Document:

exv10w17

Exhibit 10.17

TRANSLATION FOR REFERENCE ONLY

 

LOAN AGREEMENT

 

Between

Yuanming Li

And

HiSoft Technology (Dalian) Co., Ltd.

Dated as of January 23, 2008

Loan Agreement

 

 

TRANSLATION FOR REFERENCE ONLY

Contents

	 	 	 	 	 	 	 

	Article 1

	 	Definitions
	 	 	2	 
	 
	 	 	 	 	 	 
	Article 2

	 	Amount and Interest Rate of the Loan
	 	 	3	 
	 
	 	 	 	 	 	 
	Article 3

	 	Purpose of the Loan
	 	 	3	 
	 
	 	 	 	 	 	 
	Article 4

	 	Withdrawal
	 	 	3	 
	 
	 	 	 	 	 	 
	Article 5

	 	Repayment and Early Repayment
	 	 	4	 
	 
	 	 	 	 	 	 
	Article 6

	 	Taxes and Fees
	 	 	4	 
	 
	 	 	 	 	 	 
	Article 7

	 	Confidentiality
	 	 	5	 
	 
	 	 	 	 	 	 
	Article 8

	 	Notices
	 	 	5	 
	 
	 	 	 	 	 	 
	Article 9

	 	Liabilities for Breach of Contract
	 	 	5	 
	 
	 	 	 	 	 	 
	Article 10

	 	Miscellaneous
	 	 	6	 

Loan Agreement

 

 

TRANSLATION FOR REFERENCE ONLY

LOAN AGREEMENT

This Loan Agreement (this “Agreement”) is entered into by and between the following parties in
Dalian on January 23, 2008:

	(1)	 	Yuanming Li, a PRC citizen with his ID Card No. being 21021119560326581x (the “Borrower”);
	 
	(2)	 	HiSoft Technology (Dalian) Co., Ltd., a wholly foreign owned enterprise incorporated under
the laws of PRC, with its registered address at No. 33 Lixian Street, Dalian High-Tech
Industrial Zone, Dalian, PRC (the “Lender”).

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

WHEREAS,

	1.	 	Dalian Haihui Sci-Tech Co., Ltd. (“Haihui Dalian”) is a company limited by shares
incorporated under the laws of PRC, with its registered address at No. 35 Lixian Street,
Dalian, PRC; as of the date of this Agreement, Yuanming Li is an existing shareholder of
Haihui Dalian, holding 96% of the shares in Haihui Dalian;
	 
	2.	 	As of the date of this Agreement, Haihui Dalian independently promotes and operates Dalian
Haihui Software Training Center (“Training Center”);
	 
	3.	 	The Borrower, the Lender, Haihui Dalian and HiSoft Technology International Limited (a
company incorporated under the laws of Cayman Islands, the parent company of the Lender,
hereinafter referred to as “HiSoft International”) executed the Binding Memorandum of
Understanding (the “Memorandum”) on September 30, 2007, pursuant to which the Borrower and the
other existing shareholders of Haihui Dalian will execute a share transfer agreement (the
“Domestic Share Transfer Agreement”) with the transferees designated by the Lender; pursuant
to the Domestic Share Transfer Agreement, the Borrower and the other existing shareholders of
Haihui Dalian will transfer to the designated transferees all of their respective shares in
Haihui Dalian (the “Proposed Domestic Share Transfer”), and the Borrower ensures that the
parties designated by the Lender will become all the shareholders of Haihui Dalian after
completion of the amendment registration with the relevant administration for industry and
commerce; for this purpose, the Borrower, the other existing shareholders of Haihui Dalian and
the parties designated by the Lender signed a share transfer agreement (the “Domestic Share
Transfer Agreement”) on the date of this Agreement;
	 
	4.	 	Pursuant to the Memorandum, the Borrower has reached agreement with Haihui Dalian that
subject to the Borrower’s due performance of other provisions in the Memorandum, Haihui Dalian
agrees to change the promoter of the Training Center to the third party designated by the
Lender, Dalian Borui Information Technology Co., Ltd. (i.e. “the Designated Third Party” under
the Memorandum, hereinafter referred to as “Dalian Borui”, such change hereinafter referred to
as the “Proposed Domestic Change”);
	 
	5.	 	Pursuant to the Memorandum, the Borrower has reached agreement with Haihui Dalian

					
	 	 	 	 	 
	Loan Agreement
	 	1
	 	 

 

 

TRANSLATION FOR REFERENCE ONLY

	 	 	that Haihui Dalian will transfer to the third party designated by the Lender, Dalian Borui, 40%
of the equity interest in JBDK held by Haihui Dalian (the “Proposed Offshore Change”); for this
purpose, Dalian Borui, Yuanming Li, Haihui Dalian and HiSoft International signed a stock
transfer agreement (the “Offshore Stock Transfer Agreement”) on the date of this Agreement;

	6.	 	Pursuant to the Memorandum, Dalian Borui will purchase the building located at No. 35 Lixian
Street, Dalian High-Tech Industrial Zone (with the property ownership certificate “Da Fang
Quan Zheng Gao Zi No. 20020213”) and owned by Haihui Dalian; for this puprose, Dalian Borui
and Haihui Dalian signed a building purchase agreement (the “Building Purchase Agreement”) and
a land use right transfer agreement (the “Land Use Right Transfer Agreement”) on the date of
this Agreement;
	 
	7.	 	Pursuant to the Memorandum, Dalian Borui will purchase an Audi A6 car (car plate number Liao
B-CK006 and model number WAUZZZ4B53N) owned by Haihui Dalian; for this puprose, Dalian Borui
and Haihui Dalian signed a vehicle purchase agreement (the “Vehicle Purchase Agreement”) on
the date of this Agreement;
	 
	8.	 	For the purposes described in the paragraphs 3, 4, 5, 6 and 7 above, the Borrower has
obtained necessary funding support from the Lender;
	 
	9.	 	On the date of this Agreement, the Borrower caused Kaiki Inc. to execute a deed of share
charge (the “Deed of Share Charge”) with the Borrower and the Lender pursuant to the
Borrower’s covenants under the Memorandum, and caused Kaiki Inc. to pledge 3,072,085 common
 shares in HiSoft International held by Kaiki to the Lender pursuant to the Deed of Share
Charge, to provide guarantee for the Borrower’s performance of its repayment obligation
hereunder.

In order to specify the rights and obligations of the Borrower and the Lender under the relevant
loan arrangement, the Parties hereby agree as follows:

Article 1 Definitions

	1.1	 	In this Agreement:
	 
	 	 	“Debts” means the outstanding amount under the loan;
	 
	 	 	“Effective Date” means the date on which the Parties hereto duly sign this Agreement;
	 
	 	 	“Loan” means the RMB loan extended by the Lender to the Borrower;
	 
	 	 	“China” or “PRC” means the People’s Republic of China, for the purpose of this Agreement,
excluding Hong Kong, Macao and Taiwan.
	 
	 	 	“Repayment Notice” has the meaning set forth in Article 5.4 hereof;
“Repayment Application” has the meaning set forth in Article 5.5 hereof;
“Such Rights” has the meaning set forth in Article 10.5 hereof;
	 
	1.2	 	Certain terms referred in this Agreement shall have the following meanings:

					
	 	 	 	 	 
	Loan Agreement
	 	2
	 	 

 

 

TRANSLATION FOR REFERENCE ONLY

	 	 	“Article” shall be interpreted as an article herein, unless the context otherwise stipulates;
	 
	 	 	“Taxes” shall be interpreted as to include taxes, fees, tariffs or other levies of the same
nature (including, but not limited to, any penalty or interest in relation to the failure or
delay in payment of such taxes);
	 
	 	 	“Borrower” and “Lender” shall be interpreted as to include the successors and transferees
permitted by the Parties based on their respective interests.
	 
	1.3	 	Unless it is otherwise indicated, references to this Agreement or other agreement or document
in this Agreement shall be interpreted as references to this Agreement, such agreement or
document as have been amended, changed, replaced or supplemented, or as may be amended,
changed, replaced or supplemented from time to time, as the case may be.
	 
	1.4	 	Unless the context otherwise requires, words importing the plural include the singular and
vice versa.

Article 2 Amount and Interest Rate of the Loan

	2.1	 	The Parties hereby confirm that the principal of the Loan to be extended by the Lender to the
Borrower shall be Renminbi sixteen million five hundred and seventy three thousand two hundred
and sixty (RMB16,573,260) in total.
	 
	2.2	 	The Loan hereunder bears an interest rate of zero, i.e. bears no interest.

Article 3 Purpose of the Loan

The Borrower shall use the Loan hereunder for the sole purpose as follows:

	(1)	 	The total amount of RMB11,676,615 is to be funded for the payment by Dalian Borui to Haihui
Dalian as the consideration of the Proposed Domestic Change, the building transfer price under
the Building Purchase Agreement, the land use right transfer price under the Land Use Right
Transfer Agreement, the vehicle transfer price under the Vehicle Purchase Agreement, and the
payment of the stock transfer price under the Offshore Stock Transfer Agreement to Haihui
Dalian by the third party designated by the Borrower;
	 
	(2)	 	The total amount of RMB4,896,645 is to be funded for the establishment of Dalian Borui and
the subsequent operation of the Training Center.

Article 4 Withdrawal

	4.1	 	The Loan hereunder shall be withdrawn by three installments as follows:
	 
	(1)	 	the first installment in the amount of RMB11,676,615, which shall be directly paid by the
Lender to Haihui Dalian; at the same time when Haihui Dalian signs the receipt confirmation,
the Borrower hereby confirms that it has received the amount in full on the date of this
Agreement, i.e. RMB11,676,615;
	 
	(2)	 	the second installment in the amount of RMB3,000,000, which shall be paid by the
Lender to the Borrower on the date of this Agreement;

					
	 	 	 	 	 
	Loan Agreement
	 	3
	 	 

 

 

TRANSLATION FOR REFERENCE ONLY

	(3)	 	the last installment in the amount of RMB1,896,645, which shall be withdrawn by the Borrower
only if the following conditions are satisfied or the Lender waives the following conditions:

	 	(i)	 	the share transfer transaction under the Domestic Share Transfer Agreement has been
completed, the Borrower and the other existing shareholders of Haihui Dalian have not
breached such agreement, and the Lender’s designated parties have become all the
shareholders of Haihui Dalian after the amendment registration with the relevant
administration for industry and commerce;
	 
	 	(ii)	 	the Borrower has duly signed a written resignation letter to resign from Haihui
Dalian, the Lender, the U.S. subsidiary and the Japan subsidiary as a director, and all
other positions from other affiliates of HiSoft International (if applicable); the Lender,
Haihui Dalian, the U.S. subsidiary, the Japan Subsidiary, and other affiliates of HiSoft
International (if applicable) have adopted necessary board resolutions and shareholders
resolutions with respect to such resignation;
	 
	 	(iii)	 	all Definitive Agreements defined under the Memorandum have been properly executed
(unless otherwise agreed by the relevant parties).

	 	 	The Borrower shall withdraw the last installment within one week after the abovementioned
conditions are satisfied or the Lender waives such conditions.

Article 5 Repayment and Early Repayment

	5.1	 	The repayment date hereunder shall be the expiration date of six (6) months after HiSoft
International completes the first initial public offering and Kaiki Inc. can freely transfer
the shares in HiSoft International held by it or the expiration date of three (3) years
following the date of this Agreement (whichever is earlier).
	 
	5.2	 	The Borrower shall repay all Debts hereunder in one lump sum on the repayment date.
	 
	5.3	 	If the Borrower fails to repay all or part of the Debts hereunder after such Debts are due,
it shall pay the Lender the liquidated damages with respect to such overdue payment from the
second date following the repayment date, at the interest rate of the loan interest rate for
the same period announced by the PRC People’s Bank plus two percent.
	 
	5.4	 	If the Borrower breaches any agreement under this Agreement or the Memorandum, at any time
after the occurrence of such breach, the Lender may, at its absolute sole discretion, deliver
a repayment notice (the “Repayment Notice”) to the Borrower thirty (30) days in advance to
request the Borrower to repay part or all of the Debts.
	 
	5.5	 	The Borrower may repay part or all of the Debts ahead of schedule at any time.

Article 6 Taxes and Fees

All taxes and fees in relation to the Loan shall be respectively borne by the Lender and the
Borrower pursuant to laws; if laws and regulations do not contain express provisions, each Party
shall bear 50% of such taxes and fees.

					
	 	 	 	 	 
	Loan Agreement
	 	4
	 	 

 

 

TRANSLATION FOR REFERENCE ONLY

Article 7 Confidentiality

	7.1	 	Whether this Agreement is terminated or not, the Borrower shall be obligated to keep
confidential of (i) the execution, performance and contents of this Agreement, (ii) the trade
secrets, proprietary information and client information of the Lender it becomes aware of or
receives due to the execution and implementation of this Agreement (collectively, the
“Confidential Information”). The Borrower may use such Confidential Information for the sole
purpose of performing its obligations hereunder. Without the written consent of the Lender,
the Borrower may not disclose such Confidential Information to any third party; otherwise, the
Borrower shall bear the liabilities for breach of contract and indemnify the Lender against
its losses.
	 
	7.2	 	Notwithstanding other provisions hereof, the validity of this Article 7 shall not be affected
by the suspension or termination of this Agreement.

Article 8 Notices

	8.1	 	Any notices, requests, demands and other communications required by this Agreement or made in
accordance with this Agreement shall be delivered to relevant Parties in writing based on the
following information:

	 	 	If to the Borrower:

	 	 	 	Address: No. 35 Lixian Street, High-Tech Industrial Zone, Dalian City (116023)
	 
	 	 	 	Attention: Yuanming Li
	 
	 	 	 	Facsimile: 0411-84792822

	 	 	If to the Lender:

	 	 	 	Address: No. 33 Lixian Street, High-Tech Industrial Zone, Dalian City (116023)
	 
	 	 	 	Attention: Xingjun Lin / Wei Zhang
	 
	 	 	 	Facsimile: 0411-84791350

	8.2	 	The above notices or other communications shall be deemed to have been given upon sending if
sent by facsimile, upon delivery if personally delivered, and three (3) days after mailing if
sent by mail.

Article 9 Liabilities for Breach of Contract

	9.1	 	Without prejudice to the Lender’s rights and remedies available under Article 5 hereof, the
Borrower undertakes that if the Lender suffers or incurs any action, charge, claim, cost,
damage, demand, fees, liabilities, loss and proceeding due to the Borrower’s violation of any
of its obligations hereunder, the Borrower will fully indemnify and hold the Lender harmless.
	 
	9.2	 	Notwithstanding other provisions hereof, the validity of this article shall not be affected
by the suspension or termination of this Agreement.

					
	 	 	 	 	 
	Loan Agreement
	 	5
	 	 

 

 

TRANSLATION FOR REFERENCE ONLY

Article 10 Miscellaneous

	10.1	 	This Agreement shall be prepared in the Chinese language in four (4) original copies, with
each Party holding two (2) copies.
	 
	10.2	 	Any dispute arising from this Agreement and in connection herewith shall be settled between
the Parties through negotiation. Should the Parties fail to reach agreement within thirty
(30) days after the occurrence of the dispute, such dispute shall be submitted to the China
International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in Beijing
in accordance with the then effective arbitration rules of CIETAC. The arbitration tribunal
shall consist of three (3) arbitrators familiar with applicable corporate and commercial legal
affairs. One (1) arbitrator shall be appointed by the Borrower, one (1) arbitrator shall be
appointed by the Lender and one (1) arbitrator shall be appointed by CIETAC chairman as
jointly entrusted by the Parties in accordance with applicable CIETAC rules. The arbitral
award shall be final and binding upon the Parties.
	 
	10.3	 	This Agreement and the Memorandum shall constitute the entire agreement between the Parties
with respect to the loan arrangement between the Parties. Any intention, understanding,
discussion, representation, guarantee, undertaking or covenant (whether express or implied,
written or oral) made by a Party or its agent to the other Party or its agent with respect to
the transactions hereunder shall be replaced by this Agreement and the Memorandum. If any
transaction contemplated by the Memorandum, including the loan arrangement hereunder, is not
completed by March 31, 2008, this Agreement shall be rescinded automatically and the Parties
agree to take all necessary actions to cancel and revoke all completed or ongoing
transactions, unless (i) the Parties otherwise agree in writing, (ii) the Memorandum otherwise
expressly stipulates, or (iii) the parties to the Memorandum agree in writing to continue the
loan arrangement hereunder.
	 
	10.4	 	Any rights, powers and remedies empowered to any Party by any provisions herein shall not
preclude any other rights, powers and remedies enjoyed by such Party in accordance with laws
and other provisions under this Agreement, and the exercise of its rights, powers and remedies
by a Party shall not preclude its exercise of its other rights, powers and remedies.
	 
	10.5	 	Any failure or delay by a Party in exercising any of its rights, powers and remedies
hereunder or in accordance with laws (“Such Rights”) shall not lead to a waiver of Such
Rights, and the waiver of any single or partial exercise of Such Rights shall not preclude
such Party from exercising such rights in any other way and exercising the remaining part of
Such Rights.
	 
	10.6	 	The headings of the Articles herein shall be used for reference only, and in no circumstances
shall such headings be used in or affect the interpretation of the provisions hereof.
	 
	10.7	 	Each provision contained herein shall be severable and independent from any other provision,
and if at any time any one or more articles herein become invalid, illegal or unenforceable,
the validity, legality or enforceability of the remaining provisions herein shall not be
affected as a result thereof.
	 
	10.8	 	Any amendments or supplements to this Agreement shall be made in writing and shall
take 

					
	 	 	 	 	 
	Loan Agreement
	 	6
	 	 

 

 

TRANSLATION FOR REFERENCE ONLY

	 	 	effect only when duly signed by the Parties to this Agreement.
	 
	10.9	 	The Borrower shall not assign any of its rights and/or obligations hereunder to any third
party, without the prior written consent of the Lender; by notifying the Borrower, the Lender
has the right to assign its rights and/or obligations hereunder to any third party designated
by it.
	 
	10.10	 	This Agreement shall be binding on the legal successors of the Parties.

[the remainder of this page is intentionally left blank]

					
	 	 	 	 	 
	Loan Agreement
	 	7
	 	 

 

 

TRANSLATION FOR REFERENCE ONLY

[Execution Page]

IN WITNESS WHEREOF, this Loan Agreement has been executed by the following Parties on the date and
at the place first above written.

	 	 	 	 	 
	Yuanming Li

 	 	 
	By:  	/s/ Yuanming Li
 	 	 
	 	 	 	 
	 	 	 	 
	 
	HiSoft Technology (Dalian) Co., Ltd.

[COMPANY SEAL]

 	 	 
	By:  	/s/ Loh Tiak Koon
 	 	 
	 	Name:  	Loh Tiak Koon 	 	 
	 	Title:  	Legal Representative 

January 31, 2008	 	 
	 

Loan Agreement Between HiSoft Dalian and Yuanming Li

 

 

TRANSLATION FOR REFERENCE ONLY

 

LOAN AGREEMENT

 

Between

Yuanming Li

And

HiSoft Technology (Dalian) Co., Ltd.

Dated as of January 23, 2008

Loan Agreement Between HiSoft Dalian and Yuanming Li

 

 

TRANSLATION FOR REFERENCE ONLY

LOAN AGREEMENT

This Loan Agreement (this “Agreement”) is entered into by and between the following parties in
Dalian on January 23, 2008:

	(3)	 	Yuanming Li, a PRC citizen with his ID Card No. being 21021119560326581x (the “Borrower”);
	 
	(4)	 	HiSoft Technology (Dalian) Co., Ltd., a limited liability company incorporated under the laws
of PRC, with its legal address at No. 33 Lixian Street, Dalian High-Tech Industrial Zone,
Dalian, PRC (the “Lender”).

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

WHEREAS,

	10.	 	Based on the terms and conditions of this Agreement, the Borrower borrows a loan from the
Lender in a total amount of RMB83,339.24 to establish and operate Dalian Borui Information
Technology Co., Ltd.;
	 
	11.	 	In order to specify the rights and obligations of the Borrower and the Lender under the
aforesaid loan arrangement, the Parties hereby agree as follows:

Article 1
Definitions

	1.5	 	In this Agreement:
	 
	 	 	“Effective Date” means the commencement date of the term of the loan hereunder, i.e. October 1,
2007;
	 
	 	 	“Loan” means the loan extended by the Lender to the Borrower under Article 2.1, in a principle
amount of RMB83,339.24;
	 
	 	 	“Borrowing Term” has the meaning set forth in Article 4.1 hereof;
	 
	 	 	“Amounts” means the outstanding amounts unpaid by the Borrower under the Loan;
	 
	 	 	“China” or “PRC” means the People’s Republic of China, for the purpose of this Agreement,
excluding Hong Kong, Macao and Taiwan.
	 
	1.6	 	Certain terms referred in this Agreement shall have the following meanings:
	 
	 	 	“Article” shall be interpreted as an article herein, unless the context otherwise stipulates;
	 
	 	 	“Taxes” shall be interpreted as to include taxes, fees, tariffs or other levies of the same
nature (including, but not limited to, any penalty or interest in relation to the failure or
delay in payment of such taxes);
	 
	 	 	“Borrower” and “Lender” shall be interpreted as to include the successors and transferees of
the Parties.

Loan Agreement Between HiSoft Dalian and Yuanming Li

 

 

TRANSLATION FOR REFERENCE ONLY

	1.7	 	Unless it is otherwise indicated, references to this Agreement or other agreement or document
in this Agreement shall be interpreted as to references to this Agreement, such agreement or
document as have been amended, changed, replaced or supplemented, or as may be amended,
changed, replaced or supplemented from time to time, as the case may be.

Article 2 Loan

	2.3	 	Based on the terms and conditions of this Agreement, the Lender agrees to provide, and has
provided, the Borrower with the Loan with the total principal of RMB83,339.24.
	 
	 	 	The Borrower may use the Loan hereunder for the sole purpose of establishing and operating
Dalian Borui Information Technology Co., Ltd. Without the prior written consent of the Lender,
the Borrower may not use the Loan for any other purpose.
	 
	2.4	 	The Parties confirm that the Borrower will perform the repayment obligation and other
obligations stipulated hereunder to the Lender pursuant to the provisions of this Agreement.

Article 3 Interest Rate

The Lender confirms that it will charge no interest on the Loan.

Article 4 Repayment

	4.2	 	The Borrower shall repay all Amounts in one lump sum on the date of this Agreement. At the
same time when the Borrower fully repays the Loan, the Lender shall sign a confirmation letter
in the form attached hereto as Appendix 1 to confirm the aforesaid repayment.
	 
	4.3	 	The Borrower shall repay the relevant Amounts in cash.

Article 5 Taxes and Fees

All taxes and fees in relation to the Loan shall be borne by the Borrower.

Article 6 Confidentiality

	6.1	 	Whether this Agreement is terminated or not, the Borrower shall be obligated to keep
confidential of the trade secrets, proprietary information and client information of the
Lender it becomes aware of or receives due to the signing and performance of this Agreement
(collectively, the “Confidential Information”). The Borrower may use such Confidential
Information for the sole purpose of performing its obligations hereunder. Without the written
consent of the Lender, the Borrower may not disclose such Confidential Information to any
third party; otherwise, the Borrower shall bear the liabilities for breach of contract and
compensate the Lender for its losses.
	 
	6.2	 	The following information shall not be Confidential Information:

	 	a)	 	any information previously acquired by the receiving party through legitimate manner
as indicated by written evidence;

Loan Agreement Between HiSoft Dalian and Yuanming Li

 

 

TRANSLATION FOR REFERENCE ONLY

	 	b)	 	any information available to the public not due to the fault of the receiving party;
or
	 
	 	c)	 	information acquired by the receiving party from other legitimate channel after its
receipt of the information.

	6.3	 	After the termination of this Agreement, when required by the Lender, the Borrower shall
return, destroy or otherwise dispose of all documents, materials or software containing the
Confidential Information, and cease the use of such Confidential Information.
	 
	6.4	 	Notwithstanding other provisions provided herein, the validity of this Article 6 shall not be
affected by the suspension or termination of this Agreement.

Article 7 Notices

	7.3	 	Any notices, requests, demands and other communications required by this Agreement or made in
accordance with this Agreement shall be delivered to relevant Parties in writing based on the
following information:
	 
	 	 	If to the Borrower:

	 	 	 	Address: No. 35 Lixian Street, High-Tech Industrial Zone, Dalian City (116023)
	 
	 	 	 	Attention: Yuanming Li
	 
	 	 	 	Facsimile: 0411-84792822

	 	 	If to the Lender:

	 	 	 	Address: No. 33 Lixian Street, High-Tech Industrial Zone, Dalian City (116023)
	 
	 	 	 	Attention: Wei Zhang
	 
	 	 	 	Facsimile: 0411-84791350

	7.4	 	The above notices or other communications shall be deemed to have been given upon sending if
sent by facsimile, upon delivery if personally delivered, and three (3) days after mailing if
sent by mail.

Article 8 Liabilities for Breach of Contract

	8.1	 	The Borrower undertakes that if the Lender suffers or incurs any action, charge, claim, cost,
damage, demand, fees, liabilities, loss and proceeding due to the Borrower’s violation of any
of its obligations hereunder, the Borrower will indemnify the Lender accordingly.
	 
	8.2	 	Notwithstanding other provisions hereof, the validity of this Article shall not be affected
by the suspension or termination of this Agreement.

Article 9 Miscellaneous

	9.1	 	This Agreement shall be formed after it is duly signed by the Parties; once formed, this
Agreement shall take effect retrospectively from the Effective Date.

Loan Agreement Between HiSoft Dalian and Yuanming Li

 

 

TRANSLATION FOR REFERENCE ONLY

	9.2	 	This Agreement shall be prepared in two (2) original copies, with each Party holding one (1)
copy.
	 
	9.3	 	Any dispute or controversy in connection with this Agreement shall be submitted to the China
International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in Beijing
in accordance with the then effective arbitration rules of CIETAC. The arbitration tribunal
shall consist of three (3) arbitrators familiar with applicable corporate and commercial legal
affairs. One (1) arbitrator shall be appointed by the Borrower, one (1) arbitrator shall be
appointed by the Lender and one (1) arbitrator shall be appointed by CIETAC chairman as
jointly entrusted by the Parties in accordance with applicable CIETAC rules. The arbitral
award shall be final and binding upon the Parties.
	 
	9.4	 	Any rights, powers and remedies empowered to any Party by any provisions herein shall not
preclude any other rights, powers and remedies enjoyed by such Party in accordance with laws
and other provisions under this Agreement, and the exercise of its rights, powers and remedies
by a Party shall not preclude its exercise of its other rights, powers and remedies.
	 
	9.5	 	Any failure or delay by a Party in exercising any of its rights, powers and remedies
hereunder or in accordance with laws (the “Party’s Rights”) shall not lead to a waiver of such
Rights, and the waiver of any single or partial exercise of such Party’s Rights shall not
preclude such Party from exercising such rights in any other way and exercising the remaining
part of such Party’s Rights.
	 
	9.6	 	The headings of the Articles herein shall be used for reference only, and in no circumstances
shall such headings be used in or affect the interpretation of the provisions hereof.
	 
	9.7	 	Each provision herein shall be severable and independent from any other provision, and if at
any time any one or more articles herein become invalid, illegal or unenforceable, the
validity, legality or enforceability of the remaining provisions herein shall not be affected
as a result thereof.
	 
	9.8	 	This Agreement shall replace all oral or written agreements, understanding and correspondence
undertaken by the Parties previously with respect to the standard contents of this Agreement
and its Appendixes. Any amendments or supplements to this Agreement shall be made in writing
and shall take effect only when duly signed by the Parties to this Agreement.
	 
	9.9	 	The Borrower shall not assign any of its rights and/or obligations hereunder to any third
party, without the prior written consent of the Lender; by notifying the Borrower, the Lender
has the right to assign its rights and/or obligations hereunder to any third party designated
by it.
	 
	9.10	 	This Agreement shall be binding on the legal assignees or successors of the Parties.

[the remainder of this page has been intentionally left blank.]

Loan Agreement Between HiSoft Dalian and Yuanming Li

 

 

TRANSLATION FOR REFERENCE ONLY

[Execution Page]

IN WITNESS WHEREOF, this Loan Agreement has been executed by the following Parties on the date and
at the place first above written.

	 	 	 	 	 
	Yuanming Li

 	 	 
	By:  	/s/ Yuanming Li
 	 	 
	 	 	 	 
	 	 	 	 
	 
	HiSoft Technology (Dalian) Co., Ltd.

[COMPANY SEAL]

 	 	 
	By:  	/s/ Loh Tiak Koon
 	 	 
	 	Name:  	Loh Tiak Koon 	 	 
	 	Title:  	Legal Representative 	 	 

 

 

	 	 	 	 	 

					
	 	 	 	 	 
	Confidential
	 	Execution Version
	 	 
	 	 	 	 	 
	Appendix 1:	 	 	 	 
	 	 	 	 	 
	 
	 	Confirmation Letter	 	 
	 	 	 	 	 
	Mr. Yuanming Li:	 	 	 	 

Our company and you entered into a Loan Agreement dated January 23, 2008. Our company hereby
confirm that you, as the debtor, repay the loan of RMB83,339.24 under the above Loan Agreement on
the date of this confirmation letter.

	 	 	 	 	 
	 	HiSoft Technology (Dalian) Co., Ltd.

(Seal)

 	 
	 	By   	 	 
	 	 	Name:  	Loh Tiak Koon 	 
	 	 	Title:  	Legal Representative 	 
	 

					
	 	 	 	 	 
	Appendix III of Share Transfer Agreement
	 	12exv10w18

Exhibit 10.18

			
	Strictly Confidential
	 	Execution Copy

DEED OF SHARE CHARGE

THIS
DEED is made on January 23, 2008

BETWEEN

	(1)	 	HiSoft Technology (Dalian) Co.. Ltd.
, a PRC
company wholly owned by HiSoft international (as defined below), whose
registered office is located at No. 33 Lixian Street, Hi-Tech Industrial Zone,
Dalian. P.R. China (“Secured Party”), on one side;

and

	(2)	 	Kaiki Inc., a British Virgin Islands company, whose registered office is located at
Romasco Place. Wickhams Cay 1, P.O.Box 3140, Road Town, Tortola, British
Virgin Islands (“Chargor”); and
	 
	(3)	 	Li Yuanming , a PRC individual whose ID Card Number is
21021119560326581X (“Mr. Li”); on the other side.
	 
	 	 	In this Deed, Chargor, Secured Party and Mr. Li may be individually referred to
as a “Party”, and collectively, the “Parties”.

BACKGROUND:

	(A)	 	As of the date of this Deed, Mr. Li holds, of record and
beneficially, 3,072
common shares in Chargor.
	 
	(B)	 	As of the date of this Deed, Chargor, holds, of record and
beneficially, 22,500,625
common shares, par value USD0:0001 per share, in HiSoft Technology
International Limited, an exempted company duly incorporated and validly
existing under the laws of the Cayman Islands, which is the parent company of the
Secured Party (“HiSoft International”).
	 
	(C)	 	In accordance with a Binding Memorandum of Understandings
among Mr. Li,
HiSoft International, the Secured Party, Dalian Haihui Sci-Tech Company
Limited (“Haihui Dalian”), dated September 30, 2007
(“MOU”). Mr. Li entered
into a loan agreement with the Secured Party on the even date herewith (the “Loan
Agreement”).
	 
	(D)	 	In accordance with the Loan Agreement, Mr. Li has borrowed a loan of
RMB16,573,260 from the Secured Party and is subject to the obligation to repay
the amount of RMB 16,573,260 in accordance with the provisions therein (the
“Repayment Obligations”).
	 
	(E)	 	It is contemplated that Chargor and Secured Party shall have executed and
delivered this Deed.

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	1	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATIONS
	 
	1.1	 	In this Deed:
	 
	 	 	“Charged Portfolio” means the Shares and the Related Assets.
	 
	 	 	“Collateral Rights” means all rights, powers and remedies of Secured Party provided by this
Deed or by law.
	 
	 	 	“Related Assets” means all dividends, interest and other monies payable in respect of the
Shares and all other rights, benefits and proceeds in respect of or derived from the Shares
(whether by way of redemption, bonus, preference, option, substitution, conversion or
otherwise).
	 
	 	 	“Secured Obligations” means the Repayment Obligations and any other payment obligation of
Mr. Li under the Loan Agreement.
	 
	 	 	“Shares” means 3,072,085 common shares in HiSoft International indirectly held by Mr. Li,
via Chargor as of the date of this Deed, par value USD0.0001 per share, as adjusted for
share split, share dividends, combinations, recapitalizations and similar events.
	 
	2.	 	COVENANT AND CHARGE
	 
	2.1	 	Chargor, as legal and beneficial owner, charges the Charged Portfolio, with full title
guarantee and by way of first fixed charge, in favour of Secured Party for the payment, all
the interest in the Charged Portfolio and discharge of all of the Secured Obligations.
	 
	3.	 	DEPOSIT OF CERTIFICATES
	 
	3.1	 	Chargor shall, on the date of this Deed, deposit with Secured Party all certificates
and other documents of title to the Shares in respect of the Shares.
	 
	3.2	 	Chargor shall, promptly upon the accrual, offer or issue of any Related Assets (in
the form of stocks, shares, warrants or other securities) in which Chargor has a
beneficial interest, procure the delivery to Secured Party of (a) all certificates and
other documents of title representing those Related Assets and (b) such stock
transfer forms or other instruments of transfer in respect of those Related Assets
as Secured Party may request.
	 
	3.3	 	Chargor hereby authorizes Mr. Wang Jiuchang  to execute stock transfer
forms to ensure the transfer of the Charged Portfolio into the name of such
nominee(s) of Secured Party as it shall require.

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	2	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	3.4	 	For the purpose of this Deed, Chargor shall execute a board resolution in the form
attached hereto as Exhibit A and an instruction letter in the form attached hereto
as Exhibit B simultaneously with its execution of this Deed.
	 
	3.5	 	Chargor hereby grants to Hisoft International at anytime an option, exercisable
upon any of the Secured Obligations becoming due and payable and have not
been paid on demand, to repurchase such number of Shares in the Charged
Portfolio which shall be calculated as follows:
	 
	 	 	C= B/A
	 
	 	 	A= the fair market value of the Shares, and for Shares which are publicly traded, the
average closing price of the Shares for the preceding calendar month shall be deemed as the
fair market value;
	 
	 	 	B= the amount due and payable of the Secured Obligations;
	 
	 	 	C= the number
of Shares subject to repurchase.
	 
	4.	 	VOTING RIGHTS AND DIVIDENDS
	 
	4.1	 	Prior to any of the Secured Obligations becoming due and payable and not having
been paid on demand,
	 
	 	 	Chargor shall not exercise such voting rights in any manner, or otherwise permit or agree to
any (i) variation of the rights attaching to or conferred by all or any part of the Charged
Portfolio, or (ii) increase in the issued share capital of any company whose shares are
charged pursuant to this Deed, which in the opinion of Secured Party would prejudice the
value of, or the ability of Secured Party to realise, the security created by this Deed.
	 
	4.2	 	If any of the Secured Obligations become due and payable and have not been
paid on demand, Secured Party may, at its discretion (in the name of Chargor or
otherwise and without any further consent or authority from Chargor or any prior
notice to Chargor):

	 	(a)	 	exercise (or refrain from exercising) any voting rights in respect of
the Charged Portfolio;
	 
	 	(b)	 	apply all dividends, interest and other monies arising from the Charged
Portfolio as though they were the proceeds of sale under this Deed;
	 
	 	(c)	 	transfer the Charged Portfolio into the name of such nominee(s) of
Secured Party as it shall require; and
	 
	 	(d)	 	exercise (or refrain from exercising) the powers and rights conferred
on or exercisable by the legal or beneficial owner of the Charged Portfolio

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	3	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	 	 	 	in each case in the manner and on the terms Secured Party
thinks fit, and the
proceeds of any such action (after deducting by Secured Party of reasonable
expenses in relation to such action) shall form part of the Charged Portfolio.

	5.	 	CHARGOR’S REPRESENTATIONS AND UNDERTAKINGS
	 
	5.1	 	Except with Secured Party’s prior written consent, Chargor shall not:

	 	(a)	 	assign or dispose of all or any part of the Charged Portfolio unless the
assignee undertakes to succeed the rights and obligations of Chargor under this Deed;
or
	 
	 	(b)	 	create, grant or permit to exist (i) any security interest over or (ii) any
restriction on the ability to transfer or realise, all or any part of the Charged
Portfolio;

	5.2	 	Chargor represents and warrants to Secured Party and undertakes for the duration
of this Deed that;

	 	(a)	 	it is, and will be, the sole legal and beneficial owner of the Charged
Portfolio free from any security interest or third party rights except as created by
this Deed;
	 
	 	(b)	 	it has not sold or disposed of, and will not sell or dispose of, the benefit
of all or any of its rights, title and interest in the Charged Portfolio including
(without limitation) all voting and other consensual powers pertaining to the Charged
Portfolio:
	 
	 	(c)	 	it has and will have the necessary power to enable it to enter into and perform its obligations under this Deed;
	 
	 	(d)	 	all necessary authorisations to enable it to enter into this Deed have been obtained and are, and will remain, in full force and effect:
	 
	 	(e)	 	this Deed constitutes its legal, valid and binding obligation
and is an effective security over the Charged Portfolio;
	 
	 	(f)	 	the execution, delivery and performance of this Deed will not violate any
provision of any requirement of law or contractual obligation to which either Chargor
or any of its assets is subject and will not result in the creation or imposition of
any lien or encumbrance on any of its properties or revenues pursuant to any
requirement of law or contractual obligation, except as contemplated hereby;
	 
	 	(g)	 	it is not necessary in order to ensure the validity, enforceability or
admissibility in evidence in proceedings of this Deed that any tax be paid in respect
thereof;

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	4	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	 	(h)	 	there is no litigation, arbitration, investigation or administrative proceeding of
or before any court, arbitrator or governmental authority currently pending or, to the
best knowledge of Chargor, threatened (i) with respect to this Deed or any of the
transactions contemplated hereby, or (ii) against or affecting Chargor or its property
and assets which is reasonably expected by Secured Party to have a material adverse
effect on the ability of Chargor to perform its obligations hereunder.

	5.3	 	Chargor represents to Secured Party that the Shares are fully paid and undertakes
to pay all calls or other payments due in respect of any part of the Charged
Portfolio. If Chargor fails to make any such payment Secured Party may make
that payment on behalf of Chargor and any sums so paid by Secured Party shall
be reimbursed by Chargor on demand, together with interest on those sums. Such
interest shall be calculated from the due date up to the actual date of payment
(after, as well as before, judgement) at the rate of 10%.
	 
	5.4	 	Mr. Li hereby represents and warrants to Secured Party that each of the
representations made by Chargor to Secured Party hereunder is true and accurate
in all aspects, and does not contain any misleading information.
	 
	6.	 	FURTHER ASSURANCE
	 
	6.1	 	At any time after the Secured Obligations have become due and payable but have
not been paid or discharged, Chargor shall upon demand from Secured Party
(a) procure the transfer of the Charged Portfolio into the name of Secured Party
or its nominee(s), agents or such purchasers as it shall direct and (b) execute all
documents and do all other things that Secured Party may require to facilitate the
realisation of the Charged Portfolio.
	 
	6.2	 	Mr. Li covenants to ensure the performance of the obligations of Chargor
hereunder in accordance with the provisions herein.
	 
	7.	 	POWER OF ATTORNEY
	 
	 	 	Chargor, by way of security, irrevocably appoints Secured Party to be its attorney and in
its name, on its behalf and as its act and deed to execute, deliver and perfect all
documents (including any stock transfer forms and other instruments
of transfer) and do all
things that Secured Party may consider to be necessary for (a) carrying out any obligation
imposed on Chargor under this Deed or (b) exercising any of the rights conferred on Secured
Party by this Deed or by law, (including, after the security constituted by this Deed has
become enforceable, the exercise of any right of a legal or a beneficial owner of the
Charged Portfolio). Chargor shall ratify and confirm all things done and all documents
executed by Secured Party in the exercise of that power of attorney.

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	5	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	8.	 	RECEIVER
	 
	8.1	 	Secured Party may by writing (acting through an authorised officer of Secured Party)
without notice to Chargor appoint one or more persons to be receiver of the whole or any
part of the Charged Portfolio (each such person being (a) entitled to act individually as
well as jointly and (b) for all purposes deemed to be the agent of Chargor) if:

	 	(a)	 	any of the Secured Obligations are due and payable but not paid or
discharged on demand;
	 
	 	(b)	 	a petition or application is presented for the making of an
administration order in relation to Chargor;
	 
	 	(c)	 	Chargor or any other person gives written notice of its intention to
appoint an administrator to Chargor; or
	 
	 	(d)	 	Chargor requests the appointment of a receiver.

	9.	 	EFFECTIVENESS OF COLLATERAL
	 
	9.1	 	The collateral constituted by this Deed and the Collateral Rights shall be
cumulative, in addition to and independent of every other security which Secured
Party may at any time hold for Secured Obligations or any rights, powers and
remedies provided by law. No prior security held by Secured Party over the
whole or any part of the Charged Portfolio shall merge into the collateral
constituted by this Deed.
	 
	9.2	 	This Deed shall remain in full force and effect as a continuing arrangement unless
and until Secured Party discharges it.
	 
	9.3	 	No failure to exercise, nor any delay in exercising, on the part of Secured Party,
any Collateral Right shall operate as a waiver, nor shall any single or partial
exercise of a Collateral Right prevent any further or other exercise of that or any
other Collateral Right.
	 
	9.4	 	If, at any time, any provision of this Deed is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions of this Deed nor the legality,
validity or enforceability of such provision under the law of any other jurisdiction
will in any way be affected or impaired.
	 
	9.5	 	None of Secured Party, its nominee(s) or any receiver appointed pursuant to this
Deed shall be liable by reason of (a) taking any action permitted by this Deed or
(b) any neglect or default in connection with the Charged Portfolio or (c) the
taking possession or realisation of all or any part of the Charged Portfolio, except
in the case of gross negligence or wilful default upon its part.

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	6	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	10.	 	COSTS AND EXPENSES
	 
	 	 	Mr. Li shall, on demand of Secured Party and Chargor, reimburse Secured Party and Chargor
on a full indemnity basis for all costs and expenses (including legal fees, stamp duties
and any value added tax) incurred in connection with (a) the execution of this Deed or
otherwise in relation to it, (b) the perfection or enforcement of the collateral
constituted by this Deed or (c) the exercise of any Collateral Right, together with
interest from the date the costs and expenses were incurred to the date of payment at such
rates as Secured Party and Charger may reasonably determine respectively.
	 
	11.	 	CURRENCY CONVERSION
	 
	 	 	For the purpose of or pending the discharge of any of the Secured Obligations Secured
Party may convert any money received, recovered or realised or subject to application by it
under this Deed from one currency to another, as Secured Party thinks fit; and any such
conversion shall be effected at the then prevailing commercial rate of exchange for
obtaining such other currency with the first currency.
	 
	12.	 	INDEMNITY
	 
	 	 	Chargor shall indemnify Secured Party against all losses,
liabilities, damages, costs and
expenses incurred by Secured Party in the enforcement of the execution or performance of the
terms and conditions hereof, its defense against any actions, proceedings, claims or demands
of third parties with respect to the Charged Portfolio, and all costs, charges and expenses
which are incurred, sustained or arise in respect of the non-performance or non-observance
of any of the undertakings and agreements on the part of Chargor or
Mr. Li, as the case may
be, herein contained or in respect of any matter or thing done or omitted relating in any
way whatsoever to the Charged Portfolio. Mr. Li shall take joint and several liability with
Chargor in respect of the performance of the foregoing sentence.
	 
	13.	 	NOTICES
	 
	13.1	 	Any notice required or permitted to be given in connection with this Deed shall be in
writing in the English language. Any notice shall be delivered to the following address:
	 
	 	 	To Secured Party

	 	 	 	Address: No. 33 Lixian Street, Hi-Tech Industrial Zone, Dalian, P.R.China, 116023
	 
	 	 	 	Attention: Mr. Heng Choon Lim / Ms. Jane Zhang
	 
	 	 	 	Facsimile: +86-411-84791350

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	7	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	 	 	To Chargor

	 	 	 	Address: No. 35 Lixian Street, Hi-Tech Zone, Dalian, China, 116023
	 
	 	 	 	Attention: Mr. Wang Jiuchang
	 
	 	 	 	Facsimile: +86-411-84791350

	 	 	To Mr. Li

	 	 	 	Address: No. 35 Lixian Street, Hi-Tech Zone, Dalian, China,
116023
	 
	 	 	 	Attention: Mr. Li Yuanming
	 
	 	 	 	Facsimile: +86-411-84792822

	13.2	 	Notice given under Article 13.1 shall be deemed to have been received by the
addressee:

	 	(a)	 	if by hand, upon delivery at the relevant address;
	 
	 	(b)	 	if by pre-paid registered mail, five (5) days after the date of posting; and
	 
	 	(c)	 	if by facsimile, at the time of dispatch thereof if there is an appropriate
confirmation of dispatch;

	 	 	and, if a particular department or officer is specified as part of its address details, if
addressed to that department or officer.

	13.3	 	Any communication or document to be made or delivered to Secured Party will
be effective only when actually received by Secured Party and then only if it is
expressly marked for the attention of the department or officer specified by
Secured Party for such purpose.
	 
	14.	 	SUCCESSORS
	 
	 	 	This Deed shall remain in effect despite any amalgamation or merger (however effected)
relating to Secured Party; and references to Secured Party shall include any assignee or
successor in title of Secured Party and any person who, under the laws of its jurisdiction
of incorporation or domicile, has assumed the rights and obligations of Secured Party under
this Deed or to which, under such laws, those rights and obligations have been transferred.
	 
	15.	 	GOVERNING LAW AND ARBITRATION
	 
	15.1	 	Governing Law
	 
	 	 	This Deed is governed by Hong Kong law.
	 
	15.2	 	Arbitration

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	8	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	 	(a)	 	Any dispute or controversy arising out of, relating to, or concerning any
interpretation, construction, performance or breach of this Deed, shall be
submitted to the China international Economic and Trade Arbitration
Commission (“CIETAC) for arbitration.
	 
	 	(b)	 	The arbitration shall be conducted in Beijing in accordance with the
then applicable arbitration rules of CIETAC.
	 
	 	(c)	 	There shall be three (3) arbitrators. One arbitrator shall be selected
collectively by Chargor and Mr. Li; one arbitrator shall be selected by Secured
Party; and the third arbitrator shall be assigned by CIETAC in accordance with the
then applicable arbitration rules of CIETAC.
	 
	 	(d)	 	The arbitration shall be conducted in English and Chinese. The arbitration award shall be final and binding upon the Parties hereto.

	16.	 	CONFIDENTIALITY
	 
	 	 	Each of the Parties hereto agrees to keep secret and confidential and not to disclose or
divulge to any third party or to enable or cause any person to become aware of any
confidential information relating to this Deed, and the transactions contemplated hereby
but excluding any information which is in the public domain (otherwise than through the
wrongful disclosure of any party) or which they are required to disclose by law or by the
rules of any competent regulatory body.
	 
	17.	 	TERMINATION AND CANCELLATION
	 
	 	 	This Deed shall be terminated upon occurrence of any of the following events:

	 	(a)	 	The Secured Obligations have been fully performed;
	 
	 	(b)	 	The Parties have entered into a written agreement in respect of the
early termination hereof;
	 
	 	(c)	 	In the case of failure to close any of the transactions (including the loan
arrangement) contemplated under the MOU by March 31, 2008, the transactions
contemplated under the MOU including the transactions contemplated under the Loan
Agreement and this Deed shall be cancelled automatically, and the Parties agree to
take all necessary actions to cancel and annul the completed or pending
transactions;

	18.	 	LANGUAGE
	 
	 	 	This Deed shall be executed in English and any Chinese version may only be used for
reference purposes.

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	9	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

	19.	 	EFFECTIVENESS
	 
	 	 	This Deed shall lake effect upon execution by the Parties.

[Remainder of this Page has been intentionally left blank]

	 	 	 	 	 	 	 

	Deed of Charge

	 	 	10	 	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

Exhibit A: Form of Kaiki Board Resolution

Kaiki Inc.

(incorporated in the British Virgin Islands with limited liability)

(the “Company”)

WRITTEN RESOLUTIONS OF ALL THE DIRECTORS OF THE COMPANY

The undersigned, being all of the directors of the Company, a business company limited by shares,
whose registered office is at Romasco Place, Wickhams Cay 1, Road Town, Tortola. British Virgin
Islands, pursuant to the authority to act without a meeting conferred by the Company’s articles of
association, HEREBY CONSENT to the following actions and adopt the resolutions set out below.

WHEREAS
Li Yuanming (“Mr Li”), a director and shareholder of the Company has entered into a
binding memorandum of undertakings among Mr. Li, HiSoft Technology International Limited, HiSoft
Technology (Dalian) Co., Ltd. (the “Secured Party”) and Dalian Haihui Sci-Tech Company Limited
whereby Mr. Li shall enter into a loan agreement (the “Loan Agreement”) with the Secured Party;

WHEREAS it is a condition precedent to the Loan Agreement that the Company execute and deliver a
Deed of Share Charge (the “Share Charge”):

WHEREAS the directors have carefully considered the funding and security arrangements to be put
into effect in connection with the foregoing;

IT WAS NOTED all the directors had declared their respective interests, if any. in accordance with
the Articles of Association of the Company with respect to the matters contemplated below, and that
none of the directors of the Company are prohibited by the Articles of Association of the Company
from approving and adopting by way of written resolutions any of the matters below.

IT WAS NOTED that notwithstanding the execution performance and/or enforcement of the Share
Charge, the Company would be able to pay its debts as they fell due.

NOW, THEREFORE, IT IS HEREBY RESOLVED that the Share Charge be and is hereby approved in all
respects with such changes therein and additions thereto as may be approved or deemed necessary,
appropriate or advisable by the Authorised Signatory (as hereinafter defined) of the Company
executing the same, the execution thereof by such Authorised Signatory to be conclusive evidence
of such approval or determination and that it was in the best interests of and commercial benefit
to, the Company to enter into the Share Charge;

IT IS FURTHER RESOLVED that Mr. Wang Jiuchang , whose PRC ID card number is 210211195210265835
(the “Authorised Signatory’’) be, and each of
them hereby is, authorised to execute and deliver,
in the name of and on behalf of the Company, the Share Charge and any other instruments,
documents, certificates, consents, assignments, notices and agreements contemplated thereby or
executed and delivered in connection therewith (the “Related
Documents”) with such changes, additions, modifications and terms as the

					
	 	 	 	 	 
	Deed of Charge-Exhibit A
	 	1
	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

Authorised Signatory executing the Share Charge and/or any Related Document in his or her
sole and absolute discretion shall approve, the execution thereof by such Authorised Signatory to
be conclusive evidence of such approval. Any document which is required or desirable to be
executed as a deed may be executed as a deed by the Authorised
Signatory as a deed;

IT IS FURTHER RESOLVED that the Authorised Signatory of the Company be, and each of them hereby
is authorised and directed to execute and deliver such additional documents and take such
additional actions, in the name of and on behalf of the Company as he or she may deem necessary or
appropriate in connection with and in the best interests of the Company to consummate the
transactions and comply with the Company’s obligations contemplated by the Share Charge and the
Related Documents and all matters in furtherance thereof, and do all such other acts and things as
the Authorised Signatory deem necessary, appropriate or advisable to carry out the purpose of the
foregoing recitals and resolutions, the execution thereof by the Authorised Signatory to be
conclusive evidence of such approval;

IT IS FURTHER RESOLVED that the Company make entries on the register of charges of the Company
maintained pursuant to Section 162 of the BVI Business Companies Act (“BVIBC Act”) in relation to
the Share Charge or Related Documents to which it is a party which create a charge, as defined in
the BVIBC Act, over assets of the Company and forward a copy of such register to its registered
agent to maintain with the Company’s records;

IT IS FURTHER RESOLVED that the registered agent of the Company be and is hereby authorised to
make application for any such charge to be registered by the Registrar of Corporate Affairs
pursuant to Section 163(1) of the BVIBC Act;

IT IS FURTHER RESOLVED that the Authorised Signatory be and is hereby authorised to sign any
document which is a deed and any other deed in connection with or pursuant to the Share Charge and
the Related Documents and to affix the Company’s common seal to any such document and to witness
and attest to the same as the Authorised Signatory shall in his/her sole discretion, consider
fit;

IT IS FURTHER RESOLVED that any and all actions heretofore or hereafter taken by the Authorised
Signatory of the Company in connection with the transactions contemplated by the Share Charge and
the Related Documents, or otherwise within the terms of the foregoing recitals and resolutions are
hereby ratified and confirmed in their entirety.

IN WITNESS WHEREOF, the undersigned have executed these resolutions in writing as of the date
indicated alongside his name below and acknowledges that the effective date of the resolution is as
of the last date indicated below.

					
	 	 	 	 	 
	Deed of Charge-Exhibit A
	 	2
	 	 

 

 

	 	 	 

	Strictly Confidential

	 	Execution Copy

	 	 	 

	/s/ Wang Jiuchang

	 	Date 2008.1.23
	 	 	 

	Wang Jiuchang
	 	 
	Director
	 	 
	 
	 	 
	/s/ Li Yuanming

	 	Date 2008.1.23
	 	 	 

	Li Yuanming
	 	 
	Director
	 	 

					
	 	 	 	 	 
	Deed of Charge-Exhibit A
	 	1
	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

Exhibit B: Form of Instruction Letter

[_______], 2008

	To:	 	 Codan Trust Company (Cayman) Limited
	 
	c/o: 	 	Conyers Dill & Pearman
	 
	 	 	2901, One Exchange Square 8 Connaught Place
	 
	 	 	Central Hong Kong

Dear Sirs:

HiSoft Technology International Limited (the “Company”)

Issue of share certificates

	 	 	I hereby confirm, on behalf of the Company, that you are instructed to split share
certificate no. 1  with respect to the 22,500,625 ordinary shares registered in the name of
Kaiki Inc. into the following denominations:

	 	 	 
	Number of Ordinary Shares	 	Name of shareholder
	 
	 	 
	19,428,540 ordinary shares

	 	Kaiki Inc.
	 
	 	 
	3,072,085 ordinary shares

	 	Kaiki Inc.

Yours
faithfully,

                         
                                   

Director

For and on behalf of HiSoft

Technology
International Limited

					
	 	 	 	 	 
	 	 	 	 	 
	Deed of Charge-Exhibit B
	 	1
	 	 

 

 

			
	Strictly Confidential
	 	Execution Copy

[_______], 2008

	To:	 	 Codan Trust Company (Cayman) Limited
	 
	c/o:	 	 Conyers Dill & Pearman
	 
	 	 	2901, One Exchange Square 8 Connaught Place
	 
	 	 	Central Hong Kong

Dear Sirs:

HiSoft Technology International Limited

Issue of share certificates

	 	 	I hereby confirm, on behalf of Kaiki Inc., that you are instructed to split share
certificate no. 1 with respect to the 22,500,625 ordinary shares registered in the name of
Kaiki Inc. into the following denominations:

	 	 	 
	Number of Ordinary Shares	 	Name of shareholder
	 
	 	 
	19,428,540 ordinary shares

	 	Kaiki Inc.
	 
	 	 
	3,072,085 ordinary shares

	 	Kaiki Inc.

	 	 	A copy of share certificate no. 1 is enclosed for your records.

Yours faithfully,

                           
                                 

Director

For and on behalf of

Kaiki Inc.

					
	 	 	 	 	 
	 	 	 	 	 
	Deed of Charge-Exhibit B
	 	2
	 	 

 

 

	Strictly Confidential            Execution Copy

	IN WITNESS WHEREOF this Deed has been signed on behalf of Secured Party and executed as a deed
by Chargor and Mr. Li and is intended to be and is hereby delivered by them as a deed on the date
specified above.

	Secured Party

	HiSoft Technology (Dai            ten) Co.. Ltd.

	By:

	Name: Loh            Tiak Koon

	Title: Leg ;al Representative

	Deed of charge            Signature Page I 

 

 

			
	Strictly Confidential
	 	Execution Copy

	Strictly Confidential            Execution Copy

Chargor

EXECUTED as a DEED

by the COMMON SEAL of

Kaiki Inc.

in the presence of:

       Director

 

                               
          Director/Secretary

Mr. Li

SIGNED as a DEED by

Li Yuanming 

in the presence of:

	 	 	 

	Signature of witness:

	 	
	Name of witness:

	 	
	Address of witness:

	 	
	Occupation of witness:

	 	

					
	 	 	 	 	 
	 	 	 	 	 
	Deed of Charge
	 	Signature Page 2
	 	 

 

 

Kaiki Board Resolution

Kaiki Inc.

(incorporated in the British Virgin Islands with limited liability)

(the “Company”)

WRITTEN RESOLUTIONS OF ALL THE DIRECTORS OF THE COMPANY

The
undersigned, being all of the directors of the Company, a business company limited by shares,
whose registered office is at Romasco Place, Wickhams Cay 1, Road Town, Tortola, British Virgin
Islands, pursuant to the authority to act without a meeting conferred by the Company’s articles of
association, HEREBY CONSENT to the following actions and adopt the resolutions set out below.

WHEREAS Li Yuanming (“Mr Li”), a director and shareholder of the Company has entered into a
binding memorandum of undertakings among Mr. Li, HiSoft Technology International Limited, HiSoft
Technology (Dalian) Co., Ltd. (the “Secured Party’’) and Dalian Haihui Sci-Tech Company Limited
whereby Mr. Li shall enter into a loan agreement (the “Loan Agreement”) with the Secured Party;

WHEREAS it is a condition precedent to the Loan Agreement that the Company execute and deliver a
Deed of Share Charge (the “Share Charge”):

WHEREAS the directors have carefully considered the funding and security arrangements to be put
into effect in connection with the foregoing;

IT WAS NOTED all the directors had declared their respective interests, if any, in accordance with
the Articles of Association of the Company with respect to the matters contemplated below, and that
none of the directors of the Company are prohibited by the Articles of Association of the Company
from approving and adopting by way of written resolutions any of the matters below.

IT WAS NOTED that notwithstanding the execution performance and/or enforcement of the Share
Charge, the Company would be able to pay its debts as they fell due.

NOW,
THEREFORE, IT IS HEREBY RESOLVED that the Share Charge be and is hereby approved in all
respects with such changes therein and additions thereto as may be approved or deemed necessary,
appropriate or advisable by the Authorised Signatory (as hereinafter defined) of the Company
executing the same, the execution thereof by such Authorised Signatory to be conclusive evidence
of such approval or determination and that it was in the best interests of, and commercial benefit
to, the Company to enter into the Share Charge;

IT IS FURTHER RESOLVED that Mr. Wang Jiuchang , whose PRC ID card number is 210211195210265835
(the “Authorised Signatory”) be, and each of them hereby is, authorised to execute and deliver,
in the name of and on behalf of the Company, the Share Charge and any other instruments,
documents, certificates, consents, assignments, notices and agreements contemplated thereby or
executed and delivered in connection therewith (the “Related Documents”) with such
changes, additions, modifications and terms as the

					
	 	 	 	 	 
	 	 	 	 	 
	Kaiki Resolution-HiSoft Share Charge
	 	Page 1 of 3
	 	 

 

 

Authorised Signatory executing the Share Charge and/or any Related Document in his or her
sole and absolute discretion shall approve, the execution thereof by such Authorised Signatory to
be conclusive evidence of such approval. Any document which is required or desirable to be
executed as a deed may be executed as a deed by the Authorised Signatory as a deed;

IT IS
FURTHER RESOLVED that the Authorised Signatory of the Company be,
and each of them hereby is,
authorised and directed to execute and deliver such additional documents and take such additional
actions, in the name of and on behalf of the Company as he or she may deem necessary or appropriate
in connection with and in the best interests of the Company to consummate the transactions and
comply with the Company’s obligations contemplated by the Share Charge and the Related Documents
and all matters in furtherance thereof, and do all such other acts and things as the Authorised
Signatory deem necessary, appropriate or advisable to carry out the purpose of the foregoing
recitals and resolutions, the execution thereof by the Authorised Signatory to be conclusive
evidence of such approval;

IT IS FURTHER RESOLVED that the Company make entries on the register of charges of the Company
maintained pursuant to Section 162 of the BVI Business Companies Act (“BVIBC Act”) in relation to
the Share Charge or Related Documents to which it is a party which create a charge, as defined in
the BVIBC Act, over assets of the Company and forward a copy of such register to its registered
agent to maintain with the Company’s records;

IT IS FURTHER RESOLVED that the registered agent of the Company be and is hereby authorised to make
application for any such charge to be registered by the Registrar of Corporate Affairs pursuant to
Section 163(1) of the BVIBC Act;

IT IS FURTHER RESOLVED that the Authorised Signatory be and is hereby authorised to sign any
document which is a deed and any other deed in connection with or pursuant to the Share Charge and
the Related Documents and to affix the Company’s common seal to any such document and to witness
and attest to the same as the Authorised Signatory shall in his/her sole discretion, consider fit;

IT IS FURTHER RESOLVED that any and all actions heretofore or hereafter taken by the Authorised
Signatory of the Company in connection with the transactions contemplated by the Share Charge and
the Related Documents, or otherwise within the terms of the foregoing recitals and resolutions are
hereby ratified and confirmed in their entirety.

IN WITNESS WHEREOF, the undersigned have executed these resolutions in writing as of the date
indicated alongside his name below and acknowledges that the effective date of the resolution is as
of the last date indicated below.

					
	 	 	 	 	 
	 	 	 	 	 
	Kaiki Resolution-HiSoft Share Charge
	 	Page 2 of 3
	 	 

 

 

	 	 	 	 	 
	 	 	 
	/s/ Wang Jiuchang
 	 	Date: January 23, 2008 
	Wang Jiuchang  	 	 
	Director 	 	 
	 

	 	 	 	 	 
	 	 	 
	/s/ Li Yuanming
 	 	Date: January 23, 2008 
	Li Yuanming  	 	 
	Director 	 	 
	 

					
	Kaiki Resolution-HiSoft Share Charge
	 	Page 3 of 3
	 	 

 

 

January 23, 2008

	To:	 	 Codan Trust Company (Cayman) Limited
	 
	c/o:	 	 Conyers Dili & Pearman
	 
	 	 	2901, One Exchange Square 8 Connaught Place
	 
	 	 	Central Hong Kong

Dear Sirs:

HiSoft Technology International Limited (the “Company”)

Issue of share certificates

	 	 	I hereby confirm, on behalf of the Company, that you are instructed to split share
certificate no.1 with respect to the 22,500,625 ordinary shares registered in the name of
Kaiki Inc. into the following denominations:

	 	 	 
	Number of Ordinary Shares	 	Name of shareholder
	 
	 	 
	19,428,540 ordinary shares

	 	Kaiki Inc.
	 
	 	 
	3,072,085 ordinary shares

	 	Kaiki Inc.

Yours
faithfully,

	 	 	 	 	 
	 	 	 
	/s/ Loh Tiak Koon
 	 	 
	Loh Tiak Koon 	 	 
	 	 	 
	 

Director

For and on behalf of HiSoft

Technology
International Limited

Instruction Letter

-HiSoft Share Charge

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