Document:

Employment Agreement between Sohu.com Inc. and Yu Gong

 Exhibit 10.3 
 EMPLOYMENT AGREEMENT 
 EMPLOYMENT AGREEMENT, effective as of June 1, 2007, by and between Sohu.com
Inc., a Delaware corporation, and Yu Gong, an individual (the “Employee”). 
 1. Definitions. Capitalized terms used herein
and not otherwise defined in the text below will have the meanings ascribed thereto on Annex 1. 
 2. Employment; Duties.

 (a) The Company agrees to employ the Employee in the capacity and with such responsibilities as are generally set forth on Annex 2.

 (b) The Employee hereby agrees to devote his or her full time and best efforts in such capacities as are set forth on Annex 2 on the terms
and conditions set forth herein. Notwithstanding the foregoing, the Employee may engage in other activities, such as activities involving professional, charitable, educational, religious and similar types of organizations, provided that the Employee
complies with the Employee Non-competition, Non-solicitation, Confidential Information and Work Product Agreement attached hereto as Annex 3 (the “Employee Obligations Agreement”) and such other activities do not interfere with or prohibit
the performance of the Employee’s duties under this Agreement, or conflict in any material way with the business of the Company or of its subsidiaries and affiliates. The Employee Obligations Agreement as currently in effect shall continue in
effect on and after the date hereof, provided that the Employee Obligations Agreement is hereby amended effective as of the date hereof by deleting Section 8(b) thereof in its entirety and replacing it with language identical to that of
Section 9 (“Governing Law; Resolution of Disputes”) of this Agreement. 
 (c) The Employee will use best efforts during the
Term to ensure that the Company’s business and those of its subsidiaries and affiliates are conducted in accordance with all applicable laws and regulations of all jurisdictions in which such businesses are conducted. 
 3. Compensation. 
 (a) Base Annual
Income. During the Term, the Company will pay the Employee an annual base salary as set forth on Annex 2, payable monthly pursuant to the Company’s normal payroll practices. 
 (b) Discretionary Bonus. During the Term, the Company, in its sole discretion, may award to the Employee an annual bonus based on the
Employee’s performance and other factors deemed relevant by the Company’s Board of Directors. 
 (c) Stock Options. The
Employee will be eligible to participate in any stock option or other incentive programs available to officers or employees of the Company. 
 (d) Reimbursement of Expenses. The Company will reimburse the Employee for reasonable expenses incurred by the Employee in the course of, and necessary in connection with, the performance by the Employee of his duties to the Company,
provided that such expenses are substantiated in accordance with the Company’s policies. 
 4. Other Employee Benefits.

 (a) Vacation; Sick Leave. The Employee will be entitled to such number of weeks of paid vacation each year as are set forth on Annex
2, the taking of which must be coordinated with the Employee’s supervisor in accordance with the Company’s standard 

  

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vacation policy. Unless otherwise approved by the Company’s Board of Directors, vacation that is not used in a particular year may only be carried
forward to subsequent years in accordance with the Company’s policies in effect from time to time. The Employee will be eligible for sick leave in accordance with the Company’s policies in effect from time to time. 
 (b) Healthcare Plan. The Company will arrange for membership in the Company’s group healthcare plan for the Employee and the Employee’s
spouse, in accordance with the Company’s standard policies from time to time with respect to health insurance and in accordance with the rules established for individual participation in such plan and under applicable law. 
 (c) Life and Disability Insurance. The Company will provide term life and disability insurance payable to the Employee, in each case in an amount
up to a maximum of two times the Employee’s base salary in effect from time to time, provided however, that such amount will be reduced by the amount of any life insurance or death or disability benefit coverage, as applicable, that is provided
to the Employee under any other benefit plans or arrangements of the Company. Such policies will be in accordance with the Company’s standard policies from time to time with respect to such insurance and the rules established for individual
participation in such plans and under applicable law. 
 (d) Other Benefits. Pursuant to the Company’s policies in effect from
time to time and the applicable plan rules, the Employee will be eligible to participate in the other employee benefit plans of general application, which may include, without limitation, housing allowance or reimbursement, in any event, shall
include the benefits at the levels set forth on Annex 2. 
 5. Certain Representations, Warranties and Covenants of the
Employee. 
 (a) Related Company Positions. The Employee agrees that the Employee and members of the Employee’s immediate
family will not have any financial interest directly or indirectly (including through any entity in which the Employee or any member of the Employee’s immediate family has a position or financial interest) in any transactions with the Company
or any subsidiaries or affiliates thereof unless all such transactions, prior to being entered into, have been disclosed to the Board of Directors and approved by a majority of the independent members of the Board of Directors and comply with all
other Company policies and applicable law as may be in effect from time to time. The Employee also agrees that he or she will inform the Board of Directors of the Company of any transactions involving the Company or any of its subsidiaries or
affiliates in which senior officers, including but not limited to the Employee, or their immediate family members have a financial interest. 
 (b) Discounts, Rebates or Commissions. Unless expressly permitted by written policies and procedures of the Company in effect from time to time that may be applicable to the Employee, neither the Employee nor any immediate family
member will be entitled to receive or obtain directly or indirectly any discount, rebate or commission in respect of any sale or purchase of goods or services effected or other business transacted (whether or not by the Employee) by or on behalf of
the Company or any of its subsidiaries or affiliates, and if the Employee or any immediate family member (or any firm or company in which the Employee or any immediate family member is interested) obtains any such discount, rebate or commission, the
Employee will pay to the Company an amount equal to the amount so received (or the proportionate amount received by any such firm or company to the extent of the Employee’s or family member’s interest therein). 
 6. Term; Termination. 
 (a) Unless
sooner terminated pursuant to the provisions of this Section 6, the term of this Agreement (the “Term”) will commence on the date hereof and end on May 31, 2010. 
 (b) Voluntary Termination by the Employee. Notwithstanding anything herein to the contrary, the Employee may 

  

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voluntarily Terminate this Agreement by providing the Company with ninety (90) days’ advance written notice (“Voluntary Termination”), in
which case, the Employee will not be entitled to receive payment of any severance benefits or other amounts by reason of the Termination other than accrued salary and vacation through the date of the Termination. The Employee’s right to all
other benefits will terminate as of the date of Termination, other than any continuation required by applicable law. Without limiting the foregoing, if, in connection with a Change in Control, the surviving entity or successor to Sohu’s
business offers the Employee employment on substantially equivalent terms to those set forth in this Agreement and such offer is not accepted by the Employee, the refusal by the Employee to accept such offer and the subsequent termination of the
Employee’s employment by the Company shall be deemed to be a voluntary termination of employment by the Employee and shall not be treated as a termination by the Company without Cause. 
 (c) Termination by the Company for Cause. Notwithstanding anything herein to the contrary, the Company may Terminate this Agreement for Cause by
written notice to the Employee, effective immediately upon the delivery of such notice. In such case, the Employee will not be entitled to receive payment of any severance benefits or other amounts by reason of the Termination other than accrued
salary and vacation through the date of the Termination. The Employee’s right to all other benefits will terminate, other than any continuation required by applicable law. 
 (d) Termination by the Employee with Good Reason or Termination by the Company without Cause. Notwithstanding anything herein to the contrary, the
Employee may Terminate this Agreement for Good Reason, and the Company may Terminate this Agreement without Cause, in either case upon thirty (30) days’ advance written notice by the party Terminating this Agreement to the other party and
the Termination shall be effective as of the expiration of such thirty (30) day period. If the Employee Terminates with Good Reason or the Company Terminates without Cause, the Employee will be entitled to continue to receive payment of
severance benefits equal to the Employee’s monthly base salary in effect on the date of Termination for the shorter of (i) six (6) months and (ii) the remainder of the Term of this Agreement (the “Severance Period”),
provided that the Employee complies with the Employee Obligations Agreement during the Severance Period and executes a release agreement in the form requested by the Company at the time of such Termination that releases the Company from any and all
claims arising from or related to the employment relationship and/or such Termination. Such payments will be made ratably over the Severance Period according to the Company’s standard payroll schedule. The Employee will also receive payment of
the bonus for the remainder of the year of the Termination, but only to the extent that the bonus would have been earned had the Employee continued in employment through the end of such year, as determined in good faith by the Company’s CEO,
Board of Directors or its Compensation Committee based on the specific corporate and individual performance targets established for such fiscal year, and only to the extent that bonuses are paid for such fiscal year to other similarly situated
employees. Health insurance benefits with the same coverage provided to the Employee prior to the Termination (e.g., medical, dental, optical, mental health) and in all other material respects comparable to those in place immediately prior to the
Termination will be provided at the Company’s expense during the Severance Period. The Company will also continue to carry the Employee on its Directors and Officers insurance policy for six (6) years following the Date of Termination at
the Company’s expense with respect to insurable events which occurred during the Employee’s term as a director or officer of the Company, with such coverage being at least comparable to that in effect immediately prior to the Termination
Date; provided, however, that (i) such terms, conditions and exceptions will not be, in the aggregate, materially less favorable to the Employee than those in effect on the Termination Date and (ii) if the aggregate annual premiums for
such insurance at any time during such period exceed two hundred percent (200%) of the per annum rate of premium currently paid by the Company for such insurance, then the Company will provide the maximum coverage that will then be available at
an annual premium equal to two hundred percent (200%) of such rate. 
 (e) Termination by Reason of Death or Disability. A
Termination of the Employee’s employment by reason of death or Disability shall not be deemed to be a Termination by the Company (for or without Cause) or by the Employee (for or without Good Reason). In the event that the Employee’s
employment with the Company Terminates as a result of the Employee’s death or Disability, the Employee or the Employee’s estate or representative, as applicable, will receive all accrued salary and accrued vacation as of the date of the
Employee’s death or Disability and any other benefits payable under the Company’s then 

  

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existing benefit plans and policies in accordance with such plans and policies in effect on the date of death or Disability and in accordance with applicable
law. In addition, the Employee or the Employee’s estate or representative, as applicable, will receive the bonus for the year in which the death or Disability occurs to the extent that a bonus would have been earned had the Employee continued
in employment through the end of such year, as determined in good faith by the Company’s CEO, Board of Directors or its Compensation Committee based on the specific corporate and individual performance targets established for such fiscal year,
and only to the extent that bonuses are paid for such fiscal year to other similarly situated employees. 
 (f) Misconduct After
Termination of Employment. Notwithstanding the foregoing or anything herein the contrary, if the Employee after the termination of his or her employment violates or fails to fully comply with the Employee Obligations Agreement, thereafter
(1) the Employee shall not be entitled to any payments from the Company, (2) any insurance or other benefits that have continued shall terminate immediately, (3) the Employee shall promptly reimburse to the Company all amounts that
have been paid to the Employee pursuant to this Section 6; and (4) if the Employee would not, in the absence of such violation or failure to comply, have been entitled to severance payments from the Company equal to at least six
(6) months’ base salary, pay to the Company an amount equal to the difference between six (6) months’ base salary and the amount of severance pay measured by base salary reimbursed to the Company by the Employee pursuant to
clause 3 of this sentence. 
 7. Option-Related Provisions. 
 (a) Termination by the Company Without Cause after a Change in Control. If Company Terminates this Agreement without Cause within twelve
(12) months following a Change in Control, the vesting and exercisability of each of the Employee’s outstanding stock options or other stock-based incentive awards (“Awards”) will accelerate such that the Award will become fully
vested and exercisable upon the effectiveness of the Termination, and any repurchase right of the Company with respect to shares of stock issued upon exercise of the Award will completely lapse, in each case subject to paragraph (c) below
(“Forfeiture of Options for Misconduct”). 
 (b) Termination other than by the Company Without Cause after a Change in
Control. If the Employee’s employment with the Company Terminates for any reason, unless the Company Terminates this Agreement without Cause within twelve (12) months following a Change in Control, the vesting and exercisability of
each of the Employee’s outstanding Awards shall cease upon the effectiveness of the Termination, such that any unvested Award shall be cancelled. 
 (c) Forfeiture of Options for Misconduct. If the Employee fails to comply with the terms of this Agreement, the Employee Obligations Agreement, or the written policies and procedures of the Company, as the same
may be amended from time to time, or acts against the specific instructions of the Board of Directors of the Company or if this Agreement is terminated by the Company for Cause (each a “Penalty Breach”), the Employee will forfeit
any Awards that have been granted to him or her or to which the Employee may be entitled, whether the same are then vested or not, and the same shall thereafter not be exercisable at all, and all shares of common stock of the Company, if any,
purchased by the Employee pursuant to the exercise of Awards and still then owned by the Employee may be repurchased by the Company, at its sole discretion, at the price paid by the Employee for such shares of common stock. The terms of all
outstanding option grants are hereby amended to conform with this provision. 
 8. Employee Obligations Agreement. By signing this
Agreement, the Employee hereby agrees to execute and deliver to the Company the Employee Obligations Agreement, and such execution and delivery shall be a condition to the Employee’s entitlement to his or her rights under this Agreement.

 9. Governing Law; Resolution of Disputes. This Agreement will be governed by and construed and enforced in accordance with the laws
of the State of New York if the Employee is not a citizen of the People’s Republic of China (the “PRC”), and in accordance with the laws of the PRC if the Employee is a citizen of the PRC, in each case exclusive of such
jurisdiction’s principles of conflicts 

  

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of law. If, under the applicable law, any portion of this Agreement is at any time deemed to be in conflict with any applicable statute, rule, regulation or
ordinance, such portion will be deemed to be modified or altered to conform thereto or, if that is not possible, to be omitted from this Agreement; the invalidity of any such portion will not affect the force, effect and validity of the remaining
portion hereof. Each of the parties hereto irrevocably (i) agrees that any dispute or controversy arising out of, relating to, or concerning any interpretation, construction, performance or breach of this Agreement, shall be settled by
arbitration to be held in Hong Kong under the UNCITRAL Arbitration Rules in accordance with the HKIAC Procedures for the Administration of International Arbitration in force at the date of this Agreement (the “Arbitration Rules”),
(ii) waives, to the fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying of venue of any such arbitration, and (iii) submits to the exclusive jurisdiction of Hong Kong in any such
arbitration. There shall be one arbitrator, selected in accordance with the Arbitration Rules. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s
decision in any court having jurisdiction. The parties to the arbitration shall each pay an equal share of the costs and expenses of such arbitration, and each party shall separately pay for its respective counsel fees and expenses; provided,
however, that the prevailing party in any such arbitration shall be entitled to recover from the non-prevailing party its reasonable costs and attorney fees. 
 10. Notices. All notices, requests and other communications under this Agreement will be in writing (including facsimile or similar writing and express mail or courier delivery or in person delivery, but
excluding ordinary mail delivery) and will be given to the address stated below: 
  

	 	(a)	if to the Employee, to the address or facsimile number that is on file with the Company from time to time, as may be updated by the Employee; 

  

	 	(b)	if to the Company: 

 Sohu.com Inc. 
 Level 12, Sohu.com Internet Plaza 
 No. 1
Unit Zhongguancun East Road, Haidian District 
 Beijing 100084 
 People’s Republic of China 
 Attention: Charles Zhang 
                  Chairman and Chief Executive Officer 
 fax: (86-10) 6272-6666 
 with a copy to:

 Goulston & Storrs 
 400 Atlantic Avenue 
 Boston, MA 02110 
 Attention: Timothy B. Bancroft 
 fax: (617) 574-7568 
 or to such other address or facsimile number as either party may hereafter specify for the purpose by written notice to the other party in the manner provided in this
Section 10. All such notices, requests and other communications will be deemed received: (i) if 

  

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given by facsimile transmission, when transmitted to the facsimile number specified in this Section 10 if confirmation of receipt is received;
(ii) if given by express mail or courier delivery, five (5) days after sent; and (iii) if given in person, when delivered. 
 11. Miscellaneous. 
 (a) Entire Agreement. This Agreement constitutes the entire understanding between the Company and
the Employee relating to the subject matter hereof and supersedes and cancels all prior and contemporaneous written and oral agreements and understandings with respect to the subject matter of this Agreement. No agreements or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. 
 (b) Modification; Waiver. No provision of this Agreement may be modified, waived or discharged unless modification, waiver or discharge is agreed to in writing signed by the Employee and such officer of the
Company as may be specifically designated by its Board of Directors. No waiver by either party at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by such other party will
be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
 (c) Successors;
Binding Agreement. This Agreement will be binding upon and will inure to the benefit of the Employee, the Employee’s heirs, executors, administrators and beneficiaries, and the Company and its successors (whether direct or indirect, by
purchase, merger, consolidation or otherwise), subject to the terms and conditions set forth herein. 
 (d) Withholding Taxes. All
amounts payable to the Employee under this Agreement will be subject to applicable withholding of income, wage and other taxes to the extent required by applicable law. 
 (e) Validity. The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in
full force and effect. 
 (f) Language. This Agreement is written in the English language only. The English language also will be the
controlling language for all future communications between the parties hereto concerning this Agreement. 
 (g) Counterparts. This
Agreement may be signed in any number of counterparts, each of which will be deemed an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on June 5, 2007 as of the year
and day first above written. 
  

									
	Signature of Employee:	 		 	Sohu.com Inc.
				
	  
	 		 	By:	 	  

	Printed name of employee:	 		 	Name:	 	Charles Zhang
	Yu Gong	 		 	Title:	 	Chief Executive Officer

  

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 Annex 1 
 Certain
Definitions 
 “Cause” means: 
  

	 	(i)	willful misconduct or gross negligence by the Employee, or any willful or grossly negligent omission to perform any act, resulting in injury to the Company or any subsidiaries or
affiliates thereof; 

  

	 	(ii)	misconduct or negligence of the Employee that results in gain or personal enrichment of the Employee to the detriment of the Company or any subsidiaries or affiliates thereof;

  

	 	(iii)	breach of any of the Employee’s agreements with the Company, including those set forth herein and in the Employee Obligations Agreement, and including, but not limited to, the
repeated failure to perform substantially the Employee’s duties to the Company or any subsidiaries or affiliates thereof, excessive absenteeism or dishonesty; 

  

	 	(iv)	any attempt by the Employee to assign or delegate this Agreement or any of the rights, duties, responsibilities, privileges or obligations hereunder without the prior consent of the
Company (except in respect of any delegation by the Employee of his employment duties hereunder to other employees of the Company in accordance with its usual business practice); 

  

	 	(v)	the Employee’s indictment or conviction for, or confession of, a felony or any crime involving moral turpitude under the laws of the United States or any State thereof, or
under the laws of China, or Hong Kong; 

  

	 	(vi)	declaration by a court that the Employee is insane or incompetent to manage his business affairs; 

  

	 	(vii)	habitual drug or alcohol abuse which materially impairs the Employee’s ability to perform his duties; or 

  

	 	(viii)	filing of any petition or other proceeding seeking to find the Employee bankrupt or insolvent. 

 “Change in Control” means the occurrence of any of the following events: 
  

	 	(i)	any person (within the meaning of Section 13(d) or Section 14(d)(2) of the Securities Exchange Act of 1934) other than the Company, any trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company, becomes the direct or
beneficial owner of securities representing fifty percent (50%) or more of the combined voting power of the Company’s then-outstanding securities; 

  

	 	(ii)	during any period of two (2) consecutive years after the date of this Agreement, individuals who at the beginning of such period constitute the Board of Directors of the
Company, and all new directors (other than directors designated by a person who has entered into an agreement with the Company to effect a transaction described in (i), (iii), or (iv) of this definition) whose election or nomination to the
Board was approved by a vote of at least two-thirds of the directors then in office, cease for any reason to constitute at least a majority of the members of the Board; 

  

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	 	(iii)	the effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting
securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; 

  

	 	(iv)	the complete liquidation of the Company or the sale or disposition by the Company of all or substantially all of the Company’s assets; or 

  

	 	(v)	there occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on
any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement. 

 “Company” means Sohu.com Inc and, unless the context suggests to the contrary, all of its subsidiaries and related companies. 
 “Disability” means the Employee becomes physically or mentally impaired to an extent which renders him or her unable to perform the essential functions of his or her job, with or without reasonable
accommodation, for a period of six consecutive months, or an aggregate of nine months in any two year period. 
 “Good Reason” means the occurrence
of any of the following events without the Employee’s express written consent, provided that the Employee has given notice to the Company of such event and the Company has not remedied the problem within fifteen (15) days: 
  

	 	(i)	any significant change in the duties and responsibilities of the Employee inconsistent in any material and adverse respect with the Employee’s title and position (including
status, officer positions and reporting requirements), authority, duties or responsibilities as contemplated by Annex 2 to this Agreement. For the purposes of this Agreement, because of the evolving nature of the Employer’s business, the
Company’s changing of Employee’s reporting relationships and department(s) will not be considered a significant change in duties and responsibilities; 

  

	 	(ii)	any material breach by the Company of this Agreement, including without limitation any reduction of the Employee’s base salary or the Company’s failure to pay to the
Employee any portion of the Employee’s compensation; or 

  

	 	(iii)	the failure, in the event of a Change in Control in which the Company is not the surviving entity, of the surviving entity or the successor to the Company’s business to assume
this Agreement pursuant to its terms or to offer the Employee employment on substantially equivalent terms to those set forth in this Agreement. 

 “Termination” (and any similar, capitalized use of the term, such as “Terminate”) means, according to the context, the termination of this Agreement or the Employee’s ceasing to render employment services.

  

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 Annex 2 
 Particular Terms of Employee’s Employment 
  

							
	 Title(s):      Chief Operating Officer
	  	
				
	Reporting Requirement:	  		  	The Employee will report to the Company’s Board of Directors and to the Company’s Chief Executive Officer.	  	
		
	Responsibilities:	  	Such duties and responsibilities as are ordinarily associated with the Employee’s title(s) in a United States publicly-traded corporation and such other duties as may be
specified by the Board of Directors from time to time.
			
	Base Salary:	  	$150,000 per year	  	

 # of Weeks of Paid Vacation per Year:    Three (3) 
 Other Benefits: 
 Annual housing allowance or reimbursement after tax of U.S.
$25,000 per year. 
 Health, life and disability insurance as per company policy. 
 Bonus (50% of annual base pay will be the Employee’s target bonus, based on the senior management bonus plan in effect from time to time) as specifically approved each year. 
  

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 Annex 3 
 FORM OF
EMPLOYEE NON-COMPETITION, NON-SOLICITATION, CONFIDENTIAL INFORMATION AND WORK PRODUCT AGREEMENT 
 In consideration of my employment and the
compensation paid to me by Sohu.com Inc., a Delaware corporation, or a subsidiary or other affiliate or related company thereof (Sohu.com Inc. or any such subsidiary or related company or other affiliate referred to herein individually and
collectively as “SOHU”), and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, I agree as follows: 
 1. Non-Competition. During my employment with SOHU and continuing after the termination of my employment for the longer of (i) one year after the termination of my employment with SOHU for any reason and
(ii) such period of time as SOHU is paying to me any severance benefits, (the “Noncompete Period”), I will not, on my own behalf, or as owner, manager, stockholder (other than as stockholder of less than 2% of the outstanding stock of
a company that is publicly traded or listed on a stock exchange), consultant, director, officer or employee of or in any other manner connected with any business entity, participate or be involved in any Competitor without the prior written
authorization of SOHU. “Competitor” means any business of the type and character of business in which SOHU engages or proposes to engage and may include, without limitation, an individual, company, enterprise, partnership enterprise,
government office, committee, social organization or other organization that, in any event, produces, distributes or provides the same or substantially similar kind of product or service as SOHU. On the date of this Employee Non-competition,
Non-solicitation, Confidential Information and Work Product Agreement (this “Agreement”), “Competitor” includes without limitation: Sina.com, Yahoo Inc., Tom.com, Netease.com Inc., Linktone, Ebay, QQ (Tencent), Shanda, The 9,
Baidu.com, Google.com, Ctrip, Elong, JOYO and Dang Dang. 
 2. Nonsolicitation. During the Noncompete Period, I will not, either for
my own account or for the account of any other person: (i) solicit, induce, attempt to hire, or hire any employee or contractor of SOHU or any other person who may have been employed or engaged by SOHU during the term of my employment with SOHU
unless that person has not worked with SOHU within the six months following my last day of employment with SOHU; (ii) solicit business or relationship in competition with SOHU from any of SOHU’s customers, suppliers or partners or any
other entity with which SOHU does business; (iii) assist in such hiring or solicitation by any other person or business entity or encourage any such employee to terminate his or her employment with SOHU; or (iv) encourage any such
customer, supplier or partner or any other entity to terminate its relationship with SOHU. 
 3. Confidential Information. 

(a) While employed by SOHU and indefinitely thereafter, I will not, directly or indirectly, use any Confidential Information (as hereinafter defined)
other than pursuant to my employment by and for the benefit of SOHU, or disclose any such Confidential Information to anyone outside of SOHU or to anyone within SOHU who has not been authorized to receive such information, except as directed in
writing by an authorized representative of SOHU. 
 (b) “Confidential Information” means all trade secrets, proprietary
information, and other data and information, in any form, belonging to SOHU or any of their respective clients, customers, consultants, licensees or affiliates that is held in confidence by SOHU. Confidential Information includes, but is not limited
to computer software, the structure of SOHU’s online directories and search engines, business plans and arrangements, customer lists, marketing materials, financial information, research, and any other information identified or treated as
confidential by SOHU or any of their respective clients, customer, consultants, licensees or affiliates. Notwithstanding the foregoing, Confidential Information does not include information which SOHU has voluntarily disclosed to the public without
restriction, or which is otherwise known to the public at large. 
  

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 4. Rights in Work Product. 
 (a) I agree that all Work Product (as hereinafter defined) will be the sole property of SOHU. I agree that all Work Product that constitutes original
works of authorship protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act and, therefore, the property of SOHU. I agree to waive, and hereby waive and irrevocably and exclusively
assign to SOHU, all right, title and interest I may have in or to any other Work Product and, to the extent that such rights may not be waived or assigned, I agree not to assert such rights against SOHU or its licensees (and sublicensees),
successors or assigns. 
 (b) I agree to promptly disclose all Work Product to the appropriate individuals in SOHU as such Work Product is
created in accordance with the requirements of my job and as directed by SOHU. 
 (c) “Work Product” means any and all inventions,
improvements, developments, concepts, ideas, expressions, processes, prototypes, plans, drawings, designs, models, formulations, specifications, methods, techniques, shop-practices, discoveries, innovations, creations, technologies, formulas,
algorithms, data, computer databases, reports, laboratory notebooks, papers, writings, photographs, source and object codes, software programs, other works of authorship, and know-how and show-how, or parts thereof conceived, developed, or otherwise
made by me alone or jointly with others (i) during the period of my employment with SOHU or (ii) during the six month period next succeeding the termination of my employment with SOHU if the same in any way relates to the present or
proposed products, programs or services of SOHU or to tasks assigned to me during the course of my employment, whether or not patentable or subject to copyright or trademark protection, whether or not reduced to tangible form or reduced to practice,
whether or not made during my regular working hours, and whether or not made on SOHU premises. 
 5. Employee’s Prior
Obligations. I hereby certify I have no continuing obligation to any previous employer or other person or entity which requires me not to disclose any information to SOHU. 
 6. Employee’s Obligation to Cooperate. At any time during my employment with SOHU and thereafter upon the request or SOHU, I will execute all
documents and perform all lawful acts that SOHU considers necessary or advisable to secure its rights hereunder and to carry out the intent of this Agreement. Without limiting the generality of the foregoing, I agree to render to SOHU or its nominee
all reasonable assistance as may be required: 
  

	 	(a)	In the prosecution or applications for letters patent, foreign and domestic, or re-issues, extensions and continuations thereof; 

  

	 	(b)	In the prosecution or defense of interferences which may be declared involving any of said applications or patents; 

  

	 	(c)	In any administrative proceeding or litigation in which SOHU may be involved relating to any Work Product; and 

  

	 	(d)	In the execution of documents and the taking of all other lawful acts which SOHU considers necessary or advisable in creating and protecting its copyright, patent, trademark, trade
secret and other proprietary rights in any Work Product. 

 The reasonable out-of-pocket expenses incurred by me in rendering such assistance
at the request of SOHU will be reimbursed by SOHU. If I am no longer an employee of SOHU at the time I render such assistance, SOHU will pay me a reasonable fee for my time. 
  

 -12- 

 7. Termination; Return of SOHU Property. Upon the termination of my employment with SOHU for any
reason, or at any time upon SOHU’s request, I will return to SOHU all Work Product and Confidential Information and notes, memoranda, records, customer lists, proposals, business plans and other documents, computer software, materials, tools,
equipment and other property in my possession or under my control, relating to any work done for SOHU, or otherwise belonging to SOHU, it being acknowledged that all such items are the sole property of SOHU. Further, before obtaining my final
paycheck, I agree to sign a certificate stating the following: 
 “Termination Certificate 
 This is to certify that I do not have in my possession or custody, nor have I failed to return, any Work Product (as defined in the Employee
Non-competition, Non-solicitation, Confidential Information and Work Product Agreement between me and Sohu.com Inc. (“SOHU”)) or any notes, memoranda, records, customer lists, proposals, business plans or other documents or any computer
software, materials, tools, equipment or other property (or copies of any of the foregoing) belonging to SOHU.” 
 8. General
Provisions. 
 (a) This Agreement contains the entire agreement between me and SOHU with respect to the subject matter hereof and
supersedes all prior and contemporaneous agreements and understandings related to the subject matter hereof, whether written or oral. This Agreement may not be modified except by written agreement signed by SOHU and me. 
 (b) This Agreement will be governed by and construed and enforced in accordance with, the laws of the State of Delaware, U.S.A. if the dispute is
resolved therein, and in accordance with the laws of the People’s Republic of China (“China”) if the dispute is resolved therein or in any other jurisdiction other than the State of Delaware, in either case without giving effect to
the conflicts of laws rules of such jurisdiction. I consent to jurisdiction and venue in any court in the State of Delaware or any other country having jurisdiction over me for the purposes of any action relating to or arising out of this Agreement
or any breach or alleged breach thereof, and to service of process in any such action by certified or registered mail, return receipt requested. Without limiting the foregoing, I specifically consent to jurisdiction and venue in any court in China
for the purposes of any action relating to or arising out of this Agreement or any breach or alleged breach thereof that occurs in whole or in part in China. 
 (c) In the event that any provision of this Agreement will be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time, over too large a
geographic area, over too great a range of activities, it will be interpreted to extend only over the maximum period of time, geographic area or range of activities as to which it may be enforceable. 
 (d) If, after application of paragraph (c) above, any provision of this Agreement will be determined to be invalid, illegal or otherwise
unenforceable by any court of competent jurisdiction, the validity, legality and enforceability of the other provisions of this Agreement will not be affected thereby. Any invalid, illegal or unenforceable provision of this Agreement will be
severed, and after any such severance, all other provisions hereof will remain in full force and effect. 
 (e) SOHU and I agree that either
of us may waive or fail to enforce violations of any part of this Agreement without waiving the right in the future to insist on strict compliance with all or parts of this Agreement. 
 (f) My obligations under this Agreement will survive the termination of my employment with SOHU regardless of the manner of or reasons for such
termination, and regardless of whether such termination constitutes a breach of any other agreement I may have with SOHU. My obligations under this Agreement will be binding upon my heirs, executors and administrators, and the provisions of this
Agreement will inure to the benefit of the successors and assigns of SOHU. 
  

 -13- 

 (g) I agree and acknowledge that the rights and obligations set forth in this Agreement are of a unique
and special nature and necessary to ensure the preservation, protection and continuity of SOHU’s business, employees, Confidential Information, and intellectual property rights. Accordingly, SOHU is without an adequate legal remedy in the event
of my violation of any of the covenants set forth in this Agreement. I agree, therefore, that, in addition to all other rights and remedies, at law or in equity or otherwise, that may be available to SOHU, each of the covenants made by me under this
Agreement shall be enforceable by injunction, specific performance or other equitable relief, without any requirement that SOHU have to post a bond or that SOHU have to prove any damages. 
  

 -14- 

 IN WITNESS WHEREOF, the undersigned employee and SOHU have executed this Employee Non-competition,
Non-solicitation, Confidential Information and Work Product Agreement. 
 Effective as of June 1, 2007 and dated June 5, 2007. 
  

									
	Signature of Employee:	 		 	Sohu.com Inc.
				
	  
	 		 	By:	 	  

	Printed name of employee:	 		 	Name:	 	Charles Zhang
	Yu Gong	 		 	Title:	 	Chief Executive Officer

  

 -15-Reservation of Rights and Loan Continuation Standstill Agreement

 Exhibit 10.1 
 August 1, 2007 
 Quatech, Inc. 
 5675 Hudson
Industrial Parkway 
 Hudson, Ohio 44236-5012 
 Attention: Steven
D. Runkel, President 
  

	Re:	Reservation of Rights Letter and Loan Continuation Standstill Agreement 

 Dear Mr. Runkel: 
 Reference is made to a Credit Agreement dated July 28, 2000, as amended by a certain First Amendment to
Credit Agreement dated as of March 25, 2002, a Second Amendment to Credit Agreement dated as of September 4, 2002, a Third Amendment to Credit Agreement dated November 25, 2003, a Fourth Amendment to Credit Agreement dated
July 21, 2005 and a Fifth Amendment to Credit Agreement dated on or about February 2006 (as amended, the “Credit Agreement”) by and among Quatech, Inc. (fka WR Acquisitions, Inc.) (the “Borrower”), each of the
Guarantors specifically, Steven D. Runkel and William J. Roberts (as defined in the Credit Agreement) and National City Bank (“Bank”). Borrower additionally has certain commercial credit card accounts with Bank. Capitalized terms
used but not otherwise defined in this letter, shall have the meanings given such terms in the Credit Agreement. All the foregoing, all other evidence of Debt owing from Borrower to Bank, all security agreements and Related Writings and any
amendments and supplements, collectively referred to as the “Quatech Loan Documents”. 
 The Revolving Note and Term Note C
mature respectively August 1 and August 5, 2007 (“Maturity”). Additionally, Borrower has failed to comply with the financial covenant set forth in Section 3B.03 of the Credit Agreement for the period ended June 30, 2007
which covenant requires compliance with a Debt Service Coverage. Borrower has also failed to comply with the covenant set forth in Section 3B.02 of the Credit Agreement for the period ended June 30, 2007 which covenant requires compliance
with a Senior Debt to EBITDA Ratio (the foregoing failures to comply with covenants are collectively referred to as the “Covenant Violations”). As a result of the Maturity and the Covenant Violations, Bank has or, with the mere
passage of time, will have the right to exercise all rights and remedies available to Bank under the Quatech Loan Documents and under law. 
 The purpose of this Reservation of Rights Letter and Loan Continuation Standstill Agreement (this “Reservation of Rights Letter”) is to notify you that (x) pursuant to the terms and conditions that follow, Bank will
continue to make credit available under the Revolving Note and defer exercising its rights and remedies until August 24, 2007, and (y) that by not exercising the foregoing rights at this time or any other rights, powers and remedies
available to Bank under the Quatech Loan Documents, Bank does not waive, and does hereby reserve, all of its rights, powers and remedies. This Reservation of Rights Letter is not a renewal or novation of either the Revolving Note or Term Note C and
shall not operate or be construed as a waiver of any right, power or remedy of Bank under the Quatech Loan Documents and under law. 

 Quatech, Inc. 
 August 1,
2007 
  Page
 2
 
 This letter confirms that (i) the amount of Borrower’s Debt to Bank as of
August 1, 2007 is the principal amount of $1, 932,000.00 on the Revolving Note and the principal amount of $279,367.00 on Term Note C plus interest on the foregoing plus the amount outstanding on certain commercial credit card accounts
(“Quatech Debt”) (ii) Bank is the perfected first priority secured creditor in all assets of Quatech (iii) Quatech and each of the Guarantors requested that Bank continue to make credit available under the Revolving Note
and defer exercise of its rights and remedies under the Quatech Loan Documents and applicable law, for the period from the date of this Reservation of Rights Letter to the earliest of (such period being referred to herein as the “Standstill
Period”): (I) August 24, 2007, (II) repayment of the Quatech Debt in full or (III) the occurrence of a Terminating Event (as defined below), and; (iv) Bank is willing to do so under the terms and subject to the
conditions set forth in this Reservation of Rights Letter. In consideration of the representations and warranties set forth below and the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows: 
 Representations and Warranties 
  

	 	A.	Quatech and Guarantors each has acknowledged and confirmed that Bank has or with the mere passage of time, will have the right to exercise all rights and remedies available to Bank
under the Quatech Loan Documents and under law and that absent entry by Quatech into this Reservation of Rights Letter, the Quatech Debt is due and payable immediately with no claims, defenses, causes of action, counterclaims or offsets against
Bank. 

  

	 	B.	Quatech has represented to Bank that based on its most recent budget and financial forecasts, it has sufficient cash to meet its operational needs during the Standstill Period.

  

	 	C.	Quatech and Guarantors each hereby further represents and warrants that: 

  

	 	(1)	all of its representations and warranties in the Quatech Loan Documents as the same may be amended hereby, are true and complete in all respects on the date hereof with the same
force and effect as if made on such date; 

  

	 	(2)	the Quatech Loan Documents are in full force and effect; 

  

	 	(3)	neither Quatech nor any Guarantor has any claims, defenses, causes of action, counterclaims or offsets against the Bank or its officers, employees, agents, directors, subsidiaries,
affiliates or attorneys of any kind or nature whatsoever; 

 Quatech, Inc. 
 August
1, 2007 
  Page
 3
 
  

	 	(4)	as of the date of this Reservation of Rights Letter all liens, security interests, assignments and pledges encumbering assets of Quatech created pursuant to or referred to in the
Quatech Loan Documents or this Reservation of Rights Letter are first priority liens, security interests, assignments and pledges, continue unimpaired, are in full force and effect and secure and shall continue to secure all of the obligations
described in the respective instruments in which such interests were granted; 

  

	 	(5)	intentionally omitted; 

  

	 	(6)	no violation or Event of Default under the Quatech Loan Documents and no event which, with the passage of time or the giving of notice, or both, could constitute any such default,
violation or Event of Default, has occurred and is continuing, excepts the existing Covenant Violations as specified in this Reservation of Rights Letter; 

  

	 	(7)	no representation or warranty by Quatech or Guarantors contained in this Reservation of Rights Letter or any document, agreement or instrument referred to herein or presented to
Bank as an inducement to enter into this Reservation of Rights Letter contains any untrue statements of material fact or omits to state a material fact necessary to make such representation or warranty not misleading in light of the circumstances
under which it was made; 

  

	 	(8)	the execution, delivery and performance of this Reservation of Rights Letter and any document, agreement or instrument referred to herein by Quatech will not result in the violation
of any mortgage, indenture, material contract, instrument, agreement, judgment, decree, order, statute, rule or regulation to which either of Quatech or Guarantors is subject or by which it or any property is bound; 

  

	 	(9)	this Reservation of Rights Letter and the documents, agreements and instruments referred to herein constitute the legal, valid and binding obligations of each of Quatech and
Guarantors enforceable in accordance with their terms and have been duly authorized, executed and delivered by each of Quatech and Guarantors; and 

  

	 	(10)	no consents or approvals are required in connection with the execution, delivery and performance by each of Quatech and Guarantors of this Reservation of Rights Letter or any
documents, agreements or instruments referred to herein that have not been previously obtained. 

 Quatech, Inc. 
 August
1, 2007 
  Page
 4
 
  

	 	D.	Each of Quatech and Guarantors hereby expressly acknowledges and confirms that the foregoing representations and warranties are being specifically relied upon by Bank as a material
inducement to Bank to enter into this Reservation of Rights Letter and to forbear and defer from exercising Bank’s rights and remedies as provided for in the Quatech Loan Documents (as modified by this Reservation of Rights Letter) and seek
payment of attorneys’ fees and other costs and expenses, under the Quatech Loan Documents. The foregoing representations and warranties shall survive the execution and delivery of this Reservation of Rights Letter. 

 Forbearance and Deferral Agreement 
  

	 	E.	Bank hereby agrees to continue to lend under the Revolving Note (as modified by this Reservation of Rights Letter) and to forbear from exercising rights and remedies under the
Quatech Loan Documents and applicable law, and seek payment of attorneys’ fees and other costs and expenses, (which rights and remedies each of Quatech and Guarantors acknowledges and confirms that Bank is entitled to exercise), during the
Standstill Period commencing on the date of this Reservation of Rights Letter and ending on the earliest to occur of: (1) August 24, 2007 (2) repayment of the Quatech Debt in full or (3) the occurrence of a Terminating Event (as
defined below). Additionally, Bank will accept and Borrower shall pay interest only payments on both the Revolving Note and Term Note C, both such interest only payments being due on August 5, 2007. All Quatech Debt is due and payable on
August 24, 2007. 

  

	 	F.	INTENTIONALLY OMITTED 

  

	 	G.	For purposes of this Reservation of Rights Letter, the term “Terminating Event” shall mean the occurrence of any of the following events: 

  

	 	(1)	the failure by Quatech to make payments in accordance with the terms of the Quatech Loan Documents (as may be modified by this Reservation of Rights Letter);

  

	 	(2)	any representation and warranty made by Quatech or Guarantors in this Reservation of Rights Letter or the Quatech Loan Documents shall be untrue or incorrect in any material
respect; 

  

	 	(3)	the occurrence of a default, violation or Event of Default under the Quatech Loan Documents, except the existing Covenant Violations as specified above; 

 Quatech, Inc. 
 August
1, 2007 
  Page
 5
 
  

	 	(4)	the failure of Quatech or Guarantors to perform any other obligation under this Reservation of Rights Letter. 

  

	 	H.	Upon the occurrence of a Terminating Event, without further notice to Quatech or Guarantors or any other action on the part of Bank, all Quatech Debt shall be immediately due and
payable and Bank may exercise any and all of its rights and remedies under the Quatech Loan Documents and applicable law. 

 Consideration for Forbearance and Deferral Agreement 
  

	 	A.	Quatech agrees to an “Extension Fee” of $2,500.00. The Extension Fee shall be fully earned and non-refundable as of the required payment dates. The Extension Fee
shall be paid as follows: (x) immediately upon a Terminating Event and otherwise (y) on August 24, 2007. Bank shall be permitted and is hereby authorized by Borrower to debit any account of Borrower for the Extension Fee with notice
to Borrower. 

  

	 	B.	Quatech shall seek and attempt to obtain refinancing (“Refinancing”) as described on Schedule A. 

  

	 	C.	The interest only payments on the Revolving Note and Term Note C as provided in this Reservation of Rights Letter shall be timely made and performance due Bank under the Quatech
Loan Documents shall be timely provided 

  

	 	D.	In addition to any other financial reporting required by the Quatech Loan Documents, Quatech shall provide, as requested by Bank and in form and detail satisfactory to Bank,
information in writing regarding the status of the Refinancing, including any letters of intent and sale agreements in draft from or otherwise. 

 Quatech, Inc. 
 August
1, 2007 
  Page
 6
 
  

	 	E.	Quatech shall pay all costs and expenses of Bank related to or in connection with this Reservation of Rights Letter and any documents, agreements or instruments referred to herein,
including, without limitation, the fees and expenses of Bank’s consultants, attorneys or other professionals. Bank shall be permitted and is hereby authorized by Borrower to debit any account of Borrower for such fees with notice to Borrower.
Nothing in this Reservation of Rights Letter shall be intended or construed to hold Bank liable or responsible for any expense, liability or obligation of any kind or nature whatsoever (including, without limitation, attorneys’ fees and
expenses, other professionals’ fees and expenses, or other amounts payable to or on behalf of Quatech). 

  

	 	F.	Each of the Guarantors acknowledges consents and agrees to all the foregoing. 

 Release 
 In consideration of the accommodations being made available by Bank to or for the benefit of Quatech under
this Reservation of Rights Letter, including, without limitation, the Standstill Period on the part of Bank, Quatech for itself and its agents, employees, representatives, officers, successors and assigns, does hereby remise, release and forever
discharge Bank and its respective shareholders, subsidiaries, affiliates, directors, servants, agents, employees, representatives, officers, attorneys and their respective heirs, personal representatives, successors and assigns (collectively, the
“Released Parties”) of and from any and all claims, counterclaims, demands, actions and causes of action of any nature whatsoever, whether at law or in equity, including, without limitation, any of the foregoing arising out of or relating
to the transactions described in this Reservation of Rights Letter or the Quatech Loan Documents, which against the Released Parties, or any of them, Quatech now has or hereafter can or may have for or by reason of any cause, matter or thing
whatsoever, from the beginning of the world to the date of this Reservation of Rights Letter. In addition, Quatech agrees not to commence, join in or prosecute any suit or other proceeding in a position that is adverse to any of the Released Parties
arising directly or indirectly from any of the foregoing matters. 

 Quatech, Inc. 
 August
1, 2007 
  Page
 7
 
  

 Indemnification  
 From and after the date of this Reservation of Rights Letter, Quatech shall indemnify, defend and hold harmless Bank and its respective shareholders, subsidiaries, affiliates, directors, servants, agents, employees,
representatives, officers, attorneys and their respective heirs, personal representatives, successors and assigns (severally and collectively, the “Indemnified Parties”) against and from any and all liability for, and against and from all
losses or damages Indemnified Parties may suffer as a result of, any claim, demand, cost, expense, or judgment of any type, kind, character or nature (including attorneys’ fees and court costs), which Indemnified Parties shall incur or suffer
as a result of (i) any act or omission of Quatech or any of its agents or representatives in connection with the transactions described in this Reservation of Rights Letter or the Quatech Loan Documents, (ii) the inaccuracy of any of the
representations or warranties of Quatech or (iii) the breach of any of the respective covenants set forth herein of Quatech. This indemnification shall survive execution and delivery of this Reservation of Rights Letter. 
 Miscellaneous 
 Except as otherwise expressly
provided herein, the Quatech Loan Documents, as amended, remain in full force and effect. Any default under, or breach of, the terms of this Reservation of Rights Letter shall constitute an Event of Default under, and breach of, the Quatech Loan
Documents. Further, National City’s agreement to forbear from exercising its rights and remedies under the Quatech Loan Documents based on the terms and subject to the conditions set forth in this Reservation of Rights Letter shall not
constitute an expressed or implied course of dealing for any future payment requirements or any other action that Bank may take in connection with, or relating to, the Quatech Loan Documents. 

 Quatech, Inc. 
 August
1, 2007 
  Page
 8
 
  

 If you are in agreement with the foregoing terms and conditions, please sign all enclosed copies of
this letter agreement and return them to me. Once I have signed originals from you, I will provide you with an original executed copy. Should you have any questions, please do not hesitate to call me. If acceptance is not received by August 2,
2007, then the terms contained herein shall expire and be non-binding upon National City Bank. 
 Sincerely, 
 Sharon Rader 
  

			
	 ACCEPTANCE

	
	QUATECH, INC. (as borrower)
		
	BY:	 	 /s/ Steven D. Runkel

	ITS:	 	CEO

  

									
	 /s/ Steven D. Runkel
	 	(as Guarantor)
	Steven D. Runkel	 		 		 	
		
	 /s/ William J. Roberts
	 	(as Guarantor)
	William J. Roberts

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