Document:

exv4w48

Exhibit 4.48

CHINA UNICOM (HONG KONG) LIMITED

(formerly known as

“CHINA UNICOM LIMITED ”)

(a company incorporated in Hong Kong with limited liability)

PRE-GLOBAL OFFERING SHARE OPTION SCHEME

	1.	 	Definitions
	 
	1.1	 	In the Scheme the following expressions have the following meanings:

	 	 	 
	associate

	 	has the meaning ascribed to it in the Listing Rules
	 
	 	 
	Auditors

	 	means the auditors for the time being of the Company;
	 
	 	 
	Board

	 	means the board of directors from time to time of the
Company or a duly authorised committee thereof;
	 
	 	 
	Board Lot

	 	means the board lot in which Shares are traded on the
Stock Exchange from time to time;
	 
	 	 
	Companies Ordinance

	 	means the Hong Kong Companies Ordinance (Chapter 32 of
the laws of Hong Kong (as amended from time to time));
	 
	 	 
	Company

	 	means China Unicom (Hong Kong) Limited
 (formerly known
as “China Unicom Limited
”), a
company incorporated in Hong Kong with limited
liability;
	 
	 	 
	Effective Date

	 	means the date on which the Scheme becomes
unconditional;
	 
	 	 
	Effective Options

	 	Options granted pursuant to the Scheme and vested in
the Grantee according to the relevant Vesting
Schedule;
	 
	 	 
	Employee

	 	means any employee of the Company or any Subsidiary
including (without limitation) any executive director
in the employment of the Company or any Subsidiary;
	 
	 	 
	financial year

	 	means a year or other period for which the Company’s
consolidated accounts are made up;
	 
	 	 
	Grantee

	 	means any Employee 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 who
is entitled to

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	 	exercise any such Option in consequence
of the death of the original Grantee or, if necessary,
in the case of Incapacity, the Employee’s legal
successors, lawful attorney or legal representative;
	 
	 	 
	HK$

	 	means Hong Kong dollars.
	 
	 	 
	Incapacity

	 	means permanent and entire incapacity, whether or not
caused during work, as determined in accordance with
the standard formulated by the Company;
	 
	 	 
	Issue Price

	 	means the final price per Share (exclusive of brokerage and Stock Exchange transaction
levy) to be agreed between the Company, Morgan Stanley Dean Witter Asia Limited and China
International Capital Corporation Limited at which Shares are to be sold under the proposed public
offering of
the Shares in Hong Kong;
	 
	 	 
	Listing Rules

	 	means the Rules Governing the Listing of
Securities on the Stock Exchange
	 
	 	 
	Mandatory Moratorium

	 	means any prohibition on the exercise of any
Effective Option, the imposition of which is not
made by nor within the control of the Company.
For the avoidance of doubt and by way of
illustration, this includes any mandatory
prohibition on the exercise of any Option
imposed by the central government of the
People’s Republic of China;
	 
	 	 
	Mandatory Moratorium 

Period

	 	means the period of time during which an
Effective Option is subject to a Mandatory
Moratorium;
	 
	 	 
	Mandatory Transfer

	 	means a termination of employment by a member of
the Group of a Transferred Personnel;
	 
	 	 
	Offer Date

	 	means the date on which an Option is offered to
an Employee;
	 
	 	 
	Option

	 	means a right to subscribe for Shares granted
pursuant to the terms of the Scheme;
	 
	 	 
	Option Period

	 	means, in respect of any particular Option, the
period to be determined and notified by the
Board to each Grantee during which the Grantee
may exercise such Option in accordance with the
terms of the Scheme. Such period may commence
on a day after the second anniversary of the
Offer Date and in any event shall end not later
than 10 years from the Offer Date but subject to
the provisions for early termination thereof
contained herein;

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	Scheme

	 	means this share option scheme in its present
form or as amended from time to time (except
that references to the Scheme in Clause 2 shall
only refer to the original pre-global offering
share option scheme as adopted on 1 June 2000);
	 
	 	 
	Shares

	 	means shares of HK$0.10 each in the share
capital of the Company (or of such other nominal
amount as may result from a sub-division,
consolidation, reclassification or
reconstruction of such share capital from time
to time);
	 
	 	 
	Stock Exchange

	 	means The Stock Exchange of Hong Kong Limited;
	 
	 	 
	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;
	 
	 	 
	Subsidiary

	 	means a company which is for the time being and
from time to time a subsidiary (within the
meaning of section 2(4) of the Companies
Ordinance) of the Company whether incorporated
in Hong Kong or elsewhere;
	 
	 	 
	Transferred Personnel

	 	means such personnel who are transferred due to
reasons which are beyond their control, and in
respect of whom such transfer is mandatory. This
includes a transfer to entities outside the
Group which is initiated by the central
government of the People’s Republic of China.
All the other personnel who are transferred
shall not be regarded as “Transferred Personnel”
but will be regarded as a personnel who has left
the service, and will be treated in accordance
with Clause 6.3(a) of this Scheme. The Board
shall be responsible for the determination of
the Transferred Personnel; and
	 
	 	 
	Vesting Schedule

	 	means the arrangement whereby Options granted at
a particular time can be exercised in one lot or
in batches in accordance with a pre-determined
timetable as set out in the relevant grant
letter.

1.2 Clause headings are inserted for convenience only and shall be ignored in the interpretation of
this Scheme. References herein to Clauses are to clauses of this Scheme.

1.3 Unless the context otherwise requires, words importing the singular include the plural and vice
versa, and words importing gender or the neuter shall include both genders and the neuter.

1.4 References to any ordinance or law shall include any statutory modification, amendment or
re-enactment thereof.

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	2.	 	Conditions

2.1 The Scheme has taken effect on 21 June 2000. Any alterations to the Scheme shall be subject to
the requirements of Clause 13.

	3.	 	Duration and Administration

3.1 Subject to Clause 14, the Scheme shall be valid and effective for a period of 10 years
commencing on the Effective Date, after which period no further Options shall be granted but the
provisions of the Scheme shall remain in full force and effect to the extent necessary to give
effect to the exercise of any Options granted prior thereto or otherwise as may be required in
accordance with the provisions of the Scheme.

3.2 The Scheme shall be subject to the administration of the Board whose decision (save as
otherwise provided herein) shall be final and binding on all parties.

	4.	 	Grant of Option

4.1 On and subject to the terms of the Scheme, the Board shall be entitled at any time and from
time to time prior to the date that trading in the Shares commences on the Stock Exchange to offer
to grant to any Employee as the Board may in its absolute discretion select an Option to subscribe
for such number of Shares (being a Board Lot or an integral multiple thereof) as the Board may
determine at the Subscription Price. The Board may in its absolute discretion specify such
conditions (if any) as it thinks fit when making such offer to the Employee, (including, without
limitation, as to performance criteria to be satisfied by the Employee and/or the Company) which
must be satisfied before an Option can be exercised.

4.2 The Directors shall not offer to grant any Option to any Employee within the period of one
month preceding the date of publication of the interim results or within the period of one month
preceding the date of the preliminary announcement of the final results of the Company for any
financial year.

4.3 An offer to grant an Option shall be made to any Employee by letter in such form as the Board
may from time to time determine specifying the number of Shares, the Subscription Price, the Option
Period in respect of which the offer is made, the date by which the Option must be applied for
(being a date not more than 28 days after the Offer Date and provided that such offer shall be open
for acceptance after the effective period of the Scheme stated in Clause 4.1) and further requiring
the Employee 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 Scheme. Such offer shall be personal to the Employee concerned and
shall not be transferable.

4.4 An Option shall be deemed to have been granted and accepted and to have taken effect when the
duplicate letter comprising acceptance of the offer of the grant of the Option duly signed by the
Grantee 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 within the time period specified in the offer of the
grant of the Option. Such remittance shall in no circumstances be refundable.

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4.5 Any offer of the grant of an Option may be accepted or deemed to have been 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 a Board Lot or an integral multiple thereof. To the extent that the offer of the grant
of an Option is not accepted within 28 days from the date upon which it is made in the manner
indicated in Clause 4.4, it will be deemed to have been irrevocably declined.

	5.	 	Subscription Price

5.1 The Subscription Price in respect of any Option shall be a price (subject to any adjustments
made pursuant to Clause 10) equal to the Issue Price.

	6.	 	Exercise of Options

6.1 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 by the Grantee shall entitle
the Company to cancel any Option granted to such Grantee (to the extent not already exercised).

6.2 An Option may be exercised in whole or in part (but if in part only, in respect of a Board Lot
or any integral multiple thereof) in the manner set out in Clauses 6.3 and 6.4 by the Grantee
giving notice in writing to the Company stating that the Option is thereby exercised and specifying
the number of Shares to be subscribed. Each such notice must 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. Within 28 days after receipt of the notice and the remittance and, where appropriate,
receipt of the Auditors’ certificate pursuant to Clause 9, the Company shall allot and issue the
relevant Shares to the Grantee credited as fully paid and issue to the Grantee a share certificate
in respect of the Shares so allotted.

6.3 Subject as hereinafter provided and Clause 4, an Option may be exercised by the Grantee at any
time or times during the Option Period provided that:

	(a)	 	in the event of the Grantee ceasing to be an Employee for any reason other than his death,
retirement, Incapacity, Mandatory Transfer or on one or more of the grounds specified in
Clause 7.1(d) leading to a lapse of the Option, the Grantee may exercise all the Effective
Options granted to him at the date of cessation of his employment or office (to the extent not
already exercised) on the date of such cessation, which date shall be the last actual working
day with the Company or the relevant Subsidiary whether salary is paid in lieu of notice or
not. All the Effective Options which have not been exercised on the date of cessation of
employment will lapse automatically on the date immediately after such cessation and such
Options shall in no circumstances be exercisable. For the avoidance of doubt, a Grantee does
not cease to be an Employee only for the reason of an internal transfer to a Subsidiary;
	 
	(b)	 	in the event of the death of the original Grantee and none of the events under Clause 7.1(d)
has occurred, all the Options granted to the Grantee shall be vested in the Grantee
automatically on the date of death, and the lawful

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	 	 	successors of the Grantee shall be entitled within anytime from the date of death to the
earlier of (i) 12 months after the date of death and (ii) the end of the Option Period to
exercise all the Options in full (to the extent not already exercised, PROVIDED THAT where
the Board has exercised its power under Clause 6.3(h) below to extend the Option Period of
any such Option, then the successors of the Grantee may exercise the affected Option(s) for
an additional period, being that notified by the Board under Clause 6.3(h)). Any such
Options which are not exercised within the applicable time determined as aforesaid shall
lapse automatically. The legal successors to the above Options shall be limited to legal
representatives of the deceased Grantee or persons who are entitled to inherit the rights
of exercise of the deceased Grantee under this Scheme by will or by law of succession;
	 
	(c)	 	if a general offer (whether by way of take-over offer, share repurchase 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 in 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 shall be entitled to exercise the Option in full (to the extent not
already exercised) at any time within 21 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 voluntary winding-up of the
Company or an order of Court is made for the winding-up of the Company, the Grantee 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;
	 
	(e)	 	if, pursuant to the Companies Ordinance, 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 despatches to each member or creditor of
the Company a notice summoning the meeting to consider such a compromise or arrangement, and
thereupon each Grantee shall be entitled to exercise all or any of his Options in whole or

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	 	 	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 determine. The Board shall endeavour to procure that
the Shares issued as a result of the exercise of Options under this Clause 6.3(e) shall for
the purposes of such compromise or arrangement 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;
	 
	(f)	 	in the event of the retirement or Incapacity of the Grantee and none of the events under
Clause 7.1(d) has occurred, all the Options granted to the Grantee shall continue to vest in
the Grantee according to the relevant Vesting Schedule, and the Grantee may exercise all
Effective Options vested in him according to the Vesting Schedule within the Option Period;
	 
	(g)	 	in the event of a Mandatory Transfer and none of the events under Clause 7.1(d) has occurred:

	 	(i)	 	the Transferred Personnel may exercise all Effective Options
vested in him on or before the date of the Mandatory Transfer (which date shall
be the last actual working day of the Transferred Personnel with the relevant
member of the Group whether salary is paid in lieu of notice or not); and
	 
	 	(ii)	 	in relation to Options granted to the Transferred Personnel which
have not vested in him on or before the date of the Mandatory Transfer (Unvested
Options), the Board shall have the right to vest such number of Unvested Options
in the Transferred Personnel (Effective Unvested Options) on the date of the
Mandatory Transfer as the Board may decide in its absolute discretion,

	 	 	and the Transferred Personnel may exercise all the Effective Options (to the extent not
already exercised) and the Effective Unvested Options at any time from the date of the
Mandatory Transfer to the earlier of (i) 12 months after the date of the Mandatory Transfer
and (ii) the end of the Option Period, PROVIDED THAT where the Board has exercised its
power under Clause 6.3(h) below to extend the Option Period of any such Effective Option or

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	 	 	Effective Unvested Option, then the Transferred Personnel may exercise the affected
Effective Option(s) and/or Effective Unvested Option(s) for an additional period, being
that notified by the Board under Clause 6.3(h). All the Options which are not Effective
Options or not Effective Unvested Options will lapse automatically on the date immediately
after the date of such Mandatory Transfer. All the Effective Options and Effective Unvested
Options which have not been exercised by the applicable time determined as aforesaid shall
lapse automatically; and
	 
	(h)	 	in the event that a Mandatory Moratorium is imposed in respect of any Effective Option during
its Option Period (being the Option Period notified by the Board to the Grantee at the time of
grant pursuant to Clause 4.3 and as may be subsequently modified in accordance with other
terms of this Scheme), the Board shall have the power to extend the Option Period of the
affected Effective Option by such period (which shall not exceed the aggregate Mandatory
Moratorium Period to which the relevant Effective Option is at that time known to the Board to
have been and/or will be subject) as the Board shall in its absolute discretion determine, by
giving notice thereof to the relevant Grantee.

6.4 The Shares to be allotted upon the exercise of an Option shall be subject to all the provisions
of the Articles of Association of the Company for the time being in force and shall rank pari passu
with the fully paid Shares in issue on the date of allotment and accordingly will entitle the
holders to participate in all dividends and other distributions paid or made on or after the date
of allotment other than any dividend or other distribution previously declared or recommended or
resolved to be paid or made if the record date therefore shall be before the date of allotment.

6.5 A Share issued upon the exercise of an Option shall not carry voting rights until the
registration of the Grantee (or any other person designated by the Grantee) as the holder thereof.
If under the terms of a resolution passed or an announcement made by the Company a dividend is to
be or is proposed to be paid to holders of Shares on the register on a date prior to the date when
an Option was effectively exercised, the Shares to be issued upon such exercise will not rank for
such dividend.

	7.	 	Lapse of Option

7.1 An Option shall lapse automatically and not be exercisable (to the extent not already
exercised) on the earliest of:

	(a)	 	the expiry of the Option Period (as extended pursuant to Clause 6.3(h), if applicable);
	 
	(b)	 	the expiry of any of the periods referred to in Clause 6.3 (a), (b), (c), (e) and (g);
	 
	(c)	 	subject to Clause 6.3(d), the date of the commencement of the winding- up of the Company (as
determined in accordance with the Companies Ordinance);

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	(d)	 	the date on which the Board resolves that the Option of the Grantee shall lapse and not be
exercisable as a result of the Grantee ceasing to be an Employee by reason of the summary
termination of his employment on any one or more of the grounds that he has been guilty of
misconduct, or has been convicted of any criminal offence involving his integrity or honesty.
A resolution of the Board or the board of directors of the relevant Subsidiary to the effect
that the employment of a Grantee has or has not been terminated on one or more of the grounds
specified in this Clause 7.1(d) shall be conclusive for the purpose of determining whether the
employment of the Grantee will be terminated; or
	 
	(e)	 	the date on which the Grantee commits a breach of Clause 6.1.

	8.	 	Maximum number of Shares available for Subscription

8.1 The maximum number of Shares in respect of which Options may be granted under the Scheme shall
not exceed 27,116,600.

8.2 No Employee shall be granted an Option which, if exercised in full, would result in such
Employee becoming entitled to subscribe for such number of Shares as, when aggregated with the
total number of Shares already issued to him under all Options previously granted to him which have
been exercised, and, issuable to him under all Options previously granted to him which are for the
time being subsisting and unexercised, would exceed 25 per cent. of the aggregate number of Shares
for the time being issued and issuable under the Scheme.

8.3 The maximum number of Shares referred to in Clauses 8.1 and 8.2 shall be adjusted, in such
manner as the Auditors shall certify in writing to the Board to be 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, consolidation, subdivision or reduction 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 transfer to which the Company is a party.

	9.	 	Cancellation

9.1 Options granted but not exercised or lapsed may be cancelled with the consent of the relevant
Grantee in accordance with the provisions of this Clause 9.

9.2 Cancellation of Options granted but not exercised must be approved by a resolution of the
Company in general meeting, with the relevant Grantees and their associates abstaining from voting.
Any vote taken at such meeting to approve such cancellations must be taken by poll.

	10.	 	Reorganisation of Capital Structure

10.1 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,
consolidation, subdivision or reduction of the share capital of the Company in accordance with
applicable laws and regulatory requirements (other than an issue of Shares as consideration in
respect of a transaction to which the

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Company is a party), the Board shall make such corresponding adjustments (if any) to:

	(a)	 	the number or nominal amount of Shares, the subject matter of the Option (insofar as it is
unexercised); and/or
	 
	(b)	 	the aggregate number of Shares subject to outstanding Options; and/or
	 
	(c)	 	the Subscription Price; and/or
	 
	(d)	 	the method of exercise of the Option,

as the Auditors shall certify in writing to the Board to be in their opinion fair and reasonable,
provided that any adjustment 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 adjustment shall remain as nearly
as possible the same as that to which he was entitled before such adjustment, but so that no such
adjustment shall be made the effect of which would be to enable any Share to be issued at less than
its nominal value, or to increase the proportion of the issued share capital of the Company for
which any Grantee would have been entitled to subscribe had he exercised all the Options held by
him immediately prior to such adjustments. The capacity of the Auditors in this Clause 10 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 Auditors shall be borne by the Company.

10.2 If there has been any alteration in the capital structure of the Company as referred to in
Clause 10.1, the Company shall, upon receipt of a notice from the Grantee in accordance with Clause
6.2, inform the Grantee of such alteration and shall either inform the Grantee of the adjustment to
be made pursuant to the certificate of the Auditors obtained by the Company for such purpose, or if
no such certificate has yet been obtained, inform the Grantee of such fact and instruct the
Auditors to issue a certificate in that regard in accordance with Clause 10.1.

	11.	 	Share Capital

11.1 The exercise of any Option shall be subject to the members 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.

	12.	 	Disputes

12.1 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 Auditors who shall act as experts and not as arbitrators and whose decision shall
be final and binding.

12.2 In the event that any party to the dispute referred to above does not agree to resolve the
relevant dispute in accordance with the procedures set out in Clause 12.1

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or the Auditors are unwilling to act in accordance with Clause 12.1, the dispute shall be settled
by arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force and as may
be amended by the rest of this Clause 12.2.

	(a)	 	The appointing authority shall be the Hong Kong International Arbitration Centre (HKIAC).
	 
	(b)	 	The place of arbitration shall be in Hong Kong at the HKIAC.
	 
	(c)	 	There shall be only one arbitrator.
	 
	(d)	 	The language(s) to be used in the arbitral proceedings shall be English.

	13.	 	Alteration of the Scheme

13.1 Subject to Clause 13.2, the Board may amend any of the provisions of this Scheme and the terms
of the Options (including amendments in order to comply with changes in legal or regulatory
requirements) at any time.

13.2 Any alterations to the terms and conditions of the Scheme which are to the advantage of
Grantees, of a material nature or involve any change to the terms of Options granted shall be
subject to the approval of the Company in general meeting save where the alterations take effect
automatically under the existing terms of the Scheme.

13.3 For the avoidance of doubt, all Options granted after the Effective Date shall be bound by the
rules of the Scheme as amended from time to time.

	14.	 	Termination

14.1 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 Options will be offered but the provisions of
the Scheme shall remain in full force in all other respects. All Options granted prior to such
termination shall continue to be valid and exercisable in accordance with the terms of the Scheme.

	15.	 	Miscellaneous

15.1 The Scheme shall not form part of any contract of employment between the Company, or any
Subsidiary and any Employee and the rights and obligations of any Employee under the terms of his
office or employment shall not be affected by his participation in the Scheme or any right which he
may have to participate in it and the Scheme shall afford such an Employee no additional rights to
compensation or damages in consequence of the termination of such office or employment for any
reason.

15.2 The Scheme shall not confer on any person any legal or equitable rights (other than those
arising from or constituting the Options themselves) against the Company directly or indirectly or
give rise to any cause of action at law or in equity against the Company.

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15.3 The Company shall bear the costs of establishing and administering the Scheme.

15.4 A Grantee shall be entitled to receive for information only copies of all notices and other
documents sent by the Company to holders of Shares generally.

15.5 Any notice or other communication between the Company and a Grantee may be given by sending
the same by post (postage prepaid and by airmail if sent to an address in a different territory) or
by personal delivery to, in the case of the Company, its principal place of business in Hong Kong
at 75th Floor, The Centre, Central, Hong Kong (and marked for the attention of the
Secretary) or as notified to the Grantees from time to time and, in the case of the Grantee, his
address as notified to the Company from time to time.

15.6 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.

15.7 All allotments and issues of Shares under the Scheme shall be subject to any necessary
consents under any relevant enactments or regulations for the time being in Hong Kong or elsewhere.
A Grantee shall be responsible for complying with any requirements to be fulfilled in order to
obtain or obviate the necessity to obtain any such 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 his participation in the Scheme.

15.8 The Board shall have the power from time to time to make or vary regulations for the
administration and operation of the Scheme, provided that the same are not inconsistent with the
provisions of the Scheme. The costs of introducing and administering the Scheme shall be borne by
the Company.

15.9 The Scheme and all Options granted hereunder shall be governed by and construed in accordance
with Hong Kong law.

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CONTENTS

	 	 	 	 	 
	Clause	 	 	Page
	 
	1.

	 	Definitions
	 	1
	 
	 	 	 	 
	2.

	 	Conditions
	 	4
	 
	 	 	 	 
	3.

	 	Duration and Administration
	 	4
	 
	 	 	 	 
	4.

	 	Grant of Option
	 	4
	 
	 	 	 	 
	5.

	 	Subscription Price
	 	5
	 
	 	 	 	 
	6.

	 	Exercise of Options
	 	5
	 
	 	 	 	 
	7.

	 	Lapse of Option
	 	8
	 
	 	 	 	 
	8.

	 	Maximum number of Shares available for Subscription
	 	9
	 
	 	 	 	 
	9.

	 	Cancellation
	 	9
	 
	 	 	 	 
	10.

	 	Reorganisation of Capital Structure
	 	9
	 
	 	 	 	 
	11.

	 	Share Capital
	 	10
	 
	 	 	 	 
	12.

	 	Disputes
	 	10
	 
	 	 	 	 
	13.

	 	Alteration of the Scheme
	 	11
	 
	 	 	 	 
	14.

	 	Termination
	 	11
	 
	 	 	 	 
	15.

	 	Miscellaneous
	 	11

 

ADOPTED BY ORDINARY RESOLUTION

OF THE COMPANY ON 1 JUNE 2000 AND

AMENDED BY ORDINARY RESOLUTION

OF THE COMPANY ON 13 MAY 2002, 11 MAY 2007 AND 26 MAY 2009

CHINA UNICOM (HONG KONG) LIMITED

(formerly
known as

“CHINA UNICOM LIMITED
”)

(a company incorporated in Hong Kong with limited liability)

PRE-GLOBAL OFFERING SHARE OPTION SCHEMEexv4w49

EXHIBIT 4.49

CHINA UNICOM (HONG KONG) LIMITED

(formerly known as

“CHINA UNICOM LIMITED ”)

(a company incorporated in Hong Kong with limited liability)

SHARE OPTION SCHEME

1. Definitions

1.1 In the Scheme the following expressions have the following meanings:

	 	 	 
	associate

	 	has the meaning ascribed to it in the Listing Rules
	 
	 	 
	Auditors

	 	means the auditors for the time being of the Company;
	 
	 	 
	Board

	 	means the board of directors from time to time of the
Company or a duly authorised committee thereof;
	 
	 	 
	Board Lot

	 	means the board lot in which Shares are traded on the
Stock Exchange from time to time;
	 
	 	 
	Connected Persons

	 	has the meaning ascribed to it in the Listing Rules;
	 
	 	 
	Companies Ordinance

	 	means the Hong Kong Companies Ordinance (Chapter 32 of
the laws of Hong Kong (as amended from time to time));
	 
	 	 
	Company

	 	means China Unicom (Hong Kong) Limited
 (formerly known
as “China Unicom Limited ”), a
company incorporated in Hong Kong with limited
liability;
	 
	 	 
	Effective Date

	 	means the date on which the Scheme becomes
unconditional;
	 
	 	 
	Effective Options

	 	Options granted pursuant to the Scheme and vested in
the Grantee according to the relevant Vesting
Schedule;
	 
	 	 
	Eligible Participant

	 	means any employee of the Company or any subsidiary
including (without limitation) any executive director
in the employment of the Company or any subsidiary, or
any of the Non-executive Directors;
	 
	 	 
	Group

	 	means the Company and its subsidiaries;

PLG

 

 

	 	 	 
	financial year

	 	means a year or other period for which the Company’s
consolidated accounts are made up;
	 
	 	 
	Grantee

	 	means any Eligible 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 who is entitled to exercise any such Option
in consequence of the death of the original Grantee
or, if necessary, in the case of Incapacity, the
Eligible Participant’s legal successors, lawful
attorney or legal representative;
	 
	 	 
	HK$

	 	means Hong Kong dollars;
	 
	 	 
	Incapacity

	 	means permanent and entire incapacity, whether or not
caused during work, as determined in accordance with
the standard formulated by the Company;
	 
	 	 
	Listing Rules

	 	means the Rules Governing the Listing of Securities on
the Stock Exchange;
	 
	 	 
	Mandatory Moratorium

	 	means any prohibition on the exercise of any Effective
Option, the imposition of which is not made by nor
within the control of the Company. For the avoidance
of doubt and by way of illustration, this includes any
mandatory prohibition on the exercise of any Option
imposed by the central government of the People’s
Republic of China;
	 
	 	 
	Mandatory Moratorium Period

	 	means the period of time during which an Effective
Option is subject to a Mandatory Moratorium;
	 
	 	 
	Mandatory Transfer

	 	means a termination of employment by a member of the
Group of a Transferred Personnel;
	 
	 	 
	Non-executive Director(s)

	 	means the non-executive directors of the Company which
include the independent non-executive directors of the
Company;
	 
	 	 
	Offer Date

	 	means the date on which an Option is offered to an
Eligible Participant;
	 
	 	 
	Option

	 	means a right to subscribe for Shares granted pursuant
to the terms of the Scheme;
	 
	 	 
	Option Period

	 	means, in respect of any particular Option, the period to be determined
and notified by the Board to each Grantee during which the Grantee may
exercise such Option in accordance with the terms of the Scheme. Such
period may commence on a day after the Offer Date and in any event
shall end not later than 10 years from the Offer Date but subject to
the provisions for early termination thereof contained herein;

Page 2

 

	 	 	 
	Scheme

	 	means this share option scheme in its present form or
as amended from time to time (except that references
to the Scheme in Clause 3 shall only refer to the
original share option scheme as adopted on 1 June
2000);
	 
	 	 
	Shares

	 	means shares of HK$0.10 each in the share capital of
the Company (or of such other nominal amount as may
result from a sub-division, consolidation,
reclassification or reconstruction of such share
capital from time to time);
	 
	 	 
	Stock Exchange

	 	means The Stock Exchange of Hong Kong Limited;
	 
	 	 
	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 6;
	 
	 	 
	substantial shareholder

	 	has the meaning ascribed to it under the Listing Rules;
	 
	 	 
	subsidiary

	 	means a company which is for the time being and from
time to time a subsidiary (within the meaning of
section 2(4) of the Companies Ordinance) of the
Company whether incorporated in Hong Kong or
elsewhere;
	 
	 	 
	Transferred Personnel

	 	means such personnel who are transferred due to
reasons which are beyond their control, and in respect
of whom such transfer is mandatory. This includes a
transfer to entities outside the Group which is
initiated by the central government of the People’s
Republic of China. All the other personnel who are
transferred shall not be regarded as “Transferred
Personnel” but will be regarded as a personnel who has
left the service, and will be treated in accordance
with Clause 7.3(a) of this Scheme. The Board shall be
responsible for the determination of the Transferred
Personnel; and
	 
	 	 
	Vesting Schedule

	 	means the arrangement whereby Options granted at a
particular time can be exercised in one lot or in
batches in accordance with a pre-determined timetable
as set out in the relevant grant letter.

1.2 Clause headings are inserted for convenience only and shall be ignored in the interpretation of
this Scheme. References herein to Clauses are to clauses of this Scheme.

1.3 Unless the context otherwise requires, words importing the singular include the plural and vice
versa, and words importing gender or the neuter shall include both genders and the neuter.

Page 3

 

1.4 References to any ordinance or law shall include any statutory modification, amendment or
re-enactment thereof.

2. Purpose 

2.1 The purpose of this Scheme is to recognise the contribution that certain individuals have made
to the Company, to attract and retain the best available personnel and to promote the success of
the Company’s business and that of its subsidiaries.

3. Conditions

3.1 The Scheme has taken effect on 21 June 2000. Any alterations to the Scheme shall be subject to
the requirements of Clause 15.

4. Duration and Administration

4.1 Subject to Clause 16, the Scheme shall be valid and effective for a period of 10 years
commencing on the Effective Date, after which period no further Options shall be granted but the
provisions of the Scheme shall remain in full force and effect to the extent necessary to give
effect to the exercise of any Options granted prior thereto or otherwise as may be required in
accordance with the provisions of the Scheme.

4.2 The Scheme shall be subject to the administration of the Board whose decision (save as
otherwise provided herein) shall be final and binding on all parties.

5. Grant of Options

5.1 On and subject to the terms of the Scheme, the Board shall be entitled at any time and from
time to time within 10 years after the Effective Date to offer to grant to any Eligible Participant
as the Board may in its absolute discretion select an Option to subscribe for such number of Shares
(being a Board Lot or an integral multiple thereof) as the Board may determine at the Subscription
Price. The Board may in its absolute discretion specify such conditions (if any) as it thinks fit
when making such offer to the Eligible Participant, (including, without limitation, as to
performance criteria to be satisfied by the Eligible Participant and/or the Company) which must be
satisfied before an Option can be exercised.

5.2 The Directors shall not offer to grant any Option to any Eligible Participant:

	(a)	 	after a price sensitive event 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; or
	 
	(b)	 	during the period of one month immediately preceding the earlier of:

	 	(i)	 	the date of the board meeting (as such date is first notified to
the Stock Exchange in accordance with paragraph 12 of the Company’s Listing

Page 4

 

	 	 	 	Agreement with the Stock Exchange) for the approval of the Company’s interim or
annual results; and
	 
	 	(ii)	 	the deadline for the Company to publish its interim or annual results under the Listing Agreement,

	 	 	and ending on the date of the results announcement.

5.3 An offer to grant an Option shall be made to any Eligible Participant by letter in such form as
the Board may from time to time determine specifying the number of Shares, the Subscription Price,
the Option Period in respect of which the offer is made, the date by which the Option must be
accepted (being a date not more than 28 days after the Offer Date and provided that such offer
shall be open for acceptance after the effective period of the Scheme stated in Clause 5.1) and
further requiring the Eligible 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 Scheme. Such offer shall be personal to
the Eligible Participant concerned and shall not be transferable.

5.4 An Option shall be deemed to have been granted and accepted and to have taken effect when the
duplicate letter comprising acceptance of the offer of the grant of the Option duly signed by the
Grantee 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 within the time period specified in the offer of the
grant of the Option. Such remittance shall in no circumstances be refundable.

5.5 Any offer of the grant of an Option may be accepted or deemed to have been 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 a Board Lot or an integral multiple thereof. To the extent that the offer of the grant
of an Option is not accepted within 28 days from the date upon which it is made in the manner
indicated in Clause 5.4, it will be deemed to have been irrevocably declined.

6. Subscription Price

6.1 The Subscription Price in respect of any Option shall be a price determined by the Board and
notified to any Eligible Participant (subject to any adjustments made pursuant to Clause 12) which
shall be not less than the higher of:

	(a)	 	the closing price of the Shares on the Stock Exchange as stated in the Stock Exchange’s
quotation sheets on the relevant Offer Date in respect of such Option;
	 
	(b)	 	the average closing price of the Shares on the Stock Exchange as stated in the Stock
Exchange’s quotation sheets for the five trading days immediately preceding the relevant Offer
Date; and
	 
	(c)	 	the nominal value of the Shares.

Page 5

 

7. Exercise of Options

7.1 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 by the Grantee shall entitle
the Company to cancel any Option granted to such Grantee (to the extent not already exercised).

7.2 An Option may be exercised in whole or in part (but if in part only, in respect of a Board Lot
or any integral multiple thereof) in the manner set out in Clauses 7.3 and 7.4 by the Grantee
giving notice in writing to the Company stating that the Option is thereby exercised and specifying
the number of Shares to be subscribed. Each such notice must 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. Within 28 days after receipt of the notice and the remittance and, where appropriate,
receipt of the Auditors’ certificate pursuant to Clause 12, the Company shall allot and issue the
relevant Shares to the Grantee credited as fully paid and issue to the Grantee a share certificate
in respect of the Shares so allotted.

7.3 Subject as hereinafter provided and Clause 5, an Option may be exercised by the Grantee at any
time or times during the Option Period provided that:

	(a)	 	in the event of the Grantee ceasing to be an Eligible Participant for any reason other than
his death, retirement, Incapacity, Mandatory Transfer or on one or more of the grounds
specified in Clauses 8.1(d) or 8.1(e) leading to a lapse of the Option, the Grantee may
exercise all the Effective Options granted to him at the date of cessation of his employment
or office (to the extent not already exercised) on the date of such cessation, which date
shall be the last actual working day with the relevant member of the Group whether salary is
paid in lieu of notice or not. All the Effective Options which have not been exercised on or
before the date of cessation of employment will lapse automatically on the date immediately
after such cessation and such Options shall in no circumstances be exercisable. For the
avoidance of doubt, a Grantee does not cease to be an Eligible Participant only for the reason
of an internal transfer to another member of the Group;
	 
	(b)	 	in the event of the death of the original Grantee and none of the events under Clauses 8.1(d)
or 8.1(e) has occurred, all the Options granted to the Grantee shall be vested in the Grantee automatically on the date of death, and the lawful
successors of the Grantee shall be entitled within anytime from the date of death to the
earlier of (i) 12 months after the date of death and (ii) the end of the Option Period to
exercise all the Options in full (to the extent not already exercised), PROVIDED THAT where
the Board has exercised its power under Clause 7.3(h) below to extend the Option Period of
any such Option, then the successors of the Grantee may exercise the affected Option(s) for
an additional period, being that notified by the Board under Clause 7.3(h). Any such
Options which have not been exercised by the applicable time determined as aforesaid shall
lapse automatically. The legal successors to the above Options shall be limited to legal
representatives of the deceased Grantee

Page 6

 

		 	or persons who are entitled to inherit the rights of exercise of the deceased Grantee under this Scheme by will or by law of succession;
	 
	(c)	 	if a general offer (whether by way of take-over offer, share repurchase 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 in 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 shall be entitled to exercise the Option in full (to the extent not
already exercised) at any time within 21 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 voluntary winding-up of the
Company or an order of Court is made for the winding-up of the Company, the Grantee 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;
	 
	(e)	 	if, pursuant to the Companies Ordinance, 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 despatches to each
member or creditor of the Company a notice summoning the meeting to consider such a
compromise or arrangement, and thereupon each Grantee 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 determine. The Board shall endeavour to
procure that the Shares issued as a result of the exercise of Options under this Clause
7.3(e) shall for the purposes of such compromise or arrangement form part of the issued
share capital of the Company on the effective date thereof and that such

Page 7

 

	 	 	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;
	 
	(f)	 	in the event of the retirement or Incapacity of the Grantee and none of the events under
Clauses 8.1(d) or 8.1(e) has occurred, all the Options granted to the Grantee shall continue
to vest in the Grantee according to the relevant Vesting Schedule, and the Grantee may
exercise all Effective Options vested in him according to the Vesting Schedule within the
Option Period;
	 
	(g)	 	in the event of a Mandatory Transfer and none of the events under Clauses 8.1(d) or 8.1(e)
has occurred:

	 	(i)	 	the Transferred Personnel may exercise all Effective Options
vested in him on or before the date of the Mandatory Transfer (which date shall
be the last actual working day of the Transferred Personnel with the relevant
member of the Group whether salary is paid in lieu of notice or not); and
	 
	 	(ii)	 	in relation to Options granted to the Transferred Personnel which
have not vested in him on or before the date of the Mandatory Transfer (Unvested
Options), the Board shall have the right to vest such number of Unvested Options
in the Transferred Personnel (Effective Unvested Options) on the date of the
Mandatory Transfer as the Board may decide in its absolute discretion,

	 	 	and the Transferred Personnel may exercise all the Effective Options (to the extent not
already exercised) and the Effective Unvested Options at any time from the date of the
Mandatory Transfer to the earlier of (i) 12 months after the date of the Mandatory Transfer
and (ii) the end of the Option Period, PROVIDED THAT where the Board has exercised its
power under Clause 7.3(h) below to extend the Option Period of any such Effective Option or
Effective Unvested Option, then the Transferred Personnel may exercise the affected
Effective Option(s) and/or Effective Unvested Option(s) for an additional period, being
that notified by the Board under Clause 7.3(h). All the Options which are not Effective
Options or not Effective Unvested Options will lapse automatically on the date immediately
after the date of such Mandatory Transfer. All the Effective Options and Effective Unvested
Options which have not been exercised by the applicable time determined as aforesaid shall
lapse automatically; and

Page 8

 

	(h)	 	in the event that a Mandatory Moratorium is imposed in respect of any Effective Option during
its Option Period (being the Option Period notified by the Board to the Grantee at the time of
grant pursuant to Clause 5.3 and as may be subsequently modified in accordance with the other
terms of this Scheme), the Board shall have the power to extend the Option Period of the
affected Effective Option by such period (which shall not exceed the aggregate Mandatory
Moratorium Period to which the relevant Effective Option is at that time known to the Board to
have been and/or will be subject) as the Board shall in its absolute discretion determine, by
giving notice thereof to the relevant Grantee.

7.4 The Shares to be allotted upon the exercise of an Option shall be subject to all the provisions
of the Articles of Association of the Company for the time being in force and shall rank pari passu
with the fully paid Shares in issue on the date of allotment and accordingly will entitle the
holders to participate in all dividends and other distributions paid or made on or after the date
of allotment other than any dividend or other distribution previously declared or recommended or
resolved to be paid or made if the record date therefore shall be before the date of allotment.

7.5 A Share issued upon the exercise of an Option shall not carry voting rights until completion of
the registration of the Grantee (or any other person designated by the Grantee) as the holder
thereof. If under the terms of a resolution passed or an announcement made by the Company a
dividend is to be or is proposed to be paid to holders of Shares on the register on a date prior to
the date when an Option was effectively exercised, the Shares to be issued upon such exercise will
not rank for such dividend.

8. Lapse of Option

8.1 An Option shall lapse automatically and not be exercisable (to the extent not already
exercised) on the earliest of:

	(a)	 	the expiry of the Option Period (as extended pursuant to Clause 7.3(h), if applicable);
	 
	(b)	 	the expiry of any of the periods referred to in Clause 7.3 (a), (b), (c), (e) and (g);
	 
	(c)	 	subject to Clause 7.3(d), the date of the commencement of the winding-up of the Company (as
determined in accordance with the Companies Ordinance);
	 
	(d)	 	the date on which the Board resolves that the Option of the Grantee shall lapse and not be
exercisable as a result of the Grantee, being an employee (including an executive director) of
any member of the Group, ceasing to be such an employee by reason of the summary termination
of his employment on any one or more of the grounds that he has been guilty of misconduct, or
has been convicted of any criminal offence involving his integrity or honesty. A resolution
of the board of directors of the relevant member of the Group to the effect that the
employment of a Grantee has or has not been terminated on

Page 9

 

		 	one or more of the grounds specified
in this Clause 8.1(d) shall be conclusive for the purpose of determining whether the
employment of the Grantee will be terminated;
	 
	(e)	 	the date on which the Board resolves that the Option of the Grantee shall lapse as a result
of the Board or meeting of the shareholders of the Company having resolved, in accordance with
their respective powers granted under the Articles of Association of the Company or relevant
laws or regulation, that the Grantee, being a Non-executive Director, shall cease to hold the
office of Non-executive Director on any one or more of the grounds that he has been guilty of
misconduct, or has been convicted of any criminal offence involving his integrity or honesty,
or being prohibited by laws or regulation or court order from being a director, or being
reprimanded by the Stock Exchange or the stock exchanges or relevant government authorities of
other jurisdictions outside Hong Kong; or
	 
	(f)	 	the date on which the Grantee commits a breach of Clause 7.1.

9. Maximum number of Shares available for Subscription

9.1 The maximum number of Shares in respect of which Options may be granted under the Scheme when
aggregated with the maximum number of Shares in respect of which options may be granted under any
other scheme involving the issue or grant of options over Shares or other securities by the Company
and/or any of its subsidiaries shall not exceed 10 per cent. of the issued share capital of the
Company as of the date of approval of the amendments to the Scheme by the shareholders of the
Company in general meeting on 13 May 2002. Options lapsed in accordance with the terms of the
Scheme shall not be counted for the purpose of calculating the 10 per cent. limit. Upon the grant
of options for Shares up to 10 per cent. of the issued share capital of the Company and subject to
the approval of the shareholders of the Company in general meetings, the maximum number of Shares
to be issued under this Scheme (when aggregated with securities to be issued under any other share option
scheme(s) of the Company and/or any of its subsidiaries) may be increased by increments as
determined by the Board provided that such increments shall not exceed 10 per cent. of the issued
share capital of the Company as of the date of approval of such increments by the shareholders of
the Company. Under any circumstances, the total number of Shares to be issued upon exercise of all
outstanding options shall not exceed 30 per cent. of the issued share capital of the Company from
time to time.

9.2 The maximum number of Shares in respect of which Options may be granted under the Scheme to any
Eligible Participant (together with any Shares issued in respect of Options which have been
exercised by that Eligible Participant and any Shares which would be issued upon the exercise of
outstanding Options granted to that Eligible Participant) in any 12-month period up to the date of
the latest grant shall not exceed 1.0 per cent. of the issued share capital of the Company from
time to time, unless the relevant provisions of the Listing Rules are complied with.

9.3 The maximum number of Shares referred to in Clauses 9.1 and 9.2 shall be adjusted, in such
manner as the Auditors shall certify in writing to the Board to be fair

Page 10

 

and reasonable, in the event of capitalisation issue, rights issue, consolidation, subdivision or reduction 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 transfer to which the Company is a party.

10. Grant of Options to Connected Persons

10.1 The independent non-executive directors of the Company (excluding any independent
non-executive director of the Company who is the grantee of the Options) will be required to
approve each grant of Options to a director, chief executive, or substantial shareholder of the
Company or any of their respective associates.

10.2 If a grant of Options to a substantial shareholder or an independent non-executive director of
the Company or their respective associates will result in the total number of Shares issued and to
be issued upon exercise of Options 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 per cent. of the issued share capital of the Company from
time to time; and
	 
	(b)	 	having an aggregate value, based on the closing price of the Shares as stated in the Stock
Exchange’s daily quotations sheet at the date of each grant, in excess of HK$5 million,

such further grant of Options will be required to be approved (voting by way of poll) by the
shareholders of the Company. All Connected Persons of the Company will be required to abstain form
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 shareholder circular.

11. Cancellation

11.1 Options granted but not exercised or lapsed may be cancelled with the consent of the relevant
Grantee in accordance with the provisions of this Clause 11.

11.2 Cancellation of Options granted but not exercised must be approved by a resolution of the
Company in general meeting, with the relevant Grantees and their associates abstaining from voting.
Any vote taken at such meeting to approve such cancellations must be taken by poll.

11.3 The Grantees whose Options are cancelled pursuant to this Clause 11 may be issued new Options
in accordance with the provisions of the Scheme, provided unissued options are available under the
Scheme (excluding any Options cancelled).

12. Reorganisation of Capital Structure

12.1 In the event of any capitalisation issue, rights issue, consolidation, subdivision or
reduction of the share capital of the Company in accordance with applicable laws

Page 11

 

and regulatory requirements (other than an issue of Shares as consideration in respect of a transaction to which
the Company is a party), the Board shall make such corresponding adjustments (if any) to:

	(a)	 	the number or nominal amount of Shares, the subject matter of the Option (insofar as it is
unexercised); and/or
	 
	(b)	 	the aggregate number of Shares subject to outstanding Options; and/or
	 
	(c)	 	the Subscription Price; and/or
	 
	(d)	 	the method of exercise of the Option with respect to the Board Lot if the Option is being
exercised in part,

as the Auditors shall certify in writing to the Board to be in their opinion fair and reasonable,
provided that any adjustment 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 adjustment shall remain as nearly
as possible the same as that to which he was entitled before such adjustment, but so that no such
adjustment shall be made the effect of which would be to enable any Share to be issued at less than
its nominal value, or to increase the proportion of the issued share capital of the Company for
which any Grantee would have been entitled to subscribe had he exercised all the Options held by
him immediately prior to such adjustments. The capacity of the Auditors in this Clause 12 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 Auditors shall be borne by the Company.

12.2 If there has been any alteration in the capital structure of the Company as referred to in
Clause 12.1, the Company shall, upon receipt of a notice from the Grantee in accordance with Clause
7.2, inform the Grantee of such alteration and shall either inform the Grantee of the adjustment to
be made pursuant to the certificate of the Auditors obtained by the Company for such purpose, or if
no such certificate has yet been obtained, inform the Grantee of such fact and instruct the
Auditors to issue a certificate in that regard in accordance with Clause 12.1.

13. Share Capital

13.1 The exercise of any Option shall be subject to the members 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.

14. Disputes

14.1 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 Auditors who shall act as experts and not as arbitrators and whose decision shall
be final and binding.

Page 12

 

14.2 In the event that any party to the dispute referred to above does not agree to resolve the
relevant dispute in accordance with the procedures set out in Clause 14.1 or the Auditors are
unwilling to act in accordance with Clause 14.1, the dispute shall be settled by arbitration in
accordance with the UNCITRAL Arbitration Rules as at present in force and as may be amended by the
rest of this Clause 14.2.

	(a)	 	The appointing authority shall be the Hong Kong International Arbitration Centre (HKIAC).
	 
	(b)	 	The place of arbitration shall be in Hong Kong at the HKIAC.
	 
	(c)	 	There shall be only one arbitrator.
	 
	(d)	 	The language(s) to be used in the arbitral proceedings shall be English.

15. Alteration of the Scheme

15.1 Subject to Clause 15.2, the Board may amend any of the provisions of this Scheme and the terms
of the Options (including amendments in order to comply with changes in legal or regulatory
requirements) at any time.

15.2 Any alterations to the terms and conditions of the Scheme which are to the advantage of
Grantees, of a material nature or involve any change to the terms of Options granted shall be
subject to the approval of the Company in general meeting save where the alterations take effect automatically under the existing terms of the Scheme.

15.3 For the avoidance of doubt, all Options granted after the Effective Date shall, save and
except the Subscription Price, be bound by the rules of the Scheme as amended from time to time.

16. Termination

16.1 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 Options will be offered but the provisions of
the Scheme shall remain in full force in all other respects. All Options granted prior to such
termination shall continue to be valid and exercisable in accordance with the terms of the Scheme.

17. Miscellaneous

17.1 The Scheme shall not form a contract of employment or part of any existing contract of
employment between the relevant member of the Group and any Eligible Participant and the rights and
obligations of any Eligible Participant under the terms of his office or employment shall not be
affected by his participation in the Scheme or any right which he may have to participate in it and
the Scheme shall afford such an Eligible Participant no additional rights to compensation or
damages in consequence of the termination of such office or employment for any reason.

Page 13

 

17.2 The Scheme shall not confer on any person any legal or equitable rights (other than those
arising from or constituting the Options themselves) against the Company directly or indirectly or
give rise to any cause of action at law or in equity against the Company.

17.3 The Company shall bear the costs of establishing and administering the Scheme.

17.4 A Grantee shall be entitled to receive for information only copies of all notices and other
documents sent by the Company to holders of Shares generally.

17.5 Any notice or other communication between the Company and a Grantee may be given by sending
the same by post (postage prepaid and by airmail if sent to an address in a different territory) or
by personal delivery to, in the case of the Company, its principal place of business in Hong Kong
at 75th Floor, the Centre, Central, Hong Kong (and marked for the attention of the
Secretary) or as notified to the Grantees from time to time and, in the case of the Grantee, his
address as notified to the Company from time to time.

17.6 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.

17.7 A Grantee shall be responsible for complying with any requirements to be fulfilled in order to
obtain or obviate the necessity to obtain any consent under any relevant enactment or regulations
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 his
participation in the Scheme.

17.8 The Board shall have the power from time to time to make or vary regulations for the
administration and operation of the Scheme, provided that the same are not inconsistent with the
provisions of the Scheme.

17.9 The Scheme and all Options granted hereunder shall be governed by and construed in accordance
with Hong Kong law.

Page 14

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	Page	 
	 	 	 
	 	 	 	 
	1.	 	Definitions
	 	 	1	 
	 	 	 
	 	 	 	 
	2.	 	Purpose
	 	 	4	 
	 	 	 
	 	 	 	 
	3.	 	Conditions
	 	 	4	 
	 	 	 
	 	 	 	 
	4.	 	Duration and Administration
	 	 	4	 
	 	 	 
	 	 	 	 
	5.	 	Grant of Options
	 	 	4	 
	 	 	 
	 	 	 	 
	6.	 	Subscription Price
	 	 	5	 
	 	 	 
	 	 	 	 
	7.	 	Exercise of Options
	 	 	6	 
	 	 	 
	 	 	 	 
	8.	 	Lapse of Option
	 	 	9	 
	 	 	 
	 	 	 	 
	9.	 	Maximum number of Shares available for Subscription
	 	 	10	 
	 	 	 
	 	 	 	 
	10.	 	Grant of Options to Connected Persons
	 	 	11	 
	 	 	 
	 	 	 	 
	11.	 	Cancellation
	 	 	11	 
	 	 	 
	 	 	 	 
	12.	 	Reorganisation of Capital Structure
	 	 	11	 
	 	 	 
	 	 	 	 
	13.	 	Share Capital
	 	 	12	 
	 	 	 
	 	 	 	 
	14.	 	Disputes
	 	 	12	 
	 	 	 
	 	 	 	 
	15.	 	Alteration of the Scheme
	 	 	13	 
	 	 	 
	 	 	 	 
	16.	 	Termination
	 	 	13	 
	 	 	 
	 	 	 	 
	17.	 	Miscellaneous
	 	 	13	 

 

 

ADOPTED BY ORDINARY RESOLUTION

OF THE COMPANY ON 1 JUNE 2000 AND

AMENDED BY ORDINARY RESOLUTION

OF THE COMPANY ON 13 MAY 2002,

11 MAY 2007 AND 26 MAY 2009

CHINA UNICOM (HONG KONG) LIMITED

(formerly known as

“CHINA
UNICOM LIMITED ”)

(a company incorporated in Hong Kong with limited liability)

SHARE OPTION SCHEME

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