Document:

China Interactive Education, Inc. - Exhibit 10.25 - Prepared By TNT
Filings Inc.

  

Exhibit 10.25

(English Translation)

Confidentiality
& Non-competition Agreement

Party A: MenQ Technology Group
Limited

Party B: _____________________

Party B hereby promises and
ensures that Party B shall be in charge of, or obligated to keep confidential against
all commercial confidentialities in connection to company’s business and
acquired from work (collectively, “Commercial Confidentiality”) for the purpose
of safeguard legal rights and interests from Party A and assurance of smooth development
of Party A and its subsidiaries’ business. Party A and Party B (collectively, “Both
Parties”), with their negotiation and consensus, entered into this agreement.
The articles hereof are as following:

	
  

 	
  

 
	
 1.

 	
 Scope of “Commercial Confidentiality”

 
	
  

 	
  

 
	
 “Commercial Confidentiality” hereof means
 that materials and information are not the knowledge of, or disclosed to
 public (no matter how such was stored or fixed on any carrier), included but
 not limited:

 
	
  

 
	
 1.1

 	
 Files, records or materials from company
 include all kinds of contracts (no matter how such was made out in writing),
 personnel dossier, staff datum, administrative documentation, suppliers,
 partners and trade partners etc;

 
	
  

 	
  

 
	
 1.2

 	
 Any materials with respects to development
 of company’s software are, included but not limited, development of products
 & manufacture plan, development & establishment of network, software
 & program and design drawing etc;

 
	
  

 	
  

 
	
 1.3

 	
 Marketing and distribution materials
 include cost, agents’ information, distribution materials, market promotion
 plan, pricing strategy, sale channel, sale model, marketing plan, quotation
 and clients materials etc;

 
	
  

 	
  

 
	
 1.4

 	
 Financial information and materials,
 opening-account materials, shareholder materials and investment information
 from company etc;

 
	
  

 	
  

 
	
 1.5

 	
 Intellectual property from company (no
 matter that such is owned by company or jointly owned by company and other
 parties, or developed at present or in the future), included but not limited:

 

	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 Trademarks from company, and related to
 software or products from other companies, regardless of letters, graphics or
 combination of both;

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Ownership of company’s software (include possession,
 usage, proceeds and punishment etc). “Software” means, included but not
 limited, software, source program and all codes; 

 
	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 All intellectual property related to
 company’s software and all rights related to patent (defined hereinafter)

 
	
  

 	
  

 	
  

 
	
  

 	
 d.

 	
 Know-how of exclusive technology from
 company include but not limit technology knowledge which was not disclosed and
 acquired legal protection from industry property, analysis method, analysis
 data, design drawing, technical process, formula, manufacture
 data and other data, technical specification, quality control and management
 etc knowledge, and include source program, code, checking documents and
 results, all reports and forms, records and information etc documentation
 (collectively, “exclusive technology”);

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 e.

 	
 Information and materials which could
 generate economic benefits or is practical and took appropriate confidential
 measures for them by company; other technical information and operational
 materials which could be used for peace, sale and operation of company.

 

	
  

 	
  

 
	
 2.

 	
 Obligation to Confidentiality from Party B

 
	
  

 	
  

 
	
  

 	
 Party B hereby promises during his/her
 position or after his resignation:

 
	
  

 	
  

 
	
 2.1

 	
 Party B shall not disclose, leak or reveal “Commercial
 Confidentiality” to any third party (regardless of natural or legal person)
 or use “Commercial Confidentiality” in any manner, and allowed or authorize
 to any third party to use “Commercial Confidentiality” in undue or malfeasant
 manner without previous written approval from Party A.

 
	
  

 	
  

 
	
 2.2

 	
 Party A shall have the right to request
 punishment against Party B pursuant to Article 3 hereof and be indemnified
 against losses in accordance with law of People’s Republic of China, in the
 event that Party B disclose, leak or reveal and unduly use “Commercial
 Confidentiality”, or “Commercial Confidentiality” used by any third party in
 undue or malfeasant manner due to Party B.

 
	
  

 	
  

 
	
 2.3

 	
 Party B shall prevent any third party from
 stealing or filching “Commercial Confidentiality” by taking all possible
 measures.

 
	
  

 	
  

 
	
 2.4

 	
 “Usage in undue or malfeasant manner  ” set
 forth in Clause 2.1 above include but not limit steal, fraud, menace, bribe,
 duplicate, in violation of confidentiality, or seducing someone from
 violation of confidentiality or other similar manner.

 
	
  

 	
  

 
	
 3.

 	
 Punishment for Breach of Discipline 

 
	
  

 	
  

 
	
 3.1

 	
 Party B shall be investigated and punished
 accordingly upon detection of breach of discipline from Party B in the event
 that Party B disclose, leak or reveal “Commercial Confidentiality” to any
 third party for whatever reasons or use in undue or malfeasant manner, or
 allow or authorize to any third party to use “Commercial Confidentiality”
 without previous written approval from Party A. Party B shall indemnified against
 losses arouse out of such actions.

 
	
  

 	
  

 
	
 3.2

 	
 Party A shall do administrative or/and
 economic punishments against Party B in accordance with rules and regulations
 from Party A and laws of People’s Republic of China in the event that company
 suffers from losses due to Party B’s violation of this agreement or laws of
 People’s Republic of China. Administrative punishment includes notice, criticism,
 record of a demerit, demotion, on leave without pay until dismissal; economic
 punishments include withholding bonus for the month or reducing salary. Party
 A shall have the right to ascertain the indemnification from Party B in legal
 manner relying on the severity of losses.

 
	
  

 	
  

 
	
 4.

 	
 Non-competitive

 
	
  

 	
  

 
	
 4.1

 	
 Party B hereby promises that Party B shall
 not have part-time jobs and engage in or take part in any business or
 activities which are possible to influence on company’s business without
 permission during his/her position

 

2

	
  

 	
  

 	
  

 
	
  

 	
  

 
	
 4.2

 	
 Party B, at his/her position of after
 resignation, hereby promises:

 
	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 Party B shall not establish any business
 relationship with clients, suppliers, partners, trade partners or staff,
 which could results in competitiveness with company’s business;

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Party B shall not harass or seduce other
 staff to resign from position; 

 
	
  

 	
  

 	
  

 
	
 4.3

 	
 Party B shall not work at other companies
 with similar business and competition and engage in or establish companies
 with similar business within eighteen months as of the date of resignation
 for any reason.

 
	
  

 	
  

 
	
 5.

 	
 Obligation to return

 
	
  

 	
  

 
	
 Party B shall return all “Commercial
 Confidentiality” to Party A which were held, used or controlled by Party B,
 and Party B hereby promises and ensures that Party shall be notified whether
 there is any “Commercial Confidentiality” stored in Party B’s computer; if
 any, Party B shall delete or clear away all “Commercial Confidentiality” with
 instruction from Party A prior to resignation for whatever reasons.

 
	
  

 
	
 6.

 	
 Right Transfer

 
	
  

 	
  

 
	
 6.1

 	
 Party B hereby agrees that all rights to
 research, invention, creation or improvement (include but not limit
 intellectual property) for performance of task from Party A or completed by
 using material conditions from Party A, no matter which are with respects to
 products, technology, manufacture mode, operation and management mode,
 marketing strategy, mark usage or other aspects shall belong to Party A
 (except signature authority from Party B in accordance with rules and
 regulations). Party B shall not authorize any third party to use such rights
 without previous written approval from Party A.

 
	
  

 	
  

 
	
 6.2

 	
 Party B hereby agrees that Party B shall transfer
 research, invention, creation or improvement aforesaid to Party A with
 request from Party A at any time during his/her position or within two years
 after resignation, and assist Party A in going through application
 formalities within reasonable time in mainland of China and overseas in order
 to Party A obtain or maintain rights aforesaid, and all matters as necessary
 for this purpose with request from Party A within reasonable time.

 
	
  

 	
  

 	
  

 
	
 7.

 	
 Indemnification and remediation

 
	
  

 	
  

 
	
 Party B shall be punished pursuant to
 Article 3, and indemnify any losses against Party A in the event of violation
 of any articles hereof. Party A has the right to force Party B to take all
 reasonable remedies in legal or fair manner.

 
	
  

 
	
 8.

 	
 Waiver

 
	
  

 	
  

 
	
 In the event that either party is going to
 waive any rights set forth in this agreement, the waiver shall be approved by
 the other party in writing; otherwise, it shall be deemed invalid. Either
 party can not use the right granted in this agreement which shall not be
 deemed waiver and has no influence on related right or indemnification;
 however, waiver in writing aforesaid (unless stipulated extra) shall be
 deemed one-time but not abidingly waiver, which has no influence on other
 rights to performance of other articles hereof.

 

3

	
  

 	
  

 
	
 9.

 	
 Effectiveness

 
	
  

 	
  

 
	
 This agreement shall be effect as of the
 date of execution.

 
	
  

 
	
 10.

 	
 Modification

 
	
  

 
	
 Any modification, adding or deleting of any
 articles hereof shall be deemed valid with written approval from both
 parties.

 
	
  

 
	
 11.

 	
 Settlement of Dispute

 
	
  

 	
  

 
	
 Both parties shall negotiate in friendly
 manner or mediate via neutral third party in the first place in connection
 with disputes arouse out of fulfillment of this agreement. If mediation does
 not work or either party is unwilling to mediate, any party could bring up
 lawsuit to local court.

 
	
  

 
	
 12.

 	
 Applicable Law

 
	
  

 	
  

 
	
 This agreement shall be governed by Law of
 People’s Republic of China.

 
	
  

 
	
 13.

 	
 Others

 
	
  

 	
  

 
	
 The promise from Party B specified in this
 agreement shall be the precondition which Party A is willing to employ Party
 B. Party B accepts employment from Party A and executes Labor Contract which
 shall be deemed voluntarily binding to promises aforesaid.

 
	
  

 	
  

 
	
 Both parties certify that this agreement,
 to the best knowledge, shall be executed.

 
	
  

 
	
 This agreement shall be made out in
 duplicate. Party B shall be held one copy and go through related matters
 pursuant to related rules and regulations. Party A should hand over one copy
 to Party B and assist in Party B going through related acceptance matters;
 otherwise, Party A shall be borne related legal liabilities.

 
	
  

 
	
 Party A:

 
	
  

 
	
 (Seal)

 
	
  

 	
  

 
	
 Date

 
	
  

 
	
 Party B:

 
	
  

 	
  

 
	
 (Seal)

 
	
  

 
	
 Date

 	
  

 

4MTI MICROFUEL CELLS INC.

SECURED CONVERTIBLE PROMISSORY
NOTE
NEGOTIATED CONVERSION AGREEMENT 

     This
Secured Convertible Promissory Note Negotiated Conversion Agreement (this
“Agreement”) is made as of December 9, 2009 (the “Effective Date”) by and among MTI
MicroFuel Cells Inc., a Delaware corporation (the “Company”) and each of the “Purchasers”
listed on Exhibit A attached to this Agreement (each a “Purchaser” and together the
“Purchasers”), and effects the Negotiated Conversion pursuant to Section 2(a)(ii) of
those certain Secured Convertible Promissory Notes, as amended (the
“Notes”),
issued pursuant to that certain Convertible Note and Warrant Purchase Agreement,
dated as of September 18, 2008 and amended February 20, 2009 and April 15, 2009
(the “Purchase Agreement”) between the Company and the Purchasers.

     WHEREAS, the Company has issued Notes
in the aggregate principal amount of $3,556,866, and warrants exercisable for
equity securities of the Company (the “Warrants”), to the Purchasers pursuant
to the Purchase Agreement, which Notes are secured by all of the assets of the
Company in accordance with the provisions of that certain Security Agreement,
dated as of September 18, 2008 and amended February 20, 2009 and April 15, 2009
(the “Security Agreement”) between the Company and the Purchasers;

     WHEREAS, pursuant to Section 2(a)(ii)
of the Notes, all principal and accrued interest outstanding under all of the
Notes shall be converted into equity securities of the Company (“Equity Securities”) based upon a Company
valuation and on such terms to be agreed upon by the Company and the holders of a
majority in interest of the Notes within thirty (30) days following the date
upon which the aggregate principal amount under all the Notes equals or exceeds
$3,500,000, which valuation and terms shall be negotiated in good faith by the
Company and a majority in interest of the Notes (a “Negotiated Conversion”); 

     WHEREAS, the Company and the
Purchasers have agreed upon the terms of the Negotiated Conversion pursuant to
which all principal and accrued interest held by each Purchaser under the
Note(s) held thereby shall be converted into a number of shares of Common Stock
of the Company calculated as follows (the “Negotiated Conversion Calculation”):

	X	   =
        	     	Y	 
	  			Negotiated
      Conversion Price	 

	     	Where:  	  
		  	
      X = the number of shares of
      Common Stock issuable upon conversion of principal and accrued interest outstanding under the Note(s) held by a Purchaser,
      rounded down to the nearest whole share, and with
      each Purchaser waiving cash payment with respect to unissued fractional shares (not to exceed $0.070)
  

		   
		  	Y=the
      aggregate principal and accrued interest outstanding under the Note(s)
      held by a Purchaser 
		   
		  	Negotiated Conversion Price=A/B, rounded to the nearest 1/100 of a
      cent ($0.001)

1 

	                 
    	
      A=$4,644,989 (the deemed
      valuation of the Company, calculated as approximately 75% of the deemed
      valuation of Mechanical Technology Incorporated (“MTI”), based on MTI’s 30
      day average trading price, as of the close of trading on December 4,
      2009)

		    
		
      B=65,558,616 (the number of issued and outstanding shares in the
      Company)  

     NOW,
THEREFORE, in consideration of the mutual
promises contained herein and other good and valuable consideration, receipt of
which is hereby acknowledged, the parties to Agreement agree as follows:

     1. Consummation of
Negotiated Conversion.

          a. Immediately upon the execution of this Agreement by the Company and
Purchasers holding a majority in interest of the Notes, the Negotiated
Conversion of all the outstanding principal and accrued interest under the Notes
shall be consummated in accordance with the terms of the Notes and the
Negotiated Conversion Calculation set forth above, and the Company shall issue
to the Purchasers such number of shares of the Company’s Common Stock as set
forth on Exhibit A attached hereto in full satisfaction of all principal and
accrued interest outstanding under the Notes. 

          b. Upon consummation of the Negotiated Conversion, all Notes shall be
satisfied in full and each Purchaser shall surrender all Notes held thereby,
duly endorsed, at the principal offices of the Company as required pursuant to
Section 2(b) of the Notes. 

          c. As soon as practicable following surrender of a Purchaser’s Note(s), the
Company shall issue and deliver to such Purchaser a certificate or certificates
for the number of shares to which such Purchaser is entitled upon the Negotiated
Conversion. 

          d. Upon consummation of the Negotiated Conversion of the Notes, the Company
will be forever released from all its obligations and liabilities under the
Notes, the Purchase Agreement and the Security Agreement. 

     2. Termination of Security
Interest. Immediately upon the consummation of the Negotiated Conversion, the security interest granted under the Security
Agreement shall terminate and all rights to the Collateral (as defined therein)
shall revert to the Company, and each Purchaser agrees to authenticate and
deliver to the Company such documents as the Company may reasonably request to
evidence such termination. 

     3.
Purchaser
Warrants. Upon consummation of the Negotiated Conversion and in accordance with
Section 1 of the Warrants, the Warrant(s) issued to each Purchaser under the
Purchase Agreement shall be exercisable for up to the number of shares of
Company Common Stock equal to (x) 10% of such Purchaser’s aggregate original
principal amount of the Note(s) issued thereto, divided by (y) the Negotiated
Conversion Price, rounded down to the nearest whole share, at a per share
purchase price equal to the Negotiated Conversion Price per share rounded to the
nearest 1/100 of a cent ($0.001), as set forth on Exhibit A hereto. 

     4.
Company Stockholder Warrants; Waiver of
Adjustment and Notice.
The Company and each of the Purchasers
further agree and acknowledge that, as an incentive for the Company to agree to
the terms of the Negotiated Conversion set forth herein, the Company shall issue
to each current Company stockholder (including MTI), without consideration and
immediately prior to the consummation of the Negotiated Conversion, a warrant
(“Company Warrant”) exercisable after one (1) year for up to 50% of the aggregate number
of shares of Common Stock each such Company stockholder currently holds in the
Company, at $0.070 per share and with a term of seven (7) years, in
substantially the form attached hereto as Exhibit
B. Each Purchaser hereby waives (i) any
adjustments to the number of shares issuable upon exercise of, or exercise price
of, the Warrants held thereby in connection with the issuance of the Company
Warrants, and (ii) any notice requirements under the Warrants with respect to
the issuance of the Company Warrants.

2 

     5. Reattribution of
Company Tax Attributes to MTI. The
Purchasers agree that MTI may, in its sole discretion, for federal (and any
pertinent state) income tax purposes, elect to reattribute from the Company to
MTI the maximum amount of the Company's tax attributes (including net operating
loss carryovers) permitted by Section 1.1502-36(d) of the Treasury Regulations.

     6.
Miscellaneous.

          (a) Governing
Law. This Agreement and all acts and transactions pursuant hereto and the
rights and obligations of the parties hereto shall be governed, construed and
interpreted in accordance with the laws of the State of Delaware, without giving
effect to principles of conflicts of law.

          (b) Counterparts. This Agreement may be executed in two or more counterparts
and by facsimile, each of which shall be deemed an original and all of which
together shall constitute one instrument. 

          (c) Entire
Agreement. This Agreement constitutes the entire agreement between the parties
hereto pertaining to the subject matters hereof and thereof, respectively, and
any and all other written or oral agreements existing between the parties hereto
are expressly canceled. 

[Signature Pages
Follow]

3 

      The
parties have executed this Secured Convertible Promissory Note Negotiated
Conversion Agreement as of the Effective Date.

	COMPANY:  
	 
	MTI MICROFUEL CELLS INC.  
	 
	/s/ PENG K. LIM  	 
	Peng
      K. Lim, Chief Executive Officer  
	 
	PURCHASERS:  
	 
	MECHANICAL TECHNOLOGY INCORPORATED  
	 
	/s/ PENG K. LIM  	 
	Peng
      K. Lim, Chief Executive Officer  
	   
	WALTER L. ROBB  
	 
	/s/ WALTER L. ROBB  	 
	Walter L. Robb  
	  
	COUNTER POINT VENTURES FUND II, LP  
	 
	/s/ WALTER L. ROBB  	 
	Walter L. Robb, General Partner  
	   
	PENG K. LIM   
	 
	/s/ PENG K. LIM  	 
	Signatory Name  
	   
	JAMES K. PRUEITT  
	 
	/s/ JAMES K. PRUEITT  	 
	Signatory Name  
	  
	LISA STERNLICHT  
	 
	/s/ LISA STERNLICHT  	 
	Signatory Name  

4

EXHIBIT A 

NEGOTIATED
CONVERSION 

	Name and
      Address of Purchaser	Aggregate
      Principal and 	Number of
      Shares of	Number of Shares of
		Accrued Interest
      Under 	Company Common
      Stock	Company Common
      Stock
		All Notes Held By
    	Issuable Upon
      Negotiated	Issuable Upon
      Exercise of
		Purchaser* 	Conversion	Warrants
	 	  	 	 
	Dr. Walter L. Robb,
      General Partner	$562,083	8,029,761	50,000
	c/o Vantage
      Management, Inc.			
	3000 Troy
      Schenectady Road			
	Facsimile: (518)
      782-0030			
	 	 	 	 
	Counter Point
      Ventures Fund II, LP	$2,451,422	35,020,317	225,000
	Dr. Walter L. Robb,
      General Partner			
	c/o Vantage
      Management, Inc.			
	3000 Troy
      Schenectady Road			
	Facsimile: (518)
      782-0030			
	 	 	 	 
	Mechanical
      Technology Incorporated	$786,917	11,241,666	70,000
	431 New Karner
      Road			
	Albany, NY
      12205			
	 	 	 	 
	Peng K.
      Lim  	$52,749**	753,558	5,275
	c/o Mechanical
      Technology Inc.			
	431 New Karner
      Road			
	Albany, NY
      12205			
	 	 	 	 
	James K.
      Prueitt	$4,116**	58,806	412
	c/o Mechanical
      Technology Inc.			
	431 New Karner
      Road			
	Albany, NY
      12205			
	 	 	 	 
	Lisa
      Sternlicht	$53,222	760,317	5,000
	 	 	 	 
	 	 	 	 
	TOTAL:	$3,910,510
      	55,864,425
      	355,687
      

    
*Interest accrued through December 8, 2009. 
     **Represents Deferred Salary
converted into Note principal, and accrued interest thereon, net of
taxes.

EXHIBIT B 

FORM OF COMPANY
WARRANT

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