Document:

Exhibit 10.33

 

This is an English translation

 

Technology Development Contract

 

Project Name: Cyber Digital Product Operation Platform Supporting System

 

Client (“Party A”): Beijing Qihu Technology Company Limited.

 

Developer (“Party B”): Qizhi Software (Beijing) Co., Ltd.

 

Signing place: Chaoyang District, Beijing

 

Signing date: October 20, 2008

 

Duration: October 20, 2008 to October 19, 2012

 

 

In order to provide a cyber digital products transaction action platform to Party A better, Party A hereby engages Party B to develop a system of digital products operation supporting platform. Party A and Party B hereby agree to enter into this Technology Development Contract through friendly negotiation and in accordance with the Contract Law of the People’s Republic of China and other relevant laws and regulations.

 

Article 1 Purpose, Content, Form and Requirement of Target Technology

 

1. Purpose

 

With the popularity of internet, online transactions become more and more popular, and the types of products traded online become more and more diversified and complex. In addition to the physical products such as books, costumes, foods and digital products, there are also lots of non-physical products such as mobile phone prepaid cards, game cards and virtual online gaming accounts and equipments.

 

The most significant feature of online digitalized products is the virtualization of products. Different from the trading of physical products in traditional B2B or C2C model, the most significant feature in the trading of virtual products (i.e. digitalized products) is that there is no logistic and distribution system, and no complex process and formality such as inspection and payment on delivery. With respect to consumers, they need instant payment and easy application; with respect to merchants, they need convenient settlement and easy payment through various payment means.

 

Qihoo Technology is an internet company and has hundreds of millions of internet users. With further development of internet businesses, it wants to develop the potential demand of users, provide a professional product sales platform and satisfy the needs of users. But it does not have a sound cyber digital product operation supporting system. Therefore, in consideration of Party B’s technical ability and experience in development of e-commerce, OA system, searching technology and high concurrency real-time system, Party A hereby engages Party B to develop the system. This system will provide all business supporting functions throughout the transaction of digital products. Party B shall implement an integrated development and provide subsequent maintenance and upgrading at the technical layer, to satisfy the demands of Party A in next four years. The purpose of this technical platform development is to achieve the aforesaid functions and totally solve the following critical technical issues:

 

·                      Presentation, transaction and management of all online products;

 

·                      Connection and interaction with all third-party payment platform, so that users may experience one-stop shopping on Party A’s website;

 

·                     Solutions to the security issues relating to online transaction, such as loss of password or disclosure of transaction data, and realization of zero-risk transaction;

 

·                      Providing third-party partners with the customized management of products, such as shelving and off-shelving, price adjustment and settlement;

 

·                      Providing internal OA process management;

 

·                      Extension of rapid self-defined information without further development of technology;

 

·                      Providing the function of searching relevant products, such as listing of upstream, downstream and similar products in searching, so that users may make selection and reference.

 

This development project will satisfy Party A’s business development needs in next four years through the establishment of a system of cyber digital product operation platform.

 

 

2. Scope of Application

 

During the development of the cyber digital product operation supporting platform, Party B will develop various modules and the Parties will test such modules. After all modules are developed, they will be connected to a whole system. After the whole system is accepted by Party A, Party A will use the supporting functions of the system in next four years to ensure the long-term and stable development of the online business.

 

3. Requirement of Technology Structure

 

(1) Physical Structure

 

[Graphics]

 

In the development of the system, a structure of true three layers will be adopted. The most significant advantage of the true three-layer structure is the excellent scalability and load balance. In the design plan, we propose to establish a growing and developable system, and continuously use the system in the future development. In the three-layer structure, each layer is scalable at any time, whether the system layer or application layer, and each expanded capacity can be seamlessly connected to the existing system. At the same time, it can achieve a better effect of load balance and enhanced concurrency processing ability.

 

Web Server: it is deployed behind a hardware firewall; the accessing load balance is achieved through the server

 

Application Server: it is deployed between the WEB server and database server; the load balance in the business logic is achieved through the server;

 

Database Server: it is deployed at the bottom layer and separated from the external network; it can realize the dual-system backup

 

(2) System Logic Structure

 

[Graphics]

 

Notes:

 

The business of complex logic is to satisfy the requirement of high scalability and high maintainability caused by the changeability of the business logic. Reasonable separation of duties is the primary target of the design, while performance of the system is secondary.

 

	
Layer
    	
 
    	
Duty
    	
 
    	
Notes
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Integration Layer
    	
 
    	
To provide a consistent environment for the whole   system, so that other parts of the system will not rely on any external system.
    	
 
    	
It encapsulates data source, base service and   external service.
   It also defines and restricts the whole system.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Business Field Layer
    	
 
    	
It deals with the problems in the business field.   Its core is a solid model based on the business field abstract.
    	
 
    	
Its main body is divided into three parts: entity   package, DAO realization package and business knowledge definition package.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Service Layer
    	
 
    	
It connects with the specific application   encapsulated rent device.
    	
 
    	
It provides FunSvc for the logic transmitted through   the entity, and provides StatSvc for the statistics statements.
    

 

 

	
Application Layer
    	
 
    	
It deals with the interaction and functional   organization of users.
    	
 
    	
 
    

 

3. System Structure Chart

 

Division and Definition of Cyber Digital Product Operation Platform Supporting System

 

In the following detailed design chart, the whole system is divided as follows from the aspect of application:

 

[Graphics]

 

Notes:

 

The whole system is composed of three sub-systems, including product sales sub-system, business management sub-system and customer service management sub-system.

 

The detailed requirements of all functional modules are listed below:

 

	
Name of
   Sub-system
    	
 
    	
Name of
   Module
    	
 
    	
Duty
    	
 
    	
Support Features
    	
 
    	
Notes
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Product Sales Sub-system
    	
 
    	
Interface Authentication
    	
 
    	
Verify the safety and validity of requests from   various sources
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Business Scheduling
    	
 
    	
Control the logic schedule of whole process, and   support the single entry schedule
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Business Management
    	
 
    	
Realize the logic of all businesses
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Product Management
    	
 
    	
Manage the delivery and inventory of all products
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Uniform Billing Management
    	
 
    	
Realize the interface connection with all   third-party payment platform
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Data Storage
    	
 
    	
Manage database operations
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
System Monitoring
    	
 
    	
Monitor all function modules of the system
    	
 
    	
Monitor the operation, error alarm, error recovery   and other functions of all functional modules in the system
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Log Management
    	
 
    	
Record all system logs
    	
 
    	
Provide full record of information sending and   receiving logs, and establish full indices, to facilitate the inquiry of   records
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Business Management Sub-system
    	
 
    	
Product Management
    	
 
    	
Manage the information of all products
    	
 
    	
Including product release, product listing and   product 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
inventory
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Order Management
    	
 
    	
Order inquiry and statistics
    	
 
    	
Including order inquiry, sales statistics and email   reply template
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Data Analysis
    	
 
    	
Including traffic statistics, sales comparison,   corresponding comparison, sales composition
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Financial Information
    	
 
    	
Analyze financial data
    	
 
    	
Including account checklist, account details and   account statement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Cooperation and Promotion
    	
 
    	
Including promotion of cooperation codes, product   recommendation and promotion plan
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Customer Service Management Sub-system
    	
 
    	
System Setup
    	
 
    	
Including department setup, user department setup,   user setup, user authority setup and authority setup
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Work Order Management
    	
 
    	
Including work order creation, work order listing,   work order inquiry and work order statistics
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Order Inquiry
    	
 
    	
Including order inquiry and product re-issuance
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Statistics Analysis
    	
 
    	
Including statistics of number of consulting cases,   comparison of number of consulting cases, corresponding comparison
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Complaint Record
    	
 
    	
Record and classify all frequently asked questions
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Customer Service Statement
    	
 
    	
Including daily statements, week statements, monthly   statements and data download
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FAQ
    	
 
    	
Summarize and classify frequently asked questions,   and make a list
    	
 
    	
 
    	
 
    	
 
    

 

Article 2 Technical Specifications and Parameters to Be Achieved

 

The acceptance of the system shall be conducted according to the function requirements described in Appendix 1: Cyber Digital Product Operation Platform Supporting System Development Plan; refer to Appendix 2 for the form of acceptance confirmation.

 

 

Article 3 Development Plan

 

The Project will be completed in four phases, while phase 1 is very urgent to satisfy the basic needs of business operations. For details about the development plan, refer to Appendix 3.

 

Article 4 Obligations of Both Parties

 

1. Main obligations of Party A:

 

(1) Party A shall pay the compensation to Party B in accordance with this Contract.

 

(2) Party A shall provide Party B with the technical materials, original data and relevant assistance in accordance with this Contract.

 

(3) Party A shall provide Party B’s persons with certain work place at Party A’s premises for system debugging.

 

2. Main obligations of Party B:

 

(1) It shall prepare and implement a development plan;

 

(2) It shall set up reasonable development environment, reasonably connect and set up the development environment according to Party A’s requirements regarding the development system, and shall ensure the system conform to the operation structure of the development system required by Party A;

 

(3) Party B shall complete the development of the system and submit all deliverables in accordance with this Contract.

 

(4) Party B shall ensure the satisfaction of Party A’s requirements, and ensure that the system can achieve the intended functional requirements and technical specifications after it is put into operation; if any specification is provided for in the public standards, it shall not be lower than the domestic or international standards and the technical level can be achieved;

 

(5) During the course of system development and testing, Party B must comply with all safety management rules of Party A, and shall be liable for all consequences resulting from violation of such rules.

 

(6) Party B shall provide Party A with the relevant technical materials and necessary technical guidance, and help Party A grasp the subject project.

 

(7) Party B shall provide Party A with the technical and consulting services, and shall assist Party A in establishing the operation procedures and submit a technology development summary report. Without hindrance to its normal research and development work, Party B shall accept the inspection of Party A regarding the performance of this Contract.

 

(8) Party B shall keep confidentiality of all key data in the system relating to Party A’s business.

 

(9) Prior to the acceptance of the Project, Party B shall give guidance regarding the application technology and software maintenance technology to the relevant persons dispatched by Party A.

 

(10) After the Project is accepted, Party B shall provide Party A with the system maintenance service and shall ensure the normal operation of the system under the subsequent maintenance.

 

(11) During the term of this Contract, Party B shall dispatch special persons to Party A’s site. These persons shall cooperate with Party A in system maintenance and give routine trainings to Party A’s maintenance persons.

 

 

(12) During the term of this Contract, Party B shall dispatch special persons to provide Party A with consulting services regarding the operation, maintenance and subsequent development of the system.

 

Article 5 Delivery and Acceptance

 

In view of the characteristic of Party A’s business operations, the Parties hereby agree that the Project shall be developed in various modules and such modules shall be delivered in phases. After the completion of development all modules, Party B shall connect those modules to the whole system, and Party A shall accept the whole system and put it into operation.

 

1. Party B shall deliver the modules to Party A in phases and install, debug, train and maintain the same in accordance with the provisions of Appendix 1: Cyber Digital Products Operation Supporting Platform System Development Plan. Party B shall ensure the normal operation of the modules, and ensure the effective connection and operation of the modules after the whole system is finally developed.

 

2. Upon receipt of a notice from Party B, Party A shall conduct testing and acceptance on the modules and the system together with Party B in accordance with this Contract, to accept the qualified modules and system delivered by Party B.

 

3. After Party B deliver the module in each phase, Party A shall promptly conduct acceptance. If Party A considers that there is any defect in the module delivered hereunder, it shall give a written notice to Party B when such module is installed.

 

4. Within three business days after the modules are delivered and installed by Party B in phases and with the assistance of Party B, Party A shall test and accept the modules as per the technical specifications and parameter setup described in the Cyber Digital Product Operation Supporting Platform System Development Proposal. If it is found that any module delivered by Party B does not conform to the technical specifications and parameters setup, through testing within the time period of testing and acceptance stipulated herein, Party B shall make correction and all costs and expenses incurred therefrom shall be borne by Party B.

 

5. The delivery includes delivery of modules in phases and delivery of the whole system.

 

6. The following persons shall attend at the site when the modules are delivered and connected: project manager, maintenance manager and appropriate module technical manager of Party A, and project manager, appropriate module development manager and installation & debugging manager of Party B.

 

7. The project managers of the Parties shall confirm whether the installation and operation environment of the modules confirm to the relevant standards as per the requirement described in the function demand statement. If either Party objects, the Parties shall confirm such objection in written forms and determine the deadline and plan of such objection.

 

8. Party B’s persons responsible for installation and debugging of the system shall install the modules.

 

9. Where the conditions for installation are not satisfied, Party B’s project manager shall give a notice to Party A. In that case, Party A’s project manager shall solve such problem as soon as possible. Each period of 4 hours in solving the problem shall be accounted as a business day. The subsequent work in Party B’s development plan shall be postponed accordingly.

 

10. If any module can not work normally or the function of any module does not conform to the requirements described in the system function statement, Party A’s project manager may stop operating the module and demand

 

 

Party B to solve the problem promptly. In that case, Party B shall be subject to the liabilities for the delay caused by such problem.

 

11. After the completion of development of the system, Party B shall deliver and connect the whole system.

 

12. The following persons shall attend at the site when the whole system is delivered and connected: project manager and system maintenance manager of Party A, and project manager and installation & debugging manager of Party B.

 

13. Party A shall setup the relevant hardware equipments according to the requirements for operation of the modules, prepare the technical requirements as listed in the system function demand statement and provide an installation environment for the whole system separated from other systems operated by Party A.

 

14. The project managers of the Parties shall confirm whether the installation environment confirm to the relevant conditions as per the requirements described in the system function demand statement. If either Party objects, the Parties shall confirm such problem in written forms and determine the deadline and plan of such problem.

 

15. Party B’s persons responsible for installation and debugging of the system shall install the whole system.

 

16. Where the conditions for installation are not satisfied, Party B’s project manager shall give a notice to Party A. In that case, Party A’s project manager shall solve such problem as soon as possible. Each period of 4 hours in solving the problem shall be accounted as a business day. The subsequent work in Party B’s development plan shall be postponed accordingly.

 

17. The Parties shall confirm whether the modules connected to the system are complete or not as per the requirements described in the system function demand statement.

 

18. Party B’s persons responsible for system maintenance shall prepare the interconnection environment.

 

19. Party B’s persons responsible for installation and debugging shall connect the whole system, and the technicians of both Parties shall confirm whether such connection is effective or not.

 

20. Party A’s system maintenance manager shall effectively connect the operation environment to the whole system and confirm whether the system is operated normally or not; the corresponding module managers of both Parties shall confirm whether the functions of the system confirm to the requirements described in the system function demand statement.

 

21. If the system can not work normally after being connected or the function does not conform to the requirements described in the function demand statement, Party A’s project manager may stop operating the system and demand Party B to solve the problem promptly. In that case, Party B shall be subject to the liabilities for breach of contract accordingly. Additionally, Party B shall indemnify Party A against all losses and damages resulting from abnormality in the operation of the system or inconformity to the requirements described in the function demand statement.

 

Article 6 Cooperation and Sharing of Technology

 

1. After the modules are delivered, Party B shall provide Party A’s relevant persons with the trainings on the operation and maintenance of the modules to ensure the normal operation of the modules, and shall dispatch special persons to give routine maintenance on the operation of the modules at Party A’s site.

 

2. The trainings include group training and onsite training. The site trainings shall be given at Party A’s module operation site and the Party B’s development and simulated operation site.

 

3. The period of group training shall be three days/module.

 

 

4. Party A shall dispatch its module technical manager, module maintenance manager and module operators to participate in the trainings regarding the module.

 

5. After the system is delivered, Party B shall provide Party A’s relevant persons with the trainings on the operation and maintenance of the whole system for a period of ten days.

 

6. Party A shall dispatch its project manager, system technical manager, system maintenance manager and system operators to participate in the trainings regarding the system.

 

7. The trainings shall be given at Party A’s system site and the Party B’s development and simulated operation site.

 

8. During the course of cooperation between the Parties, Party B shall provide Party A with the guidance to the operation and maintenance of the module after the first module is put into operation. The aforesaid guidance shall include:

 

(1) Testing and data statistics relating to the routine operation of the modules;

 

(2) Testing and data statistics relating to the routine operation of the system;

 

(3) Routine trainings for Party A’s persons responsible for system maintenance;

 

(4) Cooperation with Party A’s persons responsible for system maintenance, summarize the characteristics of operation of the modules, making discussion and improvement;

 

(5) Promptly solving any failure in the modules and system maintained by Party B, and promptly giving a notice to Party A’s persons responsible for system maintenance.

 

9. Party B shall provide consulting service Party A only during the course of development and operation of the system.

 

10. With respect to any question raised by Party A, Party B shall answer the question on the same day; if Party B has to answer it on the next day, it shall give a statement to Party A in advance.

 

Article 7 Allocation of Risks

 

1. During the development of the target technology, if there is any technical difficulty cannot be overcome under the current technical ability and conditions and such difficulty causes the failure of the Project or any part thereof, all losses resulting therefrom shall be borne by Party B.

 

2. If the target technology to be developed hereunder has been publicized by others during the course of project development, which causes the performance of this Contract meaningless, either Party may terminate this Contract. If Party B has incurred costs from the performance of this Contract, the costs shall be solely borne by Party B.

 

Article 8 Price, Compensation and Terms of Payment

 

1. The total Contract Price is RMB 9.5 million only. The contract price shall be paid in installments:

 

Within 30 days upon the execution of this Contract, Party A shall pay the first installment of the compensation in sum of RMB 2.5 million to Party B; within 180 days upon execution of this Contract, Party A shall pay the second installment of the compensation in sum of RMB 3.5 million to Party B; after the whole system is delivered and accepted, Party A shall pay the remaining compensation in sum of RMB 3.5 million to Party B.

 

2. The compensation shall be paid to Party B by check, bank remittance or any other form in accordance with this

 

 

Contract.

 

Article 9 Ownership of Technology

 

This Project will be completed by Party B for the benefits of Party A as a work-for-hire, and the ownership of the target technology shall be belong to Party A.

 

Article 10 Technical Information and Confidentiality

 

1. Each Party shall keep confidentiality of all technical information and materials given by the other Party.

 

2. The technical deliverables developed hereunder shall be exclusively and solely owned by Party A, and Party B may not use or transfer such technical deliverables, unless Party B uses such technical deliverables to carry out new R&D development projects.

 

3. After the delivery and cutover of the whole system, Party B must immediately deliver to Party A all confidential information (including the copies and extracts thereof) relating to the system, and may not claim any compensation against Party A.

 

4. The Confidential Information defined above shall not include:

 

(1) Information has been known by the public;

 

(2) Information received by a Party from any third party not subject to the confidentiality obligation;

 

(3) Information independently developed by Party B without access to the Confidential Information; or

 

(4) Information must be disclosed as required by any judicial or government authority who has the statutory power to receive such information.

 

5. Party B must comply with the confidentiality obligation stipulated herein during the term of this Contract and within three years after the termination of this Contract. If Party B provides, discloses, sells, leases, transfers, sublicenses, re-licenses or otherwise makes available of any confidential information to others in violation of this Article 10, Party A may claim damages and losses against Party B.

 

Article 11 Liabilities for Breach of Contract

 

1. Party A’s Liabilities for Breach of Contract

 

(1) Party A fails to provide the agreed technical materials, original data or assistance for more than 15 days after the deadline, Party B may terminate this Contract. In that case, Party A shall reimburse Party B of all costs and expenses incurred from the performance of this Contract.

 

(2) There is a material defect in the technical materials, original data and assistance provided by Party A, which causes suspension, delay or failure in the development of the Project, Party A shall be fully liable for such suspension, delay or failure. However, if Party B becomes aware that there is certain defect in the materials and data provided by Party A, but it fails to notify Party A for correction or supplementation, Party B shall be subject to the liability accordingly.

 

(3) If Party A refuses or delays to accept the deliverables without any justifiable cause, which causes such deliverables are lawfully acquired by any third party or the practical value of such deliverables is lost in its novelty, or such deliverables are damaged or lost by accident, Party A shall be liable for such damage or loss.

 

 

(4) If Party A fails to provide effective cooperation or conduct acceptance on time according to Party B’s requirements, Party B’s performance of its obligations regarding delivery and subsequent development plan shall be postponed accordingly. If Party A fails to do so for more than 20 days, Party B may terminate this Contract. Party A shall reimburse all costs and expenses incurred by Party B for performance of this Contract, and pay to Party B the liquidated damages at 5‰ of the costs and expenses incurred by Party B.

 

(5) If Party A terminates this Contract due to its own reason before any module is delivered, it shall reimburse Party B of all costs and expenses incurred from the performance of this Contract, and pay to Party B the liquidated damages at 5‰ of all costs and expenses.

 

(6) If Party A terminates this Contract due to its own reason after any module is delivered, Party A shall reimburse Party B of all costs and expenses incurred from the performance of this Contract and indemnify Party B against all losses and damages resulting therefrom.

 

2. Liabilities of Party B for Breach of Contract

 

(1) Within 15 business days upon effectiveness of this Contract, Party B shall deploy the human resources and environment required for development of the system. If Party B fails to do so within the agreed time period, which causes any suspension or delay in the development or delivery of the system, Party B shall indemnify Party A against all losses and damages resulting therefrom.

 

(2) If Party B fails to develop the system according to the schedule stipulated herein, Party A may demand Party B to carry out development work and take remedies immediately. If Party B fails to do so for more than 15 days, Party A may terminate this Contract and all costs and expenses incurred from the performance of this Contract shall be borne by Party B. Additionally, Party B shall pay to Party A the liquidated damages (the amount of which shall be determined by the Parties).

 

(3) If Party B fails to deliver any module within the time period stipulated herein, it shall indemnify Party A against all losses and damages resulting therefrom; if Party B still fails to do so within 15 days after the due date, Party A may terminate this Contract and Party B shall pay to Party A the liquidated damages (the amount of which shall be determined by the Parties).

 

(4) If the modules and system delivered by Party B fails to meet the intended function or technical specification due to its own reason, Party A may demand Party B to make supplementation or correction, and Party B shall indemnify Party A against all damages and losses resulting therefrom. If Party B fails to make supplementation or correction within 15 days, or it still fails to meet the intended function or technical specification after supplementation or correction, Party A may terminate this Contract, and Party B shall indemnify Party A against all losses and damages resulting therefrom.

 

(5) If Party B becomes aware of any technical difficulty can not be overcome during the term of this Contract, which may cause failure in the Project or any part thereof, it shall promptly give a notice to Party A and take appropriate actions to reduce losses. If Party B fails to promptly give a notice to Party A, Party B shall be liable for all losses and damages directly caused by such failure.

 

(6) If Party B terminates this Contract unilaterally, it shall indemnify Party A against all losses and damages resulting therefrom.

 

Article 12 Intellectual Property Rights

 

1. Party B hereby warrants that the development of the system and use of the system by Party A in accordance with

 

 

this Contract will not infringe any intellectual property of any third party, and will not infringe any other legal rights of any third party.

 

2. If any third party initiates a claim against Party A due to Party A’s use of the system hereunder, alleging Party A infringes the intellectual property right, trade secret or any other lawful right of the third party, Party B shall at its own costs settle the claim, but Party A shall provide necessary assistance to Party B in settlement of the claim.

 

3. If it is the opinion of Party B that the system itself or its use will infringe or has infringed any copyright, trade secret or patent of any third party, Party B may at its own discretion take sufficient and necessary actions, so that Party A may continue to use the system or its replacement or its modified software. When Party A uses the replaced or modified software, Party B shall warrant that the function thereof is equivalent to that of the original system and it will not infringe any right of any third party.

 

Article 13 Dispute Settlement

 

1. This Contract is governed by the Contract Law of the People’s Republic of China, the Regulations of the People’s Republic of China Regarding Protection of Computer Software and other relevant laws and regulations.

 

2. Any dispute arising from the performance or interpretation of this Contract or in connection with this Contract shall be first settled by both Parties through friendly negotiation or mediation. If no settlement can be reached through negotiation or mediation, the dispute shall be settled through the following means:

 

(1) Submit the dispute to Beijing Arbitration Commission for arbitration;

 

(2) The arbitral award shall be final and binding upon both parties;

 

(3) Unless it is otherwise specified in the arbitral award, the arbitration costs shall be borne by the losing party.

 

3. Both Parties shall continue to perform this Contract other than the parts involved in the mediation or arbitration.

 

Article 14 Force Majeure

 

1. If either party fails to perform its obligations hereunder during the term of this Contract due to any force majeure, such as war, floods, fire, typhoon, earthquake or any other event agreed by both Parties as force majeure, the term of this Contract shall be extended equal to the duration of such event.

 

2. The influenced party shall give a written notice to the other Party within 5 days upon occurrence of the event, and provide the other Party with a written certificate of such event issued by the relevant authority within 15 days.

 

3. If any event of force majeure persists more than 120 days, both Parties shall amicably negotiate to settle the issue regarding the continued performance of this Contract within 15 days after the end of such event. If the Parties can not reach an agreement within the aforesaid period, this Contract shall be terminated automatically.

 

Article 15 Effectiveness, Term, Termination and Others

 

1. Effectiveness

 

(1) This Contract shall be made and executed in four counterparts, two for each party. This Contract shall become effective as of being duly signed and sealed by the Parties.

 

(2) This Contract shall become effective as of the effective date. This Contract shall supersede all prior oral or written contracts and undertakings between both Parties regarding the subject matter hereof.

 

 

2. Term

 

(1) The term of this Contract shall be four (4) years, as from the date when this Contract is duly executed by both Parties.

 

(2) If the name, organizational form, business nature, business scope, registered capital or investor of either Party is changed during the term of this Contract, both Parties shall continue to perform or procure its successor to perform all obligations hereunder.

 

3. Termination

 

If either Party intends to terminate this Agreement, both Parties may enter into a supplementary agreement regarding the termination of this Contract through friendly negotiation. This Contract shall be terminated when it is confirmed by both Parties in written forms.

 

4. Others

 

(1) Upon expiration of this Contract, both Parties shall continue exercising the rights and performing the obligations remaining thereafter, which will not be affected by the expiration of this Contract. The debtor shall continue to discharge its debt owing to the creditor.

 

(2) Any change to the provisions and appendices of the Contract shall be made in a written agreement duly executed by the authorized representatives of both Parties through friendly negotiation.

 

Article 16 Definitions

 

1. “Technical Materials” shall mean any and all information, data, software, emails, faxes, communications, documents, drawings, forms, images and other materials relating to the customized software and customized technology.

 

2. “Confidential Information” shall mean this Contract and all appendices and supplementations hereto, and all software, software directories, documents, information, data, drawings, benchmark tests, technical specifications and trade secrets, and other information exclusively owed by each Party, provided to the other Party and expressly marked as “confidential”, including all items specified as “confidential” in any other contracts entered into by both Parties before or after the date of this Contract.

 

Article 17 Miscellaneous

 

This Contract has four appendices and all these appendices shall have the same legal effect as this Contract.

 

The appendices attached to this Contract include:

 

Appendix 1: Development Proposal of Cyber Digital Product Operation Supporting Platform System

 

Appendix 2: Confirmation for Acceptance of Cyber Digital Product Operation Supporting Platform System

 

Appendix 3: Development Plan of Cyber Digital Product Operation Supporting Platform System

 

Appendix 4: Confidentiality Agreement for Cyber Digital Product Operation Supporting Platform System

 

This Contract shall become effective as of being duly signed and sealed by both Parties.

 

 

	
Party A:
    	
 
    
	
 
    	
 
    
	
Legal Representative or Authorized Representative:
    	
 
    
	
 
    	
 
    
	
/s/ Xiangdong Qi
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party B:
    	
 
    
	
 
    	
 
    
	
Legal Representative or Authorized Representative:
    	
 
    
	
 
    	
 
    
	
/s/ Dewei Zhou
    	
 
    

 

 

Appendix 1

 

Cyber Digital Product Operation Platform Supporting System

 

Development Proposal

 

Qizhi Software (Beijing) Co., Ltd.

 

[Confidential]

 

 

Table of Contents

 

	
Chapter   1System Development Overview
    	
4
    
	
 
    	
 
    
	
1.1 Introduction
    	
4
    
	
1.1.1 Project Name
    	
4
    
	
1.1.2 Demands Analysis
    	
4
    
	
 
    	
 
    
	
1.2 Task Overview
    	
4
    
	
 
    	
 
    
	
1.2.1 System Objective
    	
4
    
	
1.2.2 Target User
    	
4
    
	
1.2.3 Running   Environment
    	
4
    
	
 
    	
 
    
	
1.3 Development Principles
    	
5
    
	
 
    	
 
    
	
1.3.1 Advance
    	
5
    
	
1.3.2 High Efficiency
    	
5
    
	
1.3.4 Scalability
    	
6
    
	
1.3.5 Security
    	
6
    
	
1.3.6 Regularity
    	
6
    
	
1.3.7 Compatibility
    	
7
    
	
 
    	
 
    
	
1.4 Development Features
    	
7
    
	
 
    	
 
    
	
1.4.1 Technical Basis   of the Platform
    	
7
    
	
1.4.2 High-performance   Data Access
    	
7
    
	
1.4.3 Fast and Flexible   Cache System
    	
8
    
	
1.4.4 Interaction   Mechanism for Secure Data
    	
8
    
	
1.4.5 Flexible   Configuration and High Scalability for Service Function
    	
9
    
	
1.4.6 Featuring   Functions Overview
    	
9
    
	
 
    	
 
    
	
1.5 Development Methods
    	
10
    
	
 
    	
 
    
	
Chapter 2 System Function Development
    	
10
    
	
 
    	
 
    
	
2.1 System Structure
    	
10
    
	
2.1.1 System Logic   Structure
    	
10
    
	
2.1.2 System Structure   Chart
    	
10
    
	
 
    	
 
    
	
2.2 Product Sales Sub-system
    	
11
    
	
 
    	
 
    
	
2.2.1 Description
    	
11
    
	
2.2.2 Core interaction   Logic
    	
11
    
	
2.2.3 Key Design Points
    	
12
    
	
 
    	
 
    
	
2.3 Business Management Sub-system
    	
12
    
	
 
    	
 
    
	
2.3.1 Description
    	
12
    
	
2.3.2 Core Interaction   Logic
    	
12
    
	
2.3.3 Key Design Points
    	
12
    
	
 
    	
 
    
	
2.4 Customer Service Management Sub-system
    	
12
    
	
 
    	
 
    
	
2.4.1 Description
    	
12
    
	
2.4.2 Core Interaction   Logic
    	
12
    
	
2.4.3 Key Design Points
    	
13
    
	
 
    	
 
    
	
2.5 Development of Product Sales Module
    	
13
    
	
 
    	
 
    
	
2.5.1 Interface   Authentication Module
    	
13
    
	
2.5.2 Business   Scheduling Module
    	
13
    
	
2.5.3 Business   Management Module
    	
13
    

 

 

	
2.5.5 Unified Billing   Management Module
    	
14
    
	
2.5.6 Data Storage   Module
    	
14
    
	
2.5.7 Log Management   Module
    	
14
    
	
 
    	
 
    
	
2.6 Development of business management module
    	
15
    
	
 
    	
 
    
	
2.6.1 Product   management module
    	
15
    
	
2.6.2 Module of order   management
    	
15
    
	
2.6.3 Module of Data   Analysis
    	
15
    
	
2.6.4 Module of   Financial Information
    	
15
    
	
2.6.5 Module of   Cooperative Promotion
    	
16
    
	
 
    	
 
    
	
2.7 Development of Customer Service Management   Module
    	
16
    
	
 
    	
 
    
	
2.7.1 Module of System   Setting
    	
16
    
	
2.7.2 Module of Work   order Management
    	
16
    
	
2.7.3 Module of Order   Inquiry
    	
17
    
	
2.7.4 Module of   Statistical Analysis
    	
17
    
	
2.7.5 Customer Service   Report
    	
17
    
	
2.7.6 FAQ
    	
17
    
	
 
    	
 
    
	
Chapter 3 Project Management and   Execution Program
    	
18
    
	
 
    	
 
    
	
3.1 Method of Project Management
    	
18
    
	
 
    	
 
    
	
3.1.1 Project   Organization
    	
18
    
	
3.1.2 Expense Control   Method
    	
21
    
	
3.1.3 Quality Assurance   System
    	
21
    
	
3.1.4 Time Control   Method
    	
21
    
	
3.1.5 Project Risk   Management
    	
21
    
	
3.1.6 Project   Communication Management
    	
22
    
	
3.1.7 Human Resource   Management of the Project
    	
22
    
	
 
    	
 
    
	
Chapter 4 Service and Training
    	
23
    
	
 
    	
 
    
	
4.1 Service
    	
23
    
	
 
    	
 
    
	
4.2 Silver Service Plan
    	
24
    
	
 
    	
 
    
	
4.2.1 Hotline Support   Service (7*24hrs)
    	
24
    
	
4.2.2Remote Dial-in   Analysis
    	
24
    
	
4.2.3 Field Support   Service (7*24 hrs)
    	
24
    
	
4.2.4 Priority Level   and Response Speed
    	
24
    
	
4.2.5Regular Visit
    	
25
    
	
4.3Training Content
    	
25
    

 

 

Chapter 1 System Development Overview

 

1.1 Introduction

 

1.1.1 Project Name

 

Cyber digital product operation supporting platform system

 

1.1.2 Demands Analysis

 

Based on market survey, only by purchasing a serial number of computer application software rather than the whole product, you can normally use the product. Most serial numbers are composed of letters and numbers. Thus these digitized product transactions can be immediately done through the Internet. The biggest difference between this digitized product transaction operation mode and traditional online E-commerce transaction lies in that no offline logistics and delivery are needed and transaction cost and time are greatly reduced with fast, convenient and usable right after purchase.

 

Qihoo is an Internet company with more than 100 million users. It’s oriented to provide Internet users with digitized product transaction and to satisfy Internet users’ needs for digitized product for immediate use. However, lacking the support of professional sales management platform, Qihoo now entrusts Qizhi Software LTD to conduct the R&D of this platform.

 

1.2 Task Overview

 

1.2.1 System Objective

 

·                      To provide complete and secure sales platform to realize online sales

 

·                      To provide cooperative promotion partner management platform

 

·                      To realize unified third party payment management platform

 

·                      To realize sales customer service management platform

 

1.2.2 Target User

 

Apply to all Internet users, cooperative promotion partners, operation staff

 

1.2.3 Running Environment

 

·                      Server system platform

 

FreeBSD 6.1 and higher version

 

 

Apache 2.0 and higher version

 

PHP 5.2 and higher version

 

mysql 5.0 and higher version

 

·                      Client

 

ie, firefox and other browsers

 

1.3 Development Principles

 

With years of development experience and long term tracking of international advanced application technology, based on standardized, scientific and practical development ideas and in accordance with user’s requirement for overall performance and functions, the followings principles shall be adopted when constructing this supporting system:

 

1.3.1 Advance

 

This project shall use LAMP technology combination. As de facto standard for Web server, LAMP has replaced Java and .Net as the leader in commercial software development. The compatibility of these open source components continues to improve, and the “gold combination” has become more and more popular. Each component of LAMP is Free or Open Source Software. The era of paying for “professional” commercial software for enterprise and individual developers is end, and this free and open source approaches have huge attraction to users throughout the world. The feature of open source also allows enterprises and developers to freely modify source programs for their own use, and thus improves the flexibility that absents in proprietary software or commercial software and maximizes the project’s deriviative.

 

1.3.2 High Efficiency

 

The business access shall use high performance distribution cache Memcached technology which can significantly reduce database load with better resource distribution and faster access. With Memcached Server and Clients working together, trans-server distributional overall cache can be realized. It can also work with Web Server which has higher requirements for CUP with lower for memory., while Memcached Server has lower requirements for CUP but lower  for memory. So they can be collaboratively used.

 

With a rapid speed by using libevent, it can handle as many opened links (using epoll instead of poll) as possible. Using non-blocking network IO, objects can be hashed through distribution to different servers. And query complexity is 0(1).

 

The platform uses PHP performance accelerator-eAccelerator which can optimize your PHP code execution speed, reduce load and raise PHP application execution speed by as more as 10 times.

 

 

1.3.3 Reliability

 

Definition of service quality reliability by level

 

	
Service level
    	
 
    	
User   type
    	
 
    	
Number   of user
    	
 
    	
Stability   
   requirement
    	
 
    	
Notes
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Key service
    	
 
    	
Internet users
    	
 
    	
Over 10000
    	
 
    	
7*24 service, annual availability 99.9%
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Important service
    	
 
    	
Internet users
    	
 
    	
Over 10000
    	
 
    	
7*24 service, annual availability 99.9%
    	
 
    	
Service interruption will reduce level of key   service
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Supporting service
    	
 
    	
Internal users and cooperation partner users
    	
 
    	
Below 100
    	
 
    	
7*24 service, annual availability 99.9%
    	
 
    	
Service interruption will affect company’s internal   daily work
    

 

Mysql database uses master-slave mode. When master database fails, it can switch business to slave database within 2 minutes to guarantee system stability.

 

1.3.4 Scalability

 

The system is designed to use MVC three layers mode that is open, standardized and adaptable. With the expansion of business volume or increase of business types, we only need to add relevant packable component modules, which have huge scalability to satisfy development of new business. The software shall support hardware system performance upgrade and number expansion.

 

1.3.5 Security

 

The project protects the availability of network service, focuses on resolution of network security problems, formulates security strategy for secure network access, determines such security strategies as security level for each firewall, user access control, network data encryption and decryption and user authentication of customer service system. All server hosts shall be placed behind firewalls to prevent attacks from illegal network users.

 

It focuses on resolution of data security problems and formulate comprehensive data backup and recovery strategy with strong operability and security. Relevant business access logs shall be kept.

 

1.3.6 Regularity

 

RUP is a kind of iterative, framework-centered and case-driven software development method. It clearly defines people’s responsibilities and how and when to complete all tasks. It also defines the structure of software development life cycle and the relation between milestone and decision. The guidelines are as follows:

 

·     Resolve major risks continuously and as early as possible

 

·     Ensure to satisfy users’ needs

 

·     Focus attention on executable software

 

·     Adapt to changes in the project as early as possible

 

·     Determine an executable framework at early stage

 

·     Use components to build system

 

 

·     Build a highly efficient development team

 

·     Always attach importance to quality

 

1.3.7 Compatibility

 

The system uses PHP script for development which has both good cross-platform ability and compatibility. In database access technology we use XML to separate. All SQL statements are defined by XML, thus there is no need to program database access statements in the application,. As a result, the application has nothing to do with backstage database. When database products change, only SQL defined XML file is needed to be initialized.

 

1.4 Development Features

 

1.4.1 Technical Basis of the Platform

 

Using open source PHP’s latest framework technology, this platform takes advantage of existing mature ACL mechanism, fast and flexible templates and in-built security mechanism to provide effective guarantee for rapid response to user’s purchase and secure transaction mechanism.

 

This platform selectively absorbs international advanced technology. After fully understanding the core technology, it takes in and integrates the essence with local application, avoiding simply copying or blind use.

 

Our features are formed through many times of actual adjustment: reasonably adopts advanced technology, minimize user’s purchase cost, reduce risks of self development by using mature technology and make the system more stable and reliable. In real-time technology we have reached most advanced international level by using TIBCO information bus technology.

 

1.4.2 High-performance Data Access

 

For data storage we use Berkeley DB, an open source embedded database library developed by American Sleepycat Software Company. It provides application programs with scalable, high-performance data management service with service protection function. Berkeley DB provides data access and management with a set of concise function call API interface. As a classical C-library mode toolkit, it also provides programmers with abundant function sets and industry-level database design service. The main features are as follows:

 

Embedded: it directly links to the application program and runs in the same address space as the program. So the database requires no communication between processes whether it is among different computers on the network or different processes of the same computer.

 

Portable: it can run in almost all UNIX and Linux systems and variant systems, Windows operation systems and multiple embedded real-time operation systems. It supports 32-bit and 64-bit systems and has been widely used in many high-end Internet servers, desktops, palm computers, set-top boxes, network switches and other application fields. Once Berkeley DB is linked to application program, end users usually won’t feel the existence of a database.

 

Scalable: this has been shown in many aspects. Though database library is very concise (less than 300kb of text space), the database scale it manages can reach to 256TB. It supports high concurrency, so thousands of users can operate the same database at the same time. Berkeley DB can be run in strictly limited embedded system with small enough space occupation. It also can be run in high-end server only consuming several TB memory and disk space.

 

 

Berkeley DB performs better than relational database and object-oriented database in embedded application for two reasons as follows:

 

(1) Database application library and application program run in the same address space, thus database operation does not require communication between processes. Costs for communication between different processes of the same computer or between different computers in the network are much higher than those for function call.

 

(2) Berkeley DB uses one group of API interfaces for all operations, thus there is no need to resolve certain query language or generate implementation plan, which greatly raises running efficiency.

 

1.4.3 Fast and Flexible Cache System

 

Through Memcached’s high-performance distributional memory object cache system, frequent data can be stored in memory in application dynamically to effectively speed up access and reduce database load.

 

By maintaining an unified huge hash form in memory, Memcached can be used to store many formats of data, including images, videos, files and database search results.

 

Memcached balances any amount of opened links through libevent. It uses non-blocking network I/O to realize reference counting for internal object (so objects can be in multiple states for various clients), and uses own page allocator and hash form so that virtual memory won’t produce segments and the complexity of time allocated by virtual memory can be ensured to be 0.

 

By using Memcached, the system introduces information of popular transaction product, user’ basic and sessions into memory to accelerate the system’s response speed improve efficiency and user experience.

 

1.4.4 Interaction Mechanism for Secure Data

 

The Web service provided by the system for external transaction interface uses Https protocol for communication, and uses SSL encryption to guarantee data confidentiality. Digital signature and encryption technology are used in transaction data and account files, thus further guarantee data confidentiality, integrity and non-repudiation and avoid data counterfeiting and tampering.

 

HTTPS is security-oriented HTTP channel. Simply put, it’s a secure version of HTTP, i.e. SSL layer is added in HTTP, which forms the security basis of HTTPS.

 

Located between TCP/IP protocol and various application layer protocols, SSL protocol provides data communication with security support. SSL protocol consists of two layers: SSL Record Protocol: it is built on reliable transmission protocol (like TCP) and provides high-level protocols with data packaging, compression, encryption and other basic functions support. SSL Handshake Protocol: it is built on SSL Record Protocol and used for both communication sides to authenticate identity, consult encryption algorithm and exchange encrypted keys before real data transmission.

 

The main services provided by SSL protocol include:

 

1) User and server authentication to ensure that data is transmitted to correct client and server;

 

2) Encrypt data to prevent data interception in halfway;

 

3) Maintain data integrity to ensure data won’t be changed during transmission.

 

 

1.4.5 Flexible Configuration and High Scalability for Service Function

 

The generation of all function pages on software platform is controlled by a service function placer hidden in page head file. So all function columns seen in browser are dynamic and changeable, and the name, content and location of the columns can all be adjusted and controlled via backstage management interface. The service column placer is a mechanism combining “exhibit” and “panel”. The “exhibit” is each function column and the “panel” is art engineer development page. The function placer makes the network interface maintenance extremely easy.

 

In addition, we’ve also introduced what we call “navigating sand table” technology. As a navigating mechanism hidden in page head, the “navigating sand table” is not only related to current user’s identity but controlled by website or content provider as if product exhibition in a shop and counter layout are controlled by the store owner.

 

In short, we can provide this software service system with mechanism with flexible service configuration so that it can calmly face market change and adjust and expand service at any time during long term operation in the future.

 

1.4.6 Featuring Functions Overview

 

1.4.6.1 Data Exploration Function (FAQ)

 

In the development of this system, we’ve adopted data exploration function for information base and user profile base to improve service quality and enhance automatic progress of business ;on the one hand,  by automatic analysis of customer property through the system, the function can explore regular consumption pattern from customer base and recommend the same type of services to their correspondent customers; on the other hand, the function explores the regular pattern of individual customer and recommend other consumption services to the individual customers based on the same type of customer consumption situation, as a result, customer consumption accuracy and increment greatly and significantly reduces marketing and promotion costs.

 

1.4.6.2 Cross-platform

 

Exclusive cross-platform development to satisfy business development demand, which specifies in the following two aspects:

 

1. Multiple platform alternatives for follow-up program development

 

2. Alternative for business function module operation platform

 

1.4.6.3 New Business Expansion Function

 

This system adopts the development theory of the same type of  rule formula expression in structured development and indicates major content update likely to be brought by business development with relevant type library. By using type library plus explanation actuator can reduce the system modification work brought by key stage upgrading to the greatest extent.

 

1.4.6.4 Large Capacity and High Load Function

 

This system uses large database combined with multi-level management and index to reduce business bearing of single system unit to the greatest extent. It also uses modular development and allocates different business into different business modules to distribute loads, and uses same type public interface for data communication to minimize modification workload during system upgrade.

 

 

1.4.6.5 Strong Guarantee of Project Progress

 

We have conducted demand investigation and careful development for nearly 3 months. After proper adjustment based on needs, we can ensure the system will be implemented within planned time.

 

In detailed development we use ROSE tool for business interface development.

 

Please see Chapter Two for type and interface.

 

1.5 Development Methods

 

In this information software project we adopt incremental development mode.

 

In China the waterfall development model is generally adopted. When system design is completed, the development task will be divided into several modules to be developed separately by different programmers. All modules will be performed jointly debugging and assembly after completion. However, this development model exists huge risk in terms of jointly debugging which usually causes huge amount of rework or cannot find the cause of bugs, leaving project period uncontrollable. The incremental development model we adopt is the very development model that is currently adopted by many famous international software companies (such as Microsoft). While the modules are divided, short-term interim plans shall be prepared. The jointly debugging is performed once the core source codes of each module are completed and testing staff begin to take over the testing task and keep synchronization of development and testing. As fast as one version per week can be released and zero bug versions can also be interim released. The whole software project shall incrementally grow. A stable version shall be available once reaching certain project period, and the internal core is very strong, which reduces development risks.

 

Chapter 2 System Function Development

 

2.1 System Structure

 

2.1.1 System Logic Structure

 

[Graphics]

 

2.1.2 System Structure Chart

 

[Graphics]

 

System Description

 

The whole system consists of three sub-systems: product sales sub-system, business management sub-system and customer service management sub-system.

 

a) Product sales sub-system

 

i) Interface authentication module

 

ii) Business scheduling module

 

iii) Business management module

 

iv) Product management module

 

v) Unified billing management module

 

 

vi) Data storage module

 

vii) System monitoring module

 

viii) Log management module

 

b) Business management sub-system

 

i) Product management module

 

ii) Order management module

 

iii) Data analysis module

 

iv) Financial information module

 

v) Cooperative promotion module

 

vi) Account management module

 

c) Customer service management sub-system

 

i) System configuration module

 

ii) Work order management module

 

iii) Order query module

 

iv) Statistics analysis module

 

v) Complaint recording module

 

vi) Customer service report module

 

vii) FAQ

 

viii) Personal configuration

 

2.2 Product Sales Sub-system

 

2.2.1 Description

 

·                      Provide different business processes to satisfy the needs of all marketing activities

 

·                      Provide unified product payment entrance to satisfy all kinds of payment methods such as mobile phone and bank card.

 

·                      Provide delivery management for digitized product including delivery, sold products updating, expiry of using time, refund and obsolete products.

 

·                      Provide improved payment methods including mobile phone payment, credit card, debit card and Shenzhouxing.

 

2.2.2 Core interaction Logic

 

[Graphics]

 

 

2.2.3 Key Design Points

 

·                      Separation of business logic and product access

 

·                      Third party payment interaction with independent module, easy to expand and go offline

 

·                      Entrance security authentication with independent private key encryption authentication and independent IP request limitation

 

·                      Sales data is put into BDB after encryption. BDB’s hash algorithm will be used to obtain sales data. The algorithm used in BDB is extended linear hashing which can be appropriately adjusted according to the increase of hash form.

 

2.3 Business Management Sub-system

 

2.3.1 Description

 

·                      Provide cooperation partners with product management including product adding and updating

 

·                      Provide cooperation partners with sales data analysis including detailed sales breakdown, sales volume and data comparison.

 

·                      Provide cooperation partners with financial data analysis and comparison

 

2.3.2 Core Interaction Logic

 

[Graphics]

 

2.3.3 Key Design Points

 

·                      Large amount of data summary and analysis. Reasonable designing of data structure and optimizing of data query.

 

·                      Plant design model shall be used for business handling type and inheriting of basic type

 

·                      All function modules are independent with clear type interface and functions

 

2.4 Customer Service Management Sub-system

 

2.4.1 Description

 

·                      Provide cooperation partners with work order processing workflow. Question submitting and checking of work order processing procedure.

 

·                      Provide the function for customer center to gather and resolve problems in sales

 

·                      Provide function of multiple authorization for multiple user

 

·                      Provide problem categorization and analysis

 

 

2.4.2 Core Interaction Logic

 

[Graphics]

 

2.4.3 Key Design Points

 

·                      Resolve multiple authorization for multiple users by grouping the same type of users and defining each group as same type of roles and giving each role different authorities

 

·                      Design workflows to allocate work orders to groups that can handle them and wait for work orders to be processed and completed

 

·                      The system can automatically categorize the same type of problems based on certain rules

 

2.5 Development of Product Sales Module

 

2.5.1 Interface Authentication Module

 

2.5.1.1 Function Description

 

The interface authentication module verifies requests from different sources for security and legality. When users place orders on the shopping mall or cooperation partners’ product exhibition pages, the system will verifies their IPs, number of requests, sent data and encrypted data according to the initial requests. If the requests are legal, the system will allow them to enter next processes; if not, further access will be prohibited.

 

2.5.1.2 Flow Chart

 

[Graphics]

 

2.5.2 Business Scheduling Module

 

2.5.2.1 Function Description

 

Business scheduling module controls the whole process logic scheduling and supports single entrance scheduling. Based on different business requests, it will retrieve different business templates and corresponding product stock-out, then retrieve correspondent third party payment channel through unified payment interface according to the payments that users select.

 

2.5.2.2 Flow Chart

 

[Graphics]

 

2.5.3 Business Management Module

 

2.5.3.1 Function Description

 

Business management module is responsible for all business logic realization, such as new product promotion and giveaway activities. Formed by components, this module is featured with easy scalability, flexible addition and deletion

 

2.5.3.2 Flow Chart

 

[Graphics]

 

 

2.5.4 Product Management Module

 

2.5.4.1 Function Description

 

Product management module is responsible to manage storage of all products, including product stock-in, retrieval, update and inventory details. This module is only responsible for product scheduling other than analyzing or processing external user’s scheduling behavior. This makes the function more clear.

 

2.5.4.2 Flow Chart

 

[Graphics]

 

2.5.5 Unified Billing Management Module

 

2.5.5.1 Function Description

 

As one of the core modules of the transaction platform, this module is responsible for interface contacting with all third party payment platforms and guaranteeing the security, correctness and uniqueness of billing.

 

This module performs in the following processes: first, swap the proper communication protocol according to the payment that user chooses, and send billing requests to the third party payment platform; after receiving the request, the third party payment platform deals with the request and inform the requester of the processing result; the requester responds according to the results that’s received.

 

2.5.5.2 Flow Chart

 

[Graphics]

 

2.5.6 Data Storage Module

 

2.5.6.1 Function Description

 

Domain storage includes consumption information storage, user profile storage and system data storage. In terms of consumption information storage, it supports the high efficient storage for multi-media files such as documents, files, pictures, audio and flash, with multi-layer index and cache mechanism, the information retrieval time has been greatly shortened, the function of inter information manual and automatic association enables the dynamic adjustment for statistics of customer’s consumption association degree.  In terms of user profile storage, it guarantees the third-level inventory model and automatic soft-backup function. In terms of system data storage;

 

2.5.6.2 Flow Chart

 

[Graphics]

 

2.5.7 Log Management Module

 

2.5.7.1 Function Description

 

This module provides complete information sending and receiving log record function.

 

The module’s processing speed and efficiency should meet system peak value requirement and can provide the log record function of sending 10 million SMS per day and 500 SMS per hour at the peak value. There should be enough reservation for storage space. All data should be kept at least 6 months. This module should support log distributional function by area and time. Multiple log keeping ways should be supported to satisfy different query methods. It should be convenient to export logs in order to convert log keeping ways. The index should be improved to

 

 

conveniently query records.

 

2.5.7.2 Flow Chart

 

[Graphics]

 

2.6 Development of business management module

 

2.6.1 Product management module

 

2.6.1.1 Function description

 

The product management module consists of product launch, product list and product inventory. This module enables you to launch new products, stop the sale of products at any time and check the stocks, greatly facilitating the normal managerial staff to know the current status of all products.

 

2.6.1.2 Structure diagram

 

[Graphics]

 

2.6.2 Module of order management

 

2.6.2.1 Functional description

 

The module of order management consists of template of order inquiry, sales statistics, and message reply. With this module, you can conveniently confirm the status, i.e. pending order, completed order or refunded order, of a specific order through query and count the sales status of a specific period, which shall help the operational staff to know the sales situation of the product in question.

 

2.6.2.2 Structural diagram

 

[Graphics]

 

2.6.3 Module of Data Analysis

 

2.6.3.1 Functional description

 

Module of data analysis consists of traffic statistics, sales comparison, comparison over the same period, sales mix. Through graphics and tables, data change of sales and traffic of marketing page is intuitively represented, facilitating operational staff to apply different strategy according to data comparison.

 

2.6.3.2 Structural diagram

 

[Graphics]

 

 

2.6.4 Module of Financial Information

 

2.6.4.1 Functional Description

 

Module of financial information consists of monthly statement, account details and account statement. With information in this module, partners are able to know their profit, settle accounts and prepare report form, facilitating financial staff to analyze profit of product sales.

 

2.6.4.2 Structural diagram

 

[Graphics]

 

2.6.5 Module of Cooperative Promotion

 

2.6.5.1 Functional Description

 

Module of cooperative promotion consists of cooperative code promotion, product recommendation and promotion plan. This module enables you to carry out cooperative product promotion, facilitating partners to learn the newest cooperative product at any time, and to fully exploit resource to achieve jointly promotion and mutual benefits.

 

2.6.5.2 Structural diagram

 

[Graphics]

 

2.7 Development of Customer Service Management Module

 

2.7.1 Module of System Setting

 

2.7.1.1 Functional Description

 

This module consists of setup of department, and user department, setting of user authorization and system authorization.  Because the large amount of customer service staff and the fact that different teams are responsible for the different modules, therefore, this module is applied to authorization settings, through which different staff has different authorization depending on his role.

 

2.7.1.2 Structural Diagram

 

[Graphics]

 

2.7.2 Module of Work order Management

 

2.7.2.1 Functional Description

 

This module, designed on the basis of workflow, consisting of work order creation, work order list, work order inquiry and work order statistics. Since user’s problems may require different departments’ cooperation and joint efforts, user consultation is processed as a work order.

 

2.7.2.2 Structural Diagram

 

 

2.7.3 Module of Order Inquiry

 

2.7.3.1 Function Description

 

This module consists of order inquiry, product redistribution and product redistribution. With this module, customer service staff is able to inquire related information about user’s purchase information, facilitating them to answer questions.

 

2.7.3.2 Structural Diagram

 

[Graphics]

 

2.7.4 Module of Statistical Analysis

 

2.7.4.1 Functional Description

 

This module consists of consulting amount statistics of consulting amount and comparison of consulting amount and comparison over the same period. According to selected statistics, result can be represented by different ways, for example through like figure, pie chart, etc., facilitating to reflect problem in time.

 

2.7.4.2 Structural Diagram

 

[Graphics]

 

2.7.5 Customer Service Report

 

2.7.5.1 Functional Description

 

This module consists of daily report, weekly report, monthly report and data download. According to the different demands, result is represented in form of report, facilitating download and analysis.

 

2.7.5.2 Structural Diagram

 

[Graphics]

 

2.7.6 FAQ

 

2.7.6.1 Functional Description

 

Through summarizing, classifying and listing the frequently asked questions (FAQ), this module can be added,

 

 

modified and deleted and classified by different product categories.

 

Chapter 3 Project Management and Execution Program

 

3.1 Method of Project Management

 

Project scope Management: ensure the completion of the project without any deviation that may result in the waste of sources.

 

Project initiation: the project is officially begun.

 

Scope guidance: make a scope specification which forms the cornerstone of future project decision.

 

Scope definition: divide deliverables of the project to be small parts, which is easier to be managed.

 

Scope confirmation: scope of the project is officially accepted

 

Control of scope change: control change of the project scope

 

Project management consists of the following parts:

 

Project process

 

Process group

 

Interaction among processes

 

Interaction among customization processes

 

Project Comprehensive Management

 

Project comprehensive management includes the processes required to ensure coordination among all the elements of the project, connecting with how to achieve balance between competitive target with solution to meet or even beyond the requirements and expectations of stakeholders of the project. Here we focused on the process, tool and technique used to manage interaction of project processes. For example, when cost estimate is carried out in a plan, or risk associated with member change required to be identified, the project comprehensive management comes in handy. In order to ensure the success of the project, project comprehensive management shall be also applied in many other fields.

 

3.1.1 Project Organization

 

3.1.1.1 Project Leading Team

 

(1) Personnel composition:

 

Zhang Wei, technical director of Qizhi (Beijing) software Co., Ltd.

 

Yang Zuoyuan serves as the team leader. .

 

 

(2) Responsibility:

 

Review and approve overall plan and implementation plan of the project.

 

Be responsible for making vital decision during implementation of the project.

 

Execute macro control according to progress, quality, technology, resource and risk.

 

Be responsible for assembling acceptance team and holding the acceptance.

 

Coordinate relations of all parts that are associated with the project.

 

3.1.1.2 Project Execution Team

 

(1) Personnel composition:

 

Zhang Wei, project chief of sales supporting system for cyber digital product, serves as leader of the team.

 

Team leaders of project development team, file management team, quality control team, project experts are involved in.

 

(2) Responsibility:

 

Make working plan according to project progress and work requirement, monitor the implementation and control progress.

 

Coordinate the cooperation of personnel of different project teams and resource allocation.

 

Propose and determine the overall need of the business, complete system analysis and overall system development.

 

Be responsible for setting standard of periodical acceptance and final acceptance, and submitting it to leading group for approval.

 

3.1.1.3 Project Development Team

 

(1) Personnel composition:

 

Developer from Qizhi software (Beijing) Co., Ltd., Yang Zuoyuan serves as leader of the team, while Li Yanfeng serves as the deputy leader.

 

(2) Responsibility:

 

Be responsible for the overall development, code development, interface development, system jointy debugging. .

 

Organize technical training for users, including filed training and teaching. etc.

 

3.1.1.4 Document Management Team

 

(1) Personnel composition:

 

managerial staff from the two parts, who are familiar with engineering.

 

 

Secretaries from the two parts

 

Technical staff with management experience from Qihoo serves as the team leader while personnel from Qizhi software (Beijing) Co., Ltd. serves as the deputy leader.

 

(2) Responsibility:

 

Make plan of configuration management for the project.

 

Implement configuration management according to the project plan, identify and track the configuration. Make every change of the project in control and ensure all the teams to get the newest material about progress of the project in time.

 

Resource management: human resource allocation and purchase, allocation and use of tools required by the engineering.

 

Document Management: collect and compile documents of different types according to their generating data. Control document format, create document list, and manage document version and lending and handover with user as well.

 

3.1.1.5 Quality Control Team

 

(1) Personnel composition:

 

Personnel, who have management experience and are familiar with ISO9000 management standard.

 

Technical director of Qizhi software (Beijing) Co., Ltd. and personnel with project management experience from Qihoo Technilogy

 

(2) Responsibility:

 

Monitor quality management during the project.

 

Assist project execution team to carry out periodic evaluation on project.

 

Supervise the correction of identified potential quality problem.

 

Report to execution team regularly about the work monitoring, pointing out the existing problem and proposing solution.

 

3.1.1.6 Acceptance Team

 

(1) Personnel composition:

 

Be temporarily composed by project leading team before the periodic acceptance or final acceptance.

 

Acceptance team consists of personnel from Qihoo Technology, Qizhi software (Beijing) Co., Ltd. and expert from the third party.

 

Project leader form Qihoo Technology serves as leader of the team, while Qizhi software (Beijing) Co., Ltd. serves as the deputy leader.

 

(2) Responsibility:

 

 

Carry out acceptance in accordance with the acceptance standard set by project execution team.

 

Carry out periodic acceptance of project.

 

Generate acceptance report, and then submit the report to leading team for approval.

 

3.1.2 Expense Control Method

 

Cost management refers to processes required to ensure the completion of every stage of the project within the approved budget. Overview of the main process of cost management is as follows:

 

Resource planning: determine the resource (human, equipment and material) required for completion of all the work of the project and overview of every kind of resource.

 

Expense estimate: approximate resource expense estimate that required for the completion of every stage of the project.

 

Expense budget: allocate the total expense estimating to individual work.

 

Expense control: control the change of project budget.

 

3.1.3 Quality Assurance System

 

Project quality management refers to processes required to ensure the project to meet its demand. It consists of making quality policy, aim and responsibility and all the other activities made to ensure the overall implementation through quality plan, quality control, quality assurance and quality improvement. Overview of quality management process is as follows:

 

Make quality plan: make the related quality standards with the project, and in which way they should be applied.

 

Quality assurance: regularly evaluate overall implementation situation of the project to make people confident that the project meets related requirement of related standard.

 

Quality control: monitor whether the result of specific work is in line with the relevant quality standard and work out methods to eliminate the cause of the unsatisfying implementation result.

 

3.1.4 Time Control Method

 

Make sure that the project is completed within the time specified in development plan (refer to appendix 3).

 

3.1.5 Project Risk Management

 

Project risk management refers to the process to identify, analyze and cope with the project risk, in order to maximize the positive effect and minimize the negative effect:

 

Risk identification: identify the risk that may affect on the project and compile a file on its characteristic.

 

 

Risk quantification: assess possible results of the project through evaluating the risk and interaction among risks.

 

Development of risk response measure: work out steps to expand opportunity and the threat response measures.

 

Control of risk response: response to the change of risk during the project.

 

3.1.6 Project Communication Management

 

Project communication management includes the processes required to guarantee the prompt and proper generation, collection, release, storage and final process of project information. It is a key bond that connects people, idea and information together and a necessary element for success. Every one involved in the project must prepare to send and receive information through a project “language”, and understand how they affect on the whole project by the information they handle as an individual. Overview of the main process is as follows:

 

Make information plan: determine the information of the project beneficiaries and their communication requirement, i.e. what kind of information do they need, when and how to provide them the information.

 

Information release: provide the project beneficiaries with necessary information promptly.

 

Report on implementation situation: collect and release information about implementation situation, including report on current situation, progress measurement and predication.

 

Administrative Closure: generate, collect and release information about periodic result or completion of the project.

 

3.1.7 Human Resource Management of the Project

 

Human resource management refers to the process by which all the involved personnel in the project is used in a most effective way, including making plan of all the beneficiaries, initiator, customer, individual contributor and other parties involved in the project, namely, determine, create and allocate project task, functional authority and reporting relationship.

 

Personnel recruitment: get the human resource necessary for work of the project.

 

Team development: develop skill of individual or the team to enhance implementation of the project.

 

At the same time, including:

 

Combining the leadership, communication and negotiation etc. discussed in management skill.

 

Assignment, motivation, training, monitoring, guidance and other activities in connection with individual.

 

Team development, conflict handling and other activities in connection with the team.

 

Evaluation of implementation situation, recruitment, maintenance, labor relation, health care and safety regulations and other activities in connection with functional management of human resource.

 

 

Chapter 4 Service and Training

 

4.1 Service

 

Service organization

 

Qizhi software (Beijing) Co., Ltd. holds full responsibility for the development and service of this supporting system for sales of cyber digital product.

 

Project leading team is responsible for the overall control of organization, specifically, technical director from Qizhi software (Beijing) Co., Ltd. serves as general director of the service team and all team leaders participate service teams, and designate technical staff for implementation.

 

Detailed service includes content and items of pre-sales, sales and after-sales service (especially the problems in connection with system upgrade and software upgrade etc.).

 

Detailed service content of Qizhi software (Beijing) Co., Ltd. includes:

 

Pre-sales service: introduce technical characteristics, provide solutions, explain technical details, functions and safety features, cross-platform technology characteristics of the system and introduce maturity and great growth potential of the system..

 

Sales service: prior to development, Party B should submit project development plan, once moved into development process, Part B should submit progress report every week and be underwent inspection of work and detail investigation carried out by Part A. After completion of the software development, Part B should submit user manual, system development specification, detailed development specification, test plan, conventions of all source program and source code. After test, two parties shall co-write a test report.

 

After-sales service:

 

Adopted service methods

 

Mainly adopt the field service and remote service.

 

(4) Terms and commitment of service

 

Maintenance term starts from the day when software system passes the acceptance and lasts three years in which free maintenance is provided.

 

There are two maintenance modes: field maintenance and remote maintenance.

 

During maintenance, one person should be assigned to be responsible for the maintenance of the project.

 

After expiration of the maintenance period, Part B should ensure the safety, stability and reliability.

 

 

4.2 Silver Service Plan

 

We always adhere to the aim of “Customer first and Service foremost”. At the time we actively exploit market, the technical support and service for users are highly valued. we have built a specialized after-service team and made a whole set of comprehensive, perfect service solution. Through incessant practice and experience, our technical support plan is constantly improved. This plan includes the following content:

 

4.2.1 Hotline Support Service (7*24hrs)

 

·                                No limitation on number of times: once there is a problem in your system, please feel free to call our service hotline “service hotline”;

 

·                                Your call has the top priority for our staff, which means we will handle your call for help as a priority until a satisfied result is gotten.

 

4.2.2Remote Dial-in Analysis

 

Statistics and analysis suggests that no less than 70% of the system failure in IT industry is caused by issues related to software and configuration, helping users resolving this kind of problems by remote dial-in analysis has greatly improve the diagnosis speed and work efficiency, leading to less maintenance cost.

 

Nowadays, growth in network makes this method possible, therefore, once getting permission from the user, our engineers are able to quickly and directly diagnose and resolve the failures through the remote dial-in.

 

4.2.3 Field Support Service (7*24 hrs)

 

When the fault in your system is identified to be irreversible, our field engineer will take related material to site to perform emergency repair. Our commitment is: take the nearest flight or train (or even special bus if necessary) to minimize the fault time of the system.

 

4.2.4 Priority Level and Response Speed

 

When your system failure arises, you can determine the priority level and response time from support and service center, specifically, the following three priority levels are available: emergency (system is unavailable), serious (system is seriously damaged) and not serious, based on which a corresponding response rate is determined (based on the departure time).

 

	
Response time:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Priority   determined by user
    	
 
    	
Call   response
    	
 
    	
Field   response
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Emergency   (system breakdown)
    	
 
    	
Reply   within 4 hours
    	
 
    	
Within   1 workday
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Serious   (serious system malfunction)
    	
 
    	
Reply   within 8 hours
    	
 
    	
Within   2 workdays
    

 

 

	
Not   serious ( minor system fault)
    	
 
    	
Reply   within 24 hours
    	
 
    	
Within   3 workdays
    

 

4.2.5 Regular Visit

 

In our opinion no adequate attention has been paid to this section, while it is very important for the following reasons:

 

·                  There exist certain potential problems which would be greatly extend fault-free operation time if they were identified earlier.

 

·                  To those problems which are too tiny to gain any attention, we will provide you with our suggestion based on our experience;

 

·                  Sometimes, the performance is not satisfying despite that no obvious fault is found in the software system, for which we give suggestion on improvement of system configuration or system extension solution for reference.

 

Based on the above-mentioned reasons, we will make a visit and communication system along with users and provide you with the following contents:

 

·                  Routine examination of the system and the surrounding environment;

 

·                  Patch and maintenance version of the software;

 

·                  Introduction of the newest product and information of industry trend;

 

·                  Experience of other users.

 

Service and technical support is the strategic issue to help enterprise development in competition, which has always been valued by us. We solemnly promise to constantly provide users with best service.

 

4.3 Training Content

 

1)              Detailed training plan

 

Detailed training plan consists of training content, training course, training period, related exam and test, arrangement of training time, training personnel and training site and training expense (free).

 

2)              Scope and content of training

 

Generally, training is divided into three types: application training, technical training and management training.

 

Application training is a free training with focus on application, maintenance of application software developed in the project. The training should be completed within 2 months after the development and aimed to ensure that related technical staff in Qihoo Technology is able to proficiently use and maintain the software.

 

Technical training refers to the training of PHP, APACHE and other related technologies. Qizhi software (Beijing) Co., Ltd. will make full use of its advantage of training to perform this free training on related technical staff.

 

 

Management training refers to the special management training and certification test recommended by Qizhi software (Beijing) Co., Ltd. for related manager of Qihoo Technology. The training is authorized by US PMP and taught by teachers from America (with interpreter), after which trainee will take a certification test together in order to get the certificate with globally recognized utility and value.

 

3) Organization form of training

 

Considering that staff of Qihoo Technology is busy, organization of the training is led by Qizhi software (Beijing) Co., Ltd., while Qihoo Technology designates personnel to contact relevant personnel. Generally, the appointed training could not be changed, and if certain trainee is not able to be present, there will be no second chance.

 

4) Guarantee of training effect

 

Qizhi software (Beijing) Co., Ltd. is responsible for guaranteeing the training effect of application training; initiator from Qizhi software (Beijing) Co., Ltd. is responsible for monitoring the quality of technical training with technical staff being available for counseling if necessary (through a relatively flexible form) and the quality of management training as well.

 

 

Appendix 2

 

Appendix 2: Confirmation for Acceptance of Cyber Digital Product Supporting Platform System

 

Project name: Supporting platform system for operation of cyber digital product

 

Acceptance date: YY-MM-DD

 

	
Name of functional module
    	
 
    	
State description
    	
 
    	
Signature of person in charge
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.   Module of interface authentication
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.   Module of business scheduling
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.   Module of business management
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.   Module of product management
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.   Module of unified billing management
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.   Module of data storage
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.   Module of system monitoring
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.   Module of log management
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.   Module of product management
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.   Module of order management
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.   Module of data analysis
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.   Module of financial information
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.   Module of cooperative 
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 
    

 

 

	
promotion
    	
 
    	
 
    	
 
    	
Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.   Module of system setup
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.   Module of work order management
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.   Module of order inquiry
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.   Module of statistics analysis
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
18.   Module of complain recording
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
19.   Module of customer service report
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
20.   Module of frequently asked question
    	
 
    	
Meet   the requirement, acceptable.
    	
 
    	
Party   A: 

Party   B:
    

 

Module summary:

 

Meet technical and functional requirement, acceptable!

 

Signature of system acceptance:

 

	
Person   in charge from Party A: 
    	
Person   in charge from Party B: 
    
	
 
    	
 
    
	
YY-MM-DD
    	
 
    	
YY-MM-DD
    	
 
    
				

 

System summary:

 

Meet technical and functional requirement, acceptable!

 

 

Appendix 3

 

Appendix 3: Development Plan of Online Digital Product Operation Platform System

 

Development method and process of the system

 

Two-dimensional development model based on rational unified process (RUP)

 

RUP software development life cycle is a two-dimensional software development model. Horizontal axis is time organization, which is the life cycle characteristics of process expansion, reflecting the dynamic structure of the development process, and mainly described by such terms as period, stage, iteration and milestone; vertical axis refers to logical activity represented through content organization, reflecting the static structure and is mainly described by such terms as activity, product, worker and workflow. As the figure below:

 

[Graphics]

 

Planning of System Development Stage

 

1. Primary Stage

 

Primary stage is aimed to build the business case and determine scope of project for the system. In order to achieve the goal, all the external entities that is interactive with the system must be identified, and define the interactive feature from a relatively high level. This stage is very import for its focus on key risk in business and demand during the whole project. Completion of the primary stage is a milestone: evaluate the basic viability of the project.

 

2. Tessellate Stage

 

Tessellate stage is aimed to analyze scope of problem, establish a sound architecture base, make a project plan, eliminate element with the highest risk from the project. In order to achieve the goal, the architecture must be determined based on the understanding on the whole system, including its scope, main function and such nonfunctional requirements as performance. At the same time, establish supporting environment for the project, including create development case, create template and principle and prepare tool. Completion of tessellate stage is the second important milestone: establish management standard for structure of the system, based on which project teams are able to carry out measurement. At this time, it is necessary to examine the detailed goal of system, selection of scope and structure and solution for main risk.

 

3. Architecture Stage

 

At the architecture stage, all the rest components and application software are developed to integrate to be a product, and all the functions are comprehensively tested. In a sense, architecture stage is a manufacture process focused on management of resource and control of operation to optimize cost, progress and quality. The architecture stage is the third important milestone: determine whether the product can be deployed in testing environment. At the moment, identify whether software, environment and user can start the system. The version of the product at this moment is called as “beta” version.

 

4. Delivery Stage

 

The delivery stage is aimed to ensure the software is applicable for the end user. The stage may be across multiple

 

 

iterations, including product test before issue and some adjustment based on feedback from user, which at this point is mainly related with product adjustment, setting, installation and usability. All the main structure problems are expected to be solved in the early stage of the life cycle of the project. The delivery stage is the fourth important milestone: product launch. At this moment, it should be determined whether the goal can be achieved; another development cycle should be started. In some cases, this milestone may match together with the completion of primary stage of the next cycle.

 

Detailed Development Plan of the First Phase

 

General Information

 

The first phase starts from October 1, 2008, and ends up on December 30, 2008, lasting a total of 90 days.

 

[Graphics]

 

Primary Stage

 

The primary stage is mainly aimed to determine business process and scope of the system.

 

[Graphics]

 

Tessellate Stage

 

This stage is mainly aimed to solve the technical risk of the system, define function of the system and build platform.

 

[Graphics]

 

Architecture Stage

 

In this stage starts the large-scale development

 

[Graphics]

 

Delivery Stage

 

[Graphics]

 

Framework of the Development Plan of the Second Phase

 

The second phase starts from February 01, 2009, and ends up on July 30, 2009, lasting a total of 180 days.

 

[Graphics]

 

Framework of the Development Plan of the Third Phase

 

The third phase starts from September 01, 2009, and ends up on March 06, 2010, lasting a total of 180 days.

 

阶段 Stage

 

初始化阶段 Primary stage

 

细化阶段 Tessellate stage

 

 

[Graphics]

 

Framework of the Development Plan of the Fourth Phase

 

The fourth phase starts from September 01, 2009, and ends up on March 06, 2010, lasting a total of 180 days.

 

[Graphics]

 

 

Appendix 4

 

Cyber Digital Product Operation Platform Supporting System

 

Confidentiality Agreement (Appendix 4)

 

Party A: Beijing Qihu Technology Company Limited.

 

Party B: Qizhi Software (Beijing) Co., Ltd.

 

WHEREAS,

 

1. Party A and Party B (the “Parties”) are developing the “Cyber Digital Product Operation Platform System” (the “Project”);

 

2. Party A engages Party B to carry out the researching and developing activities in the Project;

 

3. During the implementation and cooperation of the Project, each Party will provide the other Party with the relevant confidential information which is lawfully owned by the disclosing party;

 

4. The Parties wish to effectively protect the confidential information defined herein.

 

NOW, THEREFORE, the Parties hereby enter into the following agreements through negotiation:

 

ARTICLE 1 DEFINITION OF CONFIDENTIAL INFORMATION

 

1. All commercial, marketing, technical, operational or other materials and information received by Party B from Party A during the development of the Project hereunder and relating to the Project or generated from the Project, in whatever forms or media, or indicated as confidential by oral, visual or any other written form at the time of disclosure;

 

2. This Contract and all appendices and supplementations attached hereto signed by the Parties, and all software, software directories, documents, information, data, drawings, benchmark tests, technical specifications and trade secrets, and other information exclusively owed by each Party, provided to the other Party and expressly marked as “confidential”, including all items specified as “confidential” in any other contract before or after the date of this Contract;

 

3. The aforesaid confidential information may be embodied in data, words, or materials, discs, software, books or any other physical media containing such information, or may be transmitted in oral or any other visual or audio form.

 

ARTICLE 2 RIGHTS AND RESPONSIBILITIES OF BOTH PARTIES

 

1. The Parties hereby warrant that the confidential information will only be used for the purpose or intention of this Contract.

 

2. The Parties hereby warrant that they will properly keep the confidential information provided by the other Party.

 

 

3. Each Party hereby warrants that it shall keep confidentiality of the confidential information provided by the other Party in accordance with the terms and conditions of this Agreement, and shall apply at least the same protective measures and degree of care that it applies to protect its own confidential information.

 

4. When either Party provides any confidential information, if provided in written forms, it shall mark it with “confidential”; if provided in oral or visual forms, it shall notify the receiving party of the confidential nature of the information prior to the disclosure, and shall make a written confirmation within five days after the notification, including the content identifying the disclosed information as confidential information.

 

5. Each Party hereby warrants that it will only disclose the confidential information to its officers and employees engaging in the Project on a need-to-know basis. Before such person is disclosed the confidential information, each Party shall inform the persons of the confidential nature of such information and the relating obligation, procure such person to be bound by the terms and conditions of this Agreement in written forms, and ensure the obligation of confidentiality undertaken by such persons is not lower than the obligation stipulated herein.

 

6. Upon the request of disclosing party, the receiving party shall return all documents and other materials containing confidential information to the disclosing party or destroy such documents and other materials according to the instructions of the disclosing party. Upon termination of the Project, the disclosing party may give a written notice to the receiving party, demanding the receiving party to return the confidential information.

 

7. The restrictions mentioned above are not applicable to the following circumstances:

 

(1) The confidential information has been lawfully owned by the receiving party on or before the date of this Agreement;

 

(2) The confidential information has been known by the public or is in the public domain before it is provided to the receiving party;

 

(3) The confidential information is received by the receiving party from any third party not subject to the confidentiality or non-disclosure obligation;

 

(4) The confidential information has been known by the public or is in the public domain without violation of the confidentiality obligation hereunder;

 

(5) The confidential information is independently developed by the receiving party or its affiliate or association, without benefits from the information provided by the disclosing party or its affiliate or associate;

 

(6) Disclosure of confidential information is required by the court or any other judicial or administrative authority (demand of materials or documents through oral inquiry, interrogation or order, summon, civil or criminal investigation or any other procedure), provided that the receiving party shall immediately give a notice to the disclosing party and make necessary explanation.

 

8. Neither Party warrants the accuracy or reasonableness of any confidential information.

 

9. If any confidential information provided by the disclosing party infringes any intellectual property of any third party, the disclosing party shall indemnify the receiving party against and hold it harmless from all liabilities and claims resulting therefrom.

 

ARTICLE 3 LIABILITIES FOR BREACH OF CONTRACT

 

Failure of either Party in performance of its obligation hereunder shall be deemed as breach of contract. The

 

 

breaching Party shall indemnify the other Party against all losses and damages resulting therefrom. If the non-breaching party considers that the damages for the breach can not provide sufficient remedy, the non-breaching party may also seek injunction, specific performance or any other reasonable remedies.

 

ARTICLE 4 EXCLUSIONS

 

If a Party or the Parties can not perform any obligations hereunder or any part thereof due to any event unforeseeable, inevitable or uncontrollable, including but not limited to earthquake, floods, fire or change of policy, the Parties are not liable to each other; provided that the Party or Parties shall continue to perform this Agreement within a reasonable period after the end of force majeure.

 

ARTICLE 5 The duration of this Agreement shall be four (4) years.

 

ARTICLE 6 SETTLEMENT OF DISPUTE

 

1. All aspects of this Agreement shall be governed by and construed according to the laws of the People’s Republic of China (“China”).

 

2. Any dispute arising from or in connection with the performance or interpretation of this Agreement, if not settled through negotiation, shall be submitted to Beijing Arbitration Commission for final arbitration in accordance with its then effective arbitration rules and arbitration procedures.

 

3. The arbitration proceedings shall be conducted in Chinese.

 

4. The arbitral award shall be final and binding upon the Parties.

 

5. Except as otherwise specified in the arbitral award, the arbitration costs shall be borne by the losing party.

 

ARTICLE 7 Neither Party may amend or modify this Agreement without the written agreement of the Parties, unless otherwise provided for in the state laws.

 

ARTICLE 8 Any issue not covered herein shall be specified in a supplementary agreement duly signed by the Parties. Such supplementary agreement is an integral part of this Agreement and shall have the same legal effect as this Agreement.

 

ARTICLE 9 This Agreement shall be made in four originals, two for each party hereto.

 

ARTICLE 10 This Agreement shall become effective as of being duly signed and sealed by the Parties hereto.

 

	
Party A (Signature/Seal):
    	
 
    	
Party B (Signature/Seal):
    
	
 
    	
 
    	
 
    
	
/s/ Qi Xiangdong
    	
 
    	
s/ Zhou Dewei
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
DateExhibit 10.34

 

This is an English translation

 

Technology Development Contract

 

	
Project Name:
    	
Qihoo   Online Shopping Mall Information System
    	
 
    
	
 
    	
 
    	
 
    
	
Client (“Party A”):
    	
Beijing   Qihu Technology Company Limited
    	
 
    
	
 
    	
 
    	
 
    
	
Developer (“Party B”):
    	
Qizhi   Software (Beijing) Co., Ltd.
    	
 
    

 

Signing place: Chaoyang District, Beijing

 

Signing date: March 15, 2009

 

Duration: January 1, 2009 to December 31, 2012

 

 

In order to provide better development services to Party A regarding Qihoo Online Shopping Mall Information System, Party A hereby engages Party B to develop Qihoo Online Shopping Mall Information System. Party A and Party B hereby agree to enter into this Technology Development Contract after friendly negotiation and in accordance with the Contract Law of the People’s Republic of China and other relevant laws and regulations.

 

Article 1   Project Background and Purpose

 

Qihoo Technology is an internet company and has over tens of millions of customers. It has carried out the online sales business for its anti-virus software and established a complete business model. As it is found through market investigation, many digitalized commodities may be sold online, such as software products, software upgrade serial numbers, game cards and prepaid cards, etc. The process of transaction of these digital products can be entirely processed and completed through internet on a real-time basis. The main difference of the digitalized product transaction model, compared to the traditional online e-commerce, is that there is no need of logistic offline. Therefore, it greatly reduces the transaction cost and time, and is handy, easy and instant. Many users are fond of this transaction model.

 

With a view to the demand of users for the transaction of instant application digitalized products, Qihoo Technology wishes to carry out the business of internet software shop based on the business of anti-virus software online sales. However, Qihoo Technology does not have the support for the professional shop management platform, and so it engages Qizhi Software to develop the platform.

 

Qihoo Online Shopping Mall Information System is a large e-commerce platform with full functions, and can solve the following key issues:

 

·                      Simultaneous sale of many types of digitalized products (such as security products, game points, software, etc.);

 

·                      Security issues in the aspects of security certification, monitoring and audit;

 

·                      Automatic setup in the business process;

 

·                      Providing the system automatic operation mechanism, and reducing the losses caused by any error in mistaken;

 

·                      More perfect management function, and providing sophisticated management means such as automatic financial settlement and purchase-sales-inventory management;

 

·                      Providing a Unified external interface, and facilitating the business development and system management in future;

 

·                      Using a flexible and open technical architecture and incorporating a load balancing mechanism, which can facilitate the deployment and expansion of the system

 

Article 2   Content, Form and Requirement of Subject Technology

 

1. Scope of Application

 

Party B will develop Qihoo Online Shopping Mall Information System in various modules according to Party A’s requirements and after the demand analysis. The Parties will test such modules one by one. After all modules are developed, the modules will be interconnected in the whole system. Within three years after the whole system is accepted by Party A, Party B shall ensure the normal and stable operation of the system.

 

2

 

2. Technical Requirements

 

Application Structure

 

[Graphics]

 

System Description

 

The whole system is divided into three parts: online shop website sub-systems, background management sub-system and system support.

 

·                      Sub-systems of Online Shop Website

 

1. Portal website

 

2. Product Purchase

 

3. Renew and Upgrade

 

4. Online Payment

 

5. Customer Service

 

6. Community

 

.........

 

·                      Background Management System

 

Customer Information Management

 

Internal User Information Management

 

Product Information Management

 

Business Setup Management

 

Purchase-Sales-Inventory Management

 

Financial and Settlement Management

 

Customer Order Management

 

Customer Service Management

 

Unified Payment Platform

 

Community Management

 

·                      System Support

 

Safety Certification

 

Log Management

 

Task Scheduling and Control

 

Statistics Analysis & Inquiry Platform

 

Parameter Setup Management

 

3

 

Unified Interface Platform

 

Technical Architecture

 

[Graphics]

 

Qihoo Online Shopping Mall Information System applies a structure of multi-layer application system, including presentation layer, logic layer and data layer. All these layers keep connected in a loose coupling manner.

 

During the course of development, a basic development framework shall be used and the development specifications of each layer shall be followed, to make the whole process of application design and development concise and standardized.

 

·                      Presentation Layer

 

It provides two kinds of front stage structures: MVC model for the traditional B/S application, and AJAX model for the rich client application.

 

·                      Business Logic Layer

 

A transaction accommodation mechanism is used to manage the business logic, and the business logic is divided into command layer, service layer and business component layer.

 

·                      Resources Accessing Layer

 

The platform provides an O/R mapping technology, realizes the transparent database access and provides a Unified interface interconnecting with the external system.

 

Website Topology

 

[Graphics]

 

Article 2 Technical Specifications and Parameters to Be Achieved

 

The acceptance of the system shall be conducted according to the function requirements described in Appendix 1: Qihoo Online Shopping Mall Information System Technology Development Plan; refer to Appendix 2 for the form of acceptance confirmation.

 

Article 3 Development Plan

 

The estimated period of the development project is one year. For details about the definitions and deliverables of each phase, refer to Appendix 3: Qihoo Online Shopping Mall Information System Development Plan.

 

4

 

Article 4 Obligations of both Parties

 

1. Main obligations of Party A:

 

(1) Party A shall pay the compensation to Party B in accordance with this Contract.

 

(2) Party A shall provide Party B with the technical materials, original data and relevant assistance in accordance with this Contract.

 

(3) Party A shall provide Party B’s persons with certain work place at Party A’s premises for system debugging.

 

2. Main obligations of Party B:

 

(1) It shall prepare and implement a development plan;

 

(2) It shall set up reasonable development environment, reasonably connect and set up the development environment according to Party A’s requirements regarding the development system, and shall ensure the system conform to the operation structure of the development system required by Party A;

 

(3) Party B shall complete the development of the system and submit all deliverables in accordance with this Contract.

 

(4) Party B shall ensure the satisfaction of Party A’s requirements, and ensure that the system can achieve the intended functional requirements and technical specifications after it is put into operation; if any specification is provided for in the public standards, it shall not be lower than the domestic or international standards and the technical level can be achieved;

 

(5) During the course of system development and testing, Party B must comply with all safety management rules of Party A, and shall be liable for all consequences resulting from violation of such rules.

 

(6) Party B shall provide Party A with the relevant technical materials and necessary technical guidance, and help Party A grasp the subject project.

 

(7) Party B shall provide Party A with the technical and consulting services, and shall assist Party A in establishing the operation procedures and submit a technology development summary report. Without hindrance to its normal research and development work, Party B shall accept the inspection of Party A regarding the performance of this Contract.

 

(8) Party B shall keep confidentiality of all key data in the system relating to Party A’s business.

 

(9) Prior to the acceptance of the Project, Party B shall give guidance regarding the application technology and software maintenance technology to the relevant persons dispatched by Party A.

 

(10) After the Project is accepted, Party B shall provide Party A with the system maintenance service and shall ensure the normal operation of the system under the subsequent maintenance.

 

(11) During the term of this Contract, Party B shall dispatch special persons to Party A’s site. These persons shall cooperate with Party A in system maintenance and give routine trainings to Party A’s maintenance persons.

 

(12) During the term of this Contract, Party B shall dispatch special persons to provide Party A with consulting services regarding the operation, maintenance and subsequent development of the system.

 

Article 5 Delivery and Acceptance

 

In view of the characteristic of Party A’s business operations, the Parties hereby agree that the Project shall be developed in various modules and such modules shall be delivered in phases. After the completion of development all modules, Party B shall connect those modules to the whole system, and Party A shall accept the whole system and put it into operation.

 

5

 

1. Party B shall deliver the modules to Party A in phases and install, debug, train and maintain the same in accordance with the provisions of Appendix 1: Development Proposal of Qihoo Online Shopping Mall Information System Technology. Party B shall ensure the normal operation of the modules, and ensure the effective connection and operation of the modules after the whole system is finally developed.

 

2. Upon receipt of a notice from Party B, Party A shall conduct testing and acceptance on the modules and the system together with Party B in accordance with this Contract, to accept the qualified modules and system delivered by Party B.

 

3. After Party B deliver the module in each phase, Party A shall promptly conduct acceptance. If Party A considers that there is any defect in the module delivered hereunder, it shall give a written notice to Party B when such module is installed.

 

4. Within three business days after the modules are delivered and installed by Party B in phases and with the assistance of Party B, Party A shall test and accept the modules as per the technical specifications and parameter setup described in the Development Proposal of Qihoo Online Shopping Mall Information System Technology. If it is found that any module delivered by Party B does not conform to the technical specifications and parameters setup, through testing within the time period of testing and acceptance stipulated herein, Party B shall make correction and all costs and expenses incurred therefrom shall be borne by Party B.

 

5. The delivery includes delivery of modules in phases and delivery of the whole system.

 

6. The following persons shall attend at the site when the modules are delivered and connected: project manager, maintenance manager and appropriate module technical manager of Party A, and project manager, appropriate module development manager and installation & debugging manager of Party B.

 

7. The project managers of the Parties shall confirm whether the installation and operation environment of the modules confirm to the relevant standards as per the requirement described in the function demand statement. If either Party objects, the Parties shall confirm such objection in written forms and determine the deadline and plan of such objection.

 

8. Party B’s persons responsible for installation and debugging of the system shall install the modules.

 

9. Where the conditions for installation are not satisfied, Party B’s project manager shall give a notice to Party A. In that case, Party A’s project manager shall solve such problem as soon as possible. Each period of 4 hours in solving the problem shall be accounted as a business day. The subsequent work in Party B’s development plan shall be postponed accordingly.

 

10. If any module can not work normally or the function of any module does not conform to the requirements described in the system function statement, Party A’s project manager may stop operating the module and demand Party B to solve the problem promptly. In that case, Party B shall be subject to the liabilities for the delay caused by such problem.

 

11. After the completion of development of the system, Party B shall deliver and connect the whole system.

 

12. The following persons shall attend at the site when the whole system is delivered and connected: project manager and system maintenance manager of Party A, and project manager and installation & debugging manager of Party B.

 

13. Party A shall setup the relevant hardware equipments according to the requirements for operation of the modules, prepare the technical requirements as listed in the system function demand statement and provide an installation environment for the whole system separated from other systems operated by Party A.

 

14. The project managers of the Parties shall confirm whether the installation environment confirm to the relevant conditions as per the requirements described in the system function demand statement. If either Party objects, the Parties shall confirm such problem in written forms and determine the deadline and plan of such problem.

 

15. Party B’s persons responsible for installation and debugging of the system shall install the whole system.

 

16. Where the conditions for installation are not satisfied, Party B’s project manager shall give a notice to Party A. In that case,

 

6

 

Party A’s project manager shall solve such problem as soon as possible. Each period of 4 hours in solving the problem shall be accounted as a business day. The subsequent work in Party B’s development plan shall be postponed accordingly.

 

17. The Parties shall confirm whether the modules connected to the system are complete or not as per the requirements described in the system function demand statement.

 

18. Party B’s persons responsible for system maintenance shall prepare the interconnection environment.

 

19. Party B’s persons responsible for installation and debugging shall connect the whole system, and the technicians of both parties shall confirm whether such connection is effective or not.

 

20. Party A’s system maintenance manager shall effectively connect the operation environment to the whole system and confirm whether the system is operated normally or not; the corresponding module managers of both parties shall confirm whether the functions of the system confirm to the requirements described in the system function demand statement.

 

21. If the system can not work normally after being connected or the function does not conform to the requirements described in the function demand statement, Party A’s project manager may stop operating the system and demand Party B to solve the problem promptly. In that case, Party B shall be subject to the liabilities for breach of contract accordingly. Additionally, Party B shall indemnify Party A against all losses and damages resulting from abnormality in the operation of the system or inconformity to the requirements described in the function demand statement.

 

Article 6 Cooperation and Sharing of Technology

 

1. After the modules are delivered, Party B shall provide Party A’s relevant persons with the trainings on the operation and maintenance of the modules to ensure the normal operation of the modules, and shall dispatch special persons to give routine maintenance on the operation of the modules at Party A’s site.

 

2. The trainings include group training and onsite training. The site trainings shall be given at Party A’s module operation site and the Party B’s development and simulated operation site.

 

3. The period of group training shall be three days/module.

 

4. Party A shall dispatch its module technical manager, module maintenance manager and module operators to participate in the trainings regarding the module.

 

5. After the system is delivered, Party B shall provide Party A’s relevant persons with the trainings on the operation and maintenance of the whole system for a period of ten days.

 

6. Party A shall dispatch its project manager, system technical manager, system maintenance manager and system operators to participate in the trainings regarding the system.

 

7. The trainings shall be given at Party A’s system site and the Party B’s development and simulated operation site.

 

8. During the course of cooperation between the Parties, Party B shall provide Party A with the guidance to the operation and maintenance of the module after the first module is put into operation. The aforesaid guidance shall include:

 

(1) Testing and data statistics relating to the routine operation of the modules;

 

(2) Testing and data statistics relating to the routine operation of the system;

 

(3) Routine trainings for Party A’s persons responsible for system maintenance;

 

(4) Cooperation with Party A’s persons responsible for system maintenance, summarize the characteristics of operation of the modules, making discussion and improvement;

 

(5) Promptly solving any failure in the modules and system maintained by Party B, and promptly giving a notice to Party A’s

 

7

 

persons responsible for system maintenance.

 

9. Party B shall provide consulting service Party A only during the course of development and operation of the system.

 

10. With respect to any question raised by Party A, Party B shall answer the question on the same day; if Party B has to answer it on the next day, it shall give a statement to Party A in advance.

 

Article 7 Allocation of Risks

 

1. During the development of the target technology, if there is any technical difficulty cannot be overcome under the current technical ability and conditions and such difficulty causes the failure of the Project or any part thereof, all losses resulting therefrom shall be borne by Party B.

 

2. If the target technology to be developed hereunder has been publicized by others during the course of project development, which causes the performance of this Contract meaningless, either Party may terminate this Contract. If Party B has incurred costs from the performance of this Contract, the costs shall be solely borne by Party B.

 

Article 8 Price, Compensation and Terms of Payment

 

1. Within 30 days upon the execution of this Contract, Party A shall pay the first installment of the compensation in sum of RMB 4.5 million to Party B; within 60 days upon execution of this Contract, Party A shall pay the second installment of the compensation in sum of RMB 4.5 million to Party B. From June 2009 to December 2012, Party A shall pay Party B 35% of the operating income of Online Shopping Mall as the compensation.

 

2. The compensation shall be paid to Party B by check, bank remittance or any other form in accordance with this Contract.

 

Article 9 Ownership of Technology

 

This Project will be completed by Party B for the benefits of Party A as a work-for-hire, and the ownership of the target technology shall be belong to Party A.

 

Article 10 Technical Information and Confidentiality

 

1. Each Party shall keep confidentiality of all technical information and materials given by the other Party.

 

2. After the delivery and cutover of the whole system, Party B must immediately deliver to Party A all confidential information (including the copies and extracts thereof) relating to the system, and may not claim any compensation against Party A.

 

3. Party B must comply with the confidentiality obligation stipulated herein during the term of this Contract and within three years after the termination of this Contract. If Party B provides, discloses, sells, leases, transfers, sublicenses, re-licenses or otherwise makes available of any confidential information to others in violation of this Article 10, Party A may claim damages and losses against Party B.

 

Article 11 Liabilities for Breach of Contract

 

1. Party A’s Liabilities for Breach of Contract

 

(1) Party A fails to provide the agreed technical materials, original data or assistance for more than 15 days after the deadline, Party B may terminate this Contract. In that case, Party A shall reimburse Party B of all costs and expenses incurred from the performance of this Contract.

 

(2) There is a material defect in the technical materials, original data and assistance provided by Party A, which causes suspension, delay or failure in the development of the Project, Party A shall be fully liable for such suspension, delay or failure. However, if Party B becomes aware that there is certain defect in the materials and data provided by Party A, but it fails to notify Party A for correction or supplementation, Party B shall be subject to the liability accordingly.

 

8

 

(3) If Party A refuses or delays to accept the deliverables without any justifiable cause, which causes such deliverables are lawfully acquired by any third party or the practical value of such deliverables is lost in its novelty, or such deliverables are damaged or lost by accident, Party A shall be liable for such damage or loss.

 

(4) If Party A fails to provide effective cooperation or conduct acceptance on time according to Party B’s requirements, Party B’s performance of its obligations regarding delivery and subsequent development plan shall be postponed accordingly. If Party A fails to do so for more than 20 days, Party B may terminate this Contract. Party A shall reimburse all costs and expenses incurred by Party B for performance of this Contract, and pay to Party B the liquidated damages at 5‰ of the costs and expenses incurred by Party B.

 

(5) If Party A terminates this Contract due to its own reason before any module is delivered, it shall reimburse Party B of all costs and expenses incurred from the performance of this Contract, and pay to Party B the liquidated damages at 5‰ of all costs and expenses.

 

(6) If Party A terminates this Contract due to its own reason after any module is delivered, Party A shall reimburse Party B of all costs and expenses incurred from the performance of this Contract and indemnify Party B against all losses and damages resulting therefrom.

 

2. Liabilities of Party B for Breach of Contract

 

(1) Within 15 business days upon effectiveness of this Contract, Party B shall deploy the human resources and environment required for development of the system. If Party B fails to do so within the agreed time period, which causes any suspension or delay in the development or delivery of the system, Party B shall indemnify Party A against all losses and damages resulting therefrom.

 

(2) If Party B fails to develop the system according to the schedule stipulated herein, Party A may demand Party B to carry out development work and take remedies immediately. If Party B fails to do so for more than 15 days, Party A may terminate this Contract and all costs and expenses incurred from the performance of this Contract shall be borne by Party B. Additionally, Party B shall pay to Party A the liquidated damages (the amount of which shall be determined by the Parties).

 

(3) If Party B fails to deliver any module within the time period stipulated herein, it shall indemnify Party A against all losses and damages resulting therefrom; if Party B still fails to do so within 15 days after the due date, Party A may terminate this Contract and Party B shall pay to Party A the liquidated damages (the amount of which shall be determined by the Parties).

 

(4) If the modules and system delivered by Party B fails to meet the intended function or technical specification due to its own reason, Party A may demand Party B to make supplementation or correction, and Party B shall indemnify Party A against all damages and losses resulting therefrom. If Party B fails to make supplementation or correction within 15 days, or it still fails to meet the intended function or technical specification after supplementation or correction, Party A may terminate this Contract, and Party B shall indemnify Party A against all losses and damages resulting therefrom.

 

(5) If Party B becomes aware of any technical difficulty can not be overcome during the term of this Contract, which may cause failure in the Project or any part thereof, it shall promptly give a notice to Party A and take appropriate actions to reduce losses. If Party B fails to promptly give a notice to Party A, Party B shall be liable for all losses and damages directly caused by such failure.

 

(6) If Party B terminates this Contract unilaterally, it shall indemnify Party A against all losses and damages resulting therefrom.

 

Article 12 Intellectual Property Rights

 

1. Party B hereby warrants that the development of the system and use of the system by Party A in accordance with this Contract will not infringe any intellectual property of any third party, and will not infringe any other legal rights of any third party.

 

9

 

2. If any third party initiates a claim against Party A due to Party A’s use of the system hereunder, alleging Party A infringes the intellectual property right, trade secret or any other lawful right of the third party, Party B shall at its own costs settle the claim, but Party A shall provide necessary assistance to Party B in settlement of the claim.

 

3. If it is the opinion of Party B that the system itself or its use will infringe or has infringed any copyright, trade secret or patent of any third party, Party B may at its own discretion take sufficient and necessary actions, so that Party A may continue to use the system or its replacement or its modified software. When Party A uses the replaced or modified software, Party B shall warrant that the function thereof is equivalent to that of the original system and it will not infringe any right of any third party.

 

4. All the intellectual property hereunder shall belong to Party A.

 

Article 13 Dispute Settlement

 

1. This Contract is governed by the Contract Law of the People’s Republic of China, the Regulations of the People’s Republic of China Regarding Protection of Computer Software and other relevant laws and regulations.

 

2. Any dispute arising from the performance or interpretation of or in connection with this Contract shall be first settled by both parties through friendly negotiation or mediation. If no settlement can be reached through negotiation or mediation, the dispute shall be settled by the following means:

 

(1) Submit the dispute to Beijing Arbitration Commission for arbitration;

 

(2) The arbitral award shall be final and binding upon both parties;

 

(3) Unless it is otherwise specified in the arbitral award, the arbitration costs shall be borne by the losing party.

 

3. Both parties shall continue to perform this Contract other than the parts involved in the mediation or arbitration.

 

Article 14 Force Majeure

 

1. If either party fails to perform its obligations hereunder during the term of this Contract due to any force majeure, such as war, floods, fire, typhoon, earthquake or any other event agreed by both parties as force majeure, the term of this Contract shall be extended equal to the duration of such event.

 

2. The influenced party shall give a written notice to the other Party within 5 days upon occurrence of the event, and provide the other Party with a written certificate of such event issued by the relevant authority within 15 days.

 

3. If any event of force majeure persists more than 120 days, both parties shall amicably negotiate to settle the issue regarding the continued performance of this Contract within 15 days after the end of such event. If the Parties can not reach an agreement within the aforesaid period, this Contract shall be terminated automatically.

 

Article 15 Effectiveness, Term, Termination and Miscellaneous

 

1. Effectiveness

 

(1) This Contract shall be made and executed in four counterparts, two for each party. This Contract shall become effective as of being duly signed and sealed by the Parties.

 

(2) This Contract shall become effective as of the effective date. This Contract shall supersede all prior oral or written contracts and undertakings between both parties regarding the subject matter hereof.

 

2. Term

 

(1) The term of this Contract shall be four (4) years, as from the date when this Contract is duly executed by both parties.

 

(2) If the name, organizational form, business nature, business scope, registered capital or investor of either Party is changed

 

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during the term of this Contract, both parties shall continue to perform or procure its successor to perform all obligations hereunder.

 

3. Termination

 

If either Party intends to terminate this Agreement, both parties may enter into a supplementary agreement regarding the termination of this Contract through friendly negotiation. This Contract shall be terminated when it is confirmed by both parties in written forms.

 

4. Miscellaneous

 

(1) Upon expiration of this Contract, both parties shall continue exercising the rights and performing the obligations remaining thereafter, which will not be affected by the expiration of this Contract. The debtor shall continue to discharge its debt owing to the creditor.

 

(2) Any change to the provisions and appendices of the Contract shall be made in a written agreement duly executed by the authorized representatives of both parties through friendly negotiation.

 

(3) It is agreed by both parties that the technological results shall be the property of Party A and shall not be used for personal purpose and-sub-licensed by Party B, but excluding the use by Party B of such technological results for new development work.

 

Article 16 Definitions

 

1. “Technical Materials” shall mean any and all information, data, software, emails, faxes, communications, documents, drawings, forms, images and other materials relating to the customized software and customized technology.

 

2. “Confidential Information” shall mean this Contract and all appendices and supplementations hereto, and all software, software directories, documents, information, data, drawings, benchmark tests, technical specifications and trade secrets, and other information exclusively owed by each Party, provided to the other Party and expressly marked as “confidential”, including all items specified as “confidential” in any other contracts entered into by both parties before or after the date of this Contract.

 

Article 17 Miscellaneous

 

This Contract has four appendices and all these appendices shall have the same legal effect as this Contract.

 

The appendices attached to this Contract include:

 

Appendix 1: Technology Development Proposal of Qihoo Online Shopping Mall Information System

 

Appendix 2: Confirmation for Acceptance of Qihoo Online Shopping Mall Information System

 

Appendix 3: Development Plan of Qihoo Online Shopping Mall Information System

 

Appendix 4: Confidentiality Agreement for Qihoo Online Shopping Mall Information System

 

This Contract shall become effective as of being duly signed and sealed by both parties.

 

Party A:

 

Legal Representative or Authorized Representative:

 

	
/s/ Xiangdong Qi
    	
 
    

 

11

 

Party B:

 

Legal Representative or Authorized Representative:

 

	
s/ Dewei Zhou
    	
 
    

 

12

 

Technology Development Proposal of Qihoo Online Shopping Mall Information System

 

Qizhi Software (Beijing) Co., Ltd.

 

[Confidential]

 

1

 

Table of Contents

	
Chapter 1
    	
 
    	
Project Background
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Chapter 2
    	
 
    	
Project Overview
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
2.1   Project Name
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
2.2   Target Customer
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
2.3   System Objectives
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
2.4   Design Principles
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
Chapter 3
    	
 
    	
Requirements Analysis
    	
 
    	
7
    
	
 
    	
 
    	
 
    
	
3.1   Understanding of objectives
    	
 
    	
7
    
	
 
    	
 
    	
 
    
	
3.1.1   Understanding of general objective
    	
 
    	
7
    
	
 
    	
 
    	
 
    
	
3.1.2   Recommended Staged Objectives
    	
 
    	
7
    
	
 
    	
 
    	
 
    
	
3.2   Understanding of Business Requirements
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
3.2.1   Business framework
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
3.2.2   Understanding of business requirements
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
3.3   Understanding of Technical Requirements
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
3.3.1   User type
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
3.3.2   Security
    	
 
    	
10
    
	
 
    	
 
    	
 
    
	
3.3.3   Data organization
    	
 
    	
10
    
	
 
    	
 
    	
 
    
	
3.3.4   Information access
    	
 
    	
10
    
	
 
    	
 
    	
 
    
	
3.4   Analysis of Functional Requirements
    	
 
    	
10
    
	
 
    	
 
    	
 
    
	
3.4.1   Online Shopping Mall website subsystem
    	
 
    	
10
    
	
 
    	
 
    	
 
    
	
3.4.2   Background management system
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
3.4.3   System support
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
Chapter 4
    	
 
    	
System Characteristics
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
4.1   Maturity and Advancement
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
4.2   Strong Adaptability
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
4.3   Flexibility and Openness
    	
 
    	
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4.4   High Scalability
    	
 
    	
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4.5   Application Consolidation and Integration
    	
 
    	
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4.6   Security
    	
 
    	
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Chapter 5
    	
 
    	
Overall Design
    	
 
    	
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5.1.1   Application architecture
    	
 
    	
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5.1.2   Technical architecture
    	
 
    	
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5.1.3   Network topology
    	
 
    	
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Chapter   6 System Functions
    	
 
    	
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6.1   Online Shopping Mall Website Subsystem
    	
 
    	
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6.1.1   Portal website
    	
 
    	
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6.1.2   Product purchase
    	
 
    	
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6.1.3   Renewal and upgrade
    	
 
    	
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6.1.4   Customer space
    	
 
    	
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6.1.5   Customer service center
    	
 
    	
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6.1.6   Community
    	
 
    	
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6.2   Background Management System
    	
 
    	
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6.2.1   Customer information management
    	
 
    	
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6.2.2   Internal user information management
    	
 
    	
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6.2.3   Product information management
    	
 
    	
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6.2.4   Business Configuration Management
    	
 
    	
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6.2.5   Supply, Sale and Inventory Management
    	
 
    	
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6.2.6   Financial Settlement Management
    	
 
    	
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6.2.7   Customer Order Management
    	
 
    	
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6.2.8   Customer Service Management
    	
 
    	
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6.2.9   Unified Payment Platform
    	
 
    	
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6.2.10   Community Management
    	
 
    	
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6.3   System Support
    	
 
    	
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6.3.1   Security Authentication
    	
 
    	
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6.3.2   Task Scheduling and Control
    	
 
    	
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6.3.3   Log Management
    	
 
    	
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6.3.4   Statistical Analysis and Query Platform
    	
 
    	
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6.3.5   Parameterization Configuration Management
    	
 
    	
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6.3.6   Unified interfacing platform
    	
 
    	
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6.4   Security Management
    	
 
    	
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6.4.1   Security of Physical Layer
    	
 
    	
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6.4.2   Security of System Layer
    	
 
    	
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6.4.3   Security of Network Layer
    	
 
    	
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6.4.4   Security of Application Layer
    	
 
    	
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6.4.5 Security of   Information Representation Layer
    	
 
    	
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6.4.6   Security of Management Layer
    	
 
    	
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6.5   Data Storage and Backup
    	
 
    	
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6.5.1   Backup/Recovery Content
    	
 
    	
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6.5.2   Consideration of backup data quantity
    	
 
    	
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6.5.3   Daily data backup strategy
    	
 
    	
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6.5.4   Recovery Processing
    	
 
    	
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Chapter 7
    	
 
    	
Project Management
    	
 
    	
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7.1   Project Management Approaches
    	
 
    	
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7.1.1   Project Organization Management
    	
 
    	
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7.1.2   Project Personnel Management
    	
 
    	
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7.1.3   Project Plan and Progress Management
    	
 
    	
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7.1.4   Project Communication Management
    	
 
    	
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7.1.5   Project Risk Management
    	
 
    	
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7.1.6   Version Management of Project Results
    	
 
    	
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7.2   Project’s Lifecycle Selection
    	
 
    	
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7.3   Project Progress Control
    	
 
    	
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7.4   Project Organization Structure
    	
 
    	
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7.4.1   Project Organization Structure
    	
 
    	
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7.4.2   Responsibilities of Members of Project Organization Structure
    	
 
    	
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7.5   Project Quality Guarantee Scheme
    	
 
    	
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7.5.1   Quality Risk Analysis
    	
 
    	
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7.5.2   Quality Guarantee Guideline
    	
 
    	
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7.5.3   Quality Management Methods
    	
 
    	
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7.5.4   Quality Guarantee Measures
    	
 
    	
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Chapter 8 Project Testing Scheme
    	
 
    	
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8.1   Test Process
    	
 
    	
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8.2   Test Stage
    	
 
    	
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8.3   Test Method
    	
 
    	
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8.4   Test Process Flow
    	
 
    	
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8.4.1   Formulation of Project Plan
    	
 
    	
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8.4.2   Project Tracking and Monitoring
    	
 
    	
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8.4.3   Configuration Management
    	
 
    	
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8.4.4   Quality Assurance
    	
 
    	
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8.4.5   Evaluation of Test Results
    	
 
    	
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8.5   Test Tools
    	
 
    	
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Chapter 9 Services and Training
    	
 
    	
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9.1   Scope of Services
    	
 
    	
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9.2   Silver Service Plan
    	
 
    	
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9.2.1   Hotline Support Service (7*24hrs)
    	
 
    	
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9.2.2   Remote Dial-in Analysis
    	
 
    	
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9.2.3   Field Support Service (7*24hrs)
    	
 
    	
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9.2.4   Priority and Response Speed
    	
 
    	
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9.2.5   Periodical Patrolling Inspection
    	
 
    	
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9.3   Training Content
    	
 
    	
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4

 

Chapter 1 Project Background

 

Qihoo is a internet company with a strong base of more than 100 million customers which has developed its online sales business of anti-virus software and established a complete business model. Market survey shows that many digital goods can be sold online, such as software products, software product upgrading serial numbers, game cards and prepaid cards. The whole transaction of those digital products can be performed in an instant and real-time fashion on Internet. The biggest difference between the transaction & operating model of digital products and the traditional online electronic commercial trade is that the former requires no offline logistic distribution, which results in greatly reduced transaction cost & time and quick & convenient transaction. This transaction model is quite popular among a great number of customers.

 

In response to users’ demand for instant transaction of digital products, Qihoo wishes to develop the business of Internet software online sales on the basis of its anti-virus software online sales. However, Qihoo lacks the support of corresponding professional sales management platform, and so commissions Qizhi Software (Beijing) Co., Ltd. to develop such a platform.

 

Chapter 2 Project Overview

 

2.1 Project Name

 

Qihoo Online Shopping Mall Information System

 

2.2 Target Customer

 

All Internet users, cooperative marketing partners, operators and system maintenance & management personnel

 

2.3 System Objectives

 

·                      Provide a secure online sales platform with all necessary functions;

 

·                      Realize complete background management functionality, including unified third-party payment & management platform, purchase, sales & storage management subsystem, and financial sub-system;

 

·                      Realize a flexible and complete management platform, demonstrate the concept of Parameterization management and ensure business scalability & flexible allocation;

 

·                      Enable complete security system, data backup and relevant functions;

 

·                     Realize the interfacing with relevant existing systems, which might involve the upgrade or transformation of certain systems.

 

2.4 Design Principles

 

·       Advancement

 

The system shall adopt leading & proven techniques to ensure the effectiveness and continuity of investment.

 

5

 

·       Reliability

 

·       The system shall be able to work properly.

 

·       The system shall operate 7x24hrs nonstop and reliably.

 

·                     The upgrade or improvement of software versions shall proceed without affecting business operations and with steady & smooth system transition.

 

·       Maintainability

 

·                     System administrators can configure, monitor, control and diagnose the entire system in a centralized and simple manner, and monitor & control operating conditions, improve working efficiency and remove hazards.

 

·                     The configuration, control, monitoring and diagnosis of all functional modules of the system can be done by using professional system management tools without need for specialized encoding.

 

·                     Security

 

·                     Information security shall be guaranteed. In other words, information can be transmitted and stored securely within the system, and there shall be good data backup and quick restoration schemes.

 

·                     A rigorous security system shall be adopted to ensure data security in processing and transmission.

 

·                     The system shall be able to work properly without being attacked or damaged.

 

·                     Information in the system shall not be subject to unauthorized access, and the authorization of operation personnel shall be defined according to organization structure. Application software modules to be used by operation personnel at different levels of authorization can be freely combined and subject to centralized configuration by system administrators.

 

·                     When the security system is damaged, the system shall automatically remind the operators of such damage, detect abnormalities and offer correct operating methods. The bidder shall list the alarm methods that the system offers.

 

·                     Manual resetting or system startup is enabled without causing data loss or damage.

 

·                     High performance

 

The system shall have the performance required for user access, and offer consistent & predictable response.

 

· Flexible & convenient development and deployment

 

After the construction of data center platform, the system can address business requirement change and data source change flexibly and facilitate the customization, development, deployment and management of functions.

 

· Scalability

 

Open, standard and adaptable architecture is used to meet various new requirements on the system with expanded business volume and additional types of business. Packaged modular design idea is adopted to guarantee strong adaptability and scalability of the system. In addition, software architecture supports the upgrading and increased quantity of hardware systems.

 

6

 

Chapter 3 Requirements Analysis

 

3.1 Understanding of objectives

 

3.1.1 Understanding of general objective

 

According to our understanding of relevant requirements, the general objectives of Qihoo Online Shopping Mall information system are: to meet the strategic needs of Qihoo business growth, establish an Online Shopping Mall system of online digital products with all complete functions as well as the corresponding management system and platform supporting systems. In addition, to make sure that the system meets the needs of future business development, the system must possess necessary features including sufficient flexibility, stability and advancement.

 

Based on our experience in constructing large e-commerce systems, with full consideration of the project’s long-term objectives and short-term objectives as well as the project’s general objectives and the requirements of various businesses at different stages, by adhering to the principles of “overall consideration, step by step”, we put forward construction designs at three stages to ensure the operability and practicability of the project.

 

The stage-1 objective of the project is to complete the subsystem of Online Shopping Mall website and management functions and supporting modules required for smooth operation of the system; the emphasis of the stage-2 work is to complete the background management system, and to conduct necessary upgrades and adjustments with respect to the testing and operation results of the Online Shopping Mall website subsystem. The emphasis of the stage-3 work is complete supporting systems, complete the overall jointly debugging of the system and ensure smooth operation of the system.

 

3.1.2 Recommended Staged Objectives

 

Stage-1 objective

 

Staged objective: all functions of Online Shopping Mall website subsystem and necessary modules of management system and supporting system

 

Estimated period: 2009.1.1 — 2009.5.30

 

Details of major implementations:

 

·                      Construction of the architecture of Online Shopping Mall website subsystem

 

·                      Construction of the architecture of management system

 

·                      Integral data model

 

·                      Development of functions of Online Shopping Mall website subsystem (except customer community)

 

·                      Development of necessary modules of background management system: customer information management, internal customer information management, product information management, basic customer order management

 

·                      To ensure smooth operation of Online Shopping Mall website subsystem, the usage of existing payment platform system is temporarily deferred..

 

·                      Development of necessary modules of supporting system: security authentication management, basic log management

 

·                      Establishment of basic security management system

 

Stage-2 objective

 

Staged objective: to realize most modules of background management system as well as the adjustment and upgrade of Online Shopping Mall website subsystem

 

Estimated period: 2009.6.1 — 2009.9.30

 

7

 

Notice: due to the possibility of jointly debugging of third-party interfaces between Online Shopping Mall website subsystem and background management system, the potential third-party problems might delay the progress of the project.

 

Details of major implementations:

 

·                      Optimization of the architecture of background management system

 

·                      Business configuration management

 

·                      Inventory management

 

·                      Financial staged management

 

·                      Integral customer order management

 

·                      Unified payment platform

 

·                      Community in Online Shopping Mall website subsystem and the management of community

 

·                      Improvement of log management module of system support

 

·                      Provision of basic statistical analysis & inquiry platform

 

·                      Provision of basic unified interfacing platform

 

·                      Improvement of security system

 

Stage-3 objective

 

Staged objective: to lay emphasis on the completion of all functions of supporting system, improve the Online Shopping Mall website subsystem and background management system and finalize the comprehensive jointly debugging and integral operation of the system.

 

Estimated period: 2009.10.1 — 2009.12.30

 

Details of major implementations:

 

·                      Completion of task scheduling and control module

 

·                      Improvement of statistical analysis & inquiry platform

 

·                      Realization of Parameterization system configuration

 

·                      Improvement of unified interfacing platform

 

·                      Adjustment and upgrade of relevant modules of Online Shopping Mall website subsystem and background management system

 

·                      Integrated system jointly debugging

 

·                      Integral operation

 

·                      Establish of data storage & backup system

 

8

 

3.2 Understanding of Business Requirements

 

3.2.1 Business framework

 

Qihoo is a internet company which has been engaged in online sales of software products and established a set of “digital product operation system” to support such business operations. With further popularization of Internet and development of digital products, Qihoo wants to venture into the sales of digital products of various types, which cover software products, software upgrade & renewal, game cards and China telecom prepaid cards, etc. Product offerings include Qihoo’s own products and those for which Qihoo serves as an agent. Since all products to be sold are digital products, the sale and purchase of all such products can be carried out on Internet. In reality, Qihoo Online Shopping Mall Information System is an e-commerce platform aimed at the sales of digital products.

 

The businesses of Qihoo Online Shopping Mall Information System involve:

 

·       Online Shopping Mall website subsystem (e-commerce portal system)

 

·       Background management system

 

·       System support module, etc.

 

3.2.2 Understanding of business requirements

 

·                     Business application layer

 

External customers

 

Internal business personnel

 

Internal system management personnel

 

·                     Business scope

 

Qihoo Online Shopping Mall Information System is mainly involved in Internet-based sales, payment, finance, marketing, security authentication, comprehensive management, etc.

 

·                     Number of user access and number of concurrent user terminals

 

The system shall withstand 1,000 or more concurrent accesses and ensure access quality and time as well. In addition, to adapt to business growth, the system shall have logical and physical scalability.

 

3.3 Understanding of Technical Requirements

 

3.3.1 User type

 

External customer: an external customer conducts commercial activities including purchase and payment, so the processing of information concerning customer account is required.

 

Internal user: an internal user sets the businesses in the system, and is likely to gain access to sensitive data within the system. Certain operations by an internal user need reexamination and audit.

 

System administrator: a system administrator maintains smooth operation of the system, and is likely to gain access to sensitive data within the system or some operations by it might affect system operation. Its operation requires necessary monitoring and audit.

 

9

 

3.3.2 Security

 

Security is a must for any e-commerce system. Qihoo Online Shopping Mall Information System is expected to keep plenty of business information, so it is very important to ensure information security. For this purpose, the following measures are taken:

 

·                     Strategy of identity authentication and authorization authentication of external customers and internal users

 

·                     Establishment of rules and regulations on user creation and authorization

 

·                     Maintaining data management over the separation of operation environment from development environment

 

·                     Periodical tracking and audit on system security

 

3.3.3 Data organization

 

Scientific data organization helps users to understand the information from data center more easily. The following issues will be taken into account:

 

Metadata management

 

Data quality issue

 

Data naming standardization

 

3.3.4 Information access

 

Information access falls into the following categories: access to data center via portal system, and direct access to the system via corresponding application systems (e.g., background management system and third party interface). Information access tools shall be characterized by simplified operation, user-friendly interface and ease of operation.

 

3.4 Analysis of Functional Requirements

 

3.4.1 Online Shopping Mall website subsystem

 

Online Shopping Mall website subsystem is primarily used for external customers. An external customer can register himself as a Qihoo member, and conduct commercial activities including product search, order placement and payment in the Online Shopping Mall website subsystem. So the Online Shopping Mall website subsystem shall be able to satisfy customers’ e-commerce requirements.

 

In addition, internal business management personnel shall conduct business operations, such as recommending various products to customers, marketing campaigns and leasing advertising spaces to third-party partners in the Online Shopping Mall website subsystem.

 

Therefore, the Online Shopping Mall website subsystem shall have all functions of a most completed e-commerce portal.

 

3.4.2 Background management system

 

All modules of background management system will be developed to guarantee smooth operation of the Online Shopping Mall website subsystem.

 

Customer information management: management of basic information of external customers.

 

10

 

Internal customer information management: internal customer information management, authorization allocation.

 

Product information management: product categorized information definitions, setting of product information of various types

 

Business configuration management: definition and management of various business activities

 

Product inventory management: management of product inventories

 

Financial settlement management: management of financial settlements with third-party systems or partners

 

Order management: management and statistical analysis of customer orders

 

Customer service management: management of customer services

 

Unified payment platform: unified payment interface of the system

 

Community management: offering of various community management functions

 

3.4.3 System support

 

All modules of the system are mainly technical tools to ensure smooth operation of the system. For detailed functional description, please refer to the section on system functions.

 

Chapter 4 System Characteristics

 

4.1 Maturity and Advancement

 

Qihoo Online Shopping Mall Information System employs many proven development modes, such as AOP and MVC, and it also adopts leading technologies like AJAX and FLASH to enhance customer experience and the system’s operating efficiency.

 

4.2 Strong Adaptability

 

Through configuration, the system can support large and medium-sized e-commerce applications and small-sized lightweight applications as well.

 

4.3 Flexibility and Openness

 

Thanks to modular design concept, each module can operate independently with loose coupling between modules.

 

The entire system complies with various standard specifications, and is fully open.

 

4.4 High Scalability

 

With design idea of plug-in management as well as JavaBeans module, framework module, AOP interceptor module and application service module, OTP enjoys broad expansion space. The powerful interface module (label library) also supports the expansion and secondary development of external appearance.

 

11

 

4.5 Application Consolidation and Integration

 

The data routing based enterprise service bus enables flexible & smooth data integration.

 

4.6 Security

 

Multi-level authorization, monitoring, alarm and log

 

Chapter 5 Overall Design

 

5.1.1 Application architecture

 

[Graphics]

 

System description:

 

The system is generally divided into three parts: Online Shopping Mall website subsystem, background management system and system support.

 

·                      Online Shopping Mall website subsystem

 

1.                   Portal website

 

2.                   Product purchase

 

3.                   Renewal & upgrade

 

4.                   Online payment

 

5.                   Customer services

 

6.                   Community

 

...

 

·                      Background management system

 

Customer information management

 

Content & user information management

 

Product information management

 

Business configuration management

 

Supply, sales & storage management

 

Financial settlement management

 

Customer order management

 

Unified payment platform

 

12

 

Community management

 

·                      System support

 

Security authentication

 

Log management

 

Task scheduling & control

 

Statistical analysis & inquiry platform

 

Parameterization configuration management

 

Unified interfacing platform

 

5.1.2 Technical architecture

 

[Graphics]

 

Qihoo Online Shopping Mall Information System uses the multi-leveled application architecture which comprises representation layer, logical layer and data layer. There is loose coupling between layers.

 

The development will be based on basic development framework and in compliance with technical codes for the development of those layers so as to simplify and standardize the design and development of the entire application.

 

·                      Representation layer

 

It offers 2 foreground architecture modes, namely MVC mode for traditional B/S application and AJAX mode for rich client application.

 

·                      Business logic layer

 

With transaction reservoir mechanism, business logics are divided into order layer, service layer and business module layer for the purpose of business logic management.

 

·                      Resource access layer

 

The platform offers O/R mapping technology, enables transparent database access, and also provides unified interfaces for interaction with external systems.

 

5.1.3 Network topology

 

[Graphics]

 

Chapter 6 System Functions

 

6.1 Online Shopping Mall Website Subsystem

 

6.1.1 Portal website

 

·                      Product presentation:

 

13

 

The customer can view all relevant products through general preview or categorized preview. Product offerings include popular products, new arrivals, special offers, etc.

 

·                      Product search:

 

Products can be searched by different search modes, such as search by product name, price, repeat purchases, customer satisfaction rate or product category.

 

·                      Product recommendation

 

Popular products, new arrivals, feature products and products of interest to customers

 

·                      Current marketing and promotional activities

 

·                      Product advertising space

 

Advertisements of partners will be released within given periods of time according to the setting of advertising spaces, and statistics will be made on the click-through rate and customer information of advertisements involved.

 

·                      System announcement

 

Current effective announcements (i.e., website maintenance announcements) are shown.

 

·                      Customer registration

 

Basic information on a customer is verified before generating the unique number of customer account.

 

Send an “account activation email” to the email address furnished by the customer for registration purpose.

 

The customer activates its account by clicking on the link shown in the “account activation email”.

 

·                      Customer logon

 

Such information as customer name, password and check code shall be entered.

 

After logon, the customer may revise basic customer information, view & revise purchase orders, or make payments.

 

·                      Newsletter

 

It generally comprises company news and industry information.

 

6.1.2 Product purchase

 

·                      Product information presentation

 

Product categories

 

Latest products

 

Popular products

 

A list of goods in which the customer may be interested will be obtained based on the record of purchases they made.

 

Presentation of detailed product information

 

A number of most recent customer comments will pop up once customer comment is posted.

 

·                      Product purchase

 

14

 

The customer is supposed to select the products to be bought and fill up a purchase order online before order management.

 

Online payment

 

Downloading or offline transmission of product information

 

Registration of out-of-stock product

 

·                      Product information search

 

Product search can be performed by name, category or other factors.

 

6.1.3 Renewal and upgrade

 

Log on and select the products to be renewed

 

Select appropriate payment model

 

Make payment

 

Get the activation code

 

6.1.4 Customer space

 

·                      Management of basic customer information

 

After logon, the customer is entitled to revise the corresponding basic customer information.

 

·                      Order management

 

Order inquiry

 

If order status permits, orders can be modified or deleted.

 

6.1.5 Customer service center

 

FAQ (Frequently Asked Questions)

 

Online consultation and complaints

 

Customer services contact information

 

6.1.6 Community

 

·                      Community registration and logon

 

·                      Community information search

 

·                      Community identity information management

 

·                      Basic community functions: post, reply, moderate recommendation, pin, comment, quote, search, statistics, etc.

 

15

 

·                      Community system can automatically generate navigable tabs including latest topics, latest replies, hottest post and digest.

 

·                      Management functions

 

After logon, the customer can modify, delete or otherwise manage its own posts.

 

6.2 Background Management System

 

6.2.1 Customer information management

 

This module manages customer information and learns about system customer groups to be timely informed of customers’ dynamic state and data concerning customer orders on a daily basis.

 

Functions:

 

·                      Customer data: including customer description, customer credit rating, current sales status of customer region, previous order placement, customer statistical data, ongoing orders, payment status, customer feedback, etc.

 

·                      Customer information management: (deletion, disabling, authorization, edition)

 

·                      The customer shall edit all data on its own, inquire about its business history records, and establish statistical reports.

 

·                      Allocation of customer authorization:

 

6.2.2 Internal user information management

 

[Graphics]

 

User objective : system administrator

 

For internal users, authorization management means managing the resources and scope of access according to different working scope and roles.

 

1)                 For customers of different types, different authorization can be set, and the modules available to different authorization can be freely combined and subject to centralized management by system administrator. System administrator is entitled to add, modify and delete the role groups, and to define the authorization of role groups through different combination of basic authorities.

 

2)                  System administrator can perform flexible combination of authorities, and a number of single authorization in functional modules can be superposed to form authorization combination.

 

3)                  Authorization configuration must be done by authorized system administrator, and the administrator shall not set any authorization that is beyond its authorization range.

 

4)                  It is able to support the setting of authorization according to different dimensions.

 

6.2.3 Product information management

 

6.2.3.1 Product category management

 

Addition, modification, deletion and inquiry of product categories

 

16

 

Product categorized management enables different-level categorization, and product lines can be represented in tree data structure.

 

6.2.3.2 Product information management

 

·                      Information input: business personnel can input product information into the system. Product information includes textual information, images and documents.

 

·                      Information modification: modify current product information within the allowable range and submit the information to the system.

 

·                      Deletion of product information: delete the chosen product information. Product information is actually not deleted from the database, and the information of this product is set as the status of deletion.

 

·                      Product shelving and de-shelving: only products marked “shelved” can be viewed at foreground.

 

·                      Template management: set and maintain certain products information templates to facilitate the maintenance of product information.

 

·                     Provide partners with sales data analysis, sales details, sales volume, data comparison, etc.

 

·                      Provide partners with the analysis and comparison of financial data

 

6.2.3.3 Design points

 

·                     Mass-data statistical analysis, reasonable design of data structure, optimization of data query

 

·                      Factory design patterns adopted for business processing classes, plus inheritance of foundation classes

 

·                      Functional modules are independent, and class interfaces possess clearly defined functions

 

6.2.4 Business Configuration Management

 

For the purpose of structured development, this system adopts the development principles expressed in formulae of the same type to express the requirements for major content updates likely to come with business growth in corresponding type libraries. The use of type library+ interpreter/executor mode minimizes system modification arising from the upgrade of key links.

 

6.2.4.1 Marketing Campaign Management

 

Marketing campaign management involves the following functions:

 

Maintenance of basic information on marketing campaigns: creation of marketing campaigns and maintenance of basic information. Basic information on marketing campaigns includes name, starting and ending date of marketing campaigns, and associated products.

 

Formulation of rules for marketing campaigns: the system will automatically conduct operations like transaction discount calculation, customer reward calculation and settlement with suppliers according to marketing campaign rules.

 

Once established, the campaign will be under the activation status. For any customer transaction within the term of validity of the campaign, the system will automatically conduct such operations as discount rate calculation, customer point calculation,

 

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and settlement between system and relevant partners in accordance with the set campaign rules;

 

Upon the expiry of the campaign, the state of campaign will automatically change from effectiveness to cancellation, and the campaign will be deleted (campaign information and numbering to be retained) and allow for further modification.

 

6.2.4.2 Management of Advertising Spaces

 

·                      Advertising space setting

 

Define the basic attributes of advertising space. Advertising space of Online Shopping Mall information system can be set either within the portal website or inside emails sent to customers.

 

·                      Information management of advertising spaces

 

Set basic information concerning advertising spaces, including term of validity of advertisements, target of service, term of service, settlement mode, etc.

 

·                      Information statistical analysis of advertising spaces

 

Analysis on use rate, profitability statistical analysis of advertising spaces. . . . . .

 

Partners who buy advertising spaces may be provided with the results of statistical analysis on information relating to customers who click on such advertisements.

 

6.2.4.3 Campaign Analysis/Reports Statistics

 

Perform data summary and statistics by campaign categories. After setting marks for different campaigns, enter parameters like campaign marks to learn about the progress of the campaign and corresponding curve chart. With the help of those information indexes, campaign effect analysis and trend forecast can be realized.

 

6.2.5 Supply, Sale and Inventory Management

 

I. Counterparty management:

 

1.                   Supplier management: supplier archives can be set and managed. Archive information includes supplier name, address, contact personnel, contact telephone number, fax number, zip code, account-opening bank, bank account number, tax number, website address, EMAIL address, etc.

 

2.                   Commodity information management: commodity name, number, type, commodity description, unit of measurement, supply price, retail price, fee rate, etc.

 

3.                   Setting of terms of collection and payment

 

4.                   Rate setting

 

5.                   Setting of terms of collection

 

II. Warehouse incoming/outgoing management

 

1.                   Purchase order information: information entered on a purchase order includes: customer, order number, delivery date,

 

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name & number of goods, unit price of goods, quantity, amount, etc. The previous supply price may automatically pop up when the information concerning purchase order is entered.

 

2.                   Receiving management of purchase orders: to perform such operations as delivery inspection and acceptance of goods in purchase orders, automatic cancellation/reduction of purchase orders, automatic registration of accounts payable after receiving the goods, or determine whether or not to warehouse the goods.

 

3.                   Management of purchase prepayments: to manage and log on purchase prepayments.

 

4.                   Management of purchase payments and settlements: log on purchase payment and settlement, cancel/reduce accounts payable by customers, and make a payment to cancel several accounts payable after verification. In particular, this module is quite effective in processing non-entire voucher settlements, thus solving the thorniest issue in manual accounting.

 

III. Inventory management

 

1.                  Goods stock-in management: stock-in order numbers can be automatically generated, and commodity and customer selection is convenient and fast. Commodities can be put in several warehouses simultaneously, and there is no limitation on the quantity of commodities in each stock-in. Relevant vouchers can be printed out from time to time.

 

2.                   Commodity stock-out management: stock-out voucher numbers can be automatically generated, and commodity and customer selection is convenient and fast. Commodities can be delivered out of different warehouses simultaneously, and there is no limitation on the quantity of commodities in each stock-out voucher. Related vouchers can be printed from time to time. Different modes of commodity stock-out including normal stock-out, giveaway stock-out and damaged commodity stock-out can be distinguished.

 

3.                   Commodity stock-return management: stock-return voucher numbers can be automatically, and commodity and customer selection is convenient and fast. Commodities can be returned to several warehouses simultaneously, and there is no limitation on the quantity of commodities in each stock-return. Related vouchers can be printed any time.

 

4.                   Commodity inventory-taking management: inventory-taking voucher numbers can be automatically generated, and commodity selection is convenient and fast. The inventory-taking data of several warehouses can be entered simultaneously.

 

5.                   Commodity borrowing management: commodity borrowing voucher numbers can be automatically generated, and different borrowers are supported. There is no limitation on the quantity of such sheets, and related vouchers can be printed out at any time.

 

6.                   Commodity returning management: commodity returning sheet numbers can be automatically generated, and commodity borrowing records can be automatically cancelled. Related vouchers can be printed out at any time.

 

IV. Inventory query and statistic system:

 

1.                   Inventory query: the inventory of goods of various types can be queried any time, and the goods can be automatically categorized for statistics. The inventory of a single warehouse can be queried, and the total inventory of all warehouses can be also queried. The inventory details and inventory summary can be automatically printed out.

 

2.                   Voucher query: all kinds of vouchers including ordering, taking delivery of goods, return, stock-in, stock-out, stock-return, sale and payment can be queried and printed out any time.

 

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3.                   Comprehensive purchase query: queries on data including purchase orders, taking delivery of goods, returns, advance payments and settlement of accounts payable can be made by different conditions like period of time, customer, type and commodity, and data obtained through queries can be summarized. Reports can be formed according to query and statistical results and printed out at any time.

 

4.                   Comprehensive query on commodity stock-in/out inventory: Queries on inventory status of commodities can be made by different conditions like period of time, customer, department and commodity name, and data obtained through queries can be summarized. Reports can be formed according to query and statistical results and printed out at any time.

 

5.                   Comprehensive sales query: queries can be made by different conditions like period of time, customer, department, commodity and sales volume, and data obtained through queries can be summarized. Reports can be formed according to query and statistical results and printed out at any time.

 

V. Financial and analysis alarm system:

 

1.                   Setting of beginning balance of inventory: the beginning balance of goods of various types in all warehouses shall be set.

 

2.                   Inventory account: daily, monthly inventory accounts or those within a given period of time can be generated and printed out at any time.

 

3.                   Daily incoming and outgoing reports of goods in stock: daily stock-in reports, daily stock-out reports and daily stock-return reports for goods in stock can be automatically generated. All such daily reports can be printed out anytime.

 

4.                  Sales reports: reports of sales volume and reports of sales amount can be automatically generated.

 

5.                   Inventory ratio analysis: inventory data can be summarized and converted into statistical charts for analysis to show the components of inventory structure, and reports can be formed based on analysis results and printed out any time.

 

6.                   Statistical analysis of operational data: including goods sale cost and gross profit statistics, customer sales ranking, commodity sales ranking, and statistical analysis of annual sales.

 

7.                   Setting of upper and lower limits of inventory: the upper and lower limits of goods of various types in stock can be set.

 

8.                   Automatic alarm on abnormal inventory: automatically offer warning alarms on categories which are below lower limit of inventory or above upper limit of inventory.

 

6.2.6 Financial Settlement Management

 

[Graphics]

 

1.                   Settlement judgment

 

Judge on valid payment vouchers or consignment collection vouchers verified by settlement center, and distinguish payment mode from consignment collection mode.

 

2.                   Settlement confirmation

 

Send an advice of collection to the payee or an advice of payment to the payer after collection or payment operation is confirmed.

 

3.                   Settlement operation

 

Complete settlement operations. Generate documents evidencing completion of collections or payments in the case of

 

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intra-city settlements; generate special checks for transfer in the case of intercity settlements.

 

6.2.7 Customer Order Management

 

Order management: order management, order processing progress management, order statistics, payment management, generation of reports of various types.

 

Control the whole transaction through background program, and form records & reports.

 

Latest order information management, to view customer orders;

 

Order processing, to manage orders placed by customers effectively;

 

Order tracking and allocation means that the administrator allocates customer orders to business personnel;

 

Order statistical report means categorized summary of all effective orders

 

Main modules:

 

·       Order placement

 

[Graphics]

 

·       Order query module

 

It allows order query by product, date, quantity, amount or processing status, and query interfaces include customer interface and administrator interface.

 

·       Order management module

 

The administrator may conduct real-time order processing in the background, e.g., whether contact is made, whether the goods are shipped, whether the customer has taken delivery of the goods or made payment, and can mount the function of online payment.

 

·       Order giveaway management

 

The Online Shopping Mall may carry out the promotion of giveaways, so the project involves order giveaway management.

 

Foreground presentation:

 

When the customer makes a purchase at the foreground of website, if there are giveaways available for the goods in purchase order, or the order meets the conditions for “giveaways for purchase order valued at or above a certain amount”, the page will jump direct to gift zone, and remind the customer to select the giveaways.

 

Background operation:

 

When the order is presented at background, the giveaways may contain several different types of goods, but the prices of giveaways shall be set prices.

 

The following points are worth noting:

 

If there are giveaways available for the goods in purchase order and the administrator modifies the quantity of certain goods or deletes the goods, thus rendering it impossible to meet giveaway conditions, the system shall automatically mark the giveaways as “cancelled” or simply delete such giveaways. In modifying the orders, the administrator shall give an express instruction and confirm the modification or deletion operation, and deleted or cancelled giveaways are unrecoverable.

 

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If there are no giveaways available for the goods in a purchase order and the background administrator modifies the quantity of certain commodity to comply with the conditions for associated giveaways, the system will not offer any processing operation related to giveaways.

 

6.2.8 Customer Service Management

 

·                      Provide partners with work order processing work flow, submit problems and examine work order handling process.

 

·                      Provide customer service center with problems arising in sales and collect such problems

 

·                      Offer multi-user and multi-authorization functionality

 

·                      Offer problem categorization and analysis

 

·                      Frequent problem maintenance

 

·                      Customer status analysis

 

Customer profiling analysis: including customer hierarchy, risk, preference, habit, etc.;

 

Customer profit analysis: marginal profit, total profit and net profit of products purchased by different customers;

 

Customer trend analysis: including future trends of customer quantity, category and other issues, approaches to secure customers, etc.

 

Customer product analysis: behavioral analysis of customers’ purchase of products;

 

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Customer promotion analysis: including statistical analysis of promotional campaigns including advertisements and publicity activities.

 

6.2.9 Unified Payment Platform

 

It provides product unified payment entrance to meet different payment modes, e.g., mobile phone and bank card.

 

It also offers sound payment modes, such as payment by mobile phone, credit card, debit card and Easy Own card.

 

According to business model of Qihoo Online Shopping Mall Information System, the mode of payment applicable to this system is B2C, namely payment from personal account to corporate account. The following diagram shows a common payment process.

 

[Graphics]

 

Payment module generally comprises three major parts, i.e., service page, payment gateway, management system.

 

·                      Service website accepts various management transactions by users and the processing of bills of all kinds.

 

·                      Payment gateway accepts the payment request of service page, and forwards the request to all bank systems.

 

·                      Management system is used for internal management, and can adjust the operating parameters of website and gateway.

 

[Graphics]

 

In terms of functions, the business of payment platform is generally completed by application layer and control layer.

 

·                      In application layer, complete payment-related business functions including transaction processing, fund clearance and batch processing; in addition, it also offers management functions and sets & adjusts all parameters of payment platform.

 

·                      Control layer is responsible to complete transaction processing function, mainly including transaction route, data storage & forwarding, error processing, timeout processing and reversing.

 

System security strategies

 

·      Technical guarantee

 

Application security: certificate authentication, password verification, message encryption

 

Network security: intrusion detection, hacker prevention, virus control

 

System security: operating system security, database security

 

Standard management: quality management, sound maintenance system, etc.

 

·      Business guarantee

 

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Rigorous business process control

 

Strict business verification and sound reporting system

 

Risk control system: conduct feedforward, concurrent and feedback monitoring on merchant monetization, user monetization and use & control of users’ funds, and devise detailed rules so as to ensure maximum fund security

 

The payment platform will keep a complete transaction log for examination and verification whenever necessary.

 

6.2.10 Community Management

 

Management functions of community are divided into two levels:

 

Management by system administrator on forum setting: plate allocation, appointment of plate administrators, management of community account, etc.

 

Plate administrators perform routine maintenance and management on posts in the community.

 

6.3 System Support

 

6.3.1 Security Authentication

 

6.3.1.1 Business Model

 

[Graphics]

 

6.3.1.2 Three Operating Modes

 

The system supports the following three operating modes:

 

·                      Unified user management and authentication mode: identity information of all application resources is subject to unified management. During access to the application resource, the access entity calls USP4i’s authentication service via agent to get user and authentication information.

 

·                      Distributed account management and unified authentication mode: the application resource calls USP4i’s management service to maintain its account information. During access to the application resource, the access entity calls USP4i’s authentication service via agent to get user and authentication information.

 

·                      Data supply mode: the platform maintains users’ identity information in a centralized manner. By supplying data to the application resource, the application resource completes authentication and uses user information when the access entity gains access to the application resource.

 

6.3.1.3 Four Access Technologies

 

·                      Radius access: system authentication supports standard radius access, such as network equipment and database;

 

·                      PAM and AD (Active Directory) access: the system supports the access via open system PAM security architecture and the access via windows operating system Microsoft®Active Directory®(AD) security architecture;

 

·                      Standard Agent access: the system supports the standard Agent access of typical application supporting platforms like

 

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weblogic and websphere;

 

·                      User-defined agent: user-defined agent may be developed for some systems developed by user itself.

 

6.3.1.4 Functional Characteristics

 

USP4i management desk has the functionality of adding, deleting, modifying or querying institutions, users, accounts, roles, resources (application system, mainframe, equipment, posts, menu), authentication mode, security strategies, etc. USP4i provides management and authentication services via WebService. Additionally, USP4i offers signature function (digital signature and seal or handwritten signature).

 

·                      Unify the security system and management process of application system identity management and authentication;

 

·                      Real-name based user account view manages the user’s lifecycle, and real-name based certification supports fixed grouping of users and dynamic grouping by attribute;

 

·                      Support the definition of cross-system global roles as well as static & dynamic isolation of roles;

 

·                      Unified voucher management: the same user can possess several certificates with different levels of certification intensity, e.g., static password, dynamic password, certificate, fingerprint and vein, and vouchers allow cross-origin resource sharing;

 

·                      Unified certification center supports flexible setting and switching of various certification modes, automatic identification of products certified by different manufacturers and transparent expansion of new certification modes; it also supports prevailing certification modes, types and products: multi-leveled certification can perform independent certification by system, function, menu, page and even command;

 

·                      The combination of digital signature and seal or handwritten signature not just ensures anti-juggling of digital documents but corresponds to the habits of domestic users.

 

6.3.2 Task Scheduling and Control

 

Operation control module is a set of programs and interface functions.

 

The background drive scheduling program in the operation control module examines the operation of all programs mentioned in the configuration list according to the settings provided in the configuration file (configuration list), and starts the programs that meet operating conditions in turn on the principle of event triggering and time triggering. In addition, after the end of the operation of a specific program, it checks if there is any other program that meets operating conditions among configured programs. If yes, such programs will be started in turn and operated cyclically.

 

6.3.2.1 Composition of Operation Control Module

 

The system comprises background drive part, foreground monitoring part and relevant interface functions & programs:

 

·                      Background drive part

 

Scheduling of batch process flow;

 

Initiation of batch processing;

 

Communication with batch processing program;

 

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Communication with foreground monitoring part;

 

·                      Foreground monitoring part is responsible to:

 

Display operating status of batch processing operation

 

Receive instructions from operators, and transmit them to the background

 

·                      Interface functions

 

Called by application program to notify the program to start/stop the operation;

 

·                      Interface program

 

Called by application shell to notify the program to start/stop the operation;

 

The background drive part starts the batch processing program requiring operation. This does not constitute the parent-child process relationship, no matter whether the program runs properly;

 

During operation, the application program needs to notify the operation control module that the operation starts, or ends normally, or fails;

 

Operation control module is responsible for the start and end of some daemon processes whenever appropriate;

 

6.3.2.2 Functions of Operation Control

 

·                      Conduct all batch processing operations

 

·                      The system operates automatically according to work flow, thus reducing human intervention

 

·                      Work flow is configurable

 

·                      Support event triggering mode and time triggering mode

 

·                      Support parallel operation model

 

Single-job multi-process parallel mode

 

Multi-job parallel mode

 

·                      Support local process serial mode

 

Multiple programs can be configured in serial mode, and programs with the same operation parameters can be executed according to serial process.

 

·                      Support manual auxiliary control mode

 

Support manual triggering and initiation of certain sub-job  flow

 

Support repetitive operation of a certain function

 

·                      Support executable program mode and shell program

 

6.3.3 Log Management

 

To maintain the operation status of its own resources, the Internet-based online sale system keeps operation records of its

 

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routine events, and that is so-called system log. System log can be used to monitor system resources, examine users’ behavior, issue alarm on suspicious action, ascertain the scope of intrusion and assist in system recovery.

 

The types of system management log include:

 

Operation log: record the operations of external customers and internal users within the system.

 

Operation types include: logon, push-out, click, order placement, payment, information maintenance, etc.

 

System log: record system operation status

 

It records system operating status, and uses such records as the basis for system monitoring.

 

6.3.4 Statistical Analysis and Query Platform

 

In order to boost service quality and strengthen automatic business recommendation, the system adopts the function of data mining aimed at information bank and user data bank. On one hand, the system automatically analyzes customer attributes, delves into consumption rules of customers, and automatically recommends services of the same type to customers of interest. On the other hand, the system tries to identify the consumption rules of individual users and automatically recommends other consumption services to individual users. This function greatly increases the accuracy of customer consumption and the number of potential customers, and reduces marketing cost considerably.

 

Statistical analysis of the system generally includes:

 

Statistical analysis of customer service information;

 

Statistical analysis of customer operation;

 

Statistical analysis of sales status;

 

Statistical analysis of marketing campaigns; and

 

Customer survey and analysis

 

6.3.5 Parameterization Configuration Management

 

6.3.5.1 Design concept

 

1.      System call reduces manual operation.

 

The system operates on every workday according to its fixed business process, and each task executed in the process is a kind of routine work. Routine work shall be executed automatically by the system with minimum manual operation. This arrangement can not only lessen the pressure on working personnel but decrease the risks arising from human misoperations.

 

“Generation and synchronization of interface data” is routine work executed on a daily basis. Therefore, the execution of this task shall be subject to centralized call by “operation control system”.

 

2.      Human intervention, manual execution

 

Despite automatic execution by the system, the possibility of human intervention is still retained.

 

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System administrator can track execution status and examine execution results at any time, and even terminate the operation of program, adjust execution steps and modify execution function when necessary.

 

After parameter adjustment, tasks can be performed in the following methods:

 

·                      Return execution power to operation control system to continue operation control.

 

·                      Manual batch execution;

 

·                      Manual step-by-step execution

 

3.      Configuration management and ease of use.

 

Interface realization shall satisfy the ease of use through simple configuration. Interface functions shall be parameterized during design so that business functions can be realized via parameter setting.

 

4.      Convenience in business adjustment and expansion

 

To facilitate the addition of new business functions or adjustment of existing functions, business parameters shall be separated from driver program during design, and driver program shall be designed as core service irrelevant to business. When business growth requires the addition of new interface functions, new business parameters can be added simply through configuration management;

 

Interface data = core service + business parameters

 

5.      Parallel service for efficiency’s sake

 

During system design, existing business and future development volume shall both be taken into account. Core service shall be designed with parallel processing mode to ensure the efficiency of task execution.

 

6.3.5.2 Parameterization Programming

 

[Graphics]

 

1.      Business configuration Line

 

Business operators configure parameters via management desk, and parameters fall into two types: entrance parameters, which refer to designated parameter form and location, such as path, name or field of files generated; exit parameters, which refer to tables, fields or field types in business database designated to be imported;

 

2.      System operation line

 

In routine operations, the operation control system calls the core service program, and reads configuration parameters in a parallel manner. According to the setting of configuration parameters, it reads data in the database table and generates interface data including interface data files. In case of system abnormality, the operation personnel can stop the operation of core service program manually. After modifying configuration parameters, the operators can operate manually the core service program on the application server and generate interface data.

 

Operation process:

 

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[Graphics]

 

6.3.5.3 Parameterization Operation

 

[Graphics]

 

1.      Parameter configuration line

 

Business operators configure parameters via management desk, and parameters fall into two types: entrance parameters, which refer to information like data and data attribute designated to be imported, such as path, name or field of data files; exit parameters, which refer to tables, fields or field types in business database designated to be imported.

 

2.      System operation line

 

In routine operations, the operation control system calls the core service program, and reads configuration parameters in a parallel manner. According to the setting of configuration parameters, it reads interface data and imports them into database tables. In case of system abnormality, the operation personnel can stop the operation of core service program manually. After modifying configuration parameters, the operators can operate manually the core service program on the application server and import the data from interface data into the database.

 

Operation process:

 

[Graphics]

 

6.3.6 Unified interfacing platform

 

According to business requirements, Qihoo Online Shopping Mall Information System may exchange information with other systems, such as relevant systems of partners, internal existing systems and third-party system (e.g., payment gateway of a bank).

 

To facilitate management and expansion, the system shall adopt the unified external interface to realize data exchange between it and other systems. Such unified external interface shall adapt to different data exchange modes including message and file mode, and possess transaction processing capability to ensure the integrity of data transmission.

 

6.4 Security Management

 

[Graphics]

 

The security and stability of Qihoo Online Shopping Mall Information System is primarily realized in six layers:

 

6.4.1 Security of Physical Layer

 

The security and stability of physical layer of the system is guaranteed through such measures as security, environmental monitoring and hardware operation & maintenance of computer rooms.

 

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6.4.2 Security of System Layer

 

In terms of system layer, professional means including intrusion detection, loophole scanning and virus prevention & control to guard against external malicious operations.

 

6.4.3 Security of Network Layer

 

A variety of technical and management measures are taken to ensure normal working of network system and the availability, integrity and confidentiality of network data. Therefore, the main purpose of the security of network layer is to rule out any addition, modification, loss or divulgation of data subjected to network transmission and exchange.

 

For this purpose, besides reasonable network planning, the following technologies are employed:

 

Firewall technology;

 

Isolation technology;

 

Encryption technology;

 

VPN technology

 

6.4.4 Security of Application Layer

 

·       Complete identity authentication mechanism

 

The customers and management personnel within the system are required to access the system’s protected resources through identity authentication.

 

Different authentication strategies and authentication mechanisms are employed for different customers or internal users.

 

Different authentication intensity shall be set for different levels of operation.

 

·       Authorization and authentication

 

Operations by customers and users are regulated via authorization and authentication mechanisms.

 

·       Data encryption

 

Necessary data undergoes MD5 irreversible encryption to ensure the security of sensitive data effectively.

 

Secrecy of transaction data: measures shall be taken to prevent the divulgation of important financial information & account information and the misappropriation of transaction data & information.

 

·       Integrity of transaction data

 

Measures shall be taken to prevent the juggling of sensitive, confidential and significant data in transmission.

 

·       Non-repudiation of transaction data

 

The whole process of transaction can be recorded to serve as audit basis.

 

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6.4.5 Security of Information Representation Layer

 

Methods including webpage anti-juggling, content filtering, content management and data authorization management are used to attain the security of system information representation.

 

6.4.6 Security of Management Layer

 

In addition to technical means, a sound security management mechanism shall be established to ensure secure & stable operation of the system. Such mechanism involves:

 

Security technology

 

Security equipment

 

Security management system

 

Department & personnel management

 

......

 

6.5 Data Storage and Backup

 

6.5.1 Backup/Recovery Content

 

For business applications, data is the most important. Though those data come from business system, it is rather costly to retrieve TB-level data from business system in case of data damage or loss, and this will also affect normal operation of business system. Therefore, it is necessary to do a good job in data backup.

 

In addition, key applications, data and parameters within mainframe system also require periodical backup.

 

6.5.2 Consideration of backup data quantity

 

In planning the capacity of backup device (tape library system), the following data backup/recovery mechanisms shall be guaranteed:

 

·                      Full data backup shall be done at least twice. The next full backup covers the first backup (the second backup to be saved). The mechanism of periodical full backup of data may be established according to data growth status.

 

·                      Periodical incremental backup of data shall be guaranteed between two full backups of data.

 

·                      Backup of key applications, data and parameters of mainframe system

 

The capacity of backup equipment may be considered and planned according to the quantity of business data which makes up the bulk of database. Generally speaking, the capacity of backup device shall be at least 4 times the said data quantity.

 

6.5.3 Daily data backup strategy

 

The approaches of daily data backup are generally divided into incremental backup, full backup and complete backup.

 

·                      Incremental backup

 

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Incremental backup means a backup of the changed part of a selected object on the basis of the previous backup. One full backup and all subsequent incremental backups are required for the recovery of any selected object. In addition, corresponding incremental backup strategies may be worked out to address specific needs. For instance, the possibility of backing up historical data on tapes according to specific years and months in the future may be considered.

 

·                      Full backup

 

Full backup means entire backup of the selected object. During recovery, we shall merely rely on this backup to recover the selected object. In general, the so-called full backup refers to the full backup of certain parts of the system rather than the backup of the entire system.

 

·                      Complete backup

 

Complete backup means entire backup of all objects of a system. During recovery, we shall merely rely on this backup to recover the whole system or specific objects of the system.

 

In Qihoo Online Shopping Mall Information System, large quantities of data are likely to be loaded into core business directories on a daily basis. Out of concern for processing speed and access space in such drastic data change, it is generally advised to perform complete backup of such directories instead of recording data change in the log.

 

6.5.4 Recovery Processing

 

System fault recovery

 

System faults fall into the following types: system software, CPU/ node fault and disk fault, which are specified below.

 

·                      System software:

 

Data recovery is required only when system software failure results in data corruption or crash. Engineer first attempts to repair the damaged data online. If such attempt fails, data recovery is needed, namely recovering data from backup.

 

·                      CPU/node fault:

 

In case of CPU/node fault, the process on faulty node will be automatically transplanted onto other nodes, and load balance will automatically proceed without need for human intervention for data recovery.

 

·                      Disk fault:

 

In the event of total failure of disk system (of course, the probability is rather low), defective modules must be replaced, and the system shall be re-initialized so that data can be recovered from backup cartridge.

 

Hardware upgrade and recovery

 

In most cases, hardware upgrade does not require data unloading or reloading, and the product can automatically realize data synchronization.

 

Error recovery of application program

 

Erroneous application program means accidental damage to database which is attributed to erroneous program logic of the program itself.

 

We suggest backing up data files used for interfacing. When recovery is needed, first delete the data sheet, and then recover the data sheet from backup cartridge and correct the error in the application program. Resume the application program for data loading.

 

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Disaster recovery

 

We suggest that the cartridge should undergo double backup, and one backup must be stored in other place. Though not all backups undergo duplexing, it is suggested that double backup of tapes be conducted at least once every month, and one of those backups shall be sent to other places. In case of any disaster, the range and strategy of data recovery must be determined according to actual needs, and system recovery shall be done from external tape backup after the recovery of system platform.

 

Chapter 7 Project Management

 

7.1 Project Management Approaches

 

7.1.1 Project Organization Management

 

A project-based organization structure, scientific management, the leaders of both parties pushing forward and supervising the project, and the provision of business and technical experts are keys to successful implementation of the project. The project organization will make decisions on major issues during project implementation, check the progress of the project on a regular basis, learn about difficulties of various types during project implementations, make significant decisions and offer guidance on smooth operation of the project. For details of project organization structure, please refer to corresponding sections below.

 

7.1.2 Project Personnel Management

 

Project personnel management means reasonable and careful arrangement of specific working personnel in accordance with technical scope involved at different stages of the project and involved in all divisional works for the purpose of guaranteeing overall working efficiency and quality of project personnel.

 

To ensure smooth operation of the project, we will organize an efficient project team and strictly implement the control process of “ISO9001 quality management system”.

 

7.1.3 Project Plan and Progress Management

 

The management and control of project plan and progress is critical to scheduled completion of the project.

 

(1)   Formation of project plan

 

Project progress plan is the benchmark and basis for project implementation and control, and is also the most effective tool designed to facilitate project organization, coordination, communication and control. It enables all people involved in project implementation to be well aware of their respective working goals, methods and approaches to reach such goals, and corresponding time limit, and helps minimize the time, cost and other resources required to realize the objectives of the project.

 

(2)   Project progress control

 

Project progress report: Project Manager shall present a project progress report on time, and be fully responsible for the contents of such report. Items including “confirmed percentage of cumulative completed works”, “estimated man hours of remaining works”, “man hours of the project in the reporting period” in project progress report is extremely important to project analysis, so Project Manager must detail the scope of work of the project and fill up relevant items carefully and accurately and cautiously.

 

Progress analysis and control: analyze project reports and such information as the results of completed works and project

 

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expenses comprehensively based on progress plan, timely identify latent problems and risks with the project, and take countermeasures accordingly. Modification of progress plan: check against actual project-related information and conduct summary analysis with project progress. When actual progress deviates from initial plan, modify the plan according to project situations and keep a “description of plan modification” for record;

 

Any major change to progress plan: which involves milestones must be reported to the project leading group for examination and approval prior to actual performance of the plan. In case of any major event that affects project progress, the implementation progress of the project shall be re-negotiated, and the new version of “projection implementation plan” shall be submitted and kept for record.

 

7.1.4 Project Communication Management

 

Communication management is a key part of project management. It is very important to reach an agreement on major issues concerning the project. Rules and regulations relating to project communication management include:

 

(1) Project decision-making system

 

Project decision-making system is a system of making necessary decisions on conflicting responsibilities/duties during project implementation as well as major disputes arising from the project or major project risks. Main principles for project decision-making system include:

 

Principle of initiating a request for decision-making on its own;

 

Principle of project manager making an initial decision;

 

Principle of documenting decisions on major issues;

 

Principle of project leading group making final decisions.

 

(2) Project communication system

 

Daily communication and exchange concerning the project is very important in the course of project implementation. This helps avoid or timely detect some significant problems or hazards existing in the project. Main principles for project communication system include:

 

Principle of raising questions/problems timely: if any factor that might affect the completion of any work on schedule with required quantity and quality within the scope of responsibility of any project member, Project Manager or relevant responsible persons shall be timely reported in writing.

 

Principle of timely clarification: for any task allocated to any project member, no objection means that the member has fully understood the elements relating to the task, such as working environment, work results and work requirements. For this purpose, the task receiver shall timely communicate with task allocator at the time of accepting the task to clarify all relevant factors.

 

(3) Regular meeting system

 

A project-related regular meeting is a work meeting at which all parties involved communicate and exchange information, coordinate and study how to settle various problems existing in contract performance. A project-related regular meeting is organized and presided over by Project Manager and attendees include our Project Manager and project-related personnel, Employer’s site representative and the employees of other entities relating to project implementation.

 

(4) Principles for problem and dispute resolution

 

34

 

Principle of timely reporting problems: with respect to problems arising during the project, the problem initiator must within 3 days from the occurrence of the problem submit a report to Project Manager. If such a problem is not timely reported, the consequences of such delay shall be borne by the person who fails to timely report the problem.

 

Problem reporting approach: general problems may be reported orally, while significant problems or issues shall be reported in writing.

 

Dispute resolution: for the purpose of the project, any point of view on which no consensus is reached is deemed a dispute. Any dispute shall be promptly reported to the immediate higher authorization in charge of the project and finally reported to the project leading group. If no agreement is reached within the leading group, the principle of “whoever makes decision is liable for the losses incurred to the other party and the project” shall be obeyed.

 

7.1.5 Project Risk Management

 

In the course of project implementation, all risk factors of the project in different aspects shall be fully considered and reasonable measures shall be taken as soon as possible to minimize the losses incurred to the project. Based on our years’ project implementation experience, major risk factors of the project include:

 

(1) Resource risk

 

Resource risk arises when there is an imbalance between the supply and demand of human resources and technical resources for the Project. So it requires plenty of mutual communication, exchange, coordination and collaboration between the Employer and Party B’s personnel. The lack or change of project personnel will exert a huge effect on the Project. Therefore, the stability of human resources is extremely important to both parties to the Project.

 

Countermeasures: we will try our best to provide a sufficient number of professional technicians. We will also strengthen the cultural construction of Project Team, and improve the cohesion of the Project to avert the risk of personnel change.

 

(2) Cost risk

 

Cost management is a key part of project management and control, and is intended to control project expenses and ensure completion of the project within the budget.

 

Countermeasures: first of all, work out a project budget and use it as the basis for project cost control. Carry out project cost control through project expense reporting, cost analysis & control, and project budget adjustment.

 

(3) Quality risk

 

There are rigorous requirements on the results of the project, and the quality risk of the project lies in the difference between the system and actual needs.

 

Countermeasures: we will review the staged results of the project as planned, conduct inspection in strict accordance with the previously established quality standard system, timely correct and settle quality problems raised by the Employer.

 

7.1.6 Version Management of Project Results

 

A large number of documents and program codes will be generated during software development. To guarantee effective management and full use of project results and materials, a project configuration management proposal shall be established after the initiation of the project, and version management will be one of the emphases of such a proposal.

 

We use StarTeam software from Borland as the configuration management tool for the project. The members of the project and

 

35

 

read/write authorization of each such member will be defined at the initiation of the project. A directory of staged results and corresponding subdirectories will be established in line with project plan, and the members of project team will deposit the results of different stages and allocate the authorization for such results pursuant to the rules. In the meantime, the version management system will be also established, and the application for and release of versions will be performed according to the plan.

 

7.2 Project’s Lifecycle Selection

 

Software lifecycle means the whole process of software products or systems from creation, use to elimination. At the early stage of computer technology, people simply understood software development as programming. With increasing complexity of software, people have come to realize that software development shall comprise such activities as requirement analysis, design, realization and testing, and that those activities shall be finished at different stages in appropriate manners.

 

A software lifecycle model is a structural framework describing all processes, activities and tasks of software development. Common software lifecycle models include waterfall model, iteration model, prototype model and spiral model.

 

In accordance with the requirements on development and management of the project, the software development process model adopts rapid prototyping method for iteration development. Rapid prototyping method is a new system development approach designed to address problems existing in the structured lifecycle approach. Its major principle is: first establish a prototype which reflects the user’s main requirements.

 

In this way, the user can have a general picture of the new system so that it can determine which functions meet its requirements and which functions need further improvement. Then improve the prototype repeatedly and develop a new system that fully complies with the user’s requirements. The rapid prototyping method is illustrated below:

 

[Graphics]

 

The requirement defining process in the rapid prototyping method is a long-time process involving strong collaboration between development personnel and user. Starting from a prototype system that meets the user’s basic requirements, the user may continue to raise better requirements in the course of development for furtherance of the system. It is actually an iteration cyclic development mode.

 

7.3 Project Progress Control

 

Project progress report: Project Manager shall present a project progress report on time, and be fully responsible for the contents of such report. Items including “confirmed percentage of cumulative completed works”, “estimated man hours of remaining works”, “man hours of the project in the reporting period” in project progress report is extremely important to project analysis, so Project Manager must detail the scope of work of the project and fill up relevant items carefully and accurately and cautiously.

 

Progress analysis and control: analyze project reports and such information as the results of completed works and project expenses comprehensively based on progress plan, timely identify latent problems and risks with the project, and take countermeasures accordingly.

 

Modification of progress plan: check against actual project-related information and conduct summary analysis with project progress. When actual progress deviates from initial plan, modify the plan according to project realities and keep a “description of plan modification” for record.

 

36

 

7.4 Project Organization Structure

 

[Graphics]

 

7.4.1 Project Organization Structure

 

Considering project characteristics, both parties shall coordinate closely and abide by the following project management principles during project implementation:

 

·                      The parties to the project shall cooperate in dealing with the works for which they share the common objectives;

 

·                      Both parties shall work together for the construction of the project;

 

·                      All entities of both parties are related to the project and bear the responsibility for their respective works.

 

·                      Principle of linking rights to responsibilities: if any party to the project has the right to decide on a certain event, method or judgment, it shall be responsible for any result or loss arising from such decision;

 

·                      Objective-oriented principle: when any party involved in the project raises any requirement against any member or the other party, such requirement shall be limited to the aspects of the objectives. It generally does not request the other party to take specific methods or processes to attain the objectives so that the other party can achieve its objectives according to its own organization and working modes. Both parties shall understand that each party has their consistent organization and working modes and the methods to push forward relevant issues;

 

·                      Principle of documenting responsibilities/duties: important responsibilities or rights shall be reported in writing to project responsible organization;

 

·                      The user’s technical personnel may join corresponding team and participate in relevant technical discussions and development of application system.

 

7.4.2 Responsibilities of Members of Project Organization Structure

 

	
Role
    	
 
    	
Abbreviation
    	
 
    	
Main
   members
    	
 
    	
Responsibility
    
	
Project   leading group
    	
 
    	
 
    	
 
    	
 
    	
 
    	
The User is   central to smooth operation of the Project. To facilitate smooth   implementation of the Project, the User shall cause its top executive in   charge of the Project to work as the leader of the project leading group, who   is responsible to direct the Project, promote the coordination between the   Project and the User and ensure smooth execution of the Project.

The Company will   appoint one of its top executives as the deputy leader of the project leading   group to ensure enough resources from the Company are inputted into the   Project.  The power and responsibility of project   leading group include:

·      approving   project objectives and general progress;

·      approving   the working modes and methods of project implementation;

·      deciding   on disputes between project management layers of both parties;

·      approving   major project changes;

·      learning   about project progress and pointing out the deviations from project   objectives and direction.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
User party
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Project   Manager
    	
 
    	
CPM
    	
 
    	
 
    	
 
    	
CPM, the   representative of the User, is in charge of the User’s project management and   responsible for the success or failure of the whole Project. CPM is appointed   by the User.

CPM is   responsible to liaise with the Company’s project manager. They are jointly   responsible for the management and
    

 

37

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
supervision of   project implementation, and for fulfillment of various management tasks of   the Project. CPM also supervises the activities of the Company’s project   team, and offers support and assistance for the operations of the Company’s   project team.

CPM is   responsible to coordinate internal institutions and branch offices of the   User as well as other customers and users involved in the Project. Its   responsibilities include:  putting forward the requirements on the   entire Project to the project leading group on behalf of the User;

·  cooperating   well with the Company’s project manager, jointly determining and organizing   the implementation of project plan as well as other tasks or plans allocated   by the project leading group;

·  allocating and guaranteeing the   implementation of tasks/plans, coordinating the resources necessary for   project implementation that require the User’s efforts, timely communicating   explicit working responsibilities and associated requirements to relevant   executors of the User to ensure proper performance of such responsibilities   and requirements;

·  As   a leading interface and channel for communication between User and Company,   CPM submits the requests for the Company to complete all required tasks   through the Company’s project manager on behalf of the User, and inspects and   confirms the products or services provided by the Company on behalf of the   User;

·  submitting   to the project leading group on a regular or irregular basis project progress   reports and the reports of issues requiring mutual coordination which are   jointly prepared by project managers of both parties.
    
	
Business
   decision-making
   manager
    	
 
    	
CBDM
    	
 
    	
 
    	
 
    	
As the User’s   leader in charge of business decision-making, CBDM is responsible to:
    
	
 
    	
·  communicate   with all IT service providers including the Company;
    
	
 
    	
·  interpret   all policies and industrial standards of business application system   accurately;
    
	
 
    	
·  describe business requirements of   business application system in detail;
    
	
 
    	
·  put   forward and sign confirmation of user requirements of the department where   CBDM works.
    
	
Technological
   business-making
   manager
    	
 
    	
CTDM
    	
 
    	
 
    	
 
    	
As the User’s   leader in charge of technological decision-making, CTDM is responsible to:
    
	
 
    	
·  conduct consultation & planning,   organize the implementation, and perform operating maintenance of the User’s   information system;
    
	
 
    	
·  arrange   technical personnel to participate in and push forward the Project;
    
	
 
    	
·  coordinate   subordinates or parallel business partners to work out integration standards.
    
	
Business   requirement
   personnel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Main   responsibilities include:
    
	
 
    	
·  proposing,   interpreting and defining business requirements under the guidance of CBDM;
    
	
 
    	
·  participating   in requirement investigation and analysis.
    
	
Technical   personnel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Main   responsibilities include:
    
	
 
    	
·  putting   forward and defining IT status quo, existing problems and requirements under   the guidance of CTDM;
    
	
 
    	
·  engaging   in planning and design.
    
	
Company
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Project   manager
    	
 
    	
PM
    	
 
    	
 
    	
 
    	
PM is appointed   by the Company and generally responsible for the implementation and   management of the Project and for fulfilling contract objectives, project   planning, project personnel arrangement, human resources guarantee and   coordination & settlement of major issues, and is directly   responsible for the success or failure of the entire Project. Its major   responsibilities include:
    
	
 
    	
·  carrying   out all tasks involved in project implementation, including assistance in   drafting and forming project implementation plan and report, task division,   allocation, inspection and acceptance, and arranging and establishing all
    

 

38

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
documents   concerning implementation of the Project;
    
	
 
    	
·  accepting   or undertaking various service requests and other resource requests from the   User on behalf of the Company, and implementing or feeding back the results   of handling such requests;
    
	
 
    	
·  serving   as a major channel of communication with the User, responsible for   coordinating and organizing all Company’s resources required for project   implementation, dividing and allocating tasks to each specific person, and   formulating a set of control and coordination methods to guarantee quality,   project schedule and efficiency;
    
	
 
    	
·  implementing   all engineering or technical tasks allocated by project leading group during   project implementation. The Company’s customer relations manager is   responsible to coordinate and settle commercial issues other than technical   or engineering aspects or tasks newly proposed by the User without consent of   both parties.
    
	
Customer   relations
   manager
    	
 
    	
CR
    	
 
    	
 
    	
 
    	
CR is appointed   by the Company and in charge of execution and monitoring of Project Contract.   It is fully responsible for smooth performance of Project Contract on behalf   of the Company, and serves as a major channel for communication with the User   on non-technical issues. Its responsibilities include:
    
	
 
    	
·  communicating   with customers and recording their feedback on a regular basis;
    
	
 
    	
·  handling   and tracking the settlement of non-engineering technical issues and events of   the Project (such as commercial or legal issues);
    
	
 
    	
·  assisting   PM in coordinating the Company’s resources and external resources;
    
	
 
    	
·  serving   as another channel for communication with the User, investigating,   soliciting, receiving, undertaking to handle or submit any request and   complaint from the User, and preventing the blockage of PM’s communication   channel;
    
	
 
    	
·  reporting   to the project leading group on project monitoring and investigation results   as well as Contract performance, providing major relevant issues, and   ensuring smooth Project implementation and performance of the Contract.
    
	
Requirement   analysis
   engineer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Major   responsibilities include:
    
	
 
    	
business survey   and business requirement analysis of the system
    
	
System   design engineer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Major   responsibilities include:
    
	
 
    	
architecture   design and planning of the system;
    
	
 
    	
preliminary   design and detailed design of the system.
    
	
Software   development
   engineer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Major   responsibilities include:
    
	
 
    	
Realization of   system code
    
	
Software   testing
   engineer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Major   responsibilities include:
    
	
 
    	
System testing
    
	
UI design   engineer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Major   responsibilities include:
    
	
 
    	
UI design of the   system
    
	
Training   and
   implementation engineer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Major   responsibilities include:
    
	
 
    	
system training;
    
	
 
    	
system   implementation
    

 

7.5 Project Quality Guarantee Scheme

 

7.5.1 Quality Risk Analysis

 

Based on our years’ system development experience and analysis of realities of the Project, we argue that major quality risks existing with the development of this Project include unclear boundary of system development, less -thorough understanding of requirements, continual addition or change to user requirements in the course of system design.

 

Therefore, we are expected to have control capacity and requirement management capacity required for system development in project implementation so that the proposed system can be finished on schedule with required quality and satisfy customer’s

 

39

 

requirements.

 

7.5.2 Quality Guarantee Guideline

 

Quality guideline: pursuit of perfection, continual innovation, scientific management, user satisfaction.

 

Quality objective: to ensure the continuity of technical scheme and project management scheme.

 

Quality commitment: provide the goods and services to customer’s satisfaction in strict compliance with ISO quality standards

 

7.5.3 Quality Management Methods

 

According to process control theory, project quality is affected and controlled by the quality of project process. Establishing quality standard in advance for project implementation process and supervising and inspecting actual process of project implementation in accordance with this standard is critical to the quality of the entire project.

 

With respect to requirement investigation and analysis & design, development realization, and system go-live and training stages of system development process, phased review points shall be set accordingly to ensure that project quality is controllable.

 

Project quality management involves:

 

(1) Making quality management plan

 

Work out a specific quality management plan and determine acceptance criteria for different stages according to general implementation plan and phased plan of the Project.

 

(2) Strict engineering management

 

Exercise strict engineering management on the Project, carry through the Project in strict accordance with the previously established specifications and standards, and strengthen communication and staged review.

 

(3) Establishing stringent quality control system

 

Set up a dedicated quality assurance team for the Project, conduct strict phased reviews and multi-level comprehensive acceptance.

 

(4) Developing a sound result management system

 

Document result management during project management, and keep corresponding result records for major steps and processes of the Project. Make sure that operation process at each stage is organized with clear definition of responsibility, smooth handover and corresponding records.

 

(5) Sound coordination mechanism

 

To learn about project progress timely, a system of reporting project status regularly shall be established to communicate with the User, feed back existing problems and timely identify and settle problems. In this way, various types of resources can be used reasonably for the purpose of improved quality and reduced cost.

 

7.5.4 Quality Guarantee Measures

 

1. Personnel guarantee measure: first-class technical experts

 

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We have a host of experienced technical experts, and we will select a first-rate project team to guarantee high level of project implementation.

 

2. Process guarantee measure: leading implementation process scheme

 

Rigorous & meticulous process control: throughout project implementation, implementation personnel shall record important issues like customer requirements, comments, customer feedback and results.

 

Strict performance of phased review: the previously stipulated stage-specific deliverables shall be reviewed pursuant to the Contract to ensure that the quality of staged deliverables is approved by the User.

 

Perfect requirement management scheme: at the time of requirement investigation and analysis, consult the leaders, business personnel and technical personnel of the User in all aspects and conduct comprehensive requirement investigation and analysis; meanwhile, perform strict management of additional requirements or requirement changes in requirement change management & control approaches and make sure that the requirements are traceable, manageable and controllable.

 

3. Result guarantee measure: strict quality review and control

 

Comply with and execute management regulations strictly during system development. Perform unit module test, functional test, performance test and integration test in strict accordance with development mode to ensure system quality.

 

In addition, set up a dedicated QA team to check if the results conform to customer requirements and ensure that the results of the Project fully meet the User’s quality requirements.

 

Chapter 8 Project Testing Scheme

 

8.1 Test Process

 

As an important link of soft engineering, testing requires whole-process management. Our testing starts at software requirement drafting and runs through the whole software engineering from software development and go-live & completion. Processes and works involved are detailed below:

 

Reciprocal diagram between software testing and software implementation

 

[Graphics]

 

8.2 Test Stage

 

According to test process, testing can be divided into four stages. Each stage and corresponding emphases are detailed below:

 

Unit test stage

 

Check whether each software unit can fulfill its functions properly

 

Check whether each software unit can meet performance and interface requirements

 

Consistency between verification procedure and the description of detailed design

 

Integration test stage

 

Verify the interface relationship between software units

 

41

 

Assemble tested units into software that meets design requirements

 

Consistency between verification procedure and the description of preliminary design

 

Detection and correction of errors between module interfaces

 

System test stage

 

In the system’s real working environment, check whether the software can be properly connected to the system

 

Whether the functional and performance requirements stated in job specification of software development are met

 

Acceptance test stage

 

Check whether the software works according to technical requirements set out in software requirement specification, such as software functions, performance, restraints and limitations

 

Check whether the software can be connected to other parts of the system and work properly (when the software needs to operation in conjunction with other software)

 

Verify the correctness and completeness of user’s manual and operation manual

 

8.3 Test Method

 

The combination of manual test and automatic test is adopted for testing purpose.

 

In terms of test design, design methods of white box, grey box or black box are employed depending on different test stages.

 

8.4 Test Process Flow

 

Test process flow is illustrated below:

 

[Graphics]

 

8.4.1 Formulation of Project Plan

 

·                      Test team leader shall work with all sub-team leaders to determine milestones for each sub-team given the Project period and resources;

 

·                      The leader of each sub-team shall allocate tasks to sub-team members and devise a detailed plan according to test requirements;

 

·                      Project Manager collects all test plans involving the Project and thus forms the project test plan;

 

·                      Estimate project risks and propose preventive measures;

 

·                      Plan the testing environment, training and review of the Project.

 

8.4.2 Project Tracking and Monitoring

 

·                      Progress and workload monitoring: test team leader will measure project progress and compare it with the plan each week; each member of project team will report the workload and the size of completed works each day, and Project Manager

 

42

 

will summarize such information at each stage and compare the summarization results with the plan; adjust and revise the plan based on comparison results;

 

·                      Risk monitoring: test team leader will estimate subsequent risk factors on a weekly basis, and take measures to circumvent several top-ranked risks;

 

·                     Milestone review: conduct milestone review at the points of completion of test plan, test scheme and test report, and monitor test progress, risks and amount of completed works;

 

·                      Problem and meeting record: each meeting and problems encountered during project will be recorded and tracked to ensure problem solving and work implementation.

 

8.4.3 Configuration Management

 

·                      Management of development and testing versions: before the start of each round of tests, the development team submits testing versions to the test team and those two teams sign the receipts for confirmation. The test team brings testing versions under controlled configuration management, and testing versions may not be changed during testing;

 

·                      Configuration management of testing work products: each work product subject to testing shall be brought under configuration management. For configuration options subjected to review, an application for change to such options shall be submitted for approval before any change is actually made.

 

8.4.4 Quality Assurance

 

·                      Organize experts, users and relevant personnel to review test plans, schemes and reports established in the course of testing;

 

·                      Test records and error records made during testing are subject to periodical inspection by test team leader;

 

8.4.5 Evaluation of Test Results

 

·                      In technological test, the test team shall design the following milestones:

 

a.                   requirement and design inspection;

 

b.                  requirement design milestones;

 

c.                   milestones for each round of system tests.

 

·                      At the milestones of completion of the first two stages, the test team shall surrender corresponding inspection/analysis reports, test plans and test descriptions.

 

·                      At the milestones of completion of each subsequent round of system testing, the test team shall submit test reports, summarize its implemented testing work, and evaluate the tested software or system.

 

·                      Evaluation bases are test examples listed in test descriptions, test logs, number and level of errors identified in tests, and the conclusions of quality inspection on tested software are thus reached:

 

a)                  pass all tests;

 

b)                 attain the designed functional and performance requirements;

 

43

 

c)                  basically attain the designed functional and performance requirements;

 

d)                 meet the designed functional and performance requirements after appropriate modification;

 

e)                  fail to meet the designed functional and performance requirements.

 

8.4.6 Error Management

 

·                      Error tracking and record: during test implementation, submit the identified errors to the problem management system and track such errors. Each error has the following lifecycle:

 

Detect — submit — modify — retest - end

 

·                      Error classification:

 

a) Fatal error: data loss, computational error, system catastrophe and abnormal crash

 

b) Major functional/performance error: unrealized or incomplete required function or unreasonable design causes poor performance and affects the operation of the system

 

c) Alarming error: functional/performance issues that do not affect business operations

 

d) Suggestive error: make suggestions on eliminating defects in software design and functional realization

 

·                      Error submission, modification and regression test:

 

a) When a definitive version submitted by the development team passes comprehensive system test, all errors are confirmed and submitted to relevant members of development team for modification. When the status of all errors changes into “modification complete”, the development team will submit a new version and start the next round of system test.

 

b) To ensure project progress, the test team shall submit the errors identified in one round of tests in batches (one batch every 2~3 days) via the User to the development team. Submit a complete test record after the end of each round of tests, and categorize, make statistics on and analyze identified errors, and develop a software problem report. Unless it is necessary, the test team does not accept any revised version prior to the completion of one round of tests.

 

c) After the development team completes the modification, the User shall submit updated software version and problem correction report to the test team for regression test. Problem correction report shall specify corrected errors, updated components, components that might be affected by modification, etc. Errors that fail to be corrected shall be explained. When the test team and development team disputes on issues like time, progress or quality, or any major error is detected during tests, the project coordination team shall be timely reported, and make decisions if necessary.

 

d) Start the next round of regression tests when the test team receives the updated version. Regression test performed by the test team is a comprehensive regression test to check if new errors are introduced into the modification.

 

8.5 Test Tools

 

In testing, correct selection of test tools is very important. Good test tools will be of great help to test personnel in completing test tasks, collecting, arranging and analyzing test results. Based on our analysis of test requirements for the Project and our experience in using tools in previous tests, the adopted test tools are shown below:

 

	
Product type
    	
 
    	
Product name
    	
 
    	
Product source
    	
 
    	
Description
    
	
Functional   test
    	
 
    	
Rational   Robot
    	
 
    	
IBM
    	
 
    	
GUI-based   function test, provision of test examples for
    

 

44

 

	
tool
    	
 
    	
 
    	
 
    	
 
    	
 
    	
common   objects including menus, lists and bit maps, provision of specialized test   examples for objects dedicated to development environment
    
	
Performance   test tool
    	
 
    	
LoadRunner
    	
 
    	
MI
    	
 
    	
Recording   of performance test script, concurrent simulation, performance monitoring and   recording & analysis of test results
    
	
Pressure   test procedure
    	
 
    	
Developed   independently
    	
 
    	
If actual   system offers insufficient support to test tools, it might be necessary to   develop a pressure test program independently
    
	
Test   management tool
    	
 
    	
TestDirector
    	
 
    	
MI
    	
 
    	
Organize and   manage test process
    

 

Chapter 9 Services and Training

 

9.1 Scope of Services

 

·                      Organization structure of services

 

Qizhi Software (Beijing) Co., Ltd. offers comprehensive after-sales and technical support to Internet online sales system.

 

In terms of organization structure, the project leading group will offer overall guidance and supervision, while the manager of technical support department of Qizhi Software (Beijing) Co., Ltd. will head the service team. Persons in charge of all relevant sub-teams will join the service team and dispatch specific technical personnel to execute the services.

 

Detailed services cover all service links, i.e., before-sales, in-sales and after-sales links (especially issues involving system upgrade and software upgrade).

 

·                      The scope of detailed services offered by Qizhi Software (Beijing) Co., Ltd. includes:

 

Before-sales services: describe technical features, present solutions, explain technical details, describe the methods of realizing performance, functionality and security, explain the system’s cross-platform technical characteristic, elucidate the system’s maturity and good development potential.

 

In-sales services: Party B shall submit a project development plan prior to development, a progress report each week during development, and accept Party A’s inspection and detail investigation on an unscheduled basis. After completing software development, Party B shall present user’s manual, system development specification, detail development specification, test plan and regulations for writing of all source programs and source codes. Both parties shall jointly prepare a test plan after finishing the tests.

 

After-sales services:

 

Service mode

 

Services are made available in the forms of field service and remote service.

 

·                      Service clauses and commitments

 

Maintenance services shall be provided free of charge within the period stipulated in the Contract which starts from the date when software system passes acceptance inspection.

 

Maintenance services are provided in the forms of field maintenance and remote maintenance.

 

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One person shall be designated responsible for maintenance of this Project within the maintenance period.

 

The security, stability and reliability of software shall be guaranteed after the end of maintenance period.

 

9.2 Silver Service Plan

 

Guided by the tenet of “service first, customer foremost”, we attach great importance to technical support service in market competition. For this purpose, we have established a specialized after-sales service team with a complete set of comprehensive service solutions. We also continually improve our technical support plan by drawing on lessons from our practices. This plan generally involves:

 

9.2.1 Hotline Support Service (7*24hrs)

 

No limitation on number of dials: the call number of “service hotline” can be dialed any time as long as the system is found defective.

 

9.2.2 Remote Dial-in Analysis

 

Data show that at least 70% of system failures in IT industry are attributed to software and configuration problems. Remote dial-in mode will greatly improve diagnostic speed and working efficiency and cut maintenance cost.

 

Network development nowadays makes this approach possible. If the User permits, our engineers will diagnose and troubleshoot the system quickly and directly via remote dial-in.

 

9.2.3 Field Support Service (7*24hrs)

 

When the system is diagnosed with irreversible defect, we will dispatch field engineers to carry necessary materials and rush to the field for emergency repair, and try to minimize the duration of system failure.

 

9.2.4 Priority and Response Speed

 

In the event of system trouble, depending on priority and response time of support service center, we provide three different levels of service, including urgent (system cannot be used), serious (the system is seriously damaged) and less serious at corresponding response speed (subject to departure time).

 

Response time

 

	
User-defined priority
    	
 
    	
Telephone response
    	
 
    	
Field response
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Emergency (system breakdown)
    	
 
    	
Within 4   hours
    	
 
    	
Within 1   workday
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Serious (serious system malfunction)
    	
 
    	
Within 8   hours
    	
 
    	
Within 2   workdays
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Not serious (minor system failure)
    	
 
    	
Within 24   hours
    	
 
    	
Within 3   workdays
    	
 
    

 

46

 

9.2.5 Periodical Patrolling Inspection

 

Some links to which no enough attention is paid prove to be quite important.

 

If some latent problems are identified timely, this will considerably increase the system’s MTBF (mean time between failures);

 

Some problems which are tiny but often neglected may turn out to be fatal;

 

Sometimes software system has no obvious defects but unsatisfactory operating performance. Therefore, improving or extending system configuration is required.

 

Periodical patrolling inspection can solve the foregoing problems and meet customers’ various needs:

 

Routine inspection of system and surrounding environment;

 

Software repair and maintenance versions;

 

Introduction of latest products and industry information; and

 

Experience and lessons from other users.

 

Service and technology support is a strategic issue for any enterprise seeking development in market competition. We always pay much attention to this issue.

 

Our commitment — we will always provide our customers with optimal services.

 

9.3 Training Content

 

1) Preparation of detailed training plan

 

A detailed training plan involves training content, courses, training period, relevant tests and examinations, training schedule, training personnel and training site, and such training is provided free of charge.

 

2) Scope and content of training

 

Training generally falls into three types: application training, technology training and management training.

 

Application training means the training on use and maintenance of application software developed for this Project. This kind of training shall be free of charge and completed within 2 months after the end of development. Such training shall enable Qihoo’s relevant technical personnel to use and maintain the software system skillfully.

 

Technical training is the training on technologies used for this Project. Qizhi Software (Beijing) Co., Ltd. will give play to its training advantage and offer training to relevant technical personnel without charge.

 

Management training means professional management training and certification examinations recommended by Qizhi Software (Beijing) Co., Ltd. to Qihoo and its relevant business management personnel. This training is authorized by American PMP Association, and trainers are recruited from USA (with interpretation). Training is provided on weekends, and trains are arranged to take certification exams together. The applicability and value of the management certificate is recognized worldwide.

 

3) Organization form of training

 

Considering that Qihoo’s employees are usually busy, training is organized by Qizhi Software (Beijing) Co., Ltd., and the convener named by Qihoo shall contact related personnel. As a rule, prearranged trainings shall not be changed, and no training

 

47

 

will be offered to trainees absent from any training.

 

4) Guarantee of training result

 

For application training, Qizhi Software (Beijing) Co., Ltd. is responsible for the quality of training for trainees; the leading member of Qizhi Software (Beijing) Co., Ltd. is responsible to supervise the quality of technical training and if necessary, our technical personnel will offer guidance (in flexible forms); the leading member of Qizhi Software (Beijing) Co., Ltd. is responsible for the quality of management training.

 

48

 

Appendix 2

 

Appendix 2: Confirmation for Acceptance of Qihoo Online Shopping Mall Information System

 

Project name: Qihoo Online Shopping Mall Information System

 

Date of acceptance:

 

	
Name of functional module
    	
 
    	
Status description
    	
 
    	
Signature of responsible person
    
	
1.   Portal website
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
2.   Product purchase
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
3.   Renewal & upgrade
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
4.   Online payment
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
5.   Customer service center
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
6.   Community
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
7.   Customer information management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
8.   Internal customer information management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
9.   Product information management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
10.   Supply, sale and storage management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
11.   Financial settlement management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
12.   Customer order management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
13.   Business configuration management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
14.   Unified payment platform
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
15.   Customer service management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
16.Community   management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
17.   Security authentication
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
18.   Log management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
19.   Task scheduling and control
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
20.   Statistical analysis & query platform
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
21.   Unified interfacing platform
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
22.   Parameterization configuration management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    

 

49

 

	
23.   Security management
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    
	
24.   Data storage & backup
    	
 
    	
Meet   requirements, pass
    	
 
    	
Party   A:        ; Party B:        
    

 

Module overview: 

 

Meet the technical & functional requirements of the development and pass the acceptance inspection

 

	
Responsible   person of Party A: 
    	
 
    	
Responsible   person of Party B: 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
Date:
    
	
 
    	
 
    	
 
    
	
System   overview:
    	
 
    	
 
    

 

Meet the technical & functional requirements of the development and pass the acceptance inspection

 

50

 

Appendix 3: Development Plan of Qihoo Online Shopping Mall Information System

 

1. Requirement Analysis

 

Understanding of overall objectives

 

According to our understanding of requirements, the overall objectives of Qihoo Online Shopping Mall Information System are: to satisfy the strategic needs of Qihoo’s business development, and establish the online sale system of online digital products with complete functions and corresponding management system and platform support system; to guarantee that the system must have necessary characteristics such as flexibility, stability and advancement.

 

Based on our experience in the construction of large-size e-commerce system and by fully considering the Project’s long-term and short-term objectives as well as its overall objectives and business requirements at various stages, we propose the construction of the Project in three stages to ensure operability and practicability on the principles of “Overall consideration and step by step”.

 

The first-stage objective of the Project is to complete the online sale subsystem and management functions and supporting modules necessary for smooth operation of the sale subsystem; the second-stage objective is to give priority to completion of background management system and make necessary upgrade and adjustment on the testing and operating results of the sale subsystem; the emphasis of the third stage is to complete supporting systems as well as system integration.

 

2. System Development Methods and Process

 

Two-dimensional development model based on unified software development process (RUP)

 

RUP software development lifecycle is a 2D software development model. The horizontal axis adopts time organization to show lifecycle characteristics and dynamic structure of development process, and the terms describing the horizontal axis include cycle, stage, iteration and milestones; the vertical axis adopts content organization to show natural logic activities and static structure of development process, and the terms describing the vertical axis include activities, products, workers and work flow. The model is illustrated below:

 

[Graphics]

 

1. Initial stage

 

The goal of initial stage is to establish business cases for the system and determine the boundary of the Project. For this purpose, it is imperative to identify all external entities interacting with the system and define the characteristics of interaction at a higher level. This stage is very significant, and much attention shall be paid to major risks in business and requirements during this stage. The end of initial stage is the first important milestone at which the basic survivability of the Project is evaluated.

 

2. Detailing Stage

 

The objective of detailing stage is to analyze problematic areas, establish a sound architecture system, prepare a project plan and eliminate the most risky elements from the Project. For this purpose, decisions must be made on system architecture, including scope, major functions and non-functional requirements such as performance, based on the understanding of the

 

51

 

whole system. In addition, supporting environment shall be established for the Project, including creation of development cases, templates, criteria and preparation of tools. The end of detailing stage is the second important milestone: to establish management criteria for the establishment of system structure and enable project team to consider such criteria during building stage. At this stage, the objective and scope of the system, structure selection and solutions against major risks shall be inspected.

 

3.             Building stage

 

At the building stage, the functions of all remaining components and application programs are developed and integrated into products, and all functions are subject to detail test. In a sense, building stage is a manufacturing process, whose emphasis lies in managing resources and controlling operations to optimize cost, progress and quality. The end of building stage is the third important milestone: to determine whether products can be deployed in testing environment. At this stage, it is necessary to ascertain whether the software, environment and user can start system operations. At this time product version is often called “beta” version.

 

4.             Delivery Stage

 

The emphasis of delivery stage is to ensure that the software is of use to end users. Delivery stage can span several iterations, including product test preceding release and minor adjustment based on user feedback. At this point of lifecycle, user feedback shall focus mainly on product adjustment, setting, installation and availability, and all major structural issues shall have been settled at the early stage of project lifecycle. The end of delivery stage is the fourth milestone, i.e., product release milestone. At this time, it is necessary to determine whether the objective has been fulfilled and whether another development cycle shall be started. In some cases, this milestone might overlap the end of initial stage of the next cycle.

 

Stage-1 Detailed Development Plan

 

Overall Description

 

Stage-1 Objective

 

Staged objectives: all functions of Online Shopping Mall website subsystem and necessary modules of management system and supporting system

 

Estimated period: 2009.1.1 – 2009.5.30

 

Major implementations involve:

 

·       Construction of architecture of Online Shopping Mall website subsystem

 

·       Construction of architecture of background management system

 

·       Complete data model

 

·       Development of functions of Online Shopping Mall website subsystem (except customer community)

 

·       Development of necessary modules of management system: customer information management, internal user information management, product information management and basic customer order management

 

·       To ensure smooth operation of Online Shopping Mall website subsystem, the existing payment platform system is temporarily used

 

52

 

·                      Development of necessary modules of support system: security authentication management, basic log management and establishment of basic security management system

 

Result Delivery Plan

 

	
No.
    	
 
    	
Document
   category
    	
 
    	
Document name
    	
 
    	
Document description
    	
 
    	
Persons in charge
    	
 
    	
Submission stage
    
	
1
    	
 
    	
Design
    	
 
    	
Design   Specification of Application Components
    	
 
    	
 
    	
 
    	
Design   personnel
    	
 
    	
Preliminary   design
    
	
2
    	
 
    	
Design
    	
 
    	
Specification   of Preliminary Design
    	
 
    	
 
    	
 
    	
Requirement   personnel
    	
 
    	
Preliminary   design
    
	
3
    	
 
    	
Planning
    	
 
    	
Development   Plan
    	
 
    	
 
    	
 
    	
Project   Manager
    	
 
    	
Preliminary   design
    
	
4
    	
 
    	
Planning
    	
 
    	
Quality   Assurance Plan
    	
 
    	
 
    	
 
    	
Quality   team
    	
 
    	
Requirement   stage
    
	
5
    	
 
    	
Planning
    	
 
    	
Configuration   management plan
    	
 
    	
 
    	
 
    	
Quality   team
    	
 
    	
Requirement   stage
    
	
6
    	
 
    	
Design
    	
 
    	
Database   Design Specification
    	
 
    	
 
    	
 
    	
Design   personnel
    	
 
    	
Preliminary   design
    
	
7
    	
 
    	
Design
    	
 
    	
Detail   Design Specification
    	
 
    	
Detailed   description of functional modules
    	
 
    	
Design   personnel
    	
 
    	
Detail   design
    
	
8
    	
 
    	
Planning
    	
 
    	
Weekly   Report of Development Progress
    	
 
    	
Weekly   progress and next-week work plan of the Project
    	
 
    	
Project   leader
    	
 
    	
Realization
    
	
9
    	
 
    	
Design
    	
 
    	
Programmer   Development Manual
    	
 
    	
Description   of module development, description of functional design
    	
 
    	
Encoding personnel
    	
 
    	
Realization   result inspection
    
	
10
    	
 
    	
Design
    	
 
    	
System   Interface Design Specification
    	
 
    	
Interface   description
    	
 
    	
Interfacing   personnel
    	
 
    	
Preliminary   design
    
	
11
    	
 
    	
Test
    	
 
    	
Test   Examples
    	
 
    	
Description   of test inputs & outputs
    	
 
    	
Quality   team
    	
 
    	
System   testing
    
	
12
    	
 
    	
Test
    	
 
    	
System   Testing Plan
    	
 
    	
Description   of progress and personnel arrangement
    	
 
    	
Quality   team
    	
 
    	
System   testing
    
	
13
    	
 
    	
Test
    	
 
    	
Test Analysis   Report (including bug list)
    	
 
    	
Analysis   and summary of test results
    	
 
    	
Quality   team
    	
 
    	
End of   system testing
    
	
14
    	
 
    	
Management
    	
 
    	
Summary   Report of Project Development
    	
 
    	
Summarization   of the entire project implementation and comments and experience from development   work
    	
 
    	
Project   leader
    	
 
    	
End of   system testing
    
	
15
    	
 
    	
Maintenance
    	
 
    	
User’s   Manual
    	
 
    	
Instructions   on system use
    	
 
    	
Requirement   personnel
    	
 
    	
System   testing
    
	
16
    	
 
    	
Maintenance
    	
 
    	
Program   Maintenance Manual
    	
 
    	
Development   environment, list of source codes
    	
 
    	
Encoding   personnel
    	
 
    	
End of   system testing
    
	
17
    	
 
    	
Program
    	
 
    	
Packet of   Project Source Codes
    	
 
    	
Packet of   source codes of the entire subsystem
    	
 
    	
Integration   personnel
    	
 
    	
End of   system testing
    
	
18
    	
 
    	
Program
    	
 
    	
Packet of   Project Operation Codes
    	
 
    	
Packet of   source codes of the entire subsystem
    	
 
    	
Integration   personnel
    	
 
    	
End of   system testing
    
	
19
    	
 
    	
Maintenance
    	
 
    	
System   Installation and Maintenance Manual
    	
 
    	
Preparation   and setting for system operation, description of installation procedures
    	
 
    	
Design   personnel
    	
 
    	
End of   system testing
    
	
20
    	
 
    	
 
    	
 
    	
Project   Log
    	
 
    	
 
    	
 
    	
Project   leader
    	
 
    	
All stages   of the Project
    
	
21
    	
 
    	
Maintenance
    	
 
    	
Application   Software Configuration Record
    	
 
    	
Configuration   record
    	
 
    	
Quality   team
    	
 
    	
Project   completion
    

 

53

 

Initial stage

 

This stage mainly involves defining high-level business process and system boundary.

 

[Graphics]

 

Detailing Stage

 

This stage chiefly involves addressing technical risks existing in the system, defining system functions and platform framework. At this stage, various requirement analysis documents and preliminary detail & detail design documents shall be submitted.

 

[Graphics]

 

Building stage

 

Large-scale development starts at this stage.

 

[Graphics]

 

Delivery Stage

 

[Graphics]

 

Framework Plan of Stage-2 Development

 

The second stage lasts 120 days from 2009-06-01 to 2009-09-30.

 

Stage-2 Objectives

 

Staged objectives: to realize the majority of modules of background management system and adjustment & upgrade of Online Shopping Mall website subsystem

 

Estimated period: 2009.6.1 – 2009.9.30

 

Notice: considering the possibility of jointly debugging between some modules of Online Shopping Mall website subsystem & background management system and third-party interfaces, project progress is likely to be delayed due to third-party’s fault.

 

Major implementations include:

 

·                      optimization of management system framework

 

·                      business configuration management

 

·                      product inventory management

 

·                      finance staged management

 

54

 

·                      sound customer order management

 

·                      unified payment platform

 

·                      community in Online Shopping Mall website subsystem and community management

 

·                      perfection of log management module in system support

 

·                      provision of basic statistical analysis & query platform

 

·                      provision of basic unified interfacing platform

 

·                      improvement of security system

 

	
Stage
    	
 
    	
Task
    	
 
    	
Duration
    	
 
    	
Starting date
    	
 
    	
Ending date
    
	
Initial   stage
    	
 
    	
Requirement   analysis of product cooperation & marketing platform
    	
 
    	
15 days
    	
 
    	
2009-06-01
    	
 
    	
2009-06-15
    
	
Detailing stage
    	
 
    	
Confirmation   of requirement specification, detailed development specification
    	
 
    	
25 days
    	
 
    	
2009-06-01
    	
 
    	
2009-07-10
    
	
Building stage
    	
 
    	
Development &   testing of functional modules, completion of overall functions
    	
 
    	
60 days
    	
 
    	
2009-07-11
    	
 
    	
2009-09-11
    
	
Delivery   stage
    	
 
    	
Testing,   modification, release
    	
 
    	
20 days
    	
 
    	
2009-09-12
    	
 
    	
2009-09-30
    
	
 
    	
 
    	
Go-live
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Framework Plan of Stage-3 Development

 

The third stage lasts 90 days from 2009-10-01 to 2009-12-30.

 

Stage-3 Objectives

 

Staged objectives: to lay emphasis on completing all functions of support system, improving the Online Shopping Mall website subsystem and background management system, and completing comprehensive integration test and overall operation of the system.

 

Recommend period: 2009.10.01 – 2009.12.30

 

Major implementations include:

 

·                      completion of task scheduling and control module

 

·                      improvement of statistical analysis & query platform

 

·                      realization of Parameterization system configuration

 

·                      improvement of unified interfacing platform

 

·                      adjustment and upgrade of relevant modules of Online Shopping Mall website subsystem and background management system

 

·                      system integration test

 

·                      overall operation

 

55

 

·                      establishment of data storage and backup system

 

	
Stage
    	
 
    	
Task
    	
 
    	
Duration
    	
 
    	
Starting date
    	
 
    	
Ending date
    
	
Initial   stage
    	
 
    	
Requirement   analysis of product cooperation & marketing platform
    	
 
    	
10 days
    	
 
    	
2009-10-01
    	
 
    	
2009-10-10
    
	
Detailing   stage
    	
 
    	
Confirmation   of requirement specification, detailed development specification
    	
 
    	
15 days
    	
 
    	
2009-10-11
    	
 
    	
2009-10-25
    
	
Building   stage
    	
 
    	
Development &   testing of functional modules, completion of overall functions
    	
 
    	
35 days
    	
 
    	
2009-10-26
    	
 
    	
2009-11-30
    
	
Delivery   stage
    	
 
    	
Testing,   modification, release
    	
 
    	
30 days
    	
 
    	
2009-12-01
    	
 
    	
2009-12-30
    
	
 
    	
 
    	
Go-live
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

56

 

Confidentiality Agreement for Qihoo Online Shopping Mall Information System

 

 (Appendix 4)

 

Party A: Beijing Qihu Technology Company Limited

 

Party B: Qizhi Software (Beijing) Co., Ltd.

 

WHEREAS,

 

1. Party A and Party B (the “Parties”) are developing the “Qihoo Online Shopping Mall Information System” (the “Project”);

 

2. Party A engages Party B to carry out the researching and developing activities in the Project;

 

3. During the implementation and cooperation of the Project, each Party will provide the other Party with the relevant confidential information which is lawfully owned by the disclosing party;

 

4. The Parties wish to effectively protect the confidential information defined herein.

 

NOW, THEREFORE, the Parties hereby enter into the following agreements through negotiation:

 

ARTICLE 1 DEFINITION OF CONFIDENTIAL INFORMATION

 

1. All commercial, marketing, technical, operational or other materials and information received by Party B from Party A during the development of the Project hereunder and relating to the Project or generated from the Project, in whatever forms or media, or indicated as confidential by oral, visual or any other written form at the time of disclosure;

 

2. This Contract and all appendices and supplementations attached hereto signed by the Parties, and all software, software directories, documents, information, data, drawings, benchmark tests, technical specifications and trade secrets, and other information exclusively owed by each Party, provided to the other Party and expressly marked as “confidential”, including all items specified as “confidential” in any other contract before or after the date of this Contract;

 

3. The aforesaid confidential information may be embodied in data, words, or materials, discs, software, books or any other physical media containing such information, or may be transmitted in oral or any other visual or audio form.

 

ARTICLE 2 RIGHTS AND RESPONSIBILITIES OF BOTH PARTIES

 

1. The Parties hereby warrant that the confidential information will only be used for the purpose or intention of this Contract.

 

2. The Parties hereby warrant that they will properly keep the confidential information provided by the other Party.

 

3. Each Party hereby warrants that it shall keep confidentiality of the confidential information provided by the other Party in accordance with the terms and conditions of this Agreement, and shall apply at least the same protective measures and degree of care that it applies to protect its own confidential information.

 

4. When either Party provides any confidential information, if provided in written forms, it shall mark it with “confidential”; if provided in oral or visual forms, it shall notify the receiving party of the confidential nature of the information prior to the

 

57

 

disclosure, and shall make a written confirmation within five days after the notification, including the content identifying the disclosed information as confidential information.

 

5. Each Party hereby warrants that it will only disclose the confidential information to its officers and employees engaging in the Project on a need-to-know basis. Before such person is disclosed the confidential information, each Party shall inform the persons of the confidential nature of such information and the relating obligation, procure such person to be bound by the terms and conditions of this Agreement in written forms, and ensure the obligation of confidentiality undertaken by such persons is not lower than the obligation stipulated herein.

 

6. Upon the request of disclosing party, the receiving party shall return all documents and other materials containing confidential information to the disclosing party or destroy such documents and other materials according to the instructions of the disclosing party. Upon termination of the Project, the disclosing party may give a written notice to the receiving party, demanding the receiving party to return the confidential information.

 

7. The restrictions mentioned above are not applicable to the following circumstances:

 

(1) The confidential information has been lawfully owned by the receiving party on or before the date of this Agreement;

 

(2) The confidential information has been known by the public or is in the public domain before it is provided to the receiving party;

 

(3) The confidential information is received by the receiving party from any third party not subject to the confidentiality or non-disclosure obligation;

 

(4) The confidential information has been known by the public or is in the public domain without violation of the confidentiality obligation hereunder;

 

(5) The confidential information is independently developed by the receiving party or its affiliate or association, without benefits from the information provided by the disclosing party or its affiliate or associate;

 

(6) Disclosure of confidential information is required by the court or any other judicial or administrative authority (demand of materials or documents through oral inquiry, interrogation or order, summon, civil or criminal investigation or any other procedure), provided that the receiving party shall immediately give a notice to the disclosing party and make necessary explanation.

 

8. Neither Party warrants the accuracy or reasonableness of any confidential information.

 

9. If any confidential information provided by the disclosing party infringes any intellectual property of any third party, the disclosing party shall indemnify the receiving party against and hold it harmless from all liabilities and claims resulting therefrom.

 

ARTICLE 3 LIABILITIES FOR BREACH OF CONTRACT

 

Failure of either Party in performance of its obligation hereunder shall be deemed as breach of contract. The breaching Party shall indemnify the other Party against all losses and damages resulting therefrom. If the non-breaching party considers that the damages for the breach can not provide sufficient remedy, the non-breaching party may also seek injunction, specific performance or any other reasonable remedies.

 

ARTICLE 4 EXCLUSIONS

 

If a Party or the Parties can not perform any obligations hereunder or any part thereof due to any event unforeseeable, inevitable or uncontrollable, including but not limited to earthquake, floods, fire or change of policy, the Parties are not liable to each other; provided that the Party or Parties shall continue to perform this Agreement within a reasonable period after the end of force majeure.

 

58

 

ARTICLE 5 The duration of this Agreement shall be four (4) years.

 

ARTICLE 6 SETTLEMENT OF DISPUTE

 

1. All aspects of this Agreement shall be governed by and construed according to the laws of the People’s Republic of China (“China”).

 

2. Any dispute arising from or in connection with the performance or interpretation of this Agreement, if not settled through negotiation, shall be submitted to Beijing Arbitration Commission for final arbitration in accordance with its then effective arbitration rules and arbitration procedures.

 

3. The arbitration proceedings shall be conducted in Chinese.

 

4. The arbitral award shall be final and binding upon the Parties.

 

5. Except as otherwise specified in the arbitral award, the arbitration costs shall be borne by the losing party.

 

ARTICLE 7 Neither Party may amend or modify this Agreement without the written agreement of the Parties, unless otherwise provided for in the state laws.

 

ARTICLE 8 Any issue not covered herein shall be specified in a supplementary agreement duly signed by the Parties. Such supplementary agreement is an integral part of this Agreement and shall have the same legal effect as this Agreement.

 

ARTICLE 9 This Agreement shall be made in four originals, two for each party hereto.

 

ARTICLE 10 This Agreement shall become effective as of being duly signed and sealed by the Parties hereto.

 

 

	
Party A   (Signature/Seal):
    	
 
    	
Party B   (Signature/Seal):
    
	
 
    	
 
    	
 
    
	
/s/ Xiangdong Qi
    	
 
    	
s/ Dewei Zhou
    
	
 
    	
 
    	
 
    
	
Date :
    	
 
    	
Date :
    

 

59

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