Document:

Unassociated Document

 

EMPLOYMENT AGREEMENT

 

 

AGREEMENT dated as of the 1st day of July, 2011, China Intelligence Information System Inc.

, a Nevada corporation with its principal place of business located at 11th Floor No.11 Building, Shuntai Square, No.2000 Shunhua Rd,High-tech Industrial Development Zone, Jinan, People’s Republic of China (the “Company”), and Keyi Zhang(”Executive”), an individual residing at No.93 JianShe Road,Jinan, People’s Republic of China.

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to engage Executive to serve as its chief financial officer on and subject to the terms of this Agreement;

 

NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the parties agree as follows:

 

1. Employment and Duties.

 

(a) Subject to the terms and conditions hereinafter set forth, the Company hereby employs Executive as its chief financial officer during the Term, as hereinafter defined.  In this capacity, she will report to the board of directors and her duties will include the duties normally associated with the chief financial officer of a publicly traded company which is a smaller reporting company, including services participation in road shows and investor conference calls and, if requested, attending meetings of the Company’s board of directors and audit committee as a guest.  If requested, she shall also act as the Company’s contact person in dealing with stockholder and investor relations matters and shall perform such other duties, consistent with her position as chief financial officer, as shall be assigned to her by the board of directors or the chief executive officer.

 

(b) This Agreement shall have a term (the “Term”) which commenced on July 01,2011 and will end on July 01,2014 and will continue on a month to month basis thereafter unless terminated by either party on not less than 30 days’ notice prior to the expiration of the initial term or any extension, unless otherwise terminated earlier as provided in this Agreement.

 

2. Executive’s Performance.  Executive hereby accepts the employment contemplated by this Agreement. During the Term, Executive shall perform her duties diligently, in good faith and in a manner consistent with the best interests of the Company.

 

3. Compensation.

 

(a)  Salary.  For her services during the Term, the Company shall pay Executive a salary (“Salary”) at the annual rate of $100,000 payable in monthly installments of $7,000 at the day 15 of following Month.  Remained Salary $16,000 shall be paid on first month of following year. Executive’s Salary shall be subject to annual review by the compensation committee of the Company’s board of directors.  Any change in the Executive’s base salary and the amount of any such change are within the sole discretion of the compensation committee.

 

(b)   Bonus. At the end of each year, the compensation committee shall evaluate Executive’s performance for the prior year as well as the results of the Company’s operations for the year, and shall determine whether or not to grant the Executive an annual cash bonus.  The decision whether or not to grant the Executive’s annual cash bonus, and the amount of any such bonus, are within the sole discretion of compensation committee.

 

(c)   Vacation. The Executive shall be entitled to an annual paid vacation in accordance with the Company’s policy applicable to senior executives from time to time in effect, for up to four weeks per calendar year (as prorated for partial years), such vacations to be taken at such time or times as mutually agreed upon by the Company and the Executive.  The carry-over of vacation days shall be in accordance with the Company’s policy applicable to senior executives from time to time in effect.

 

(d)   Payments Net of Withholding.  In the event that the Company is required by law to withhold taxes or other payments from Executive’s compensation, the payment to Executive shall be net of such withholdings.

 

(e)   Matters in Discretion of the Compensation Committee.  Executive understands that any matters relating to Executive’s compensation other than expressly provided in this Agreement shall be in the discretion of the compensation committee of the board of directors, and no commitment has been made to Executive with respect to any future compensation or other awards or benefits.

 

  

  

  

 

4. Reimbursement of Expenses.  The Company shall reimburse Executive, upon presentation of proper expense statements, for all authorized, ordinary and necessary out-of-pocket expenses reasonably incurred by Executive during the Term in connection with the performance of her services pursuant to this Agreement in accordance with the Company’s expense reimbursement policy.  Executive understands that the Company will pay coach fare for any overseas travel requested or approved by the Company.

 

5. Termination of Employment.

 

(a)    Death or Resignation.  If the Executive dies or resigns during the Term, this Agreement shall automatically terminate on the date of the Executive’s death or resignation. Subject to Section 3(b) of this Agreement, upon Executive’s death or resignation, the Company shall have no further obligations or liability to the Executive or her heirs, administrators or executors, except for the obligation to pay the Executive (i) any earned but unpaid base Salary through the Executive’s date of death or resignation, (ii) for any unused accrued vacation, and (iii) any unreimbursed business expenses incurred by the Executive prior to her death or resignation.

(b)   Disability.  At any time during the Term, the Company may terminate this Agreement and the Executive’s employment with the Company because of the Executive’s “Disability,” by written notice to the Executive.  For purposes of this Agreement, “Disability” shall occur, if at the end of any calendar month during the Term, the Executive, as a result of mental or physical illness or injury, is or has been unable to perform her duties under this Agreement, with or without reasonable accommodation, for a period of 90 consecutive days.  If this Agreement is terminated because of the Executive’s “Disability,” the Company shall, subject to Section 3(b) of this Agreement, have no further obligations or liability to the Executive or her heirs, administrators or Executors, except for the obligation to pay the Executive (i) any earned but unpaid Salary through the date of termination for “Disability,” at the rate then in effect, (ii) for any unused accrued vacation, and (iii) subject to Section 3 herein, for any unreimbursed business expenses incurred by the Executive prior to her last date of employment with the Company.

 

(c)   Termination For “Cause.”  At any time during the Term, the Company may terminate this Agreement and the Executive’s employment with the Company for “Cause.” For purposes of this Agreement, “Cause” shall mean any of the following: (i) the neglect or failure or refusal of Executive to perform Executive’s duties hereunder (other than as a result of total or partial incapacity due to physical or mental illness), as determined by compensation committee in its sole discretion; (ii) the engaging by Executive in gross negligence or misconduct which is injurious to the Company or any of its affiliates, monetarily or otherwise; (iii) perpetration of an intentional and knowing fraud against or affecting the Company or any of its affiliates or any customer, client, agent, or employee thereof; (iv) any willful or intentional act that could reasonably be expected to injure the reputation, business, or business relationships of the Company or any of its affiliates or Executive’s reputation or business relationships; (v) Executive’s material failure to comply with, and/or a material violation by Executive of, the internal policies of the Company or any of its affiliates and/or procedures or any laws or regulations applicable to Executive’s conduct as an employee of the Company; (vi) Executive’s conviction (including conviction on a nolo contendere plea) of a felony or any crime involving fraud, dishonesty or moral turpitude; (vii) the breach of a covenant set forth in Sections 6, 7 or 8 of this Agreement; or (viii) any other material breach by Executive of this Agreement; provided, however, that, if susceptible of cure, a termination by the Company under Sections 5(c)(i), 5(c)(v) or 5(c)(viii) herein shall be effective only if, within 14 days following delivery of a written notice by the Company to Executive that the Company is terminating her employment for Cause, Executive has failed to cure the circumstances giving rise to Cause.  If this Agreement and the Executive’s employment is terminated for “Cause,” following the Executive’s last date of employment with the Company, the Company shall have no further obligations or liability to the Executive or her heirs, administrators or Executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive (i) any earned but unpaid base salary through the Executive’s last date of employment, at the rate then in effect, (ii) for any unused accrued and unforfeited vacation, and (iii) subject to Section 4 herein, for any unreimbursed business expenses incurred by the Executive prior to the last date of employment with the Company.  \

 

(d)   Termination Without Cause.  The Company may terminate Executive’s employment hereunder at any time for any reason or no reason by giving Executive thirty (30) days prior written notice of the termination, provided that in the event that the Company terminates Executive’s employment without Cause, the Executive shall not be subject to the covenants listed in Section 7 herein.  Following any such notice, the Company may reduce or remove any and all of Executive’s duties, positions and titles with the Company.  If this Agreement and the Executive’s employment with the Company is terminated without “Cause,” following the Executive’s last date of employment with the Company, the Company shall have no further obligations or liability to the Executive or her heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive (i) any earned but unpaid base salary through the Executive’s last date of employment, at the rate then in effect, (ii) for any unused accrued and unforfeited vacation, and (iii) subject to Section 4 herein, for any unreimbursed business expenses incurred by the Executive prior to her last date of employment with the Company.  The Company shall deduct, from all payments made hereunder, all applicable taxes and other appropriate deductions.

 

  

  

  

 

6. Trade Secrets and Proprietary Information.

 

(a)   Executive recognizes and acknowledges that the Company, through the expenditure of considerable time and money, has developed and will continue to develop in the future confidential information.  “Confidential information” shall mean all information of a proprietary or confidential nature relating to Covered Persons, including, but not limited to, such Covered Person’s trade secrets or proprietary information, confidential know-how, and marketing, services, products, business, research and development activities, inventions and discoveries, whether or not patentable, and information concerning such Covered Person’s services, business, customer or client lists, proposed services, marketing strategy, pricing policies and the requirements of its clients and relationships with its lenders, suppliers, licensors, licensees and others with which a Covered Person has a business relationship, financial or other data, technical data or any other confidential or proprietary information possessed, owned or used by the Company, the disclosure of which could or does have a material adverse effect on the Company, its businesses, any business in which it proposes to engage.  Executive agrees that she will not at any time use or disclose to any person any confidential information relating to Company; provided, however, that nothing in this Section 6(a) shall be construed to prohibit Executive from using or disclosing such information if she can demonstrate that such information (i) became public knowledge other than by or as a result of disclosure by a person not having a right to make such disclosure or (ii) was disclosure that was authorized by the Company.  The term “Covered Person” shall include the Company, any subsidiaries and affiliates and any other person who provides information to the Company pursuant to a secrecy or non-disclosure agreement.

 

(b)   In the event that any confidential information is required to be produced by Executive pursuant to legal process (including judicial process or governmental administrative subpoena), Executive shall give the Company notice of such legal process within a reasonable time, but not later than ten business days prior to the date such disclosure is to be made, unless Executive has received less notice, in which event Executive shall immediately notify the Company.  The Company shall have the right to object to any such disclosure, and if the Company objects (at the Company’s cost and expense) in a timely manner so that Executive is not subject to penalties for failure to make such disclosure, Executive shall not make any disclosure until there has been a court determination on the Company’s objections.  If disclosure is required by a court order, final beyond right of review, or if the Company does not object to the disclosure, Executive shall make disclosure only to the extent that disclosure is required by the court order, and Executive will exercise reasonable efforts at the Company’s expense, to obtain reliable assurance that confidential treatment will be accorded the confidential information.

 

(c)   Executive shall, upon expiration or termination of the Term, or earlier at the request of the Company, turn over to the Company or destroy all documents, papers, computer disks or other material in Executive’s possession or under Executive’s control which may contain or be derived from confidential information.  To the extent that any confidential information is on Executive’s hard drive or other storage media, she shall, upon the request of the Company, cause either such information to be erased from her computer disks and all other storage media or otherwise take reasonable steps to maintain the confidential nature of the material.

(d)   Executive realizes that any trading in Company’s common stock or other securities or aiding or assisting others in trading in Company’s common stock or other securities, including disclosing any non-public information concerning Company or its affiliates to a person who uses such information in trading in the Company’s common stock or other securities, may constitute a violation of federal and state securities laws.  Executive will not engage in any transactions involving the Company’s common stock or other securities while in the possession of material non-public information in a manner that would constitute a violation of federal and state securities laws and shall not disclose any material non-public information except pursuant to a confidentiality agreement approved by the Company’s chief executive officer.

 

(e)   For the purposes of Sections 6, 7 and 8 of this Agreement, the term “Company” shall include the Company, and any subsidiaries and affiliates which are, directly or indirectly, controlled by the Company.

 

  

  

  

 

7. Covenant Not To Solicit or Compete.

 

(a)   During the period from the date of this Agreement until one year following the date on which Executive’s employment is terminated, Executive will not, directly or indirectly:

 

	
(i) 

	
persuade or attempt to persuade any person which is or was a customer, client or supplier of the Company to cease doing business with the Company, or to reduce the amount of business it does with the Company (the terms “customer” and “client” as used in this Section 7 to include any potential customer or client to whom the Company submitted bids or proposals, or with whom the Company conducted negotiations, during the term of Executive’s employment or consulting relationship hereunder or during the twelve (12) months preceding the termination of her employment or consulting relationship, as the case may be);

 

	
(ii) 

	
solicit for herself or any other person other than the Company the business of any person which is a customer or client of the Company, or was a customer or client of the Company within one (1) year prior to the termination of her employment or consulting relationship;

 

	
(iii) 

	
persuade or attempt to persuade any employee of the Company, or any individual who was an employee of the Company during the one (1) year period prior to the termination of this Agreement, to leave the Company’s employ, or to become employed by any person in any business, which directly competes with the business of the Company as it is engaged in at the time of the termination of this Agreement; provided, however, that nothing in this Section 7 shall be construed to prohibit the Executive from owning an interest of not more than five (5%) percent of any public company engaged in such activities.

	
(iv) 

	
engage in or help others engage in the competitive business of the Company; sell like products or provide like services which can become competitor to the Company.

	
(v) 

	
work for or hold a position in the Company’s affiliates.

 

(b)   Executive will not, during or after the Term, make any disparaging statements concerning the Company, its business, officers, directors and employees that could injure, impair, damage or otherwise affect the relationship between the Company, on the one hand, and any of the Company’s employees, suppliers, customers, clients or any other person with which the Company has or may conduct business or otherwise have a business relationship of any kind and description; provided, however, that this sentence shall not be construed to prohibit Executive from giving factual information required to be given pursuant to legal process.  The Company will not make any disparaging statements concerning Executive.  This Section 7(b) shall not be construed to prohibit the either party from giving factual information concerning the other party in response to inquiries that such party believes are bona fide.

 

(c)   The Executive acknowledges that the restrictive covenants (the “Restrictive Covenants”) contained in Sections 6 and 7 of this Agreement are a condition of her employment and are reasonable and valid in geographical and temporal scope and in all other respects. If any court determines that any of the Restrictive Covenants, or any part of any of the Restrictive Covenants, is invalid or unenforceable, the remainder of the Restrictive Covenants and parts thereof shall not thereby be affected and shall remain in full force and effect, without regard to the invalid portion. If any court determines that any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable because of the geographic or temporal scope of such provision, such court shall have the power to reduce the geographic or temporal scope of such provision, as the case may be, and, in its reduced form, such provision shall then be enforceable.

 

(d)   Nothing in this Section 7 shall be construed to prohibit Executive from owning a passive, non-management interest of less than 5% in any public company that is engaged in activities prohibited by this Section 7.

 

8. Injunctive Relief. Executive agrees that her violation or threatened violation of any of the provisions of Sections 6 or 7 of this Agreement shall cause immediate and irreparable harm to the Company. In the event of any breach or threatened breach of any of said provisions, Executive consents to the entry of preliminary and permanent injunctions by a court of competent jurisdiction prohibiting Executive from any violation or threatened violation of such provisions and compelling Executive to comply with such provisions. This Section 8 shall not affect or limit, and the injunctive relief provided in this Section 7 shall be in addition to, any other remedies available to the Company at law or in equity or in arbitration for any such violation by Executive. The provisions of Sections 6, 7, and 8 of this Agreement shall survive any termination of this Agreement and Executive’s employment relationship pursuant to this Agreement.

 

  

  

  

 

9. Dispute Resolution.  The Executive and the Company agree that any dispute or claim, whether based on contract, tort, discrimination, retaliation, or otherwise, relating to, arising from, or connected in any manner with this Agreement or with the Executive’s employment with the Company shall be resolved exclusively through final and binding arbitration in New York City under the rule then obtaining of the American Arbitration Association.  Executive acknowledges that the purpose and effect of this Section 9 is solely to elect private arbitration in lieu of any judicial proceeding she might otherwise have available to her in the event of an employment-related dispute between her and the Company, and shall not affect or impair Executive’s rights under any applicable United States federal, state or local law relating to employment and employment-related matters.  Executive hereby waives her right to have any such employment-related dispute heard by a court or jury, as the case may be, and agrees that her exclusive procedure to redress any employment-related claims will be arbitration.

 

10. Indemnification. The Company shall provide Executive with payment of legal fees and indemnification to the maximum extent permitted by the Company’s articles of incorporation, by-laws and applicable law.

 

11. Representations by the Parties.

 

(a) Executive represents, warrants, covenants and agrees that she has a right to enter into this Agreement, that she is not a party to any agreement or understanding, oral or written, which would prohibit performance of her obligations under this Agreement, and that she will not use in the performance of her obligations hereunder any proprietary information of any other party which she is legally prohibited from using.

(b)   Executive represents and agrees that she is accepting the Shares being issued to her pursuant to this Agreement for her own account and not with a view to or for sale of distribution thereof.  Executive understands that the securities are restricted securities and she understands the meaning of the term “restricted securities.”  Executive further represents that she was not solicited by publication of any advertisement in connection with the receipt of the Shares and that she has consulted tax counsel as needed regarding the Shares.

 

(c)   Executive further represents that, during the past five years:

 

(i) No petition has been filed under the federal bankruptcy laws or any state insolvency law by or against, or a receiver, fiscal agent or similar officer has been appointed by a court for your business or property, or any partnership in which Executive was a general partner at or within two years before the time of such filing, or any corporation or business association of which Executive was an executive officer at or within two years before the time of such filing;

 

(ii) Executive has not been convicted in a criminal proceeding and is not the subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

(iii) Executive has not been the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining you from, or otherwise limiting, the following activities:

 

(A) Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

 

(B) Engaging in any type of business practice; or

 

(C) Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws.

 

(iv) Executive has not been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting, for more than 60 days, her right to engage in any activity described in Section 11(b)(iii)(A) of this Agreement, or to be associated with persons engaged in any such activity.

 

(v) Executive has not been found by a court of competent jurisdiction in a civil action or by the SEC to have violated any federal or state securities law, and the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended, or vacated.

 

(vi) Executive has not been found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated.

(d)   The Company represents, warrants and agrees that it has full power and authority to execute and deliver this Agreement and perform its obligations hereunder.

 

  

  

  

 

12. Miscellaneous.

 

(a)   Any notice, consent or communication required under the provisions of this Agreement shall be given in writing and sent or delivered by hand, overnight courier or messenger service, against a signed receipt or acknowledgment of receipt, or by registered or certified mail, return receipt requested, or telecopier, e-mail or similar means of communication if receipt is acknowledged or if transmission is confirmed by mail as provided in this Section 12(a), to the parties at their respective addresses set forth at the beginning of this Agreement, with notice to the Company being sent to the attention of the individual who executed this Agreement on its behalf. Any party may, by like notice, change the person, address or telecopier number to which notice is to be sent.

 

(b)   This agreement shall be governed by the laws of the State of New York applicable to agreements executed and to be performed wholly within such state, without regard to principles of conflicts of laws.

 

(c)   If any term, covenant or condition of this Agreement or the application thereof to any party or circumstance shall, to any extent, be determined to be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to parties or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and be enforced to the fullest extent permitted by law, and any court having jurisdiction may reduce the scope of any provision of this Agreement, including the geographic and temporal restrictions set forth in Section 6 of this Agreement, so that it complies with applicable law.

 

(d)   This Agreement constitutes the entire agreement of the Company and Executive as to the subject matter hereof, superseding all prior or contemporaneous written or oral understandings or agreements, including any and all previous employment agreements or understandings, all of which are hereby terminated, with respect to the subject matter covered in this Agreement. This Agreement may not be modified or amended, nor may any right be waived, except by a writing which expressly refers to this Agreement, states that it is intended to be a modification, amendment or waiver and is signed by both parties in the case of a modification or amendment or by the party granting the waiver. No course of conduct or dealing between the parties and no custom or trade usage shall be relied upon to vary the terms of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

(e)   No party shall have the right to assign or transfer any of its or her rights hereunder except that the Company’s rights and obligations may be assigned in connection with a merger of consolidation of the Company or a sale by the Company of all or substantially all of its business and assets.

 

(f)   This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, executors, administrators and permitted assigns.

(g)   The headings in this Agreement are for convenience of reference only and shall not affect in any way the construction or interpretation of this Agreement.

 

(h)   This Agreement may be executed in counterparts, each of which when so executed and delivered will be an original document, but both of which counterparts will together constitute one and the same instrument.

 

  

  

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

 

	China Intelligence Information Systems, Inc.	 	 	 	 
	 	 	 	 	 
	
 
Li Kun Wu

	 	 	
 

	 
	
President and Chief Executive Officer

	 	 	
 

	 
	
 

	 	 	
 

	 
	 	 	 	 	 
	EXECUTIVE:	 	 	 	 
	 	 	 	 	 
	 
Zhang KeyiEmployment Contract

between

Perfectenergy Shanghai Ltd. & Zheng Hui

Labour No. 211263

Party A: Perfectenergy Shanghai Ltd.

	
Party B: Zheng Hui

	
Passport No.:058640512

	
Nationality: USA

In accordance with the Labor Law of the People’s Republic of China (the “Labor Law”) and Labor Contract Law of the People’s Republic of China, Party A and Party B (hereinafter the “Parties”), through consultations and on the basis of equality and free will, agree to enter into this contract (the “Contract”) and abide by the terms and conditions set forth herein.

	
I.

	
Contract Period

Article 1. Proposed by Party B, the Parties agree, through consultations, that this contract is a fixed-term contract with valid period from July 4, 2011 to July 3, 2014. The contract will automatically terminate upon expiration unless an extension is agreed upon by both parties 15 days prior to the expiration date.

	
II.

	
Work description and location

Article 2. Party B agrees to serve in the position of Chief Operating Officer.

Party A may assign Party B one or multiple tasks related to his position set forth above based on production needs. The work location is in Party A’s major operation locations or any work areas needed for the new business expansion of Party A.

Article 3. Party B shall accomplish the tasks as required by Party A in a timely manner as well as in accordance with its quality requirement. Based on its evaluation policies, Party A may adjust Party B’s position and pay accordingly if Party B does not meet the requirement of his position for two consecutive evaluation periods.

	
III.

	
Working hours and holidays

Article 4 Party B shall arrange for Party B to implement System C as defined below:

	
A.

	
Standard working hour system: Party B works no more than 8 hours daily, and no more than 40 hours weekly on average; If overtime is required, Party A shall pay overtime in accordance with the labor regulations and Party A shall guarantee that Party B has at least one day off per week;

	
B.

	
Comprehensive working hour system: Average daily and weekly work hours may not exceed the legal standard working hour limit;

 

  

  

  

 

	
C.

	
Flexible working hour system: Party B may make his own arrangements for work, rest and vacation, provided that Party B reports such arrangements to Party A.

Article 5 Party A may extend working hours based on production needs.  Party B may extend working hours with written consent of Party A. Overtime payment shall be made based on actual hours spent.

Article 6 The following shall not be deemed working hours regardless of the working hour system implemented:

 

	
  

	
1.

	
Entering or staying in Party A’s premises without written consent during the non-working hours;

	
  

	
2.

	
Half to one hour lunch break;

	
  

	
3.

	
Working hours shall be based on the time records kept by each department instead of IC card records etc;

	
  

	
4.

	
Other hours which shall not be deemed working hours.

Article 7 Party A shall guarantee Party B the right of rest in accordance with the relevant laws during the performance of the contract. Application for leaves shall be approved by the relevant authority of Party B. Unauthorized leaves will not be accepted and will be considered as absences.

	
  

	
a.

	
Sick leave shall be supported by sick leave certificate issued by authorized hospital (level II above)

	
  

	
b.

	
Injured leave shall follow the State and municipal’s regulations. Party A has the responsibility to assess the length of the injured leave period and may deduct the verification expenses from Party B’s salary;

	
  

	
c.

	
Other leaves taken by Party B shall not exceed two days per month and  any special leaves longer than that shall be approved by the General Manager;

	
  

	
d.

	
No show after approved leave period will be considered absence.

	
IV. 

	
Wages

Article 8 Party A shall pay Party B salary of 60,000RMB/Month. Party A shall pay Party B cash in full on the 10th of each month. Party A shall pay Party B _______ during probation period.

Article 9 Party B is entitled to overtime work payment and the calculation of overtime payment shall be based on the Municipal government’s regulations in Shanghai.

Article 10 Party B has the right to enjoy legal holidays, take leave during the period of marriage and other leaves stipulated by State, provincial and municipal authorities. Leaves for personal reasons will not be paid by Party A.

Article 11 Party B shall be paid at 80% of current year’s average wage in Shanghai during the sick leave period; pay for injured leave will be made in accordance with the State and municipal’s regulations.

  

  

  

 

Articles 12 Party A will not pay any wage to Party B for the absence period, and Party A may deduct three times of Party B’s wage for the absence period.

	
V.

	
Labor Protection, working conditions

Article 13 Party A shall establish the necessary working instructions, the job specifications and the labor safety procedures, the occupational safety and health system, and provide essential trainings to Party B. Party B shall observe the safety procedures and follow the work instructions in the labor process.

Article 14 Party A must provide Party B necessary safety and health conditions and labor protection facilities as stipulated by relevant State, provincial and municipal authorities. Party A must establish a sound working safety and health insurance system and establish related safety operation rules.

	
VI. 

	
Society Insurane welfare

Article 15 Party A and Party B shall participate in social insurance schemes according to the relevant State, provincial and municipal regulations. Party A shall pay premiums for Party B on pension, unemployment insurance, work injury insurance, and birth insurance. The portion for pension to be paid by Party B shall be deducted and paid by Party A according to the relevant regulations.

Article 16 If Party B or other party can not provide the necessary supporting document as required by the social security department in time for application for social security insurance, Party A has the right to termination the contract and not pay any compensation.

	
VII. 

	
Work discipline

Article 17 Party B must strictly abide by the relevant safety operation rules and discipline rules in the process of production.

Article 18 If Party B fails to follow the rules above, he shall be penalized in accordance with the rules.

	
VIII. 

	
Change, cancellation and termination of contract and economic compensation

Article 19 The Parties may terminate the Contract if they so agree after consultation.

Article 20 Pursuant to the Labor Law (Labor Law Article 36,37,38), Party B may terminate the Contract if:

	
  

	
1.

	
the Parties mutually agree to terminate the Contract after consultation;

	
  

	
2.

	
Party B gives Party A 30 days’ prior written notice;

 

  

  

  

 

	
  

	
3.

	
Party B gives Party 3 days’ prior notice during the probation period;

	
  

	
4.

	
Party A fails to provide work protection or working conditions as stipulated in the Contract;

	
  

	
5.

	
Party A fails to pay labor compensation in full on time;

	
  

	
6.

	
Party A fails to pay the social security premium for Party B in accordance with the law;

	
  

	
7.

	
Party A adopts rules or regulations that are in violation of laws or regulations, thereby impairing Party B’s rights and interests;

	
  

	
8.

	
through fraud, coercion or exploitation of Party B’s disadvantageous position, Party A causes Party B to conclude or amend the Contract against Party B’s true intent;

	
  

	
9.

	
the Contract absolves Party A from legal liability and denies Party B his rights;

	
  

	
10.

	
the Contract is in violation of the mandatory provisions of laws or administrative regulations;

	
  

	
11.

	
Party A uses violence, threats or unlawful restriction of personal freedom to force Party B to work;

	
  

	
12.

	
Party A forces or instructs Party B to perform dangerous tasks which would endanger his personal safety in violation of rules or regulations; or

	
  

	
13.

	
Party A causes the occurrence of a circumstance in which laws or administrative regulations allow Party B to terminate the Contract.

  

Article 21 If Party A cannot provide location for normal operation due to expiration of lease or expropriation, Party A has the right to terminate the Contract but shall pay Party B economic compensation in accordance with the relevant regulations.

Article 22 Pursuant to the Labor Law (Articles 39, 41, 42), Party A may terminate the Contract if:

	
  

	
1.

	
the Parties mutually agree to terminate the Contract after consultation;

	
  

	
2.

	
Party B fails to meet the requirements for employment during the probation period;

	
  

	
3.

	
Party B materially breaches Party A’s rules and regulations;

	
  

	
4.

	
Party B causes substantial loss to Party A due to his serious dereliction of duty or engagement in malpractice for personal gain;

	
  

	
5.

	
Party B establishes an employment relationship with another employer simultaneously which materially affects the completion of his task with Party A, or he refuses to rectify the situation after being cautioned by Party A;

	
  

	
6.

	
through fraud, coercion or exploitation of Party A’s disadvantageous position, Party B causes Party A to conclude or amend the Contract against Party A’s true intent;

	
  

	
7.

	
Party B is subject to criminal liability in accordance with the law;

	
  

	
8.

	
Party B is unable to resume his original work nor engage in other work arranged for him by Party A after the expiration of the prescribed medical treatment period for an illness or non-work-related injury;

	
  

	
9.

	
Party is incompetent and remains incompetent after training or adjustment of his position;

	
  

	
10.

	
a material change in the objective circumstances relied upon at the time of conclusion of the Contract renders it impossible for the Parties to perform and, after consultation, the Parties are unable to reach an agreement on amending the Contract;

 

  

  

  

 

	
  

	
11.

	
Party A carries on restructuring pursuant to the Enterprise Bankruptcy Law;

	
  

	
12.

	
Party A experiences serious difficulties in production an/or business operation;

	
  

	
13.

	
Party A switches production, introduces significant technological innovation or adjusts its business model, and still needs to reduce its workforce after amending the Contract;

	
  

	
14.

	
a material change in the objective economic conditions relied upon at the time of conclusion of the Contract renders it impossible for the Parties to perform;

	
  

	
15.

	
Party B is held in administrative or judicial custody for more than ten (10) days (except for negligence), taking drugs, sentenced to reeducation through labor, or subject to criminal liability in accordance to the law;

	
  

	
16.

	
Party B intentionally destroys property of Party A and/or employees of Party A and/or customers of Party A and the value of the property exceeds 1,000 RMB;

	
  

	
17.

	
Party B intentionally or negligently breaches the trade secrets protection provisions and disclose Party A’s trade secrets to a third party;

	
  

	
18.

	
Party B, by taking advantage of his position, occupies any property of Party A or employees of Party A or customers of Party A with a total value exceeding 500 RMB and refuses to return the property within five days after being urged by Party A;

	
  

	
19.

	
Party B gives gifts with an aggregate value exceeding 1,000 RMB to Party A’s executive officers or his superiors, except for gifts of similar value exchanged between Party A and Party A’s executive officers or his superiors;

	
  

	
20.

	
Party B receives gifts and commissions with an aggregate value exceeding 1,000 RMB from employees of Party A or customers (or potential customers) of Party A and fails to turn over to Party A within a week, or accepts invitations of customers (potential customers) of Party A to enter places of entertainment, unless approved by Party A;

	
  

	
21.

	
Party B verbally abuses or insults employees or customers (or potential customers) of Party A and refuses to correct such acts (including extending an apology and making compensation for actual loss) after being informed by Party A or such acts of Party B cause serious adverse effects and consequences;

	
  

	
22.

	
Party B assaults employees or customers (or potential customers) of Party A;

	
  

	
23.

	
Party B sets or changes password on work computer or applications without permission and refuses to correct such acts after being informed by Party A;

	
  

	
24.

	
Party B enters into agreements or contracts (in individual capacity or using the department seal) without Party A’s authorization or engages in business transactions with Party A;

	
  

	
25.

	
Party B engages in business transactions with relatives of Party B or business organizations owned or controlled by relatives of Party B (relatives include spouse, relatives through marriage or friends known for longer than one year) without disclosing the transactions in writing to Party A;

	
  

	
26.

	
Party B enters into agreements or contracts (in individual capacity or using the department seal) without Party A’s authorization

 

  

  

  

 

	
  

	
27.

	
Party B fails carry out his job duty as quality inspection officer, impairing Party A’s goodwill and causing irrecoverable losses to the Party;

	
  

	
28.

	
Party B infringes on others’ intellectual property (including software, technical secret, patents, trade-marks) without Party A’s authorization, causing economic losses and to Party A’s reputation;

	
  

	
29.

	
Party B causes losses to the Company in excess of RMB5,000 due to serious dereliction of duty and refuses to compensate the Company for its losses;

	
  

	
30.

	
Party B leads, organizes, participates in or promotes strike or slowdown;

	
  

	
31.

	
Party B refuses to follow job guidance from the Company or arrangement by HR department;

	
  

	
32.

	
Party B steals property from Party A or employees of Party A, or uses the Party A’s valuable assets in improper ways;

	
  

	
33.

	
Party B hinders normal operation of Party A and engages in dangerous behaviors without yielding to persuasion;

	
  

	
34.

	
Party B sells, transfers or leases the Company’s property without Party A’s permission;

	
  

	
35.

	
Party B submits expense reports containing false information;

	
  

	
36.

	
Party B receives more than three written warnings by Party A during a year and refuses to take corrective actions after the warnings;

	
  

	
37.

	
Party B causes losses to the Company in excess of RMB 5,000 due to breach of duty, production of scrap products, damages to equipment, and waste of materials and energy;

	
  

	
38.

	
If Party B is absent from work for 7 consecutive days (including weekend) or absent for a total of 30 days (including weekend) during a year, the Contract may be terminated unilaterally by Party A. Party B shall be deemed absent if:

	
  

	
(1)

	
Party B refuses to enter and work in the working location or the assigned working areas;

	
  

	
(2)

	
Party B’s supervisor confirms that Party B fails to carry perform tasks specified in the Contract or assigned to him in the working location or the assigned working areas;

	
  

	
(3)

	
after the expiration of authorized leaves, Party B fails to return to work in the working location or the assigned working areas without permission;

	
  

	
39.

	
Party B commits other serious violations of the Company’s regulations.

Article 23 Party A may terminate the Contract under any of the following circumstances by giving Party B a 30 days prior written notice or one month’s wages in lieu of notice:

	
  

	
1.

	
where Party B is unable to resume his original work nor engage in other work arranged for him by Party A after the expiration of the prescribed medical treatment period for an illness or non-work-related injury;

	
  

	
2.

	
where Party B is incompetent and remains incompetent after training or adjustment of his position; or

	
  

	
3.

	
a material change to the objective circumstances relied upon at the time of conclusion of the Contract renders it impossible for the parties to perform and, after consultation, the Parties are unable to reach an agreement on amending the Contract.

  

  

  

 

Article 24 The Contract is terminated if:

1.           the contract term expires;

2.           Party B is entitled to basis old-age insurance pension in accordance with the law;

3.           Party B is deceased, or is declared dead or missing by a people’s court;

4.           Party A is declared bankrupt in accordance with the law;

5.           Party A has its business license revoked, is ordered to close or is closed down, or decides on early dissolution; or

6.           other circumstances stipulated by laws or administrative regulations arise.

	
IX. 

	
Economic Compensation

Article 25 Party A shall not make compensation unless required by Article 46 of Labor Law;

Article 26 If Party B fails to abide by the confidentiality terms in this contract or terminates the contract in violation of the terms of this contract, causing losses to Party A, Party B must undertake the liability of compensation.

Article 27 If Party B has signed a service period agreement for specified training arrangement, Party B shall compensate Party A when terminating the contract. The detailed terms of compensation shall be specified in the training agreement.

Article 28 If Party B’s fault or misconduct causes losses to Party A, Party B must undertake the liability of compensation.

	
X. 

	
Dispute and arbitration

Article 29 Should any dispute occur during performance of the contract, either party hereto may submit the dispute to a local labor dispute arbitration committee having jurisdiction over Party A for arbitration. If one of the parties is not satisfied with the adjudication of arbitration, the party may bring the case to a people’s court.

	
XI. 

	
Delivery of Document

Article 30 The operating location and residential address confirmed by both parties in the contract are the mailing addresses for official documents. Any changes to the contract may be mailed to the confirmed addresses and each party shall take the responsibility for not providing the correct address information. Any document sent without return in 7 days after sending out will be deemed as delivered.

  

	
XII. 

	
Others

Article 31 Party B represents and warrants that all personal data including educational and experience, ID, family background provided are true. In the event of any discrepancy discovered by Party A, Party A has the right to cancel the contract without paying any compensation.

  

  

  

 

Article 32 Party B shall inform Party A of any misconduct which resulted in punishment or termination by ex-employers. Party A has the right to terminate the contract with no compensation payment during the probation period if such information is not disclosed.

Article 33 Party B will provide relevant documents required for recruitment within 30 days. Party A has the right to cancel the contract during the probation period if such documents are not provided timely.

Article 34 Party B shall inform Party A of any poor credit history such as rejection of loan by a bank etc. Party A has the right to cancel the contract with no compensation payment during the probation period if an investigation reveals such information.

Article 35 Rules and regulations and employee handbook received and signed by Party B is part of this contract and had equal legal effect.

Article 36 Recruitment standard provided by Party A is part of this contract.

Article 37 Matters not covered herein may be agreed upon by the Parties in supplemental agreements.

Article 38 This contract is made in triplicate and comes into effect after signed by both parties. Party B holds two copies and Party A holds one copy. All three copies have equal legal effect.

 

Party A: Perfectenergy Shanghai Ltd

Operation Address: 479 You Dong Road

Zip Code: 201100

Party B: Zheng Hui

Home address: ShuiCheng Road XXX, Shanghai

Zipe Code: 200336

Date: July 4, 2011

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}]]