Document:

Unassociated Document

    CONTRATO
      DE TRABAJO SUJETO A MODALIDAD POR INICIO DE NUEVA ACTIVIDAD

    

    Conste
      por el presente documento, el Contrato de Trabajo Sujeto a Modalidad por
      Incremento o Inicio de Nueva Actividad que celebran, de una parte, STRATOS
      DEL PERU S.A.C.,
      identificada con R.U.C. No 20515769774, con domicilio real en [REDACTADO],
      debidamente representada por su Gerente General señor Carlos Antonio Salas
      Vinatea, identificado con D.N.I. No [REDACTADO]
      y por su
      Gerente Financiero señor Julio Cesar Antonio Alonso Lindley, identificado con
      D.N.I. N° 40401999 que en adelante se denominará EL
      EMPLEADOR;
      y, de
      la otra parte, Julio
      César Antonio Alonso Lindley,
      identificado con D.N.I. No [REDACTADO]
      con
      domicilio en [REDACTADO]
      a quien
      en adelante se denominará EL
      TRABAJADOR;
      en los
      términos y condiciones siguientes:

    

    PRIMERO:
      ANTECEDENTES 

    

    EL
      EMPLEADOR
      es una
      es una sociedad anónima debidamente constituida bajo las leyes de la República
      del Perú, que se dedica, entre otras actividades, a la compra, venta,
      producción, distribución, comercialización, transporte, almacenamiento, mezcla,
      exportación e importación de todo tipo de productos derivados de hidrocarburos y
      biocombustibles, sean estos sólidos, líquidos o gaseosos, incluyendo sin que sea
      limitativo, sino meramente enunciativo: gasolinas, lubricantes, solventes,
      combustibles industriales, combustibles marítimos, combustibles de aviación, y
      en general de todo tipo de productos derivados de hidrocarburos, sin restricción
      ni limitación alguna. Habiendo dado inicio a su actividad empresarial el 5 de
      Noviembre de 2007, requiere de un trabajador profesional capacitado para
      desempeñarse en el cargo de Gerente de Finanzas.

    

    EL
      TRABAJADOR es
      un
      profesional que cuenta con la capacidad y experiencia requerida para la
      prestación de los servicios materia del presente Contrato y declara estar
      calificado para el puesto ofrecido, asumiendo las obligaciones y
      responsabilidades propias de acuerdo a las funciones señaladas en el Manual de
      Funciones de Stratos Perú S.A.C., del cargo asignado. EL
      TRABAJADOR declara
      conocer dichas obligaciones, comprometiéndose a cumplir con ellas.

    

    SEGUNDO:
      OBJETO
      DEL CONTRATO

    

    Para
      la
      cobertura de las labores mencionadas en el punto anterior, EL
      EMPLEADOR
      contrata
      a EL
      TRABAJADOR a
      partir
      del 05 de Noviembre 2007 hasta 04 de Noviembre de 2008 para que labore en
      calidad de empleado, ocupando el puesto de trabajo de Gerente de Finanzas,
      cubriendo los servicios descritos en el punto anterior. 

    

    El
      presente contrato no implica pacto de labor fija ni de ubicación geográfica
      fija, de tal manera que EL
      EMPLEADOR está
      facultado a asignar y reasignar las funciones y/o los cargos de manera
      razonable, en función a la capacidad y aptitud de EL
      TRABAJADOR
      y a las necesidades y requerimientos de EL
      EMPLEADOR.
      Dichas variaciones no implican menoscabo de categoría y/o remuneración, salvo
      acuerdo entre las partes.

    

    Asimismo,
      y de acuerdo a lo pactado anteriormente, EL
      EMPLEADOR podrá
      destacar a EL
      TRABAJADOR
      a cualquier otro lugar dentro de la República de Perú donde
EL
      EMPLEADOR
      realice actividades, para el desempeño de las labores que se le
      asignen.

    

    TERCERO:
      CALIFICACIÓN
      DEL CARGO

    

    EL
      TRABAJADOR, en
      su
      condición de Gerente de Finanzas poseerá funciones de administración y control
      y, de su actividad y grado de responsabilidad dependerá el resultado de la
      actividad empresarial de EL
      EMPLEADOR.
      En esa
      medida, EL
      EMPLEADOR
      califica
      el puesto de trabajo de EL
      TRABAJADOR como
      de
      dirección, en aplicación de los artículos 43 del Decreto Supremo N° 003-97-TR y
      59 del Decreto Supremo N° 001-96-TR. Esta calificación se consignará en las
      boletas de pago y libro de planillas respectivos.

    

    CUARTO:
      REMUNERACIÓN

    

    En
      el
      desarrollo de la relación laboral, EL
      EMPLEADOR,
      pagará
a EL
      TRABAJADOR
      una
      remuneración mensual ascendente a S/. 17,100.00 (Diecisiete Mil Cien y 00/100
      Nuevos Soles) por todo concepto.

    

    La
      remuneración podrá ser pagada en moneda nacional de acuerdo al tipo de cambio
      venta publicado por la Superintendencia de Banca y Seguros el día del pago.
      Asimismo, será abonada el último día hábil de cada mes.

    

    El
      importe por concepto de remuneración será abonado en la cuenta bancaria que
EL
      TRABAJADOR
      determine.

    

    Asimismo,
      EL
      EMPLEADOR
      proporcionará a EL
      TRABAJADOR
      los
      materiales y condiciones de trabajo necesarios para la adecuada prestación de
      sus labores, y le otorgará los beneficios que por ley le
      correspondan.

     

    QUINTO:
      BENEFICIOS ADICIONALES

     

    EL
      EMPLEADOR contrata
      a favor de EL
      TRABAJADOR, esposa,
      hijos, padres y hermana, un
      seguro
      médico familiar, asumiendo el costo de la prima correspondiente.

    

    SEXTO:
      OBLIGACIONES
      DEL TRABAJADOR

    

    En
      el
      desarrollo de la relación laboral, EL
      TRABAJADOR:

    

    
      	
              a)

            	
              Se
                compromete a cumplir sus obligaciones con lealtad y eficiencia, aplicando
                para tal fin toda su experiencia y capacidad, y velando por los intereses
                de EL
                EMPLEADOR.
                Asimismo, deberá ejercer las funciones propias de su cargo con la mayor
                diligencia y responsabilidad.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              b)

            	
              Se
                compromete, igualmente, a mantener en secreto toda información que llegue
                a su conocimiento en relación a los negocios de EL
                EMPLEADOR,
                sus asociados y/o clientes. Esta obligación subsistirá aun después de
                terminada la relación laboral y su incumplimiento genera la
                correspondiente responsabilidad por daños y perjuicios, sin desmedro de la
                persecución penal por el delito previsto en el artículo 165 del Código
                Penal.

            

    

    

    
      	
              c)

            	
              En
                virtud del presente contrato, EL
                TRABAJADOR tendrá
                acceso a información confidencial, la misma que es propiedad de
                EL
                EMPLEADOR.
                Del mismo modo, es obligación de EL
                TRABAJADOR
                informar a EL
                EMPLEADOR de
                todo aquello que constituya trabajo fuera de las horas de trabajo,
                siempre
                que se refiera a la actividad u operación de EL
                EMPLEADOR,
                incluyendo descubrimientos o inventos.

            

    

    

    EL
      EMPLEADOR tendrá
      derecho a la obtención de los beneficios de toda patente, entre otros,
      resultantes del desempeño de EL
      TRABAJADOR.
      

    

    Como
      consecuencia del compromiso de confidencialidad, EL
      TRABAJADOR tiene
      la
      obligación de guardar total y absoluta reserva, hasta después de terminado su
      vínculo laboral, sobre todo tipo de información relacionada con las actividades
      de EL
      EMPLEADOR a
      la que
      hubiera tenido acceso por efecto de este contrato, quedando prohibido de
      utilizar dicha información y conocimientos para sí o para terceros, durante el
      referido plazo.

    

    El
      incumplimiento de esta obligación generará, además de las sanciones laborales y
      penales correspondientes, el pago de la indemnización por los daños y perjuicios
      ocasionados a EL
      EMPLEADOR.

    

    
      	
              d)

            	
              No
                se encontrará sujeto a la jornada laboral vigente en la empresa al tener
                la condición de un trabajador de dirección, tal y como lo establece el
                artículo 5° del Texto Único Ordenado de la Ley de Jornada de Trabajo,
                Horario y Trabajo en Sobretiempo, D.S. N° 007-2002-TR, concordante con el
                artículo 10° de su Reglamento.

            

    

    

    En
      ese
      sentido, se encontrará exento de registrar su asistencia al centro de trabajo,
      no teniendo derecho al cobro de horas extras. 

    

    
      	
              e)

            	
              Asume
                el compromiso de prestar los servicios materia del presente contrato
                con
                carácter de exclusividad.

            

    

    

    
      	
              f)

            	
              Mantendrá
                confidencialidad absoluta durante y después de la vigencia de este
                contrato respecto, de las informaciones y documentos proporcionados
                por
                EL
                EMPLEADOR o,
                que le hayan sido proporcionado por los clientes de éste para el
                desarrollo de sus servicios, así como todo bien que sea resultado de sus
                servicios. Asimismo, la confidencialidad resultará igualmente de
                aplicación en lo que se refiere a cualquier iniciativa o proyecto dirigido
                a la captación de nuevos clientes. 

            

    

    

    Asimismo,
      queda prohibida la cesión, suministro o entrega de cualquier información sobre
      el negocio de EL
      EMPLEADOR a
      un
      tercero.

    

    
      	
              g)

            	
              En
                relación con los medios de trabajo proporcionados por EL
                EMPLEADOR,
                en especial medios informáticos y medios telemáticos, reconoce y admite
                expresamente que son propiedad de EL
                EMPLEADOR
                y
                han de ser utilizadas para fines profesionales exclusivamente, por
                lo que
                EL
                EMPLEADOR
                sin necesidad de consulta o requerimiento alguno, tendrá acceso en todo
                momento a toda la información que contengan las
                computadoras.

            

    

    

    SEPTIMO:
      DECLARACIÓN DEL TRABAJADOR

    

    EL
      TRABAJADOR declara
      que entiende la naturaleza temporal de su prestación de servicios, la cual se
      relaciona con el inicio de actividades de EL
      EMPLEADOR,
      y se
      rige por la normatividad aplicable a los contratos sujetos a modalidad prevista
      en el Título II del Texto Único Ordenado del Decreto Legislativo N° 728, Ley de
      Productividad y Competitividad Laboral, aprobado mediante Decreto Supremo N°
003-97-TR.

    

    OCTAVO:
      APLICACIÓN SUPLETORIA

    

    En
      todo
      lo no previsto por el presente Contrato de Trabajo Sujeto a Modalidad por inicio
      de actividad, se aplicará lo dispuesto en la legislación laboral
      vigente.

    

    Ambas
      partes suscriben el presente documento en triplicado y en señal de conformidad
      en Lima a los 05 días del mes de Noviembre de 2007.

    

    FIXED-
      TERM EMPLOYMENT CONTRACT

    

    Witness
      by this document the Fixed-Term Employment Contract by beginning of activities,
      entered into by STRATOS DEL PERU S.A.C., with RUC No 20515769774, with address
      for the purposes hereof at [REDACTED], duly represented by its General Manager,
      Mr. Carlos Antonio Salas Vinatea identified with National Identity Card N°
[REDACTED], hereinafter called the “EMPLOYER”, and Julio César Antonio Alonso
      Lindley, identified with National Identity Card N° [REDACTED] with address at
      [REDACTED], hereinafter the “EMPLOYEE”, on the following terms and
      conditions:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    FIRST:
      BACKGROUND

    

    The
      EMPLOYER
      is a
      stock company duly incorporated under the laws of the Republic of Peru, which
      is
      dedicated to, among others, purchase, sale, production, distribution,
      commercialization, transport, storage, mix, export and import of all type of
      hydrocarbon-related and biofuel products, whether these are solid, liquid or
      gaseous, including, but not limited to: Gasolines, lubricants, solvents,
      industrial fuels, maritime fuels, aviation fuels, and generally all kind of
      hydrocarbon-related products, without any restriction or limitation whatsoever,
      As the company began its activities on November 5th
      2007, it
      needs a professional worker trained to perform in the position of Financial
      Manager.

    

    THE
      EMPLOYEE is
      a
      professional who has the ability and experience required to render the services
      subject matter of this Contract herein and states that he is qualified for
      the
      offered position, undertaking the duties and responsibilities of the position
      assigned under the Manual of Functions of Stratos Perú S.A.C. THE
      EMPLOYEE states
      that he knows such duties, agreeing to comply with them.

    

    SECOND:
      MATTER OF CONTRACT

    

    By
      this
      document, the EMPLOYER
      hereby
      engages the services of the EMPLOYEE,
      from
      November 5th,
      2007
      until November 4th,
      2008,
      taking into account the contents of the preceding articles. THE
      EMPLOYEE will
      occupy the position of Financial Manager.

    

    This
      agreement does not subjects THE
      EMPLOYEE to
      a fix
      labor or a determined location, due to the fact that THE
      EMPLOYER is
      free
      to assign and reassign THE
      EMPLOYEE’s function
      under conditions of reasonability in relation to the capacity and attitude
      of
THE
      EMPLOYEE
      and the
      necessities and requirements of THE
      EMPLOYER.
      Such
      variations does not involve damage of category and/or remuneration, except
      the
      parties agree in contrary.

    

    Likewise,
      and according to the established above, THE
      EMPLOYER
      shall
      send THE
      EMPLOYEE
      to any
      other location in the Republic of Peru where THE
      EMPLOYER
      develops
      its activities, to carry out the labors assigned.

    

    THIRD:
      NATURE OF EMPLOYEE’S POSITION

    

    THE
      EMPLOYEE as
      Financial Manager qualifies as a managing employee, due to his administrative
      functions and his condition of the employer’s representative. In this sense, the
EMPLOYER
      qualifies the employment of THE
      EMPLOYEE
      as
      directorship, in accordance with articles 43 of Supreme Decree N° 003-97-TR and
      59 of Supreme Decree N° 001-96-TR. This qualification will be detailed in the
      company’s payroll and THE
      EMPLOYEE’S
      payment
      slips.

    

    FOURTH:
      REMUNERATION

    

    The
      EMPLOYER
      will pay
      to the EMPLOYEE
      a brut
      monthly remuneration of S/. 17,100 (Seventeen Thousand and One Hundred Nuevos
      Soles). 

    

    The
      remuneration could be paid in local currency according to the sell exchange
      rate
      published by the Superintendence of Banking and Insurances, corresponding to
      the
      payday. The remuneration will be paid on the last business day of each
      month.

    

    The
      remuneration will be paid on the bank account determined by the EMPLOYEE.
      

    

    Likewise,
      THE
      EMPLOYER
      will
      provide all the necessary working conditions to THE
      EMPLOYEE
      for an
      accurate grant of its labor and shall grant the benefits established by
      law.

     

    FIFTH:
      ADITIONAL BENEFITS

    

    THE
      EMPLOYER
      shall
      contract in favor of THE
      EMPLOYEE,
      wife,
      sons, daughters, parents and sister, a family medical insurance, assuming the
      required premium. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SIXTH:
      EMPLOYEE’S DUTIES

    

    THE
      EMPLOYEE has
      the
      following duties:

    

    
      	 	
              a)

            	
              THE
                EMPLOYEE undertakes
                to comply with his duties with loyalty and efficiency, applying of
                this
                purpose all his experience and ability, watching over the interests
                of
                THE
                EMPLOYER.
                Also, he must exercise the functions of his position with the outmost
                diligence and responsibility.

            

    

    

    
      	 	
              b)

            	
              THE
                EMPLOYEE also
                undertakes to keep secret all information he becomes aware of related
                to
                the business of THE
                EMPLOYER,
                its associates and/or clients. This obligation will persist even
                after the
                labor relationship is terminated, and its noncompliance will generate
                the
                corresponding liability by damages, without prejudice of the criminal
                prosecution.

            

    

    

    
      	 	
              c)

            	
              By
                virtue of this contract, THE
                EMPLOYEE will
                have access to confidential information, which is the property of
                THE
                EMPLOYEER.
                In
                the same way, it is the THE
                EMPLOYEE’S duty
                to inform THE
                EMPLOYER of
                everything that constitutes work outside working hours, provided
                that it
                is referred to THE
                EMPLOYER’S
                activity or operation, including discoveries or inventions.
                

            

    

    

    THE
      EMPLOYER will
      have
      the right to obtain the benefits of every patent, among others, resulting from
      THE
      EMPLOYEE’S
      performance.

    

    As
      consequence of the confidentiality commitment, THE
      EMPLOYEE
      has the
      duty to keep total and absolute reserve, even after the termination of this
      contract, over any type of information related to THE
      EMPLOYER’S activities
      he had access by virtue of this contract, being forbidden of using such
      information and knowledge for himself or for third parties, during the
      aforementioned term.

    

    Noncompliance
      with this duty will generate, besides the corresponding labor and criminal
      sanctions, the payment of compensation by damages caused to THE
      EMPLOYER.

    

    
      
        	
              	d)	
                Given
                  the
                  characteristics and the nature of the position being filled by
                  THE
                  EMPLOYEE,
                  as a managing and directive employee, according to article 5° of the
                  Consolidated Text of the Working Period Law, Schedule and Overtime
                  Work
                  Supreme Decree N° 007-2002-TR, in accordance with article 10° of its
                  Regulations.

              

      

    

    

    In
      such
      sense, he will not be subject to register his assistance at the company, and
      will not be entitled to overtime payments.

    

    
      	 	
              e)

            	
              THE
                EMPLOYEE
                will render his services exclusively for THE
                EMPLOYER.

            

    

    

    
      	 	
              f)

            	
              Maintain
                confidential, during and after the term of this contract, all the
                information and documents provided by THE
                EMPLOYER
                or, by its clients, for the development of the services described
                in this
                contract, as well as from any good arising to such services. Likewise,
                the
                confidentiality shall be applicable in everything and anything related
                to
                any initiative or project required to capture new
                clients.

            

    

    

    Will
      not
      provide information from THE
      EMPLOYER’S
      business
      to third parties. 

    

    
      	 	
              g)

            	
              Knows
                that all the facilities given by THE
                EMPLOYER to
                render his services belong to the company and must only be used for
                labor
                purposes. Therefore, THE
                EMPLOYER
                has the right to enter into all the information contained in its
                computers.

            

    

    

    SEVENTH:
      EMPLOYEE’S DECLARATION

    

    The
      EMPLOYEE
      expressly declares that understands the temporary nature of his rendering of
      services, which is related to the beginning of THE
      EMPLOYER’S activities
      Consequently it is ruled by the articles of fixed-term employment contract
      from
      II Title of the consolidated Text of Legislative Decree No 728, approved by
      Supreme Decree No 003-97-TR - Law on Labor Productivity and
      Competitiveness

    

    EIGHTH:
      LAW APPLICABLE

    

    In
      everything not specifically provided in this contract herein, will be
      complementarily applied the rules that govern the labor regime of the private
      activity.

    

    The
      parties sign this agreement in three copies as a sign of conformity in Lima
      on
      the 5th
      day of
      the month of November, 2007.

    

    
      	
              /s/
                Carlos Antonio Salas Vinatea

            	 	
              /s/
                Julio César Antonio Alonso Lindley

            
	
              THE
                EMPLOYER

            	 	
              THE
                EMPLOYEE

            
	
              (EL
                EMPLEADOR)

            	 	
              (EL
                TRABAJADOR)STOCK
        PURCHASE AGREEMENT

      

      THIS
        STOCK PURCHASE AGREEMENT
        (this
“Agreement”)
        is
        entered into as of August 19, 2008 among Solar Enertech Corp. (the “Company”)
        and
        China New EnerTech, Inc., a company incorporated in the Cayman Islands (the
        “Cayman
        Co.”),
        and
        solely with respect to Section 4.8, Solar Enertech (Shanghai) Co., Ltd.,
        and
        solely with respect Sections 4.9 through 4.12 hereof, Leo S. Young.

       

      RECITALS

      

      A. The
        Company and Solar Enertech (Shanghai) Co., Ltd. (formerly Infotech (Shanghai)
        Solar Technologies Ltd.) (“Agent”)
        are
        party to an Agency Agreement dated effective as of the 10th day of April,
        2006
        (the “Agency
        Agreement”)
        pursuant to which Agent performs certain services, including securing factory
        space, employees, inventory, equipment and other goods or services, for the
        benefit of the Company.

      

      B. Due
        to
        the agency relationship between the Company and Agent, the Company consolidates
        the financial statements of Agent with its financial statements pursuant
        to FASB
        Interpretation No. 46(R).

      

      C. Cayman
        Co. is the parent holding company owning all of the outstanding ownership
        interest in InfoTech Hong Kong New Energy Technologies, Limited (“HK
        Co.”),
        which
        owns all of the outstanding ownership interest in Agent.

      

      D. The
        Company desires to acquire Agent and any related operations of HK Co. for
        consolidation into its business.

      

      

      AGREEMENT

      

      In
        consideration of the mutual covenants and conditions contained herein, it
        is
        hereby agreed by and among the parties hereto as follows:

       

      SECTION 1

      PURCHASE
        AND CLOSING

      

      1.1 Purchase.
        In
        exchange for an aggregate purchase price of one dollar (USD $1.00), upon
        the
        Closing (as defined), Cayman Co. sells all of its right, title and interest
        in
        HK Co. to the Company.

       

      1.2 Closing.
        The
        closing of the sale of all of the outstanding shares of HK Co. by Cayman
        Co. to
        the Company is effective upon the exchange of the closing deliverables set
        forth
        in Section 1.3 below. The closing referred to in this Section 1.2 shall be
        hereinafter referred to as the “Closing”.

       

      1.3 Closing
        Deliverables.

       

      
        
          (a)
            At
            the
            Closing, the Company shall deliver to the Cayman Co. the aggregate purchase
            price of one dollar (USD $1.00).

        

      

       

      (b) At
        the
        Closing, the Cayman Co. shall deliver to the Company the share certificate
        representing 10,000 shares of HK Co., constituting all of its outstanding
        shares.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION 2

      REPRESENTATIONS
        AND WARRANTIES OF THE COMPANY

       

      The
        Company hereby represents and warrants to Cayman Co. that the statements
        in the
        following paragraphs of this Section 2 are true and correct as of the date
        of
        this Agreement and as of the Closing:

       

      2.1 Authorization.
        All
        corporate action on the part of the Company, its directors and shareholders
        necessary for the authorization, execution, delivery and performance of this
        Agreement by the Company and the performance of the Company’s obligations
        hereunder has been taken.

       

      2.2 Corporate
        Power.
        The
        Company has all requisite corporate power necessary for the authorization,
        execution and delivery of this Agreement. This Agreement is the valid and
        binding obligations of the Company, enforceable in accordance with its terms,
        except as the same may be limited by bankruptcy, insolvency, reorganization,
        fraudulent conveyance, moratorium, usury and other laws of general application
        affecting the enforcement of creditors’ rights.

       

      SECTION 3

      REPRESENTATIONS
        AND WARRANTIES OF CAYMAN CO.

       

      Cayman
        Co. hereby represents and warrants to the Company that the statements in
        the
        following paragraphs of this Section 3 are true and correct as of the date
        of this Agreement and as of the Closing:

       

      3.1 Organization
        of the Cayman Co. and Affiliates

       

      (a) Cayman
        Co. is a corporation duly incorporated, validly existing and in good standing
        under the laws of the Cayman Islands. HK Co. is a corporation duly incorporated,
        validly existing and in good standing under the laws of Hong Kong. Agent
        Cayman
        is a corporation duly incorporated, validly existing and in good standing
        under
        the laws of the People’s Republic of China. Cayman Co., HK Co. and Agent are
        collectively referred to as the “Cayman
        Entities”.

       

      (b)
         The
        share
        capital of HK Co. is HKD$10,000.00, par value $1.00 per share, of which 10,000
        shares are issued and outstanding, all of which are held by Cayman Co. HK
        Co.
        owns all of the outstanding equity of Agent.

       

      (c) There
        are
        no agreements, arrangements, options, warrants, calls, rights or commitments
        of
        any character to which the Cayman Entities are a party relating to the issuance,
        sale, purchase or redemption of any common stock or other equity interest
        of HK
        Co. or Agent, whether on conversion of other securities or otherwise. None
        of
        the issued and outstanding equity interests of HK Co. or Agent have been
        issued
        in violation of, or is subject to, any preemptive or subscription rights.
        The
        Cayman Entities are not party to any stockholder or members agreement, voting
        trust agreement or any other similar contract, agreement, arrangement,
        commitment, plan or understanding restricting or otherwise relating to the
        voting, dividend, ownership or transfer rights of any common stock or other
        equity interest of HK Co. or Agent.

       

      3.2 Authorization.
        All
        corporate action on the part of Cayman Co., its directors and shareholders
        necessary for the authorization, execution, delivery and performance of this
        Agreement by Cayman Co. and the performance of its obligations hereunder
        has
        been taken prior to the date hereof.

       

      3.3 Corporate
        Power.
        Cayman
        Co. has all requisite corporate power necessary for the authorization, execution
        and delivery of this Agreement. This Agreement is the valid and binding
        obligations of Cayman Co., enforceable in accordance with its terms, except
        as
        the same may be limited by bankruptcy, insolvency, reorganization, fraudulent
        conveyance, moratorium, usury and other laws of general application affecting
        the enforcement of creditors’ rights.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      3.4 Ownership
        of the Business.
        Other
        than HK Co. or Agent, there are no other entities or business, including
        Infotech Essentials, Inc., owned directly or indirectly, in whole or in part,
        by
        Cayman Co. or its officers, directors or shareholders which are engaged in
        the
        business of manufacturing photovoltaic solar energy cells and solar applications
        or which utilize any equipment, intellectual property, inventory, employees
        or
        other resources or assets used in the business as conducted or currently
        proposed to be conducted by HK Co. or Agent. Cayman Co. has no assets or
        operations and its sole purpose has been to serve as a holding company for
        the
        HK Co. shares.

       

      3.5 Financial
        Statements.
        The
        Cayman Entities have provided to the Company all of their financial records
        since inception.

       

      3.6 No
        Undisclosed Liabilities.
        HK Co.
        and Agent are not subject to any liability (including, without limitation,
        unasserted claims, whether known or unknown), whether absolute, contingent,
        accrued or otherwise, which is not shown or which is in excess of amounts
        shown
        or reserved for in the financial records of the Cayman Entities other than
        in
        the ordinary course of business.

       

      3.7 Disclosure.
        No
        representation or warranty by Cayman Co. in this Agreement, when taken together,
        contains any untrue statement of a material fact or omits to state a material
        fact necessary to make the statements made herein and therein, in the light
        of
        the circumstances under which they were made, not misleading.

       

       

      SECTION
        4

      MISCELLANEOUS

       

      4.1 No
        Finders Fee.
        Each
        party represents that it neither is nor will be obligated for any finder’s or
        broker’s fee or commission in connection with this transaction.

       

      4.2 Governing
        Law.
        This
        Agreement shall be governed in all respects by the internal laws of the State
        of
        California, without reference to principles of conflict of laws or choice
        of
        law.

       

      4.3 Survival.
        The
        representations, warranties, covenants and agreements made herein shall survive
        the execution and delivery of this Agreement and the Closing.

       

      4.4 Successors
        and Assigns.
        Except
        as otherwise provided herein, the provisions hereof shall inure to the benefit
        of, and be binding upon, the successors, assigns, heirs, executors and
        administrators of the parties hereto.

       

      4.5 Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        enforceable against the parties actually executing such counterparts, and
        all of
        which together shall constitute one instrument.

       

      4.6 Severability.
        If one
        or more provisions of this Agreement are held to be unenforceable under
        applicable law, such provision(s) shall be excluded from this Agreement and
        the
        balance of the Agreement shall be interpreted as if such provision(s) were
        so
        excluded and shall be enforceable in accordance with its terms.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      4.7 Expenses.
        The
        Company shall bear all reasonable costs and expenses in connection with the
        negotiation, execution, delivery and performance of this Agreement.

       

      4.8 Termination
        of Agency Agreement.
        Pursuant to Section 4.02 of the Agency Agreement, the Company hereby terminates
        the Agency Agreement effective as of the Closing.

       

      4.9 Termination
        of Management Agreement.
        The
        Company and Mr. Young hereby agree to terminate that certain Management
        Agreement dated March 1, 2006, by and between the Company and Mr. Young
        effective as of the date the Closing.

       

      4.10 Executive
        Incentive, Change of Control Retention and Severance Agreement.
        The
        Company and Mr. Young hereby agree to enter into an Executive Incentive,
        Change
        of Control Retention and Severance Agreement effective as of the date the
        Closing in the form attached hereto as Exhibit
        A.

       

      4.11 Indemnification.
        The
        Company agrees to indemnify, defend and hold harmless Mr. Young up to an
        amount
        not to exceed US$1,000,000 for any liabilities he may incur as a result of
        actions relating to the grant of his original stock option from Ms. Blanchard
        for 36 million shares of common stock of the Company, his exercise of the
        option
        with respect to 5 million shares of common stock and his transfer of 5.75
        million shares of common stock to other members of Agent which he exercised
        on
        their behalf as nominee of such members. For purposes of clarity, the foregoing
        indemnity is not intended to reimburse Mr. Young for any taxes previously
        paid
        by Mr. Young as a result of the exercise of his original stock
        option.

       

      4.12 Legal
        Fees.
        The
        Company shall reimburse Mr. Young for his legal fees and reasonable other
        professional expenses incurred in connection with the transactions contemplated
        hereby, up to a maximium of US$5,000 in the aggregate.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Stock Exchange Agreement
        as of the date first set forth above.

       

      

      SOLAR
        ENERTECH CORP.

      

      

      By:
        /s/
        MING WAI ANTHEA CHUNG

      Name:
        Ming Wai Anthea Chung

      Title:
        Chief Financial Officer

      

      CHINA
        NEW
        ENERTECH, INC.

      

      By:
        /s/
        LEO S. YOUNG

      Name:
        

      Title:
        

      

      

      With
        respect to Section 4.8 only:

      

      SOLAR
        ENERTECH (SHANGHAI) CO., LTD.

      

      By:
        /s/
        LEO S. YOUNG

      Name:
        

      Title:
        

      

      

      With
        respect to Section 4.9 through 4.12 only:

      

      

      /s/
        LEO S. YOUNG

      LEO
        S.
        YOUNG

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      EXHIBIT
        A

      

      Executive
        Incentive, Change of Control Retention and Severance Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]