall include the plural and vice
versa;
	 
	 	(e)	 	expressions in any gender shall include other genders;
	 
	 	(f)	 	references to persons shall include bodies corporate,
corporations, partnerships, sole proprietorships, organisations,
associations, enterprises, branches and entities of any other kind;
and
	 
	 	(g)	 	references to “date of grant” shall be construed as the Offer
Date.

2. CONDITIONS

	2.01	 	This Scheme shall take effect subject to the passing of the resolution of
Shareholders of the Company to adopt the Scheme and is conditional upon :

	 	(a)	 	the listing committee of the HKSE granting approval of
listing of, and permission to deal in, the Shares to be allotted and
issued pursuant to the exercise of the subscription rights attaching
to the Options under this Scheme; and
	 
	 	(b)	 	if applicable, the Bermuda Monetary Authority granting
approval of this Scheme and the subsequent granting of Options under
this Scheme and the issue and allotment of Shares upon the exercise
of the subscription rights attaching to the Options.

	2.02	 	If the above conditions are not satisfied on or before 31 July 2002, the
Scheme shall forthwith determine and no person shall be entitled to any
rights or benefits or be under any obligations under or in respect of the
Scheme.
	 
	2.03	 	Reference in Clause 2.01 to the HKSE formally granting the approvals,
listing and permission referred to therein shall include any such
approvals, listing and permission which are granted subject to conditions.
	 
	2.04	 	A certificate of the Board to the effect that the conditions set out in
Clause 2.01 have been satisfied and the date on which such conditions were
satisfied or that any such condition has not been satisfied as of any
particular date shall be conclusive evidence of the matters certified.

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Table of Contents

3. PURPOSE, DURATION AND ADMINISTRATION

	3.01	 	The purpose of this Scheme is to provide incentives or rewards to
Participants thereunder for
their contribution to the Group and / or to enable the Group to recruit
and retain high-calibre employees and attract human resources that are
valuable to the Group and any Invested Entity.
	 
	3.02	 	Subject to Clause 13, the Scheme shall be valid and effective for a period of
ten (10) years commencing on the date on which the condition set out in
Clause 2.01 is satisfied, after which period no further Options will be
granted but the provisions of this Scheme shall remain in full force and
effect in all other respects. Options complying with the provisions of the
Listing Rules which are granted during the duration of this Scheme and
remain unexercised immediately prior to the end of the ten-year period
shall continue to be exercisable in accordance with their terms of grant
within the Option Period for which such Option are granted,
notwithstanding the expiry of this Scheme.
	 
	3.03	 	The Scheme shall be subject to the administration of the Board (including
the independent non-executive directors) whose decision (save as otherwise
provided herein) shall be final and binding on all parties.

4. GRANT OF OPTIONS

	4.01	 	On and subject to the terms of the Scheme, the Board shall be entitled at
any time and from time to time within ten (10) years after the Adoption
Date to offer to grant to any Participant as the Board may in its absolute
discretion select, and subject to such conditions as the Board may think
fit, an Option to subscribe for such number of Shares as the Board may
determine at the Subscription Price. For the purposes of the Scheme,
Options may be granted to any company wholly owned by one or more persons
belonging to any of the Participants or any discretionary object of a
Participant which is a discretionary trust. For the avoidance of doubt,
the grant of any Options by the Company for the subscription of Shares or
other securities of the Group to any person who falls within any of the
classes of Participants shall not, by itself, unless the Directors
otherwise determine, be construed as a grant of Options under this Scheme.
The basis of eligibility of any of the above class of participants to the
grant of any options shall be determined by the Directors from time to
time on the basis of their contribution to the development and growth of
the Group and any Invested Entity.
	 
	4.02	 	No offer of grant of Options shall be made after a price sensitive
development has occurred or a price sensitive matter has been the subject
of a decision until such price sensitive information has been published in
the newspapers. In particular, during the period of one month immediately
preceding the earlier of (i) the date of the board meeting (as such is
first notified to the HKSE in accordance with the terms of the listing
agreement) for approval of the interim or annual results; and (ii) the
deadline for publishing the interim or annual results of the Company under
the listing agreement with the HKSE, and ending on the date of the
announcement of the results, no Option should be granted. The Board may
not grant any Option to a Participant who is a Director during the periods
or times in which Directors are prohibited from dealing in shares pursuant
to the Model Code for Securities Transactions by Directors of Listed
Companies prescribed by the Listing Rules or any corresponding code or
securities dealing restrictions adopted by the Company.
	 
	4.03	 	An offer of the grant of an Option shall be made to a Participant by
letter in such form as the Board may from time to time determine requiring
the Participant to undertake to hold the Option on the terms on which it
is to be granted and to be bound by the provisions of the 

4

Table of Contents

	 	 	Scheme and shall
remain open for acceptance by the Participant concerned for a period of
twenty-eight (28) days from the date upon which it is made provided that
no such offer shall be open for acceptance after the tenth anniversary of
the Adoption Date or after this Scheme
has been terminated.
	 
	4.04	 	An Option shall be deemed to have been granted and to have taken effect
(with retrospective effect from the Offer Date) when the duplicate letter
comprising acceptance of the Option duly signed by the Grantee with the
number of Shares in respect of which the offer of grant is accepted
clearly stated therein, together with a remittance in favour of the
Company of HK$1.00 by way of consideration for the grant thereof is
received by the Company. Such remittance shall in no circumstances be
refundable.
	 
	4.05	 	Any offer of the grant of an Option may be accepted in respect of less
than the number of Shares in respect of which it is offered provided that
it is accepted in respect of such number of Shares as represents a board
lot for the time being for the purposes of trading on the Exchanges or an
integral multiple thereof. To the extent that the offer of the grant of
an Option is not accepted within twenty-eight (28) days from the date upon
which it is made in the manner indicated in Clause 4.04, it will be deemed
to have been irrevocably declined and automatically lapsed.
	 
	4.06	 	Each grant of Options to a director, chief executive (other than a
proposed director or a proposed chief executive of the Company) or
substantial shareholder of the Company, or any of their respective
Associates, under the Scheme or any other share option scheme of the
Company or any of its subsidiaries shall comply with the requirements of
Rule 17.04 of the Listing Rules and shall be subject to approval by the
independent non-executive directors of the Company (excluding any
independent non-executive director who is a Grantee of the Options).
	 
	4.07	 	In case of any change in the terms of Options granted to a substantial
shareholder or an independent non-executive director of the Company, or
any of their respective Associates; or where any grant of Options to a
substantial shareholder or an independent non-executive director of the
Company, or any of their respective Associates, would result in the Shares
issued and to be issued upon exercise of all Options already granted and
to be granted (including Options exercised, cancelled and outstanding) to
such person in the 12-month period up to and including the date of such
grant:

	 	(a)	 	representing in aggregate over 0.1% of the relevant class of
Shares in issue; and
	 
	 	(b)	 	having an aggregate value, based on the closing price of the
Shares at the date of each grant, in excess of HK$5,000,000,

	 	 	such further grant of Options must be approved by the Shareholders. The
Company shall send a circular to all Shareholders in connection thereto.
All Connected Persons of the Company must abstain from voting at such
general meeting, except that any Connected Person may vote against the
relevant resolution at the general meeting provided that his intention to
do so has been stated in the circular. Any vote taken at the meeting to
approve the grant of such Options must be taken on a poll.
	 
	4.08	 	The circular referred to in Clause 4.07 shall contain:

	 	(a)	 	details of the number and terms (including the Option Period,
performance targets (if any), basis of determination of exercise
price and the rights attached to the Shares or the Option) of the
Options to be granted to each such substantial shareholder or
independent non-executive director of the Company, or any of their
respective 

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	 	 	 	Associates, which must be fixed before the Shareholders’
meeting and the date of board meeting for proposing such further
grant should be taken as the date of grant for the purpose of
calculating the Subscription Price;
	 
	 	(b)	 	a recommendation from the independent non-executive directors
of the Company (excluding any independent non-executive director who
is a Grantee of the Options) to the independent Shareholders as to
voting; and
	 
	 	(c)	 	the information required under rules 17.02(2)(c) and (d) of
the Listing Rules and the disclaimer required under rule 17.02(4) of
the Listing Rules.

5. SUBSCRIPTION PRICE

	 	 	The Subscription Price in respect of any particular Option shall be such
price as determined by the Board in its absolute discretion at the time
of the grant of the relevant Option (and shall be stated in the letter
containing the offer of the grant of the Option) but in any case the
Subscription Price shall not be lower than the higher of (i) the closing
price of the Shares as stated in the HKSE’s daily quotation sheet on the
date of grant, which must be a trading day; and (ii) the average closing
price of the Shares as stated in the HKSE’s daily quotations sheets for
the five (5) trading days immediately preceding the date of grant; and
(iii) the nominal value of a Share. Without prejudice to the generality
of the foregoing, the Board may grant Options in respect of which the
Subscription Price is fixed at different prices for different periods
during the Option Period provided that the subscription price for Shares
for each of the different period shall not be less than the subscription
price determined in the manner set out in this Clause 5.

6. EXERCISE OF OPTIONS

	6.01	 	An Option shall be personal to the Grantee and shall not be assignable
and no Grantee shall in any way sell, transfer, charge, mortgage, encumber
or create any interest in favour of any third party over or in relation to
any Option. Any breach of the foregoing shall entitle the Company to
cancel any outstanding Option or part thereof granted to such Grantee.
	 
	6.02	 	An Option may be exercised in whole or in part in the manner as set out
in Clauses 6.03 and 6.04 by the Grantee (or, as the case may be, his or
her legal personal representative(s)) giving notice in writing to the
Company stating that the Option is thereby exercised and the number of
Shares in respect of which it is exercised. Each such notice must be
accompanied by a remittance for the full amount of the Subscription Price
for the Shares in respect of which the notice is given. Within
twenty-eight (28) days after receipt of the notice and the remittance and,
where appropriate, receipt of the certificate of the Company’s independent
financial adviser or Auditors pursuant to Clause 9, the Company shall
allot the relevant Shares to the Grantee (or his or her legal personal
representative(s)) credited as fully paid and issue to the Grantee (or his
or her legal personal representative(s)) a share certificate in respect of
the Shares so allotted.
	 
	6.03	 	Subject as hereinafter provided in this Scheme, the Option may be
exercised by the Grantee (or his or her legal personal representatives) at
any time during the Option Period provided that:-

	 	(a)	 	in the event of the Grantee ceasing to be an Eligible
Employee for any reason other than his or her death or the
termination of his or her employment on one or more of 

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	 	 	 	the grounds
specified in Clause 7(e), the Grantee may exercise the Option up to
his or her entitlement at the date of cessation of his or her
employment within the period of 1 month following the date of
cessation in whole or in part (to the extent not already exercised)
which date shall be the last actual working day with the Company or
the relevant Subsidiary or the relevant Invested Entity whether
salary is paid in lieu of
notice or not, or such longer period following the date of
cessation as the Board may determine;
	 
	 	(b)	 	in the event that the Grantee ceases to be a Participant by
reason of death (provided that none of the events which would be a
ground for termination of his or her employment under Clause 7(e)
arises prior to his or her death), the legal personal
representative(s) of this Grantee shall be entitled within a period
of twelve (12) months from the date of death (or such longer period
as the Board may determine) to exercise the Option in full (to the
extent not already exercised);
	 
	 	(c)	 	in the event of a general offer, whether by way of take-over
offer or share re-purchase offer, or scheme of arrangement or
otherwise in like manner is made to all the holders of Shares, or
all such holders other than the offeror and/or any person controlled
by the offeror and/or any person acting in association or concert
with the offeror, the Company shall use its best endeavours to
procure that such offer is extended to all the Grantees on the same
terms, mutatis mutandis, and assuming that they will become, by the
exercise in full of the Options granted to them, shareholders of the
Company. If such offer, having been approved in accordance with
applicable laws and regulatory requirements becomes, or is declared
unconditional, the Grantee (or his or her legal personal
representative(s)) shall be entitled to exercise the Option in full
(to the extent not already exercised) at any time within 14 days
after the date on which such general offer becomes or is declared
unconditional;
	 
	 	(d)	 	in the event of an effective resolution being passed for the
voluntarily winding-up of the Company or an order of the court is
made for the winding-up of the Company, the Grantee (or his or her
legal personal representative(s)) may by notice in writing to the
Company within 21 days after the date of such resolution elect to be
treated as if the Option (to the extent not already exercised) had
been exercised immediately before the passing of such resolution
either to its full extent or to the extent specified in the notice,
such notice to be accompanied by a remittance for the full amount of
the aggregate Subscription Price for the Shares in respect of which
the notice is given, whereupon the Grantee will be entitled to
receive out of the assets available in the liquidation pari passu
with the holders of Shares such sum as would have been received in
respect of the Shares the subject of such election; and
	 
	 	(e)	 	if a compromise or arrangement between the Company and its
members or creditors is proposed for the purposes of or in
connection with a scheme for the reconstruction of the Company or
its amalgamation with any other company or companies, the Company
shall give notice thereof to all Grantees (together with a notice of
the existence of the provisions of this Clause) on the same date as
it dispatches to each member or creditor of the Company a notice
summoning the meeting to consider such a compromise or arrangement,
and thereupon each Grantee (or where permitted under Clause 6.03(b)
his legal personal representative(s)) shall be entitled to exercise
all or any of his Options in whole or in part at any time prior to
12 noon on the day immediately preceding the date of the meeting
directed to be convened by the Court for the purposes of considering
such compromise or arrangement. With effect from the date of such
meeting, the rights of all Grantees to exercise their respective
Options shall forthwith be suspended. Upon such compromise or
arrangement becoming effective, all Options shall, to the extent
that they have not been exercised, lapse and terminate. The
Directors shall endeavour to procure that the Shares issued as a
result of the exercise of Options under this Clause 6.03(e) shall
for the purposes of such compromise or arrangement 

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	 	 	 	form part of the
issued share capital of the Company on the effective date thereof
and that such Shares shall in all respects be subject to such
compromise or arrangement. If for any reason such compromise or
arrangement is not approved by the Court (whether upon the terms
presented to the Court or upon any other terms as may be approved
by such Court) the rights of Grantees to exercise their respective
Options shall with effect from the date of the making of the order
by the Court be restored in full and shall thereupon become
exercisable (but subject to the other terms of the Scheme) as if
such compromise or arrangement had not been proposed by the Company
and no claim shall lie against the Company or any of its officers
for any loss or damage sustained by any Grantee as a result of the
aforesaid suspension.

	6.04	 	There is no performance target that has to be achieved before the exercise of
any Option except otherwise imposed by the Board pursuant to Clause 4.01
and stated in the offer of grant of an Option.
	 
	6.05	 	The Shares to be allotted upon the exercise of an Option will be subject
to all the provisions of the bye-laws of the Company for the time being in
force and will rank pari passu in all respects with the fully paid Shares
in issue as from the day when the name of the Grantee is registered on the
register of members of the Company and accordingly will entitle the
holders to participate in all dividends or other distributions paid or
made on or after the date when the name of the Grantee is registered on
the register of members of the Company other than any dividend or other
distribution previously declared or recommended or resolved to be paid or
made with respect to a record date which shall be before the date when the
name of the Grantee is registered on the register of members of the
Company, provided always that when the date of exercise of the Option
falls on a day upon which the register of members of the Company is closed
then the exercise of the Option shall become effective on the first
Business Day in Hong Kong on which the register of members of the Company
is re-opened. A Share allotted upon the exercise of an Option shall not
carry any voting right until the completion of the registration of the
Grantee as the holder thereof.

7. LAPSE OF OPTION

	 	 	An Option shall lapse automatically (to the extent not already exercised)
on the earliest of:-

	 	(a)	 	the expiry of the Option Period;
	 
	 	(b)	 	the expiry of any of the periods referred to in Clause
6.03(a) or (b);
	 
	 	(c)	 	the date on which the offer (or as the case may be, revised
offer) referred to in Clause 6.03(c) closes;
	 
	 	(d)	 	subject to Clause 6.03(d), the date of the commencement of
the winding-up of the Company;
	 
	 	(e)	 	the date on which the Grantee ceases to be an Eligible
Employee by reason of the termination of his or her employment on
any one or more of the grounds that he or she has been guilty of
misconduct, or has committed an act of bankruptcy or has become
insolvent or has made any arrangement or composition with his or her

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	 	 	 	creditors generally, or has been convicted of any criminal offence
involving his or her integrity or honesty or (if so determined by
the Board) on any other ground on which an employer would be
entitled to terminate his or her employment at common law or
pursuant to any applicable laws or under the Grantee’s service
contract with the Company or the relevant Subsidiary or the relevant
Invested Entity. A resolution of the Board or the board of
directors of the relevant Subsidiary or the board of directors of
the relevant Invested Entity to the effect that employment of a
Grantee has or has
not been terminated on one or more of the grounds specified in this
Clause 7(e) shall be conclusive and binding on the Grantee;
	 
	 	(f)	 	subject to Clause 6.03(e), the date when the proposed
compromise or arrangement becomes effective; or
	 
	 	(g)	 	the date on which the Grantee commits a breach of Clause
6.01;
	 
	 	(h)	 	if the Directors at their absolute discretion determine that
the Grantee (other than an Eligible Employee) or his or her
Associate has committed any breach of any contract entered into
between the Grantee or his or her Associate on the one part and the
Group or any Invested Entity on the other part or that the Grantee
has committed any act of bankruptcy or has become insolvent or is
subject to any winding-up, liquidation or analogous proceedings or
has made any arrangement or composition with his or her creditors
generally, the Directors shall determine that the outstanding
Options granted to the Grantee shall lapse. In such event, his or
her Options will lapse automatically and will not in any event be
exercisable on or after the date on which the Directors have so
determined.

8. MAXIMUM NUMBER OF SHARES AVAILABLE FOR SUBSCRIPTION

	8.01	(a)	 	The total number of Shares in respect of which Options may be granted
under the Scheme and any other share option schemes of the Company shall
not exceed 10 per cent. of the total number of Shares in issue on the
Adoption Day unless the Company seeks the approval of the Shareholders in
general meeting for refreshing the 10 per cent. limit under this Scheme
provided that Options lapsed in accordance with the terms of this Scheme
or any other share option schemes of the Company will not be counted for
the purpose of calculating the 10 per cent. limit under this Clause
8.01(a).

	 	(b)	 	The Company may seek approval of the Shareholders in general
meeting for refreshing the 10 per cent. such that the total number
of Shares in respect of which Options may be granted under the
Scheme and any other share option schemes of the Company as
“refreshed” shall not exceed 10 per cent. of the total number of
Shares in issue as at the date of the approval of the Shareholders
provided that Options previously granted under this Scheme or any
other share option schemes of the Company (including Options
outstanding, cancelled, lapsed or exercised in accordance with the
terms of this Scheme or any other share option scheme of the
Company) will not be counted for the purpose of calculating the
limited as “refreshed”. For the purpose of seeking the approval of
Shareholders under this Clause 8.01(b), a circular containing the
information as required under the Listing Rules must be sent to the
Shareholders.
	 
	 	(c)	 	The Company may seek separate approval by the Shareholders in
general meeting for granting options beyond the 10 per cent. limit
set out in Clause 8.01(b) provided that the Grantee(s) of such
Option(s) must be specifically identified by the Company before such
approval is sought. For the purpose of seeking the approval of the

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	 	 	 	Shareholders under this Clause 8.01(c), the Company must send a
circular to the Shareholders containing a generic description of the
specified Grantees who may be granted such Options, the number and
terms of the Options to be granted, the purpose of granting such
Options to the Grantees with an explanation as to how the terms of
Options serve such purpose and the information as required under the
Listing Rules.
	 
	 	(d)	 	Notwithstanding anything to the contrary herein, the maximum
number of Shares
which may be issued upon exercise of all outstanding Options
granted and yet to be exercised under this Scheme and any other
share option scheme of the Company must not exceed 30 per cent. of
the total number of Shares in issue from time to time. No Options
may be granted under this Scheme or any other share option scheme
of the Company (or any Subsidiary) if this will result in the limit
set out in this Clause 8.01(d) being exceeded.

	8.02	(a)	 	Subject to Clause 8.02(b), no Participant shall be granted an Option
if exercise in full, would result in the total number of Shares already
issued under all the Options granted to it or him or her which have been
exercised and issuable under all the Options granted to it or him or her
which are for the time being subsisting and unexercised in any 12-month
period would exceed 1 per cent. of the total number of Shares in issue.

	 	(b)	 	Where any further grant of Options to a Participant, if
exercised in full, would result in the total number of Shares
already issued under all the Options granted to it or him or her
which have been exercised and issuable under all the Options granted
to it or him or her which are for the time being subsisting and
unexercised in any 12-month period exceed 1 per cent. of the total
number of Shares in issue, such further grant must be separately
approved by the Shareholders in general meeting with the Participant
and his Associates abstaining from voting. The Company must send a
circular to the Shareholders and the circular must disclose the
identity of the Participant, the number and terms of the Options to
be granted and Options previously granted to such Participant and
the information as required under the Listing Rules. The number and
terms (including the Subscription Price) of the Options to be
granted to such Participant must be fixed before Shareholders’
approval and the date of the meeting of the Board for proposing such
further grant of Option should be taken as the date of grant for the
purpose of calculating the Subscription Price.

	8.03	 	Subject to Clauses 8.01 and 8.02, the number of Shares subject to Options
and to the Scheme may be adjusted, in such manner as the Company’s
independent financial adviser or Auditors (acting as experts and not as
arbitrators) shall certify in writing to the Board to be in their opinion
fair and reasonable, in the event of any alteration in the capital
structure of the Company whether by way of capitalisation of profits or
reserves, rights issue or other similar offer of securities to holders of
Shares, consolidation, subdivision or reduction or similar reorganisation
of the share capital of the Company provided that no such adjustment shall
be made in the event of an issue of Shares as consideration in respect of
a transaction to which the Company is a party.

9. REORGANISATION OF CAPITAL STRUCTURE

	 	 	In the event of any alteration in the capital structure of the Company
whilst any Option remains exercisable, whether by way of capitalisation
of profits or reserves, rights issue or other similar offer of securities
to holders of Shares, consolidation, subdivision or reduction or similar
reorganisation of the share capital of the Company (other than an issue
of Shares as 

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	 	 	consideration in respect of a transaction to which the
Company is a party), such corresponding alterations (if any) shall be
made in:

	 	(a)	 	the number of Shares subject to the Option so far as
unexercised; and/or
	 
	 	(b)	 	the Subscription Price; and/or
	 
	 	(c)	 	the method of exercise of the Option; and/or
	 
	 	(d)	 	the maximum number of Shares referred to in Clauses 8.01 and 8.02,

	 	 	as the Company’s independent financial adviser or Auditors shall certify
in writing to the Board to be in their opinion fair and reasonable,
provided that any alteration shall be made on the basis that the
proportion of the issued share capital of the Company to which a Grantee
is entitled after such alteration shall remain the same as that to which
he was entitled before such alteration and that the aggregate
Subscription Price payable by a Grantee on the full exercise of any
Option shall remain as nearly as possible the same (but shall not be
greater than) as it was before such event, but so that no such alteration
shall be made the effect of which would be to enable any Share to be
issued at less than its nominal value and no such adjustment will be
required in circumstances where there is an issue of Shares or other
securities of the Group as consideration in a transaction.
	 
	 	 	In addition, in respect of any such alteration as provided in this Clause
9, other than any made on a capitalisation issue, the Company’s
independent financial adviser or the Auditors must confirm in writing to
the directors of the Company that the alteration satisfies the
requirements of the relevant provision of the Listing Rules.
	 
	 	 	The capacity of the Company’s independent financial adviser or the
Auditors in this Clause 9 is that of experts and not of arbitrators and
their certification shall be final and binding on the Company and the
Grantees.
	 
	 	 	The costs of the Company’s independent financial advisers or the Auditors
shall be borne by the Company.

10. SHARE CAPITAL

	 	 	The exercise of any Option shall be subject to the shareholders of the
Company in general meeting approving any necessary increase in the
authorised share capital of the Company. Subject thereto the Board shall
make available sufficient authorised but unissued share capital of the
Company to meet subsisting requirements on the exercise of Options.

11. DISPUTES

	 	 	Any dispute arising in connection with the Scheme (whether as to the
number of Shares the subject of an Option, the amount of the Subscription
Price, or otherwise) shall be referred to the decision of the Company’s
independent financial advisers or the Auditors who shall act as experts
and not as arbitrators and whose decision shall be final and binding.

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12. ALTERATION OF THE SCHEME

	12.01	 	The Scheme may be altered in any respect by resolution of the Board
except that:

	 	(a)	 	any changes to the definitions of Participant and Grantee and
Option Period in Clause 1.01;
	 
	 	(b)	 	any changes to the provisions of Clauses 3, 4, 5, 6, 7, 8, 9,
this Clause 12, Clauses 13 and 14;
	 
	 	(c)	 	any alteration to the terms and conditions of this Scheme
which are of a material nature;
	 
	 	(d)	 	any change to the terms of the Options granted;
	 
	 	(e)	 	any change to the authority of the Board in relation to any
alteration to the terms of this Scheme,

	 	 	must be approved by a resolution by the Shareholders in general meeting,
except where such alterations take effect automatically under the
existing terms of the Scheme, provided that the amended terms of the
Scheme or the Options shall still comply with the requirements of Chapter
17 of the Listing Rules and that no such alteration shall operate to
affect adversely the terms of issue of any Option granted or agreed to be
granted prior to such alteration except with the consent or sanction in
writing of such number of Grantees as shall together hold Options in
respect of not less than three-fourths in nominal value of all Shares
then subject to Options granted under the Scheme and provided further
that any alterations to the terms and conditions of the Scheme which are
of a material nature shall first be approved by the HKSE.
	 
	12.02	 	The Company must provide to all Grantees all details relating to changes
in the terms of the Scheme during the life of the Scheme immediately upon
such changes taking effect.

13. TERMINATION

	 	 	The Company, by resolution in general meeting, or the Board may at any
time terminate the operation of the Scheme and in such event no further
Option will be offered but the provisions of the Scheme shall remain in
full force and effect to the extent necessary to give effect to the
exercise of the Options (to the extent not already exercised) granted
prior to the termination or otherwise as may be required in accordance
with the provision of the Scheme. Options (to the extent not already
exercised) granted prior to such termination shall continue to be valid
and exercisable in accordance with the Scheme.

14. CANCELLATION OF OPTIONS

	14.01	 	Any cancellation of Options granted but not exercised shall require
approval of the Board and the Shareholders in general meeting with the
relevant Grantees and their Associates abstaining from voting.
	 
	14.02	 	Any vote taken at the meeting to approve such cancellation must be taken
by poll. Cancelled Options may be re-issued after such cancellation has
been approved, provided that re-issued Options shall only be granted in
compliance with the terms of the Scheme.

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	14.03	 	Where the Company cancels Options and issues new ones to the same
Grantee, the issue of such new Options may only be made under a scheme with available unissued Options
(excluding the cancelled Options) within the limit approved by
Shareholders as mentioned in Clause 8.01(a).

	14.04	 	For the avoidance of doubt, Options which have been exercised shall not
be included as cancelled Options.

15. MISCELLANEOUS

	15.01	 	The Company shall bear the costs of establishing and administering the
Scheme.
	 
	15.02	 	The Company shall provide a summary of the terms of the Scheme to all
Grantees upon their joining the Scheme and a copy of the rules of the
Scheme to any Grantee who requests such a copy.
	 
	15.03	 	A Grantee shall be entitled to receive copies of all notices and other
documents sent by the Company to holders of Shares.
	 
	15.04	 	Any notice or other communication between the Company and a Grantee may
be given by sending the same by prepaid post or by personal delivery to,
in the case of the Company, its principal place of business in Hong Kong
at Suites 2303-2306, 23rd Floor, Great Eagle Centre, 23 Harbour Road,
Wanchai, Hong Kong or as otherwise notified to the Grantees from time to
time and, in the case of the Grantee, his or her residential address in
Hong Kong as notified to the Company from time to time.
	 
	15.05	 	Any notice or other communication served by post:

	 	(a)	 	by the Company shall be deemed to have been served 24 hours
after the same was put in the post; and
	 
	 	(b)	 	by the Grantee shall not be deemed to have been received
until the same shall have been received by the Company.

	15.06	 	The Grantee shall be responsible for obtaining any governmental or other
official consent that may be required by any country or jurisdiction in
order to permit the grant or exercise of the Option. The Company shall
not be responsible for any failure by a Grantee to obtain any such consent
or for any tax or other liability to which a Grantee may become subject as
a result of its or his or her participation in the Scheme.
	 
	15.07	 	By accepting an Option, a Grantee shall be deemed irrevocably to have
accepted the grant of Option subject to the provisions of this Scheme and
to have waived any entitlement, by way of compensation for loss of office
or otherwise howsoever, to any sum or other benefit to compensate it or
him for loss of any rights under the Scheme.
	 
	15.07	 	The Scheme and all Options granted hereunder shall be governed by and
construed in accordance with Hong Kong laws.

13

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