Document:

Exhibit 10.18

 

EMPLOYMENT AGREEMENT

 

AGREEMENT, dated
as of ___the of _____ 2006 between Hong Weidong, residing at
____________________________ (“Executive”), and Yucheng Technologies Limited, a
BVI a British Virgin Islands corporation having its principal office at
__________________________ (“Company”)

 

WHEREAS, the
Company believes that Executive provides unique management services for the
Company and wishes to retain the continued services of

Executive as its
Chief Executive Officer; and

 

WHEREAS, the
Company and Executive have reached an understanding with respect to the
extension of Executive’s employment with the Company for a three year period
commencing as of ____, 2006 and

 

WHEREAS, the
Company and Executive desire to evidence their agreement in writing and to
provide for the employment of Executive by the Company on the terms set forth
herein.

 

IT IS AGREED:

 

1. Employment,
Duties and Acceptance.

 

1.1. Effective as
of _______ , 2006 the Company hereby agrees to the continued employment of Executive
as its Chief Executive Officer hereby accepts such continued employment on the
terms and conditions contained in the Agreement. During the term of this
Agreement, the Executive shall make himself available during regular business
hours to the Company to pursue the business of the Company subject to the
supervision and direction of the Board of Directors of the Company (“Board” or “Board
of Directors”).

 

1.2. The Board may
assign the Executive such general management and supervisory responsibilities
and executive duties for the Company as are appropriate and commensurate with
Executive’s position as Chief Executive Officer of the Company (“CEO”) and
would otherwise be consistent in stature and prestige with the responsibilities
of a CEO.

 

1.3. Executive
accepts such employment and agrees to devote substantially all of his business
time, energies and attention to the performance of his duties; provided,
however, that Executive may continue to be actively involved in educational and
civic activities to the extent that such activities do not materially detract
from the reasonable performance of his duties (such material detraction to be
evidenced by a resolution approved by the majority of the Board and a written
notice to Executive, in which event Executive shall have thirty (30) days to
reduce the level of such activities in a reasonable manner). The Company
recognizes the value to it of Executive’s continued involvement in these
activities and will reimburse Executive for reasonable expenses incurred by him
in connection with such activities. Nothing herein shall be construed as
preventing Executive from (i) making and supervising investments on a personal
or family basis (including trusts, funds and investment entities in which
Executive or members of his family have an interest) and (ii) in serving on the
Board of Directors of not more than three corporations involved primarily in “for
profit” business activities; provided, however, that these activities do not
materially interfere with the performance of his duties hereunder or violate
the provisions of Section 4.4 hereof.

 

 

 

2. Compensation
and Benefits.

 

2.1 The Company
shall pay to Executive a salary at an annual base rate of not less than $50,000
for the term hereof. During the Executive’s employment salary will be paid not
less frequently than every two weeks without the prior written consent of
Executive. Executive’s annual base rate will be reviewed one month prior to the
commencement of the third year for purposes of determining what the new base salary
will be.

 

2.2. The Company
shall also pay to Executive such bonuses as may be determined from time to time
by the Compensation Committee of the Board of Directors. The amount of annual
bonus payable to Executive may vary at the discretion of the Compensation
Committee of the Board of Directors; provided, however, that the total cash bonus
shall not exceed 100% of Executive’s annual base rate under Section 2.1 as of
the date the bonus is awarded.  Executive
will be entitled to earn an equity bonus to be awarded under the Stock Option
Plan.  In determining the annual bonus to
be paid to the Executive, the Compensation Committee may, among other factors
they believe to be appropriate, consider, and give varying degrees of
importance to, the Executive’s contribution to the following:

 

(1) growth in the
Company’s per share value;

(2) achievement by
the Company of specific identified targets selected by the Committee from time
to time;

(3) the attraction
and retention of key executive personnel by the Company;

(4) satisfaction
of the Company’s capital requirements;

(5) the
establishment of strategic direction and significant Company goals; and

(6) Such other
criteria as the Compensation Committee deems to be relevant.

 

2.3. Executive
shall be entitled to such insurance and other benefits including, among others,
medical and disability coverage and life insurance as are afforded to other
senior executives of the Company, subject to applicable waiting periods and
other conditions which may be generally applicable. The Company also shall
purchase if possible (i) long term disability insurance of not less than 50% of
Executive’s then current annual salary and (ii) split dollar life insurance
with coverage of not less than $1.0 million. The beneficiary of these policies
shall be designated by Executive and these policies shall be transferred to
Executive or his designees by the Company at his written request.

 

2.4. Executive
shall be entitled to four weeks of vacation in each calendar year and to a
reasonable number of other days off for religious and personal reasons.

 

2.5. Executive
shall be entitled, at his option, to maintain a suitable automobile for
business use. The Company shall reimburse Executive for the costs of leasing
such automobile and for all other costs associated with the use of the vehicle,
including insurance costs, repairs and maintenance.

 

2.6. The Company
will pay or reimburse executive for all transportation, hotel and other
expenses incurred by Executive on business trips (including business air travel
on scheduled flights of more than 5) consecutive hours) and for all other
ordinary and reasonable out-of-pocket expenses actually incurred by him in the
conduct of the business of the Company against itemized vouchers submitted with
respect to any such expenses.

 

2.7. Executive
agrees that his services shall be rendered primarily at the Company’s executive
offices which shall be located in, or within thirty (30) miles of, the Company’s
current executive offices located in ______________________. If the Company
moves its offices more than

 

 

2

 

thirty(30) miles
of the aforementioned location, the Company will reimburse Executive for the
following, which may be taxable to Executive:

 

(1) Usual and customary
expenses incurred if Executive sells his home himself or through a broker;
however, reimbursement for the broker’s commission (if Executive utilizes the
services of a broker) may not exceed six (6) percent of the sales proceeds;

 

(2) Reasonable
expenses incurred in moving furniture, normal household goods and personal
belongings to the new location and incidental expenses related to the move;

 

(3) Reasonable
expenses (including travel and hotel) while house-hunting, including four trips
to the new location with Executive’s spouse and children;

 

(4) Reasonable and
customary closing costs incurred in buying Executive’s new home; and

 

(5) Reasonable
temporary living expenses incurred while awaiting occupancy in Executive’s new
quarters.

 

3. Term and Termination.

 

3.1. The term of
this Agreement commences as of ____

2006 and shall
continue until _____ 2009 unless sooner terminated as herein provided.

 

3.2. If Executive
dies during the term of this Agreement, this Agreement shall thereupon
terminate, except that the Company shall pay to the legal representative of
Executive’s estate the base salary due Executive pursuant to Section 2.1 hereof
through the first anniversary of Executive’s death (or the scheduled expiration
under Section 3.1, if earlier than the first anniversary date) as well as a pro
rata allocation of bonus payments under Section 2.2 based on the days of
service during the year of death, and all amounts owing to Executive at the
time of termination, including for previously accrued but unpaid bonuses,
expense reimbursements and accrued but unused vacation pay.

 

3.3. If Executive
shall be rendered incapable by an incapacitating illness or disability (either
physical or mental) of complying with the terms, provisions and conditions
hereof on his part to be performed for a period in excess of 180 consecutive
days during any consecutive twelve (12) month period, then the Company, at its
option, may terminate this Agreement by written notice to Executive (the “Disability
Notice”) delivered prior to the date Executive resumes the rendering of
services hereunder; provided, however, if requested by Executive (or a
representative thereof) such termination shall not occur until after
examination of Executive by a medical doctor (retained by the Company with the
consent of the Executive which consent shall not be unreasonably withheld) who
certifies in a written report to the Board with a copy of such report delivered
simultaneously to Executive that Executive is and shall be incapable of
performing his duties for in excess of two additional months because of the
continuing existence of such incapacitating illness or disability.
Notwithstanding such termination, the Company (a) shall make a payment to
Executive of a pro rata allocation of payments under Section 2.2 based on the
days of service during the year in which the Disability Notice is delivered and
(b) shall pay to Executive the base salary due Executive pursuant to Section
2.1 hereof through the second anniversary of the date of such notice (the “Disability
Period”), less any amount Executive receives for such period from any
Company-sponsored or Company-paid for source of insurance, disability
compensation or governmental program. The Company 

 

3

 

shall also pay to
Executive all amounts owing to Executive at the time of termination, including
for previously accrued but unpaid bonuses, expense reimbursements and accrued
but unused vacation pay.

 

3.4. The Company,
by notice to Executive, may terminate this Agreement for cause. As used herein,
“cause” shall include (a) the refusal in bad faith by Executive to carry out
specific written directions of the Board, (b) intentional fraud or dishonest
action by Executive in his relations with the Company (“dishonest” for these
purposes shall mean Executive’s knowingly making of a material misstatement to
the Board for the purpose of obtaining direct personal benefit); or (c) the
conviction of Executive of any crime involving an act of significant moral
turpitude after appeal or the period for appeal has elapsed without an appeal
being filed by Executive. Notwithstanding the foregoing, no “cause” for
termination shall be deemed to exist with respect to Executive’s acts described
in clause (a) or (b) above, unless the Board shall have given written notice to
Executive (after five (5) days advance written notice to Executive and a
reasonable opportunity to Executive to present his views with respect to the
existence of “cause”), specifying the “cause” with particularity and, within five
(5) business days after such notice, Executive shall not have disputed the
Board’s determination or taken action to cure or eliminate prospectively the
problem or thing giving rise to such “cause,” provided, however, that a
repeated breach after notice and cure, of any provision of clause (a) or (b)
above, involving the same or substantially similar actions or conduct, shall be
grounds for termination for cause upon not less than five (5) days additional
notice from the Company.

 

3.5. The Executive,
by notice to the Company, may terminate this Agreement if a “Good Reason”
exists. For purposes of this Agreement, “Good Reason” shall mean the occurrence
of any of the following circumstances without the Executive’s prior express
written consent:

 

(a) a material
adverse change in the nature of Executive’s title, duties or responsibilities
with the Company that represents a demotion from his title, duties or
responsibilities as in effect immediately prior to such change; (b) a material
breach of this Agreement by the Company; (c) a failure by the Company to make
any payment to Executive when due, unless the payment is not material or is
being contested by the Company, in good faith provided it is not the subject of
a proper set off or proper withholding pursuant to applicable law or regulation;
(d) a liquidation, bankruptcy or receivership of the Company.  Notwithstanding the foregoing, no Good Reason
shall be deemed to exist with respect to the Company’s acts described in
clauses (a), (b) or (c) above, unless Executive shall have given written notice
to the Company specifying the Good Reason with reasonable particularity and,
within ten (10) business days after such notice, the Company shall not have
cured or eliminated the problem or thing giving rise to such Good Reason.

 

3.6. In the event
that Executive terminates this Agreement for

Good Reason,
pursuant to the provisions of paragraph 3.5, or the Company terminates this
Agreement without “Cause,” as defined in paragraph 3.4, the Company shall pay
to Executive (or in the case of his death, the legal representative of
Executive’s estate or such other person or persons as Executive shall have
designated by written notice to the Company) the sum of $300,000 and benefits
through the terms of this Agreement. If Executive’s employment is terminated
for Good Reason or without “Cause,” Executive shall have no duty to mitigate
awards paid or payable to him pursuant to this subsection, and any compensation
paid or payable to Executive from sources other than the Company will not
offset or terminate the Company’s obligation to pay to Executive the full
amounts pursuant to this subsection 3.6.

 

 

4

 

3.7  Any termination of the employment of the
Executive will be deemed to be a resignation, as of the date of termination, of
the Executive from all executive office and director positions, of whatever
nature and authority, with the Company and any affiliate or subsidiary of the
Company and a termination of all other authorities to execute documents and to
bind the Company and its affiliates and subsidiaries.

 

4. Protection of
Confidential Information; Non-Competition.

 

4.1. Executive
acknowledges that:

 

(1) As a result of
his current employment with the Company, Executive will obtain secret and
confidential information concerning the business of the Company and its
subsidiaries and affiliates (referred to collectively in this Article 4 as the “Company”),
including, without limitations, financial information, designs and other
proprietary rights, trade secrets and “know-how,” customers and sources (“Confidential
Information”).

 

(2) The Company
will suffer substantial damage which will be difficult to compute if, during
the period of his employment with the Company or thereafter, Executive should
enter a business competitive with the Company or divulge Confidential
Information.

 

(3) The provisions
of this Agreement are reasonable and necessary for the protection of the
business of the Company.

 

4.2. Executive
agrees that he will not at any time, either during the term of this Agreement
or thereafter, divulge to any person or entity any Confidential Information
obtained or learned by him as a result of his employment with the Company,
except (i) in the course of performing his duties hereunder, (ii) to the extent
that any such information is in the public domain other than as a result of
Executive’s breach of any of his obligations hereunder, (iii) where required to
be disclosed by court order, subpoena or other government process or (iv) if
such disclosure is made without Executive’s knowing intent to cause material
harm to the Company. If Executive shall be required to make disclosure pursuant
to the provisions of clause (iii) of the preceding sentence, Executive
promptly, but in no event more than 72 hours after learning of such subpoena,
court order, or other government process, shall notify, by personal delivery or
by electronic means, confirmed by mail, the Company and, at the Company’s
expense, Executive shall: (a) take reasonably necessary and lawful steps
required by the Company to defend against the enforcement of such subpoena,
court order or other government process, and (b) permit the Company to
intervene and participate with counsel of its choice in any proceeding relating
to the enforcement thereof.

 

4.3. Upon
termination of his employment with the Company, Executive will promptly deliver
to the Company all memoranda, notes, records, reports, manuals, drawings,
blue-prints and other documents (and all copies thereof) relating to the
business of the Company and all property associated therewith, which he may
then possess or have under his control; provided, however, that the Executive
shall be entitled to retain one copy of such documents for his personal use and
records.

 

4.4. During the period
commencing with the start date of employment under this agreement and
terminating three years after termination of employment: (A) Executive, without
the prior written permission of the Company, shall not, anywhere in the People’s
Republic of China, Hong Kong SAR and Taiwan, (i) enter into the employ of or
render any services to any person, firm or corporation engaged in any business
which is directly in competition with the Company’s principal existing business
at the time of termination (“Competitive Business”); (ii) engage in any
Competitive Business as an individual, partner, shareholder, creditor, 

 

 

5

 

director, officer,
principal, agent, employee, trustee consultant, advisor or in any other
relationship or capacity; (iv) employ, or have or cause any other person or
entity to employ, any person who was employed by the Company at the time of
termination of Executive’s employment by the Company (other than Executive’s
personal secretary and assistant); or (v) solicit, interfere with, or endeavor
to entice away from the Company, for the benefit of a Competitive Business, any
of its customers. Notwithstanding the foregoing, Executive shall not be
precluded from investing and managing the investment of, his or his family’s
assets in the securities of any corporation or other business entity which is
engaged in a Competitive Business if such securities are traded on a national
stock exchange or in the over-the-counter market and if such investment does
not result in his beneficially owning, at any time, more than 5% of any class
of the publicly-traded equity securities of such Competitive Business;
provided, however, that for a period commencing with the start date of
employment under this agreement and terminating three years after termination
of Executive’s employment (except for investments in a class of securities
trading on public markets), Executive shall refer to the Company for
consideration (before any other party) any and all opportunities to acquire or
purchase, or otherwise make equity or debt investments in, companies primarily
involved in a Competitive Business if such opportunities becomes known to Executive
while he is the Chief Executive Officer of the Company. If the Company determines
not to exploit any opportunity referred to in the foregoing sentence, the
Company shall determine what, if anything, should be done with such
opportunity. Executive shall not be entitled to any compensation, as a finder
or otherwise, if either the Company or Executive introduces such opportunity to
other persons, it being understood that all such compensation shall be paid to
the Company. Notwithstanding the foregoing, in the event the Company terminates
this Agreement without “cause” or if Executive terminates this Agreement for
Good Reason under Section 3.5 hereof, Executive’s obligations under this
Section 4.4 shall terminate one month following termination.

 

4.5. If Executive
commits a breach of any of the provisions of

Sections 4.2 or
4.4, the Company shall have the right:

 

(1) to have the
provisions of this Agreement specifically enforced by any court having equity
jurisdiction, it being acknowledged and agreed by Executive that the services
being rendered hereunder to the Company are of a special, unique and
extraordinary character and that any breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an
adequate remedy to the Company; and

 

(2) to require
Executive to account for and pay over to the Company all monetary damages
determined by a non-appealable decision by a court of law to have been suffered
by the Company as the result of any actions constituting a breach of any of the
provisions of Section 4.2 or 4.4, and Executive hereby agrees to account for
and pay over such damages to the Company (up to the maximum of all payments
made under the Agreement).

 

4.6. If Executive
shall violate any covenant contained in Section 4.4, the duration of such
covenant so violated shall be automatically extended for a period of time equal
to the period of such violation.

 

4.7. If any
provision of Sections 4.2 or 4.4 is held to be unenforceable because of the
scope, duration or area of its applicability, the tribunal making such
determination shall not have the power to modify such scope, duration, or area,
or all of them and such provision or provisions shall be void ab initio.

 

 

6

 

5. Miscellaneous
Provisions.

 

5.1. All notices
provided for in this Agreement shall be in writing, and shall be deemed to have
been duly given when delivered personally to the party to receive the same,
when transmitted by electronic means, or when mailed first class postage
prepared, by certified mail, return receipt requested, addressed to the party
to receive the same at his or its address set forth below, or such other
address as the party to receive the same shall have specified by written notice
given in the manner provided for in this Section 5.1. All notices shall be deemed
to have been given as of the date of personal delivery, transmittal or mailing
thereof.

 

If to Executive:

 

 

 

 

If to the Company:

 

Yucheng
Technologies Limited

 

 

 

5.2. In the event
of any claims, litigation or other proceedings arising under this Agreement
(including, among others, arbitration under Section 3.4), which are determined
to be non-appealable final decisions, the losing party will pay the expenses,
including reasonable attorneys’ fees and expenses of the other party within
thirty (30) days after delivery to the other of statements for the costs
incurred.

 

5.3. The Company,
to the fullest extent permitted by law, shall indemnify Executive for any
liability, damages, losses, costs and expenses arising out of alleged or actual
claims (collectively,

“Claims”) made
against Executive by third parties for any actions or omissions as an officer
and/or director of the Company or its subsidiaries. To the extent that the
Company obtains director and officers insurance coverage for any period in
which Executive was an officer, director or consultant to the Company,
Executive shall be a named insured and shall be entitled to coverage
thereunder.

 

5.4. The provision
of Article 4, Sections 5.2 and 5.3 and any provisions relating to payments owed
to Executive after termination of employment shall survive termination of this
Agreement for any reason.

 

5.5. This
Agreement sets forth the entire agreement of the parties relating to the
employment of Executive and is intended to supersede all prior negotiations,
understandings and agreements. No provisions of this Agreement may be waived or
changed except by a writing by the party against whom such waiver or change is
sought to be enforced. The failure of any party to require performance of any
provision hereof or thereof shall in no manner affect the right at a later time
to enforce such provision.

 

5.6. All questions
with respect to the construction of this

Agreement, and the
rights and obligations of the parties hereunder, shall be determined in
accordance with the law of the People’s Republic of China applicable to
agreements made and to be performed entirely in the PRC.

 

5.7. This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the Company. This Agreement shall not be assignable by Executive,
but shall inure to the benefit of and be binding upon Executive’s heirs and
legal representatives.

 

 

7

 

 

5.8. Should any
provision of this Agreement become legally unenforceable, no other provision of
this Agreement shall be affected, and this Agreement shall continue as if the
Agreement had been executed absent the unenforceable provision.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first above
written.

 

 

	
  EXECUTIVE

  	
  YUCHENG
  TECHNOLOGIES LIMITED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Hong Wiedong

  	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

8Exhibit 10.19

 

EMPLOYMENT AGREEMENT

 

AGREEMENT, dated as of _____ of _____ 2006
between Zeng Shuo, residing at ____________________________ (“Executive”), and
Yucheng Technologies Limited, a BVI a British Virgin Islands corporation having
its principal office at __________________________ (“Company”)

 

WHEREAS, the
Company believes that Executive provides unique management services for the
Company and wishes to retain the continued services of

Executive as its
Chief Financial Officer; and

 

WHEREAS, the
Company and Executive have reached an understanding with respect to the
extension of Executive’s employment with the Company for a three year period
commencing as of ______________, 2006 and

 

WHEREAS, the
Company and Executive desire to evidence their agreement in writing and to
provide for the employment of Executive by the Company on the terms set forth
herein.

 

IT IS AGREED:

 

1. Employment,
Duties and Acceptance.

 

1.1. Effective as
of __________, 2006 the Company hereby agrees to the continued employment of
Executive as its Chief Financial Officer hereby accepts such continued
employment on the terms and conditions contained in the Agreement. During the
term of this Agreement, the Executive shall make himself available during
regular business hours to the Company to pursue the business of the Company
subject to the supervision and direction of the Board of Directors of the
Company (“Board” or “Board of Directors”).

 

1.2. The Board may
assign the Executive such general management and supervisory responsibilities
and executive duties for the Company as are appropriate and commensurate with
Executive’s position as Chief Financial Officer of the Company (“CFO”) and
would otherwise be consistent in stature and prestige with the responsibilities
of a CFO.

 

1.3. Executive
accepts such employment and agrees to devote substantially all of his business
time, energies and attention to the performance of his duties; provided,
however, that Executive may continue to be actively involved in educational and
civic activities to the extent that such activities do not materially detract
from the reasonable performance of his duties (such material detraction to be
evidenced by a resolution approved by the majority of the Board and a written
notice to Executive, in which event Executive shall have thirty (30) days to
reduce the level of such activities in a reasonable manner). The Company
recognizes the value to it of Executive’s continued involvement in these
activities and will reimburse Executive for reasonable expenses incurred by him
in connection with such activities. Nothing herein shall be construed as
preventing Executive from (i) making and supervising investments on a personal
or family basis (including trusts, funds and investment entities in which
Executive or members of his family have an interest) and (ii) in serving on the
Board of Directors of not more than three corporations involved primarily in “for
profit” business activities; provided, however, that these activities do not
materially interfere with the performance of his duties hereunder or violate
the provisions of Section 4.4 hereof.

 

 

 

 

2. Compensation
and Benefits.

 

2.1 The Company
shall pay to Executive a salary at an annual base rate of not less than $50,000
for the term hereof. During the Executive’s employment salary will be paid not
less frequently than every two weeks without the prior written consent of
Executive. Executive’s annual base rate will be reviewed one month prior to the
commencement of the third year for purposes of determining what the new base
salary will be.

 

2.2. The Company
shall also pay to Executive such bonuses as may be determined from time to time
by the Compensation Committee of the Board of Directors. The amount of annual
bonus payable to Executive may vary at the discretion of the Compensation
Committee of the Board of Directors; provided, however, that the total cash bonus
shall not exceed 100% of Executive’s annual base rate under Section 2.1 as of
the date the bonus is awarded.  Executive
will be entitled to earn an equity bonus to be awarded under the Stock Option
Plan.  In determining the annual bonus to
be paid to the Executive, the Compensation Committee may, among other factors
they believe to be appropriate, consider, and give varying degrees of
importance to, the Executive’s contribution to the following:

 

(1) growth in the
Company’s per share value;

(2) achievement by
the Company of specific identified targets selected by the Committee from time
to time;

(3) the attraction
and retention of key executive personnel by the Company;

(4) satisfaction
of the Company’s capital requirements;

(5) the
establishment of strategic direction and significant Company goals; and

(6) Such other
criteria as the Compensation Committee deems to be relevant.

 

2.3. Executive
shall be entitled to such insurance and other benefits including, among others,
medical and disability coverage and life insurance as are afforded to other
senior executives of the Company, subject to applicable waiting periods and
other conditions which may be generally applicable. The Company also shall
purchase if possible (i) long term disability insurance of not less than 50% of
Executive’s then current annual salary and (ii) split dollar life insurance
with coverage of not less than $1.0 million. The beneficiary of these policies
shall be designated by Executive and these policies shall be transferred to
Executive or his designees by the Company at his written request.

 

2.4. Executive
shall be entitled to four weeks of vacation in each calendar year and to a
reasonable number of other days off for religious and personal reasons.

 

2.5. Executive
shall be entitled, at his option, to maintain a suitable automobile for
business use. The Company shall reimburse Executive for the costs of leasing
such automobile and for all other costs associated with the use of the vehicle,
including insurance costs, repairs and maintenance.

 

2.6. The Company
will pay or reimburse executive for all transportation, hotel and other
expenses incurred by Executive on business trips (including business air travel
on scheduled flights of more than 5) consecutive hours) and for all other
ordinary and reasonable out-of-pocket expenses actually incurred by him in the
conduct of the business of the Company against itemized vouchers submitted with
respect to any such expenses.

 

2.7. Executive
agrees that his services shall be rendered primarily at the Company’s executive
offices which shall be located in, or within thirty (30) miles of, the Company’s
current executive offices located in ______________________. If the Company
moves its offices more than 

 

 

 

2

 

thirty(30) miles
of the aforementioned location, the Company will reimburse Executive for the
following, which may be taxable to Executive:

 

(1) Usual and
customary expenses incurred if Executive sells his home himself or through a
broker; however, reimbursement for the broker’s commission (if Executive
utilizes the services of a broker) may not exceed six (6) percent of the sales
proceeds;

 

(2) Reasonable
expenses incurred in moving furniture, normal household goods and personal
belongings to the new location and incidental expenses related to the move;

 

(3) Reasonable
expenses (including travel and hotel) while house-hunting, including four trips
to the new location with Executive’s spouse and children;

 

(4) Reasonable and
customary closing costs incurred in buying Executive’s new home; and

 

(5) Reasonable
temporary living expenses incurred while awaiting occupancy in Executive’s new
quarters.

 

3. Term and
Termination.

 

3.1. The term of
this Agreement commences as of ____

2006 and shall
continue until _____ 2009 unless sooner terminated as herein provided.

 

3.2. If Executive
dies during the term of this Agreement, this Agreement shall thereupon terminate,
except that the Company shall pay to the legal representative of Executive’s
estate the base salary due Executive pursuant to Section 2.1 hereof through the
first anniversary of Executive’s death (or the scheduled expiration under
Section 3.1, if earlier than the first anniversary date) as well as a pro rata
allocation of bonus payments under Section 2.2 based on the days of service
during the year of death, and all amounts owing to Executive at the time of
termination, including for previously accrued but unpaid bonuses, expense
reimbursements and accrued but unused vacation pay.

 

3.3. If Executive
shall be rendered incapable by an incapacitating illness or disability (either
physical or mental) of complying with the terms, provisions and conditions hereof
on his part to be performed for a period in excess of 180 consecutive days
during any consecutive twelve (12) month period, then the Company, at its
option, may terminate this Agreement by written notice to Executive (the “Disability
Notice”) delivered prior to the date Executive resumes the rendering of
services hereunder; provided, however, if requested by Executive (or a
representative thereof) such termination shall not occur until after
examination of Executive by a medical doctor (retained by the Company with the
consent of the Executive which consent shall not be unreasonably withheld) who
certifies in a written report to the Board with a copy of such report delivered
simultaneously to Executive that Executive is and shall be incapable of performing
his duties for in excess of two additional months because of the continuing
existence of such incapacitating illness or disability. Notwithstanding such
termination, the Company (a) shall make a payment to Executive of a pro rata
allocation of payments under Section 2.2 based on the days of service during
the year in which the Disability Notice is delivered and (b) shall pay to
Executive the base salary due Executive pursuant to Section 2.1 hereof through
the second anniversary of the date of such notice (the “Disability Period”),
less any amount Executive receives for such period from any Company-sponsored
or Company-paid for source of insurance, disability compensation or
governmental program. The Company

 

 

3

 

shall also pay to
Executive all amounts owing to Executive at the time of termination, including
for previously accrued but unpaid bonuses, expense reimbursements and accrued
but unused vacation pay.

 

3.4. The Company,
by notice to Executive, may terminate this Agreement for cause. As used herein,
“cause” shall include (a) the refusal in bad faith by Executive to carry out
specific written directions of the Board, (b) intentional fraud or dishonest
action by Executive in his relations with the Company (“dishonest” for these
purposes shall mean Executive’s knowingly making of a material misstatement to
the Board for the purpose of obtaining direct personal benefit); or (c) the
conviction of Executive of any crime involving an act of significant moral
turpitude after appeal or the period for appeal has elapsed without an appeal
being filed by Executive. Notwithstanding the foregoing, no “cause” for
termination shall be deemed to exist with respect to Executive’s acts described
in clause (a) or (b) above, unless the Board shall have given written notice to
Executive (after five (5) days advance written notice to Executive and a
reasonable opportunity to Executive to present his views with respect to the
existence of “cause”), specifying the “cause” with particularity and, within five
(5) business days after such notice, Executive shall not have disputed the
Board’s determination or taken action to cure or eliminate prospectively the
problem or thing giving rise to such “cause,” provided, however, that a
repeated breach after notice and cure, of any provision of clause (a) or (b)
above, involving the same or substantially similar actions or conduct, shall be
grounds for termination for cause upon not less than five (5) days additional
notice from the Company.

 

3.5. The
Executive, by notice to the Company, may terminate this Agreement if a “Good
Reason” exists. For purposes of this Agreement, “Good Reason” shall mean the
occurrence of any of the following circumstances without the Executive’s prior
express written consent:

 

(a) a material
adverse change in the nature of Executive’s title, duties or responsibilities
with the Company that represents a demotion from his title, duties or
responsibilities as in effect immediately prior to such change; (b) a material
breach of this Agreement by the Company; (c) a failure by the Company to make
any payment to Executive when due, unless the payment is not material or is
being contested by the Company, in good faith provided it is not the subject of
a proper set off or proper withholding pursuant to applicable law or regulation;
(d) a liquidation, bankruptcy or receivership of the Company.  Notwithstanding the foregoing, no Good Reason
shall be deemed to exist with respect to the Company’s acts described in
clauses (a), (b) or (c) above, unless Executive shall have given written notice
to the Company specifying the Good Reason with reasonable particularity and,
within ten (10) business days after such notice, the Company shall not have
cured or eliminated the problem or thing giving rise to such Good Reason.

 

3.6. In the event
that Executive terminates this Agreement for Good Reason, pursuant to the
provisions of paragraph 3.5, or the Company terminates this Agreement without “Cause,”
as defined in paragraph 3.4, the Company shall pay to Executive (or in the case
of his death, the legal representative of Executive’s estate or such other
person or persons as Executive shall have designated by written notice to the
Company) the sum of $300,000 and benefits through the term of this Agreement.
If Executive’s employment is terminated for Good Reason or without “Cause,”
Executive shall have no duty to mitigate awards paid or payable to him pursuant
to this subsection, and any compensation paid or payable to Executive from
sources other than the Company will not offset or terminate the Company’s
obligation to pay to Executive the full amounts pursuant to this subsection 3.6.

 

 

4

 

 

3.7  Any termination of the employment of the
Executive will be deemed to be a resignation, as of the date of termination, of
the Executive from all executive office and director positions, of whatever
nature and authority, with the Company and any affiliate or subsidiary of the
Company and a termination of all other authorities to execute documents and to
bind the Company and its affiliates and subsidiaries.

 

4. Protection of
Confidential Information; Non-Competition.

 

4.1. Executive
acknowledges that:

 

(1) As a result of
his current employment with the Company, Executive will obtain secret and
confidential information concerning the business of the Company and its
subsidiaries and affiliates (referred to collectively in this Article 4 as the “Company”),
including, without limitations, financial information, designs and other
proprietary rights, trade secrets and “know-how,” customers and sources (“Confidential
Information”).

 

(2) The Company
will suffer substantial damage which will be difficult to compute if, during
the period of his employment with the Company or thereafter, Executive should
enter a business competitive with the Company or divulge Confidential
Information.

 

(3) The provisions
of this Agreement are reasonable and necessary for the protection of the
business of the Company.

 

4.2. Executive agrees
that he will not at any time, either during the term of this Agreement or
thereafter, divulge to any person or entity any Confidential Information
obtained or learned by him as a result of his employment with the Company,
except (i) in the course of performing his duties hereunder, (ii) to the extent
that any such information is in the public domain other than as a result of
Executive’s breach of any of his obligations hereunder, (iii) where required to
be disclosed by court order, subpoena or other government process or (iv) if
such disclosure is made without Executive’s knowing intent to cause material
harm to the Company. If Executive shall be required to make disclosure pursuant
to the provisions of clause (iii) of the preceding sentence, Executive promptly,
but in no event more than 72 hours after learning of such subpoena, court
order, or other government process, shall notify, by personal delivery or by
electronic means, confirmed by mail, the Company and, at the Company’s expense,
Executive shall: (a) take reasonably necessary and lawful steps required by the
Company to defend against the enforcement of such subpoena, court order or
other government process, and (b) permit the Company to intervene and
participate with counsel of its choice in any proceeding relating to the
enforcement thereof.

 

4.3. Upon
termination of his employment with the Company, Executive will promptly deliver
to the Company all memoranda, notes, records, reports, manuals, drawings,
blue-prints and other documents (and all copies thereof) relating to the
business of the Company and all property associated therewith, which he may
then possess or have under his control; provided, however, that the Executive
shall be entitled to retain one copy of such documents for his personal use and
records.

 

4.4. During the period
commencing with the start date of employment under this agreement and
terminating three years after termination of employment: (A) Executive, without
the prior written permission of the Company, shall not, anywhere in the People’s
Republic of China, Hong Kong SAR and Taiwan, (i) enter into the employ of or
render any services to any person, firm or corporation engaged in any business
which is directly in competition with the Company’s principal existing business
at the time of termination (“Competitive Business”); (ii) engage in any
Competitive Business as an individual, partner, shareholder, creditor, 

 

 

5

 

 

director, officer,
principal, agent, employee, trustee consultant, advisor or in any other
relationship or capacity; (iv) employ, or have or cause any other person or
entity to employ, any person who was employed by the Company at the time of
termination of Executive’s employment by the Company (other than Executive’s
personal secretary and assistant); or (v) solicit, interfere with, or endeavor
to entice away from the Company, for the benefit of a Competitive Business, any
of its customers. Notwithstanding the foregoing, Executive shall not be
precluded from investing and managing the investment of, his or his family’s
assets in the securities of any corporation or other business entity which is
engaged in a Competitive Business if such securities are traded on a national
stock exchange or in the over-the-counter market and if such investment does
not result in his beneficially owning, at any time, more than 5% of any class
of the publicly-traded equity securities of such Competitive Business;
provided, however, that for a period commencing with the start date of employment
under this agreement and terminating three years after termination of Executive’s
employment (except for investments in a class of securities trading on public
markets), Executive shall refer to the Company for consideration (before any
other party) any and all opportunities to acquire or purchase, or otherwise
make equity or debt investments in, companies primarily involved in a
Competitive Business if such opportunities becomes known to Executive while he
is the Chief Executive Officer of the Company. If the Company determines not to
exploit any opportunity referred to in the foregoing sentence, the Company
shall determine what, if anything, should be done with such opportunity.
Executive shall not be entitled to any compensation, as a finder or otherwise,
if either the Company or Executive introduces such opportunity to other
persons, it being understood that all such compensation shall be paid to the
Company. Notwithstanding the foregoing, in the event the Company terminates
this Agreement without “cause” or if Executive terminates this Agreement for
Good Reason under Section 3.5 hereof, Executive’s obligations under this
Section 4.4 shall terminate one month following termination.

 

4.5. If Executive
commits a breach of any of the provisions of

Sections 4.2 or
4.4, the Company shall have the right:

 

(1) to have the
provisions of this Agreement specifically enforced by any court having equity
jurisdiction, it being acknowledged and agreed by Executive that the services
being rendered hereunder to the Company are of a special, unique and
extraordinary character and that any breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an
adequate remedy to the Company; and

 

(2) to require
Executive to account for and pay over to the Company all monetary damages
determined by a non-appealable decision by a court of law to have been suffered
by the Company as the result of any actions constituting a breach of any of the
provisions of Section 4.2 or 4.4, and Executive hereby agrees to account for
and pay over such damages to the Company (up to the maximum of all payments
made under the Agreement).

 

4.6. If Executive
shall violate any covenant contained in Section 4.4, the duration of such
covenant so violated shall be automatically extended for a period of time equal
to the period of such violation.

 

4.7. If any
provision of Sections 4.2 or 4.4 is held to be unenforceable because of the
scope, duration or area of its applicability, the tribunal making such determination
shall not have the power to modify such scope, duration, or area, or all of
them and such provision or provisions shall be void ab initio.

 

6

 

5. Miscellaneous
Provisions.

 

5.1. All notices
provided for in this Agreement shall be in writing, and shall be deemed to have
been duly given when delivered personally to the party to receive the same,
when transmitted by electronic means, or when mailed first class postage
prepared, by certified mail, return receipt requested, addressed to the party
to receive the same at his or its address set forth below, or such other
address as the party to receive the same shall have specified by written notice
given in the manner provided for in this Section 5.1. All notices shall be
deemed to have been given as of the date of personal delivery, transmittal or
mailing thereof.

 

If to Executive:

 

 

 

 

If to the Company:

 

Yucheng
Technologies Limited

 

 

 

5.2. In the event
of any claims, litigation or other proceedings arising under this Agreement
(including, among others, arbitration under Section 3.4), which are determined
to be non-appealable final decisions, the losing party will pay the expenses,
including reasonable attorneys’ fees and expenses of the other party within thirty
(30) days after delivery to the other of statements for the costs incurred.

 

5.3. The Company,
to the fullest extent permitted by law, shall indemnify Executive for any
liability, damages, losses, costs and expenses arising out of alleged or actual
claims (collectively,

“Claims”) made
against Executive by third parties for any actions or omissions as an officer
and/or director of the Company or its subsidiaries. To the extent that the
Company obtains director and officers insurance coverage for any period in
which Executive was an officer, director or consultant to the Company,
Executive shall be a named insured and shall be entitled to coverage
thereunder.

 

5.4. The provision
of Article 4, Sections 5.2 and 5.3 and any provisions relating to payments owed
to Executive after termination of employment shall survive termination of this
Agreement for any reason.

 

5.5. This
Agreement sets forth the entire agreement of the parties relating to the
employment of Executive and is intended to supersede all prior negotiations,
understandings and agreements. No provisions of this Agreement may be waived or
changed except by a writing by the party against whom such waiver or change is
sought to be enforced. The failure of any party to require performance of any
provision hereof or thereof shall in no manner affect the right at a later time
to enforce such provision.

 

5.6. All questions
with respect to the construction of this

Agreement, and the
rights and obligations of the parties hereunder, shall be determined in accordance
with the law of the People’s Republic of China applicable to agreements made
and to be performed entirely in the PRC.

 

5.7. This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the Company. This Agreement shall not be assignable by Executive,
but shall inure to the benefit of and be binding upon Executive’s heirs and
legal representatives.

 

7

 

5.8. Should any
provision of this Agreement become legally unenforceable, no other provision of
this Agreement shall be affected, and this Agreement shall continue as if the
Agreement had been executed absent the unenforceable provision.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first above
written.

 

 

	
  EXECUTIVE

  	
  YUCHENG
  TECHNOLOGIES LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Zeng Shuo

  	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]