Exhibit
10.3


 


EMPLOYMENT
AGREEMENT


 


This
EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of December 9, 2017 (the “Effective Date”),
by and between CLPS INCORPORATION., a Cayman Islands corporation (the “Company”) having its principal place
of business at c/o 2nd Floor, Building 18, Shanghai Pudong Software Park, 498 Guoshoujin Road, Pudong, Shanghai 201203, People’s
Republic of China, and Xiao Feng Yang (“Executive”, and the Company and the Executive collectively referred
to herein as the “Parties”).


 


WITNESSETH:


 


WHEREAS,
the Company desires to hire Executive and to employ him as the Company’s Chairman & President (“Title”)
commencing as of the Effective Date, and the Parties desire to enter into this Agreement embodying the terms of such employment;





 


NOW,
THEREFORE, in consideration of the premises and the mutual covenants and promises of the Parties contained herein, the Parties,
intending to be legally bound, hereby agree as follows:


 


1.            Title
and Job Duties.


 


(a)       Subject
to the terms and conditions set forth in this Agreement, the Company agrees to employ Executive as the Chairman and President.


 


(b)       Executive
accepts such employment and agrees, during the term of his employment, to devote his full business and professional time and energy
to the Company, and agrees faithfully to perform his duties and responsibilities in an efficient, trustworthy and business-like
manner.


 


(c)       Without
limiting the generality of the foregoing, Executive shall not, without the written approval of the Company, render services of
a business or commercial nature on his own behalf or on behalf of any other person, firm, or corporation, whether for compensation
or otherwise, during his employment hereunder; provided, however, the Company herby approves of the Executive’s limited
activities, which shall not interfere with Executive’s ability to perform hereunder, in real estate and business to business
lending in the automotive industry as they exist on the Effective Date. The foregoing limitation shall not apply to Executive’s
involvement in associations, charities and service on another entity’s board of directors, provided such involvement does
not interfere with Executives responsibilities (and as it pertains to any service on another entity’s board of directors,
provided such action is pre-approved by the Company).


 


2.            Salary
and Additional Compensation.


 


(a)       Base
Salary. The Company shall pay to Executive an annual base salary (“Base Salary”) of RMB144,000
and HK$566,472 (a total of approximately USD$94,100) in accordance with the Company’s normal payroll procedures. The
Compensation Committee shall review the Executive’s Base Salary no less than annually and may increase (but not
decrease) such Base Salary during the term of this Agreement.


  



     


     


    

 


(b)       Annual
Bonus. Commencing with the year ending June 30, 2018, Executive will be entitled to receive an annual cash bonus (the “Annual
Bonus”), payable with respect to each year of the Term subsequent to the issuance of the Company’s final audited
financial statements for such year. The final determination on the amount, if any, of the Annual Bonus will be made by, and in
the sole discretion of the Compensation Committee of the Board of Directors of the Company (the “Board”) (or
the Board, if such committee has been dissolved), based on criteria established by the Compensation Committee of the Board (or
the Board, if such committee has been dissolved). For the fiscal year in which Executive commences employment with the Company,
Executive will be entitled to receive an Annual Bonus which is prorated based on the number of days from the Effective Date until
the end of the fiscal year divided by 365.


 


3.            Expenses.
In accordance with Company policy, the Company shall reimburse Executive for all reasonable association fees, professional related
expenses (certifications, licenses and continuing professional education) and business expenses properly and necessarily incurred
and paid by Executive in the performance of his duties under this Agreement, including without limitation all travel expenses
to and from his designated office as set forth in the opening paragraph of this Agreement, upon his presentment of detailed receipts
in the form required by the Company’s policy. Notwithstanding the foregoing, all expenses must be promptly submitted for
reimbursement by the Executive. In no event shall any reimbursement be paid by the Company after the end of the year following
the year in which the expense is incurred by the Executive.


 


4.            Benefits.


 


(a)       Vacation
and Sick Leave. Executive shall be entitled to three weeks of vacation per year and 10 days of sick leave per year, which
shall accrue at a pro rata rate per pay period. Vacation must be taken in the year in which it accrues and the dates of any vacation
must be approved by the CEO.


 


(b)       Health
Insurance and Other Plans. Executive shall be eligible to participate in the Company’s medical, dental and other employee
benefit programs, if any, that are provided by the Company for its employees at Executive’s level in accordance with the
provisions of any such plans, as the same may be in effect from time to time.


 


5.            Term.
The term of employment under this Agreement (the “Term) shall be for a five-year period commencing on the Effective Date
and ending on May 10, 2022, and shall be automatically extended for an additional consecutive twelve (12)-month period on the
fifth anniversary of the Effective Date and each subsequent anniversary thereof, unless and until the Company or Executive provides
written notice to the other party not less than ninety (90) days before such anniversary date that such party is electing
not to extend the Term, in which case the Term shall end at the expiration of the Term as last extended, unless sooner terminated
as set forth below. Following any such notice by the Company of its election not to extend the Term, Executive may terminate his
employment at any time prior to the expiration of the Term by giving written notice to the Company at least thirty (30) days prior
to the effective date of termination, and upon the earlier of such effective date of termination or the expiration of the Term,
Executive shall be entitled to receive the same severance benefits as are provided upon a termination of employment by the Company
without Cause as described in Section 7(a) and Section 7(d).


  



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6.            Termination.


 


(a)           Termination
at the Company’s Election.


 


(i)       For
Cause. At the election of the Company, Executive’s employment may be terminated at any time for Cause (as defined below)
upon written notice to Executive given pursuant to Section 12 of this Agreement. For purposes of this Agreement, “Cause”
for termination shall mean that Executive: (A) pleads “guilty” or “no contest” to, or is convicted of
an act which is defined as a felony under federal or state law, or is indicted or formally charged with acts involving criminal
fraud or embezzlement; (B) in carrying out his duties, engages in conduct that constitutes gross negligence or willful misconduct;
(C) engages in substantiated fraud, misappropriation or embezzlement against the Company; (D) engages in any inappropriate or
improper conduct that causes material harm to the reputation of the Company; or (E) materially breaches any term of this Agreement.
With respect to subsection (E) of this section, to the extent such material breach may be cured, the Company shall provide Executive
with written notice of the material breach and Executive shall have ten (10) days to cure such breach.


 


(ii)       Upon
Disability, Death or Without Cause. At the election of the Company, Executive’s employment may be terminated: (A) should
Executive have a physical or mental impairment that substantially limits a major life activity and Executive is unable to perform
the essential functions of his job with or without reasonable accommodation (“Disability”); (B) upon Executive’s
death; or (C) with ninety (90) days prior written notice, at any time Without Cause for any or no reason.


 


(b)          Termination
at Executive’s Election; Good Reason Termination. Notwithstanding anything contained elsewhere in this Agreement to
the contrary, Executive may terminate his employment hereunder at any time and for any reason, upon thirty (30) days’ prior
written notice given pursuant to Section 12 of this Agreement (“Voluntary Resignation”), provided that upon
notice of resignation, the Company may terminate Executive’s employment immediately and pay Executive thirty (30) days’
Base Salary in lieu of notice. Furthermore, the Executive may terminate this Agreement for “Good Reason,” which
shall be deemed to exist: (i) if the Company’s Board of Directors or that of any successor entity of Company, fails to appoint
or reappoint the Executive or removes the Executive as the CFO of the Company; (ii) if Executive is assigned any duties materially
inconsistent with the duties or responsibilities of the CFO of the Company as contemplated by this Agreement or any other action
by the Company that results in a material diminution in such position, authority, duties, or responsibilities, excluding an isolated,
insubstantial, and inadvertent action not taken in bad faith; or (iii) a material breach by the Company of this Agreement. Good
Reason shall not exist hereunder unless the Executive provides notice in writing to the Company of the existence of a condition
described above within a period not to exceed ninety (90) days of the initial existence of the condition, and with respect to
subsection (iii) of this section, to the extent such material breach may be cured, the Company does not remedy the condition within
thirty (30) days of receipt of such notice.


  



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(c)           Termination
in General. If Executive’s employment with the Company terminates for any reason, the Company will pay or provide to
Executive: (i) any unpaid Salary through the date of employment termination, (ii) any unpaid Annual Bonus for the fiscal year
prior to the fiscal year in which the termination occurs (payable at the time the bonuses are paid to employees generally), (iii)
any accrued but unused vacation or paid time off in accordance with the Company’s policy, (iv) reimbursement for any unreimbursed
business expenses incurred through the termination date, to the extent reimbursable in accordance with Section 3, and (v) all
other payments or benefits (if any) to which Executive is entitled under the terms of any benefit plan or arrangement.


 


7.            Severance.


 


(a)           Subject
to Section 7(b) below, if Executive’s employment is terminated prior to the end of the Term by the Company without Cause
or by Executive for Good Reason, Executive shall be entitled to receive a severance payment equal to (i) nine (9) months of Executive’s
Base Salary, and (ii) a pro rata portion of the target Annual Bonus for the year in which such termination occurs. Such severance
payment shall be made in a single lump sum sixty (60) days following such termination, provided the Executive has executed and
delivered to the Company, and has not revoked a general release of the Company, its parents, subsidiaries and affiliates and each
of its officers, directors, employees, agents, successors and assigns, and such other persons and/or entities as the Company may
determine, in a form reasonably acceptable to the Company. Such general release shall be delivered on or about the date of termination
and must be executed within fifty-five (55) days of termination.


 


(b)           If
Executive’s employment is terminated prior to the end of the Term by the Company without Cause or by Executive for Good
Reason, and such termination occurs within three months prior to a Change in Control in contemplation of the Change in Control
or within six (6) months after the Change in Control, Executive shall be entitled to receive, in addition to any severance pursuant
to Section 7(a) above, an acceleration of the vesting of the Stock Option Grant or, if the termination occurs after the Change
of Control, the Substitute Grant, as applicable. For purposes of this Agreement, “Change in Control” means
the occurrence of any of the following events: (i) an acquisition (other than directly from the Company) of any voting securities
of the Company by any person or group of affiliated or related persons (as such term is defined in Sections 13(d) and 14(d)(2)
of the Securities Exchange Act of 1934 (“Exchange Act”)), immediately after which such person or group has
beneficial ownership (within the meaning of the Exchange Act) of more than fifty percent (50%) of the combined voting power of
the Company’s then outstanding voting securities; provided that this subsection shall not apply to an acquisition of voting
securities by any employee benefit plan or trust maintained by or for the benefit of the Company or its employees; (ii) a merger,
consolidation or reorganization involving the Company whereby the holders of Company common stock immediately preceding such transaction
no longer hold a majority of the shares of Company common stock after such transaction; or (iii) the sale or other disposition
of all or substantially all of the Company's assets.


 


(c)           If
Executive’s employment is terminated prior to the end of the Term by the Company without Cause or by Executive for Good Reason,
and if Executive is eligible for and elects to continue to participate in the Company’s medical and dental benefit programs,
the Company will continue to pay the same portion of Executive’s medical and dental insurance premiums as during active employment
(for Executive and eligible spouse and dependents) until the earlier of: (1) nine months from Executive’s cessation from employment;
or (2) the date Executive is eligible for medical and/or dental insurance benefits from another employer.


  



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8.            Confidentiality
Agreement.


 


(a)           Executive
understands that during the Term he may have access to unpublished and otherwise confidential information both of a technical
and non-technical nature, relating to the business of the Company and any of its parents, subsidiaries, divisions, affiliates
(collectively, “Affiliated Entities”), or clients, including without limitation any of their actual or anticipated
business, research or development, any of their technology or the implementation or exploitation thereof, including without limitation
information Executive and others have collected, obtained or created, information pertaining to patent formulations, vendors,
prices, costs, materials, processes, codes, material results, technology, system designs, system specifications, materials of
construction, trade secrets and equipment designs, including information disclosed to the Company by others under agreements to
hold such information confidential (collectively, the “Confidential Information”). Executive agrees to observe
all Company policies and procedures concerning such Confidential Information. Executive further agrees not to disclose or use,
either during his employment or at any time thereafter, any Confidential Information for any purpose, including without limitation
any competitive purpose, unless authorized to do so by the Company in writing, except that he may disclose and use such information
when necessary in the performance of his duties for the Company. Executive’s obligations under this Agreement will continue
with respect to Confidential Information, whether or not his employment is terminated, until such information becomes generally
available from public sources through no action of Executive. Notwithstanding the foregoing, however, Executive shall be permitted
to disclose Confidential Information as may be required by a subpoena or other governmental order, provided that he first notifies
promptly the Company of such subpoena, order or other requirement and allows the Company the opportunity to obtain a protective
order or other appropriate remedy.


 


(b)           During
Executive’s employment, upon the Company’s request, or upon the termination of his employment for any reason, Executive
will promptly deliver to the Company all documents, records, files, notebooks, manuals, letters, notes, reports, customer and
supplier lists, cost and profit data, e-mail, apparatus, computers, cell phones, tablets, hardware, software, drawings, and any
other material of the Company or any of its Affiliated Entities or clients, including all materials pertaining to Confidential
Information developed by Executive or others, and all copies of such materials, whether of a technical, business or fiscal nature,
whether on the hard drive of a laptop or desktop computer, in hard copy, disk or any other format, which are in Executive’s
possession, custody or control.


 


(c)           Executive
will promptly disclose to the Company any idea, invention, discovery or improvement, whether patentable or not (“Creations”),
conceived or made by him alone or with others at any time during his employment. Executive agrees that the Company owns all such
Creations, conceived or made by Executive alone or with others at any time during his employment, and Executive hereby assigns
and agrees to assign to the Company all rights he has or may acquire therein and agrees to execute any and all applications, assignments
and other instruments relating thereto which the Company deems necessary or desirable. These obligations shall continue beyond
the termination of his employment with respect to Creations and derivatives of such Creations conceived or made during his employment
with the Company. Executive understands that the obligation to assign Creations to the Company shall not apply to any Creation
which is developed entirely on his own time without using any of the Company’s equipment, supplies, facilities, and/or Confidential
Information unless such Creation (a) relates in any way to the business or to the current or anticipated research or development
of the Company or any of its Affiliated Entities; or (b) results in any way from his work at the Company.


  



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(d)           Executive
will not assert any rights to any invention, discovery, idea or improvement relating to the business of the Company or any of
its Affiliated Entities or to his duties hereunder as having been made or acquired by Executive prior to his work for the Company.


 


(e)           During
the Term, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license
(with the right to grant and authorize sublicenses) to make, have made, modify, use, sell, offer to sell, import, reproduce, distribute,
publish, prepare derivative works of, display, perform publicly and by means of digital audio transmission and otherwise exploit
as part of or in connection with any product, process or machine created or incorporated by the Executive.


 


(f)           Executive
agrees to cooperate fully with the Company, both during and after his employment with the Company, with respect to the procurement,
maintenance and enforcement of copyrights, patents, trademarks and other intellectual property rights (both in the United States
and foreign countries) relating to such Creations. Executive shall sign all papers, including, without limitation, copyright applications,
patent applications, declarations, oaths, formal assignments, assignments of priority rights and powers of attorney, which the
Company may deem necessary or desirable in order to protect its rights and interests in any Creations. Executive further agrees
that if the Company is unable, after reasonable effort, to secure Executive’s signature on any such papers, any officer
of the Company shall be entitled to execute such papers as his agent and attorney-in-fact and Executive hereby irrevocably designates
and appoints each officer of the Company as his agent and attorney-in-fact to execute any such papers on his behalf and to take
any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any Creations,
under the conditions described in this paragraph.


 


9.            Non-solicitation;
non-competition. (a) Executive agrees that, during the Term and until nine (9) months after the termination of his employment,
Executive will not, directly or indirectly, including on behalf of any person, firm or other entity, employ or actively solicit
for employment any employee of the Company or any of its Affiliated Entities, or anyone who was an employee of the Company or
any of its Affiliated Entities within the nine (9) months prior to the termination of Executive’s employment, or induce
any such employee to terminate his or her employment with the Company or any of its Affiliated Entities.


 


(b)           Executive
further agrees that, during the Term and until nine (9) months after the termination of his employment, Executive will not, directly
or indirectly, including on behalf of any person, firm or other entity, without the express written consent of an authorized representative
of the Company, (i) perform services within the Territory (as defined below) for any Competing Business (as defined below), whether
as an employee, consultant, agent, contractor or in any other capacity, (ii) hold office as an officer or director or like position
in any Competing Business, or (iii) request any present or future customers or suppliers of the Company or any of its Affiliated
Entities to curtail or cancel their business with the Company or any of its Affiliated Entities. These obligations will continue
for the specified period regardless of whether the termination of Executive’s employment was voluntary or involuntary or
with or without Cause or for any other reason.


  



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(c)           “Competing
Business” means any corporation, partnership or other entity or person (other than the Company) which is engaged (a)
in the development, manufacture, marketing, distribution or sale of, or research directed to the development, manufacture, marketing,
distribution or sale of competing anti-cancer drug candidates or products or (b) in any other business activity carried on or
planned to be carried on by the Company or any of its Affiliates during the Term.


 


(d)           “Territory”
shall mean within any state or foreign jurisdiction in which the Company or any subsidiary of the Company is then providing services
or products or marketing its services or products (or engaged in active discussions to provide such services).


 


(e)           Executive agrees that in the event a court determines the length of time or the geographic
area or activities prohibited under this Section 9 are too restrictive to be enforceable, the court shall reduce the scope of
the restriction to the extent necessary to make the restriction enforceable. In furtherance and not in limitation of the foregoing,
the Company and the Executive each intend that the covenants contained in this Section 9 shall be deemed to be a series of separate
covenants, one for each and every state, territory or jurisdiction of the United States and any foreign country set forth therein. 
If, in any judicial proceeding, a court shall refuse to enforce any of such separate covenants, then such unenforceable covenants
shall be deemed eliminated from the provisions hereof for the purpose of such proceedings to the extent necessary to permit the
remaining separate covenants to be enforced in such proceedings.


 


10.           Representation
and Warranty. The Executive hereby acknowledges and represents that he has had the opportunity to consult with legal counsel
regarding his rights and obligations under this Agreement and that he fully understands the terms and conditions contained herein.
Executive represents and warrants that Executive has provided the Company a true and correct copy of any agreements that purport:
(a) to limit Executive’s right to be employed by the Company; (b) to prohibit Executive from engaging in any activities
on behalf of the Company; or (c) to restrict Executive’s right to use or disclose any information while employed by the
Company. Executive further represents and warrants that Executive will not use on the Company’s behalf any information,
materials, data or documents belonging to a third party that are not generally available to the public, unless Executive has obtained
written authorization to do so from the third party and provided such authorization to the Company. In the course of Executive’s
employment with the Company, Executive is not to breach any obligation of confidentiality that Executive has with third parties,
and Executive agrees to fulfill all such obligations during Executive’s employment with the Company. Executive further agrees
not to disclose to the Company or use while working for the Company any trade secrets belonging to a third party.


 


11.           Injunctive
Relief. Without limiting the remedies available to the Company, Executive acknowledges that a breach of any of the covenants
contained in Sections 8 and 9 above may result in material irreparable injury to the Company for which there is no adequate remedy
at law, that it will not be possible to measure precisely damages for such injuries and that, in the event of such a breach or
threat thereof, the Company shall be entitled, without the requirement to post bond or other security, to obtain a temporary restraining
order and/or injunction restraining Executive from engaging in activities prohibited by this Agreement or such other relief as
may be required to specifically enforce any of the covenants in Sections 8 and 9 of this Agreement.


  



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12.           Notice.
Any notice or other communication required or permitted to be given to the Parties shall be deemed to have been given if either
personally delivered, or if sent for next-day delivery by nationally recognized overnight courier, and addressed as follows:


 


(a)          If to Executive, to:


  


2nd
Floor, Building 18, Shanghai Pudong Software Park, 498 Guoshoujin Road, Pudong, Shanghai 201203, People’s Republic of China


 


(b)          If to the Company, to:


 


2nd
Floor, Building 18, Shanghai Pudong Software Park, 498 Guoshoujin Road, Pudong, Shanghai 201203, People’s Republic of China


 


13.           Severability.
If any provision of this Agreement is declared void or unenforceable by a court of competent jurisdiction, all other provisions
shall nonetheless remain in full force and effect.


 


14.           Withholding.
The Company may withhold from any payment that it is required to make under this Agreement amounts sufficient to
satisfy applicable withholding requirements under any federal, state or local law.


 


15.           Indemnification.
The Company agrees that Executive will be covered by any “directors and officers” insurance policies then in effect
with respect to Executive’s acts as an officer.


 


16.           Governing
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of Hong Kong.


 


17.           Waiver.
The waiver by either Party of a breach of any provision of this Agreement shall not be or be construed as a waiver of any subsequent
breach. The failure of a Party to insist upon strict adherence to any provision of this Agreement on one or more occasions shall
not be considered a waiver or deprive that Party of the right thereafter to insist upon strict adherence to that provision or
any other provision of this Agreement. Any such waiver must be in writing, signed by the Party against whom such waiver is to
be enforced.


 


18.           Assignment.
This Agreement is a personal contract and Executive may not sell, transfer, assign, pledge or hypothecate his rights, interests
and obligations hereunder. Except as otherwise herein expressly provided, this Agreement shall be binding upon and shall inure
to the benefit of Executive and his personal representatives and shall inure to the benefit of and be binding upon the Company
and its successors and assigns, including without limitation, any corporation or other entity into which the Company is merged
or which acquires all or substantially all of the assets of the Company.


 


19.           Entire
Agreement. This Agreement embodies all of the representations, warranties, covenants, understandings and agreements between
the Parties relating to Executive’s employment with the Company. No other representations, warranties, covenants, understandings,
or agreements exist between the Parties relating to Executive’s employment. This Agreement shall supersede all prior agreements,
written or oral, relating to Executive’s employment. This Agreement may not be amended or modified except by a writing signed
by the Parties.


 


[Signature
page follows]


  



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IN
WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered on the date first written above.


  


	 	 	CLPS INCORPORATION
	 	 	 
	 	 	By:	/s/ Raymond Ming Hui Lin
	 	 	Name:	Raymond Ming Hui Lin
	 	 	Title:  	Chief Executive Officer
	 	 	 
	Agreed to and Accepted:	 	 
	 	 	 
	/s/ Xiao Feng Yang	 	 
	Date:
    December 9, 2017	 	 




 


 


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