Document:

Exhibit 10.12

 Exhibit 10.12 
  
 MEMORANDUM OF UNDERSTANDING 
  
 Between IBM China Company Limited and efuture Information Tech Inc. 
  
 CHAPTER 1: Preamble 
  
 This Memorandum of Understanding (hereafter referred to as “MOU”) dated Oct, 21, 2004 summarizes the discussion and agreements between IBM China Company Limited and efuture Information Tech Inc. regarding
the collaboration on business process driven retail solution POC(proof of concept) between the parties set forth in Chapter 2. This will be the basis for the preparation of definitive and final agreement. The provisions in this MOU are subject to
the negotiation and are not binding on the parties in anyway. Nothing herein shall oblige any party to proceed with the future negotiation, nor shall any such contract and negotiation be limited by the contents of this MOU. 
  
 CHAPTER 2: Parties 
  
 IBM China Company Limited (hereafter referred to as “IBM”), a limited liability company incorporated under the laws of the
People’s Republic of China. 
  
 The registration and mailing address is 25
Floor, IBM Tower, Pacific Century Place, 2A 
  
 Gong Ti Bei Road, Chaoyang
District, Beijing, P.R.C. 100027, 
  
 And the primary contact information is as
follows: 
  
 Telephone: (86-10) 6539-1188 
  
 Fax: (86-10) 6538-1688 
  
 efuture Information Tech Inc. (hereafter referred to as “efuture”) 
  
 312, Tower B2, Orient Plaza, No.1 East Chang An Avenue, Dong Cheng District, Beijing,

  
 P.R.C. 100738 
  
 Telephone: (86-10) 85188680-8688         (86-10) 85188693 
  
 Fax: (86-10) 85188679 

 CHAPTER 3: Purpose and Objectives 
  
 The purpose of this MOU is to document the discussions between efuture and IBM with respect to the intention to collaborate on business
process driven retail solution POC(proof of concept), subject to negotiation of a mutually acceptable definitive written agreement(s). Future discussions between the parties could include a view of business, technical, marketing, sales, financial
plans and capabilities, among other things. 
  
 efuture’s business interests
in connection with this potential relationship will focus on the following areas initially: 
  

	 	•	 	Experiment on the effectiveness of business process driven retail solution architecture through a POC study with the support of IBM platform, tools and related experts.

  

	 	•	 	Explore & accumulate the experience & know-how to support efuture next generation retail solution architecture (business process driven) design & application
development, so as to differentiate with other ISV competitors and increase efuture application’s market share and sales revenue. 

  
 IBM’s business interests in connection with this potential relationship will focus on the following areas initially: 
  

	 	•	 	Verify the effectiveness of IBM platform & tools to support ISV applications’ transformation to business process driven architecture through a POC based on efuture
application. 

  

	 	•	 	Support efuture to design & build next generation retail solution embedded with IBM platform & tools, so as to increase IBM software sales and services revenue by enabling
and marketing in the retail & distribution industry solution marketplace. 

  
 By engaging in this relationship, efuture and IBM believe that they will expand both companies’ opportunities in next generation (business process driven architecture) retail & distribution industry solution
marketplace. efuture and IBM intend to hold regular marketing and sales, and technical meetings for strategy discussions and to review the 

 
status and progress of this potential relationship. The specific agreement for each of these areas will be covered in individual appendices or statements of
work under the overall definitive agreement. 
  
 CHAPTER 4: Confidentiality

  
 Each party agrees not to disclose any information to the other party
which is considered to be confidential. Each party shall be free to use and disclose any information provided by the other party for any purpose, subject to valid patent rights and copyrights. 
  
 If the projects require the exchange of confidential information, such exchange will be made
under separate confidentiality agreement. 
  
 CHAPTER 5: Term and Termination

  
 5.1 This Agreement shall be signed by duly authorized representatives of
both parties and the term of the MOU shall be two years until terminated pursuant to Article 8.3. 
  
 5.2 Either party may terminate this MOU for convenience with two (2) months’ prior written notice. 
  
 5.3 In the event of expiration or termination of this MOU, those Sections which by their nature are intended by the parties to survive shall survive and continue in
effect to the extent necessary to protect the rights of the parties. 
  
 CHAPTER 6: Nonexclusive Relationship 
  
 This MOU outlines a
non-exclusive commercial relationship between IBM and efuture. Nothing contained in this MOU shall be deemed to be a restriction of any type on either 

 
party’s ability to freely compete or to enter into “partnering” relationships with other entities. Any decision by either party to forego, or
engage in any other business opportunity to any other activity, to alter any business plan or direction, or to make any investment in anticipation of the consummation of any transaction contemplated by the parties, is at the sole discretion of the
party electing to do so, and will not create any actual or potential liability or obligation for the other party, even if that party is aware of, or has been informed of or has indicated approval of any such action, decision or election unless
agreed to otherwise in an agreement signed by both parties. Neither party will be restricted as a result of these discussions in any event, each party is free to pursue a similar business relationship with others at any time. 
  
 CHAPTER 7: Costs and Expenses 
  
 Except as otherwise specified in this Agreement, all costs and expenses incurred in
connection with performing this MOU shall be borne by the party that incurred them. 
  
 This MOU shall be governed by the laws of the People’s Republic of China. Any dispute arising out of or in connection with this MOU shall be submitted to China International Economic and Trade Arbitration Commission for arbitration.

  
 This MOU is made in duplicate, each party holds one original. 
  
 Acknowledged for: 
  

									
	IBM China Company Limited	 	 	 	efuture Information Tech Inc.
					
	By:	 	

	 	 	 	By:	 	

	Title:	 	Director, IBM China Research Lab	 	 	 	Title:	 	CEO, efuture
					
	Date:	 	Oct. 21, 2004	 	 	 	Date:	 	Oct. 21, 2004Exhibit 10.13

 Exhibit 10.13 
  
 

 Developer Relations 
  
 ISV
Advantage Agreement for SMB 
 Agreement Number: 2005–AP–BS312, May 7, 2005 
  
 This is the ISV Advantage Agreement between eFuture Information Tech. Inc. (“you”)
and IBM Engineering Technology (Shanghai) Co., Ltd. (“IBM”). Our complete agreement consists of this base agreement and Your Profile Attachment attached hereto (collectively “Agreement”). If there is a conflict among the terms of
the base agreement and Your Profile Attachment, the terms of Your Profile Attachment prevail. 
  
 This Agreement is intended to build upon your existing PartnerWorld relationship. It complements the IBM PartnerWorld Agreement - International Basic General Terms already in place between us. 
  
 This Agreement replaces all prior oral or written communications between us relating to the
subject matter hereof. We both accept the terms of this Agreement and Your Profile Attachment by signing below. Once signed, any reproduction of this Agreement made by reliable means (e.g., photocopy or facsimile) is considered an original, unless
prohibited by local law. This Agreement may only be modified by a writing signed by each of our authorized representatives except that IBM may amend any Exhibit(s) (but not Your Profile Attachment or the base agreement) from time to time upon
written notice to you. 
  

											
	 AGREED TO:
	 	 	 	 AGREED TO:
	 	 
	 Engineering Technology (Shanghai) Co., Ltd.
	 	 	 	 eFuture Information Tech. Inc.
	 	 [SEAL]

						
	 By:
	 	 

	 	 	 	 By:
	 	 

	 	 
						
	 	 	 	 	 	 	 	 	 Adam Yan
	 	 
	 	 	 Print Name
	 	 	 	 	 	 Print Name
	 	 
						
	 	 	 	 	 	 	 	 	 CEO
	 	 
	 	 	 Print Title
	 	 	 	 	 	 Print Title
	 	 
						
	 	 	 May 27, 2005
	 	 	 	 	 	 May 9, 2005
	 	 
	 	 	 Date
	 	 	 	 	 	 Date
	 	 

  
 Each of us agree to send any notice
required or permitted under this Agreement to the location noted below. Notice will be effective upon receipt as demonstrated by reliable written confirmation (for example certified mail receipt, courier receipt or facsimile receipt confirmation
sheet). Each party will notify the other if their notification location changes. 
  

			
	 IBM:
 IBM Engineering Technology (Shanghai) Co., Ltd.
 No. 389, Gang Ao Road
 Wai Gao Qiao Free Trade Zone
 Shanghai, PRC
 Attention: Grace Huang
 Tel: +86-21-2899-7002
	  	 eFuture Information Tech. Inc.:
 eFuture Information Tech. Inc.
 312, Tower E2, Orient Plaza,
 No. 1 East Chang An Avenue, Dong Cheng District
 Beijing, 100738, P.R.C.
 Attention: Li Junfeng
 Tel: + 010-51650988/51650998

  

 1 

 1.0 General Terms 
  

1.1 Definitions: 
  
 1.1.1 Product(s) is the version(s) of your software application(s) which will be specified in Your Profile Attachment. This includes enhancements,
updates, fixes, and new versions of your Product or any other of your software applications that replace your existing Products. 
  
 1.1.2 When we use the term DB2 in this Agreement, it means either DB2 UDB or DB2 UDB Express Edition as specified in your Profile Attachment. 

 
 1.1.3 When we use the term Informix in this Agreement, it means any
Informix database server (IDS), u2 database server or Cloudscape database server specified in your Profile Attachment. 
  
 1.1.4 When we use the term Primary IBM Middleware, it means the IBM Middleware technology specified in Your Profile Attachment and further described in
your ‘lead with’ responsibilities (Section 4.2 below). Each of the following IBM Middleware products is eligible as Primary IBM Middleware: WebSphere, DB2 UDB on Linux and Informix on Linux. 
  
 1.1.5 When we use the term Secondary IBM Middleware, it means the IBM
Middleware technology specified in Your Profile Attachment and further described in your ‘lead with’ responsibilities (Section 4.2 below). Each of the following IBM Middleware products is eligible as Secondary IBM Middleware: WebSphere,
DB2 UDB, or Informix. 
  
 1.1.6 When we use the term IBM
Middleware in this Agreement, it means either Primary IBM Middleware or Secondary IBM Middleware. 
  
 1.1.7 When we use the term WebSphere in this Agreement, it means WebSphere Application Server, WebSphere Application Server Express, WebSphere Portal or
WebSphere Portal Express as specified in Your Profile Attachment. 
  
 1.1.8 Enable means that your Product takes sufficient advantage of the IBM Middleware and IBM eServer hardware and related operating systems (including Linux technologies) specifically identified in Your Profile Attachment so as to provide
at least equivalent performance and functionality to your Product when used with non-IBM hardware and/or software, subject to the inherent performance and functionality of underlying IBM technologies. 
  
 1.1.9 General Availability or Generally Available (“GA”)
means the date on which the Enabled version of your Product and its related end-user documentation are first made commercially available through direct end-user marketing channels. 
  
 1.1.10 Enabled Product is the Enabled and GA version of your Product. 
  
 1.1.11 Combined Offering is your Product Enabled on IBM Middleware with an
IBM eServer. In addition to including the specifics on your Product (name, version). Your Profile Attachment will identify the IBM eServer platform on which it currently runs (or in some cases, to which you will Enable) and the IBM Middleware to
which you will Enable or are already Enabled. 
  
 1.1.12
Influenced IBM Revenue means the amount of revenue IBM receives during the term of this Agreement as a result of a customer acquiring (directly or indirectly) an IBM component (IBM 

  

 2 

 
hardware, software and/or services) in conjunction with that customer’s acquisition of your Enabled Product as reported by you in your quarterly report
to IBM under this Agreement. 
  
 1.2 The Territory for this Agreement has been
mutually defined and is specified in Your Profile Attachment. 
  
 1.3 Limitation
of Liability: Neither of us will be liable to the other for any economic consequential damages (including lost profits or savings) or incidental damages under this Agreement, even if advised that they may occur. Each of our liability for any claim
under this Agreement will be limited to actual damages up to US$50,000, or the amount of funds IBM has provided you under this Agreement, whichever is greater. 
  

1.4 Term and Termination: This Agreement is effective once signed by you and IBM and will remain in effect for two (2) years. 
  
 Either of us may terminate this Agreement for convenience with 60 days prior written notice.
Either of us may terminate on 30 days’ written notice if the other materially breaches its obligations unless the breach is corrected within the 30 day notice period. Any terms of this Agreement which by their nature extend beyond the day this
Agreement ends remain in effect until fulfilled, and apply to either of our successors and assignees. 
  
 1.5 Information: Unless we mutually agree to exchange confidential information under a non-disclosure agreement, all information we exchange is non-confidential. However, we agree not to disclose the terms of this
Agreement to a third party without each other’s prior written consent, except as required by law. 
  
 1.6 Publicity: 
  
 i) Upon signing this Agreement,
IBM will work with you to release a mutually acceptable announcement about your IBM ISV Advantage relationship utilizing the Announcement Template set forth in Exhibit A. You will continue to pro-actively and publicly reference your IBM ISV
Advantage relationship and endorse _n open integrated solution strategy built on IBM technologies consistent with the verbiage set forth in the Announcement Template during the term of this Agreement. In addition, you agree to allow IBM to make
public statements about your participation in the ISV Advantage initiative, your endorsement of open standards, and your Enablement or intention to Enable to IBM Middleware (and Linux, where applicable). Once you’ve Enabled and we’ve
achieved customer wins in the marketplace, we will jointly look for opportunities to publicize our success in the marketplace. 
  
 ii) Upon your submission of a validated and newsworthy customer win for the Combined Offering, we will work with you to develop and execute a marketing and communications
launch plan. The launch plan will be tailored to you in your Targeted Area and will include at a minimum one or more marketing and communications tactics such as: press release, media outreach, media reference, analyst updates, web stories, byline
articles in trade journals, etc and will appropriately include joint executive remarks attesting to the benefits of your Enabled Products and/or the Combined Offering. 
  
 iii) Except as specifically provided in this Section 1.6, neither of us will issue any publicity regarding this Agreement or this
relationship without the other’s prior written approval. Upon expiration or termination of this Agreement, neither of us will make, or participate in, any public statements regarding the other without such other party’s prior consent.

  

 3 

 1.7 Privacy: We both have the right to store contact information on each other’s employees such as names, phone
numbers and e-mail addresses in any country where we do business. Each of us may use such information to fulfill our respective obligations under this Agreement, subject to any signed confidentiality agreement between us. 
  
 1.8 Miscellaneous: This is a non-exclusive relationship. Each party is responsible for its
own costs, including all business, travel and living expenses incurred by the performance of this Agreement. Neither party will bring a legal action against the other more than two years after the cause of action arose. Each party waives a jury
trial in any dispute. Failure by either party to demand strict performance or to exercise a right does not prevent either party from doing so later. The parties are independent contractors. Personnel supplied by either party are not for any purpose
considered employees or agents of the other party. Each party assumes full responsibility for the actions of its personnel while performing its obligations under this Agreement and is solely responsible for their direction and compensation. This
Agreement does not create any obligations for the parties in any way limiting or restricting the assignment of its respective employees. The laws of the People’s Republic of China govern this Agreement. Neither of us can assign this Agreement
without the prior written consent of the other. Any Dispute arising out of or in connection with the execution of this Agreement shall be settled through amicable consultation first. In the event no settlement can be reached, either party may submit
the dispute to China International Economic and Trade Arbitration Commission for Arbitration. The arbitral award rendered by the said arbitration commission shall be final and binding upon both parties. The arbitration fee shall be borne by the
losing party. 
  
 2.0 Mutual Commitments 
  
 2.1 Each party will name a focal point or Business Opportunity Advocate to manage the
activities and responsibilities under this relationship. The focal points will confer on a regular basis (but not less than once per quarter) to jointly assess status and progress under this Agreement. 
  
 2.2 We will jointly participate in a “Marketing Workshop” to establish a mutually
agreed upon “Marketing Plan” which will, among other things, define joint marketing activities under this Agreement. 
  
 3.0 IBM’s Commitments 
  
 Enabling: 
  
 3.1 IBM will provide you priority confirmation status available to developers for the following benefits: 
  

	 	•	 	IBM On Demand and Express Technical briefings/seminars/education and web casts 

  

	 	•	 	Marketing seminars and technical labs held at IBM Innovation Centers (“IICs”) 

  

	 	•	 	Seminars, labs and webcasts of no charge with a focus on WebSphere, DB2 UDB, Linux, Express products, e-business-on-demand 

  
 3.2 In order to ‘jumpstart’ your Enablement activities, IBM will provide you with
1-2 hours ‘remote’ technical evaluation and Enablement assistance at no charge upon your execution of this Agreement. ‘Remote’ means where we interact with or access you or your development environment via phone, web, internet
while not at the same location with you. This assistance may include i) discussion about your existing development environment, business and software requirements; ii) IBM recommendations on Enabling to IBM Middleware, and iii) references to
roadmaps and other technical collateral that will help jumpstart your Enablement. 
  

 4 

 3.3 In order to continue supporting your Enablement activities during the term of this Agreement, IBM will provide you
with up to 8 cumulative hours per calendar quarter remote technical consulting during the term of this Agreement. This is intended to assist with any design or development issues you may experience and may include: a) consulting for design,
architecture and integration issues across multiple platforms, products and technologies in the IBM product portfolio, as applicable, for your Products, b) assistance with understanding new and upcoming technologies that may impact your future
Product plans and technical strategies, and c) skills development activities on technologies pertinent to your Products. 
  
 3.4 IBM will provide you priority status for access to voice or web-based remote development Q&A associated with your Enablement activity. Remote Electronic Q&A
support is available 24 X 5, Monday through Friday. 
  
 3.5 We will provide you
access to technical resources, either via on IIC location or remotely via the Virtual Private Network (VPN), to assist with your Enablement efforts for your Products associated with multi-server and multi-software technologies for complex
integration testing. 
  
 3.6 We will assist you with load testing and performance
tuning your Enabled Products using the latest IIC tools such as those from Rational to help ensure your Enabled Products load test with WebSphere, DB2 and Linux on the iSeries, pSeries and/or xSeries technologies. 
  
 3.7 IBM will confer upon you Premier Level status in IBM’s PartnerWorld program
(including all related benefits), subject to the terms of the PartnerWorld Agreement and related documents. Premier level status will be maintained for the duration of this Agreement. 
  
 3.8 IBM will provide you access to an online software catalog from which software titles can be downloaded at no charge and/or purchased at
a price limited to the cost of the media plus shipping and handling. Software obtained from the software catalog can be used for demonstration and evaluation, education, development and testing in accordance with the PartnerWorld Software Usage
Attachment which we will make available to you. 
  
 3.9 IBM will provide you
additional Enablement assistance including but not limited to: 
  

	 	a)	Run Your Business Software 

  

	 	b)	Education Cost Reimbursement (i.e., We Pay Offerings: You Test, You Pass) 

  

	 	c)	Technical Sales – Techline Support 

  

	 	d)	Solution Integration & Implementation Support 

  

	 	e)	Technical Sales Consultancy (for qualified account situations) 

  
 Your IBM Business Opportunity Advocate will provide you the details and scope of this assistance. 
  
 Marketing: 
  
 3.10 IBM will promote you as part of its portfolio of leading e-business SMB solutions within a “Targeted Area” (industry, sub-segment etc.) which will be
detailed in Your Profile Attachment. 
  
 3.11 IBM will work with you to create a
Marketing Plan that will define the markets, revenues, and tactics to drive demand generation and revenue for the Combined Offering. Once your Product is nearing its Enablement completion, we will contact you to set up a mutually convenient
Marketing Workshop. Typically, this occurs within 1-2 months before your Enabled Product is GA. 
  

 5 

 3.12 IBM will participate in joint co-funded marketing tactics with you as mutually agreed in the Marketing Workshop. IBM
will ‘match’ (directly remit and/or reimburse) your co-funding spending at an overall ratio of 2:1 (IBM: you) up to an IBM maximum payment specified in Your Profile Attachment (“IBM Maximum Payment”) subject to the terms set
forth in Section 4.11. While Your Profile Attachment specifies on IBM Maximum Payment in US dollars, payment will be remitted to you in the local currency. The currency exchange rate will be adjusted once a year as specified in
Appendix C of the PartnerRewards claims process guide. 
  
 3.13 We will make IIC
space available to you at a mutually agreed to IIC location, date and time at no charge (excluding your travel and living expenses) in order for you to host a go-to-market seminar for the Combined Offering aimed at your potential customers.

  
 3.14 IBM will work with you to provide its SMB and Brand Sales teams with a
“Deep Dive Education Module” (internal IBM education) on you, your Enabled Product and the Combined Offering. 
  
 3.15 IBM will work with you to prepare and distribute a ‘top sheet’ to IBM SMB and Brand Sales teams to highlight the differentiation and strength of your
Enabled Product and the Combined Offering. 
  
 3.16 IBM will illustrate our joint
wins on internal and external websites (e.g., eBusiness Advisor, Medium Business Center) on mutual approval. 
  
 3.17 IBM will include your Enabled Product and the Combined Offering in certain SMB sales campaigns. 
  
 3.18 IBM will provide you market management assistance by helping you identify markets for your Enabled Product and the Combined Offering based on i) IBM’s market
intelligence and ii) criteria such as opportunity, growth, size and propensity. 
  
 3.19 IBM will link information about your company and Enabled Product to e-business Sales Tools which may vary by geography and region. 
  
 3.20 IBM will pre-approve you to resell IBM software in our Value Advantage Plus program in the country where you execute this Agreement under our standard terms and
conditions. Value Advantage Plus provides you an opportunity to earn profits through higher discounts on IBM software sold with your application. 
  
 If you are Enabling on Linux (e.g. DB2 on Linux or WebSphere on Linux), you are entitled to the following additional Linux Enabling benefits: 
  
 Linux Enabling: 
  
 3.21 IBM will provide you internet access to validate your Linux Enabled Product on
IBM’s Integrated Platform. Integrated Platform is a comprehensive open platform (integrated, pre-configured and tested) that will help you quickly and easily deploy on Linux: delivering customer solutions on an open platform. The Integrated
Platform includes a blueprint of software and hardware configurations, along with instructions for proposing, implementing and extending solutions. 
  
 3.22 IBM will provide you priority status for internet access to Linux test drives, subject to availability, at no charge (except your own connect time charges), in
accordance with current terms and conditions. 
  

 6 

 4.0 Your Commitments 
  
 4.1 You will Enable and make GA your Product(s) to two IBM Middleware technologies, at least one IBM eServer platform and if
applicable, Linux operating system. (If your Primary IBM Middleware technology is WebSphere, your Secondary IBM Middleware technology must be DB2 UDB (or Informix). Conversely, if your Primary IBM Middleware technology is DB2 UDB (or Informix) on
Linux, your Secondary IBM Middleware technology must be WebSphere.) Your Profile Attachment will include the specific IBM Middleware and eServer technologies and will denote the specified time period in which you will achieve these Enablements.
Prior to GA, you agree to keep your IBM Business Opportunity Advocate apprised of your Enablement progress, status and milestones on a monthly basis. Once Enabled (or if you are already Enabled), you agree to stay technically current on the
IBM Middleware, and IBM eServer hardware, where applicable. 
  
 4.2 You will lead
with IBM products and services in your development, marketing and sales activities. “Lead with” behavior will be measured and considered achieved by your attainment of all the following share milestones by the end of the term of this
Agreement: (For share purposes, you may aggregate your Products if you are Enabling (or have already Enabled) more than one of your Products.) 
  
 i) at least 60% of total installations/shipments of the Products will install/ship with, or on, the specified eServer technologies. (You may combine share attainment on
multiple IBM eServer series technologies); 
  
 ii) at least 60% of total
installations/shipments of the Products will install/ ship with and exploit the IBM Primary Middleware technology; and 
  
 iii) at least 30% of total installations/shipments of the Products will install/ship with and exploit the IBM Secondary Middleware technology. 
  
 4.3 In addition to the quarterly reporting requirements described in Sections 4.8 and 4.10
below, you will report your best estimate of IBM Influenced Revenue received by IBM as a result of the sale of your Enabled Products in the ISV Self-Reporting Questionnaire (“Questionnaire”) (sample of which is attached as Exhibit B).

  
 4.4 You will educate, inform and ensure your development, marketing, sales and
channel organizations remain current on the business benefits and value of using IBM technologies as part of the Combined Offering. 
  
 4.5 Consistent with your commitment to increase your IBM Share you will promote the Enabled Product and Combined Offering directly to your customers, prospects and/or
indirectly to and through your resellers and distributors. In order to confirm and, if possible, enhance your promotion activities, upon request, you will provide to IBM’s Business Opportunity Advocate specific information and examples of
situations where you have successfully and unsuccessfully promoted IBM’s technologies in a particular opportunity. 
  
 4.6 Both parties ‘win’ when IBM executes on leads you generate from our joint co-marketing activities. You will utilize our leads spreadsheet (‘Data
Exchange Template’) (which we will provide you) to pass these leads on a timely basis. This form will include potential customer names, contact information, and lead details. 
  
 4.7 Unless you already have an OEM Agreement or Value Advantage Plus Attachment in effect with IBM for either the Primary or Secondary IBM
Middleware specified in Your Profile Attachment, you will do one of the following within thirty (30) days of executing this Agreement: 1) apply for IBM’s Value Advantage Plus and execute the related agreement; or 2) execute an OEM Agreement.

  

 7 

 4.8 Your Business Opportunity Advocate will complete the Questionnaire about your IBM Share growth and submit it
electronically on a quarterly basis. You will specify the name and e-mail address of your Business Opportunity Advocate in Your Profile Attachment. 
  
 4.9 You will retain the data from which you prepare your Questionnaire for the duration of this Agreement, and will provide it to IBM, at our request. 
  
 4.10 You will report 5 ‘customer wins’ for the Combined Offering each quarter.
‘Customer win’ means a new placement of an IBM server and/or IBM software license to an end user customer. You will report this information via the Questionnaire (Customer Installations section). If there are less than 5 customer wins in a
quarter, you will report on all that occurred. 
  
 4.11 You will undertake
marketing activities consistent with the mutually agreed to Marketing Plan. If you choose to participate in these joint co-funded IBM marketing campaigns, the following terms govern: 
  

	i.	you are eligible for reimbursement of claims associated with approved marketing tactics up to 50% of the IBM co-funds identified in Your Profile Attachment after your Products are
Enabled on the Primary IBM Middleware and identified IBM eServer technology; 

  

	ii.	you must comply with the funding allocation ratio and IBM Maximum Payment set forth in Section 3.12 and Your Profile Attachment, respectively; 

  

	iii.	you must comply with IBM’s ISV Advantage General Expense Guidelines (Exhibit C); 

  

	iv.	you must comply with IBM’s Partner Rewards Claim Process Guide where applicable which will be provided to you; 

  

	v.	your expenditures are consistent with activities that we mutually define in the Marketing Plan 

  

	vi.	you are eligible for reimbursement of claims associated with approved marketing tactics for the remaining 50% of the IBM co-funds identified in Your Profile Attachment after your
Products are Enabled on the Primary and Secondary IBM Middleware and identified IBM eServer technology; and 

  

	vii.	you must keep relevant financial records relating to this Section for two years. We, or an independent auditor, may conduct a review of these records, at our expense, during your
normal business hours upon reasonable notice to you. 

  
 Only those
activities performed and completed within the specified time frames are eligible for cost reimbursement. 
  
 4.12 If requested by IBM, you will provide IBM with a reasonable number of demonstration copies of your Enabled Products at no charge solely for IBM’s marketing and demonstration activities under this Agreement
or use in IBM Innovation Centers. 
  
 4.13 You acknowledge that you have already
executed the IBM PartnerWorld Agreement – International Basic General Terms (when you first joined/registered for PartnerWorld). You authorize us to register you for additional PartnerWorld benefits to which you are now entitled as an ISV
Advantage participant. 
  
 4.14 We will ask you to provide us non-confidential
information about your company and your Enabled Product(s) for inclusion in certain of our marketing deliverable; (e.g., Deep Dive Education Module, ‘top sheet’ to our SMB and Brand Sales teams, joint wins we illustrate on websites,
certain SMB sales campaigns). You will provide us such information on a timely basis. 
  

 8 

 Your Profile Attachment 
  

The terms included in this Attachment are in addition to those detailed in the base ISV Advantage Agreement. They reflect customization of the ISV Advantage initiative
to accommodate you. 
  
 1. The mutually agreed to Territory for this Agreement is
the People’s Republic of China. 
  
 2. The Targeted Area on IBM’s
ISP Solution Map for you and your Enabled Product is: 
  

			
	 SMB Segment:
	  	 Distribution

	 Sub-segment:
	  	 Retail

	 Solution Area:
	  	 ERP

	 Customer Size:
	  	 2000-3000 employees

  
 3. Your ISV Advantage Enablement
Environment 
  
 3.1 Name of ISV Product and Version Number: efuture ONE Visual SCM
R2005 
  
 3.2 Enablement to IBM Middleware and eServer Technologies 
  
 IBM Primary Middleware* 
  

							
	 IBM Technology

	  	Currently
Enabled on:
(insert an ‘X’
for those that
apply)

	  	 Will Enable to under this Agreement:
Operating System/
eServer series
Combination**

	  	 Will Enable by
(Month/Date/Year):

	 WebSphere Application Server
	  	 	  	AIX on pSeries: Windows on xSeries	  	May 1, 2005
				
	 WebSphere Application Server Express
	  	 	  	 	  	 
				
	 WebSphere Portal
	  	 	  	 	  	 
				
	 WebSphere Portal Express
	  	 	  	 	  	 
				
	 DB2 UDB on Linux
	  	 	  	 	  	 
				
	 DB2 UDB Express Edition on Linux
	  	 	  	 	  	 
				
	 Informix database server (IDS) on Linux
	  	 	  	 	  	 
				
	 U2 database server on Linux
	  	 	  	 	  	 
				
	 Cloudscape database server on Linux
	  	 	  	 	  	 

  

	*	If your Primary IBM Middleware technology is WebSphere, your Secondary IBM Middleware technology must be DB2 UDB (or Informix). Conversely, if your Primary IBM Middleware technology
is DB2 UDB (or Informix) on Linux, your Secondary IBM Middleware technology must be WebSphere, 

  

	**	The following are valid eServer Series/Operating Systems combinations: 

  

 9 

 OS400 on iSeries: Linux on iSeries: AIX on pSeries: Linux on pSeries: Windows on xSeries: Linux on

 xSeries: zOS on zSeries, Linux on zSeries 
  
 IBM Secondary Middleware 
  

							
	 IBM Technology

	  	 Currently
Enabled on:
(insert an ‘X’
for those that
apply)

	  	 Will Enable to under
this
Agreement:
Operating System/ eServer series
Combination**

	  	 Will Enable by
(Month/Date/Year):

	 WebSphere Application Server
	  	 	  	 	  	 
	 WebSphere Application Server Express
	  	 	  	 	  	 
	 WebSphere Portal
	  	 	  	 	  	 
	 WebSphere Portal Express
	  	 	  	 	  	 
	 DB2 UDB
	  	 	  	AIX on pSeries: Windows on xSeries	  	May 1, 2005
	 DB2 UDB Express Edition
	  	 	  	Windows on xSeries	  	May 1, 2005
	 Informix database server (IDS)
	  	 	  	 	  	 
	 U2 database server
	  	 	  	 	  	 
	 Cloudscape database server
	  	 	  	 	  	 

  
 IBM eServer
Technology 
  

			
	 IBM Technology

	  	Currently Enabled
on: (insert an ‘X’
for those that
apply)

	 xSeries
	  	X
	 pSeries
	  	X
	 iSeries
	  	 
	 zSeries
	  	 

  
 3.3 Name of ISV Product and Version
Number: efuture efuture ONE POS-ERP v6 
  
 3.4 Enablement to IBM Middleware and
eServer Technologies 
  
 IBM Primary Middleware*

  

							
	 IBM Technology

	  	 Currently
Enabled on:
(insert an ‘X’
for those that
apply)

	  	 Will Enable to under this
Agreement: Operating System/
eServer series
Combination**

	  	 Will Enable by
(Month/Date/
Year):

	 WebSphere Application Server
	  	 	  	 	  	 
	 WebSphere Application Server Express
	  	 	  	 	  	 
	 WebSphere Portal
	  	 	  	 	  	 
	 WebSphere Portal Express
	  	 	  	 	  	 
	 DB2 UDB on Linux
	  	 	  	Linux on xSeries: Linux on pSeries	  	May 1, 2006
	 DB2 UDB Express Edition on Linux
	  	 	  	Linux on xSeries	  	May 1, 2006
	 Informix database server (IDS) on Linux
	  	 	  	 	  	 
	 U2 database server on Linux
	  	 	  	 	  	 
	 Cloudscape database server on Linux
	  	 	  	 	  	 

  

	*	If your Primary IBM Middleware technology is WebSphere, your Secondary IBM Middleware technology must be DB2 UDB (or Informix). Conversely, if your Primary IBM Middleware technology
is DB2 UDB (or Informix) on Linux, your Secondary IBM Middeware technology must be WebSphere. 

  

 10 

	**	The following are valid eServer Series/Operating Systems combinations: 

  
 OS400 on iSeries: Linux on iSeries: AIX on pSeries: Linux on pSeries: Windows on xSeries: Linux on xSeries: zOS on zSeries: Linux on zSeries 
  
 IBM Secondary Middleware 
  

							
	 IBM Technology

	  	 Currently
Enabled on:
(insert an ‘X’
for those that
apply)

	  	 Will Enable to under
this
Agreement:
Operating System/ eServer series
Combination**

	  	 Will Enable by
(Month/Date/Year):

	 WebSphere Application Server
	  	 	  	 	  	 
	 WebSphere Application Server Express
	  	 	  	 	  	 
	 WebSphere Portal
	  	 	  	 	  	 
	 WebSphere Portal Express
	  	 	  	 	  	 
	 DB2 UDB
	  	 	  	 	  	 
	 DB2 UDB Express Edition
	  	 	  	 	  	 
	 Informix database server (IDS)
	  	 	  	 	  	 
	 U2 database server
	  	 	  	 	  	 
	 Cloudscape database server
	  	 	  	 	  	 

  
 IBM eServer
Technology 
  

			
	 IBM Technology

	  	Currently Enabled on:
(insert an ‘X’ for
those that apply)

	 xSeries
	  	X
	 pSeries
	  	X
	 iSeries
	  	 
	 zSeries
	  	 

  

 11 

 4. OEM Agreement between you and IBM for WebSphere and/or DB2 on Linux: 
  

			
	 Not applicable
	  	x
	 Yes, Agreement Number
	  	 ̈

  
 5. Your Business Opportunity Advocate:

  

			
	Name:	  	Li Junfeng
	Co:	  	eFuture Information Tech. Inc.
	Address:	  	312, Tower E2, Orient Plaza, No. 1 East Chang An Avenue, Dong Cheng District
	Address:	  	Beijing, 100738, P.R.C.
	Phone No.:	  	010-51650988/51650998
	Email:	  	lijf@e-future.com.on

  
 6. Your IBM PartnerWorld ID: 19144560

  
 7. IBM Maximum Payment: You are eligible for up to US$50,000 in
campaign funding pursuant to Sections 3.12 and 4.11 of the base Agreement. US$10,000 of this amount is specifically earmarked for Linux marketing activities and is subject to mutually agreeable Linux marketing tactics which will be developed as part
of the Marketing Plan during the Marketing Workshop. 
  

 12 

 Exhibit A – Announcement Template 
  
 [Insert Company Name] Joins IBM’s ISV Advantage Initiative to Help SMB Customers in (XXX Industry) 
  
 Companies to Offer Open, e-business on Demand Solutions 
  
 [City, State], [Date] — [Company], a [insert one line company description], has joined
IBM’s ISV Advantage Initiative, a program designed to provide independent software vendors (ISVs) with technical and marketing support to help meet the specific information technology needs of small and medium business (SMB) companies.
Customers are seeking solutions that help them better integrate processes and applications internally and externally and allow them to quickly respond to changing market opportunities on demand. 
  
 [Next - 2-3 sentences - briefly describe what products the ISV offers, what they do, and what
problems they solve.] 
  
 Enabling [insert company’s product names] an
IBM’s [insert IBM software here and note if running on Linux] will help [insert company] expand into the SMB market faster and more effectively than is possible with proprietary platforms. 
  
 [Partner quote on the benefits of ISV Advantage and how being a part of the program will help
them win SMB customers.] 
  
 The IBM [insert WebSphere or DB2] family includes
products that are designed and priced specifically for small and medium businesses — easy to install and manage, scalable to grow with a business, rich in functionality, and based on open standards to allow integration with existing software
and hardware platforms. 
  
 [Insert company] will also work closely with IBM to
expand its visibility in target vertical industries through various co-marketing and sales activities. 
  
 ISV Advantage is administered by IBM PartnerWorld, the developer resource for IBM Business Partners. It is a worldwide program designed to help software developers reach broader markets, lower their costs of doing
business, and take their products to market faster. For more information, visit http://www.ibm.com/partnerworld, or call 1-770-863-2048 outside North America. 
  

About [Company] 
 [Insert company’s boilerplate] 
  

	*	IBM, the IBM Business Partner emblem, DB2, DB2 Universal Database, PartnerWorld and WebSphere are trademarks or registered trademarks of IBM Corporation in the United States, other
countries, or both. 

  

 13 

 Exhibit B – ISV Self Reporting Questionnaire 
  
 This is a sample Questionnaire. You will submit the actual Questionnaire
electronically via an IBM website. From time to time, IBM may make minor changes to this form. 
  
 ISV Advantage self reporting questionnaire 
  
 By agreeing to participate in ISV Advantage, you have agreed to grow the percent of your business on IBM Middleware. In order to measure your progress against that objective, please report the following for the quarter that just concluded.

 Note: All capitalized terms below have the same meaning as in your ISV Advantage Agreement. 
  
 IBM eServer information 
  
 What percent of your new Enabled Product(s) licenses shipped or installed on IBM iSeries, pSeries, xSeries or zSeries? 
  

	•	 	  0-9% 

  

	•	 	10-19% 

  

	•	 	20-29% 

  

	•	 	30-49% 

  

	•	 	50-59% 

  

	•	 	60-79% 

  

	•	 	80-100% 

  
 How does this percent compare to the prior quarter? 
  

	•	 	Down 

  

	•	 	Flat 

  

	•	 	Up 

  
 How does this percent compare on a year to date basis to the prior year? 
  

	•	 	Down 

  

	•	 	Flat 

  

	•	 	Up 

  
 Select one or more IBM eServer platforms that your new Enabled Product(s) licenses were shipped with or installed on in the quarter just concluded. 
  

	•	 	iSeries 

  

	•	 	pSeries 

  

	•	 	xSeries 

  

	•	 	zSeries 

  
 DB2 Information 
  
 Does your Agreement
include DB2? 
  

	 	•	 	Yes 

  

	 	•	 	No 

  
 If yes, you must complete all questions in this section to submit the form. 
  

 14 

 What percent of your new Enabled Product(s) licenses shipped or installed with DB2? 
  

	•	 	  0-9% 

  

	•	 	10-19% 

  

	•	 	20-29% 

  

	•	 	30-49% 

  

	•	 	50-59% 

  

	•	 	60-79% 

  

	•	 	80-100% 

  
 What percentage of your new Enabled Products(s) licenses shipped or installed with DB2 on Linux? 
  

	•	 	  0-9% 

  

	•	 	10-19% 

  

	•	 	20-29% 

  

	•	 	30-49% 

  

	•	 	50-59% 

  

	•	 	60-79% 

  

	•	 	80-100% 

  
 How does this percent of DB2 on Linux compare to the prior quarter? 
  

	•	 	Down 

  

	•	 	Flat 

  

	•	 	Up 

  
 How does this percent of DB2 on Linux compare on a year to date basis to the prior year? 
  

	•	 	Down 

  

	•	 	Flat 

  

	•	 	Up 

  
 IBM WebSphere Information 
  
 Does your Agreement include
WebSphere? 
  

	 	•	 	Yes 

  

	 	•	 	No 

  
 If yes, you must complete all the questions in this section to submit the form. 
  
 What percent of your new Enabled Product(s) licenses shipped or installed with WebSphere (on any operating systems)? 
  

	•	 	  0-9% 

  

	•	 	10-19% 

  

	•	 	20-29% 

  

	•	 	30-49% 

  

	•	 	50-59% 

  

	•	 	60-79% 

  

	•	 	80-100% 

  

 15 

 How does this percent compare to the prior quarter? 
  

	•	 	Down 

  

	•	 	Flat 

  

	•	 	Up 

  
 How does this percent compare on a year to date basis to the prior year? 
  

	•	 	Down 

  

	•	 	Flat 

  

	•	 	Up 

  
 What percent of your new Enabled Product(s) licenses shipped or installed with WebSphere on Linux? 
  

	•	 	  0-9% 

  

	•	 	10-19% 

  

	•	 	20-29% 

  

	•	 	30-49% 

  

	•	 	50-59% 

  

	•	 	60-79% 

  

	•	 	80-100% 

  
 Customer Installations 
  
 For the
quarter just concluded, please provide the customer name and applicable technologies for up to 5 end user “customer wins” on IBM technology. 
  
 Note: Customer sales information is for internal IBM reporting and will not be used as public references without your permission. 
  
 Customer 
  

			
	 	  	 •      iSeries

	IBM	  	 •      pSeries

	Technology	  	 •      XSeries

	 	  	 •      zSeries

		
	 	  	 •      DB2 on Linux

	 	  	 •      WebSphere Application Server

	Middleware	  	 •      WebSphere Studio

	 	  	 •      WebSphere MQ

	 	  	 •      WebSphere Business Integration

	 	  	 •      WebSphere Portal

	 	  	 •      Informix

  
 Influenced IBM Revenue

  
 For the quarter just concluded, what is the estimated Influenced IBM
Revenue (hardware, software and services) that your new Enabled Product(s) licenses helped close? 
  
 Please report the Influenced IBM Revenue estimate in U.S. Dollars _______________ 
  

 16 

 Exhibit C – IBM’s ISV Advantage General Expense Guidelines 
  
 As part of the Marketing Workshop described in Section 2.2 of the base Agreement, we will
identify specific marketing tactics to enable you-to participate in co-funded campaign activity. These tactics are intended to generate demand for the Combined Offering. Items to be discussed may include: 
  
 Marketing Campaign Services 
  
 Campaign Designer - IBM campaign offering 
 Development of Targeted Mailing Lists 
 Telemarketing for Campaign Follow Up 
 Direct Mail 
  
 Marketing Seminars 
  
 Events 
 Seminars 
 Webinars 
 Relative Collateral 
 Opportunity Support Kits 
  
 Trade Shows 
  
 Targeted/focused shows, with IBM 
  
 The following expenses will not be approved for copayment as part of the ISV Advantage initiative: 
  
 Media Advertising 
 Print Advertising 
 Sales Meetings 

Sales Product Incentive Funds (SPIFS) 
 Equipment 
 Travel and associated Expenses 
 Education Expenses 
 Sporting/Entertainment Events 
 Alcohol expenses for an event 
 Association
Dues 
 Customer Satisfaction Surveys 
  
 Questions about expenses should be directed to your IBM Business Opportunity Advocate. 
  

 17

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