Document:

exv10w1

Exhibit 10.1

CAMELOT INFORMATION SYSTEMS INC.
AMENDED AND RESTATED 

2006 EQUITY INCENTIVE PLAN

Section 1. History and Purpose of Plan.

     On June 26, 2006 (the “Effective Date”),
the board of directors of Company (as hereinafter defined) adopted
the 2006 Equity Incentive Plan (such plan, the “Original 2006 Plan”), which was in Chinese. In contemplation of
the Company’s Public Offering (as hereinafter defined), the Board (as hereinafter defined) further
passed a resolution on May   , 2010 to
adopt this Amended and Restated 2006 Equity Incentive Plan (the “Plan”). The purpose of the Plan is
to provide additional incentive to those officers, employees, directors, consultants and other
service providers of the Company and its Subsidiaries (as hereinafter defined) whose contributions
are essential to the growth and success of the Company’s business, in order to strengthen the
commitment of such persons to the Company and its Subsidiaries, motivate such persons to faithfully
and diligently perform their responsibilities and attract and retain competent and dedicated
persons whose efforts will result in the long-term growth and profitability of the Company. To
accomplish such purposes, the Plan provides that the Company may grant Incentive Stock Options,
Nonqualified Stock Options, Restricted Stock, Restricted Stock Units and Other Awards
(each as hereinafter defined). This Plan is intended to further
detail the terms and conditions of the Original 2006 Plan and to bring the Company’s stock incentive
schemes to be more in line with those of similarly publicly-listed companies. From and after the consummation of a Public Offering (as
hereinafter defined), the Board may determine that the Plan is intended, to the extent applicable,
to satisfy the requirements of section 162(m) of the Code (as hereinafter defined) and shall be
interpreted in a manner consistent with the requirements thereof.

Section 2. Definitions.

For purposes of the Plan, the following terms shall be defined as set forth below:

	(a)	 	“Administrator” means the Board or, if and to the extent the Board does not administer the
Plan, the Committee or an executive officer appointed by the Board, in accordance with
Section 3 hereof.

	(b)	 	“Award” means an award of Incentive Stock Options, Nonqualified Stock Options, Restricted
Stock, Restricted Stock Units or Other Awards under the Plan.

	(c)	 	“Award Agreement” means, with respect to each Award, the written agreement between the
Company and the Participant setting forth the terms and conditions of the Award.

	(d)	 	“Board” means the Board of Directors of the Company.

	(e)	 	“Cause” means (1) the continued failure by the Participant substantially to perform his or
her duties and obligations to the Company, including without limitation repeated refusal to
follow the reasonable directions of the employer, knowing violation of law in the course of
performance of the duties of Participant’s employment with the Company, repeated absences from
work without a reasonable excuse, and intoxication with alcohol or illegal drugs while on the
Company’s premises during regular business hours (other than any such failure resulting from
his or her incapacity due to physical or mental illness); (2) fraud or material dishonesty
against the Company; (3) a
conviction or plea of guilty for the commission of a felony or a crime involving

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	 	 	material
dishonesty; or (4) the failure to meet reasonable and preestablished performance goals.
Determination of Cause shall be made by the Administrator in its sole discretion.

	(f)	 	“Change in Capitalization” means any increase, reduction, or change or exchange of Shares for
a different number or kind of shares or other securities or property by reason of a
reclassification, recapitalization, merger, consolidation, amalgamation, reorganization,
issuance of warrants or rights, stock dividend, stock split or reverse stock split,
combination or exchange of shares, repurchase of shares, change in corporate structure or
otherwise; or any other corporate action, such as declaration of a special dividend, that
affects the capitalization of the Company.

	(g)	 	“Change in Control” means the first to occur of any one of the events set forth in the
following paragraphs, provided that a Public Offering shall not constitute a Change in
Control:

	 	(i)	 	any Person is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company (not including
in the securities Beneficially Owned by such Person any securities acquired directly
from the Company) representing 50% or more of the Company’s then outstanding
securities, excluding any Person who becomes such a Beneficial Owner in connection with
a transaction described in clause (A) of paragraph (iii) hereof; or
	 
	 	(ii)	 	the following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the effective date of a Public
Offering, constitute the Board of Directors and any new director (other than a director
whose initial assumption of office is in connection with an actual or threatened
election contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the Board of
Directors or nomination for election by the Company’s shareholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors on the effective date of a Public Offering or whose
appointment, election or nomination for election was previously so approved or
recommended; or
	 
	 	(iii)	 	there is consummated a merger, consolidation or amalgamation of the Company
with any other corporation other than (A) a merger, consolidation or amalgamation which
results in the directors of the Company immediately prior to such merger or
consolidation continuing to constitute at least a majority of the board of directors of
the Company, the surviving entity or any parent thereof, or (B) a merger, consolidation
or amalgamation effected to implement a recapitalization of the Company (or similar
transaction) in which no Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company (not including in the securities Beneficially
Owned by such Person any securities acquired directly from the Company) representing
50% or more of the combined voting power of the Company’s then outstanding securities;
or

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	 	(iv)	 	the complete liquidation or dissolution of the Company or there is consummated
an agreement for the sale or disposition by the Company of all or substantially all of
the Company’s assets, other than a sale or disposition by the Company of all or
substantially all of the Company’s assets to an entity, at least 75% of the combined
voting power of the voting securities of which are owned by Persons in substantially
the same proportions as their ownership of the Company immediately prior to such sale.

	 	 	In addition, for each Award that constitutes deferred
compensation under Section 409A of the Code, a Change in Control
shall be deemed to have occurred under the Plan with respect to such
Award only if a change in the ownership or effective control of the
Company or a change in ownership of a substantial portion of the
assets of the Company shall also be deemed to have occurred under
Section 409A of the Code.

	(h)	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor thereto.

	(i)	 	“Committee” means any committee or subcommittee the Board may appoint to administer the Plan.
If at any time or to any extent the Board shall not administer the Plan, then the functions
of the Administrator specified in the Plan shall be exercised by the Committee.

	(j)	 	“Ordinary Shares” means the ordinary shares in the Company, no par value.

	(k)	 	“Company” means Camelot Information Systems Inc.

	(l)	 	“Date of Grant” means the date on which an Award is granted by resolutions of the Board or
the Committee or by an executive officer appointed by the Board.

	(m)	 	“Disability” means (1) any physical or mental condition that would qualify a Participant for
a disability benefit under any long-term disability plan maintained by the Company; (2) when
used in connection with the exercise of an Incentive Stock Option following termination of
employment, disability within the meaning of section 22(e)(3) of the Code; or (3) such other
condition as may be determined in the sole discretion of the Administrator to constitute
Disability.

	(n)	 	“Eligible Recipient” means an officer, director, employee, consultant, advisor or another
service provider of the Company or of any Parent or Subsidiary. “Recipient” is sometimes used
herein to describe an Eligible Recipient who has been granted an Award of Restricted Stock or
Restricted Stock Units.

	(o)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

	(p)	 	“Exercise Price” means the per share price at which a holder of an Option may purchase the
Shares issuable upon exercise of the Option.

	(q)	 	“Fair Market Value” as of a particular date shall mean the fair market value of a Share as
determined by the Administrator in its sole discretion; provided that (i) if the Shares are
admitted to trading on a national securities exchange, the fair market value of a Share shall
be the closing sale price reported for such share on such exchange on

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	 	 	the date of determination (or, if no closing sales price was reported on that date, on the
last trading date such closing sales price was reported), (ii) if the Shares are admitted to
quotation on the New York Stock Exchange (“NYSE”)
System or other comparable quotation system and has been designated as a National Market
System (“NMS”) security, the fair market value of a Share shall be the closing sale price
reported for such share on such system on the date of determination (or, if no closing sales
price was reported on that date, on the last trading date such closing sales price was
reported), (iii) if the Shares are admitted to quotation on the
NYSE System but have not
been designated as an NMS security, fair market value of a Share shall be the average of the
highest bid and lowest asked prices of such share on such system on the date of
determination (or, if no bid and ask prices were reported on that date, on the last trading
date such bid and ask prices were reported) or (iv) in the absence of an established market
for the Shares of the type described in (i), (ii) and (iii), above, the Fair Market Value
thereof shall be determined by the Administrator in good faith. If
the Shares are not publicly traded at the time a determination of
Fair Market Value is made, the Board shall determine the Fair Market
Value in such manner as it deems appropriate which shall be based on
the advice of an independent investment banker or appraiser
recognized to be an expert in making such valuations and, to the
extent applicable, such determination shall be made in a manner that
satisfies Sections 409A and Section 422(c)(1) of the Code.

	(r)	 	“Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister-in-law, including adoptive relationships of the Participant; trusts for the benefit of
such immediate family members; or partnerships in which such immediate family members are the
only partners.

	(s)	 	“Incentive Stock Option” shall mean an Option that is an “incentive stock option” within the
meaning of section 422 of the Code, or any successor provision, and that is designated by the
Committee or an executive officer appointed by the Board as an Incentive Stock Option. To the
extent any of the Options granted do not qualify as Incentive Stock Options, they shall
automatically be treated as Nonqualified Stock Options (as defined hereinafter).

	(t)	 	“Nonqualified Stock Option” means any Option that is not an Incentive Stock Option, including
any Option that provides (as of the time such Option is granted) that it will not be treated
as an Incentive Stock Option. Any Option awarded to an employee who is not a U.S. taxpayer
within the meaning of the Code will be treated as Nonqualified Stock Option.

	(u)	 	“Option” means an Incentive Stock Option, a Nonqualified Stock Option, or either or both of
them, as the context requires.

	(v)	 	“Other Award” means an Award granted pursuant to Section 13 hereof.

	(w)	 	“Parent” means any corporation (other than the Company) in an unbroken chain of corporations
ending with the Company, if each of the corporations in the chain (other than the Company)
owns stock possessing 50% or more of the combined voting power of all classes of stock in one
of the other corporations in the chain.

	(x)	 	“Participant” means any Eligible Recipient selected by the Administrator, pursuant to the
Administrator’s authority in Section 3 hereof, to receive grants of Options or awards of
Restricted Stock, Restricted Stock Units or Other Awards. A Participant who receives the
grant of an Option is sometimes referred to herein as “Optionee.”

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	(y)	 	“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the
Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its affiliates, (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, or (iv) a
corporation owned, directly or indirectly, by the shareholders of the Company in substantially
the same proportions as their ownership of stock of the Company.

	(z)	 	“Public Offering” means the first underwritten initial public offering of Shares by the
Company.

	(aa)	 	“Restricted Stock” means Shares subject to certain restrictions granted pursuant to Section 8
hereof.

	(ab)	 	“Restricted Stock Units” means the right to receive in cash or Shares the Fair Market Value
of the Shares granted pursuant to Section 8 hereof.

	(ac)	 	“Shares” means Ordinary Shares and any successor security.

	(ad)	 	“Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations (other than the last
corporation) in the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in the chain.

Section 3. Administration.

	 	(a)	 	The Plan shall be administered by the Board or, at the Board’s sole discretion, by the
Committee, or by an executive officer appointed by the Board, which shall serve at the
pleasure of the Board. Pursuant to the terms of the Plan, the Administrator shall have the
power and authority, without limitation:

	 	(i)	 	to select those Eligible Recipients who shall be Participants;
	 
	 	(ii)	 	to determine whether and to what extent Options or awards of Restricted Stock,
Restricted Stock Units or Other Awards are to be granted hereunder to Participants;
	 
	 	(iii)	 	to determine the number of Shares to be covered by each Award granted
hereunder;
	 
	 	(iv)	 	to determine the terms and conditions, not inconsistent with the terms of the
Plan, of each Award granted hereunder;
	 
	 	(v)	 	to determine the terms and conditions, not inconsistent with the terms of the
Plan, which shall govern all written instruments evidencing Options or awards of
Restricted Stock, Restricted Stock Units or Other Awards granted hereunder;

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	 	(vi)	 	to adopt, alter and repeal such administrative rules, guidelines and practices
governing the Plan as it shall from time to time deem advisable; and
	 
	 	(vii)	 	to interpret the terms and provisions of the Plan and any Award issued under
the Plan (and any Award Agreement relating thereto), and to otherwise supervise the
administration of the Plan.

	(b)	 	The Administrator may, in its absolute discretion, without amendment to the Plan, (i)
accelerate the date on which any Option granted under the Plan becomes exercisable, waive or
amend the operation of Plan provisions respecting exercise after termination of employment or
otherwise adjust any of the terms of such Option, and (ii) accelerate the lapse of
restrictions, or waive any condition imposed hereunder, with respect to any share of
Restricted Stock or Restricted Stock Unit or otherwise adjust any of the terms applicable to
any such Award; provided that no action under this Section 3(b) shall adversely affect any
outstanding Award without the consent of the holder thereof.

	(c)	 	All decisions made by the Administrator pursuant to the provisions of the Plan shall be
final, conclusive and binding on all persons, including the Company and the Participants. No
member of the Board or the Committee, nor any officer or employee of the Company acting on
behalf of the Board or the Committee, shall be personally liable for any action,
determination, or interpretation taken or made in good faith with respect to the Plan, and all
members of the Board or the Committee and each and any officer or employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully indemnified and
protected by the Company in respect of any such action, determination or interpretation.

Section 4. Shares Reserved for Issuance Under the Plan.

	(a)	 	Subject to Section 5 hereinafter and any amendment to the Plan, the maximum aggregate number
of Shares with respect of which Awards may be granted under this Plan
shall not exceed 23,498,012 shares; provided that not more than
one-half of the authorized number may be issued in the form of
Incentive Stock Options. Such Shares may consist, in whole or in part, of authorized and unissued Shares or
treasury shares.

	(b)	 	To the extent that (i) an Option expires or is otherwise cancelled or terminated without
being exercised, or (ii) any Shares subject to any award of Restricted Stock, Restricted Stock
Units or Other Awards are forfeited, such Shares shall again be available for issuance in
connection with future Awards granted under the Plan. To the extent not prohibited by the
listing requirements of the NYSE (or other established stock exchange or
national market system on which the Ordinary Shares are traded) and applicable law, any Shares
covered by an Award which are surrendered (i) in payment of the Award exercise or purchase
price or (ii) in satisfaction of tax withholding obligations incident to the exercise of an
Award shall be deemed not to have been issued for purposes of determining the maximum number
of Shares which may be issued pursuant to all Awards under the Plan, unless otherwise
determined by the Administrator.

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Section 5. Equitable Adjustments

     In the event of any Change in Capitalization, an equitable substitution or proportionate
adjustment shall be made in (i) the aggregate number and/or kind of shares of stock reserved for
issuance under the Plan, (ii) the kind, number and/or option price of ordinary shares or other
property subject to outstanding Options granted under the Plan, and (iii) the kind, number and/or
purchase price of ordinary shares or other property subject to outstanding awards of Restricted
Stock, Restricted Stock Units and Other Awards granted under the Plan. Such other equitable
substitutions or adjustments shall be made as may be determined by the Administrator. Without
limiting the generality of the foregoing, in connection with a Change in Capitalization, the
Administrator may provide for either (x) the cancellation of any Awards outstanding upon the
consummation of the Change in Capitalization or (y) the cancellation of any outstanding Awards in
exchange for payment in cash or other property of the Fair Market Value of the Shares covered by
such Awards, reduced, in the case of Options, by the exercise price thereof.

Section 6. Eligibility.

     The Participants under the Plan shall be selected from time to time by the Administrator, in
its sole discretion, from among Eligible Recipients. The Administrator shall have the authority to
grant to any Eligible Recipient Incentive Stock Options, Nonqualified Stock Options, Restricted
Stock, Restricted Stock Units or Other Awards, provided that directors of the Company or any Parent
or Subsidiary who are not also employees of the Company or of any Parent or Subsidiary, and
consultants or advisors to the Company or to any Parent or Subsidiary may not be granted Incentive
Stock Options.

Section 7. Options.

	(a)	 	General. All Options under the Plan shall be granted by the Committee or an executive
officer appointed by the Board, and before such Committee is established or such executive
officer is appointed, by the Board. Options may be granted alone or in addition to other
Awards granted under the Plan. Any Option granted under the Plan shall be evidenced by an
Award Agreement in such form as the Administrator may from time to time approve. The
provisions of each Option need not be the same with respect to each Participant. Participants
who are granted Options shall enter into an Award Agreement with the Company, in such form as
the Administrator shall determine, which Award Agreement shall set forth, among other things,
the Exercise Price of the Option, the term of the Option and provisions regarding
exercisability of the Option granted thereunder. The Options granted under the Plan may be of
two types: (i) Incentive Stock Options and (ii) Nonqualified Stock Options. To the extent
that any Option does not qualify as an Incentive Stock Option, it shall constitute a separate
Nonqualified Stock Option. More than one Option may be granted to the same Participant and be
outstanding concurrently hereunder. Options granted under the Plan shall be subject to the
terms and conditions set forth in paragraphs (b)-(m) of this Section 7 and shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as the
Administrator shall deem desirable.
	 
	(b)	 	Exercise Price. In the case of Non-Qualified Stock Option, the per share Exercise Price of
Shares purchasable under an Option shall be determined by the Administrator

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	 	 	in its sole discretion at the time of grant. In the case of Incentive Stock Option, the per
share Exercise Price of Shares purchasable under an Option shall not be less than 100% of
the Fair Market Value per Share at the time of grant (or 110% of the Fair Market Value per
Share at the time of grant if at such time the Eligible Recipient owns (or is deemed to own
under the Code) stock possessing more than ten percent (a “Ten Percent Owner”) of the total
combined voting power of the Company or any Parent or Subsidiary of the Company).
	 
	(c)	 	Option Term. The term of each Option shall be fixed by the Administrator, but no Option
shall be exercisable more than eight years after the date such Option is granted.
	 
	(d)	 	Exercisability. Options shall vest and become exercisable as set forth in the Award
Agreement. The Administrator may waive such exercise provisions at any time, in whole or in
part, based on such factors as the Administrator may determine in its sole discretion.
	 
	(e)	 	Method of Exercise. Options may be exercised in whole or in part by giving written notice of
exercise to the Company specifying the number of Shares to be purchased, accompanied by
payment in full of the aggregate Exercise Price of the Shares so purchased in cash or its
equivalent, as determined by the Administrator. As determined by the Administrator, in its
sole discretion, payment in whole or in part may also be made (i) by means of any broker’s
cashless exercise procedure approved by the Administrator, (ii) in the form of unrestricted
Shares or Restricted Stock already owned by the Optionee which, (x) in the case of
unrestricted Shares acquired upon exercise of an Option, have been owned by the Optionee for
more than six months on the date of surrender, or such other period as determined by the
Committee or an executive officer appointed by the Board to be necessary to avoid adverse
accounting consequences and (y) has a Fair Market Value on the date of surrender equal to the
aggregate option price of the Shares as to which such Option shall be exercised, (iii) any
other form of consideration approved by the Administrator and permitted by applicable law or
(iv) any combination of the foregoing. If payment of the Exercise Price is made in whole or
in part in the form of Restricted Stock, the Shares received upon the exercise of such Option
shall be restricted in accordance with the original terms of the Restricted Stock award in
question, except that the Administrator may direct that such restrictions shall apply only to
that number of Shares equal to the number of Shares surrendered upon the exercise of such
Option.
	 
	(f)	 	Rights as Shareholder. An Optionee shall have no rights to dividends or any other rights of
a shareholder with respect to the Shares subject to the Option until the Optionee has given
written notice of exercise, has paid in full for such Shares, has satisfied the requirements
of Section 12 hereof and, if requested, has given the representation described in paragraph
(b) of Section 13 hereof.

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	(g)	 	Change or Reduction in Position, Role, Title or Function. If an Optionee’s position,
role, title or function is changed or reduced due to his/her inability to perform the
duties and responsibilities assigned to him/her, the Company may reduce or cancel
such Optionee’s unvested Options; furthermore, at the sole
discretion of the Company, the Company may purchase any vested Options
from such Optionee at the then-current
market price of the underlying Shares and such Optionee shall sell such vested Options to the Company if the
Company chooses to exercise such right.

	 
	(h)	 	Termination of Employment or Service. If an Optionee’s employment with or service as a
director, consultant or advisor to the Company or to any Parent or Subsidiary is voluntarily
terminated by such Optionee or terminated due to retirement, the
unvested Options held by the Optionee shall be
cancelled immediately upon termination while the vested Options shall
become exercisable, at the Exercise Price at the date of termination,
for a period of thirty (30) days following the termination of the
Optionee. Upon the expiration of the thirty (30) day exercise period,
all vested but unexercised Options shall be cancelled immediately.
The Company shall have the right of first refusal to purchase any
Shares issued to the Optionee upon the exercise of the vested Options
described in this Section 7(h).
	 
	 	 	In the event of the termination of an Optionee’s employment for Cause, all
Options, including both vested and unvested Options, shall be cancelled immediately upon termination. The
Optionee shall immediately remit to the Company any profits resulting
from or in connection with the Optionees exercise of the vested
Options.
	 
	(i)	 	Death or Disability. In the event of Disability or death of an Optionee, all the Options
granted shall become vested automatically pursuant to the vesting schedule as set forth in the
Award Agreement. The vested Options shall be exercised within one year subject to the
Company’s right of first refusal.
	 
	(j)	 	No Acceleration upon Change in Control. Unless the Administrator determines otherwise, in
the event that a Change in Control occurs, all Options under the Plan which are outstanding at
such time shall maintain their original vesting schedule; provided that in the event of a
Change in Control that is a complete liquidation or dissolution of the Company, all Options
outstanding at the time of such Change in Control shall terminate without further action by
any person.
	 
	(k)	 	Right of First Refusal. In the event that the Optionee transfers the Options, the Company
is entitled to be first offered the opportunity to purchase the Options according to the
Exercise Price on that date.
	 
	(l)	 	Limitation on Incentive Stock Options. To the extent that the aggregate Fair Market Value of
Shares with respect to which Incentive Stock Options are exercisable for the first time by an
Optionee during any calendar year under the Plan and any other stock option plan of the
Company shall exceed US$100,000, such excess Options, to the extent of the Shares covered
thereby in excess of the foregoing limitation, shall be treated as Nonqualified Stock Options.
Such Fair Market Value shall be determined as of the date on which each such Incentive Stock
Option is granted.

Section 8. Restricted Stock and Restricted Stock Units.

	(a)	 	General. Awards of Restricted Stock and Restricted Stock Units may be issued either alone or
in addition to other Awards granted under the Plan and shall be evidenced by an Award
Agreement. The Administrator shall determine the Eligible Recipients to whom, and the time or
times at which, Awards of Restricted Stock and Restricted Stock Units shall be made; the
number of Shares and/or Units to be awarded; the price, if any, to be paid by the Participant
for the acquisition of Restricted Stock; and the Restricted Period (as defined in Section
8(d)) applicable to awards of Restricted Stock and Restricted Stock Units. The provisions of
the awards of Restricted Stock or Restricted Stock Units need not be the same with respect to
each Participant.

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	(b)	 	Purchase Price. The price per Share, if any, that a Recipient must pay for Shares
purchasable under an award of Restricted Stock shall be determined by the Administrator in its
sole discretion at the time of grant.
	 
	(c)	 	Awards and Certificates. The prospective recipient of an Award of Restricted Stock shall not
have any rights with respect to any such Award, unless and until such recipient has executed
an Award Agreement evidencing the Award and delivered a fully executed copy thereof to the
Company, within such period as the Administrator may specify after the award date. Each
Participant who is granted an award of Restricted Stock shall be issued a stock certificate in
respect of such shares of Restricted Stock, which certificate shall be registered in the name
of the Participant and shall bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to any such Award; provided that the Company may require that the
stock certificates evidencing Restricted Stock granted hereunder be held in the custody of the
Company until the restrictions thereon shall have lapsed, and that, as a condition of any
award of Restricted Stock, the Participant shall have delivered a stock power, endorsed in
blank, relating to the Shares covered by such Award.
	 
	(d)	 	Limitation on Transferability. The Participant shall not transfer shares of Restricted Stock
and Restricted Stock Units granted within one year after the date of Public Offering except by
will or the laws of descent and distribution
	 
	(e)	 	Rights as a Shareholder. Except as provided in Section 8(c), the Participant shall possess
all incidents of ownership with respect to Shares of Restricted Stock during the Restricted
Period, including the right to receive or reinvest dividends with respect to such Shares and
to vote such Shares. Certificates for unrestricted Shares shall be delivered to the
Participant promptly after, and only after, the Restricted Period shall expire without
forfeiture in respect of such awards of Restricted Stock except as the Administrator, in its
sole discretion, shall otherwise determine. A Participant who is awarded Restricted Stock
Units shall posses no incidents of ownership with respect to the Units, provided that the
Award Agreement may provide for payments in lieu of dividends to such Participant.
	 
	(f)	 	Termination of Employment. The rights of Participants granted Awards of Restricted Stock or
Restricted Stock Units upon termination of employment or service as a director, consultant or
advisor to the Company or to any Parent or Subsidiary for any reason during the Restricted
Period shall be set forth in the Award Agreement governing such Awards. Unless the
Administrator determines otherwise, the Company shall have a repurchase right with respect to
Restricted Stock and Restricted Stock Units exercisable during the Restricted Period upon the
voluntary or involuntary termination of the Participant’s employment or service with the
Company for any reason prior to the occurrence of a Public Offering. The purchase price for
Shares repurchased pursuant to the Award Agreement shall be no less than the price paid by the
Participant and may be paid by cancellation of any indebtedness of the Participant to the
Company. The repurchase right shall lapse at a rate determined by the Administrator.
	 
	(g)	 	Effect of Change in Control. Unless the Administrator determines otherwise, in the event
that a Change in Control occurs, all outstanding Shares of Restricted Stock and

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	 	 	all Restricted Stock Units held by such Recipient which have not theretofore vested shall
immediately vest and all restrictions on such Shares shall immediately lapse.

Section 9. Other Awards.

     Other forms of Awards (“Other Awards”) valued in whole or in part by reference to, or
otherwise based on, the Ordinary Shares may be granted either alone or in addition to other Awards
under the Plan. Subject to the provisions of the Plan, the Administrator shall have sole and
complete authority to determine the persons to whom and the time or times at which such Other
Awards shall be granted, the number of Shares to be granted pursuant to such Other Awards and all
other conditions of such Other Awards.

Section 10. Amendment and Termination.

     The Board may amend, alter or discontinue the Plan, but no amendment, alteration, or
discontinuation shall be made that would impair the rights of a Participant under any Award
theretofore granted without such Participant’s consent. Unless the Board determines otherwise, the
Board shall obtain approval of the Company’s shareholders for any amendment that would require such
approval in order to satisfy the requirements of section 162(m), Section 422 of the Code, stock
exchange rules or other applicable law. The Administrator may amend the terms of any Award
theretofore granted, prospectively or retroactively, but, subject to Section 4 of Plan, no such
amendment shall impair the rights of any Participant without his or her consent.

Section 11. Unfunded Status of Plan.

     The Plan is intended to constitute an “unfunded” plan for incentive compensation. With
respect to any payments not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a general creditor of the
Company.

Section 12. Withholding Taxes.

     Whenever cash is to be paid pursuant to an Award, the Company shall have the right to deduct
therefrom an amount sufficient to satisfy any federal, state and local withholding tax requirements
related thereto. Whenever Shares are to be delivered pursuant to an Award, the Company shall have
the right to require the Participant to remit to the Company in cash an amount sufficient to
satisfy any federal, state and local withholding tax requirements related thereto. With the
approval of the Administrator, a Participant may satisfy the foregoing requirement by electing to
have the Company withhold from delivery Shares or by delivering already owned unrestricted Shares,
in each case, having a value equal to the minimum amount of tax required to be withheld. Such
Shares shall be valued at their Fair Market Value on the date as of which the amount of tax to be
withheld is determined. Fractional share amounts shall be settled in cash. Such an election may
be made with respect to all or any portion of the shares to be delivered pursuant to an Award.

Section 13. General Provisions.

	(a)	 	Shares shall not be issued pursuant to the exercise of any Award granted hereunder unless the
exercise of such Award and the issuance and delivery of such Shares

11

 

	 	 	pursuant thereto shall comply with all relevant provisions of law, including, without
limitation, the Securities Act of 1933, as amended, the Exchange Act and the requirements of
any stock exchange upon which the Ordinary Shares may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such compliance.
	 
	(b)	 	The Administrator may require each person acquiring Shares to represent to and agree with the
Company in writing that such person is acquiring the Shares without a view to distribution
thereof. The certificates for such Shares may include any legend that the Administrator deems
appropriate to reflect any restrictions on transfer.
	 
	(c)	 	All certificates for Shares delivered under the Plan shall be subject to such stock-transfer
orders and other restrictions as the Administrator may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission, any stock
exchange upon which the Shares may then be listed, and any applicable federal or state
securities law, and the Administrator may cause a legend or legends to be placed on any such
certificates to make appropriate reference to such restrictions.
	 
	(d)	 	Nothing contained in the Plan shall prevent the Board from adopting other or additional
compensation arrangements, and such arrangements may be either generally applicable or
applicable only in specific cases. The adoption of the Plan shall not confer upon any
Eligible Recipient any right to continued employment or service with the Company or any Parent
or Subsidiary, as the case may be, nor shall it interfere in any way with the right of the
Company or any Parent or Subsidiary to terminate the employment or service of any of its
Eligible Recipients at any time.
	 
	(e)	 	Notwithstanding any provision in the Plan to the contrary, no payment or distribution under
this Plan that constitutes an item of deferred compensation under Section 409A of the Code and
becomes payable by reason of a Participant’s termination of employment or service with the
Company will be made to such Participant unless such Participant’s termination of employment
or service constitutes a “separation from service” (as defined in Section 409A of the Code).
For purposes of this Plan, each amount to be paid or benefit to be provided shall be construed
as a separate identified payment for purposes of Section 409A of the Code. If a participant
is a “specified employee” (as defined in Section 409A of the Code), then to the extent
necessary to avoid the imposition of taxes under Section 409A of the Code, such Participant
shall not be entitled to any payments upon a termination of his or her employment or service
until the earlier of (i) the expiration of the six (6)-month period measured from the date of
such Participant’s “separation from service” or (ii) the date of such Participant’s death.
Upon the expiration of the applicable waiting period set forth in the preceding sentence, all
payments and benefits deferred pursuant to this Section 13(e) (whether they would have
otherwise been payable in a single lump sum or in installments in the absence of such
deferral) shall be paid to such Participant in a lump sum as soon as practicable, but in no
event later than sixty (60) calendar days, following such expired period, and any remaining
payments due under this Plan will be paid in accordance with the normal payment dates
specified for them herein.

Section 14. Term of Plan.

     No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the
Effective Date, but Awards theretofore granted may extend beyond that date.

12exv10w2

Exhibit
10.2 

Technical Services Agreement

Master Statement of Work

Base Agreement # 4908009099

Master SOW # 4908009104

1.0 Master Statement of Work

This Master Statement of Work (“MSOW”) # 4908009104 adopts and incorporates by reference the
terms and conditions of Base Agreement # 4908009099 (“Base Agreement”) between IBM Global Services
Company (China) Company Ltd. (“Buyer”) and Camelot Information Systems (China) Corp. Ltd.
(“Supplier”). This MSOW is effective beginning on March 24, 2008 and will remain in effect until
March 31, 2011. Transactions performed under this MSOW will be conducted in accordance with and be
subject to the terms and conditions of this MSOW and the Base Agreement.

2.0 Definitions

“Authorized Users” are users of Services within and outside of Buyer including, but not limited
to, recipient
employees, business units, vendors, Customers, contractors, joint ventures, etc.

“Buyer” means IBM and its Affiliates including but not limited to IBM Global Services (China)
Company Limited
and IBM Solution and Services Company Ltd.

“Customer” means customer of Buyer

“Client” means the various IBM divisions and its affiliated companies (such as, but not limited to
IBM Solution &
Services Company Ltd., etc.) individually and collectively.

“Delivery Company” means a wholly owned subsidiary of Supplier in the form of a limited liability
company under
the Company Law of China in Shanghai, China.

“Project Statement of Work” “ or “PSOW” means any document that:

1. identifies itself as a statement of work;

2. is signed by both parties;

3. incorporates by reference the terms and conditions of this Base Agreement and MSOW;

4. describes relevant details of the Deliverables and Services, including any requirements,
specifications or schedules unique for each project as applicable;

5. describes respective obligations of Supplier and Buyer to be performed in the areas specified in
this MSOW; 

“Master Statement of Work” or “MSOW means a document that defines the master scope of
work to be accomplished by Supplier and specific responsibilities for various activities / tasks
planned to be performed and completed by Supplier under PSOW.

“Project
Staff” Supplier shall appoint for the Project personnel with suitable training and
skills to perform the Services

“Purchase Order” means Buyer’s work authorization for Supplier to start working for the shipment of
Deliverables and Services specified by PSOWs, which becomes a legally binding contract once
Supplier accepts it. Supplier will begin work only after receiving a PO from Buyer.

“Service Level” has the meaning set forth in Section 11.4

“Services” has the meaning given in Section 5.0.

“Skills” means the skills provided by Supplier’s resources as described in Annexure C to this MSOW

“Software” means Applications Software and Systems Software unless a more specific
reference is given.

“Statement of Work”
or “SOW” means any document that:

1. identifies itself as a statement of work;

2. is signed by both parties;

3. incorporates by reference the terms and conditions of this Base Agreement; and

4. describes the Deliverables and Services, including any requirements, specifications or
schedules.

5. SOW includes both MSOW and PSOW.

Page 1 of 39

 

Technical Services Agreement

Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

3.0 Master Statement of Work

3.1 Introduction

	 	 	This MSOW defines the master scope of work to be accomplished by Supplier and specific
responsibilities for various activities / tasks planned to be performed and completed by Supplier
under PSOW. The successful completion of this MSOW depends upon the full commitment and
participation of Supplier. Buyer’s obligations, as set out in the MSOW, will be provided to
Supplier at no cost. Changes to this MSOW will be processed in accordance with the procedure
described in the section Change Control Procedure.

3.2 Annexures

The following Annexures are included in and form part of this MSOW

	 	 	 
	Annexure A

	 	Holiday Schedule for 2008
	Annexure B

	 	Other Charges
	Annexure C

	 	Skill definitions
	Annexure D

	 	Delivery Company Headcount Target
	Annexure E

	 	Security Policy Guidelines

4.0 Governance and Relationship Model

	 	 	 	 	 
	Executive 

Relationship

	 	Buyer
 Executive
	 	Supplier
 Executive
	 
	 	 	 	 
	Program 
Governance

	 	Buyer Program
 Manager
	 	Supplier
 Program
Manager
	 
	 	 	 	 
	Operational 

Governance 

Management

	 	Buyer

Operations

Manager
	 	Supplier

Operations

Manager
	 
	 	 	 	 
	 

	 	 	 	Supplier

Resources

The Program Governance Model will be structured in a three-tier model.

	 	•	Executive Relationship — This level will be at the uppermost level with representatives
from both the organizations. Governance at this level will manage the relationship and
provide corporate leadership to leverage full potential of the program and increase the
business value to both parties. Supplier’s executive will keep abreast of Buyer’s strategic
business direction, and monitor requirements within the government and regulatory bodies.
	 
	 	•	Program Governance — Will review the overall progress of the program from the contract
and financial management point of view. The Program Managers from Buyer and Supplier will
lead the program governance team. The team will govern the agreement, review the contract
and business commitments and will manage and control changes to the agreement. The Change
Control Procedure will be used to document any deviation that has a potential impact on the
Program.
	 
	 	•	Operational Governance Management — The operational level of governance will be at the
project level or committed staff level. The Operations Managers from Buyer and Supplier
will lead the governance team and review the performance and solve transactional issues
related to the scope of work or commitment to

Page 2 of 39

 

Technical Services Agreement

Master Statement of Work

Base Agreement # 4908009099

Master SOW # 4908009104

	 	 	 	be delivered under this MSOW or related PSOWs. They will periodically review the status,
issues and
achievements of the services for a specified period.

Governance at program and operational management levels are described below along with roles and
responsibilities of Supplier and Buyer governance personnel and the escalation mechanism.

4.1 Program Governance

Program governance includes overall program management responsibilities, control and the
associated communication. Buyer will designate a person known as Buyer Program Manager.

4.1.1 Program Management

Prior to the start of this MSOW, Supplier will designate a person known as Supplier Program
Manager who will be focal point for all Supplier communications related to this Program and will
have authority to act on behalf of Supplier in matters regarding this Program. Program management
will involve:

	 	•	identification, mobilization and placement of resources relevant to the skills required for the
execution of the Program
	 
	 	•	Managing the ramp-up, transition and delivery of all services
delivered by Supplier
	 
	 	•	Managing Service Level Agreements (“SLAs”) set in the PSOW
	 
	 	•	Program escalation process to address critical items (affecting resources, cost or
schedule) as well as any potentially critical items, and help resolve or escalate Program
issues, as necessary.
	 
	 	•	Administering Program change control with the Buyer Program Manager
	 
	 	•	Risk Management planning and tracking

4.1.2 Program Communication and Reporting

	 	•	Supplier Program Manager and Buyer Program Manager will meet periodically to review the
overall Program. Communication which will include:
	 
	 	•	Review and updates to the Program level plan (e.g. Generic Support and Control Plan) within
scope of a particular PSOW
	 
	 	•	Resolution or further escalation of unresolved issues escalated from the
project governance level a Periodical review of Supplier performance metrics 
	 
	 	•	Review and report customer satisfaction survey results and actions Report program status to the executive
management

4.1.3 Program Control

Buyer and Supplier Program Managers will meet at the end of every quarter to review the
progress of the Program and to resolve any issues that are hindering the progress of the
Program.

4.2 Operational Governance Management

Buyer and Supplier will work together to define Delivery Company (“DC”). Operational processes
as the delivery model for in-scope services within this document. Process requirements from the
end stakeholders will be integrated to ensure a seamless execution. Normal SEPG (Software
Engineering Process Group) and QA (Quality Assurance) cost should be included in the scope of this
MSOW, as appropriate. If stakeholder has special needs for QA & process, then additional work will
be estimated and added in PSOW. If required a joint SEPG (Software Engineering Processes Group)
with Buyer and Supplier will be set up to perform process mapping between Buyer and Buyer’s
customer processes.

4.2.1 Operations Management

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Technical Services Agreement

Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

	 	•	Prior to the start of a particular PSOW, Supplier will designate a person known as
Supplier Operations Manager who will be the focal point for all Supplier communications
related to services within in scope criteria and will have authority to act on behalf of
Supplier in matters regarding the scope. The operations management will involve:
	 
	 	•	Planning, interlocking, and managing the committed scope approved by Buyer
	 
	 	•	Resource utilization and stakeholder skill trainings required for execution of the service
	 
	 	•	Managing resource pool
	 
	 	•	Administering service change control with the Buyer Operations Manager
	 
	 	•	Services risk management

4.2.2 Service Organization

The Service Organization envisaged for the in scope services will be specific and will be defined
and agreed as part of the PSOW.

4.2.3 Project Office

Supplier will establish a Project Office for the DC. The Project Office will be a single-point of
contact for Buyer for both services delivery and all non-delivery matters. Supplier Operations
Manager will be the single point of contact for all services related communication and will handle
all communication with the on-site team. The Project Office will also have access to other
communication channels like FAX and direct telephone lines for quick and easy communication.

Similarly Buyer may also establish a Project Office and identify a single point of contact for all
service related issues. If Buyer decides not to establish a Project Office, Buyer will at a
minimum identify a single point of contact for all non-delivery issues.

Both Project Offices will have the responsibility of ensuring availability of adequate resources
in the form of office facilities; workstations, etc. to team members at respective sites for
performing the proposed services.

4.3 Process Governance

Buyer and Supplier will work together to define DC’s Services process as the service delivery
model for in-scope services. Process requirements from the stakeholders will be integrated and
interlocked for a seamless solution. A joint team with Buyer and Supplier representatives will be
setup to perform Delivery Company startup activities as defined on an agreed plan

4.4 Escalation

In the event of a disagreement on any issue (pertaining to this document) that cannot be
resolved by the designated Supplier and Buyer managers, the escalation path for resolution is
given below:

	 	 	 
	Buyer

	 	Supplier
	Buyer Operations manager

	 	Supplier Operations Manager
	Buyer Program Manager

	 	Supplier Program Manager
	Buyer Executive

	 	Supplier Executive

The Supplier organization should nominate immediately after execution of this MSOW and maintain a
customer satisfaction representative to address all issues that arise from the program. A
specified email ID should be provided by Supplier to receive all such issues. The issues need to
be logged and a solution arrived and closed at within a maximum of 5 business days.

4.5 Supplier Responsibilities

4.5.1 Supplier Role

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Technical Services Agreement

Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

	 	 	 
	Role	 	Responsibilities
	Supplier Executive

	 	Will be responsible for the overall well being of the relationship
between Supplier and Buyer.
	 
	 	 
	Supplier Program Manager

	 	Accountable for all work performed by Supplier, escalation point for
Supplier related issues

Overall Program performance

Status reporting to Supplier and Buyer Executives overseeing the
program.

Customer satisfaction
	 
	 	 
	Supplier Operations 

Manager

	 	Will be primary point of contact for queries related to PSOW set-up
and issue resolution from Supplier side

Schedule and attend all planning, status, escalation and other
program management meetings

Monitor and report status on a regular basis to Buyer and Supplier
management team

Ensure submission of Operations Metrics data

Acting as single point of contact between Buyer and Supplier for all
issues
	 
	 	 
	Supplier Operations 

Manager

Merge with Supplier 

Operations Manager

	 	As defined by PSOW, have joint accountability, may include
activities listed below:

Responsible for the service performance

Performance as per the expectations that will be defined within each
PSOW (quality and timeliness of deliverables, availability/up-time of
the application, productivity, etc.)

On time delivery of services

Quality of deliverables and support for transitioned applications

Ensure submission of Service Metrics data

Responsible for execution of services within budget and schedules
Participate in all technical meetings and conference calls.
Coordinate and follow-up on all technical issues addressed in
technical conference from Buyer as well as Supplier team to closure.
Provide support to Supplier DC team in preparation of test cases /
data
	 
	 	 
	Project Office

	 	Functions are the single-point of contact for Buyer for all
non-delivery matters

Will handle all communication with the on-site team
 Responsibilities
will span multiple PSOWs

4.5.1 Responsibilities

     4.5.1.2 Supplier Technical Resource Pool:

	 	(a)	 	In case there is specific skill requirement and schedule
information provided from Buyer to Supplier, Supplier need to prepare
accordingly based on those information before a formal resource request is
sent;
	 
	 	(b)	 	Supplier should ensure its personnel get necessary foreign language training
including but not
limited to languages such as, English and Japanese.

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Technical Services Agreement

Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

	 	(c)	 	Supplier shall provide an average 3 to 5 training days/per year training per
person to continuously improve and refresh their skills

     4.5.1.3 Change Control:

As appropriate, the responsibility for establishing the IT architecture, standards,
methodologies products and strategic direction of Buyer’s Customers shall at all time
remain with Buyer. Supplier, in performing the Services, shall conform to and shall
support such architecture, standards, products and strategic direction and will use
Buyer Change management tools and procedures as directed by Buyer.

     4.5.1.2 Loan of Buyer Assets:

In the event that assets are loaned to Supplier or Supplier Personnel, Supplier shall
sign Equipment & Program Loan Agreement with Buyer and will be responsible for risk of
loss and for the return of those assets to Buyer.

     4.5.1.3 US Export Regulation Procedures:

The Supplier and its personnel will ensure compliance with the US Export Regulation
and Procedure while handling any information, process, product or service under
this agreement.

     4.5.1.4 Business Travel:

	 	(a)	 	Supplier shall provide necessary support to ensure its personnel get
appropriate visa if there is overseas travel required by Buyer (visa application
fee can be reimbursed with valid invoice);
	 
	 	(b)	 	Supplier shall provide its personnel sufficient cash in advance or appropriate
credit card before business travel happens;
	 
	 	(c)	 	Supplier shall ensure their personnel follow the travel policy
agreed by IBM or IBM affiliated company.
	 
	 	(d)	 	Supplier shall ensure their personnel follow overseas countries’
holiday arrangement during the overseas business trip;
	 
	 	(e)	 	Supplier shall ensure their personnel follow landed countries laws and regulations
as pertains to their applicable VISA status in landed country. In addition, personnel
have appropriate assimilation training and local wellbeing support in landed country.

4.6 Buyer Responsibilities

4.6.1 General Responsibilities

Ensure that the following responsibilities of Stakeholder are discharged properly (as applicable):

	•	 	Ensure availability of Customer persons required for discussions, demos, reviews and approvals

Page 6 of 39

 

Technical Services Agreement

Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

	•	 	Ensure that Customer provides access to suitable office space, office supplies, furniture,
telephone, workstations, access badges, mail-IDs, parking, employee cafeteria, and other
facilities for Supplier onsite project team member’s equivalent to that available to Buyer
staff while working on Customer’s premises, all in accordance with a PSOW.
	 
	•	 	Customer will perform the User Acceptance Testing. Supplier will support these testings by
completing defect fixes pertaining to Supplier developed code.
	 
	•	 	All Releases to Production will be carried out by Customer, but will be supported by Supplier.
	 
	•	 	Customer’s Buyer will provide all existing documentation, which includes the existing test
cases, scripts etc. with appropriate detail.
	 
	•	 	Buyer will provide, in the case needed and requested by projects/case, Identified Supplier
employees Buyer IDs in Lotus Notes to enable access to areas like SameTime, Team Rooms, etc.,
based on the specific Project and network access needs.

4.6.2. Demand Statement:

Buyer will provide Supplier with a Demand Statement, outlining estimated monthly resource
requirements for a period of 1 year, commencing on April 01, 2008. The Demand Statement is not a
minimum resource or utilization commitment by Buyer.

At the start of each month, Buyer will provide Supplier with a predicted demand by week, in terms
of numbers of resources and skills required for the next 2 months. Supplier is liable to fill
demand within the limits set out in the ramp up section and the skills supported by Supplier under
this MSOW.

Demand is stated in terms of skill requirements and is comprised of the ramp up staffing plans in
one or more PSOWs. The Demand Statement is fulfilled when Supplier resources are in the Delivery
Center pool and are billable to Buyer in the time agreed by the parties.

The actual number of resources supplied to Buyer each month for each PSOW will be consolidated to
determine the actual fulfillment of the Demand Statement. Once added to the Delivery Center pool
it is understood that resources will remain within the Delivery Center, and maintained by Supplier
Removal of the resources from the Delivery Center pool must be authorized by the Buyer. It is
expected that the Supplier maintains the quality of the resource pool in the Delivery Center as
per the business guidelines of Supplier.

Page 7 of 39

 

Technical Services Agreement

Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

4.7 Measurement of Relationship

4.7.1 General

Buyer will use a quarterly average of the monthly scores to assign points. Buyer will measure
Supplier’s performance, on a semi-annual basis, using the Supplier Performance Report (SPR),
including an annual Client Satisfaction Survey (based upon a sampling of requesters’ feedback)
to calculate an average score.

In the event Supplier’s total is in the top 75% of the total points, Supplier will be considered
for contact extension or renewal. Upon notification of a total score below 75% of the total points,
Supplier will provide an action plan for improving performance at a national level. Such action
plan will include a time frame for the successful execution of the plan. This action plan will be
reviewed and approved by Buyer. Supplier’s failure to successfully execute the action plan within
the agreed upon time frame may result in the substantial or complete reduction of new business
awards by Buyer.

Notwithstanding the measurements and subsequent assessments as described in these sections, buyer
retains the right to, from time to time, conduct assessments of the supplier’s relative performance
compared with other suppliers and implement changes to the supplier’s status as a core or
regional/niche supplier (including volume of business), based on such assessments or supplier’s
breach of any term of this agreement.

In addition to these measurements of quality and performance against commitments in the following
sections, Supplier will attain the objectives detailed in the Technology, Terms and Conditions, and
Communications sections of the SPR. The SPR would also be assessing the Suppliers’ conformance to
the Buyers’ processes.

Supplier will report to Buyer by the 5th day of the month following the close of each month, its
performance against monthly and year-to-date performance measurements for the preceding quarter.
The report will be provided in a Microsoft Excel format, a soft copy of which will be provided to
Supplier.

This Section of the Agreement may be amended by Buyer from time to time to reflect changes in
Buyer’s business goals and objectives.

4.7.2 Quality Measurements:

The following measurements will be used to capture the quality of the transactions conducted
under this Agreement.

	(a)	 	Turnover: Turnover, due to Supplier’s Personnel whose performance under this Agreement is
interrupted as a result of resignation, dismissal or termination for cause, is to be
calculated and provided in the Monthly Performance Measurements Report. Monthly Turnover Rate
is to be calculated by dividing the total number of Turnover headcount in a given month by the
same month’s total headhunt of Supplier’s Personnel including sub tiers. The cumulative
Turnover Rate is to be calculated by dividing total year-to-date Turnover headhunt by the
total headcount of Supplier’s Personnel, including sub-tiers. Suppliers should maintain a
Turnover equal to or less than 7.0% cumulative and equal to or less than 1% every month. The
turnover is calculated after the warranty period.

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Master Statement of Work

Base Agreement # 4908009099

Master SOW # 4908009104

	(b)	 	Bypasses: Supplier will make all reasonable efforts to ensure that there are no Bypasses.
Bypasses will be
measured monthly
	 
	(c)	 	Process improvements: Process improvements implemented, supported or suggested by Supplier are
a performance measurement criterion, and will be reflected in the SPR by measuring Buyer’s
perception of the Supplier’s willingness to implement, participate in, or initiate process
improvements.

4.7.3 Performance Against Commitments:

The following measurements will be used to determine the degree to which Supplier consistently
meets its commitments to: supply high quality skills; provide timely and accurate delivery (to
include meeting the Reports requirements of this Agreement); and maintain Client satisfaction of at
least 80%.

	(a)	 	Resume Response: The supplier is expected to maintain a 100% quality standard for this
category. A response is a minimum of 1 and a maximum of 3 resumes per opening received by the due date
specified on the Resource Request Form by the requester.
	 
	(b)	 	Resumes Submission Quality: The minimum quality standard for this criterion is 75%. This is
measured by dividing the number resumes that match the requirements detailed in the RRF by the
total number of resumes submitted in response to Buyer’s Resource Request Forms (RRF).
	 
	(c)	 	Resumes Withdrawn: No resumes which are submitted in response to Buyer’s Resource Request Forms
(RRF) are to be withdrawn during the first 14 days. Supplier is required to give advance notice
to the buyer if a resume submitted is being withdrawn after 14 days.
	 
	(d)	 	Strike Rate: The supplier is expected to maintain a 50% strike rate. Strike rate is calculated
by dividing the
number of resumes selected by the buyer by the total number of resumes submitted for interview.
	 
	(e)	 	No Shows: A No Show is a resource who failed to join after being selected. There should be no
No Shows.
	 
	(f)	 	Rate Compliance: Suppliers are expected to maintain 100% rate compliance. Rate compliance is
measured by the total number of instances where the suppliers response is not in accordance
with the rate classification as detailed in the Buyer’s Resource Request Form
	 
	(g)	 	Blocked Invoices: Supplier will ensure a minimum quality standard of no more than 2% of
total invoices submitted each month that are unable to be paid by Buyer due to price
discrepancies.
	 
	(h)	 	Reports: As of the Effective Date, Buyer has determined a set of periodic measurements and
reports to be issued by Supplier to Buyer, which shall include the reports set forth through
this Section #4.0. Supplier shall participate and provide complete and accurate input on a
timely basis as requested by Buyer. Failure to provide complete, accurate, and timely input
will adversely affect Supplier’s SPE rating.

4.7.4 Benchmarking Report:

Supplier will demonstrate its adherence to the Section in the Agreement entitled Pricing by
providing a benchmarking report, semi-annually (as part of the second and fourth quarter
Performance Reports). The Benchmarking Report will compare Supplier’s direct costs (wages and
employee benefits) and operating costs (management expense, selling expense, recruiting expense,
G&A, etc.), measured as a percent of revenue, with

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Master Statement of Work

Base Agreement # 4908009099

Master SOW # 4908009104

the direct costs and operating costs of others in the industry, or other criteria as may be
mutually agreed upon by
the parties.

5.0 Scope of Work

This section describes the scope of services to be performed by Supplier under this MSOW.

5.1 Project Statement of Work

For each service agreement, Supplier and Buyer will agree to a PSOW. Supplier and Buyer will
perform all their respective obligations in the areas specified in this MSOW. The PSOW will set out
relevant details for the services, as applicable.

	5.2	 	Services

5.2.1 Provision of Services

	 	(a)	 	Commencing on the Effective Date, Supplier shall provide the following Services and
perform the following functions and responsibilities, each as they may evolve during the
Term and as they may be supplemented, modified enhanced or replaced from time to time:

	 	(i)	 	The services, functions and responsibilities described in this MSOW;
	 
	 	(ii)	 	The services, functions and responsibilities that are of a nature and type
that would ordinarily be performed by the Supplier, even if such services, functions
and responsibilities are not specifically described in this MSOW;

	 
	 	 	 	The comprehensive technical services that may be required to be provided under this
SOW, either on Supplier’s, Buyer’s or Buyer’s Customer’s premises as specified in a
PSOW. Accordingly, Supplier will provide a full range of technical personnel, in
accordance with the Skill Classifications detailed in Annexure C.
	 
	 	(iii)	 	Any services, functions, or responsibilities not specifically described in this
MSOW that are
required for the proper performance and provision of the Services (Such services,
functions and responsibilities described in this Section 5.4.1 (a), collectively the
“Services”).

	 	(b)	 	The Services will be performed by Supplier as necessary to meet Buyer’s business
needs using generally acknowledged technological advancements and improvements in the
methods of delivering the Services.
	 
	 	(c)	 	Supplier and Supplier’s subcontractors shall be obligated to abide by, and comply
with Buyer’s then-current standards, policies and procedures. Such obligations currently
include the obligation to refrain from engaging in any concurrent employment that
creates a conflict of interest or interferes with the provision of Services to Buyer.
Supplier agrees to advise its employees and subcontractors performing Supplier
obligations hereunder, of their responsibilities under this SOW.

5.2.2. Recipients of the Services

Supplier shall provide the Services to Buyer and its Affiliates to the extent necessary,
and upon request by Buyer a “Recipient”). Buyer shall be responsible for paying the charges
for Services provided to Recipients to the same extent as if the Services were provided
only to Buyer. To the extent Services are characterized in this SOW as to be provided to
Buyer, those references will be deemed to include the provision of such Services to other
Recipients as requested by Buyer.

5.3 Type of Services

Unless otherwise provided expressly in the MSOW or in the PSOW, the parties hereby agree that
the Deliverables or Services to be provided by Supplier shall be considered as fixed price Service,
and Supplier shall commit itself to complete the Deliverables or Services in accordance with the
completion criteria specified in the

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MSOW and/or the relevant PSOW. When Buyer
specifically requests Supplier to provide the fixed price Services which Supplier shall provide at
its best efforts basis or Time and Material Services which Supplier shall provide at its best
efforts basis, Buyer will indicate such request with other necessary provisions expressly in the
applicable PSOW.

5.3.1 Services

5.3.1.1 Scope of Work

     Detailed in individual PSOWs

5.3.1.2 Roles and Responsibilities

     Detailed in individual PSOWs

5.3.1.3 Acceptance Criteria

     Detailed in individual PSOWs

6.0 Facilities

This section describes the requirements and responsibilities of Supplier related to the DC
site, as appropriate , Buyer’s site, and Buyer’s Customer site. This section also covers Buyer’s
responsibilities related to Buyer site. In case Supplier will utilize space at the DC site for a
project with another entity, Supplier will provide Buyer with 30 days written notice, which notice
includes the name of the entity and a non-confidential description of the services.

Buyer and Supplier will work together to secure Delivery Center site facilities that align to
Buyer’s growth plans and negotiate lease terms and conditions that will provide operational
flexibility for the Delivery Center and Buyer. Supplier will seek to assign Delivery Center site
lease to wholly-owned subsidiary Delivery Company once the Delivery Company is established

6.1 DC Site

This section identifies the requirements that Supplier must meet to obtain Buyer approval to
perform work at the DC.

Supplier will provide the use of the space in Supplier’s premises that is utilized by Buyer Project
Staff together with office furnishings, telephone equipment and services, janitorial services,
utilities and office-related equipment and duplicating services reasonably required in connection,
as needed per PSOW. Any shared services like bus conveyance to DC location, provided to Supplier’s
will also be made available to Buyer project staff working at DC at the same terms and conditions
that will be applicable to supplier’s employees

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Where Supplier co-locates Buyer and
non-Buyer projects in the same facility Supplier will ensure, and Buyer may verify, that Supplier
adheres to all requirements of this MSOW and the relevant PSOW, including security and
confidentiality requirements.

6.1.1 General Requirements

	Where Supplier co-locates Buyer and non-Buyer projects in the same facility, Supplier will
ensure, and Buyer may verify, that Supplier adheres to all requirements of this MSOW and the
relevant PSOW, including security and confidentiality requirements.

Building security and workstation security

Safety and electrical requirements

Workstation and space

Buyer will conduct a site visit to determine the readiness of the facility selected by the
Supplier. Buyer will produce
a report stating the results of their finding and will provide these results to the Supplier. The
evaluation will utilize
the following checklist:

Site readiness

Workplace requirements

Buyer Well-being requirements

Security

6.1.2. Training

Buyer may from time to time request training services from Supplier for Buyer and / or Customer
staff. These services will be requested in a separate PSOW. Supplier will utilize its own training
facilities located at its DC or other Supplier specified locations to deliver this training. This
training will be charged on a per head basis for the quantity of training delivered under the
defined PSOW

For the Suppliers Key personnel or project staff providing to Buyers in DC, basic training shall be
completed
before being accepted into DC.

The content of the basic training shall be defined and agreed by Supplier’s and Buyer’s Program
Managers during
transition period. Buyer will not pay for resource cost before they are officially accepted into
the DC pool as formal
resource.

6.1.3. Buyer Resources Provided to Supplier

Supplier and/or Buyer may decide that to deliver services as defined in a particular PSOW that
Buyer resources
need to be co-located with Supplier Resources in the DC site. These resources will be known as
“Buyer
Seconded Resources”.

In the event of such an agreement, Supplier will provide office space, technology infrastructure
and facilities for
the hotelling of these Buyer Seconded Resources at the DC. The exact nature and costs will be
agreed in each PSOW.

The costs for providing these services for Buyer Seconded Resources will be billed on a monthly
basis to Buyer.

6.1.5. Exceptions

Supplier will adhere to all requirements prior to beginning work under any PSOW. If any
non-conformances exist, Supplier will rectify those areas identified during the audit by Buyer’s
PM.

6.2 Buyer Site and Buyer’s Customer Site

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In the event that work for a particular PSOW is to be performed from Buyer’s site, Buyer shall
provide at Buyer’s expense, the use of the space in Buyer’s premises that is utilized by Supplier
Project Staff together with office furnishings, telephone equipment and services, janitorial
services, utilities and office-related equipment and duplicating services reasonably required in
connection with the performance of the Managed Services as per Staff augmentation contract as
needed per specific PSOW.

6.2.1 On Premises Guidelines

These Guidelines shall apply to work performed on either Buyer’s or Buyer’s Customer’s sites.

(a) Access to Premises: Supplier will ensure that when Supplier’s Personnel are assigned to work on
Buyer’s or Buyer’s Customer’s premises, Supplier will: (i) maintain a current and complete list of
the person’s names and ID numbers; (ii) obtain for each person a valid identification badge from
Buyer and ensure that it is displayed to gain access to and while on those premises (it is Buyer’s
policy to deactivate any such badge if not used for one month); (iii) Maintain signed
acknowledgement, dated prior to the start of an engagement, that each person will comply with
Buyer’s Safety & Security Guidelines including search guidelines; (iv) ensure that each person with
regular access to Buyer’s premises registers their vehicles with Buyer and complies with all
parking restrictions; (v) inform Buyer in advance if a former employee of Buyer will be assigned to
work under this SOW, such assignment being subject to Buyer approval; (vi) at Buyer’s request, for
any reason that is not unlawful, remove a person from those premises and not reassign such person
to work on those premises (Buyer is not required to provide a reason for such request); and (vii)
notify Buyer immediately upon completion or termination of any assignment and return Buyer’s
identification badge.

(b) General Business Activity Restrictions: Supplier will ensure that Supplier’s Personnel assigned
to work on Buyer’s or Buyer’s Customer’s premises: (i) will not conduct any non-Buyer related
business activities (such as interviews, hiring, dismissal, or personal and personnel
solicitations) on those premises; (ii) will not conduct Supplier’s Personnel training on those
premises, except for on-the-job training; (iii) will not attempt to participate in Buyer’s benefit
plans or activities; (iv) will not send or receive non-Buyer related mail through Buyer’s mail
systems; and (v) will not sell, advertise or market any products or distribute printed, written or
graphic materials on Buyer’s premises without Buyer’s written permission.

(c) Safety and Security: Supplier will ensure that Supplier’s Personnel assigned to work on Buyer’s
or Buyer’s Customer’s premises: (i) do not bring weapons of any kind onto those premises; (ii) do
not manufacture, sell, distribute, possess, use or be under the influence of controlled substances
(for non-medical reasons) or alcoholic beverages while on those premises; (iii) do not have in
their possession hazardous materials of any kind on those premises without Buyer’s authorization;
(iv) acknowledge that all persons, property, and vehicles entering or leaving those premises are
subject to search; and (v) remain in authorized areas only (limited to the work locations,
cafeterias, rest rooms and, in the event of a medical emergency, Buyer’s medical facilities).
Supplier will promptly notify Buyer of any accident or security incidents involving loss of or
misuse or damage to Buyer’s intellectual or physical assets; physical altercations; assaults; or
harassment and provide Buyer with a copy of any accident or incident report involving the above.
Supplier must coordinate with Buyer access to Buyer’s premises during non-regular working hours.

(d) Asset Control: In the event Supplier’s Personnel have access to information, information
assets, supplies or other property, including property owned by third parties but provided to
Supplier’s Personnel by Buyer (“Buyer Assets”), Supplier’s Personnel: (i) will not remove Buyer or
Buyer’s Customer’s Assets from Buyer’s or Buyer’s Customer’s premises without Buyer’s
authorization; (ii) will use such Assets only for purposes of this SOW and reimburse Buyer for any
unauthorized use; (iii) will only connect with, interact with or use programs, tools or routines
that Buyer agrees are needed to provide Services; (iv) will not share or disclose user identifiers,
passwords, cipher keys or computer dial port telephone numbers; and (v) in the event the Buyer
Assets are

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confidential, will not copy, disclose or leave such assets unsecured or unattended. Buyer may
periodically audit
Supplier’s data residing on Buyer’s assets.

7.0 Hardware and Software

This section describes the requirements and responsibilities for both Buyer and Supplier
related to hardware and software requirements at the DC. Buyer and Supplier will periodically
review hardware and software provided under respective responsibilities on an annual basis as
minimum. Such review will be conducted by reflecting upon then current business requirements of
Buyer to keep such hardware and software versions updated to customary and prevailing minimum
levels. In case additional software and/or hardware are required per Buyer customers’ requirements,
such additional requirements and costs will be defined, negotiated, and determined in PSOWs.

7.1 Supplier Responsibilities

7.1.1. Hardware

Supplier will provide each employee with the following hardware configurations, unless otherwise
stated in the applicable PSOW.

7.1.1.1 Supplier PC Desktop

Desktop

Supplier Desktop PC: Minimum 1.4 GHz speed. 40GB HDD, 1GB RAM, Mouse, Keyboard, 14"+ Monitor,
Ethernet card and connectivity.

7.1.1.2 Supplier ThinkPads

	 	•	 	Supplier laptop PC, in lieu of Desktops, on need basis subject to maximum of 25% of
assigned DC resources, and shall be provided to the resources at China DC PM’s discretion.
Configuration as stipulated by IBM Technology Deployment (TD)) with minimum 1 GHz speed,
40GB HDD and 1G RAM.

7.1.1.3 Software

Supplier will provide the following IBM software at Buyer’s expense and Non-IBM Software at
Supplier’s expense
on each desktop and ThinkPad laptop configuration:

IBM software:

Lotus Notes as needed base (refer to PSOW)

Rational Tool as needed base (refer to PSOW)

Non-IBM Software:

	 	•	 	As specified in the the PSOW

 

			
	(*) 	 	Only Supplier’s project managers, project leads and project administrators need.

	7.2	 	Buyer Responsibilities

7.2.1 Software

Buyer will provide Supplier with any project specific software products that are dictated by
the adoption of processes as determined under Section 4.3. This is subject to individual
tailoring as part of the PSOW.

The above information is for reference, these are subject to customization for individual projects,
and details of the same will be document as part PSOW for every individual Project.

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8.0 Staffing

8.1 Staff

Supplier shall appoint for the Delivery Center personnel with suitable training and skills to
perform the Services (such personnel herein after called as “DC Staff’), as defined in PSOW.
Supplier shall provide Buyer with a list of all additions or deletions to the DC Staff pool, as
they occur, the status of the DC Staff is full-time and the total number of individuals comprising
the DC Staff pool. Supplier shall notify Buyer as soon as possible after assigning, dismissing or
reassigning any DC Staff whose normal work location is at DC or Buyer specified location

All the changes to the list of the supplier DC staff need to acquire Buyers’ Operation Manager’s
agreement.

Supplier agrees to form and commit an initial core team of a minimum of 20 resources for the DC
within 30 days of the effective date of the contract. Core team members will be jointly selected
and approved by Supplier and Buyer.

8.1.1. Services Warranty Period

As specified per PSOW supplier will provide a 30-working day warranty on Services. In the event
Supplier’s Personnel ceases performing under a PSOW within the first 30 working days for any reason
other than Buyer’s termination without cause, Buyer will not be billed for Services performed
within such 30 working day period. In addition, replacement Supplier’s Personnel (following a
Supplier’s Personnel who left during the first 30 working days) will be non-billable during the
period for which it takes them to become proficient as a replacement, up to 30 additional working
days.

8.1.2 Key Personnel

The Parties agree Buyer will select and designate Key Personnel in the Delivery Center and Supplier
is obligated to commit a minimum of 80% of Delivery Center Project Staff by Customer Account as
Key Personnel. There will be minimum of at least 50% Key Personnel per PSOW. The Parties agree as
follows:

	1.	 	Supplier shall not: replace, reassign or otherwise remove any Key Personnel with respect to
any employee or contractor designated as a Key Personnel unless (a) Buyer consents to such,
replacement, reassignment or removal or (b) such Key Personnel (i) voluntarily resigns from
Supplier or the applicable subcontractor, (ii) is dismissed by Supplier for Cause, (iii) fails
to perform his or her duties and responsibilities pursuant to this Agreement or (iv) dies or
is unable to work due to his or her disability. Such consent by Buyer shall not be
unreasonable withheld.
	 
	2.	 	In the event a Key Personnel is terminated, replaced, reassigned or otherwise removed for any
reason. Supplier shall, subject to paragraph (4) of this subsection promptly designate an
individual as a replacement for such Key Personnel (each replacement individual, also a Key
Personnel).
	 
	3.	 	Before designating an individual as a Key Personnel, whether as an initial designation or as
a replacement. Supplier shall (a) recommend to Buyer the proposed designation, (b) introduce
the individual to appropriate representatives of Buyer and Customer, and (c) provide Buyer
with the name of the position or title and a description of the job responsibility of such
individual, in accordance with Supplier’s standard employment policies.
	 
	4.	 	In the event of a need for rotation or replacement of Key Personnel, Supplier shall ensure
that a procedure is in place for identifying backup and replacement Key Personnel. Supplier
shall make such procedures available to Buyer on request.

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	5.	 	In the event that the Project Staff is reduced such that the Key Personnel exceed 90 percent
of the then-current Project Staff, upon Supplier’s request, Supplier may reduce the number of
Key Personnel to no less than [80] percent of the then-current Project Staff, provided, that
prior to any individuals no longer being designated as Key Personnel, Supplier shall (a)
notify Buyer of the individuals proposed to be no longer so designated, (b) provide Buyer with
the names of the positions or titles and descriptions of the job responsibilities of such
individuals, in accordance with Supplier’s standard employment policies and (c) obtain Buyer’s
approval, provided that Buyer will cooperate with Supplier to reduce the number of Key
Personnel to 80 percent of the Project Staff.
	 
	6.	 	In the event that the Project Staff increases such that the Key Personnel are less than 80
percent of the then-current Project Staff, Supplier and Buyer shall designate additional
members of the Project Staff as “key” in accordance with paragraph (4) of this subsection,
such that the Key Personnel comprise at least 80 percent of the then-current Project Staff.

8.2 Staffing Baseline

When Supplier responds to a demand Statement and Buyer and Supplier agree to proceed with the
issuance of a PSOW, a monthly staffing baseline will be set for the duration of the PSOW. The
Staffing Baseline will include:

	 	•	 	The expected number of resources including Key resources Supplier is expected to have on the
project
	 
	 	•	 	The Scope of Work expected to be performed, e.g., maintenance, production support,
enhancements. The mechanism for additions and reductions of the monthly baseline will be
defined within each PSOW.

The staffing requirements and levels will be reviewed monthly for the succeeding month, and on a
quarterly basis, the yearly baseline will be generated.

8.3 Termination of a PSOW and/or a Purchase Order

Buyer may, upon written notice to Supplier, terminate a PSOW and/or a Purchase Order:

	1.	 	with Cause effective immediately; or
	 
	2.	 	without Cause effective immediately or as otherwise specified in such notice.

8.3.1 Without Cause

Upon termination without Cause, in accordance with the direction by Buyer’s 30-day advance notice
in writing, As appropriate, supplier will immediately:

1. start transition of work to Buyer;

2. prepare and submit to Buyer an itemization of all completed and partially completed Deliverables
and Services;

3. deliver upon request any work in process. Buyer will compensate Supplier for the actual and
reasonable expenses incurred by Supplier for work in process up to and including the date of
termination, provided such expenses do not exceed the Prices.

4. deliver to Buyer Deliverables satisfactorily completed up to the date of termination at the
agreed upon Prices in the relevant PSOW and the relevant Purchase Order.

Buyer may terminate a PSOW and/or a Purchase Order without any penalty or other liability to
Supplier upon written notice to Supplier if the applicable Buyer’s Customer terminates the Customer
Contract with IBM. Where Buyer terminates a PSOW and/or a Purchase Order without Cause, Supplier
Personnel headcount ramp down will take place at a rate of 25% of the then current project staff
starting from the notice date so as to complete the ramp down within 4 months as guideline. Each
month Buyer shall pay to Supplier the services charges for Supplier resources who remain. Should
the termination require immediate cessation of all services, subject to the notice period above.
Buyer shall pay to Supplier the aggregate of the labor costs according to the ramp down plan
described above. However, the actual execution of ramp down % and duration in each project will be
subject to Buyers’ plan

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Buyer may offer to hire Supplier Personnel without any additional charges to Buyer, piror to Buyer
approaching Supplier’s personnel, with the consent in writing from Supplier not to be unreasonably
withheld.

8.3.2 With Cause

Upon termination with Cause, in accordance with Buyer’s written direction, Supplier will
immediately:

1. start transition of work to Buyer;

2. prepare and submit to Buyer an itemization of all completed and partially completed Deliverables
and Services;

3. deliver upon request any work in process.

4. deliver to Buyer Deliverables satisfactorily completed up to the date of termination at the
agreed upon Prices in the relevant PSOW and the relevant Purchase Order.

Where Buyer terminates a PSOW and/or a Purchase Order with Cause as provided in Section 15.2 of
Base Agreement, then Buyer will not be liable for any termination charges, costs or penalties. In
order to facilitate the transition of the projects from Supplier to Buyer, without any additional
cost to Buyer, Supplier will maintain the Delivery Company ties for a four month period. During
this period, Supplier will not be allowed to ramp down their personnel at a rate more than 25% (per
month) of the project staff at the time of notice. Supplier will not be liable for any costs for
such transition.

Conditions for non-solicitation of employees between Supplier and Buyer are defined in BA and in
Section 11.5 of MSOW. Supplier will give Buyer reasonable access to Supplier Personnel to
facilitate Buyer making offers.

8.4 Subcontractors

Supplier will not subcontract any of its work under this Agreement to any third party or
Affiliate without Buyer’s written consent. For any subcontractor Supplier proposes, Supplier will
conduct all reviews and complete and submit any documentation as requested by Buyer to evaluate the
subcontractor. For any subcontractor approved by Buyer, Supplier will also conduct reviews and
complete and submit documentation as requested by Buyer on an annual basis to reevaluate the
subcontractor. Buyer has no obligation to approve any subcontractor. Under no circumstances will
Supplier permit any subcontractor that has been approved by Buyer to subcontract further. Upon
Buyer’s request, Supplier will immediately stop using a subcontractor that Buyer has previously
approved.

In no event does this clause relieve Supplier of meeting its obligations under the MSOW or relevant
PSOW(s).

8.5 Staff Rotation

If per PSOW Supplier is responsible to deliver a project. Supplier can have a policy of
rotating resources including Key Personnel out of the DC on completion of 18-month on a project. A
rotation plan will be drawn up by Supplier every 3 months and consent of Buyer obtained. The
roll-off of resources from a project will be planned and tracked.

If Supplier wishes to re-assign a member of the Project, before 18 months on a project, prior
written consent of Buyer would be obtained and Buyer would respond to such request within 10
business days. All rotation costs and transition of Supplier resources are to be borne by Supplier.
However, Buyer has right to request for staff rotation at any point of time during the project
duration upon mutual agreement.

In the event of an End customer contract requiring retention of resources for a longer period
of time, Buyer has the right to deny approval for rotation on completion of 18 months on a
project.

8.6 Work Hours

Specific Customer requirements will be defined within the PSOW.

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8.7 Workforce Management

The following table explains the standards for evaluation of resources working within DC.
Specific Customer requirements will be defined within the PSOW.

	 	 	 	 	 
	1

	 	Low Performance
	 	Buyer can request replacement of a low performing resource.
	 
	 	 	 	 
	 

	 	 	 	The cost of replacement is borne by Supplier.
	 
	 	 	 	 
	 

	 	 	 	The Cost of Replacement includes but not limited to
	 
	 	 	 	 
	 

	 	 	 	
    •     Travel cost

	 
	 	 	 	 
	 	 	 	 	
    •     Lease Breakage for onsite resources

	 
	 

	 	 	 	Shadowing / Project transition Period to be mutually agreed based on the
Role/Responsibility not exceeding 4 weeks
	 
	 	 	 	 
	2

	 	Turnover Backfills
	 	Cost of turnover back-fill at DC locations or onsite will be borne by Supplier
Replacement must be done with in 5 work days at their Place/location of work as
per PSOW.
	 
	 	 	 	 
	3

	 	People

Management

Efforts
	 	Supplier should assign people managers to take care of their personel in a ratio
of no less than 1 Mangers to 10 Consultants] that has been agreed to between
Buyer and Supplier. The Supplier standard policies will be used and Buyer will
not be unreasonably withheld.
	 
	 	 	 	 
	 

	 	 	 	This applies to Supplier Regular resources only (both at onsite and DC locations)
	 
	 	 	 	 
	4

	 	Resource

Confirmation
	 	All Resources will be reveiwed and confirmed/approved by Buyer. Billing will be
done only with a valid PSOW or PO
	 
	 	 	 	 
	 

	 	 	 	Billing Start Date.
	 
	 	 	 	 
	 

	 	 	 	The Buyer will be billed for the resource on the position from the start date
that was recorded in PSOW/Staffing plan at the time of the resource
confirmation. However Supplier will bill the resource only on completion of
knowledge transfer wherever applicable, based on confirmation from Buyer PM,
with confirmed billing date.
	 
	 	 	 	 
	 

	 	 	 	Re-scheduling Start Date
	 
	 	 	 	 
	 

	 	 	 	If the start date is re-scheduled after resource confirmation, Buyer will inform
the revised start date to the Supplier. Supplier will only bill at the end of
transition date.
	 
	 	 	 	 
	 

	 	 	 	Buyer and Supplier will mutually agree whether a confirmed resource should be
released and therefore unconfirmed, if the reschedule start date is more than 4
weeks from original date.
	 
	 	 	 	 
	 

	 	 	 	Cancelling Confirmed Request
	 
	 	 	 	 
	 

	 	 	 	In the event the resource request is cancelled after confirmation, Supplier will
bill Buyer for a maximum of 10 business days or until the resource is redeployed
whichever is earlier.
	 
	 	 	 	 
	 

	 	 	 	In the event the confirmed resource has incurred any specific cost

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	 	 	 	(travel, training etc) as per the PSOW the costs will be billed to Buyer.
	 
	 	 	 	 
	5

	 	Reserved Resources
	 	Supplier is expected to keep a reserved pool of resources to make sure
that there is no disruption to the DC resource pool or Project due to
turnover/absence/unexpected events where a performing employee abstains
from work.
	 
	 	 	 	 
	6

	 	Customer Holidays
	 	Buyer is obligated to inform Supplier of Customer holidays that effect
both onsite and DC work schedules in advance of the contract signing or
as soon as these are known to Buyer. 

Buyer and Supplier will work together to accommodate these Customer
holidays into the work schedule by mutual agreement.

9.0 Charges

The PSOW will set out the basis of the charges. The parties may agree to change the cost basis
as a Project progresses. The cost does not include any special infrastructure (dedicated link,
dedicated LAN, Cell Phones, VPN connectivity & usage charges provided onsite) or tools. Charges for
the services to be performed are estimated in RMB, and paid in RMB.

Depending on Supplier’s ability to meet its obligations and the business need, Supplier and Buyer
intend to work on various Projects during the term of this MSOW. Supplier’s prices will reflect
its ability to recover costs over a longer-term relationship and the need to be competitive.
Supplier’s prices will be no higher than the prices in the Section 17.0 of Base Agreement
#4908009099 unless the requirements of the Project lead Supplier to incur more cost than
anticipated in the Base Agreement. Supplier’s price shall have factored in the following cost
breakdown items:

	 	 	 
	No	 	Cost Item
	1.

	 	Average Salary
	2.

	 	Average Bonus
	3.

	 	Hiring
	4.

	 	Training
	5.

	 	IT services
	6.

	 	Workplace Cost
	7.

	 	Occupancy and General services
	8.

	 	Back-office
	9.

	 	Minus Marketing/sales Expense
	10.

	 	Taxes
	11.

	 	Others

	 	•	 	Office cost includes transportation cost, T&L, office consumable material, and
communication cost.
	 
	 	•	 	Occupancy and Gen Services include renting, building administration,
furniture depreciation, and air condition cost.

10.0 Billing and Payments

10.1 Payments

All billing inputs will be based on monthly billing sheets that Supplier Operations Manager
will provide to Buyer Operations Manager. It will be the responsibility of Supplier to ensure that
labor hours are accurate and correct.

Supplier Operations Manager will submit the invoice at the end of the Claim month for actual
services performed, after the timesheets have been approved by Buyer. Claim month commences from
the Monday before the last

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Wednesday of the previous month, or later if the project started at a later date till the Friday
immediately preceding the last Wednesday of the current month.

All invoices should be submitted along with the necessary supporting information to Buyer’s
Accounts Payables Department. More details on the invoicing instructions are attached as Annexure B
to this MSOW. The payment shall be made with Payment Term of 60 days from the date of receipt of a
valid invoice from the Supplier.

Supplier shall provide a copy of the invoice with all supporting documents to Buyer Operations
Manager

Invoices for the services rendered should be raised in the same currency as per the Purchase Order
released from time to time. Invoices raised in a currency, which is different to the currency
mentioned in the Purchase Order, will not be processed for payments.

10.2 Invoicing

	(a)	 	Supplier shall invoice Buyer once per month per PO, by means of an electronic file, for all
amounts due under this MSOW no later than the 10th workday of each month.
	 
	(b)	 	Invoices to Buyer must include the following:

	 	 	 	PO Number
	 
	 	 	 	Applicable PO line Item Numbers
	 
	 	 	 	Terms of Payment as stated below
	 
	 	 	 	Exact Billing Period Dates
	 
	 	 	 	Name & Skill Classification of Supplier’s Personnel performing invoiced Services
	 
	 	 	 	Number of Months Supplier’s Personnel performing invoiced services
	 
	 	 	 	Applicable Bill Rates
	 
	 	 	 	Other Authorized Costs (e.g., business travel)
	 
	 	 	 	Total Amount Invoiced
	 
	 	 	 	Other Required Data, if any.

	(c)	 	To the extent a refund, credit or other rebate may be due Buyer (either for goods or services
paid for by Buyer or otherwise pursuant to this MSOW), Supplier shall provide Buyer with an
appropriate credit against amounts then due and owing on the invoice following the month in
which the credit is determined to be owed; if no further payments are due to Supplier,
Supplier shall pay such amounts to Buyer within sixty (60) calendar days.
	 
	(d)	 	Supplier will not get paid for resources starting to work without PO issued by Buyer.

10.3 Visa Expense Reimbursements

Buyer would reimburse the visa fees associated with obtaining business visa (for short
term travel), Supplier should provide the copy of valid invoice to Buyer for process.

10.4 Expense Reimbursements

Expense reimbursements in addition to those mentioned in this section and will be reimbursed as
per standard Buyer or Buyer Affiliated Company’s travel policies, Supplier shall provide copy of
valid invoice to Buyer for process. All such travel shall be with prior approval of concerned
Project Manager and in line with the Purchase Order issued for the same. The reimbursement shall be
against production of invoice accompanied by all supporting documents such as original Bills /
ticket jackets. No other charges / fees will be paid apart from the ones mentioned in the Purchase
Order.

10.5 Payment Term

Invoices are due and payable net 60 days from receipt of an acceptable invoice provided

10.6 Accountability

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	(a)	 	Supplier shall maintain complete and accurate records of, and supporting documentation for,
all amounts chargeable to, and payments made by, Buyer under this MSOW, in accordance with
generally accepted accounting principles applied on a consistent basis, and shall retain such
records in accordance with Buyer’s records retention policy as this policy may be adjusted
from time to time.
	 
	(b)	 	Supplier agrees to provide Buyer with documentation and other information with respect to
each invoice as may be reasonably requested by Buyer to verify that Supplier’s charges are
accurate, correct, and valid in accordance with the provisions of this MSOW. To the extent
that Supplier fails to provide such documentation or other information requested by Buyer and
Buyer so notifies Supplier of such failure, the due date for payment of the related charge
shall be tolled until Supplier provides such documentation or other information.

10.7 Taxes and Duties

The rates are inclusive of all taxes including business tax. All taxes, duties or fees of any
nature whatsoever levied by any Government or local authority in China on or pertaining to the work
to be performed or materials supplied under this Agreement are to be borne and paid by Supplier
unless agreed otherwise in the PO. Provided however that Buyer shall withhold any taxes leviable on
the payments to be received by Supplier from Buyer for the work performed by Supplier hereunder
according to the applicable tax laws and regulations.

11.0 Other Terms & Conditions

11.1 List of Deliverables

	 	 	 	 	 
	DC Master Transition Plan

	 	One Soft copy by E-mail
	 	Buyer Program Manager
	High Level Risk Management Plan

	 	One Soft copy by E-mail
	 	Buyer Program Manager
	Staffing Ramp up Plan

	 	One Soft copy by E-mail
	 	Buyer Program Manager
	H/W, S/W requirement

	 	One Soft copy by E-mail
	 	Supplier Program Manager
	Updated Staffing Plan

	 	One Soft copy by E-mail
	 	Buyer Operations Manager
	Weekly Status Report

	 	One Soft copy by E-mail
	 	Buyer Operations Manager
	Monthly Status Report

	 	Monthly basis by E-mail
	 	Buyer Operations Manager
	Change Request (if any)

	 	One soft copy by E-mail
	 	Buyer Operations Manager

All the follow on management and tracking reports will be defined between Buyer’s and
Supplier’s Program managers as see required

11.2 Completion Criteria

Supplier shall have fulfilled its obligation under this MSOW when any one of the following
first occurs:

Supplier accomplishes all the tasks as described under “Supplier Responsibilities” in
accordance with their completion criteria. The term of the MSOW has been reached. Supplier provides
the number of hours or dollars of services to Buyer as specified in the agreed cost baseline for
the Program. Buyer and Supplier mutually terminate the MSOW in accordance with the termination
provisions of this MSOW.

11.3 Acceptance Criteria

With the exception of Status Reports (both weekly and monthly, as described in PSOW), each
deliverable document item, as defined in Section 11.1, will be approved in accordance with the
following procedure:

	 	•	 	One (1) draft of the deliverable material will be submitted to Buyer Project Manager. It
is Buyer Project Manager’s responsibility to make and distribute additional copies to any
other reviewers. .

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	 	•	 	Within five (5) business days Buyer Project Manager will either approve the deliverable
Material or provide Supplier Project Manager a written list of requested changes, defects or
non-complete work. If no response from Buyer Project Manager is received within five (5)
business days then the deliverable material shall be deemed approved and Supplier will send
the one (1) copy of the final version of the document.
	 
	 	•	 	If a written list of requested changes, defects or non-complete work is received within
five (5) business days, Supplier Project Manager will make the agreed upon revisions and
will, within five (5) business days, resubmit the updated final version to the Buyer Project
Manager. When Supplier has completed the agreed upon changes, then document will be deemed
accepted.

11.4 SLAs on Deliverables:

	 	 	 	 	 
	SI. No.	 	Criteria	 	Planned
Estimate / Comment
	1

	 	Turnover & No-shows
	 	Should be less than Buyer standard
or an industry average published by
HR, whichever is lesser and will be
revalidated every 6 months.
	 
	 	 	 	 
	2

	 	Key resource

retention
	 	Equal to or better than Supplier’s
target for key resource retention
across the company and to be
validated every 6 months
	 
	 	 	 	 
	3

	 	Fulfillment
	 	As per the monthly actual demand plan
	 
	 	 	 	 
	4

	 	Deliverables (as

appropriate per

PSOW)
	 	Critical deliverables and work
products for each project will be
identified during the transition
phase by Buyer PM and project SLAs
wilt be evolved against which
Supplier will have to comply.

All computation of the penalties, except that associated with the key resource retention would be
on a quarterly basis. Exceptions include any delay or failure to comply with these criteria due to
any act beyond the control of Supplier, excluding labor disputes, provided Supplier notifies Buyer
of actual occurrence of such exceptions immediately.

11.5 Solicitation of Employees

Both Buyer and Supplier agree that neither party shall offer employment, for a period of one
(01) year from the date of completion of assignment or end of this agreement, which ever is
earlier, to the personnel of the other party working on assignnment of Buyer. However Buyer may,
with’s Supplier’s consent, make an offer of employment to Supplier’s employees in the event
Supplier is unable to retain such employees on their rolls. Supplier shall not unreasonably withold
such consent.

Buyer or any Buyer affiliate shall not be precluded from hiring any employee of Supplier who

	(i)	 	initiates discussions regarding such employment without any direct or indirect solicitation
by Buyer or any Buyer affiliate,

	(ii)	 	responds to any public advertisement placed by the Buyer or any Buyer affiliate in a
publication of general circulation, or

	(iii)	 	has been terminated by Supplier prior to the commencement of employment discussion between
the Buyer or any Buyer affiliate and such personnel.

11.6 Contract Changes

11.6.1. Cancellation Options

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Withdrawal by any party to this document for any reason requires mutual agreement including
addressing all financial considerations

11.6.2. Contract Changes

Both parties agree that changes to this document and any PSOWs issued under this document,
pursuant to any changes to the contract between Buyer and End customer, will be made in accordance
with the Change Control Procedure; and all commitment to the End customer that in any way affect
the performance under the contract will be the responsibility of Buyer.

11.6.3 Amendments

Project execution amendments to the document may be required. It will be the responsibility of the
initiator of the amendment to obtain concurrence and agreement of the other organization affected
prior to such amendment being written into the document.

12.0 Change Control Procedure

During the course of this MSOW, either party may request a change to this MSOW. A Project
Change Request (PCR) will be the vehicle for communicating change. The PCR must describe the
change; the rationale for the change and the effect the change will have on the Project. All such
requests will be submitted in writing. Any change to a MSOW may result in a change in the
Deliverable Items or Charges.

Depending on the extent and complexity of the requested change Supplier may charge for the effort
required to analyze a requested change. In such instances, Supplier will notify Buyer in writing
of the estimated cost of such analysis.

The changes will be in effect when both parties sign a written Change Authorization. The Change
Authorization will modify and take precedence over any inconsistent terms of the applicable MSOW
or any previous Change Authorization and will reflect as an amendment to this MSOW. The following
provides a detailed process to follow if a change to this MSOW is required.

12.1 Investigation of Change Request

12.1.1. Part I Investigation of Change Request

	a.	 	The designated Manager of the requesting party will review the proposed change and determine
whether to submit the request to the other party.

	b.	 	Both the Managers reviews the PCR and either reject it or authorize further investigation to
estimate and price the effort. Such rejection or authorization will be documented on the PCR
and signed by both parties.

	c.	 	If authorization for further investigation is granted, it will be assigned to the appropriate
individual for estimation. Upon completion of this effort, the PCR will then be returned to
the Managers for their review. If the investigation is authorized then both the Managers will
sign the PCR, which will constitute approval for the investigation charges. The investigation
will determine the effect that the implementation of the PCR will have on Scope, Schedule, and
Resource requirements

	d.	 	The results of the investigation will be documented, and the PCR will be provided to the
Buyer Operations Manager for review and authorization for implementation.

12.1.2.
Part II Change Implémentation

	a.	 	Once Buyer Operations manager approves the PCR, Buyer and Supplier Program Managers will
review the PCR and either reject or approve it for implementation by having authorized
representatives of both parties sign the PCR.

	b.	 	Appropriate funding documentation must be issued prior to the implementation of any change.

	c.	 	Both Supplier and Buyer Managers will review and provide implementation status and any
related issues to the Delivery Manager(s) until the PCR is fully implemented and closed.

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13.0 Transition Assistance

At the termination of a Transaction Document and/or upon termination of this Agreement,
Supplier shall reasonably cooperate with Buyer to orderly, timely and efficiently transfer the
Services to Buyer, Buyer’s Customer or the Customer’s replacement service provider, as applicable.
Buyer shall have the option to continue purchasing Services from Supplier, for up to 12 months
following termination, on the then current pricing, terms and conditions of this Agreement,
including applicable Service Levels. Notwithstanding the foregoing, if this Agreement is terminated
by Supplier due to Buyer’s failure to timely pay fees for Services rendered, Buyer will first
provide financial security and/or guarantees of performance that are reasonable and satisfactory to
Supplier before Supplier continues to provide such Services.

14.0 Annual Renewal

	1.	 	Upon the expiration of the initial 3 year services contract, Buyer would have right to
automatically annually renew the contract under substantially the same terms and conditions
including Option to Transfer provisions.

	2.	 	Upon the expiration of the initial 3 year services contract, Buyer would have the right to
transition Client work back to Buyer should the option to transfer be not exercised.

15.0 Agreement

Authorized Signatures/Approvers:

The parties acknowledge that they have read this MSOW, understand it and agree to be bound by its
terms and conditions. Furthermore, the parties agree that the complete and exclusive statements of
the agreement between the parties relating to the services described herein consist of (1) the Base
Agreement, (2) this MSOW and (2) any applicable PSOWs and authorized PCRs signed by both parties.

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The respective responsibilities of each organizational representative are hereby acknowledged and
accepted by:

	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	ACCEPTED AND AGREED TO:
	IBM Global Services (China) Co. Ltd.	 	Camelot Information Systems (China) Corp. Ltd
	 
	 	 	 	 	 	 
	By:

	 	/s/ Henry Wk Chow	 	By:	 	/s/ Simon Ma
	 	 	 	 	 	 	 
	 	 	Buyer
Signature                          Date	 	 	 	Supplier Signature                          Date
	 
	 
	 	 	(SEAL)

	 	 	 	(SEAL)	 
	 
	 	 	 	 	 	 
	 	 	Printed Name	 	 	 	Printed Name
	 	 	Henry Wk Chow	 	 	 	Simon Ma
	 	 	Title & Organization	 	 	 	Title & Organization
	 	 	Chairman, IBM Global Services (China) Co. Ltd.	 	 	 	Chairman, Camelot Information Systems
(China) Corp. Ltd.
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Buyer Address:	 	 	 	Supplier Address:
	 	 	25/F Pacific Century Plaza	 	 	 	11th Fl, Zheiiang Tower
	 	 	No. 2A, Gong Ti Bei Lu, Chaoyang District,	 	 	 	26 North Ring 3 Road,
	 	 	Beijing, Zip code 100027	 	 	 	Beijing, 100029
	 	 	P.R. China	 	 	 	P.R. China
	 
	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 	 	 
	 
	 	 	 	 	 	 
	IBM Global Services (China) Co. Ltd.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Anne Lee Chen	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Buyer Signature                          Date	 	 	 	 
	 
	 
	 	 	(SEAL)
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Printed Name	 	 	 	 
	 	 	Anne Lee Chen	 	 	 	 
	 	 	Title & Organization	 	 	 	 
	 	 	Director, Asia Pacific Sourcing, Global Procurement, IBM 

Integrated Supply Chain	 	 	 	 
	 	 	Buyer Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	13/F, JinMao
Tower, No. 88 Century Blvd, PuDong District,	 	 	 	 
	 	 	Shanghai PRC 200121

	 	 	 	 

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Annexure A: Holiday Schedule for 2008

	 	 	 	 	 	 	 
	Location	 	Date	 	Week	 	Type of Leave
	PRC

	 	January 1
	 	 
	 	New Year’s Day
	 
	 	 	 	 	 	 
	PRC

	 	February
	 	 	 	Chinese New Year’s Day
	 
	 	 	 	 	 	 
	PRC

	 	April
	 	 	 	Qing Ming Jie Day
	 
	 	 	 	 	 	 
	PRC

	 	May
	 	 	 	Labor Day
	 
	 	 	 	 	 	 
	PRC

	 	September
	 	 	 	Mid-Autumn Festival Day
	 
	 	 	 	 	 	 
	PRC

	 	October
	 	 	 	National Day

The above information is for reference only. Specific holiday schedules to be defined and agreed
per PSOW

Annexure B: Other Charges

B1.1 Travel Charges

All Travel costs and conditions will be as per the travel expense policy provided by Buyer.

	 	 	 
	Items	 	Description
	Air Ticket

	 	Economic Class by actual
	 
	 	 
	Per Diem

	 	RMB 100.0 per. day
	 
	 	 
	Local 

Transportation (for 

Business Purpose)

	 	Bus by actual

Train by actual *
	 	Flight by actual **
	 	Max RMB 40.0 Taxi fee per day
	 
	 	 
	Hotel Accommodation

	 	RMB 200.0 per. day
	 
	 	 
	 

	 	1. All T&L claims must follow T&L Guidelines on above with approval from IBM Project
Manager
	 
	 	 
	 

	 	2. Supplier shall pay the bill of T&L to agent and reimburse the actual expenses
through IBM purchase order
	 
	 	 
	Terms & Conditions

	 	3. Supplier must list all travel expense and provide original receipts’ copy (in
Supplier’s title) to IBM Project Manager for verification and approval for all expense claims
	 
	 	 
	 

	 	4. Expense claims will become invalid if the period of spending already exceed 90 days.
	 
	 	 
	 

	 	5. If Supplier fails to provide the supporting documents, the claim will be rejected.
	 
	 	 
	 

	 	6. Transportation from local IBM office and hotel is covered by Per diem, can not be
claimed.
	 
	 	 
	 

	 	7. Travelers must use the economy class and the lowest airfare available for all
overseas travels

	 		
	Note: * Inland home visit by train is only allowable once per. week

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	**	 	Inland home visit by flight is only allowable once per. month

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Annexure C — Skills Definition

Job Code Reference

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	C.1 Implementation Skills Table :

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Job code	 	ABAP-6	 	ABAP-7	 	6	 	7	 	8	 	9	 	10	 	11
	Education

	 	Bachelor

or above
	 	Bachelor or

or above
	 	Bachelor

or above
	 	Bachelor

or above
	 	Bachelor

or above
	 	Bachelor

or above
	 	Bachelor

or above
	 	Bachelor

or above
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Language Capability

	 	Fluent in

reading &

writing

Eng or Jap
	 	Fluent in

reading &

writing

Eng or Jap
	 	Fluent in

reading &

writing

Eng or Jap
	 	Fluent in

reading &

writing

Eng or

Jap
	 	Fluent in

reading &

writing

Eng or Jap
	 	Fluent in

reading &

writing

Eng or Jap
	 	Fluent in

reading &

writing

Eng or Jap
	 	Fluent in

reading &

writing

Eng or Jap
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Service years

	 	1-4

years as

APAPer
	 	4-6

years as

ABAPer
	 	1-3 years
as SAP
Consultant
	 	3-4 years
as SAP
Consultant
	 	4-6 years
as SAP
Consultant
	 	6-8 years
as SAP
Consultant
	 	8-10 years
as SAP
experience
	 	More than 10 years
as SAP
Consultant
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Certification

	 	Not

Required
	 	Not

Required
	 	Not

Required
	 	SAP

Certificate

preferred
	 	SAP

Certificate

required
	 	SAP

Certificate

required
	 	SAP

Certificate

required
	 	SAP

Certificate

required

 

			
	Note * — One year experience in external consulting is to be taken as full service year. One year
in internal consulting is to be taken half year in count. SAP end-user experience is not taken in
count.

	 	 	 
	Area	 	Module
	ABAP Development

	 	ABAP
	Advanced Planner and Optimiser

	 	APO
	Basis Components

	 	BC
	Business Warehouse

	 	BW
	Controlling

	 	CO
	Customer Relationship Management

	 	CRM
	Customer Service

	 	CS
	Enterprise Portal

	 	EP
	Financial including Asset Accounting

	 	Fl
	Human Resource

	 	HR
	Material Management

	 	MM
	Personnel Admin & Payroll

	 	PA
	Plant Maintenance

	 	PM
	Production Planning

	 	PP
	Project System

	 	PS
	Quality Management

	 	QM
	Sales & Distribution

	 	SD
	Strategic Enterprise Management

	 	SEM
	Supplier Relationship Management

	 	SRM

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	Area	 	Module
	Treasury

	 	TR
	Warehouse
Management 
Exchange Infrastructure

	 	WM 
XI

Annexure D — Delivery Company Headcount Target

Buyer, Buyer Affiliates will pro actively work with Supplier to ensure the delivery
center as a whole maintains an annual average resource utilization target rate of 90% on a
base of 249 days. The parties agree to use all operational means practical to manage to the
utilization target including, but not limited to, deploying unused resources in the
delivery center to work on Customer projects managed and fulfilled directly by the Buyer,
Buyer Affiliates and/or Customer work of the Supplier outside the delivery center. Supplier
will produce weekly delivery center utilization reports. The operational committee will
review headcount and delivery center utilization on a weekly basis and determine the
optimal solution to ensure resources are productive and efficiently deployed based on the
demand forecast. Should actual annual average utilization rate of the delivery center fall
below the target. Buyer and Buyer Affiliates will compensate Supplier up to the target
rate.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012
	ABAP -6
	 	 	8	 	 	 	24	 	 	 	56	 	 	 	56	 	 	 	56	 
	Band 6
	 	 	28	 	 	 	68	 	 	 	132	 	 	 	132	 	 	 	132	 
	ABAP -7
	 	 	10	 	 	 	30	 	 	 	70	 	 	 	70	 	 	 	70	 
	Band 7
	 	 	70	 	 	 	170	 	 	 	330	 	 	 	330	 	 	 	330	 
	Band 8
	 	 	44	 	 	 	108	 	 	 	212	 	 	 	212	 	 	 	212	 
	Year End Total
	 	 	160	 	 	 	400	 	 	 	800	 	 	 	800	 	 	 	800	 

	 	 	 	 	 	 	 	 	 
	Year / 	 	Logistic Consultant	 	Finance Consultant	 	Technical Consultant	 	 
	 Category	 	(MM/PP/SD/PM/WM)	 	(FI/CO/TR)	 	(ABAP, Java)	 	Total
	Target Band
	 	B8 - 30%	 	B8 - 30%	 	B8 - 10%	 	 
	Level Mix
	 	B7 - 50%	 	B7 - 50%	 	B7 - 50%	 	 
	Level Mix
	 	B6 - 20%	 	B6 - 20%	 	B6 - 40%	 	 
	Year 1 (2008)
	 	80	 	60	 	20	 	160
	Year 2 (2009)
	 	200	 	140	 	60	 	400
	Year 3 (2010)
	 	400	 	260	 	140	 	800

 

			
	Note * : The actual resources pool size will be at IBM discretion

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Annexure E — Security Policy Guidelines for DC

Table of Contents

	 	 	 
	1. INTRODUCTION
	 	31
	2. INTENDED AUDIENCE
	 	32
	3. ENFORCEMENT
	 	32
	4. REVIEW OF POLICY
	 	32
	5. SCOPE
	 	32
	6. ORGANIZATIONAL SECURITY
	 	32
	6.1 Security Organization
	 	32
	6.1.1 Organization Structure
	 	32
	6.1.2 Roles and Responsibilities
	 	33
	6.2 IT Procurement
	 	33
	6.3 Audit
	 	33
	6.4 Third Party
	 	33
	7. ASSET CLASSIFICATION AND CONTROL
	 	33
	7.1.1 Asset Inventory
	 	33
	8. PHYSICAL SECURITY
	 	34
	8.1 Security Guards
	 	34
	8.2 Access Control
	 	34
	8.2.1 Clients Specific Areas
	 	34
	9. LOGICAL SECURITY
	 	34
	9.1 Protecting system and application integrity
	 	35
	9.1.1 User ID’s and Passwords
	 	35
	9.2 Operating System Resources
	 	35
	10. BUSINESS CONTINUITY MANAGEMENT
	 	36
	10.1 Harmful Code
	 	36
	10.2 Security Advisory Patch
	 	36
	11. HARDWARE SECURITY
	 	37
	12. CHANGE CONTROL MANAGEMENT
	 	38
	13. CLEAR DESK POLICY
	 	38
	14. E-MAIL POLICY
	 	38

1.0 Introduction

The security policy should clearly define its purpose and management direction for the security
of information.

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Through the policy the management should
demonstrate their support for information security through the issue of a Company information
security policy. The owner of the policy should be clearly defined.

2.0 Intended Audience

The policy should clearly mention the personnel to whom the policy applies.

3.0 Enforcement

The policy should define the process of its enforcement and the consequences of its breach if
any.

4.0 Review Of Policy

The process for reviewing the policy document should be clearly defined. The process should
define the minimum review period and the personnel responsible for conducting the review. The
process to updating or modifying the document should be defined including the authorizing agency.

The review process should encompass the following.

	 	•	 	Regular reviews of policy and standards
	 
	 	•	 	Regular review of security responsibilities
	 
	 	•	 	Monitoring significant changes in the exposure of information assets to major threats
	 
	 	•	 	Regular reviews and monitoring of security incidents
	 
	 	•	 	Regular reviews of exposure to threats
	 
	 	•	 	Approve initiatives for enhancing information security

5.0 Scope

The scope of the policy should clearly outline all aspects of Information security that will
come under its preview. The scope of the policy should contain definitions of specific and general
responsibilities for all aspects of information security Typically the scope should encompass but
not limited to the following.

	 	•	 	Organizational Security
	 
	 	•	 	Asset, classification and control
	 
	 	•	 	Personnel Security
	 
	 	•	 	Incident reporting
	 
	 	•	 	Physical Security
	 
	 	•	 	Logical Security
	 
	 	•	 	Business Continuity management.
	 
	 	•	 	Education & awareness
	 
	 	•	 	Compliance & audit

6.0 Organizational Security

     6.1 Security Organization

The security organization should support the management of Information Security within the
enterprise.

     6.1.1 Organization Structure

A management framework (i.e. defined responsibilities and communication channels within the
organization) should be established to initiate and control the implementation of Information Security within
the organization.

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A senior Security Management Forum should
be established to approve Information Security policy, assign security roles and responsibilities,
and to co-ordinate the implementation of all aspects of security throughout the Company. It is
expected that the DC should have an identified focal point (Manager) for information security this
will however depend on the size of the DC.

     6.1.2
Roles and Responsibilities

Roles and responsibilities for the protection of individual assets and for carrying out specific
security processes should be explicitly defined and allocated.

The owners of all information assets should be identified and their acceptance of the associated
responsibilities should be recorded.

     6.2
IT Procurement

The security policy should ensure the process to ensure that all purchases and installation of
IT equipment and services are properly authorized and approved to ensure that there is a clear
business purpose for the equipment and also that its installation will not adversely affect
existing security measures and that new equipment or services are provided with a sufficient level
of security.

     6.3
Audit

All processes related to the security of the organizations should have measurable components
and process compliance should be audited at regular frequencies. The audit reports should be
documented in predefined templates and should be submitted to the Client.

     6.4
Third Party

Risks associated with third parties should be identified and assessed with respect to:

physical access

Logical Access

Non disclosure agreements with third parties should be signed

7.0 Asset Classification and Control

The security policy should ensure processes that will enable appropriate protection for Company
and customer assets.

Examples of assets associated with Information Technology are:

Information assets: databases, files, documentation etc.

Software assets: system software, applications, development tools etc.

Physical assets: computer equipment, tapes, disks, power supplies etc.

Services: computing and communications services, heating, lighting etc.

All major information assets should be accounted for and should have a nominated owner. If
appropriate an information classification system should be implemented to ensure that information receives the
correct level of protection.

Accountability for assets helps ensure that adequate security protection is maintained. Owners,
should be identified for major assets and assigned responsibility for the maintenance of appropriate security
measures.

Responsibility for implementing such measures may be delegated but accountability may not.

     7.1.1 Asset Inventory

Each asset should be clearly identified with the help of a
unique asset ID.

Each asset should have a location and owner assigned.

The ownership of the asset should be documented and reviewed regularly.

Transfer of assets should be tracked and documented.

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Issue of assets should be properly authorized and documented.

Inventories for all major IT assets should be maintained.

Security classification labels should be used to identify the classifications of sensitive data
contained in reports, files, screen displays, diskettes, tapes or other media.

8.0 Physical Security

Physical access to information technology service resources exposes them to unauthorized
disclosure or erasure of Client Confidential/persona! information, and to interruption of Client
business processes. The physical security policy should ensure that all IT assets and information
should be protected with in the confines of the DC. The policy should clearly define the process
to control the physical movement of assets and people.

     8.1
Security Guards

The security policy should ensure that entry and exit points should be manned by security
guards at all points in time. The security guards should be clearly instructed as to the process
of disallowing entry to unauthorized personnel. The roles and responsibilities of the security
personnel should be clearly defined and documented.

     8.2
Access Control

The policy should ensure that there is proper identification of various areas with in the
premises of the company. The access to the various areas should be clearly defined and controlled
through the use of electronic equipment like magnetic cards etc.

The policy should also ensure some
of the following points.

	 	•	 	Clear location and documentation of Controlled access areas
	 
	 	•	 	Defined use and standards of equipments to be used for controlling access.
	 
	 	•	 	Process to define authorization levels to grant access to various areas
	 
	 	•	 	Process to check and validate authorized access lists with in a specified time frame.
	 
	 	•	 	Process to ensure that When people have their access authorization revoked, either by
request or implicitly through termination of employment, are they immediately removed from
the area access lists
	 
	 	•	 	Process to ensure logs of non-routine area accesses kept which reflect the visitor’s
name, time of entry, the escort or authorizer, and the fact of exit

     8.2.1 Clients Specific Areas

The policy should ensure that there is a process by which Client specific areas are demarked and
access controlled for personnel identified by the Client. The policy should define process by
which records of access to Client specific areas are maintained and presented to the Client at the
time of an audit.

9.0 Logical Security

The security policy must include appropriate logical access control measures designed to
protect system and application integrity by preventing unauthorized changes to software, and to
prevent unauthorized access to Client Confidential information, and personal information about
Client employees, Client business partners or end customers.

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Technical Services Agreement

Master Statement of Work

Base Agreement # 4908009099

Master SOW # 4908009104

     9.1 Protecting system and application integrity

The security policy should clearly outline the processes and systems that will ensure data
integrity and information security. The following points have to be clearly incorporated in the
policy and the processes to maintain them have to be auditable.

          9.1.1 User ID’s and Passwords

The security policy should ensure a process by which each authorized user should be assigned a
unique user ID.

The composition of the user ID should be clearly defined in the policy.

The policy should ensure the revalidation of login names is performed with in a predetermined time
frame.

The policy should ensure that default passwords shipped with operating systems and program products
for use during system and product installation and setup are to be changed as soon as possible during or
following their initial use.

The policy should ensure that adequate protection should be in place to ensure that If passwords
are used for access, not more than certain number of failures (recommended 3) are to prevent unlimited tries for
access.

The policy should clearly define the process and authorization hierarchy for resetting the
passwords that are used for access and those which are locked as a result of a certain number of unsuccessful attempts.

The policy should ensure that the authorization process for access to a application must be based
on business need and should be in the control of the application owner. Specially in cases when access to an
application, including customer Confidential information managed by the application, has to be specifically
requested.

The security policy should ensure the appropriate use of technology to ensure that each user’s
identity must be verified (authenticated) when the user attempts to logon to the system or application/middleware.

The security policy should lay down processes to ensure that in the event of separation of support
staff member from the organization, leave of absence and is not expected to return to regular employment, or no
longer has a valid business need, further access by the member to systems/application is to be prevented.

The policy should ensure that the organization should adhere to the following:

	 	•	 	Passwords are allocated on an individual basis.
	 
	 	•	 	Passwords are kept confidential.
	 
	 	•	 	Paper records of passwords are avoided unless they are stored securely.
	 
	 	•	 	Users are instructed to change passwords if compromise is suspected.
	 
	 	•	 	Not based on anything somebody could easily guess
	 
	 	•	 	Free of consecutive identical characters
	 
	 	•	 	Users are instructed not to use trivial or obvious passwords.
	 
	 	•	 	Passwords are changed on a regular basis.
	 
	 	•	 	The frequency of change is based on the degree of access the user has.

Password policy:

The password policy should define the following

	 	•	 	Minimum length of the password in terms of number of characters (recommended 8
characters)
	 
	 	•	 	Predefined composition of the password like for example the password should contain a
mix of alphabetic and non-alphabetic characters (numbers, punctuation or special characters) or
a mix of at least two types of non-alphabetic characters.
	 
	 	•	 	The policy should define the expiry time of each type of password and this expiry time should be
system driven.

     9.2 Operating System Resources

Operating system resources are those data objects, which are part of the system control
program and its access control mechanism, subsystems, applications and program products supported
by the Vendor. The security policy needs to ensure that proper processes are laid down to ensure
user access at the operating system level is properly managed and controlled.

The policy has to ensure the following.

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Master SOW # 4908009104

	 	•	 	That no operating system resources can be updated by a general user, except where
required for normal system operation on a approval from reporting manager.
	 
	 	•	 	That no general user can read operating system resources which would assist the user to
bypass security controls.
	 
	 	•	 	Where logging is technically possible, the process should ensure that logs are kept of
all unauthorized access attempts to operating system resources for a minimum period of time
(recommended 3 months).

10.0. Business Continuity Management

The policy should ensure adequate protection of the IT infrastructure from external factors
that could harm the regular working of the organization. Some of the important points that
should be covered in the policy are listed below.

     10.1 Harmful Code

The security policy has to ensure that proper systems are put in place to prevent the
propagation and execution of harmful code / Virus.

Some of the important aspects that need to be covered by the policy are as follows.

	 	•	 	Ensure that anti-virus programs are available on all the operating systems.
	 
	 	•	 	All the anti-virus programs are configured to scan for viral signatures daily.
	 
	 	•	 	All anti-virus programs, used are configured to obtain and install virus signature
updates on real-time basis.
	 
	 	•	 	Configure the anti-virus program to scan full system at least once a week.
	 
	 	•	 	If a system becomes infected by a computer virus. Should ensure that controls in place
to minimize the damage caused by the virus.

     10.2 Security Advisory Patch

A Security/Integrity Advisory is a warning of an exposure in a program or process that allows
unauthorized users to gain privileged authority on a system, to bypass access controls, or to gain
unauthorized access to data. The security policy should ensure that a Security/Integrity Advisory
process should be followed to install the fixes. The core requirements for this process are:

	•	 	Determination of risk severity based on vulnerability rating and exploitation category.
	 
	•	 	Notification of fix availability

Procedure to determine the schedule for application of the security/integrity fixes. Only
advisories with available fixes should be installed.

Security/Integrity Advisories should be assigned severities that will be used to determine the
implementation time. The following are some of the criteria that can be used for assigning the
severity.

     Vulnerability Rating:

				
	 	High:	 	Bypassing access control systems or gaining access to a user ID with system or
security administrative authority without the need for a general user ID
	 
	 	Medium:	 	Bypassing access control systems or gaining access to a user ID with system or security administrative authority from an
existing general user ID or unauthorized access to data without the need for a general user ID
	 
	 	Low:	 	Unauthorized access to data from a general user ID or a denial of service attack 

     Once a
Security/Integrity Fix is available, the IT Security Team will notify of it along with the details
and severity rating

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Technical Services Agreement

Master Statement of Work

Base Agreement # 4908009099

Master SOW # 4908009104

	 	 	 	 	 
	Security/Integrity	 	 	 	 
	Fix Notification	 	 	 	 
	Schedule	 	Recommended Value	 	Remarks
	High Severity

	 	3 business days	 	 
	Medium Severity

	 	10 business days	 	 
	Low Severity

	 	30 business days	 	 

Once the security patches have been identified the policy should ensure a proper implementation
methodology along with schedules. The following table can be used as an example to create and
track a implementation schedule.

Implementation Schedule

	 	 	 	 	 
	Implementation Schedule	 	Recommended Value	 	Remarks
	Implementation Schedule

	 	Agreed to schedule must be
documented	 	 
	 
	 	 	 	 
	When will default 

implementation times be used

	 	No implementation schedule
created within 14 days of
notification	 	 
	 
	 	 	 	 
	High Seventy default
implementation time beginning
14 days after notification

	 	60 days	 	 
	 
	 	 	 	 
	Medium Severity default
implementation time beginning
14 days after notification

	 	90 days	 	 
	 
	 	 	 	 
	Low Severity default
implementation time beginning
14 days after notification

	 	180 days	 	 

If the security advisory patch is not installed /or cannot be installed for technical reason. The
Client should be notified and deviations have to be documented. Risk Acceptance to be documented
and registered.

11.0 Hardware security

The security policy should clearly define the level of security and the method of securing
hardware used with in the IT and infrastructure framework. The hardware with in the organization
should be secured physically as well as through the deployment of technology. The policy should
set minimum standards for the use of passwords and software to ensure security of hardware and the
data or information contained in them.

Some of key issues that need to be addressed by the policy are listed below.

	 	•	 	Protection of BIOS through use of password
	 
	 	•	 	Access to Client networks to be allowed through specific workstations.
	 
	 	•	 	Writeable IO devices such as floppy drives, ZIP and CD-RW drives will be internally disabled
or removed.
	 
	 	•	 	All PC’s should be installed with Client specific OS image.
	 
	 	•	 	An approved anti-virus server located on the Internet or the PROVIDER enterprise
network to allow for updates to Anti Virus software installed on the development desktops.
	 
	 	•	 	Workstations to be OS password protected for logging into the system. IBM password
polices will be followed.
	 
	 	•	 	PCs should have anti virus software with compulsory weekly scheduled scans. Updates
of virus definitions will be accomplished as described above.
	 
	 	•	 	The systems will have screen saver passwords

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Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

The policy should ensure that the IT team with in the organizations submits the workstation
compliance report at periodic interval and the report should cover but not be limited to the
following

	 	•	 	List of software installed on each workstation
	 
	 	•	 	Power on password status (enabled/disabled)
	 
	 	•	 	Hard disk password Status (enabled/disabled
	 
	 	•	 	Screen saver password (enabled /disabled)
	 
	 	•	 	Live update
	 
	 	•	 	File sharing
	 
	 	•	 	Personal firewall
	 
	 	•	 	Lotus Notes local database encryption
	 
	 	•	 	Microsoft windows account (user account)

12.0 Change Control Management

The security policy needs to address the process of change with respect to systems and
processes. Change is a very important aspect from a security standpoint as it ensures systems being updated continuously
as per latest standards.

Change control spreads across the entire organization however for IT security its control is very
essential for the following.

	 	•	 	Systems (server and desktop management)
	 
	 	•	 	Networks

Change control has to be the outcome of regular reviews and should be scheduled with in the
framework of the policy. The policy should also allow for unscheduled change control, which arises
of a particular business need. Change control of any kind should be documented and tracked to
closure. Change control should follow fixed methodologies and these methodologies should be
captured in standard templates.

13.0 Clear Desk Policy

The security policy should lay guidelines for a clear desk culture, to be practiced by
employees, contractors in order to protect and adhere to the data security policies and
Information security policies. The organization should ensure that this policy is made aware to
all its employees, contractors and consultants who are using Client related resources, information
and data proprietary to and held by the company in order to perform their day-to-day business
activities.

The policy should make the employees aware as to their responsibility towards data protection
under their control, which may be in the form of documents, or soft ware applications that are
housed in desktops and or laptop computers.

The policy should direct employees towards the process that one must follow in the event of
disposal of any kind of information.

14.0 E-mail Policy

The policy should provide guidelines for the usage of company owned or Client provided common
mail services provided for the use of business interest of the company or Client to the employees.

The policy should clearly outline guidelines to employees having access to official email for the
use of business.

The policy should also ensure the use of appropriate email ID conventions.

The policy should detail the rights and privileges of the employees who have been provide official
email.

The policy should ensure that the company follows standard mail configuration across all users to
enable easy maintenance and control.

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Technical Services Agreement

Master Statement of Work

Base
Agreement # 4908009099

Master SOW # 4908009104

The policy should ensure Retention of mails by employees at an individual level to ensure that a
record of data it maintained and made available at all points in time. The retentions of mail should be classified
depending on the kind of information that the mails contain.

Automatic Forwarding or reply of Email should be controlled to ensure that company confidential
data is not let
out by mistake.

Page 39 of 39

 

Technical Services Agreement

Base Agreement

Base Agreement # 4908009099

Master SOW # 4908009104

This Base Agreement (“Base Agreement”) dated as of March 24, 2008 (“Effective Date”), between IBM
Global Services (China) Co. Ltd. (“Buyer”) and Camelot Information Systems (China) Corp. Ltd.
(“Supplier”), establishes the basis for a procurement relationship under which Supplier and its
Affiliates will provide Buyer and its Affiliates the Deliverables and Services issued under this
Base Agreement and Master Statement of Work 4908009104 (“MSOW”). Deliverables and Services acquired
by Buyer or Customer on or after the Effective Date will be covered by this Base Agreement and
MSOW. This Base Agreement and MSOW will remain in effect until March 31, 2011.

The Structure of Agreement

Buyer is subcontracting to Supplier the provision of certain Services, as its general scope defined
in the MSOW (both the Base Agreement, the MSOW and the PSOWs will be collectively referred to as
“this Agreement”), that it is obligated to provide to its Customers located in People’s Republic of
China. Supplier’s provision of those Services shall be in accordance with the terms of this
Agreement. The parties acknowledge and agree that there may be additional or revised requirements
for particular Customers that will require the amendment or supplementation of these terms. In such
circumstances, the parties will create new services and/or distinct obligations with respect to
those Customers that they will document in Project Statement of Works (“PSOWs”). The PSOWs will be
governed by the terms of the Base Agreement and the MSOW unless the parties specifically agree
otherwise in writing. In the event of a conflict between the terms of a PSOW and the Base Agreement
and the MSOW, the PSOW will control. When used in this Agreement, capitalized terms shall have the
respective meanings ascribed to them in Definitions.

1.0 Definitions

“Affiliates” means entities that control, are controlled by, or are under common control with, a
party to this Agreement.

“Agreement” means this Base Agreement, MSOW, and any relevant PSOWs and other attachments or
appendices specifically referenced in this Agreement.

“Appearance Design” means the appearance presented by an object, formed in hardware or by software
that creates a visual impression on an observer. Appearance Design refers to the ornamental and not the functional
aspects of an object.

“Customer” means Buyer’s customer.

“Deliverables” means items that Supplier prepares for or provides to Buyer or Customer as described
in a PSOW. Deliverables include Developed Works, Preexisting Materials, and Tools.

“Delivery Company” shall have the meaning given such term in the Section 15.5. For the purpose of
this definition, the Delivery Company shall include all its branch offices under the Delivery Company.

“Developed Works” means all work product (including software and its Externals) developed in the
performance of this Agreement as described in a PSOW. Developed Works do not include Preexisting Materials, Tools, or
items specifically excluded in a PSOW.

“Effective Date” means the date this Agreement is last signed by a party.

“Electronic Self-Help” means a process where Supplier electronically disables, removes, or
otherwise prevents the use of its software product without the Buyer’s or Buyer’s Customer’s cooperation or consent. Electronic
Self-Help could be done through electronic or other means (for example: remotely through “back doors” or hidden entrances
in the software or through hidden shut-down commands in the software that can be activated by phone or in other ways).

“Externals” means any pictorial, graphic, audiovisual works, reports or data generated by execution
of code and any programming interfaces, languages or protocols implemented in the code to enable interaction with
other computer programs or end users. Externals do not include the code that implements them.

“Initial Term” means the initial term of this Agreement, which begins on the Effective Date and
continues for three (3) years thereafter.

“Inventions” means ideas, designs, concepts, techniques, inventions, discoveries or improvements,
whether or not patentable, conceived or reduced to practice by Supplier Personnel in performance of this
Agreement.

“Joint Inventions” means Inventions made by Supplier Personnel jointly with Buyer Personnel.

“Master Statement of Work” or “MSOW” means a document that defines the master scope of work to be
accomplished by Supplier and specific responsibilities for various activities / tasks planned to be performed
and completed by Supplier under PSOW.

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Technical Services Agreement

Base Agreement

Base Agreement # 4908009099

Master SOW # 4908009104

“Operational Committee” means a body of representatives from Buyer, Buyer’s Affiliates, Supplier,
and Supplier’s Affiliates delegated to monitor and manage operations executed under this Agreement, MSOW, and PSOW
including, but not limited to, reviewing headcount and delivery center utilization on a weekly basis.

“Participation Agreement” or “PA” means an agreement signed by one or more Affiliates which
incorporates by reference the terms and conditions in this Base Agreement, any relevant SOWs, and other attachments or
appendices specifically referenced in the PA.

“Personnel” means agents, employees or subcontractors engaged or appointed by Buyer, Customer or
Supplier.

“Preexisting Materials” means items including their Externals, contained within a Deliverable, in
which the copyrights are owned by a third party or that Supplier prepared or had prepared outside the scope of this
Agreement. Preexisting Materials exclude Tools, but may include material that is created by the use of Tools.

“Prices” means the agreed upon payment and currency for Deliverables and Services, inclusive of
Taxes and including all applicable fees and payments, as specified in the relevant SOW.

“Purchase Order” means Buyer’s work authorization for Supplier to start working for the shipment of
Deliverables and Services specified by PSOWs, which becomes a legally binding contract once Supplier accepts it.
Supplier will begin work only after receiving a PO from Buyer.

“Renewal Term” means the renewal terms of this Agreement, which shall each be one (1) years
in duration.

“Services” means work that Supplier performs for Buyer or Customer as described in
a PSOW exclusively using the Supplier employees as designated by Buyer.

“Service Level” has the meaning given such term in the
MSOW and PSOWs.

“Project Statement of Work” or “PSOW” means any document that:

1. identifies itself as a statement of work;

2. is signed by both parties;

3. incorporates by reference the terms and conditions of this Base Agreement and MSOW;

4. describes relevant details of the Deliverables and Services, including any requirements,
specifications or schedules unique for each project as applicable;

5. describes respective obligations of Supplier and Buyer to be performed in the areas
specified in this MSOW;

“Statement of Work” or “SOW” means any document that:

1. identifies itself as a statement of work;

2. is signed by both parties;

3. incorporates by reference the terms and conditions of this Base Agreement; and

4. describes the Deliverables and Services, including any requirements, specifications or
schedules.

5. SOW includes both MSOW and PSOW

“Taxes” means any and all applicable taxes, charges, fees, levies or other assessments imposed
or collected by any governmental entity worldwide or any political subdivision thereof and however
designated or levied on sales of Deliverables or Services, or sales, use, transfer, goods and
services or value added tax or any other duties or fees related to any payment made by Buyer to
Supplier for Deliverables and/or Services provided by Supplier to Buyer under or pursuant to this
Agreement; exclusive, however, of any taxes imposed upon the net income or capital of Supplier, any
taxes in lieu of such net income taxes and any other taxes which are to be borne by Supplier under
law.

“Tools” means software that is not commercially available, and its Externals, required for the
development, maintenance or implementation of a software Deliverable.

“Work Authorization” or “WA” means Buyer’s authorization in either electronic or tangible form for
Supplier to conduct transactions under this Agreement in accordance with the applicable SOW (i.e.,
a purchase order, bill of lading, or other Buyer designated document). A SOW is a WA only if
designated as such in writing by Buyer.

2.0 Statement of Work

Supplier will provide Deliverables and Services as specified in the relevant PSOW and/or Purchase
Order. Supplier will begin work only after receiving a Purchase Order duly issued by authorized
personnel of the Buyer. Supplier agrees that it will not be entitled to any payment for any work
performed by it, regardless of whether such work was ordered by Buyer’s personnel, unless the work
was performed pursuant to a duly issued Purchase Order by authorized personnel of the Buyer.
Supplier agrees to waive all rights that it may have under this Agreement or applicable laws for
payment of work done without a duly issued Purchase Order (including without limitation claims
based on tort, breach of contract, unjust

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Technical Services Agreement

Base Agreement

Base Agreement # 4908009099

Master SOW # 4908009104

enrichment and all other causes of action) and further agrees that, notwithstanding the absence of
a duly issued Purchase Order all intellectual property rights for any work delivered to Buyer shall
vest in Buyer and Customer as provided for by the Base Agreement. Buyer may request changes to a
PSOW and/or Purchase Order and Supplier will submit to Buyer the impact of such changes. Changes
accepted by Buyer will be specified in an amended PSOW and/or Purchase Order or change order signed
by both parties. Supplier agrees to accept all Purchase Orders that conform with the terms and
conditions of this Agreement.

3.0 Pricing

Supplier will provide Deliverables and Services to Buyer for the Prices. The Prices for
Deliverables and Services specified in a PSOW and accepted by Buyer as also defined in the Section
1.0 as “Prices.” The relevant PSOW shall contain Prices for each country receiving Deliverables and
Services under this Agreement. Supplier is not entitled to payment under this Agreement for
activities also covered by a Business Partner Agreement with Buyer.

4.0 Taxes

Supplier’s invoices shall state all applicable Taxes owed by Buyer, if any, by tax jurisdiction and
with a proper breakdown between taxable and non-taxable Deliverables and Services. Supplier assumes
responsibility to timely remit all such Tax payments to the appropriate governmental authority in
each respective jurisdiction. Supplier agrees to use its best efforts to properly calculate any
applicable Taxes at the time of invoice. Supplier and Buyer agree to cooperate to minimize,
wherever possible and appropriate, any applicable Taxes, including reasonable notice and
cooperation in connection with any audit. Supplier shall also bear sole responsibility for all
taxes, assessments, or other levies on its own leased or purchased property, equipment or software.
Buyer will pay incremental Taxes (which are additional Taxes due as a result of Supplier’s failure
to properly invoice Buyer for the correct amount of Taxes) that are legally owed to Supplier.
Supplier shall submit, within a reasonable amount of time, a “Tax Only Invoice” which represents
the correct amount of Taxes owed. Supplier shall not request or expect payment for any fines,
penalties, and/or interest on such incremental Taxes. This provision shall not apply when Buyer
accrues the Tax or when a jurisdiction assesses such Tax on Buyer. If Buyer provides a direct pay
certificate, certification of an exemption from Tax or reduced rate of Tax imposed by an applicable
taxing authority, then Supplier agrees not to invoice nor pay any such Tax unless and until the
applicable taxing authority assesses such Tax, at which time Supplier shall invoice and Buyer
agrees to pay any such Tax that is legally owed.

Buyer shall withhold Taxes as required under applicable law on payments made to Supplier hereunder
and shall be required to remit to Supplier only the net proceeds thereof. Buyer agrees to remit in
a timely manner all Taxes withheld to the appropriate government authority in each respective
jurisdiction.

Supplier will reimburse Buyer from any claims by any jurisdiction relating to Taxes paid by Buyer
to Supplier; and for any penalties, fines, additions to Tax or interest thereon imposed as a result
of Supplier’s failure to timely remit the Tax payment to the appropriate governmental authority in
each respective jurisdiction. Supplier shall also reimburse Buyer for any claims made by a taxing
jurisdiction for penalties, fines, additions to Tax and the amount of interest thereon imposed with
respect to Supplier’s failure to invoice Buyer for the correct amount of Tax.

5.0 Payments and Acceptance

Terms for payment will be specified in the relevant PSOW. Payment of invoices will not be deemed
acceptance of Deliverables or Services, but rather such Deliverables or Services will be subject to
inspection, test, acceptance or rejection in accordance with the acceptance or completion criteria
as specified in the relevant PSOW. Buyer or Customer may, at its option, either reject Deliverables
or Services that do not comply with the acceptance or completion criteria for a refund, or require
Supplier, upon Buyer’s written instruction, to repair or replace such Deliverables or re-perform
such Service, without charge and in a timely manner.

Unless otherwise provided by local law without the possibility of contractual waiver or limitation,
Supplier will submit invoices, corrected invoices, or other such claims for reimbursement, to Buyer
within (1) year from the date of acceptance of Deliverables or the satisfactory completion of
Services. Exceptions must be specifically authorized by Buyer.

6.0 Electronic Commerce

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Technical Services Agreement

Base Agreement

Base
Agreement # 4908009099

Master SOW # 4908009104

To the extent permitted by local law, the parties will conduct transactions using an electronic
commerce approach under which the parties will electronically transmit and receive legally binding
purchase and sale obligations (“Documents”), including electronic credit entries transmitted by
Buyer to the Supplier account specified in the relevant PSOW and Purchase Order. The parties will
enter into a separate agreement governing the transmission of such electronic transactions and
associated responsibilities of the parties.

7.0 Warranties

7.1 Ongoing Warranties

Supplier makes the following ongoing representations and warranties:

1. it has the right to enter into this Agreement and its performance of this Agreement will comply,
at its own expense, with the terms of any contract, obligation, including any between Supplier and
its end-users; or any law, regulation or ordinance to which it is or becomes subject;

2. no claim, lien, or action exists or is threatened against Supplier that would interfere with
Buyer’s rights under this Agreement;

3. it has disclosed to Buyer in writing the existence of any third party code, including without
limitation open source code, that is included in or is provided in connection with the Deliverables
and that Supplier and the Deliverables are in compliance with all licensing agreements applicable
to such third party code;

4. Deliverables and Services do not infringe any privacy, publicity, reputation or intellectual
property right of a third party;

5. all authors have agreed not to assert their moral rights (personal rights associated with
authorship of a work under applicable law) in the Deliverables, to the extent permitted by law;

6. Deliverables are safe for use consistent with and will comply with the warranties,
specifications and requirements in this Agreement;

7. Deliverables do not contain harmful code;

8. Services will be performed using reasonable care and skill and in accordance with
the relevant PSOW;

9. it will not engage in Electronic Self-Help;

10. it is knowledgeable with, and is and will remain in full compliance with all applicable export
and import laws, regulations, orders, and policies (including, but not limited to, securing all
necessary clearance requirements, export and import licenses and exemptions from, and making all
proper filings with appropriate governmental bodies and/or disclosures relating to the release or
transfer of technology and software to non U.S. nationals in the U.S., or outside the U.S., release
or transfer of technology and software having U.S. content or derived from U.S.-origin software or
technology); it is knowledgeable with applicable supply chain security recommendations issued by
applicable governments and industry standards organizations and will make best efforts to comply
with such recommendations;

11. unless authorized by applicable government license or regulation, including but not limited to
any U.S. authorization, Supplier will not directly or indirectly export or re-export, at any time,
any technical information, technology, software, or other commodity furnished or developed under
this, or any other, agreement between the parties, or any other product that is developed or
produced from or using Buyer’s technical information, technology, software, or other commodity
provided under this Agreement to any prohibited country (including release of such technical
information, technology, software, or other commodity to nationals, wherever they may be located,
of any prohibited country) as specified in applicable export, embargo, and sanctions regulations;

12. it will not use, disclose, or transfer across borders any information that is processed for
Buyer that may identify an individual (Personal Data), except to the extent necessary to
perform under this Agreement; and

13. it will comply with all applicable data privacy laws and regulations, will implement and
maintain appropriate technical and organizational measures and other protections for the Personal
Data, (including, without limitation, not loading any Personal Data provided to Supplier on (a) any
laptop computers or (b) any portable storage media that can be removed from Supplier’s premises
unless (in the case of (b) only) (i) such data has been encrypted and (ii) such data is loaded onto
portable storage media solely for the purpose of moving such data to off-site storage). Further, it
will immediately report to Buyer any breaches of protection of Personal Data or any compromises
thereof and will cooperate fully with Buyer and its Affiliates in investigating any such breaches
or compromises, will cooperate fully with Buyer’s and its Affiliates requests for access to,
correction of, and destruction of Personal Data in Supplier’s possession, and will comply with all
instructions or other requirements provided or issued by Buyer and its Affiliates from time to time
relating to Personal Data.

14. it is familiar with all local laws and regulations pertaining to bribery, corruption and
prohibited business practices and has not and will not partake in any actions in relation to the
transactions contemplated herein in violation of such laws;

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15. it and its Affiliates has not and will not offer, promise or make or agree to make payments or
gifts (of money or anything of value) directly or indirectly to anyone for the purpose of
influencing or inducing anyone to influence decisions in favor of Buyer;

16. unless expressly disclosed to Buyer in writing prior to the execution of this Agreement, it
does not know nor has reason to believe that any of the owners, principals or senior management of
Supplier, its Affiliates, or lower tier subcontractors (1) are or were persons acting in an
official capacity for or on behalf of a government; or (2) have a familial relationship to persons
acting in an official capacity for or on behalf of a government.

17. it is duly incorporated and validly existing as a limited liability company and in good
standing under the law of the People’s Republic of China.

THE WARRANTIES IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER WARRANTIES AND CONDITIONS,
EXPRESS OR IMPLIED, INCLUDING THOSE WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.

7.2 Warranty Redemption

Subject to the Section titled Supplier Liability for Third Party Claims, if Deliverables or
Services do not comply with the warranties in this Agreement, Supplier will repair or replace
Deliverables or re-perform Services, without charge and in a timely manner if such repair or
replacement is required within one-year warranty period committed by Supplier. If Supplier fails to
do so, Buyer or Customer may repair or replace Deliverables or re-perform Services and Supplier
will reimburse Buyer for actual and reasonable expenses.

8.0 Delivery

Deliverables and Services will be delivered as specified in the relevant PSOW. If Supplier cannot
comply with a delivery commitment, Supplier will promptly notify Buyer of a revised delivery date
and Buyer may:

1. cancel without charge Deliverables or Services not yet delivered; and

2. exercise all other remedies provided at law and in this Agreement.

9.0 Intellectual Property

9.1 Works Made for Hire

All Developed Works belong exclusively to Buyer (or Customer if specified in the relevant SOW
and/or WA) and are works made for hire. If any Developed Works are not considered works made for
hire owned by operation of law, Supplier assigns the ownership of copyrights in such works to Buyer
or Customer.

9.2 Preexisting Materials

Supplier will not include any Preexisting Materials in any Deliverable unless they are listed in
the relevant SOW and/or WA. If Supplier includes any Preexisting Materials in a Deliverable whether
or not listed in the relevant SOW and/or WA, Supplier grants or will obtain for Buyer and Customer
the following rights: a nonexclusive, worldwide, perpetual, irrevocable, paid-up, license to
prepare and have prepared derivative works of such Preexisting Materials and to use, have used,
execute, reproduce, transmit, display, perform, transfer, distribute, and sublicense such
Preexisting Materials or their derivative works, and to grant others the rights granted in this
Subsection.

9.3 Tools

Supplier will not include Tools in Deliverables unless they are listed in the relevant SOW and/or
WA. If Supplier includes any Tools in a Deliverable whether or not listed in the relevant SOW
and/or WA, Supplier grants or will obtain for Buyer and Customer the following rights: a
nonexclusive, worldwide, perpetual, irrevocable, paid-up, license to prepare and have prepared
derivative works of such Tools, and to use, have used, execute, reproduce, transmit, display and
perform such Tools or their derivative works and to grant others the rights granted in this
Subsection.

9.4 Invention Rights

Supplier will promptly provide to Buyer and Customer a complete written disclosure for each
Invention which identifies the features or concepts which Supplier believes to be new or different.
Supplier assigns all of its right, title and interest in Inventions (including any patent
applications filed on or patents issues claiming Inventions) to Buyer.

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9.5 Joint Invention Rights

Supplier assigns all of its right, title and interest in Joint Inventions (including any patent
applications filed on or patents issued claiming Joint Inventions) to Buyer.

9.6 Perfection of Copyrights

Upon request, Supplier will provide to Buyer a “Certificate of Originality” or equivalent
documentation to verify authorship of Developed Works. Supplier will confirm assignment of
copyright for Developed Works using the “Confirmation of Assignment of Copyright” form and will
assist Buyer in perfecting such copyrights.

9.7 Perfection of Invention Rights

Supplier will identify all countries in which it will seek patent protection for each Invention.
Supplier authorizes Buyer to act as its agent in obtaining patent protection for the Inventions
in countries where Supplier does not seek patent protection. Supplier will assist in the filing
of patent applications on Inventions and have required documents signed.

9.8 Trademarks

This Agreement does not grant either party the right to use the other party’s or their Affiliates
trademarks, trade names or service marks.

9.9 Patents

For the purpose of supporting the Customer as specified in the relevant SOW and/or WA, Supplier
grants to Buyer a nonexclusive, worldwide, perpetual, irrevocable, and paid-up license under any
patents and patent applications licensable by Supplier to make, have made, use, have used, import,
export, sell, and otherwise transfer the Deliverables and use the Services to the extent authorized
in this Base Agreement and any relevant Statements of Work and Work Authorizations.

10.0 Supplier Liability for Third Party Claims

10.1 General Indemnification

Supplier will defend, hold harmless and indemnify, including legal fees, Buyer and Buyer Personnel,
Buyer’s landlord (if there is one), and Customer and Customer Personnel against third party claims
that arise or are alleged to have arisen as a result of negligent or intentional acts or omissions
of Supplier or Supplier Personnel or breach by Supplier of any term of this Agreement.

10.2 Intellectual Property Indemnification

Supplier will defend, or at Buyer’s option cooperate in the defense of, hold harmless and
indemnify, including legal fees, Buyer and Buyer Personnel and Customer and Customer Personnel from
third party claims that Supplier’s Deliverables or Services infringe the intellectual property
rights of a third party. In addition, if such a claim is or is likely to be made, Supplier will, at
its own expense, exercise the first of the following remedies that is practicable:

1. obtain for Buyer and Customer the right to continue to use, sell and license the Deliverables
and Services consistent with this Agreement;

2. modify Deliverables and Services so they are non-infringing and in compliance with this
Agreement;

3. replace the Deliverables and Services, or other affected Deliverables or Services, with
non-infringing ones that comply with this Agreement; or

4. at Buyer’s request, accept the cancellation of infringing Deliverables and Services without
Buyer having any cancellation liability and the return of the infringing Deliverables at Supplier’s
expense and refund any amount paid. 

Buyer will give Supplier prompt notice of third party claims against Buyer, and cooperate in the
investigation, settlement and defense of such claims.

10.3 Exceptions to Indemnification

Supplier will have no obligation to indemnify Buyer or Buyer Personnel or Customer or Customer
Personnel for claims that Supplier’s Deliverables or Services infringe the intellectual property
rights of a third party to the extent such claims arise as a result of:

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1. Buyer’s or Customer’s combination of Deliverables or Services with other products or services
not reasonably foreseeable by Supplier and such infringement or claim would have been avoided in
the absence of such combination;

2. Supplier’s implementation of a Buyer originated design and such
infringement or claim would have been avoided in the absence of such implementation; or

3. Buyer’s or Customer’s modification of the Deliverables and such infringement or claim would
have been avoided in the absence of such modification.

11.0 Limitation of Liability between Supplier and Buyer

In no event will either party be liable to the other for any lost revenues, lost profits,
incidental, indirect, consequential special or punitive damages. This mutual Limitation of
Liability does not limit the obligations and liability of Supplier resulting from the Section 10.0
Supplier Liability for Third Party Claims.

12.0 Supplier and Supplier Personnel

Supplier is an independent contractor and this Agreement does not create an agency relationship
between Buyer and Supplier or Buyer and Supplier Personnel. Buyer assumes no liability or
responsibility for Supplier Personnel. Supplier will:

1. ensure it and Supplier Personnel are in compliance with all laws and regulations, including
but not limited to China Labor Law, China Labor Contract Law and China Labor Dispute Law and
licensing requirements;

2. be responsible for the supervision, control, compensation, withholdings, health and safety of
Supplier Personnel;

3. inform Buyer if a former employee of Buyer will be assigned work under this Agreement, such
assignment subject to Buyer approval;

4. ensure Supplier Personnel performing Services on Buyer’s or Customer’s premises comply with the
On Premises Guidelines in the Section titled On Premises Guidelines and upon request, provide
Buyer, for export evaluation purposes, the country of citizenship and permanent residence and
immigration status of those persons. Buyer retains the right to refuse to accept persons made
available by Supplier for export reasons; and

5. not discriminate against any employees, applicants for employment, or any entity engaged in its
procurement practices because of race, color, religion, sex, age, national origin, or any other
legally protected status.

13.0 On Premises Guidelines

Supplier will ensure that Supplier Personnel assigned to work on Buyer’s or Buyer’s Customer’s
premises will comply with this Section.

13.1 Access to Premises

Supplier will:

1. to the extent permitted by local law, ensure that Supplier Personnel assigned to work on Buyer’s
or Buyer’s Customer’s premises will participate in a pre employment criminal background check
covering the counties in which the person was employed or resided for the past seven years (or
longer as required by State legislation), and inform Buyer of any negative findings;

2. maintain a current and complete list of the persons’ names and social security numbers;

3. obtain for each person a valid identification badge from Buyer and ensure that it is displayed
to gain access to and while on Buyer’s or Buyer’s Customer’s premises (it is Buyer’s policy to
deactivate any such badge if not used in ninety days);

4. maintain a signed acknowledgment that each person will comply with Buyer’s Safety & Security
Guidelines;

5. ensure that each person with regular access to Buyer’s and Buyer’s Customer’s premises
complies with all parking restrictions and with vehicle registration requirements if any;

6. inform Buyer if a former employee of Buyer will be assigned work under this Agreement, such
assignment subject to Buyer approval;

7. at Buyer’s request, remove a person from Buyer’s or Buyer’s Customer’s premises and not reassign
such person to work on Buyer’s or Buyer’s Customer’s premises (Buyer is not required to provide a
reason for such request); and

8. notify Buyer immediately upon completion or termination of any assignment and return Buyer’s
identification badge. Upon Buyer’s request, Supplier will provide documentation to verify
compliance with this Subsection.

13.2 General Business Activity Restrictions

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Supplier will ensure that Supplier Personnel assigned to work on Buyer’s or Buyer’s Customer’s
premises:

1. will not conduct any non-Buyer related business activities (such as interviews, hirings,
dismissals or personal solicitations) on Buyer’s or Buyer’s Customer’s premises;

2. will not conduct Supplier’s Personnel training on Buyer’s or Buyer’s Customer’s premises,
except for on-the-job training;

3. will not attempt to participate in Buyer or Customer benefit plans or activities;

4. will not send or receive non-Buyer related mail through Buyer’s or Customer’s mail systems; and

5. will not sell, advertise or market any products or distribute printed, written or graphic
materials on Buyer’s or Buyer’s Customer’s premises without Buyer’s written permission.

13.3 Buyer’s Safety and Security Guidelines

Supplier will ensure that Supplier Personnel assigned to work on Buyer’s or Buyer’s Customer’s
premises:

1. do not bring weapons of any kind onto Buyer’s or Buyer’s Customer’s premises;

2. do not manufacture, sell, distribute, possess, use or be under the influence of controlled
substances (for nonmedical reasons) or alcoholic beverages while on Buyer’s or Buyer’s
Customer’s premises;

3. do not have in their possession hazardous materials of any kind on Buyer’s or Buyer’s
Customer’s premises without Buyer’s authorization;

4. acknowledge that all persons, property, and vehicles entering or leaving Buyer’s or Buyer’s
Customer’s premises are subject to search; and

5. remain in authorized areas only (limited to the work locations, cafeterias, rest rooms and, in
the event of a medical emergency, Buyer’s or Buyer’s Customer’s medical facilities). Supplier will
promptly notify Buyer of any accident or security incidents involving loss of or misuse or damage
to Buyer’s intellectual or physical assets; physical altercations; assaults; or harassment and
provide Buyer with a copy of any accident or incident report involving the above. Supplier must
coordinate with Buyer or Customer access to Buyer’s or Buyer’s Customer’s premises during
non-regular working hours.

13.4 Asset Control

In the event Supplier Personnel has access to information, information assets, supplies or other
property, including property owned by third parties but provided to Supplier Personnel by Buyer
(“Buyer Assets”), Supplier Personnel:

1. will not remove Buyer Assets from Buyer’s or Buyer’s Customer’s premises without Buyer’s
authorization;

2. will use Buyer Assets only for purposes of this Agreement and reimburse Buyer for any
unauthorized use;

3. will only connect with, interact with or use programs, tools or routines that Buyer agrees are
needed to provide Services;

4. will not share or disclose user identifiers, passwords, cipher keys or computer dial port
telephone numbers; and

5. in the event the Buyer Assets are confidential, will not copy, disclose or leave such assets
unsecured or unattended. Buyer may periodically audit Supplier’s data residing on Buyer Assets.

13.5 Supervision of Supplier’s Personnel

Suppliers will provide consistent and effective supervision of its Personnel provided under this
Agreement, at no additional cost to Buyer. Consistent and effective supervision shall include
regular interaction and communication with Supplier’s Personnel either in person or through other
effective means. Supplier’s supervisor shall be responsible for exercising full supervisory
authority over all day-to-day employment relationship decisions relating to Supplier’s Personnel,
including those decisions relating to: wages, hours, terms and conditions of employment, hiring,
discipline, performance evaluations, termination, counseling and scheduling. Supplier’s supervisors
responsible for each work location will be responsible to know that work location’s planned holiday
(and other closing) schedules and the impacts all such schedules have on Supplier’s Personnel.
Supplier will conduct orientation sessions with its Personnel before placement on an assignment
with Buyer, during which orientation such Personnel will be told who their supervisor is and how
that supervisor can be contacted. Supplier will, from time to time, ensure that all of its
Personnel working under this Agreement continue to be aware of this information. Supplier shall
also be responsible for training its Personnel that any employment related issues should be brought
forward in the first instance to Supplier and not Buyer. Where such issues relate to actions which
are alleged to have been taken by Buyer or Buyer’s Personnel, Supplier will notify Buyer
immediately in order that appropriate investigative action can be taken. Notwithstanding any other
language or agreement to the contrary, Buyer will not, and

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Supplier agrees that Buyer has no
responsibility to approve any Supplier Personnel’s time sheets. If Buyer should review, sign and/or
submit Supplier Personnel’s timesheets, whether manually or electronically, as part of Buyer’s
billing verification
processes, the parties acknowledge and agree that such review, signature and/or submittal shall in
no way constitute concurrence or approval of such timesheets, nor create any other commitment or
obligation on the part of Buyer to Supplier or Supplier Personnel.

14.0 Insurance

Supplier will maintain at its expense:

1. commercial general or public liability insurance with a minimum limit per occurrence or accident
of 1,000,000 USD (or local currency equivalent);

2. workers’ compensation or employer’s liability insurance as required by local law, such policies
waiving any subrogation rights against Buyer; and

3. automobile liability insurance as required by local statute but not less than 1,000,000 USD (or
local currency equivalent) if a vehicle will be used in the performance of this Agreement.

Insurance required under clauses (1) and (3) will name Buyer as an additional insured with respect
to Buyer’s insurable interest, will be primary or noncontributory regarding insured damages or
expenses. Upon Buyer’s request, Supplier will provide to Buyer certificate(s) of insurance to
verify compliance with the terms and conditions above.

15.0 Term and Termination

15.1 Term

1. This Agreement is effective as of the Effective Date and shall remain in effect for three (3)
years from the Effective Date (the “Initial Term”). After the Initial Term, Buyer has the right,
but not the obligation, to extend and renew this Base Agreement and the MSOW for one or more
successive Renewal Terms by providing sixty (60) days notice to Supplier prior to the end of the
applicable term. Such renewal will be at substantially the same terms and conditions of this
Agreement and the MSOW, including the applicable pricing and Service Levels as defined in the MSOW.

15.2
Termination of this Agreement

1. Buyer may terminate this Agreement if Supplier commits a material breach of its obligations
under this Base Agreement, MSOW and PSOW, provided that the breach is irremediable, or if it was
remediable and Supplier failed to remedy it within thirty (30) days of receiving written notice of
the breach. In the event that Buyer exercises its right of termination pursuant to this Section and
Supplier does not agree with Buyer upon whether an act or a series of acts constitute Buyer’s
material breach, Supplier and Buyer can, if agreed, refer to dispute escalation and resolution
processes as set forth in the Section 4.4 under the MSOW and the Section 16.4 of this Agreement.
For the avoidance of doubt, the Termination shall become effective on the date specified in the
written letter from Buyer unless both Buyer and Supplier agree otherwise during or after the
dispute escalation and resolution processes as mentioned above. Supplier may terminate this
Agreement prior to the end of the initial Term or applicable Renewal Term if and only if Buyer is
more than ninety (90) days overdue in paying an undisputed and material portion of the invoices
hereunder and Supplier has given Buyer written notice that such amount is so overdue and Buyer has
failed to pay within thirty (30) days of receipt of such written notice.

2. Either party may terminate this Agreement on thirty (30) days or more advance written notice if:
(i) the other party ceases or threatens to cease to carry on its business; (ii) the other party is
unable to pay its debts (within the meaning of any insolvency law applicable to a party); (iii) an
order, ruling or directive is entered, or a resolution passed, for the liquidation, bankruptcy,
reorganization, administration, winding-up or dissolution of the other party (other than for the
purposes of a solvent amalgamation or reconstruction); (iv) an administrative or other receiver,
manager, liquidator, trustee or similar officer is appointed over all or substantially all of the
assets of the other party; (v) the other party makes an assignment for the benefit of creditors, or
enters into or proposes any similar arrangement; or (vi) the other party is ordered to
discontinuance its performance under this Agreement by a governing court or regulatory body.

3. Buyer has the discretionary right to decide, based on effect and impact of a Change of Control
event as defined hereunder, whether to exercise its right to terminate this Agreement if there is a
Change of Control of Supplier. Change of Control in this Agreement shall mean a transaction or a
series of related transactions as a result of which 50% or more of the ownership of the outstanding
common stock or other equity interests or assets of Supplier is acquired or controlled by a third
party,

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whether by reason of stock acquisition, asset acquisition, merger, consolidation, reorganization,
voting agreement or otherwise.

4. This Agreement will terminate automatically upon the exercise of the Call Option as described in
Section 15.6.

5. Notwithstanding any provision to the contrary, in the event this Agreement is terminated, the
following provisions shall survive, and remain in full force and effect: Section 4.0 (“Taxes”),
Section 7.0 (“Warranties”), Section 9.0 (“Intellectual Property”), Section 10.0 (“Supplier
Liability for Third Party Claims”), Section 11.0 (“Limitation of Liability between Supplier and
Buyer”), Section 15.4 (“Transition Assistance upon Termination”), Section 15.6 (“Buyer’s Call
Option”), Section 16.4 (“Choice of Law and Forum; Waiver of Jury Trial; Limitation of Action”),
Section 16.7 (“Exchange of Information”),
Section 16.11 (“Prior Communications and Order of
Precedence”), and Section 16.12 (“Record Keeping and Audit Rights”).

6. Buyer may terminate this Agreement immediately by written notice to Supplier upon the occurrence
of any of the following events: (i) Supplier fails to meet the same Service Level for three (3)
consecutive months; (ii) Supplier fails to achieve fifty percent (50%) or better of all Service
Levels combined, calculated as described in MSOW, during any consecutive three (3) months period;
or (iii) Supplier or one of its Affiliates breach the Non-Compete Undertakings under Section
15.6.14; or (iv) Supplier fails to maintain the Delivery Company employee requirements and as
provided in Section 15.5.4.

15.3
Termination of a PSOW and/or a Purchase Order

Termination of a PSOW and/or a Purchase Order is defined in Section 8.3 of the MSOW.

15.4
Transition Assistance upon Termination

1. At the termination of each PSOW and upon the expiration or earlier termination of this
Agreement, in accordance with the terms and conditions thereof, Supplier shall reasonably cooperate
with Buyer to orderly, timely and efficiently transfer the Services to Buyer, Buyer’s Customer or
the Customer’s replacement service provider, as applicable. Buyer shall have the option to continue
purchasing Services from Supplier, for up to 12 months following termination, at the then current
pricing, terms and conditions of this Agreement, including applicable Service Levels.
Notwithstanding the foregoing, if this Agreement is terminated by Supplier due to Buyer’s failure
to timely pay fees for Services rendered, Buyer will first provide financial security and/or
guarantees of performance that are reasonable and satisfactory to Supplier before Supplier
continues to provide such Services.

2. Immediately after the termination, Supplier shall return to Buyer, or destroy all data,
information and records pertaining to Buyer, Customers and Customers in accordance with the manner
as Buyer may require in written instructions for the disposition of such items provided at the time
of termination. Such disposition shall be certified to Buyer, in writing, by an officer of
Supplier.

15.5
Supplier’s Obligation to Establish and Maintain a Delivery Company

1. Supplier shall duly incorporate by no later than August 31, 2008 (or within 6 months of this
Agreement being signed, whichever date is later) and maintain during the Initial Term of this
Agreement and any Renewal Terms, at its own expense, a wholly owned subsidiary of Supplier in the
form of a limited liability company under the Company Law of China
(the “Delivery Company”) in Shanghai and a Delivery Company branch office in Beijing. Supplier’s
failure to meet this requirement will result in Buyer having the right to withhold payment from
Supplier for the Services without penalty or liability during the period of such failure. Any
continued failure for more than thirty (30) days shall be a material breach of this Agreement.
During the period prior to the establishment of the wholly owned subsidiary and its branches, if a
material breach causes the supplier to terminate this Agreement, the Supplier grants Buyer the
“right to hire” any and all personnel allocated to the intended Delivery Company for purposes of
providing continuous and uninterrupted services to Buyer’s clients. During the Initial Term of this
Agreement and any Renewal Terms, Buyer may request Supplier and Delivery Company to duly establish
other branch offices in other locations in China (at the expense of Supplier and Delivery Company)
to satisfy Buyer’s business needs.

2. Promptly after the formation of the Delivery Company and subject to Section 15.5 (10) below,
Supplier shall cause the Delivery Company to become a party hereto by entering into to a
Participation Agreement in conformity with the terms and conditions set forth in the form of PA.

3. Promptly after the formation of the Delivery Company, Supplier shall cause the Delivery
Company to enter into and maintain employment relationships with those employees who have been
jointly selected and designated by Buyer and

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Supplier for the purpose of delivering the
Services contemplated by this Agreement on a dedicated basis. During the Term of this Agreement,
any further increase in headcount for the purpose of delivering the Services contemplated by this
Agreement will be hired by the Delivery Company or its branches directly, and Supplier must notify
Buyer of such increase at least three days in advance with notice in writing and such increase
shall be subject to Buyer’s written consent.

4. Supplier will ensure that (i) those employees that have been selected, designated, and assigned
by Supplier for the purpose of delivering the Services at the Delivery Company as contemplated by
this Agreement will comply with the Guidelines of Buyer’s premises, and (ii) at all times no less
than 90% of such employees shall remain employed and in good standing which can include but not
limited to an employee’s compliance with Supplier employment policies, executing a current employee
contract, and maintaining acceptable employee performance ratings on work performed and documented
on employee performance evaluations.

5. The Delivery Company shall be formed solely and exclusively for the purpose of delivering the
Services to Buyer as contemplated by this Agreement. At all times during this Agreement, Supplier
shall ensure and cause the Delivery Company and all of its employees to, and it shall, remain
solely dedicated to providing Services to Buyer and its Affiliates in accordance with the terms and
conditions of the Agreement, as may be modified or amended from time to time. Supplier shall not
cause the Delivery Company and any of its employee to, and it shall not, provide any services to
any person or entity, other than Buyer and Buyer’s Customers and as otherwise authorized by Buyer
in writing from time to time.

6. Promptly after the formation of the Delivery Company, Supplier shall cause the Delivery Company
to have and maintain all the assets, both tangible and intangible, reasonably necessary to operate
the business and provide the Services contemplated by this Agreement.

7. Except as expressly set forth with the prior written consent of Buyer, neither Supplier nor the
Delivery Company may, directly or indirectly, take any action which could negatively impact the
value of the Delivery Company in the event of a transfer to Buyer, including, but not limited to,
the following actions: (i) terminate or transfer any employees; (ii) amend the Articles of
Association or other organizational documents of the Company; (iii) enter into, terminate or amend
any contract in a manner restricting the Company’s ability to conduct its business in the manner
required to provide the Services; (iv) sell, lease, license, transfer, encumber, restrict or
dispose of any of its properties, assets or rights, other than those made in the ordinary course of
business; (v) enter into any collective bargaining agreement or labor union contract, except as
required by applicable law; (vi) adopt any plan or arrangement to provide employee compensation or
benefits or amend any existing employee benefit plan or arrangement, (vii) enter into, terminate or
amend any employment or consulting contract, or increase compensation or benefits, or pay or agree
to pay any severance or special bonus; (viii) make or change any material election in respect of
taxes, or adopt or change any material accounting method in respect
of taxes; (ix) issue any
additional shares or other equity interests, including rights or options therein, or modify its
capital structure; or (x) authorize or agree to take any of the actions described above.

8. At all times following the initial incorporation of the Delivery Company, Supplier shall cause
the Delivery Company to, and it shall: (i) be duly organized, validly existing and in good standing
under the laws of the People’s Republic of China; (ii) have all requisite power and authority to
own, lease or operate all of its properties and assets and to carry on its business; and (iii) be
duly licensed or qualified to do business and provide Services in the People’s Republic of China;
(iv) comply with and prepare its financial statements under general accepted accounting principles
applicable in China to the Delivery Company.

9. At all times following the initial incorporation of the Delivery Company, Supplier shall cause
the Delivery Company to, and it shall: i) establish and maintain a minimum registration capital of
RMB 2 million; ii) maintain sufficient working capital for the Delivery Company to meet its
operational obligations including employee compensation, employee benefits, staff training, taxes,
leases, and Delivery Company infrastructure expenses; iii) provide quarterly financial and
operational statements of the Delivery Company to the Buyer.

10. Supplier agrees that Buyer and its Affiliates will directly contract with Supplier
(including but not limited to PA and PSOW) until the Delivery Company has been duly incorporated, validly existing and in good
standing under the laws of China, and a performance guarantee, in the attached form, has been provided by Supplier to
Buyer and its Affiliates.

15.6 Buyer’s Call Option

1. Subject to applicable law, the Buyer or its Affiliates shall have the right, but not the
obligation (the “Call Option”), at any time after twenty-four (24) months from the execution of
this Agreement but no less than sixty (60) days prior to expiration of the Initial Term of this
Agreement, serves a written notice to require Supplier to sell to the Buyer or its Affiliates 100%
share of the Delivery Company (the “Call Shares”) as is set forth in a written notice (a “Call
Notice”) delivered to Supplier. For the avoidance of doubt, although Call Notice can be served and
delivered after twenty-four (24) months from the

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execution of this Agreement, the Closing of the purchase and sale of the Call Shares will not
occur earlier than thirty-six (36) months from the execution of this Agreement unless both Buyer
and Supplier agree otherwise.

2.1. Upon receipt of the Call Notice, Supplier shall promptly enter into a Share Transfer Agreement
in a form provided by Buyer to sell the Call Shares to Buyer or its Affiliates in accordance with
the provisions of this Agreement. Supplier shall sell, transfer and deliver to Buyer, and Buyer
shall purchase and accept from Supplier, all right, title and interest in and to the Delivery
Company at the net book value at time of Transfer, except for those assets or contracts that are
expressly excluded by Buyer in the Share Transfer Agreement (“Excluded Assets”). If Buyer and
Supplier specifically identifies and agrees on Excluded Assets, Supplier shall cause the Delivery
Company to first remove those Excluded Assets from its books before the Share Transfer Agreement
can be consummated. These Excluded Assets must be removed within 30 days upon receipt of such
request, or the Buyer can exclude the cost of those assets in the calculation of the Call Option
payment if the Supplier fails to remove within 30 days.

2.2. The purchase price for the Call Shares (the “Call Option Exercise Price”) shall be
determined in accordance with following formula: the net book value of all Delivery Company
assets, less the net book value of all Excluded Assets.

2.3. Supplier will prepare, on a quarterly basis, financial statements of the Delivery Company that
will set forth the Call Option Exercise Price effective as of the date of such Statement. The
financial statements will be reviewed by the Buyer and Supplier to ensure that the Call Option
Exercise Price is accurate and appropriately reflects the Services delivered during the applicable
quarter, account for all Services rendered to date and include all of the operational assets and
capital investments placed in the Delivery Company.

3. Upon receipt of a Call Notice, Supplier shall be obliged to promptly provide Buyer with the
accounting records and duly audited and consolidated financial statements of the Delivery Company
according to US GAAP. The period of such accounting records includes, but is not limited to,
Delivery Company’s fiscal year in full or in partial that has not yet been audited at the time of
Transfer execution.

4. If Buyer and Supplier can not agree on the Call Option Exercise Price based on the formula set
forth above within sixty (60) days, both parties shall forthwith engage an international accounting
firm selected by Supplier and Buyer with recognized standing to prepare an appraisal report on the
price to be paid for the shares. If the parties can not agree on the accounting firm, Buyer shall
have the right to select any of the firms listed in Schedule A attached hereto. Both Buyer and
Supplier agree to cause the selected international accounting firm to follow the pricing
methodology that has been agreed by Buyer and Supplier in this Agreement under Section 17.0. The
cost of such appraisal report shall be shared equally by Buyer and Seller. Both Buyer and Supplier
agree that the appraisal price provided by such international accounting firm in accordance with
this Agreement (the methodology under the Section 17.0) shall be final and binding upon both Buyer
and Supplier.

5. Supplier further agrees that during the Agreement, it will vote all of its Shares in the
Delivery Company against any merger, consolidation, business combination, sales of assets or
equity interests, reorganization, separation, spin-off, dissolution, liquidation or winding up
of the Delivery Company that could adversely effect the Call Option.

6. Notwithstanding anything herein to the contrary, immediately following termination of this
Agreement by Buyer pursuant to the terms of this Agreement, including Section 15.2, the Call
Option will become immediately exercisable to Buyer.

7. Supplier shall deliver the Call Shares free and clear of any liens or other encumbrances, and
the parties shall execute all such documents, including the Share Transfer Agreement, as are
necessary or reasonably required by Buyer for the transfer of the relevant Call Shares, and
Supplier will cooperate with Buyer in order to procure any necessary board authorizations of the
Delivery Company and completion of any applicable corporate formalities of the Delivery Company, as
soon as reasonably practicable (and in any event no later than sixty (60) Business Days) after the
date of delivery of the relevant Call Notice. The parties shall cooperate with each other in good
faith in order to apply for or effect or obtain (as the case may be) all approvals of, and
registrations or its updates and filings with, the relevant government authorities in the PRC that
are necessary or reasonably required for the transfer of the Call Shares, as soon as reasonably
practicable after the application has been submitted.

8. The Closing of the purchase and sale of the Call Shares (“Closing”) shall be completed at the
offices of Buyer, or such other place as Buyer and Supplier may agree, on the date which is no
later than two (2) Business Days after the last approval, registration or filing referred to in the
Section 15.6.7 is obtained or effected (as the case may be).

9. After delivery of a Call Notice and prior to Closing, Supplier shall cause the Delivery Company
to, and it shall, carry on its business in the ordinary course consistent with past practice in
all material respects and in compliance with the Section 15.5.4 above, the Base Agreement and MSOW
and any outstanding PSOWs and Purchase Orders.

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10. As a condition to the Closing of the Share Transfer Agreement, Supplier shall, in accordance
with the applicable China Law, have employed and in good standing no less than 90% of the then
current employees employed by the Delivery Company at the time that Buyer serves the Call Notice to
Supplier and as of the Closing date, and 95% of the currently identified Key Personnel (as set
forth in a separate attachment hereto), and no such employee shall have expressed an intention to
resign or terminate the employment relationship in any other manner. No such employee may be
retained or hired by Supplier or its Affiliates following the exercise of the Call Option. If
Supplier fails to maintain such applicable employee retention rate, then Buyer has the right to
pursue any of the following options: (i) terminate the Call Option without penalty; (ii) exercise
the Call Option, adjusting the Transfer Fee proportionally; or (iii) exercise the Call Option with
a holdback of proportional amount of the Transfer Fee, while requiring Supplier to promptly hire or
transfer the necessary number of equivalent resources so that Supplier is in compliance with the
employee retention rate.

11. Buyer and Supplier will agree as part of the terms of the Share Transfer Agreement, that
Supplier will not solicit, directly or indirectly, nor hire any personnel who where employees of
the Delivery Company at any time during the Term of this Agreement and for a period of eighteen
(18) months following the Closing of the Share Transfer Agreement.

12. At Closing, Supplier shall represent and warrant that the rights, licenses and assets,
including all intellectual property either owned by or licensed to the Delivery Company, which are to be transferred as a result of the
Share Transfer Agreement constitute all of the rights, licenses and assets, including intellectual property, necessary for
Buyer to operate the Delivery Company and provide the Services to its customers as then currently conducted by Supplier prior to
the delivery of the Call Notice.

13. Upon the terms and subject to the conditions of the Share Transfer Agreement, as of the
Closing, Supplier hereby sells, transfers, conveys, assigns and delivers to the Buyer, and Buyer or
its Affiliates shall purchase and accept from Supplier, all right, title and interest of Supplier
in and to the Delivery Company.

14. Non-Compete Undertakings: Supplier agrees that during the term of this Agreement and for a
period of eighteen (18) months following the Closing (such period shall be referred to hereinafter
as the “Non-competition Period”), Supplier shall not disrupt or attempt to disrupt any past,
present or prospective Customer relationship of Buyer or its Affiliates by competing with Buyer or
its Affiliates in the field of SAP consulting services, including but not limited to any related
application development, application maintenance, application implementation, application
enhancement, application testing and production support services (the “Non-Compete Scope”) for any
existing or future business opportunity from Buyer’s existing Customers that is either continual or
relating to any Services that are provided by Supplier or the Delivery Company under this Agreement
prior to the Closing. However, this Non-Compete Undertakings does not restrict or prevent Supplier
from competing with Buyer or its Affiliates for any existing customers of Supplier within the
Non-Competition Period on the Non-Compete Scope provided that i) such competition can only exist
prior to Supplier’s agreement to sign a PSOW with Buyer for the same customer on the same project;
and ii) the burden of proof of such existing customer of Supplier shall be on Supplier.

15. If, at any time during the one (1) year period following the Closing, Buyer elects to divest a
controlling interest in the Delivery Company to any supplier competitor listed on Schedule B hereto
(“Supplier Competitor”), Supplier shall have the option to acquire such controlling interest on the
same terms and conditions, including price, offered by the Supplier Competitor (“First Refusal
Option”), provided, however, that (i) at the time of divestiture, the Delivery Company’s business,
including but not limited to its go-to-market model, business volumes, contracts and other tangible
and intangible assets, when taken as a whole, remains substantially the same in all material
respects as the business as it existed on the Closing date; and (ii) the First Refusal Option will
automatically expire if it is not exercised by Supplier within ten (10) days following Supplier’s
receipt of written notice from Buyer, which includes the terms and conditions of the Supplier
Competitor’s offer (including the terms and conditions thereof in reasonable detail). Supplier’s
First Refusal Option does not apply if i) Buyer chooses to sell part of or all equity interest in
or assets of the Delivery Company to any of its Affiliate(s) within IBM for merger, consolidation,
business combination, reorganization, separation, spin-off, dissolution, liquidation or winding up
of the Delivery Company and ii) the Delivery Company has been dissolved or merged with or merged
into any internal department or any other legal entity within IBM group or the business of the
Delivery Company has been substantially changed since the Closing, such as the business of the
Delivery Company has been integrated into Buyer’s internal business operation function or Buyer has
transferred new business into the Delivery Company and such business does not exist at Closing.

16. The Supplier acknowledges and agrees that Buyer’s remedies at law for breach of any of the
provisions of this Section 15.6 would be inadequate and, in recognition of this fact, the Supplier
agrees that, in the event of such breach, in addition to any remedies at law it may have, Buyer
shall be entitled to obtain specific performance, a temporary restraining order, a temporary or
permanent injunction or any other remedy that may be available. The Supplier further acknowledges
that

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should the Supplier violate any of the provisions of this Section, it will be difficult to determine the amount of damages resulting to
Buyer or its Affiliates and that in addition to any other remedies Buyer may have, Buyer shall be
entitled to temporary and permanent injunctive relief and attorneys’ fees.

16.0 General

16.1 Amendments

This Agreement may only be amended by a writing specifically referencing this Agreement which
has been signed by authorized representatives of the parties.

16.2 Assignment

Neither party will assign their rights or delegate or subcontract their duties under this Agreement
to third parties or Affiliates without the prior written consent of the other party, such consent
not to be withheld unreasonably, except that either party may assign this Agreement in conjunction
with the sale of a substantial part of its business using this Agreement or any intellectual
property assigned or licensed under this Agreement. Any unauthorized assignment of this Agreement
is void.

16.3 Subcontracting

Supplier will not subcontract any of its work under this Agreement to any third party.
Additionally, Supplier will not subcontract any of its work under this Agreement to any
Affiliate, without Buyer’s written consent.

16.4 Choice of Law and Forum; Waiver of Jury Trial; Limitation of Action

This Agreement and the performance of transactions under this Agreement will be governed by the
laws of the People’s Republic of China. Should any dispute arise between the Parties, the Parties
will attempt to resolve the dispute in good faith by negotiations. In case no settlement can be
reached, the disputes will be submitted to China international Economic and Trade Arbitration
Commission in Beijing for arbitration according to the then effective rules of the said Arbitration
Commission. The arbitration shall be conducted in Chinese. The arbitration award will be final and
binding on both parties. The arbitration fee will be borne by the losing party. During the course
of arbitration, this Agreement shall continue to be performed except for the part which the Parties
are disputing and which is undergoing arbitration.

16.5 Communications

All communications between the parties regarding this Agreement will be conducted through the
parties’ representatives as specified in the relevant PSOW. All notices required in writing under
this Agreement will be made to the appropriate contact(s) listed in the relevant SOW and will be
effective upon actual receipt. Notices may be transmitted electronically, by registered or
certified mail, or courier. All notices, with the exception of legal notices, may also be provided
by facsimile.

16.6 Counterparts

This Agreement may be signed in one or more counterparts, each of which will be deemed to be an
original and all of which when taken together will constitute the same Agreement. Any copy of this
Agreement made by reliable means (for example, photocopy or facsimile) is considered an original.

16.7 Exchange of Information

1. The parties agree that the terms and conditions of the Base Agreement, MSOW, PA and PSOW as well
as all information regarding or relating to the financial and business relationship contemplated by
and between Supplier and Buyer or its Affiliates are confidential information of the parties, and
shall be governed by the terms of PAECI # 4906C21117. All other information which is not covered by
above scope and not expressly marked as “Confidential” is disclosed and exchanged as
non-confidential information.

2. The parties will not publicize the terms of this Agreement, or the relationship, in any
advertising, marketing or promotional materials without prior written consent of the other party
except as may be required by law, provided the party publicizing gives the other party reasonable
prior notice to allow the other party a reasonable opportunity to obtain a protective order.
Supplier will use information regarding this Agreement only in the performance of this Agreement.

3. For any business personal information relating to Supplier Personnel that Supplier provides
to Buyer, Supplier has obtained the agreement of the Supplier Personnel to release the
information to Buyer and to allow Buyer to use such

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information in connection with this Agreement.
Buyer will not use such information for anything other than this Agreement.

4. The Parties are allowed to disclose the Confidential Information if such disclose is required
under applicable mandatory law or by a governmental order, decree, regulation or rule, or by any
competent court or authority, provided that the disclosing party shall inform the other party of
such requirement immediately prior to such disclosure.

16.8 Freedom of Action

This Agreement is nonexclusive and except for the non-compete and non-solicitation provisions in
the Section 15.6, either party may design, develop, manufacture, acquire or market competitive
products or services. Buyer will independently establish prices for resale of Deliverables or
Services and is not obligated to announce or market any Deliverables or Services and does not
guarantee the success of its marketing efforts, if any.

16.9 Force Majeure

Neither party will be in default or liable for any delay or failure to comply with this Agreement
due to any act beyond the control of the affected party, excluding labor disputes, provided such
party immediately notifies the other.

16.10 Obligations of Affiliates

Affiliates will acknowledge acceptance of the terms of this Agreement through the signing of a PA
before conducting any transaction under this Agreement.

16.11 Prior Communications and Order of Precedence

This Agreement replaces any prior oral or written agreements or other communication between the
parties with respect to the subject matter of this Agreement, excluding any confidential disclosure
agreements. In the event of any conflict in these documents, the order of precedence will be:

1. the quantity, payment and delivery terms of the relevant Purchase Order;

2. the relevant PSOW;

3. the Participation Agreement;

4. the MSOW;

5. this Base Agreement; and

6. the remaining terms of the relevant Purchase Order.

16.12 Record Keeping and Audit Rights

1. Supplier and Delivery Company will maintain (and provide to Buyer upon request) relevant
business and accounting records to support invoices under this Agreement and proof of required permits and professional
licenses, for a period of time as required by local law, but not for less than three (3) years following completion or termination
of the relevant PSOW. All accounting records will be maintained in accordance with generally accepted accounting
principles.

2. Supplier shall provide Buyer with duly audited and consolidated annual financial statements of
Delivery Company upon request by Buyer. Buyer will review and reaffirm the audited and consolidated
annual financial statements of the Delivery Company provided by its auditor.

3. Buyer will withhold the right to execute an independent financial and operational, including
utilization, record review of Supplier’s and/or Delivery Company entity’s on a quarterly basis as
set forth in the Section 15.5 prior to a transfer to Buyer at Buyer’s discretion.

16.13 Severability

If any term in this Agreement is found by competent judicial authority to be unenforceable in any
respect, the validity of the remainder of this Agreement will be unaffected, provided that such
unenforceability does not materially affect the parties’ rights under this Agreement.

16.14 Survival

The provisions set forth in the following Sections and Subsections of this Base Agreement will
survive after termination or expiration of this Agreement and will remain in effect until
fulfilled: “Taxes”, “Ongoing Warranties”, “Intellectual Property”, “Supplier Liability for Third
Party Claims”, “Limitation of Liability between Supplier and Buyer”, “Record

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Keeping and Audit Rights”, “Choice of Law and Forum; Waiver of Jury Trial; Limitation of Action”,
“Exchange of Information”, and “Prior Communications and Order of Precedence”.

16.15 Waiver

An effective waiver under this Agreement must be in writing signed by the party waiving its right.
A waiver by either party of any instance of the other party’s noncompliance with any obligation or
responsibility under this Agreement will not be deemed a waiver of subsequent instances.

16.16 Ethical Dealings

Supplier will be familiar and will strictly comply with all laws and regulations on bribery,
corruption, and prohibited business practices. Supplier and its Affiliates have not and will not
offer, promise or make or agree to make any payments or gifts (of money or anything of value)
directly or indirectly to anyone for the purpose of influencing, or inducing anyone to influence
decisions in favor of, Buyer or any of its Affiliates.

17.0 Pricing Methodology and Transfer Call Option Calculation

	1.	 	Supplier and Buyer agree to the following services pricing table by resource unit, banding
level for the initial contract period of 3 years.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	New Dimension Module
		 	Traditional Module (Chinese RMB/Day)	 	(Chinese RMB/Day)
	SAP ABAP 6
	 	 	1,368	 	 	 	 	 
	SAP Band 6
	 	 	1,520	 	 	 	1,900	 
	SAP ABAP 7
	 	 	1,672	 	 	 	 	 
	SAP Band 7
	 	 	2,052	 	 	 	2,432	 
	SAP Band 8
	 	 	2,584	 	 	 	2,964	 
	SAP Band 9
	 	 	3,192	 	 	 	3,572	 
	SAP Band 10
	 	 	3,952	 	 	 	3,967	 
	SAP Band 11
	 	 	4,560	 	 	 	4,477	 

Above daily rate is overtime, business and other tax inclusive with 60 days payment term.

Resource unit base annual days per year equals 249 days or 1992 hours per year.

All of the operational assets placed in the Delivery Company and recorded on the Delivery Company
accounting records and financial statements will be transferred at net book value on the Closing
Date of the Share Transfer Agreement.

Total purchase price of the Call Shares at Transfer is Net Book Value of Delivery Company assets
less Excluded Assets plus Transfer Fee. Transfer Fee is cumulative revenues the Supplier has earned
during the Operate phase (including those revenues accounted for on the Delivery Company financial
statements) up to the date of Transfer multiplied by 5%.

 The Call Option Exercise Price shall be
paid in RMB. Annual audit reports of the Delivery Company will be used to validate the Call Option
Exercise Price (net book value of delivery company assets). Audited quarterly or monthly financial
reports will be used if such annual reports are not available at the time when the Call Notice is
delivered.

Supplier will work with Buyer to validate the Transfer Call Option Price on a quarterly basis. At
any time, upon 7 days written request and notice, Supplier will provide the Transfer price to Buyer
as needed.

Buyer, Buyer Affiliates will pro actively work with Supplier to ensure the delivery center as a
whole maintains an annual average resource utilization target rate of 90% on a base of 249 days.
The parties agree to use all operational means practical to manage to the utilization target
including, but not limited to, deploying unused resources in the delivery center to work on client
projects managed and fulfilled directly by the Buyer, Buyer Affiliates and/or client work of the
Supplier outside the delivery center. Supplier will produce weekly delivery center utilization
reports. The operational committee will review headcount and delivery center utilization on a
weekly basis and determine the optimal solution to ensure resources are productive and efficiently
deployed based on the demand forecast. Should actual annual average utilization rate of the
delivery center fall below the target, Buyer and Buyer Affiliates will compensate Supplier up to
the target rate.

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	ACCEPTED AND AGREED TO:	 	ACCEPTED AND AGREED TO:
	 
	 	 	 	 	 	 	 	 	 	 
	IBM Global Services
(China) Co. Ltd.)	 	Camelot Information Systems (China) Corp. Ltd.
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	 /s/ Henry Wk Chow

	 	 	 	By:	 	 /s/ Simon Ma 	 	 
	 	 	 	 	 	 	 
	Buyer Signature	 	Date	 	Supplier Signature	 	Date
	 
	(SEAL)

	 	 	 	(SEAL)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 
	Printed Name	 	Printed Name
	Henry Wk Chow	 	Simon Ma
	Title & Organization	 	Title & Organization
	Chairman, IBM Global Services (China) Co. Ltd.	 	Chairman, Camelot Information Systems (China) Corp. Ltd
	Buyer Address:	 	Supplier Address:
	25/F Pacific Century Plaza	 	11th Fl, Zheiiang Tower
	No. 2A, Gong Ti Bei Lu, Chaoyang District,	 	26 North Ring 3 Road,
	Beijing, Zip code 100027	 	Beijing, 100029
	P.R. China	 	P.R. China
	 
	 	 	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 	 	 	 	 
	IBM Global Services (China) Co. Ltd.)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	 /s/ Anne Lee Chen
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Buyer Signature	 	Date	 	 	 	 	 	 
	 
	(SEAL)

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Printed Name
	 	 	 	 	 	 	 	 
	Anne Lee Chen	 	 	 	 	 	 	 	 
	Title & Organization	 	 	 	 	 	 
	Director, Asia Pacific Sourcing, Global Procurement,	 	 	 	 	 	 
	IBM Integrated Supply Chain	 	 	 	 	 	 	 	 
	Buyer Address:	 	 	 	 	 	 	 	 
	13/F, JinMao Tower, No.88 Century Blvd, PuDong District,	 	 	 	 	 	 
	Shanghai PRC 200121

	 	 	 	 	 	 	 	 

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Schedule A: International Accounting Firms

	 	1.	 	PricewaterhouseCoopers (PwC)
	 
	 	2.	 	KPMG
	 
	 	3.	 	Ernst & Young (EY)

Schedule B: Supplier Competitor

 (Neusoft Group Ltd.)

 (Hisoft Technology International Ltd.)

 (Chinasoft International Ltd.)

 (Vancelnfo Ltd.)

 (Beyondsoft Group)

 (Besure Technology Co.,Ltd.,)

 (Covics Business Solution Ltd.)

 (Dimeusion InfoTech Co.Ltd)

 (Hanconsulting Co Ltd)

 (HAND Enterprise Solutions Company Ltd.)

 (Zejiaconsulting Co Ltd)

Page 18 of 18

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