Initial Public Offering (IPO): Registration Statement of a Foreign Private Issuer — Form F-1 Filing Table of Contents
Document/ExhibitDescriptionPagesSize
1: F-1 Registration Statement of a Foreign Private Issuer HTML 2.91M
2: EX-3.1 Articles of Incorporation/Organization or By-Laws HTML 249K
3: EX-3.2 Articles of Incorporation/Organization or By-Laws HTML 16K
11: EX-4.10 Instrument Defining the Rights of Security Holders HTML 113K
12: EX-4.11 Instrument Defining the Rights of Security Holders HTML 113K
13: EX-4.12 Instrument Defining the Rights of Security Holders HTML 112K
14: EX-4.13 Instrument Defining the Rights of Security Holders HTML 114K
15: EX-4.14 Instrument Defining the Rights of Security Holders HTML 111K
16: EX-4.15 Instrument Defining the Rights of Security Holders HTML 111K
17: EX-4.16 Instrument Defining the Rights of Security Holders HTML 38K
18: EX-4.17 Instrument Defining the Rights of Security Holders HTML 34K
4: EX-4.2 Instrument Defining the Rights of Security Holders HTML 15K
5: EX-4.4 Instrument Defining the Rights of Security Holders HTML 230K
6: EX-4.5 Instrument Defining the Rights of Security Holders HTML 34K
7: EX-4.6 Instrument Defining the Rights of Security Holders HTML 63K
8: EX-4.7 Instrument Defining the Rights of Security Holders HTML 265K
9: EX-4.8 Instrument Defining the Rights of Security Holders HTML 50K
10: EX-4.9 Instrument Defining the Rights of Security Holders HTML 272K
19: EX-8.2 Opinion re: Tax Matters HTML 16K
20: EX-10.1 Material Contract HTML 63K
28: EX-10.10 Material Contract HTML 55K
29: EX-10.11 Material Contract HTML 33K
30: EX-10.12 Material Contract HTML 28K
31: EX-10.13 Material Contract HTML 34K
32: EX-10.14 Material Contract HTML 61K
33: EX-10.15 Material Contract HTML 52K
34: EX-10.16 Material Contract HTML 20K
35: EX-10.17 Material Contract HTML 17K
36: EX-10.18 Material Contract HTML 19K
37: EX-10.19 Material Contract HTML 16K
21: EX-10.3 Material Contract HTML 53K
22: EX-10.4 Material Contract HTML 46K
23: EX-10.5 Material Contract HTML 44K
24: EX-10.6 Material Contract HTML 12K
25: EX-10.7 Material Contract HTML 12K
26: EX-10.8 Material Contract HTML 12K
27: EX-10.9 Material Contract HTML 59K
38: EX-21.1 Subsidiaries of the Registrant HTML 13K
39: EX-23.1 Consent of Experts or Counsel HTML 13K
40: EX-23.4 Consent of Experts or Counsel HTML 14K
41: EX-23.5 Consent of Experts or Counsel HTML 15K
CONCORD MEDICAL SERVICES HOLDINGS LIMITED
2008 SHARE INCENTIVE PLAN
1.
Purpose of the Plan
The purpose of the Plan is to aid the Company and its Affiliates in recruiting and retaining
key employees, directors or consultants of outstanding ability and to motivate such employees,
directors or consultants to exert their best efforts on behalf of the Company and its Affiliates by
providing incentives through the granting of Awards. The Company expects that it will benefit from
the added interest which such key employees, directors or consultants will have in the welfare of
the Company as a result of their proprietary interest in the Company’s success.
2.
Definitions
The following capitalized terms used in the Plan have the respective meanings set forth in
this Section:
(a)
Applicable Laws: All laws, statutes, regulations, ordinances, rules or
governmental requirements that are applicable to this Plan or any Award granted
pursuant to this Plan, including but not limited to applicable laws of the People’s
Republic of China, the United States and the Cayman Islands, and the rules and
requirements of any applicable national securities exchange.
(b)
Act: The U.S. Securities Exchange Act of 1934, as amended, or any successor
thereto.
(c)
Affiliate: With respect to the Company, any entity directly or indirectly
controlling, controlled by, or under common control with, the Company or any other
entity designated by the Board in which the Company or an Affiliate has an interest.
(d)
American Depositary Receipt: A physical certificate evidencing ownership in
American Depositary Shares, issued by the Depositary and listed on an established
national or regional stock exchange or are publicly traded on any established
securities market in the United States.
(e)
American Depositary Share: An equity right representing one or more Shares of
the Company, or a fraction of a Share of the Company, held on deposit by the Custodian,
which carries the corporate and economic rights of the Shares of the Company, subject
to the terms specified on the American Depositary Receipt.
(f)
Award: An Option, Share Appreciation Right or Other Share-Based Award granted
pursuant to the Plan.
(g)
Award Agreement: The stock option or other written agreement between the
Company and the Participant that evidences and sets out the terms and conditions of an
Award.
(h)
Beneficial Owner: A “beneficial owner”, as such term is defined in Rule 13d-3
under the Act (or any successor rule thereto).
Change in Control: The occurrence of any of the following events:
(i) the sale or disposition, in one or a series of related transactions, of all or
substantially all, of the assets of the Company to any “person” or “group” (as such
terms are defined in Sections 13(d)(3) or 14(d)(2) of the Act) other than the
Permitted Holders;
(ii) any person or group, other than the Permitted Holders, is or becomes the
Beneficial Owner (except that a person shall be deemed to have “beneficial
ownership” of all shares that any such person has the right to acquire, whether such
right is exercisable immediately or only after the passage of time), directly or
indirectly, of more than 50% of the total voting power of the voting share of the
Company (or any entity which controls the Company), including by way of merger,
consolidation, tender or exchange offer or otherwise; or
(iii) during any period of two consecutive years, individuals who at the beginning
of such period constituted the Board (together with any new directors whose election
by such Board or whose nomination for election by the shareholders of the Company
was approved by a vote of a majority of the directors of the Company, then still in
office, who were either directors at the beginning of such period or whose election
or nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board, then in office.
(k)
Code: The U.S. Internal Revenue Code of 1986, as amended, or any successor
thereto.
(l)
Committee: The Compensation Committee of the Board, or in the absence of a
Compensation Committee, the Board.
(m)
Company: Concord Medical Services Holdings Limited, a company incorporated
under the laws of the Cayman Islands.
(n)
Custodian: The bank appointed to hold any ADSs on deposit upon or after a
public offering of the Shares.
(o)
Depositary: The United States bank appointed by the Company to issue any
American Depositary Receipts upon or after a public offering of the Shares.
(p)
Disability: Inability of a Participant to perform in all material respects his
or her duties and responsibilities to the Company, or any Affiliates of the Company, by
reason of a physical or mental disability or infirmity which inability is reasonably
expected to be permanent and has continued (i) for a period of not less than 90
consecutive days or (ii) such shorter period as the Committee may reasonably determine
in good faith. The Disability determination shall be in the sole discretion of the
Committee and a Participant (or his or her representative) shall furnish the
3
Committee with medical evidence documenting the Participant’s disability or
infirmity which is satisfactory to the Committee.
(q)
Effective Date: The date the Board approves the Plan, or such later date as is
designated by the Board.
(r)
Employment: The term “Employment” as used herein shall be deemed to refer to
(i) a Participant’s employment if the Participant is an employee of the Company or any
of its Affiliates, (ii) a Participant’s services as a consultant, if the Participant is
consultant to the Company or its Affiliates and (iii) a Participant’s services as an
non-employee director, if the Participant is a non-employee member of the Board.
(s)
Fair Market Value: The value of a Share, determined as follows: if on the
Grant Date or other determination date the Shares are listed on an established national
or regional stock exchange, or are publicly traded on any established securities
market, the Fair Market Value of a Share shall be the closing price of the Shares on
such exchange or in such market (if there is more than one such exchange or market the
Committee shall determine the appropriate exchange or market) on the Grant Date or such
other determination date (or if there is no such reported closing price, the Fair
Market Value shall be the mean between the highest bid and lowest asked prices or
between the high and low sale prices on such trading day) or, if no sale of Shares is
reported for such trading day, on the next preceding day on which any sale shall have
been reported. If the Shares are not listed on such an exchange, quoted on such system
or traded on such a market, Fair Market Value shall be the value of the Shares as
determined by the Committee in good faith, and shall be determined by the reasonable
application of a reasonable valuation method within the meaning of Section 409A of the
Code and the regulations promulgated thereunder.
(t)
Grant Date: The date as of which the Committee approves an Award.
(u)
ISO: An Option that is also an incentive share option granted pursuant to
Section 6(d) of the Plan.
(v)
LSAR: A limited share appreciation right granted pursuant to Section 7(d) of
the Plan.
(w)
Other Share-Based Awards: Awards granted pursuant to Section 8 of the Plan.
(x)
Option: A share option granted pursuant to Section 6 of the Plan.
(y)
Option Price: The purchase price per Share of an Option, as determined
pursuant to Section 6(a) of the Plan.
(z)
Participant: An employee, director or consultant who is selected by the
Committee to participate in the Plan. To the extent required by Applicable Laws,
Awards may be limited to employees and officers or employees and directors.
4
(aa)
Permitted Holder: Means, as of the date of determination, (i) the Company or
(ii) any employee benefit plan (or trust forming a part thereof) maintained by (A) the
Company or (B) any corporation or other Person of which a majority of its voting power
of its voting equity securities or equity interest is owned, directly or indirectly, by
the Company.
(bb)
Person: A “person”, as such term is used for purposes of Section 13(d) or
14(d) of the Act (or any successor section thereto).
(cc)
Plan: This Concord Medical Services Holdings Limited 2008 Share Incentive
Plan.
Share Appreciation Right: A share appreciation right granted pursuant to
Section 7 of the Plan.
3.
Shares Subject to the Plan
Subject to adjustment as provided in Section 9 hereof, the total number of Shares which may be
issued under the Plan is 13,218 Shares. Among the total number of Shares that may be issued under
the Plan, up to 13,218 Shares may be issued for the purpose of granting Options (all of which may
be issued as ISOs) and/or Share Appreciation Rights. The Shares may consist, in whole or in part,
of authorized and unissued Shares, treasury Shares or Shares purchased on the open market. The
issuance of Shares or the payment of cash upon the exercise of an Award or in consideration of the
cancellation or termination of an Award shall reduce the total number of Shares available under the
Plan, as applicable. Shares which are subject to Awards which terminate or lapse without the
payment of consideration may be granted again under the Plan.
4.
Administration
The Plan shall be administered by the Committee, which may delegate its duties and powers in
whole or in part to any subcommittee thereof consisting solely of at least two individuals who are
intended to qualify as “Non-Employee Directors” within the meaning of Rule 16b-3 under the Act (or
any successor rule thereto) and an “independent director” as defined, to the extent applicable, in
either Rule 4200 of the NASDAQ Stock Market Rules (or any applicable successor rule thereto) or in
NYSE Rule 303A.02 (or any applicable successor rule thereto). Awards may, in the discretion of the
Committee, be made under the Plan in assumption of, or in substitution for, outstanding awards
previously granted by the Company or its Affiliates or a company acquired by the Company or with
which the Company combines. The number of Shares underlying such substitute awards shall be
counted against the aggregate number of Shares available for Awards under the Plan. The Committee
is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations
relating to the Plan, and to make any other determinations that it deems necessary or desirable for
the administration of the Plan. The Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems
necessary or desirable. Any decision of the Committee in the interpretation and administration of
the Plan, as described herein, shall lie
5
within its sole and absolute discretion and shall be final, conclusive and binding on all
parties concerned (including, but not limited to, Participants and their beneficiaries or
successors). The Committee shall have the full power and authority to establish the terms and
conditions of any Award consistent with the provisions of the Plan and to waive any such terms and
conditions at any time (including, without limitation, accelerating or waiving any vesting
conditions). The Committee shall require payment of any amount it may determine to be necessary to
withhold for any applicable taxes as a result of the exercise, grant or vesting of an Award.
Unless the Committee specifies in the applicable Award Agreement or otherwise, the Participant may
elect to pay a portion or all of such withholding taxes by (a) delivery in Shares or (b) having
Shares withheld by the Company from any Shares that would have otherwise been received by the
Participant.
5.
Limitations
No Award may be granted under the Plan after the tenth anniversary of the Effective Date, but
Awards theretofore granted may extend beyond that date.
6.
Terms and Conditions of Options
Options granted under the Plan shall be, as determined by the Committee, non-qualified or
incentive share options for U.S. federal income tax purposes, as evidenced by the related Award
Agreements, and shall be subject to the foregoing and the following terms and conditions and to
such other terms and conditions, not inconsistent therewith, as the Committee shall determine:
(a)
Option Price. The Option Price per Share shall be determined by the
Committee, and unless specifically approved by the Board, shall not be less than 100%
of the Fair Market Value of the Shares on the Grant Date.
(b)
Exercisability. Options granted under the Plan shall be exercisable at
such time and upon such terms and conditions as may be determined by the Committee, but
in no event shall an Option be exercisable more than eight years after the Grant Date.
(c)
Exercise of Options. Except as otherwise provided in the Plan or in an
Award Agreement, an Option may be exercised for all, or from time to time any part, of
the Shares for which it is then exercisable. For purposes of Section 6 of the Plan,
the exercise date of an Option shall be the later of the date a notice of exercise is
received by the Company and, if applicable, the date payment is received by the Company
pursuant to clauses (i), (ii), (iii) or (iv) in the following sentence. The purchase
price for the Shares as to which an Option is exercised shall be paid to the Company in
full at the time of exercise at the election of the Participant (i) in cash or its
equivalent (e.g., by check), (ii) to the extent permitted by the Committee, in Shares
having a Fair Market Value equal to the aggregate Option Price for the Shares being
purchased and satisfying such other requirements as may be imposed by the Committee;
provided, that such Shares have been held by the Participant for no less than six
months (or such other period as established from time to time by the Committee in order
to avoid adverse accounting treatment applying generally
6
accepted accounting principles), (iii) partly in cash and, to the extent permitted
by the Committee, partly in such Shares or (iv) if there is a public market for the
Shares at such time, through the delivery of irrevocable instructions to a broker to
sell Shares obtained upon the exercise of the Option and to deliver promptly to the
Company an amount out of the proceeds of such Sale equal to the aggregate Option
Price for the Shares being purchased. No Participant shall have any rights to
dividends or other rights of a shareholder with respect to Shares subject to an
Option until the Participant has given written notice of exercise of the Option,
paid in full for such Shares and, if applicable, has satisfied any other conditions
imposed by the Committee pursuant to the Plan.
(d)
ISOs. The Committee may grant Options under the Plan that are intended
to be ISOs. Such ISOs shall comply with the requirements of Section 422 of the Code
(or any successor section thereto). No ISO may be granted to any Participant who at
the time of such grant, owns more than ten percent of the total combined voting power
of all classes of share of the Company or of any Affiliates, unless (i) the Option
Price for such ISO is at least 110% of the Fair Market Value of a Share on the date the
ISO is granted and (ii) the date on which such ISO terminates is a date not later than
the day preceding the fifth anniversary of the date on which the ISO is granted. Any
Participant who disposes of Shares acquired upon the exercise of an ISO either (i)
within two years after the date of grant of such ISO or (ii) within one year after the
transfer of such Shares to the Participant, shall notify the Company of such
disposition and of the amount realized upon such disposition. All Options granted
under the Plan are intended to be nonqualified share options, unless the applicable
Award Agreement expressly states that the Option is intended to be an ISO. If an
Option is intended to be an ISO, and if for any reason such Option (or portion thereof)
shall not qualify as an ISO, then, to the extent of such nonqualification, such Option
(or portion thereof) shall be regarded as a nonqualified share option granted under the
Plan; provided that such Option (or portion thereof) otherwise complies with
the Plan’s requirements. In no event shall any member of the Committee, the Company or
any of its Affiliates (or their respective employees, officers or directors) have any
liability to any Participant (or any other Person) due to the failure of an Option to
qualify for any reason as an ISO.
(e)
Attestation. Wherever in this Plan or any agreement evidencing an
Award a Participant is permitted to pay the exercise price of an Option or taxes
relating to the exercise of an Option by delivering Shares, the Participant may,
subject to procedures satisfactory to the Committee, satisfy such delivery requirement
by presenting proof of beneficial ownership of such Shares, in which case the Company
shall treat the Option as exercised without further payment and shall withhold such
number of Shares from the Shares acquired by the exercise of the Option.
7.
Terms and Conditions of Share Appreciation Rights
(a)
Grants. The Committee also may grant (i) a Share
Appreciation Right independent of an Option or (ii) a Share Appreciation Right
in connection
7
with an Option, or a portion thereof. A Share Appreciation Right granted
pursuant to clause (ii) of the preceding sentence (A) may be granted at the
time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of
Shares covered by an Option (or such lesser number of Shares as the
Committee may determine) and (C) shall be subject to the same terms and
conditions as such Option except for such additional limitations as are
contemplated by this Section 7 (or such additional limitations as may be
included in an Award Agreement).
(b)
Terms. The exercise price per Share of a Share
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the greater of (i) the Fair Market Value
of a Share on the date the Share Appreciation Right is granted or, in the case
of a Share Appreciation Right granted in conjunction with an Option, or a
portion thereof, the Option Price of the related Option and (ii) the minimum
amount permitted by Applicable Laws. Each Share Appreciation Right granted
independent of an Option shall entitle a Participant upon exercise to an amount
equal to (i) the excess of (A) the Fair Market Value on the exercise date of
one Share over (B) the exercise price per Share, times (ii) the number of
Shares covered by the Share Appreciation Right. Each Share Appreciation Right
granted in conjunction with an Option, or a portion thereof, shall entitle a
Participant to surrender to the Company the unexercised Option, or any portion
thereof, and to receive from the Company in exchange therefore an amount equal
to (i) the excess of (A) the Fair Market Value on the exercise date of one
Share over (B) the Option Price per Share, times (ii) the number of Shares
covered by the Option, or portion thereof, which is surrendered. The date a
notice of exercise is received by the Company shall be the exercise date.
Payment shall be made in Shares or in cash, or partly in Shares and partly in
cash (any such Shares valued at such Fair Market Value), all as shall be
determined by the Committee. Share Appreciation Rights may be exercised from
time to time upon actual receipt by the Company of written notice of exercise
stating the number of Shares with respect to which the Share Appreciation Right
is being exercised. No fractional Shares will be issued in payment for Share
Appreciation Rights, but instead cash will be paid for a fraction or, if the
Committee should so determine, the number of Shares will be rounded downward to
the next whole Share.
(c)
Limitations. The Committee may impose, in its
discretion, such conditions upon the exercisability or transferability of Share
Appreciation Rights as it may deem fit.
(d)
Limited Share Appreciation Rights. The Committee may
grant LSARs that are exercisable upon the occurrence of specified contingent
events. Such LSARs may provide for a different method of determining
appreciation, may specify that payment will be made only in cash and may
provide that
8
any related Awards are not exercisable while such LSARs are exercisable.
Unless the context otherwise requires, whenever the term “Share Appreciation
Right” is used in the Plan, such term shall include LSARs.
8.
Other Share-Based Awards
The Committee, in its sole discretion, may grant or sell Awards of Shares and Awards that are
valued in whole or in part by reference to, or are otherwise based on the Fair Market Value of,
Shares (collectively, “Other Share-Based Awards”). Such Other Share-Based Awards shall be in such
form, and dependent on such conditions, as the Committee shall determine, including, without
limitation, the right to receive, or vest with respect to, one or more Shares (or the equivalent
cash value of such Shares) upon the completion of a specified period of service, the occurrence of
an event and/or the attainment of performance objectives. Other Share-Based Awards may be granted
alone or in addition to any other Awards granted under the Plan. Subject to the provisions of the
Plan, the Committee shall determine to whom and when Other Share-Based Awards will be made, the
number of Shares to be awarded under (or otherwise related to) such Other Share-Based Awards;
whether such Other Share-Based Awards shall be settled in cash, Shares or a combination of cash and
Shares; and all other terms and conditions of such Awards (including, without limitation, the
vesting provisions thereof and provisions ensuring that all Shares so awarded and issued shall be
fully paid and non-assessable).
9.
Adjustments Upon Certain Events
Notwithstanding any other provisions in the Plan to the contrary, the following provisions
shall apply to all Awards granted under the Plan:
(a)
Generally. In the event of any change in the
outstanding Shares after the Effective Date by reason of any Share dividend or
split, reorganization, recapitalization, merger, consolidation, spin-off,
combination, combination or transaction or exchange of Shares or other
corporate exchange, or any distribution to shareholders of Shares other than
regular cash dividends or any transaction similar to the foregoing, the
Committee in its sole discretion and without liability to any person shall make
such substitution or adjustment, if any, as it deems to be equitable, as to (i)
the number or kind of Shares or other securities issued or reserved for
issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the
maximum number of Shares for which Options or Share Appreciation Rights may be
granted during a calendar year to any Participant, (iii) the maximum number of
Shares for which Other Share-Based Awards may be granted during a calendar year
to any Participant, (iv) the maximum amount of an Award that is valued in whole
or in part by reference to, or is otherwise based on the Fair Market Value of,
Shares that may be granted during a calendar year to any Participant, (v) the
Option Price or exercise price of any share appreciation right and/or (vi) any
other affected terms of such Awards.
(b)
Change in Control. In the event of a Change of Control
after the Effective Date, (i) if determined by the Committee in the applicable
Award
9
Agreement or otherwise, any outstanding Awards then held by Participants
which are unexercisable or otherwise unvested or subject to lapse
restrictions shall automatically be deemed exercisable or otherwise vested
or no longer subject to lapse restrictions, as the case may be, as of
immediately prior to such Change of Control and (ii) the Committee may, but
shall not be obligated to, (A) cancel such Awards for fair value (as
determined in the sole discretion of the Committee) which, in the case of
Options and Share Appreciation Rights, may equal the excess, if any, of
value of the consideration to be paid in the Change of Control transaction
to holders of the same number of Shares subject to such Options or Share
Appreciation Rights (or, if no consideration is paid in any such
transaction, the Fair Market Value of the Shares subject to such Options or
Share Appreciation Rights) over the aggregate exercise price of such Options
or Share Appreciation Rights or (B) provide for the issuance of substitute
Awards that will substantially preserve the otherwise applicable terms of
any affected Awards previously granted hereunder as determined by the
Committee in its sole discretion or (C) provide that for a period of at
least 15 days prior to the Change of Control, such Options shall be
exercisable as to all shares subject thereto and that upon the occurrence of
the Change of Control, such Options shall terminate and be of no further
force and effect.
10.
No Right to Employment or Awards
The granting of an Award under the Plan shall impose no obligation on the Company or any
Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s
or any Affiliate’s right to terminate the Employment of such Participant. No Participant or other
Person shall have any claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of
Awards and the Committee’s determinations and interpretations with respect thereto need not be the
same with respect to each Participant (whether or not such Participants are similarly situated).
11.
Successors and Assigns
The Plan shall be binding on all successors and assigns of the Company and a Participant,
including without limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or representative of the
Participant’s creditors.
12.
Nontransferability of Awards
Unless otherwise determined by the Committee, an Award shall not be transferable or assignable
by the Participant otherwise than by will or by the laws of descent and distribution. An Award
exercisable after the death of a Participant may be exercised by the legatees, personal
representatives or distributees of the Participant.
13.
Amendments or Termination
10
The Board may amend, alter or discontinue the Plan, but no amendment, alteration or
discontinuation shall be made, (a) without the approval of the shareholders of the Company, if such
action would (except as is provided in Section 9 of the Plan), increase the total number of Shares
reserved for the purposes of the Plan or change the maximum number of Shares for which Awards may
be granted to any Participant or (b) without the consent of a Participant, if such action would
diminish any of the rights of the Participant under any Award theretofore granted to such
Participant under the Plan; provided, however, that the Committee may amend the Plan in such manner
as it deems necessary to permit the granting of Awards meeting the requirements of any Applicable
Laws.
Without limiting the generality of the foregoing, to the extent applicable, notwithstanding
anything herein to the contrary, this Plan and Awards issued hereunder shall be interpreted in
accordance with Section 409A of the Code and Department of Treasury regulations and other
interpretative guidance issued thereunder, including without limitation any such regulations or
other guidance that may be issued after the Effective Date. Notwithstanding any provision of the
Plan to the contrary, in the event that the Committee determines that any amounts payable hereunder
will be taxable to a Participant under Section 409A of the Code and related Department of Treasury
guidance prior to payment to such Participant of such amount, the Company may (a) adopt such
amendments to the Plan and Awards and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Committee determines necessary or appropriate to
preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder
and/or (b) take such other actions as the Committee determines necessary or appropriate to comply
with the requirements of Section 409A of the Code.
14.
Jurisdictions
In order to assure the viability of Awards granted to Participants employed in various
jurisdictions, the Committee may, in its sole discretion, may provide for such special terms as it
may consider necessary or appropriate to accommodate differences in local law, tax policy or custom
applicable in the jurisdiction in which the Participant resides or is employed. Moreover, the
Committee may approve such supplements to, amendments, restatements, or alternative versions of the
Plan as it may consider necessary or appropriate for such purposes without thereby affecting the
terms of the Plan as in effect for any other purpose; provided, however, that no such supplements,
restatements or alternative versions shall increase the Share limitation contained in Section 3
hereof. Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no
Awards shall be granted that would violate any Applicable Laws.
15.
Distribution of Shares
The obligation of the Company to make payments in Shares pursuant to an Award shall be subject
to all Applicable Laws and to any such approvals by government agencies as may be required.
Without limiting the generality of the foregoing, Shares distributed pursuant to an Award may
consist, in whole or in part, of authorized and unissued Shares, treasury Shares or Shares
purchased on the open market. Additionally, in the discretion of the Committee, American
Depository Shares may be distributed in lieu of Shares in settlement of any Award, provided that
the American Depository Shares shall be of equal value to the Shares that would have otherwise been
distributed. If the number of Shares represented by an American Depository Share is other
11
than on a one-to-one basis, the limitations of Section 3 shall be adjusted to reflect the
distribution of American Depository Shares in lieu of Shares.
16.
Taxes
No Shares shall be delivered under the Plan to any Participant until such Participant has made
arrangements acceptable to the Committee for the satisfaction of any income and employment tax
withholding obligations under any Applicable Laws, in particular, the tax laws, rules, regulations
and government orders of the People’s Republic of China or the U.S. federal, state or other local
tax laws, as applicable. The Company and each of its Subsidiaries shall have the authority and the
right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient
to satisfy federal, state, local and foreign taxes (including the Participant’s payroll tax
obligations, if any) required to be withheld under any Applicable Laws with respect to any Award
issued to the Participant hereunder. The Committee may in its discretion and in satisfaction of
the foregoing requirement allow a Participant to elect to have the Company withhold Shares
otherwise issuable under an Award (or allow the return of Shares) having a Fair Market Value equal
to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number
of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased form the Participant of such Award after such Shares were
acquired by the Participant from the Company) in order to satisfy the Participant’s federal, state,
local and other income and payroll tax liabilities with respect to the issuance, vesting, exercise
or payment of the Award shall, unless specifically approved by the Committee, be limited to the
number of Shares which have a Fair Market Value on the date of withholding or repurchase equal to
the aggregate amount of such liabilities based on the minimum statutory withholding rates for
federal, state, local and other income tax any payroll tax purposes that are applicable to such
taxable income.
17.
Choice of Law
The Plan shall be governed by and construed in accordance with the laws of the state of New
York.
18.
Effectiveness of the Plan
The Plan shall be effective as of the Effective Date and shall terminate on the tenth
anniversary of the Effective Date, subject to earlier termination by the Board pursuant to Section
13 hereof.