Vision - Alibaba

Directors’ Report
(C) Share option scheme
We also adopted a share option scheme (the “Share Option Scheme”) by a resolution of our then sole
shareholder and a resolution of our board both on October 12, 2007, and the Share Option Scheme became
effective on the date of our listing. The following is a summary of the principal terms of the Share Option
Scheme:
1. Purpose of the Share Option Scheme
The purpose of the Share Option Scheme is to attract skilled and experienced personnel, to incentivize
them to remain with our Company and to give effect to our customer-focused corporate culture,
and to motivate them to strive for our future development and expansion by providing them with the
opportunity to acquire our equity interests.
2. Participants of the Share Option Scheme
Our board may at its discretion grant options to directors (including executive directors,
non-executive directors and independent non-executive directors), our employees and any of our
advisers or consultants whom our board considers, in its sole discretion, to have contributed or will
contribute to our Company.
3. Total number of shares available for issue under the Share Option Scheme
(i) Pursuant to the listing approval issued by the Stock Exchange on November 5, 2007, the total
number of Shares subject to the Share Option Scheme and the RSU Scheme of our Company
must not, in aggregate, exceed 135,100,000 Shares, representing approximately 2.67% of the
issued share capital of our Company as of December 31, 2007.
For the year ended December 31, 2007, no options were granted under the Share Option
Scheme.
Subsequent to the balance sheet date, we granted options in respect of a total of 6,000,500
underlying Shares to our directors and employees under the Share Option Scheme as follows:
On-hire award to new employees 1,585,000
Performance award to directors 1,261,000
Performance award to employees 3,154,500
Total: 6,000,500
Taking into account the above grant of options as well as those RSUs granted under the RSU
Scheme subsequent to the year, as of the date of this Annual Report, options and RSUs in
respect of a total of 125,292,527 underlying Shares are still available for grant under the Share
Option Scheme and RSU Scheme, representing approximately 2.48% of the issued share capital
of our Company as of the date of this Annual Report.
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