SUNITY ONLINE ENTERTAINMENT LIMITED MANAGEMENT AGREEMENT
XXXXXX
ONLINE ENTERTAINMENT LIMITED
This
Management Agreement (the “Agreement”) is made and entered into as of March 12,
2010, by and between
Party A:
Xxxxxx Online Entertainment Limited, (the “Company”) a limited liability company
duly incorporated in Cayman island, and
Party B:
a P.R.C citizen Simon Hong He (“the Management”).
I.
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SERVICES
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1.1
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Party
B is hereby appointed to be the Company’s
Management, effective on April 1, 2010. Party B is hereby appointed to be
the subsidiary of the Company’s
management and the management of the controlled operation company,
effective on March 1, 2010. (the subsidiary of the Company and the
controlled operation company of the Company are collectively referred as
“Group Companies” hereunder)
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1.2
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Party
B agrees to perform such tasks as may be necessary to fulfil his
obligations as the Chief Financial
Officer of the Company and the Group Companies for so long
as he is duly appointed or elected and qualified in accordance with the
applicable provisions of the Articles of Association and Memorandum of
Association of the Company or any Group Company and until such time as he
resigns. Party B, in his capacity as Chief Financial Officer may at any
time and for any reason resign or be removed from such position (subject
to any other contractual obligation or other obligation imposed by
operation of law), in which event the Company and the Group Company shall
have no obligation under this Agreement with respect to Party B. Party
B’s
duties as Chief Financial Officer of the
Company and the Group Company shall be mutually agreed to by Party B and
the Company under separate cover.
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1.3
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Term. This
Agreement shall terminate upon the “Expiration
Date”,
which shall be the earlier of the date on which Management ceases to be a
member of the executive management of the Company and the Group Company
for any reason, including death, resignation, removal, or failure to be
elected by the stockholders of the Company, or the date of termination of
this Agreement in accordance with Section 5.2
hereof.
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II.
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COMPENSATION
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2.1
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Fees to
Management. The Company agrees to pay Management a fee of RMB
20,000 per month for Management Services in consideration for the service
provided by Party B to the Company and the Group Company, payable pursuant
to the usual and customary payroll practices of the
Company.
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2.2
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Options. The
Company agrees to grant Party B an option to purchase 100,000 ordinary
shares of the Company at an exercise price equal to the price per ordinary
share offered to the public in connection with the Company’s
initial public offering (the “Option”). This Option may be exercised, in
whole or in part, in accordance with the following vesting schedule:
twenty-five percent (25%) of the shares underlying the Option shall vest
and become exercisable upon the closing of the Company’s
initial public offering (the “Vesting Commencement Date”). An additional
twenty-five percent (25%) of the shares underlying the Option shall vest
on each successive anniversary of the Vesting Commencement Date until all
shares underlying the Option have vested, so that all of the shares
underlying the Option shall be vested and fully exercisable three (3)
yeans from the Vesting Commencement Date, subject to your continued
employment with me Company on the relevant vesting
dates.
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III.
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CONFIDENTIALITY
AND NONDISCLOSURE
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3.1
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Confidentiality.
During the term of this Agreement, and for period of one (1) year after
the Expiration Date, Party B shall maintain in strict confidence all
information he has obtained from the Company and the Group Company during
the term, which the Company and the Group Company has designated as
“confidential” or which is by its nature confidential, relating to the
Company’s
business, operation, properties, assets, services, condition (financial or
otherwise), liabilities, employee relations, customers (including customer
usage statistics), suppliers, prospects, technology, or trade secrete,
except to the extent such information (i) is in the public domain through
no act or omission of the Company and the Group Company, (ii) is required
to be disclosed by law or a valid order by a court or other governmental
body, or (iii) is independently learned by Party B outside of this
relationship as an officer of the Company and the Group Company (the
“Confidential Information”).
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3.2
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Nondisclosure and Nonuse Obligations. Party B will
use me Confidential Information solely to perform his obligations for the
benefit of the Company and the Group Company hereunder. Party B will
not use the Confidential Information for his own benefit or the benefit of
any other person or entity, except as may be specifically permitted in
this Agreement Party B will immediately give notice to the Company of
any unauthorized use or disclosure by or through him, or of which he
becomes aware, of the Confidential Information. Party B agrees to assist
the Company and the Group Company in remedying any such unauthorized use
or disclosure of the Confidential
information.
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3.3
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Return of Company Property. All materials
furnished to Party B by the Company and the Group Company, are the sole
and exclusive property of the Company and the Group Company. Party B
agrees to promptly deliver the original and any copies of the property to
the Company and the Group Company at any time upon request. Upon
termination of this Agreement by either party for any reason, Party B
agrees to promptly deliver to the Company and the Group Company the
original and any copies of the company property. Party B agrees to certify
in writing that he has so returned all such
property.
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IV.
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COVENANTS
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4.1
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No Conflict of
Interests. During the term of this Agreement, and for a period of
one (1) year after the Expiration Date, Party B shall not be employed
by, own manage, control or participate in the ownership, management,
operation or control of any person, firm, partnership, corporation or
unincorporated association or entity of any kind that is competitive with
the Company and the Group Company or otherwise undertake any obligation
inconsistent with the terms hereof. A business shall be deemed to be
“competitive with the Company and the Group Company” for purpose of this
Article IV only if and to the extent it engages in the business
substantially similar to the Company’s
business.
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4.2
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Non-interference with Business.
During the term of this Agreement and for a period of one (1) year after
the Expiration Date, Party B agrees not to interfere with the business of
the Company and the Group Company in any manner. By way of example and not
of limitation, Party B agrees not to solicit or induce any employee,
independent contractor, customer or supplier of the Company and the Group
Company to terminate or breach his, her or its employment contractual or
other relationship with the Company and the Group
Company.
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V.
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TERM AND
TERMINATION
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5.1
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Term. This Agreement is effective as of the date first
written above and will continue until the Expiration
Date.
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5.2
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Termination. Either party may
terminate this Agreement at any time upon thirty (30) days prior written
notice to the other party, or such shorter period as the parties may agree
upon.
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5.3
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Survival. The rights and
obligations contained in the Articles III and IV will survive any
termination or expiration of this
Agreement.
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VI.
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MISCELLANEOUS
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6.1
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Assignment. Except as expressly
permitted by this Agreement, neither party shall assign, delegate, or
otherwise transfer any of its rights or obligation under this agreement
without the prior written consent of the other party. Subject to the
foregoing, this Agreement will be binding upon and inure to the benefit of
the parties hereto and their respective heirs, legal representatives,
successors and assigns.
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6.2
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No Waiver. The failure of any
party to insist upon the strict absence and performance of the terms of
this Agreement shall not be deemed a waiver of other obligations
hereunder, nor shall it be considered a future or continuing waiver of the
same terms.
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6.3
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Notices. Any notice required or
permitted by this Agreement shall be in writing and shall be delivered as
follows with notice deemed given as indicated: (i) by personal delivery
when delivered personally; (ii) by overnight courier upon written
verification of receipt; (iii) by facsimile transmission upon
acknowledgment of receipt of electronic transmission; or (iv) by certified
or registered mail, return receipt requested, upon verification of
receipt. Notice shall be sent to the addresses set forth on the signature
page of this Agreement or such other address as either party may specify
in writing.
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6.4
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Governing Law. This Agreement
shall be governed by and construed and enforced under the laws of the
State of New York.
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6.5
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Severability. Should any
provisions of this Agreement be hereby a court of law to be illegal,
invalid or unenforceable, the legality, validity and enforceability of the
remaining provisions of this Agreement shall not be affected or impaired
thereby.
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6.6
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Entire
Agreement. This Agreement constitutes the entire agreement between
the parties relating to this subject matter and supersedes all prior or
contemporaneous oral written agreements concerning such subject matter.
The terms of this Agreement will govern all Management Services undertaken
by Party B for the Company and the Group
Company.
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6.7
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Amendments.
This Agreement may only be amended, modified or changed by an agreement
signed by the Company and Party B. The terms contained herein may not be
altered, supplemented or interpreted by any course of dealing or
practices.
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6.8
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Counterparts. This Agreement may
be executed in two counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument
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IN
WITNESS WHEREOF, the parties have executed this Agreement as of date first
written above.
Company:
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Xxxxxx
Online Entertainment Limited
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Representative:
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/s/ Xxx Xxxxx |
Date:
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March,
12, 2010
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Party
B:
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/s/ Simon Hong He |
Date:
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March,
12, 2010
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