Document:

Exhibit 10.19

 

Confidential

 

 

 

EXCLUSIVE TECHNOLOGY LICENSE

AND  SERVICES AGREEMENT

 

 

By and between

 

 

BEIJING SHIJI XIQUE INFORMATION TECHNOLOGY CO., LTD.

 

 

And

 

 

BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.

 

 

February 17, 2011

 

 

EXCLUSIVE TECHNOLOGY LICENSE AND SERVICES AGREEMENT

 

This EXCLUSIVE TECHNOLOGY LICENSE AND SERVICES AGREEMENT (this “Agreement”) is made on February 17, 2011 in Beijing, the People’s Republic of China (“China” or “PRC”) by and between the following parties:

 

(A)          BEIJING SHIJI XIQUE  INFORMATION  TECHNOLOGY CO., LTD. (“Party A”)

 

Registered address: Room 6551, Building No. 3, 3 Xijing Road, High Tech Park, Shijingshan District Badachu, Beijing

 

Legal representative: Haiyan GONG

 

(B)           BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.  (“Party B”)

 

Registered address: Room 408-409, Level 4, 39 Anding Road, Chaoyang District, Beijing

 

Legal representative: Haiyan GONG

 

(For the purpose of this Agreement, Party A and Party B are hereinafter collectively referred to as the “Parties” and individually as a “Party”.)

 

RECITALS

 

WHEREAS, Party A is a limited liability company registered and established in Beijing, China and duly existing which has a core business in providing internet information  services;

 

WHEREAS, Party B is a wholly foreign-owned limited liability company registered and established in Beijing, China and duly existing which has core businesses in computer software development, design and production, internet technology development and design, and provides technical consulting and technical services; sale of self-produced products;

 

WHEREAS, Party A requires Party B to provide software licenses and related services to Party A’s Business (as defined below) and Party B agrees to provide such licenses and services.

 

Upon Friendly Negotiations, the Parties hereby agree as follows:

 

ARTICLE I. DEFINITIONS

 

1.1           Unless the terms or context hereunder otherwise requires, in this Agreement the following terms shall have the meanings given below:

 

	
“Annual Business   Plan”
    	
means Party A’s   business development plan and budget report for the next calendar year   computed before November 30 each year by Party A pursuant to the terms   hereunder with the 
    

 

 

	
 
    	
assistance of   Party B.
    
	
 
    	
 
    
	
“Business-related   Technology”
    	
means any and all   software and technology related to Party A’s Business that have been   developed by Party A based on the Services provided by Party B under the   terms hereunder.
    
	
 
    	
 
    
	
“Client   Information”
    	
has the meaning   set forth in Article 6.1 hereof. 
    
	
 
    	
 
    
	
“Confidential   Information”
    	
has the meaning   set forth in Article 6.2 hereof.
    
	
 
    	
 
    
	
“Defaulting Party”
    	
has the meaning   set forth in Article 11.1 hereof.
    
	
 
    	
 
    
	
“Default”
    	
has the meaning   set forth in Article 11.1 hereof.
    
	
 
    	
 
    
	
“Equipment”
    	
means any and all   equipment either owned or bought by Party B from time to time used for the   purpose of providing Services.
    
	
 
    	
 
    
	
“Non-defaulting   Party”
    	
has the meaning   set forth in Article 11.1 hereof.
    
	
 
    	
 
    
	
“Party A’s   Business”
    	
means all internet   information service business operated and developed by Party A during the   term of this Agreement, including e-commerce business. 
    
	
 
    	
 
    
	
“Receiving Party”
    	
has the meaning   set forth in Article 6.2 hereof.
    
	
 
    	
 
    
	
“Such Rights”
    	
has the meaning   set forth in Article 13.5 hereof.
    
	
 
    	
 
    
	
“Services”
    	
mean software licenses, technical support   and other services related to Party A’s Business exclusively provided by   Party B for Party A, including a comprehensive solution to Party A’s   information technology system, its implementation, and the operational   maintenance service of Party A’s information technology system and website,   such services include, without limitation, the following:

 

(1)           granting licenses to Party A to use the   relevant software to serve Party A’s Business needs;

 

(2)           providing Party A with the right to use   the computers and internet hardware equipments to serve Party A’s Business   needs;

 

(3)           providing Party A with a comprehensive   information-technology-related solution 
    

 

2

 

	
 
    	
to serve Party A’s Business needs;
    
	
 
    	
 
    
	
 
    	
(4)           providing daily management, maintenances   and upgrades to hardware equipments and databases;

 

(5)           developing, maintaining and upgrading   relevant application software;

 

(6)           providing trainings to Party A’s personnel   so as to turn them into technical experts;

 

(7)           assisting Party A with the collection and   research of relevant technical information;

 

(8)           providing other related technical services   and consultations as requested by Party A from time to time.
    
	
 
    	
 
    
	
“Service Fee”
    	
means all fees   payable to Party B for software licenses and other services provided by Party   B pursuant to Article 3 hereof.
    

 

1.2           References to any laws and regulations in this Agreement (the “Laws”) shall be deemed to include:

 

(1)           any amendments, changes, extensions and reenactment pertaining to such Laws, whether the effective dates of which are prior to or after the date of this Agreement; and

 

(2)           any other decisions, notices and regulations promulgated in accordance with or taking effect as a result of such Laws.

 

1.3           Unless otherwise provided in the context hereof, references to the articles, clauses, items and paragraphs in this Agreement shall mean the corresponding articles, clauses, items and paragraphs of this Agreement.

 

ARTICLE II. SERVICES

 

2.1           Party A requires Party B to provide Services in furtherance of Party A’s Business, and Party B agrees to provide Party A with such Services. For this purpose, Party A appoints Party B to be its exclusive software and technical service provider, and Party B accepts such appointment.

 

2.2           Party B shall provide Services to Party A pursuant to the terms hereunder, and Party A shall endeavor to facilitate Party B’s Services.

 

ARTICLE III. SERVICE FEES

 

3.1           Party A agrees to pay Party B Service Fees pursuant to Article 3.2 for the Services provided by Party B pursuant to Article 2, including the following components:

 

3

 

(1)           Performance service fee equivalent to a certain percentage of Party A’s total annual income. The exact percentage is to be determined and negotiated by the Parties;

 

(2)           Equipment depreciation for the equipments actually used by Party A. The amount of such depreciation shall be derived by taking the value of equipments actually used by Party A as determined by the Parties each year and divide it by the depreciable lives of those equipments.

 

3.2           The Parties agree that the Service Fees shall be paid in the following manner:

 

(1)           Party A shall pay the performance service fee and equipment depreciation to Party B on a monthly basis. Party A shall pay the performance service fee as stipulated in Article 3.1(1) and the equipment depreciation as stipulated in Article 3.1(2) of the immediately preceding month prior to the tenth (10th) business day of each month.

 

(2)           After the conclusion of each accounting year of Party A, the Parties shall conduct a comprehensive review of the actual performance service fees payable by Party A pursuant to the total business income of the immediately preceding year as determined in an audit report prepared by a PRC registered accounting firm agreed by the Parties. Corresponding adjustments (the provision of extra payment to make up any shortfalls or the return of excess paid, as the case may be) shall be made within fifteen (15) business days after the provision of the audit report. Party A warrants to Party B to provide all necessary materials and assistance to the relevant PRC registered account firm, and to procure its completion and submission of an audit report related to the immediately preceding year within thirty (30) business days after the conclusion of each year.

 

3.3           Party A shall transfer all Service Fees to a bank account designated by Party B in a timely manner. Party B shall provide Party A with a seven (7) business day written notice if Party B wishes to change such bank account.

 

3.4           The Parties shall enter into an ancillary agreement (in the form set forth in Exhibit I) each year after mutual consultation to determine the exact amount of performance service fee as stipulated in Article 3.1(1) and the exact amount of equipment depreciation as stipulated in Article 3.1(2) payable by Party A to Party B.

 

ARTICLE IV. PARTY A’S OBLIGATIONS

 

4.1           The Services provided by Party B shall be exclusive and during the term of this Agreement, Party A shall not enter into any agreement with any third party for the purpose of engaging such third party to provide Party A with the same or similar Services of Party B without the prior written consent of Party B.

 

4.2           Party A shall provide Party B with a finalized Annual Business Plan of Party A for next year prior to November 30 every year to enable Party B to make its corresponding service plan to develop and replenish the necessary software, 

 

4

 

equipments and technical service force. If Party A requires Party B to acquire new equipments not contemplated in the Annual Business Plan, Party A shall consult Party B fifteen (15) days prior to such request and reach a mutual agreement.

 

4.3           To enable Party B’s provision of the Services, Party A shall provide relevant materials requested by Party B accurately and in a timely manner.

 

4.4           Party A shall make full payment of the Service Fees to Party B pursuant to Article 3 and in a timely manner.

 

4.5           Party A shall maintain its own good standing, actively expand its business and endeavor to maximize its profit.

 

ARTICLE V. INTELLECTUAL PROPERTY RIGHTS

 

5.1           The Intellectual Property Rights in a work product created during the provision of Services by Party B shall belong to Party B.

 

5.2           Since Party A relies on the Services provided by Party B hereunder in Party A’s business operation, regarding the Business-related Technology developed by Party A based on such Services (the “Business-related Technology”), Party A agrees to the following arrangement:

 

(1)           If the Business-related Technology is further developed and created by Party A under the authorization of Party B, or by the joint effort of the Parties, the ownership and related patent application right shall both belong to Party B.

 

(2)           If the Business-related Technology is further developed and created by Party A independently, its ownership shall belong to Party A, provided that (A) Party A shall provide details of such Business-related Technology to Party B in a timely manner and provide Party B with relevant materials at the request of Party B; (B) if Party A intends to grant a license for or transfer such Business-related Technology, Party A shall grant a preferential right of transfer or an exclusive license to Party B of such Business-related Technology  with a particular scope and Party B may use such Business-related Technology within such particular scope of the transfer or license (Party B shall have the right to decide whether to accept such transfer or license) provided that such action would not result in the contravention of any mandatory PRC laws; Party A may only transfer the ownership of such Business-related Technology or grant a license to use such Business-related Technology to third parties on terms not more favorable than the terms offered to Party B (including but not limited to the transfer price or license fee) if Party B gives up its preferential right to purchase or exclusive license. Party A shall also guarantee the third party’s full compliance and performance of the duties and obligations that shall be complied with or performed by Party A hereunder; (C) apart from the situation described in (B) above, Party B shall have the right to make an offer to purchase such Business-related Technology during the time period prescribed in Article 8.1; in which case Party A shall accept such request and the 

 

5

 

purchase price shall be Renminbi one yuan (RMB1.00) or such other minimum price as permitted under the laws then in effect, provided that such action would not result in the contravention of any mandatory PRC laws.

 

5.3           If Party B is granted an exclusive license to use such Business-related Technology pursuant to Article 5.2(2), such license may be used in the following manner:

 

(1)           The period of the license shall not be less than five (5) years (computed from the effective date of the relevant license);

 

(2)           The scope of use under the license shall be the largest possible scope;

 

(3)           Any other party (including Party A) shall not use or allow others to use such Business-related Technology in any manners during the license period and within the licensed territory;

 

(4)           Upon the expiration of the license, Party B shall have the right to request to enter into a renewal of the license agreement and Party A shall agree to such request and in that case the terms of the license agreement shall remain the same except for amendments agreed to by Party B.

 

5.4           Notwithstanding the provisions in Article 5.2(2), the patent application to any Business-related Technology referred thereto shall be made in accordance with the following:

 

(1)           If Party A intends to make a patent application for any Business-related Technology, it shall obtain the prior written consent of Party B.

 

(2)           Party A may only make an independent patent application or transfer the patent application right to third parties if Party B gives up its right to purchase the patent application right pertaining to the Business-related Technology. When Party A transfers the aforesaid patent application right to a third party, Party A shall guarantee the third party’s full compliance and performance of the duties and obligations that shall be complied with or performed by Party A hereunder; further, the terms of the patent application right transfer (including but not limited to the transfer price) offered to the third party shall not be more favorable than the terms offered to Party B in accordance with Article 5.4(3) below.

 

(3)           During the term of this Agreement, Party B shall have the right to request Party A to make a patent application for such Business-related Technology at any time, and decide at its own discretion whether to purchase such application right. Upon Party B’s request, Party A shall transfer such patent application right to Party B, and the purchase price shall be Renminbi one yuan (RMB1.00) or such other minimum price as permitted under the laws then in effect, provided that such action would not result in the contravention of any mandatory PRC laws; after Party B acquires the patent application right pertaining to such Business-related Technology, it shall become the legal owner of such patent once a patent application is made and a patent is granted.

 

6

 

5.5           Each Party warrants to the other Party that it shall compensate the other Party for any and all economic losses caused to the other Party as a result of its infringement of intellectual property rights (including copyrights, trademarks, patents, know-how) of others.

 

ARTICLE VI. CONFIDENTIALITY

 

6.1           During the term of this Agreement, all client information and other related materials (the “Client Information”) related to Party A’s Business or the Services provided by Party B shall be jointly owned by the Parties.

 

6.2           Whether this Agreement is terminated or not, any Party shall keep the other Party’s trade secrets, proprietary information, jointly-owned Client Information and other related materials known to the Party as a result of performance of this Agreement, and any non-public information of the other Party (collectively the “Confidential Information”) strictly confidential. The Party receiving any Confidential Information (the “Receiving Party”) shall not disclose such Confidential Information or any part thereof to any third party except with the prior written consent of the other Party or the disclosure to third parties are required by applicable laws, regulations or listing rules.  Except for purpose of performing this Agreement, the Receiving Party shall not use or indirectly use the Confidential Information or any part thereof.

 

6.3           The following information do not form part of the Confidential Information:

 

(a)           Any information previously known to the Receiving Party, as shown by written evidence;

 

(b)           Information that has entered into public domain through no wrongful act of the Receiving Party or information that has otherwise become publicly known; or

 

(c)           Information that has been acquired by the Receiving Party via other lawful means.

 

6.4           The Receiving Party may disclose such Confidential Information to its employees, agents or experts appointed, provided that the Receiving Party shall guarantee the above persons are also subject to the obligations of this Agreement and keep confidential the Confidential Information, and only use such Confidential Information for the purpose of performing this Agreement.

 

ARTICLE VII. UNDERTAKINGS AND WARRANTIES

 

7.1       Party A hereby represents, warrants and undertakes as follows:

 

7.1.1        It is a limited liability company duly registered and existing under the laws applicable at the place of registration with independent legal person status; it has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may act as a party to litigation independently.

 

7

 

7.1.2        It has the full power and authorization to execute and deliver this Agreement and all other documents relevant to the contemplated transaction hereunder to be executed by it, and to consummate the contemplated transaction hereunder. This Agreement shall be legally and duly executed and delivered by it.  This Agreement shall constitute  its legal and binding obligations enforceable  against it  pursuant  to this Agreement.

 

7.1.3        It shall promptly apply for the complete business licenses required for its businesses to ensure the full right and qualification to operate in the business of internet information service and e-commerce in China, and in Party A’s other businesses currently in operation.

 

7.1.4        Within fifteen (10) business days after the conclusion of each quarter, it shall provide Party B with a quarterly financial statement of that quarter and a budget for the next quarter. Within thirty (30) business days after the conclusion of each year, it shall also provide Party B with a financial statement of that year and a budget for next year.

 

7.1.5        It shall inform Party B of any legal proceedings to which it is a party or the occurrence of other adverse events and use its best endeavor to prevent the spread of losses.

 

7.1.6        Party A shall not dispose of Party A’s material assets nor alter Party A’s current shareholding structure in any manners without the written consent of Party B.

 

7.2       Party B hereby represents and warrants as follows:

 

7.2.1        It is a limited liability company duly registered and existing under the laws applicable at the place of registration with independent legal person status; it has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may act as a party to litigation independently.

 

7.2.2        It has the full power and authorization to execute and deliver this Agreement and all other documents relevant to the contemplated transaction hereunder to be executed by it, and to consummate the contemplated transaction hereunder.. This Agreement shall be legally and duly executed and delivered by it.  This Agreement shall constitute  its legal and binding obligations enforceable  against it  pursuant  to this Agreement.

 

ARTICLE VIII. TERM OF THE AGREEMENT

 

8.1       The Parties hereby acknowledge that this Agreement shall become effective upon the execution by the Parties and shall be valid until February 16, 2021, unless terminated earlier pursuant to the Parties’ written agreement. Prior to the expiry of this Agreement, if any Party requests for an extension of this Agreement, the Parties shall conduct negotiation in good faith. If a mutual agreement is reached, the Parties shall enter into a separate Exclusive Technology License and Services Agreement in accordance with the agreed

 

8

 

terms, otherwise the term of this Agreement shall be automatically extended for ten years and the Parties shall continue with the performance of this Agreement.

 

8.2       After the termination of this Agreement, each Party shall continue to comply with its obligations under Article III and Article VI.

 

ARTICLE IX. INDEMNITY

 

Party A shall indemnify and hold harmless Party B all losses incurred or may be incurred as a result of the Services provided by Party B, including without limitation, any losses caused by lawsuits, demands, arbitrations, claims initiated by any third parties or administrative investigations initiated and penalties imposed by government agencies. If such losses are due to Party B’s deliberate action or gross negligence, such losses shall be excluded from such indemnity.

 

ARTICLE X. NOTICES

 

10.1     All notices, requests, demands and other correspondences required by or in accordance with this Agreement shall be delivered to the relevant Party in writing.

 

10.2     The above notices or other correspondences shall be deemed to be properly delivered upon sending when delivered through fax or telegraph, upon delivered in person when personally delivered, or at the fifth (5th) day of mailing if sent by mail.

 

ARTICLE XI. DEFAULT LIABILITIES

 

11.1     The Parties agree and acknowledge that, in the event that a Party (the “Defaulting Party”) substantially violates any of the agreements hereunder or fails to perform any of its obligations hereunder substantially, it shall constitute a default under this Agreement (the “Default”).  The non-defaulting party (the “Non-defaulting Party”) shall be entitled to request the Defaulting Party to rectify the Default or take remedial measures within a reasonable period.  In the event that the Defaulting Party fails to rectify the Default or take remedial measures within a reasonable period or within ten (10) days after a written notice sent by the Non-defaulting Party to the Defaulting Party requesting for the rectification, and if the Defaulting Party is Party A, the Non-defaulting Party shall be entitled to determine, at its sole discretion, to: (1) terminate this Agreement and request the Defaulting Party to indemnify all losses incurred by the Non-defaulting Party, or (2) request the Defaulting Party to continue to perform its obligations hereunder and indemnify all losses incurred by the Non-defaulting Party; if the Defaulting Party is Party B, the Non-defaulting Party shall be entitled to request the Defaulting Party to continue to perform its obligations hereunder and to indemnify all losses incurred by the Non-defaulting Party.

 

11.2     The Parties agree and acknowledge that Party A shall not request to terminate this Agreement for any reasons under any circumstances, except otherwise required under the law or under this Agreement.

 

9

 

11.3     Notwithstanding any other provisions hereunder, this Article XI shall survive the suspension or termination of this Agreement.

 

ARTICLE XII. FORCE MAJEURE

 

If any Party fails to or delays in the performance of its obligations hereunder due to an earthquake, typhoon, flood, fire, war, computer viruses, design loopholes in instrumental software, internet hacking, a change in policy or law, or other events of force majeure that are unpredictable and unavoidable, the Party claiming the force majeure event shall immediate send notification of the event to the other Party within thirty (30) days by facsimile, and provide detailed information of the force majeure event, and the reasons and evidencing documents for the failure or delay in the performance of its obligations hereunder to the other Party within thirty (30) days by facsimile. The evidencing documents shall be issued by the notarial organ of the place where the force majeure event occurs.  The Parties shall negotiate as to whether the performances hereunder shall be exempted in part or postponed based on the implications of such event of force majeure. No Party shall be liable for the economic losses caused to the other Party due to events of force majeure.

 

ARTICLE XIII. MISCELLANEOUS

 

13.1         This Agreement shall be signed in two (2) originals in Chinese,  Each original shall have equal legal force, and each Party shall retain one (1) original of this Agreement

 

13.2         The conclusion, validity, performance, amendment, interpretation and termination of this Agreement shall be governed by the laws of the People’s Republic of China.

 

13.3         Any dispute arising out of or relating to this Agreement  shall be settled by the disputing Parties through consultation. In case the disputing Parties fail to reach an agreement within thirty (30) days of the dispute, such dispute shall be submitted to China International Economic and Trade Arbitration Commission (“CIETAC”)  for arbitration in Beijing in accordance with the arbitration rules of CIETAC then in effect.  The arbitration award shall be final and binding upon the disputing Parties.

 

13.4         Any right, power and remedy granted to a Party under any provision of this Agreement shall not preclude any other right, power or remedy such Party is entitled to under any laws or regulations or any other provision of this Agreement.  The exercise of its right, power and remedy by a Party shall not preclude the exercise of any other right, power and remedy that such Party is entitled to.

 

13.5         Any Party’s failure or delay in exercising any of its right, power and remedy (“Such Rights”) under this Agreement or laws shall not result in a waiver of Such Rights, nor shall any single or partial waiver of any Such Right preclude any exercise of Such Right in other manner or the exercise of any other Such Rights by such Party.

 

13.6         The headings in this Agreement shall be for reference purpose only and shall not be used for or affect the construction of the Agreement in any event.

 

10

 

13.7         This Agreement shall constitute the entire agreement between the Parties hereto and shall supersede any previous written or oral agreements between the Parties related to the matters governed in this Agreement.

 

13.8         Each provision of this Agreement shall be severable and independent of each of the other provision.  In the event that one or several provisions of this Agreement become invalid, illegal or unenforceable at any time, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected.

 

13.9         Any amendment or supplement to this Agreement shall be made in writing, and shall take effect after duly executed by the Parties.

 

13.10       No Party shall transfer any of its rights and/or obligations hereunder to any third party without the prior written consent of the other Party.

 

13.11       T This Agreement shall be binding upon the legal successor of each Party.

 

13.12       Each Party undertakes to report and make its tax payment associated with the related transactions contemplated in this Agreement in accordance with the laws.

 

[Remainder of this page is intentionally left blank]

 

11

 

[Signature Page]

 

 

IN WITNESS WHEREOF,  this Exclusive Technology License and Services  Agreement has been duly executed by the Parties  as of the date and at the place first above written.

 

 

PARTY A:

 

 

BEIJING SHIJI XIQUE INFORMATION TECHNOLOGY CO., LTD.

 

 

(Company Seal) [seal: Beijing Shiji Xique Information Technology Co., Ltd.]

 

	
Signature: 
    	
/s/ Haiyan Gong
    	
 
    

 

Name:

 

Title: Authorized Representative

 

 

PARTY B:

 

BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.

 

 

(Company Seal) [seal: Beijing Miyuan Information Technology Co., Ltd.]

 

	
Signature: 
    	
/s/ Haiyan Gong
    	
 
    

 

Name:

 

Title: Authorized Representative

 

12

 

Exhibit I:

 

Form of Supplementary Agreement

 

THIS SUPPLEMENTARY AGREEMENT TO EXCLUSIVE TECHNOLOGY LICENSES AND SERVICE AGREEMENT (this “Supplementary  Agreement”) is made on                in               , the People’s Republic of China (“China” or “PRC”) by and between the following Parties:

 

(A)          BEIJING SHIJI XIQUE INFORMATION  TECHNOLOGY CO., LTD. (“Party A”)

 

Registered address: Room 6551, Building No. 3, 3 Xijing Road, High Tech Park, Shijingshan District Badachu, Beijing

 

Legal representative: Haiyan GONG

 

(B)           BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD. (“Party B”)

 

Registered address: Room 408-409, Floor 4, 39 Anding Road, Chaoyang District, Beijing

 

Legal representative: Haiyan GONG

 

(For the purpose of this Supplementary Agreement, Party A and Party B are hereinafter collectively referred to as the “Parties” and individually as a “Party”.)

 

Pursuant to the Exclusive Technology License and Services Agreement entered into by the Parties on February 17, 2011, the Parties hereby agree to execute a supplementary agreement as follows:

 

For the year of               , Party A shall make monthly payment of the following Service Fees to Party B pursuant to Article 3.2(1) of the Exclusive Technology License and Services Agreement:

 

(1)           Performance service fee equivalent to             % of Party A’s total income of the current month;

 

(2)           Equipment depreciation in the amount of RMB            .

 

13

 

After the conclusion of the year of                and pursuant to the adjustment made in accordance with Article 3.2(2) of the Exclusive Technology License and Services Agreement, for the year of               , the total amount of Service Fees payable by Party A to Party B shall not be less than               % of the total income of that year.

 

 

	
Party A:
    	
 
    	
Party B:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
BEIJING SHIJI XIQUE INFORMATION TECHNOLOGY   CO., LTD.
    	
 
    	
BEIJING MIYUAN INFORMATION TECHNOLOGY CO.,   LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Company Seal)
    	
 
    	
(Company Seal)
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    
	
Title: Authorized Representative
    	
 
    	
Title: Authorized Representative
    
					

 

14exhibit101.htm

Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into as of ____________________, by and between PDI, Inc., a Delaware corporation (the “Company”), and ___________________________ (“Indemnitee”).

 

RECITALS

 

WHEREAS, Indemnitee performs a valuable service to the Company in [his] [her] capacity as [a director and/or an officer] of the Company;

 

WHEREAS, the Company’s Certificate of Incorporation, as amended (the “Charter”) includes provisions for the indemnification of the directors, officers, employees and other agents of the Company, as authorized by the Delaware General Company Law, as amended (the “DGCL”);

 

WHEREAS, the Charter and the DGCL, by their non-exclusive nature, permit contracts between the Company and its directors, officers, employees and other agents with respect to indemnification of such persons;

 

WHEREAS, in recognition of Indemnitee’s need for (a) substantial protection against personal liability based on Indemnitee’s reliance on the Charter, and (b) specific contractual assurance that the protection provided in the Charter will be available to Indemnitee (regardless of, among other things, any amendment to or revocation of the Charter, any change in the composition of the Company’s board of directors or a change in control of the Company); and

 

WHEREAS, in order to induce Indemnitee to [continue to] serve as [a director/an officer] of the Company, the Company has determined and agreed to enter into this Agreement with Indemnitee.

 

NOW, THEREFORE, in consideration of Indemnitee’s service as [a director and/or an officer] of the Company following the date hereof, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Indemnitee hereby agree as follows:

 

1. Services to the Company.  Indemnitee will serve, at the will of the Company or under separate contract, if any such contract exists, as [a director/an officer] of the Company or as a director, officer or other fiduciary of an affiliate of the Company faithfully and to the best of [his] [her] ability so long as [he] [she] [is duly elected or appointed] by the Company or such affiliate; provided, however, that Indemnitee may at any time and for any reason resign from such position (subject to any contractual obligation that Indemnitee may have assumed apart from this Agreement) and that the Company or any affiliate shall have no obligation under this Agreement to continue Indemnitee in any such position.

 

2. Indemnification of Indemnitee.  The Company agrees to hold harmless and indemnify Indemnitee to the fullest extent authorized or permitted by the provisions of the Charter and the DGCL, as the same may be amended 

 

 

  

  

  

from time to time (but, only to the extent that such amendment permits the Company to provide broader indemnification rights than the Charter or the DGCL permitted prior to adoption of such amendment).

 

3. Additional Indemnity.  In addition to and not in limitation of the indemnification otherwise provided for herein, and subject only to the exclusions set forth in Section 4 hereof, the Company further agrees to hold harmless and indemnify Indemnitee:

 

(a) against any and all expenses (including attorneys’ fees), witness fees, damages, judgments, fines and amounts paid in settlement and any other amounts that Indemnitee becomes legally obligated to pay (including any federal, state or local taxes imposed on Indemnitee as a result of receipt of reimbursements or advances of expenses under this Agreement) because of any claim or claims made against or by [him] [her]in connection with any threatened, pending or completed action, suit or proceeding, including any appeal and the premium, security for, and other costs relating to any costs bond, supersedes bond, or other appeal bond or its equivalent, whether civil, criminal, arbitrational, administrative or investigative, whether formal or informal (including an action by or in the right of the Company), to which Indemnitee is, was or at any time becomes a party or a witness, or is threatened to be made a party or a witness, by reason of the fact that Indemnitee is, was or at any time becomes a director, officer, employee or other agent of the Company, or is or was serving or at any time serves at the request of the Company as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise; and

 

(b) otherwise to the fullest extent as may be provided to Indemnitee by the Company under the non-exclusivity provisions of the DGCL and the Charter.

 

4. Limitations on Additional Indemnity.  No indemnity pursuant to Section 3 hereof shall be paid by the Company:

 

(a) on account of any claim or  proceeding against Indemnitee for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as heretofore or hereafter amended (the “Exchange Act”), or similar provisions of any federal, state or local law, provided, however, if and when Indemnitee ultimately establishes in any such proceeding that no recovery of profits from Indemnitee is permitted under Section 16(b) of the Exchange Act or such similar provision of any similar federal, state or local law, then, notwithstanding anything to the contrary provided in this Section 4(a), indemnification pursuant to this Agreement shall then be permitted;

 

(b) on account of Indemnitee’s conduct that is established by a final judgment as knowingly fraudulent or deliberately dishonest or that constituted willful misconduct;

 

(c) on account of Indemnitee’s conduct that is established by a final judgment as constituting a breach of Indemnitee’s duty of loyalty to the Company or resulting in any personal profit or advantage to which Indemnitee was not legally entitled;

 

  

  

  

 

(d) for which payment is actually made to Indemnitee under a valid and collectible insurance policy or under a valid and enforceable indemnity clause, bylaw or agreement, except in respect of any excess beyond payment under such insurance, clause, bylaw or agreement;

 

(e) if indemnification is not lawful (and, in this respect, both the Company and Indemnitee have been advised that the Securities and Exchange Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication); or

 

(f) in connection with any proceeding (or part thereof) initiated by Indemnitee, or any proceeding by Indemnitee against the Company or its directors, officers, employees or other agents, unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by the board of directors of the Company, (iii) such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under the DGCL, or (iv) the proceeding is initiated pursuant to Section 11 hereof.

 

5. Continuation of Indemnity.  All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is a director, officer, employee or other agent of the Company (or is or was serving at the request of the Company as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal, arbitrational, administrative or investigative, by reason of the fact that Indemnitee was serving in the capacity referred to herein.

 

6. Partial Indemnification.  Indemnitee shall be entitled under this Agreement to indemnification by the Company for a portion of the expenses (including attorneys’ fees), witness fees, damages, judgments, fines and amounts paid in settlement and any other amounts that Indemnitee becomes legally obligated to pay in connection with any action, suit or proceeding referred to in Section 3 hereof even if not entitled hereunder to indemnification for the total amount thereof, and the Company shall indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

7. Notification and Defense of Claim.  As soon as practicable, and in any event, not later than thirty (30) days after Indemnitee becomes aware, by written or other overt communication, of any pending or threatened litigation, claim or assessment, Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of such pending or threatened litigation, claim or assessment; but the omission so to notify the Company will not relieve it from any liability which it may have to Indemnitee otherwise than under this Agreement.  With respect to any such pending or threatened litigation, claim or assessment as to which Indemnitee notifies the Company of the commencement thereof:

 

(a) the Company will be entitled to participate therein at its own expense;

 

 

  

  

  

 

(b) except as otherwise provided below, the Company may, at its option and jointly with any other indemnifying party similarly notified and electing to assume such defense, assume the defense thereof, with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense thereof, the Company will not be liable to Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection with the defense thereof except for reasonable costs of investigation or otherwise as provided below. Indemnitee shall have the right to employ separate counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee shall have reasonably concluded, and so notified the Company, that there is an actual conflict of interest between the Company and Indemnitee in the conduct of the defense of such action, or (iii) the Company shall not in fact have employed counsel to assume the defense of Indemnitee in connection with such action, in any of such cases the fees and expenses of Indemnitee’s separate counsel shall be at the expense of the Company.  The Company shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Company or as to which Indemnitee shall have made the conclusion provided for in clause (ii) above; and

 

(c) the Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent, which consent shall not be unreasonably withheld or delayed.  The Company shall be permitted to settle any action or claim except that it shall not settle any action or claim in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent, which consent may be given or withheld in Indemnitee’s sole discretion.

 

8. Expenses. The Company shall advance, prior to the final disposition of any proceeding, promptly following request therefore, all expenses incurred by Indemnitee in connection with such proceeding upon the Company’s receipt of an undertaking by or on behalf of Indemnitee to repay said amounts if it shall be determined ultimately that Indemnitee is not entitled to be indemnified under the provisions of this Agreement, the Charter, the DGCL or otherwise.  Such undertaking shall be accepted by the Company without regard to the financial ability of Indemnitee to make such repayment.  Without limiting the foregoing, if any action, suit or proceeding is disposed of on the merits or otherwise (including a disposition without prejudice), without (i) the final disposition being adverse to Indemnitee, (ii) a final adjudication that Indemnitee was liable to the Company, (iii) a plea of guilty (iv) a final adjudication that Indemnitee did not act in good faith, and in a manner [he] [she] reasonably believed to be in or not opposed to the best interests of the Company, or (v) with respect to any criminal proceeding, a final adjudication that Indemnitee had reasonable cause to believe his conduct was unlawful, Indemnitee shall be considered for the purposes hereof to have been wholly successful with respect thereto.

 

9. Information Sharing.  To the extent that the Company receives a request or requests from a governmental third party or other licensing or regulating organization (the “Requesting Agency”), whether formal or informal, to produce documentation or other information concerning an investigation, whether formal or informal, being conducted by the Requesting Agency, and such investigation is reasonably likely to include review of any 

 

 

  

  

  

actions or failures to act by Indemnitee, the Company shall promptly give notice to Indemnitee of said request or requests and any subsequent request. In addition, the Company shall provide Indemnitee with a copy of any and all information or documentation that the Company shall provide to the Requesting Agency.

 

10. No Imputation.  The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company or the Company itself shall not be imputed to Indemnitee for purposes of determining any rights under this Agreement.

 

11. Enforcement of Indemnity.  Any right to indemnification or advances granted by this Agreement to Indemnitee shall be enforceable by or on behalf of Indemnitee in any court of competent jurisdiction if (i) the claim for indemnification or advances is denied, in whole or in part, or (ii) no disposition of such claim is made within ninety (90) days after a request therefore.  Indemnitee, in such enforcement action, if successful in whole or in part, shall be entitled to be paid also the expense of prosecuting his claim.  It shall be a defense to any action for which a claim for indemnification is made under Section 3 hereof (other than an action brought to enforce a claim for an advance or reimbursement of expenses under this Agreement, provided that the required undertaking has been tendered to the Company) that Indemnitee is not entitled to indemnification because of the limitations set forth in Section 4 hereof.  Neither the failure of the Company (including its board of directors or its stockholders) to have made a determination prior to the commencement of such enforcement action that indemnification of Indemnitee is proper in the circumstances, nor an actual determination by the Company (including its board of directors or its stockholders) that such indemnification is improper shall be a defense to the action or create a presumption that Indemnitee is not entitled to indemnification under this Agreement or otherwise.

 

12. Subrogation.  In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

13. Non-Exclusivity of Rights.  The rights conferred on Indemnitee by this Agreement shall not be exclusive of any other right which Indemnitee may have or hereafter acquire under any statute, provision of the Charter, agreement, vote of stockholders or directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding office.

 

14. Survival of Rights.

 

(a) The rights conferred on Indemnitee by this Agreement shall continue after Indemnitee has ceased to be a director, officer, employee or other agent of the Company or to serve at the request of the Company as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, and shall inure to the benefit of Indemnitee’s heirs, executors and administrators.

 

 

  

  

  

 

(b) The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

15. Separability.  Each of the provisions of this Agreement is a separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the other provisions hereof.  Furthermore, if this Agreement shall be invalidated in its entirety on any ground, then the Company shall nevertheless indemnify Indemnitee to the fullest extent provided by the Charter, the DGCL or any other applicable law.

 

16. Governing Law; Choice of Forum.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its principles of conflicts of laws.  The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement may be brought in the Delaware Court of Chancery, (ii) consent to submit to the jurisdiction of the Delaware Court of Chancery for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court of Chancery, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court of Chancery has been brought in an improper or inconvenient forum.

 

17. Amendment and Termination.  No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both parties hereto.

 

18. Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute but one and the same Agreement.  Only one such counterpart need be produced to evidence the existence of this Agreement.

 

19. Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) upon delivery, if delivered by hand to the party to whom such communication was directed or (ii) upon the next business day after the date on which such communication was delivered to a nationally recognized overnight courier service:

 

If to Indemnitee, at the address indicated below.

 

If to the Company, to:

PDI, Inc.

Morris Corporate Center 1, Building A

300 Interpace Parkway

Parsippany, NJ 07054

Attention:                                [Chief Executive Officer]

 

 

  

  

  

or to such other address as may have been furnished to Indemnitee by the Company.

 

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

 

 

	
PDI, Inc.

	
[INDEMNITEE]

 

 

	
____________________________

	
____________________________________

 

 

	
By:

	
Name:

 

	
Name:

	
 

 

	
Title:

	 

 

	
  

	
Address:

 

	
  

	 

____________________________________

 

	
  

	 

____________________________________

 

	
  

	 

____________________________________

 

	
  

	 

____________________________________

 

 

  

  

  

Schedule of Differences

 

Other than the identification of the Indemnitee, each Indemnification Agreement executed with the executive officers listed below is substantially the same as this form and as each other.

                                    

                                                   

 

	Officer       	Title
	 	 
	Nancy Sue Lurker   	Chief Executive Officer
	Jeffrey E. Smith         	Chief Financial Officer
	David Kerr 	Senior Vice President, Business Development
	Kathy Marsico        	Senior Vice President, Human Resources
	Richard P. Micali   	Senior Vice President, New Markets and Services Strategy
	Frank Arena 	Senior Vice President, Shared Sales and Commercial Operations
	Jo Ann Saitta 	Senior Vice President, Information Technology
	Jack Davis                                                      	CEO, Group DCA
	Rob Likoff    	CEO, Group DCA
	Rhonda De Stefano	Vice President and Associate General Counsel
	Patrick Kane    	Vice President, Corporate Controller
	Jade Shields                                           	Vice President, Corporate Compliance and Ethics
	 	 
	 Director	 
	Gerald Belle                                           	Chairman of the Board
	John Federspiel	 
	Veronica A. Lubatkin	 
	Frank Ryan	 
	Jack Stover	 
	  

Stephen J. Sullivan

	 
	Jan Martens Vecsi

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]