Exhibit 10.3


 


EMPLOYMENT
AGREEMENT


 


This
EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of September 2, 2018 (the “Effective Date”),
by and between Hitek Global, Inc., incorporated under the laws of the Cayman Islands (the “Company”), and Tianyu
Xia, an individual (the “Chief Financial Officer (CFO)”). Except with respect to the direct employment of the
CFO by the Company, the term “Company” as used herein with respect to all obligations of the CFO hereunder shall be
deemed to include the Company and all of its subsidiaries and affiliated entities (collectively, the “Group”).


 


RECITALS


 


A.
The Company desires to employ Tianyu Xia as its CFO and to assure itself of the services of the CFO during the term of Employment
(as defined below).


 


B.
Tianyu Xia desires to be employed by the Company as its CFO during the term of Employment and upon the terms and conditions of
this Agreement.


 


AGREEMENT


 


The
parties hereto agree as follows:


 


	1.	POSITION


 


Tianyu
Xia hereby accepts a position of CFO (the “Employment”) of the Company.


 


	2.	TERM


 


	 	Subject
    to the terms and conditions of this Agreement, the initial term of the Employment shall be three years commencing on the Effective
    Date, unless terminated earlier pursuant to the terms of this Agreement. The Employment will be renewed automatically for
    additional one-year terms if neither the Company nor the CFO provides a notice of termination of the Employment to the other
    party or otherwise proposes to re-negotiate the terms of the Employment with the other party within three months prior to
    the expiration of the applicable term.


 


	3.	DUTIES
    AND RESPONSIBILITIES


 


	 	(a)	The
    CFO’s duties at the Company will include all jobs assigned by the Company’s Board of the Directors (the “Board”).


 


	 	(b)	The
    CFO shall devote all of her working time, attention and skills to the performance of her duties at the Company and shall faithfully
    and diligently serve the Company in accordance with this Agreement, the Certificate of Incorporation and Bylaws of the Company,
    as amended and restated from time to time (the “Charter Documents”), and the guidelines, policies and procedures
    of the Company approved from time to time by the Board.


 


	 	(c)	The
    CFO shall use her best efforts to perform her duties hereunder. The CFO shall not, without the prior written consent of the
    Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the Company, and shall not
    be concerned or interested in any business or entity that engages in the same business in which the Company engages (any such
    business or entity, a “Competitor”), provided that nothing in this clause shall preclude the CFO from holding
    any shares or other securities of any Competitor that is listed on any securities exchange or recognized securities market
    anywhere if such shares or securities represent less than 5% of the competitors outstanding shares and securities. The CFO
    shall notify the Company in writing of her interest in such shares or securities in a timely manner and with such details
    and particulars as the Company may reasonably require.


 






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	4.	NO
BREACH OF CONTRACT


 


The
CFO hereby represents to the Company that: (i) the execution and delivery of this Agreement by the CFO and the performance
by the CFO of the CFO’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other
agreement or policy to which the CFO is a party or otherwise bound, except for agreements entered into by and between the CFO
and any member of the Group pursuant to applicable law, if any; (ii) that the CFO has no information (including, without
limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated
by, the CFO entering into this Agreement or carrying out her duties hereunder; (iii) that the CFO is not bound by any confidentiality,
trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as
the case may be.


 


	5.	Intentionally
Omitted


  


	6.	COMPENSATION
AND BENEFITS


 


	 	(a)	Base
    Salary. The CFO’s initial base salary shall be $60,000 and such compensation is subject to annual review and
    adjustment by the Board.


 


	 	(b)	Bonus.
    The CFO shall be eligible for Bonuses determined by the Board. 


 


	 	(c)	Equity
    Incentives. To the extent the Company adopts and maintains a share incentive plan, the CFO will be eligible to participate
    in such plan pursuant to the terms thereof as determined by the Board.


 


	 	(d)	Benefits.
    The CFO is eligible for participation in any standard employee benefit plan of the Company that currently exists or may be
    adopted by the Company in the future, including, but not limited to, any retirement plan, life insurance plan, health insurance
    plan and travel/holiday plan.


 


	 	(e)	Expenses.
    The CFO shall be entitled to reimbursement by the Company for all reasonable ordinary and necessary travel and other expenses
    incurred by the CFO in the performance of her duties under this Agreement; provided that she properly accounts for such expenses
    in accordance with the Company’s policies and procedures.


 


	7.	TERMINATION
OF THE AGREEMENT


 


	 	(a)	By
    the Company.


 


(i) For
Cause. The Company may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or
remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance
with applicable law), if:


 


(1)
the CFO is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement,


 


(2)
the CFO has been grossly negligent or acted dishonestly to the detriment of the Company,


 


(3)
the CFO has engaged in actions amounting to willful misconduct or failed to perform her duties hereunder and such failure continues
after the CFO is afforded a reasonable opportunity to cure such failure; or


 


(4)
the CFO violates Section 8 or 10 of this Agreement.


 


Upon
termination for cause, the CFO shall be entitled to the amount of base salary earned and not paid prior to termination. However,
the CFO will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the
CFO’s right to all other benefits will terminate, except as required by any applicable law.


 






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(ii) For
death and disability. The Company may also terminate the Employment, at any time, without notice or remuneration (unless notice
or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance
with applicable law), if:


 


(1)
the CFO has died, or


 


(2)
the CFO has a disability which shall mean a physical or mental impairment which, as reasonably determined by the Board, renders
the CFO unable to perform the essential functions of her employment with the Company, with or without reasonable accommodation,
for more than 120 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer
period would apply.


 


Upon
termination for death or disability, the CFO shall be entitled to the amount of base salary earned and not paid prior to termination.
However, the CFO will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination,
and the CFO’s right to all other benefits will terminate, except as required by any applicable law.


 


(iii) Without
Cause. The Company may terminate the Employment without cause, at any time, upon one-month prior written notice. Upon termination
without cause, the Company shall provide the following severance payments and benefits to the CFO: (1) a lump sum cash payment
equal to 12 months of the CFO’s base salary as of the date of such termination; (2) a lump sum cash payment equal to
a pro-rated amount of her target annual bonus for the year immediately preceding the termination, if any; (3) payment of
premiums for continued health benefits under the Company’s health plans for 12 months fo1lowing the termination, if any;
and (4) immediate vesting of 100% of the then-unvested portion of any outstanding equity awards held by the CFO.


 


Upon
termination without, the CFO shall be entitled to the amount of base salary earned and not paid prior to termination.


 


(iv) Change
of Control Transaction. If the Company or its successor terminates the Employment upon a merger, consolidation, or transfer
or sale of all or substantially all of the assets of the Company with or to any other individual(s) or entity (the “Change
of Control Transaction”), the CFO shall be entitled to the following severance payments and benefits upon such termination:
(1) a lump sum cash payment equal to 12  months of the CFO’s base salary at a rate equal to the greater of her/her
annual salary in effect immediate1y prior to the termination, or her/her then current annua1 salary as of the date of such termination;
(2) a lump sum cash payment equal to a pro-rated amount of her/her target annual bonus for the year immediately preceding
the termination; (3) payment of premiums for continued health benefits under the Company’s health plans for 12 months
fo1lowing the termination; and (4) immediate vesting of 100% of the then-unvested portion of any outstanding equity awards
held by the CFO.


 


	 	(b)	By
    the CFO. The CFO may terminate the Employment at any time with a one-month prior written notice to the Company, if (1) there
    is a material reduction in the CFO’s authority, duties and responsibilities, or (2) there is a material reduction
    in the CFO’s annual salary. Upon the CFO’s termination of the Employment due to either of the above reasons, the
    Company shall provide compensation to the CFO equivalent to 12 months of the CFO’s base salary that she is entitled
    to immediately prior to such termination. In addition, the CFO may resign prior to the expiration of the Agreement if such
    resignation is approved by the Board or an alternative arrangement with respect to the Employment is agreed to by the Board.


 


	 	(c)	Notice
    of Termination. Any termination of the CFO’s employment under this Agreement shall be communicated by written
    notice of termination from the terminating party to the other party. The notice of termination shall indicate the specific
    provision(s) of this Agreement relied upon in effecting the termination.


 






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	8.	CONFIDENTIALITY
AND NON-DISCLOSURE


 


	 	(a)	Confidentiality
    and Non-disclosure. The CFO hereby agrees at all times during the term of the Employment and after her termination, to
    hold in the strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, corporation
    or other entity without prior written consent of the Company, any Confidential Information. The CFO understands that “Confidential
    Information” means any proprietary or confidential information of the Company, its affiliates, or their respective
    clients, customers or partners, including, without limitation, technical data, trade secrets, research and development information,
    product plans, services, customer lists and customers, supplier lists and suppliers, software developments, inventions, processes,
    formulas, technology, designs, hardware configuration information, personnel information, marketing, finances, information
    about the suppliers, joint ventures, francherees, distributors and other persons with whom the Company does business, information
    regarding the skills and compensation of other employees of the Company or other business information disclosed to the CFO
    by or obtained by the CFO from the Company, its affiliates, or their respective clients, customers or partners, either directly
    or indirectly, in writing, orally or otherwise, if specifically indicated to be confidential or reasonably expected to be
    confidential. Notwithstanding the foregoing, Confidential Information shall not include information that is generally available
    and known to the public through no fault of the CFO.


 


	 	(b)	Company
    Property. The CFO understands that all documents (including computer records, facsimile and e-mail) and materials created,
    received or transmitted in connection with her work or using the facilities of the Company are property of the Company and
    subject to inspection by the Company at any time. Upon termination of the CFO’s employment with the Company (or at any
    other time when requested by the Company), the CFO will promptly deliver to the Company all documents and materials of any
    nature pertaining to her work with the Company and will provide written certification of her compliance with this Agreement.
    Under no circumstances will the CFO have, following her   termination, in her possession any property of the Company,
    or any documents or materials or copies thereof containing any Confidential Information.


 


	 	(c)	Former
    Employer Information. The CFO agrees that she has not and will not, during the term of her employment, (i) improperly
    use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the
    CFO has an agreement or duty to keep in confidence information acquired by CFO, if any, or (ii) bring into the premises
    of the Company any document or confidential or proprietary information belonging to such former employer, person or entity
    unless consented to in writing by such former employer, person or entity. The CFO will indemnify the Company and hold it harmless
    from and against all claims, liabilities, damages and expenses, including reasonable attorneys’ fees and costs of suit,
    arising out of or in connection with any violation of the foregoing.


 


	 	(d)	Third
    Party Information. The CFO recognizes that the Company may have received, and in the future may receive, from third parties
    their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality
    of such information and to use it only for certain limited purposes. The CFO agrees that the CFO owes the Company and such
    third parties, during the CFO’s employment by the Company and thereafter, a duty to hold all such confidential or proprietary
    information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent
    with, and for the limited purposes permitted by, the Company’s agreement with such third party.


 


This
Section 8 shall survive the termination of this Agreement for any reason. In the event the CFO breaches this Section 8, the Company
shall have right to seek remedies permissible under applicable law.


 


	9.	CONFLICTING
EMPLOYMENT.


 


The
CFO hereby agrees that, during the term of her employment with the Company, she will not engage in any other employment, occupation,
consulting or other business activity related to the business in which the Company is now involved or becomes involved during
the term of the CFO’s employment, nor will the CFO engage in any other activities that conflict with her obligations to
the Company without the prior written consent of the Company.


 






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	10.	NON-COMPETITION
AND NON-SOLICITATION


 


In
consideration of the salary paid to the CFO by the Company and subject to applicable law, the CFO agrees that during the term
of the Employment and for a period of one (1) year following the termination of the Employment for whatever reason:


 


	 	(a)	The
    CFO will not approach clients, customers or contacts of the Company or other persons or entities introduced to the CFO in
    the CFO’s capacity as a representative of the Company for the purposes of doing business with such persons or entities
    which will harm the business relationship between the Company and such persons and/or entities;


 


	 	(b)	The
    CFO will not assume employment with or provide services as a director or otherwise for any Competitor, or engage, whether
    as principal, partner, licensor or otherwise, in any Competitor; and


 


	 	(c)	The
    CFO will not seek, directly or indirectly, by the offer of alternative employment or other inducement whatsoever, to solicit
    the services of any employee of the Company employed as at or after the date of such termination, or in the year preceding
    such termination.


 


The
provisions contained in Section 10 are considered reasonable by the CFO and the Company. In the event that any such provisions
should be found to be void under applicable laws but would be valid if some part thereof was deleted or the period or area of
application reduced, such provisions shall apply with such modification as may be necessary to make them valid and effective.


 


Ther
Section 10 shall survive the termination of this Agreement for any reason. In the event the CFO breaches this Section 10, the
CFO acknowledges that there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a
decree for specific performance, and such other relief as may be proper (including monetary damages if appropriate). In any event,
the Company shall have right to seek all remedies permissible under applicable law.


 


	11.	WITHHOLDING
TAXES


 


Notwithstanding
anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts
otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment,
or other taxes as may be required to be withheld pursuant to any applicable law or regulation.


 


	12.	ASSIGNMENT


 


This
Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer
this Agreement or any rights or obligations hereunder; provided, however, that (i) the Company may assign or transfer this
Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of
a Change of Control Transaction, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit
of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of
the Company hereunder.


 


	13.	SEVERABILITY


 


If
any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or
applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions
of this Agreement are declared to be severable.


 






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	14.	ENTIRE
AGREEMENT


 


This
Agreement constitutes the entire agreement and understanding between the CFO and the Company regarding the terms of the Employment
and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter, including any prior agreements
between the CFO and a member of the Group. The CFO acknowledges that she has not entered into this Agreement in reliance upon
any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be
in writing and signed by the CFO and the Company.


 


	15.	GOVERNING
LAW; JURISDICTION


 


This
Agreement shall be governed by and construed in accordance with the laws of the Cayman Islands and each of the parties irrevocably
consents to the jurisdiction and venue of the courts located in Cayman Islands.


 


	16.	AMENDMENT


 


Ther
Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly
referring to this Agreement, which agreement is executed by both of the parties hereto.


 


	17.	WAIVER


 


Neither
the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other
or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power
or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.


 


	18.	NOTICES


 


All
notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor,
or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.


 


	9.	COUNTERPARTS


 


This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose
signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories.


 


Photographic
copies of such signed counterparts may be used in lieu of the originals for any purpose.


 


	20.	NO
INTERPRETATION AGAINST DRAFTER


 


Each
party recognizes that this Agreement is a legally binding contract and acknowledges that it, he or she has had the opportunity
to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against
either party on the basis of that party being the drafter of such terms.


 


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IN
WITNESS WHEREOF, this Agreement has been executed as of the date first written above.


 


	 	Hitek
    Global, Inc.
	 	 	 
	 	By:	/s/
    Shenping     Yin
	 	Name:	Shenping
Yin
	 	Title:	Chairman
       


 


	 	CFO
	 	 	                           
	 	Signature:	/s/
    Tianyu     Xia
	 	Name:	Tianyu
    Xia


 



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