Document:

f1012gex10vi_chinaxing.htm

Exhibit 10.6

 

 

Option Agreement 

 

EXECUTION VERSION

 

Option Agreement

 

This Option Agreement (this “Agreement”) is entered into by and among Guangzhou Xingbang Information Consulting Co., Ltd. (“Guangzhou Xingbang”), Guangdong Xingbang Industry Information & Media Co., Ltd. (“Guangdong Xingbang”), and the undersigned shareholders of Guangdong Xingbang (collectively the “Shareholders”) as of May 13, 2011 in Guangzhou, the People’s Republic of China (the “PRC” or “China”). Guangzhou Xingbang, Guangdong Xingbang and the Shareholders are each referred to in this Agreement as a “Party” and collectively as the “Parties”.

 

RECITALS

 

a)    Guangzhou Xingbang, a company incorporated in the PRC as a wholly foreign-owned enterprise, has the expertise in consultancy of media operating, advertising, marketing and e-commerce.

 

b)     Guangdong Xingbang is a company incorporated in China, and is engaged in the business of media operation, advertising, industry research, marketing service, e-commerce (the “Business”). Guangzhou Xingbang and Guangdong Xingbang has entered into a Consulting Services Agreement to provide Guangdong Xingbang with various consulting services in connection with the Business.

 

c)    The Shareholders collectively holds 100% of the issued and outstanding equity interests of Guangdong Xingbang (collectively the “Equity Interest”).

 

d)    The Parties are entering into this Agreement in connection with the Consulting Services Agreement.

 

NOW, THEREFORE, the Parties to this Agreement hereby agree as follows:

 

1.           PURCHASE AND SALE OF EQUITY INTEREST

 

1.1   Grant of rights. The Shareholders hereby collectively and irrevocable grant to Guangzhou Xingbang or a designee of Guangzhou Xingbang (the “Designee”) an option to purchase at any time, to the extent permitted under PRC Law, all or a portion of the Equity Interest in accordance with such procedures as determined by Guangzhou Xingbang, at the price specified in Section 1.3 of this Agreement (the “Option”). No Option shall be granted to any party other than to Guangzhou Xingbang and/or a Designee. Guangdong Xingbang hereby agrees to the grant of the Option by the Shareholders to Guangzhou Xingbang and/or the Designee. As used herein, the Designee may be an individual person, a corporation, a joint venture, a partnership, an enterprise, a trust or an unincorporated organization.

 

1.2   Exercise of rights.  Subject to the requirements of applicable PRC laws and regulations, Guangzhou Xingbang and/or the Designee may exercise the Option at any time by issuing a written notice (the “Exercise Notice”) to one or more of the Shareholders and specifying the amount of the Equity Interest to be purchased from such Shareholder(s) and the manner of purchase.

 

  

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Option Agreement 

1.3   Purchase Price

 

1.3.1    The purchase price of the Equity Interest pursuant to an exercise of the Option shall be equal to the capital paid in by the Shareholders, adjusted pro rata for purchase of less than all of the Equity Interest, unless applicable PRC laws and regulations require an appraisal of the Equity Interest or stipulate other restrictions regarding the purchase price of the Equity Interest.

 

1.3.2    If the applicable PRC laws and regulations require an appraisal of the Equity Interest or stipulate other restrictions regarding the purchase price of the Equity Interest at the time Guangzhou Xingbang and/or the Designee exercises the Option, the Parties agree that the purchase price shall be set at the lowest price permissible under the applicable laws and regulations.

 

1.4   Transfer of Equity Interest. For each exercise of the Option under this Agreement, upon an Exercise Notice issued by Guangzhou Xingbang:

 

1.4.1    The Shareholders shall hold or cause to be held a meeting of shareholders of Guangdong Xingbang in order to adopt such resolutions as necessary in order to approve the transfer of the relevant Equity Interest (such Equity Interest is hereinafter referred to as the “Purchased Equity Interest”) to Guangzhou Xingbang and/or the Designee and each shall waive the respective right of first refusal;

 

1.4.2    The relevant Parties shall, enter into an Equity Interest Purchase Agreement, in a form reasonably acceptable to Guangzhou Xingbang, setting forth the terms and conditions for the sale and transfer of the Purchased Equity Interest;

 

1.4.3    The relevant Parties shall execute, without any Security Interest (as defined below), all other requisite contracts, agreements or documents, obtain all requisite approval and consent of the government, conduct all necessary actions, transfer the valid ownership of the Purchased Equity Interest to Guangzhou Xingbang and/or the Designee, and cause Guangzhou Xingbang and/or the Designee to be the registered owner of the Purchased Equity Interest. As used herein, the “Security Interest” means any mortgage, pledge, the right or interest of a third party, any purchase right of equity interest, right of acquisition, right of first refusal, right of set-off, ownership detainment or other security arrangements; however, such term shall not include any Security Interest created under that certain Equity Pledge Agreement dated as of May 13, 2011 by and among the Parties (the “Pledge Agreement”).

 

2.           REPRESENTATIONS RELATING TO EQUITY INTEREST

  

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Option Agreement 

2.1   Guangdong Xingbang’s representations. Guangdong Xingbang hereby represents and warrants as follows:

 

2.1.1    Without Guangzhou Xingbang’s prior written consent, the articles of association of Guangdong Xingbang (the “AOA”) shall not be supplemented, changed or renewed in any way, Guangdong Xingbang’s registered capital shall not be increased or decreased, and the structure of the registered capital shall not be changed in any form;

 

2.1.2     To maintain the corporate existence of Guangdong Xingbang and to prudently and effectively operate the Business in accordance with customary fiduciary standards applicable to management with respect to corporations and their shareholders;

 

2.1.3    Without Guangzhou Xingbang’s prior written consent, upon the execution of this Agreement, to not sell, transfer, mortgage, create pledges, liens, or any other encumbrance on or dispose, in any other form, any asset, legitimate or beneficial interest of the Business or income, or encumber or approve any encumbrance or imposition of any Security Interest on Guangdong Xingbang’s assets;

 

2.1.4    Without Guangzhou Xingbang’s prior written consent, not to issue or provide any guarantee or permit the existence of any debt, other than (i) such debt that may arise from Guangdong Xingbang’s normal or daily business (except for a loan); and (ii) such debt which has been disclosed to Guangzhou Xingbang before this Agreement;

 

2.1.5    To operate and conduct all business operations in the ordinary course of business, without damaging Guangdong Xingbang’s business or the value of its assets;

 

2.1.6     Without Guangzhou Xingbang’s prior written consent, not to enter into any material agreements, other than agreements entered into in the ordinary course of business (for the purpose of this paragraph, if any agreement for an amount in excess of One Hundred Thousand Renminbi (RMB 100,000) shall be deemed a material agreement);

 

2.1.7    Without Guangzhou Xingbang’s prior written consent, not to provide loan or credit to any other party or organization;

 

2.1.8    To provide Guangzhou Xingbang with all relevant documents relating to its business operations and finance at the request of Guangzhou Xingbang;

 

2.1.9    To purchase and maintain general property insurance of the type and amount comparable to those held by companies in the same industry, with similar business operations and assets as Guangdong Xingbang, from an insurance company approved by Guangzhou Xingbang;

 

2.1.10    Without Guangzhou Xingbang’s prior written consent, not to enter into any merger, cooperation, acquisition or investment;

  

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Option Agreement 

2.1.11    To notify Guangzhou Xingbang of the occurrence or the potential occurrence of any litigation, arbitration or administrative procedure relating to Guangdong Xingbang’s assets, business operations and/or income;

 

2.1.12    In order to guarantee the ownership of Guangdong Xingbang’s assets, to execute all requisite or relevant documents, take all requisite or relevant actions, and make and pursue all relevant claims;

 

2.1.13    Without Guangzhou Xingbang’s prior written notice, not to assign the Equity Interest in any form; however, Guangdong Xingbang shall distribute dividends to the Shareholders upon the request of Guangzhou Xingbang; and

 

2.1.14    In accordance with Guangzhou Xingbang’s request, to appoint any person designated by Guangzhou Xingbang to be a management member of Guangdong Xingbang.

 

2.2   Shareholders’ representations. The Shareholders hereby represent and warrant as follows:

 

2.2.1    Without Guangzhou Xingbang’s prior written consent, upon the execution of this Agreement, not to sell, transfer, mortgage, create pledges, liens, or any other encumbrance on or dispose in any other form any legitimate or beneficial interest of the Equity Interest, or to approve any Security Interest, except as created pursuant to the Pledge Agreement;

 

2.2.2    Without Guangzhou Xingbang’s prior written notice, not to adopt or support or execute any shareholders resolution at an meeting of the shareholders of Guangdong Xingbang that seeks to approve any sale, transfer, mortgage or disposal of any legitimate or beneficial interest of the Equity Interest, or to allow any attachment of Security Interests, except as created pursuant to the Pledge Agreement;

 

2.2.3    Without Guangzhou Xingbang’s prior written notice, not to agree or support or execute any shareholders resolution at any meeting of the shareholders of Guangdong Xingbang that seeks to approve Guangdong Xingbang’s merger, cooperation, acquisition or investment;

 

2.2.4    To notify Guangzhou Xingbang the occurrence or the potential occurrence of any litigation, arbitration or administrative procedure relevant to the Equity Interest;

 

2.2.5    To cause the board of directors Guangdong Xingbang to approve the transfer of the Purchased Equity Interest pursuant to this Agreement;

 

2.2.6    In order to maintain the ownership of Equity Interest, to execute all requisite or relevant documents, conduct all requisite or relevant actions, and make all requisite or relevant claims, or make all requisite or relevant defenses against all claims of compensation;

  

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Option Agreement 

2.2.7    Upon the request of Guangzhou Xingbang, to appoint any person designated by Guangzhou Xingbang to be a director of Guangdong Xingbang;

 

2.2.8    Without Guangzhou Xingbang’s prior written consent, not to dispose or cause the management of Guangdong Xingbang to dispose any asset of Guangdong Xingbang (other than in the ordinary course of business); and

 

2.2.9   To prudently comply with the provisions of this Agreement and any other agreements entered into with Guangzhou Xingbang and Guangdong Xingbang in connection therewith, and to perform all obligations under all such agreements, without taking any action or nonfeasance that may affect the validity and enforceability of such agreements.

 

3.           REPRESENTATIONS AND WARRANTIES

 

As of the execution date of this Agreement and on each transfer of the Purchased Equity Interest pursuant to an exercise of the Option, Guangdong Xingbang and the Shareholders hereby represent and warrant as follows:

 

3.1   Such Parties shall have the power and ability to enter into and deliver this Agreement and to perform their respective obligations thereunder, and at each transfer of Purchased Equity Interest, the relevant Equity Interest Purchase Agreement and to perform their obligations thereunder. Upon execution, this Agreement and each Equity Interest Purchase Agreement will constitute legal, valid and binding obligations and be fully enforceable in accordance with their terms.

 

3.2   The execution and performance of this Agreement and any Equity Interest Purchase Agreement shall not: (i) violate any relevant laws and regulations of the PRC; (ii) conflict with the Articles of Association or other organizational documents of Guangdong Xingbang; (iii) cause to breach any agreement or instrument or having any binding obligation on it, or constitute a breach under any agreement or instrument or having any binding obligation on it; (iv) breach relevant authorization of any consent or approval and/or any effective conditions; or (v) cause any authorized consent or approval to be suspended, removed, or cause other added conditions;

 

3.3   The Equity Interest is transferable in whole and in part, and neither Guangdong Xingbang nor the Shareholders have permitted or caused any Security Interest to be imposed upon the Equity Interest other than pursuant to the Pledge Agreement;

 

3.4   Guangdong Xingbang does not have any unpaid debt, other than (i) such debt that may arise during the ordinary course of business; and (ii) debt either disclosed to Guangzhou Xingbang before this Agreement or incurred pursuant to Guangzhou Xingbang’s written consent;

 

3.5   Guangdong Xingbang has complied with all applicable PRC laws and regulations in connection with this Agreement;

 

  

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Option Agreement 

3.6   There are no pending or ongoing litigation, arbitration or administrative procedures with respect to Guangdong Xingbang, its assets or the Equity Interest, and Guangdong Xingbang and the Shareholders have no knowledge of any pending or threatening claims to the best of their knowledge; and

 

3.7   The Shareholders own the Equity Interest free and clear of encumbrances of any kind, other than the Security Interest pursuant to the Pledge Agreement.

 

4.           ASSIGNMENT OF AGREEMENT

 

4.1   Guangdong Xingbang and the Shareholders shall not transfer their rights and obligations under this Agreement to any third party without Guangzhou Xingbang’s prior written consent.

 

4.2   Guangdong Xingbang and the Shareholders hereby agrees that Guangzhou Xingbang shall be entitled to transfer all of its rights and obligations under this Agreement to any third party, and such transfer shall only be subject to a written notice of Guangzhou Xingbang to Guangdong Xingbang and the Shareholders without any further consent from Guangdong Xingbang or the Shareholders.

 

5.           EFFECTIVE DATE AND TERM

 

5.1   This Agreement shall be effective as of the date first set forth above.

 

5.2   The term of this Agreement shall commence from the effective date and shall last for the maximum period of time permitted by law unless it is early terminated in accordance with this Agreement.

 

6.           APPLICABLE LAW AND DISPUTE RESOLUTION

 

6.1   Applicable law. The execution, validity, interpretation and performance of this Agreement and the dispute resolution under this Agreement shall be governed by the laws of the PRC.

 

6.2   Dispute resolution. The Parties agree that in the event a dispute shall arise from this Agreement, the Parties shall settle their dispute through amicable negotiations and/or arbitration in accordance with this Clause 10. If the Parties fail to reach a settlement within thirty (30) days following the negotiations, the dispute shall be submitted to be determined through arbitration by China International Economic and Trade Arbitration Commission (“CIETAC”), Shanghai Branch, in accordance with CIETAC arbitration rules. There shall be three (3) arbitrators. Guangzhou Xingbang, and all the Shareholders collectively as one side, shall each select one (1) arbitrator, and both arbitrators shall be selected within thirty (30) days after giving or receiving the demand for arbitration. The chairman of the CIETAC shall select the third arbitrator. If a Party fails to appoint an arbitrator within thirty (30) days after giving or receiving the demand for arbitration, the relevant appointment shall be made by the chairman of the CIETAC. The arbitration shall be conducted in Shanghai. The award of CIETAC is final and shall be conclusively binding upon the Parties and shall be enforceable in any court of competent jurisdiction. For avoidance of doubt, Guangdong Xingbang, who may or may not select arbitrator, shall be bound by the award of CIETAC.

 

 

  

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Option Agreement 

7.           TAXES AND EXPENSES

 

Each Party shall, in accordance with PRC laws, bear any and all registration taxes, costs and expenses for the transfer of Equity Interest arising from the preparation, execution and completion of this Agreement and all Equity Interest Purchase Agreement.

 

8.           NOTICE

 

Notice or other communications required to be given by any Party pursuant to this Agreement shall be written in English and Chinese and delivered personally or sent by registered mail or by a recognized courier service or by facsimile transmission to the address of the relevant Party set forth below. The date when the notice is deemed to be duly served shall be determined as the follows: (a) a notice delivered personally is deemed duly served upon the delivery; (b) a notice sent by mail is deemed duly served the third (3rd) day after the date; and (c) a notice sent by facsimile transmission is deemed duly served upon the time shown on the transmission confirmation of relevant documents.

 

	  	
To Guangzhou Xingbang

 

	  	
Address:

	
Room 705A, 7th Floor, West Tower, Star International Mansion, NO.8 Jinsui Road Tianhe District, Guangzhou

	  	
Attn:

	
Yuan Yuan

	  	
Fax:

	
+86-20-38296977

	  	
Tel:

	
+86-20-38296988

 

	  	
To Guangdong Xingbang

 

	  	
Address:

	
7th Floor, West Tower, Star International Mansion, NO.6-20 Jinsui Road Tianhe District, Guangzhou, PR China 510623

	  	
Attn:

	
Xiaohong Yao

	  	
Fax:

	
+86-20-38296656

	  	
Tel:

	
+86-20-38293655

 

         To the Shareholders

	  	
Address:

	
7th Floor, West Tower, Star International Mansion, NO.6-20 Jinsui Road Tianhe District, Guangzhou, PR China 510623

	  	
Attn:

	
Xiaohong Yao

	  	
Fax:

	
+86-20-38296656

	  	
Tel:

	
+86-20-38293655

 

 

  

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Option Agreement 

9.           CONFIDENTIALITY

 

The Parties of this Agreement shall acknowledge and ensure the confidentiality of all oral and written materials exchanged relating to this Agreement. No Party shall disclose the confidential information to any other third party without the other Party’s prior written approval, unless: (a) it is already in the public domain at the time when it is communicated (unless it enters the public domain without the authorization of the disclosing Party); (b) the disclosure is in response to the relevant laws, regulations, or stock exchange rules; or (c) the disclosure is required by any of the Party’s legal counsel or financial consultant for the purpose of the transaction of this Agreement. However, such legal counsel and/or financial consultant shall also comply with the confidentiality as stated hereof. The disclosure of confidential information by employees of hired institutions of the disclosing Party is deemed to be an act of the disclosing Party, and such disclosing Party shall bear all liabilities of the breach of confidentiality. This provision shall survive even if certain clauses of this Agreement are subsequently amended, revoked, terminated or determined to be invalid or unable to implement for any reason.

 

10.           FURTHER WARRANTIES

 

The Parties agree to promptly execute such documents as required to perform the provisions of this Agreement, and to take such actions as may be reasonably required to perform the provisions of this Agreement.

 

11.           MISCELLANEOUS

 

11.1   Amendment, modification and supplement. Any amendments and supplements to this Agreement shall only take effect if executed by all Parties in writing.

 

11.2   Entire agreement. Notwithstanding Section 5 of this Agreement, the Parties acknowledge that this Agreement constitutes the entire agreement of the Parties with respect to the subject matters therein and supersedes and replaces all prior agreements and understandings, whether oral or in writing.

 

11.3   Severability. If any provision of this Agreement is deemed invalid, illegal or non-enforceable according with relevant laws, such provision shall be deemed invalid only within the applicable laws and regulations of the PRC, and the validity, legality and enforceability of the other provisions hereof shall not be affected or impaired in any way. The Parties shall, through reasonable negotiation, replace such invalid, illegal or non-enforceable provisions with valid provisions in order to bring similar economic effects of those replaced provisions.

 

11.4   Headings. The headings contained in this Agreement are for reference only and shall not affect the interpretation and explanation of the provisions in this Agreement.

 

11.5   Language and copies. This Agreement shall be executed in English in six (4) originals each of which shall have the same legal effect. Each Party shall hold one (1) original.

 

 

  

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Option Agreement 

11.6   Successor. This Agreement shall be binding on the successors of each Party and the transferee allowed by each Party.

 

11.7   Survival. Each Party shall continue to perform its obligations notwithstanding the expiration or termination of this Agreement. Section 6, Section 8, Section 9 and Section 11.7 hereof shall continue to be in full force and effect after the termination of this Agreement.

 

11.8   Waiver. Any Party may waive the terms and conditions of this Agreement in writing with the written approval of all the other Parties. Under certain circumstances, any waiver by a Party to the breach of other Parties shall not be construed as a waiver of any other breach by any other Parties under similar circumstances.

 

[No Text Below]

 

  

  

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Option Agreement 

[Signature Page]

 

IN WITNESS THEREOF this Agreement is duly executed by each Party or its legal representatives on the date first set forth above.

 

Guangzhou Xingbang Information Consulting Co., Ltd.

 

	
/s/ Xiaohong Yao

	  

Name: Xiaohong Yao

Title: Director

 

Guangdong Xingbang Industry Information & Media Co., Ltd.

	
/s/ Xiaohong Yao

	  

Name: Xiaohong Yao

Title: Director and  President

 

[Signature of Shareholders of Guangdong Xingbang]

 

	
/s/ Xiaohong Yao

	  

 

Xiaohong Yao

 

ID Card No.:

 

Owns 90% of the Equity Interest 

 

Signature page to Option Agreement

  

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Option Agreement 

[Signature Page continued]

 

	
/s/ Dongmei Zhong

	  

 

Dongmei Zhong

 

ID Card No.:

 

Owns 10% of the Equity Interest

 

Signature page to Option Agreement

 

 

 

11f1012gex10vii_chinaxing.htm

Exhibit 10.7

CODE:

LABOUR CONTRACT

 

 

 

 

 

 

 

 

  

  

  

 

Party A (Employer)

Name: Guangdong Xing Bang Industry Information & Media Co. Ltd..

Address: 7/F West Tower, Star International Mansion,No.6-20 Jinsui Rd.,Tianhe District,

Legal Representative (Principal): Xiaohong Yao

Legal Form: Limited Liability Company

Contact No.: _______

Party B (employee)

Name:                       Xiaohong Yao

Gender:  Male

Registered Permanent Residence: ______________

Current Residential Address: ______________________

ID NO.: 430302196603210055

Contact No.: _____________

In accordance with Labor Contract Law of PRC and relevant laws, regulations, both Parties entered into this contract in compliance with the principal of equality, mutual benefit, legality, bona fide and credibility through consultation.

 

  

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1.  

	
Term of the Contract

	
Article 1.  

	
both Parties agree on the term of the Contract through consultation to      adopt option ___.

	
i.  

	
Fixed term: from July 18, 2007 to July 17, 2012. In which, the probation period is_n/a__.

	
ii.  

	
Open-ended: from ____________(M/D/Y) to _________ (M/D/Y). In which, the intern period is from _______(M/D/Y) to ______(M/D/Y).

	
iii.  

	
With a period to complete the prescribed work: from __________/__(M/D/Y) to _________ (M/D/Y).

	
2.  

	
Job Content and Location

	
Article 1.  

	
Party A appoints Party B as Chief Executive Officer and President. The job location is in Guangzhou City.

Party A and Party B may enter into an Employment Agreement to specify responsibilities and requirements of such particular position.

	
Article 2.  

	
Party B shall fulfill his/her duty of the position in a timely manner pursuant to the content and the requirements of such position, and obey rules made by Party A

	
3.  

	
Working Hours and Vacations

	
Article 1.  

	
Party A arranges Party B to follow the working time shift as __i___.

	
i.  

	
Standard working hours: Party B shall work 7.5 hours a day and 5.5 days  a week.

	
ii.  

	
Comprehensive working hours: average daily and weekly working hours shall not exceed the statutory standard.

	
iii.  

	
Flexible working hours: Based on the guarantee of employees’ health and adequate consideration of the employees’ opinion, Party A may adopt proper ways including arranging a shift to work and rest collectively, adjusting and arranging their rest and flexible working time to ensure the rights of employees and completion of production and tasks.

	
Article 2.  

	
Party A shall ensure Party B’s right of rest. Party B is entitled to all legal holidays and legal vacations of visiting relatives, marriage, funereal and paid leaves.

 

  

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4.  

	
Remuneration

	
Article 1.  

	
Party A sets up a system of salary allocation based on its production characteristic and productivity effect. Party B’s salary is determined under the principal of equal payment for equal work, taking consideration of his/her skills, working strength, working conditions and contribution.

	
Article 2.  

	
Party A adopts the option __i_ to pay to Party B.

	
i.  

	
Time wage: salary of Party B is RMB  20, 800   monthly, bonus is determined by Party B’s actual contribution.

	
ii.  

	
Piece wage: quota of Party B is (are) ______, price for per piece is ____

	
iii.  

	
Determined according to Party A’s salary system.

The salary standard of Party B in probation period is ________.

	
Article 3.  

	
Party B’s bonus should be paid in accordance with the _n/a_ The bonus should be _n/a____.

	
Article 4.  

	
Party A shall fully pay to Party B before 15th date in each month in cash or money wiring. If the payment date is a holiday, Party A shall pay to Party B as of the nearest business day prior to such holiday. Party A shall record the time, amount, working days and signature of the salary payment and provide a payroll to Party B.

	
Article 5.  

	
Party A shall compensate Party B in the event that, Party A arranges Party B to work over time or on legal holiday(s). In such case, Party A shall either arrange Party B to rest or pay extra salary in accordance with relevant law and regulations.

	
5.  

	
Social Insurance and Welfare

	
Article 1.  

	
Both Parties must participate in social insurance and pay for insurance fees in compliance with national and local laws and regulations. Party A shall withhold insurance fees which Party B bears.

	
Article 2.  

	
During the valid term of this Contract, Party B shall enjoys treatments, such as rest, vacation, rest of sickness, injury, industrial injury, breeding, death, and also medical treatment period, pregnancy, perinatal period in accordance with relevant laws and regulations,.

	
Article 3.  

	
Party A provides following supplementary insurance and welfare to Party B: ____________________________.

 

  

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6.  

	
Working Protections and Working Conditions

	
Article 1.  

	
Party A shall establish a complete system of operation, specification, working safety and occupational hazards prevention and provide necessary training to Party B. Party B shall strictly obey rules and regulations during working.

	
Article 2.  

	
Party A shall provide Party B with occupational safety and health conditions and as well as any protection equipments conforming to relevant laws and regulations. Party A shall arrange physical examination for Party B if Party A puts Party B on the position with occupational hazards.

	
Article 3.  

	
If any position has potential hazards, Party A shall fulfill its obligation to notice Party B and provide health and safety education to reduce occupational hazards and prevent accidents during working.

	
Article 4.  

	
Party B has the right to refuse any direction that is against the rules or risky working and would damage Party B’s health. Party B has the right to criticize, report and sue against Party A for any conditions that would damage health and safety.

	
7.  

	
Implementation and amendment of Contract

	
Article 18.  

	
Both Parties shall implement its obligations in compliance with this Contract.

	
Article 19.  

	
Change of name, legal representative, principal and investor(s) of Party A would not affect the implementation of this Contract.

	
Article 20.  

	
Any merger and separation of Party A would not affect the effectiveness of this Contract, and the successor of Party A shall implement this contract continuously.

	
Article 21.  

	
This Contract may be amended in writing through consultation of both Parties.

 

  

5

  

 

	
8.  

	
Termination of Contract

	
Article 22.  

	
Termination of this Contract shall be in compliance with Article 36, 37, 38, 39, 40, 41, 42, 43, 44 of Labour Contract Law.

	
Article 23.  

	
If any party terminates this Contract which falls within the conditions of Article 46 of the Labour Contract Law, Party A shall compensate Party B economically.

	
Article 24.  

	
If Party A terminates this Contract illegally where Party B requests to continuous implement, Party A shall implement continuously. Where Party B does not request to enforce this contract or this contract has become unenforceable, Party A shall pay twice of economic compensation to Party B.

Where Party B terminates this Contract illegally and causes loss to Party A, Party B shall bear the liability resulted therefrom.

	
Article 25.  

	
In the event that termination of this contract occurs, Party A shall issue a certificate of termination of this Contract based on relevant laws and regulations. And Party shall transfer Party B’s social insurance and files within 15 days.

Party B shall arrange work hand-over pursuant to the agreement by both parties. Any compensation payable shall be paid on the work hand-over date.

	
9.  

	
Miscellaneous

	
Article 26.  

	
If Party A provides professional training to Party B and pays for the training fees, Party A and Party B may enter into an agreement regarding period of service.

Party B shall pay penalty in the event that Party B violates the service period agreement.

	
Article 27.  

	
If Party B has an obligation that to keep the confidential information, Party A and Party B may enter into an agreement regarding non-competition.

Party B shall pay for penalty in the event that Party B violates the non-competition agreement and Party B shall bear the liability that if any loss was caused by the violation of the non-competition agreement.

	
Article 28.  

	
Following agreements as appendixes of this Contract:

	
i.  

	
Position agreement

	
ii.  

	
Training agreement

	
iii.  

	
Confidentiality agreement

	
iv.  

	
......

	
Article 29.  

	
Other matter(s) agreed by both Parties:

_____________________________________

_____________________________________

_____________________________________

 

  

6

  

 

	
Article 30.  

	
Any labour dispute arising out of this Contract between the Parties to this Contract may be resolved through consultation. If the dispute cannot be resolved through consultation, either Party may submit the dispute to arbitration or the court.

	
Article 31.  

	
Any matter is not covered by this Contract shall be in compliance with national and local regulations.

	
Article 32.  

	
This Contract becomes effective upon the signing date of both Parties. This Contract shall be signed in two (2) copies, each Party shall hold one (1) copy.

 

	Party  A (Seal) 	Party B (Signature) Xiaohong Yao
	 	 
	

Legal Representative (Principal)

	 
	

(Signature or Seal)

	 
	 	 
	Signing Date:  07/18/ 2007  	Signing Date: 07/18/ 2007
	 	 
	Witness Authority    	Witness (Seal)
	 	 
	

Date of witness:

	 

 

 

 

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