Document:

EX-4.7 PRE-GLOBAL OFFERING SHARE OPTION SCHEME

 

Exhibit 4.7

CHINA UNICOM LIMITED

(a company incorporated in Hong Kong with limited liability)

PRE-GLOBAL OFFERING SHARE OPTION SCHEME

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 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 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.

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	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 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;
	 
	 	 
	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;

2

 

	 	 	 
	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.

Conditions

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

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.

3

 

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 tracking 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.

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.

Subscription Price

5. 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.

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

4

 

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(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(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 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). Any such Options which are not exercised within the 12-month period (or
before the end of the Option Period, whichever is earlier) 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

5

 

	 	 	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 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

6

 

	 	 	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(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; and
	 
	(g)	 	in the event of a Mandatory Transfer and none of the events under Clause 7(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.

	 	 	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. 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 expiry of the 12-month period or the Option Period
(whichever is earlier), shall lapse automatically.

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.

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Lapse of Option

7. 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;
	 
	(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);
	 
	(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(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.

Maximum number of Shares available for Subscription

	8.1(a) 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.

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.

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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.

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 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.

Share Capital

11. 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

9

 

but unissued share capital of the Company to meet subsisting requirements on the exercise of
Options.

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 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.

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.

Termination

14. 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.

10

 

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.

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.

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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
	 	 	3	 
	 	 	 
	 	 	 	 
	3.	 	Duration and Administration
	 	 	3	 
	 	 	 
	 	 	 	 
	4.	 	Grant of Option
	 	 	4	 
	 	 	 
	 	 	 	 
	5.	 	Subscription Price
	 	 	4	 
	 	 	 
	 	 	 	 
	6.	 	Exercise of Options
	 	 	4	 
	 	 	 
	 	 	 	 
	7.	 	Lapse of Option
	 	 	8	 
	 	 	 
	 	 	 	 
	8.	 	Maximum number of Shares available for Subscription
	 	 	8	 
	 	 	 
	 	 	 	 
	9.	 	Cancellation
	 	 	8	 
	 	 	 
	 	 	 	 
	10.	 	Reorganisation of Capital Structure
	 	 	9	 
	 	 	 
	 	 	 	 
	11.	 	Share Capital
	 	 	9	 
	 	 	 
	 	 	 	 
	12.	 	Disputes
	 	 	10	 
	 	 	 
	 	 	 	 
	13.	 	Alteration of the Scheme
	 	 	10	 
	 	 	 
	 	 	 	 
	14.	 	Termination
	 	 	10	 
	 	 	 
	 	 	 	 
	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

AND ON 11 MAY 2007

CHINA UNICOM LIMITED

(a company incorporated in Hong Kong with limited liability)

PRE-GLOBAL OFFERING SHARE OPTION SCHEMEEX-4.9 SHARE OPTION SCHEME

 

Exhibit 4.9

CHINA UNICOM LIMITED

(a company incorporated in Hong Kong with limited liability)

SHARE OPTION SCHEME

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 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;
	 
	 	 
	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 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;
	 
	 	 
	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.

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

Purpose 

2. 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.

 

 

Conditions

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

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.

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 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.

Subscription Price

6. 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.

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(d) or 8(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(d)
or 8(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). Any such Options which have not been exercised by the expiry of the
12-month period or the Option Period (whichever is earlier) 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 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 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(d) or 8(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; and

 

 

	(g)	 	in the event of a Mandatory Transfer and none of the events under Clauses 8(d) or 8(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.

	 	 	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. 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 expiry of the 12-month period or the Option Period
(whichever is earlier), shall lapse automatically.

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.

Lapse of Option

8. 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;

 

 

	(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 one or more of the grounds specified
in this Clause 8(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.

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 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.

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.

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).

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 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.

 

 

Share Capital

13. 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.

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.

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.

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.

Termination

16. 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.

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.

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.

 

 

CONTENTS

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

AND ON 11 MAY 2007

CHINA UNICOM LIMITED

(a company incorporated in Hong Kong with limited liability)

SHARE OPTION SCHEME

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]