Document:

Exhibit 10.14

 

FORM INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made as of      , by and between GDS Holdings Limited, a Cayman Islands company (the “Company”), and                 (the “Indemnitee”), [a director/an executive officer] of the Company.

 

WHEREAS, the Indemnitee has agreed to serve as [a director/an executive officer] of the Company and in such capacity will render valuable services to the Company; and

 

WHEREAS, in order to induce and encourage highly experienced and capable persons such as the Indemnitee to serve as directors and officers of the Company, the board of directors of the Company (the “Board”) has determined that it is reasonably prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons;

 

NOW, THEREFORE, in consideration of the premises and mutual agreements hereinafter set forth, and other good and valuable consideration, including, without limitation, the service of the Indemnitee, the receipt of which hereby is acknowledged, and in order to induce the Indemnitee to serve, or continue to serve, as [a director/an executive officer] of the Company, the Company and the Indemnitee hereby agree as follows:

 

1.                                      Definitions. As used in this Agreement:

 

a.                                      “Change in Control” shall mean any of the following:

 

(i)                                     any “person” (as such term is used in Sections 13(d) and 14(d) of the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (collectively, the “Act”)), but excluding (1) the Company, (2) any trustee or other fiduciary holding securities pursuant to an employee benefit or welfare plan or employee share plan of the Company or any subsidiary or affiliate of the Company, or any entity organized, appointed, established or holding securities of the Company with voting power for or pursuant to the terms of any such plan and (3) any entity owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 45% or more of the combined voting power of the Company’s then outstanding securities without the prior approval of at least majority of the directors in office immediately prior to such person’s attaining such interest;

 

(ii)                                  any merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the Board or other governing body of such surviving entity;

 

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(iii)                               the approval by the shareholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company, in one transaction or a series of related transactions, of all or substantially all of the Company’s assets;

 

(iv)                              any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item or any similar or successor schedule or form) promulgated under the Act whether or not the Company is then subject to such reporting requirements; and

 

(v)                                 during any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 1(a)(i), 1(a)(iii) or 1(a)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a least a majority of the members of the Board.

 

b.                                      “Disinterested Director” with respect to any request by the Indemnitee for indemnification or advancement of expenses hereunder shall mean a director of the Company who neither is nor was a party to the Proceeding (as defined below) in respect of which indemnification or advancement is being sought by the Indemnitee.

 

c.                                       The term “Expenses” shall mean any expense, liability or loss, including, without limitation, damages, judgments, fines, penalties, settlements (if, and only if, such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) and costs, attorneys’ fees and disbursements and costs of attachment or similar bond, investigations, liabilities, losses, taxes, any expense paid or incurred in connection with investigating, defending, being a witness in, participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding, and any taxes, interests, assessments or other charges imposed as a result of the actual or deemed receipt of any payment under this Agreement.

 

d.                                      The term “Independent Legal Counsel” shall mean any firm of attorneys that:

 

(i)                                     if a Change in Control shall not have occurred, shall be selected by the Board, and the Company shall give written notice to the Indemnitee advising him of the identity of the Independent Legal Counsel so selected, or

 

(ii)                                  if a Change in Control shall have occurred, shall be selected by the Indemnitee (unless the Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and the Indemnitee shall give written notice to the Company advising it of the identity of the Independent Legal Counsel so selected,

 

so long as such firm is not presently representing and has not in the preceding five (5) years represented the Company, the Company’s subsidiaries or affiliates, the Indemnitee, any entity controlled by the Indemnitee, or any party adverse to the Company in any matter material to any such party (other than with respect to matters concerning the Indemnitee under this  Agreement, or of other indemnitees under similar indemnification agreements). Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee’s right to indemnification or advancement of expenses under this Agreement, the Company’s Amended and Restated Memorandum and Articles of Association (the “Articles”), which became effective immediately after the Company’s initial public offering, applicable law or otherwise. The Company agrees to pay the reasonable fees and expenses of the Independent Legal Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

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e.                                       The term “Proceeding” shall mean any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, hearing or any other proceeding (including, without limitation, an appeal therefrom), formal or informal, whether brought in the name of the Company or otherwise, whether of a civil, criminal, administrative or investigative nature, and whether by, in or involving a court or an administrative, other governmental or private entity or body (including, without limitation, an investigation by the Company or its Board), in which the Indemnitee was, is or will be involved as a party or otherwise, by reason of (i) the fact that the Indemnitee is or was a director (or a director appointee) or an executive officer of the Company, or is or was serving at the request of the Company as an agent of another enterprise, (ii) any actual or alleged act or omission or neglect or breach of duty, including, without limitation, any actual or alleged error or misstatement or misleading statement, which the Indemnitee commits or suffers while acting in any such capacity, or (iii) the Indemnitee attempting to establish or establishing a right to indemnification or advancement of expenses pursuant to this Agreement, the Articles, applicable law or otherwise, in each case whether or not the Indemnitee is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement.

 

f.                                        The phrase “serving at the request of the Company as an agent of another enterprise” or any similar terminology shall mean, unless the context otherwise requires, serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, limited liability company, trust, employee benefit or welfare plan or other enterprise, foreign or domestic. The phrase “serving at the request of the Company” shall include, without limitation, any service as a director or an executive officer of the Company which imposes duties on, or involves services by, such director or executive officer with respect to the Company or any of the Company’s subsidiaries, affiliates, employee benefit or welfare plans, such plan’s participants or beneficiaries or any other enterprise, foreign or domestic. In the event that the Indemnitee shall be a director, officer, employee or agent of another corporation, partnership, joint venture, limited liability company, trust, employee benefit or welfare plan or other enterprise, foreign or domestic, 50% or more of the ordinary shares, combined voting power or total equity interest of which is owned by the Company or any subsidiary or affiliate thereof, then it shall be presumed conclusively that the Indemnitee is so acting at the request of the Company.

 

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2.                                      Indemnification. Subject to Section 6 below, the Company hereby agrees to hold harmless and indemnify the Indemnitee to the fullest extent permitted by law, as such may be amended from time to time. In furtherance of the foregoing indemnification and without limiting the generality thereof:

 

a.                                      Proceedings by or in the Right of the Company. The Company shall indemnify the Indemnitee if the Indemnitee is a party to or threatened to be made a party to or is otherwise involved in any Proceeding by or in the right of the Company to procure a judgment in its favor against all Expenses which are actually and reasonably incurred by the Indemnitee in connection with such a Proceeding, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company; except that no indemnification under this subsection shall be made in respect of any claim, issue or matter as to which the Indemnitee shall have been adjudicated by final and non-appealable judgment by a court of competent jurisdiction to be liable to the Company for dishonesty, willful default or fraud in the performance of his/her duty to the Company, unless and only to the extent that the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such amounts which such court shall deem proper.

 

b.                                      Proceedings Other than Proceedings by or in the Right of the Company. The Company shall indemnify the Indemnitee if the Indemnitee is a party to or threatened to be made a party to or is otherwise involved in any Proceeding (other than a Proceeding by or in the right of the Company) against all Expenses which are actually and reasonably incurred by the Indemnitee in connection with such a Proceeding, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company.

 

c.                                       Indemnification for Expenses of Witness. Notwithstanding any other provision of this Agreement, to the extent that the Indemnitee, has prepared to serve or has served as a witness or is made to respond to discovery requests in any Proceeding to which the Indemnitee is not a party, the Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee in connection therewith.

 

d.                                      Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses incurred in connection with any Proceedings, but not, however, for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

 

3.                                      Contribution. If the indemnification provided in Section 2 above is unavailable to Indemnitee for any reason (other than those set forth in Section 6 below) in connection with a Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company, in lieu of indemnifying Indemnitee thereunder, shall contribute to the amount of Expenses which are actually and reasonably incurred and paid or payable by the Indemnitee in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and the Indemnitee and/or (ii) the relative fault of the Company and such Indemnitee in connection with the transaction or events from which such Proceeding arose. The relative fault of the Company and the Indemnitee shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses.

 

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4.                                      Advancement of Expenses. The Expenses incurred by the Indemnitee in any Proceeding shall be paid promptly by the Company in advance of the final disposition of the Proceeding at the written request of the Indemnitee to the fullest extent permitted by applicable law; provided, however, that the Indemnitee shall set forth in such request reasonable evidence that such Expenses have been incurred by the Indemnitee in connection with such Proceeding and an undertaking in writing to repay any advances if it is ultimately determined as provided in subsection 5(b) of this Agreement that the Indemnitee is not entitled to indemnification under this Agreement, the Articles, applicable law or otherwise.

 

5.                                      Indemnification Procedure; Determination of Right to Indemnification.

 

a.                                      Promptly after receipt by the Indemnitee of notice of the commencement of any Proceeding, the Indemnitee shall, if a claim for indemnification in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof in a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The omission to so notify the Company will not relieve the Company from any liability which the Company may have to the Indemnitee under this Agreement unless the Company shall have lost significant substantive or procedural rights with respect to the defense of any Proceeding as a result of such omission to so notify.

 

b.                                      The Indemnitee shall be conclusively presumed to be entitled to indemnification under this Agreement unless a determination is made that the Indemnitee is not entitled to indemnification under this Agreement, the Articles, applicable law or otherwise by one of the following two methods, which, if there has not been a Change in Control, shall be at the election of the Board: (i) by a majority vote of the Board of a quorum consisting of Disinterested Directors or (ii) if a quorum of the Board consisting of Disinterested Directors is not obtainable or, even if obtainable, said Disinterested Directors so direct, by Independent Legal Counsel in a written opinion to the Board, a copy of which shall be delivered to the Indemnitee. If a Change in Control shall have occurred and the Indemnitee so requests in writing, such determination shall be made only by Independent Legal Counsel in the manner set forth in this subsection.

 

c.                                       If (i) a determination is made that the Indemnitee is not entitled to indemnification under this Agreement or (ii) a claim for indemnification or advancement of Expenses under this Agreement is not paid by the Company within thirty (30) days after receipt by the Company of written notice thereof, the Indemnitee is entitled to an adjudication in any court of competent jurisdiction. Such judicial proceeding shall be made de novo. The burden of proving that indemnification or advances are not appropriate shall be on the Company. Neither the failure of the directors of the Company or Independent Legal Counsel to have made a determination prior to the commencement of such action that indemnification or advancement of Expenses is proper in the circumstances because the Indemnitee has met the applicable standard of conduct, if any, nor an actual determination by the directors of the Company or Independent Legal Counsel that the Indemnitee has not met the applicable standard of conduct shall be a defense to an action by the Indemnitee or create a presumption for the purpose of such an action that the Indemnitee has not met the applicable standard of conduct. The termination of any Proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself (i) create a presumption that the Indemnitee did not act in good faith and in a manner which he reasonably believed to be in the best interests of the Company and/or its shareholders, and, with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that his conduct was unlawful or (ii) otherwise adversely affect the rights of the Indemnitee to indemnification or advancement of Expenses under this Agreement, except as may be provided herein.

 

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d.                                      If a court of competent jurisdiction shall determine that the Indemnitee is entitled to any indemnification or advancement of Expenses hereunder, the Company shall pay all Expenses actually and reasonably incurred by the Indemnitee in connection with such adjudication (including, but not limited to, any appellate proceedings).

 

e.                                       With respect to any Proceeding for which indemnification or advancement of Expenses is requested, the Company will be entitled to participate therein at its own expense and, except as otherwise provided below, to the extent that it may wish, the Company may assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee. After notice from the Company to the Indemnitee of its election to assume the defense of a Proceeding, the Company will not be liable to the Indemnitee under this Agreement for any Expenses subsequently incurred by the Indemnitee in connection with the defense thereof, other than as provided below. The Company shall not settle any Proceeding in any manner which would impose any penalty or limitation on the Indemnitee without the Indemnitee’s written consent. The Indemnitee shall have the right to employ his own counsel in any Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense of the Proceeding shall be at the expense of the Indemnitee, unless (i) the employment of counsel by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense of a Proceeding, or (iii) the Company shall not in fact have employed counsel to assume the defense of a proceeding, in each of which cases the fees and expenses of the Indemnitee’s counsel shall be advanced by the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which the Indemnitee has reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee.

 

f.                                        Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee’s power, provided that any costs or expenses (including attorneys’ fees and disbursements) incurred by the Indemnitee in so cooperating shall be borne by the Company (irrespective of the determination as to the Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold the Indemnitee harmless therefrom. Subject to Section 3, the Company shall not be liable to indemnify the Indemnitee under this Agreement with regard to any judicial action if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense, conduct and/or settlement of such action.

 

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6.                                      Limitations on Indemnification. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against the Indemnitee:

 

a.                                      in connection with any Proceeding initiated or brought voluntarily by the Indemnitee and not by way of defense, unless (i) the Board authorized the Proceeding prior to its initiation or (ii) the Proceeding is to enforce indemnification rights under this Agreement, the Articles, applicable law or otherwise and either (A) Indemnitee is successful in such Proceeding in establishing Indemnitee’s right, in whole or in part, to indemnification or advancement of Expenses hereunder (in which case such indemnification or advancement shall be to the fullest extent permitted by this Agreement) or (B) the court in such Proceeding shall determine that, despite Indemnitee’s failure to establish his or her right to indemnification, Indemnitee is entitled to indemnity for such expenses (in which case such indemnification or advancement shall be to the extent provided by such court);

 

b.                                      in connection with the Indemnitee preparing to serve or serving, prior to a Change in Control, as a witness in voluntary cooperation with any non-governmental or non­regulatory party or entity who or which has threatened or commenced any action or proceeding against the Company, or any director, officer, employee, trustee, agent, representative, subsidiary, parent corporation or affiliate of the Company, but such indemnification may be provided by the Company if the Board finds it to be appropriate;

 

c.                                       for which payment has actually been made to the Indemnitee under a valid and collectible insurance policy, except in respect of any excess beyond the amount of payment under such insurance policy;

 

d.                                      for an accounting of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Act or similar provisions of any foreign or United States federal, state or local statute or regulation;

 

e.                                       for which the Indemnitee is indemnified and actually paid other than pursuant to this Agreement;

 

f.                                        for conduct that is finally adjudged by a court of competent jurisdiction to have been caused by the Indemnitee’s dishonesty, wilful default or fraud, including, without limitation, breach of the duty of loyalty, unless and only to the extent that the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such amounts which such court shall deem proper;

 

g.                                       if a court of competent jurisdiction finally determines that such indemnification is unlawful. In this respect, the Company and the Indemnitee have been advised that the Securities and Exchange Commission (the “SEC”) takes the position that indemnification for liabilities arising under securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication;

 

h.                                      in connection with the Indemnitee’s personal tax matters;

 

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i.                                          subject to the proviso in Section 6(a) hereof, in connection with any dispute or breach arising under any contract or similar obligation between the Company or any of its subsidiaries or affiliates and such Indemnitee; or

 

j.                                         in connection with any reimbursement made by Indemnitee to the Company pursuant to Section 304 of the Sarbanes­Oxley Act of 2002 (the “Sarbanes­Oxley Act”), Section 306 of the Sarbanes­Oxley Act or Section 954 of the Dodd—Frank Wall Street Reform and Consumer Protection Act and the rules promulgated by the SEC thereunder.

 

7.                                      Insurance. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, the Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a Proceeding pursuant to the terms hereof, the Company has directors’ and officers’ insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

 

8.                                      No Employment Rights. Nothing in this Agreement is intended to create in the Indemnitee any right to continued employment with the Company.

 

9.                                      Continuation of Indemnification. All agreements and obligations of the Company contained herein shall continue during the period that the Indemnitee is [a director/an executive officer] of the Company (or is or was serving at the request of the Company as an agent of another enterprise, foreign or domestic) and shall continue thereafter so long as the Indemnitee shall be subject to any Proceeding by reason of the fact that the Indemnitee is or was [a director/an executive officer] of the Company or is or was serving in any other capacity referred to in this Section 9. This Agreement shall continue in effect regardless of whether the Indemnitee continues to serve as [a director/an executive officer] of the Company or as an agent of another enterprise at the Company’s request.

 

10.                               Indemnification Hereunder Not Exclusive. The indemnification provided by this Agreement shall not be deemed to be exclusive of any other rights to which the Indemnitee may be entitled under the Articles, any agreement, vote of shareholders or vote of Disinterested Directors, provisions of applicable law, or otherwise, both as to action or omission in the Indemnitee’s official capacity and as to action or omission in another capacity on behalf of the Company while holding such office.

 

11.                               Other Indemnity Agreement. Other than this Agreement, the Company has not entered into as of the date hereof, and shall not enter into following the date hereof, any indemnification agreement or side letter or other similar agreement or arrangement (collectively, an “Indemnity Agreement”), or amend any existing Indemnity Agreement, with any existing or future director/executive officer of the Company that has the effect of establishing rights or otherwise benefiting such director/executive officer in a manner more favorable in any respect than the rights and benefits established in favor of the Indemnitee by this Agreement, unless, in each such case, the Indemnitee is offered the opportunity to receive the rights and benefits of such Indemnity Agreement. All Indemnity Agreements shall be in writing.

 

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12.                               Assignment; Successors and Assigns. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party thereto without the prior written consent of the other party, except that the Company may, without such consent, assign all such rights and obligations to a successor in interest to the Company which assumes all obligations of the Company under this Agreement in a written agreement in form and substance satisfactory to the Indemnitee. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of and be enforceable by and against the parties hereto and the Company’s successors (including any direct or indirect successor by purchase, merger, consolidation, or otherwise to all or substantially all of the business and/or assets of the Company) and assigns, as well as the Indemnitee’s spouses, heirs, and personal and legal representatives.

 

13.                               Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

14.                               Severability. Each and every section, sentence, term and provision of this Agreement is separate and distinct so that if any section, sentence, term or provision thereof shall be held to be invalid, unlawful or unenforceable for any reason, such invalidity, unlawfulness or unenforceability shall not affect the validity, lawfulness or enforceability of any other section, sentence, term or provision hereof. To the extent required, any section, sentence, term or provision of this Agreement may be modified by a court of competent jurisdiction to preserve its validity and to provide the Indemnitee with the broadest possible indemnification permitted under applicable law. The Company’s inability, pursuant to a court order or decision, to perform its obligations under this Agreement shall not constitute a breach of this Agreement.

 

15.                               Savings Clause. If this Agreement or any section, sentence, term or provision hereof is invalidated on any ground by any court of competent jurisdiction, the Company shall nevertheless indemnify the Indemnitee as to any Expenses which are incurred with respect to any Proceeding to the fullest extent permitted by any (a) applicable section, sentence, term or provision of this Agreement that has not been invalidated or (b) applicable law.

 

16.                               Interpretation; Governing Law. This Agreement shall be construed as a whole and in accordance with its fair meaning and any ambiguities shall not be construed for or against either party. Headings are for convenience only and shall not be used in construing meaning. This Agreement shall be governed and interpreted in accordance with the laws of Hong Kong without regard to the conflict of laws principles thereof. Each of the parties to this Agreement irrevocably agrees that any dispute, controversy or claim arising out of or in connection with this Agreement (including any issue as to the existence, validity, interpretation, construction, performance, breach or termination of this Agreement) (the “Dispute”), shall be referred to and finally resolved by binding arbitration administered by the Hong Kong International Arbitration Centre in accordance with the HKIAC Administered Arbitration Rules (the “Rules”), as amended and supplemented from time to time in force when the notice of arbitration is submitted in accordance with these Rules, which Rules are deemed to be incorporated by reference into this section and as may be amended by the rest of this section.  The arbitration tribunal shall consist of three (3) arbitrators (the “Tribunal”).  The parties agree that the three arbitrators can be selected from outside the HKIAC’s panel(s) of arbitrators. The claimant and the respondent shall each designate one (1) arbitrator in accordance with the Rules.  The HKIAC shall appoint the third and presiding arbitrator, who shall be qualified to practice Law in Hong Kong.  The seat of the arbitration shall be Hong Kong.  The language of the arbitration proceedings shall be English.  Any award of the Tribunal shall be made in writing and shall be final, conclusive and binding on the parties to the arbitration from the day it is made.  Nothing in this Section 16 shall be construed as preventing any party from seeking conservatory or interim relief from any court of competent jurisdiction.

 

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17.                               Amendments. No amendment, waiver, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by the party against whom enforcement is sought. The indemnification rights afforded to the Indemnitee hereby are contract rights and may not be diminished, eliminated or otherwise affected by amendments to the Articles, or by other agreements, including directors’ and officers’ liability insurance policies, of the Company.

 

18.                               Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each party and delivered to the other.

 

19.                               Notices. Any notice required to be given under this Agreement shall be directed to the General Counsel of the Company at c/o GDS Holdings Limited, 2/F, Tower 2, Youyou Century Place, 428 South Yanggao Road, Pudong, Shanghai 200127, P.R.C., and to the Indemnitee at or to such other address as the Indemnitee shall designate to the Company in writing.

 

20.                               Entire Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

 

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

 

	
 
    	
GDS   HOLDINGS LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INDEMNITEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    

 

11Exhibit 10.15

 

[DATE]

 

[NAME] 
 Present

 

Dear [NAME],

 

Re: Offer of Employment

 

We are pleased to extend our offer of employment to you. This letter agreement (the “Agreement”) sets forth the terms and conditions of your employment with              (the “Company”) and/or any of the affiliates of the Company’s ultimate parent company GDS Holdings Limited (together, the Company and other affiliates of GDS Holdings Limited are referred to herein as the “Group”)

 

1.                                      DUTIES

 

1.1                               You shall be employed as           . Your job grade is             . You will be based in            , and will report to             

 

1.2                               You shall diligently and faithfully perform all duties required in your position. You shall devote your full time, effort and attention to the performance of your duties and shall act in all respects in accordance with the instructions and directions given to you by your immediate supervisor.

 

1.3                               You will be subject to, and must comply with, the provisions of the Company’s policies, rules and regulations implemented from time to time during the course of your employment, including organizational changes affecting your title, responsibilities and reporting structure.

 

1.4                               You shall not commit any act which shall prejudice or is detrimental to the Company’s reputation or business.

 

2.                                      TERM OF EMPLOYMENT

 

Your employment shall commence on a date to be agreed to between you and the Company (the “Effective Date”), which shall be no later than               , and will continue on an at-will basis unless terminated in accordance with the terms of this Agreement. However, this offer of employment is conditional upon the check of references by the Company to its satisfaction and the successful application of [            Visa (if necessary)].

 

3.                                      REMUNERATION

 

Base Salary

 

3.1                               Your base salary will be              per month and payable monthly on a 12-month basis in accordance with the Company’s customary payroll practices as in effect from time to time.

 

Discretionary Bonus

 

3.2                               The Company will take into account your performance and contribution to the Company’s business, as well as the financial performance of the Company’s business, in determining whether you will receive any bonus and the amount thereof.

 

 

Employee Stock Option/RSs/RSUs (if any)

 

3.3                               The terms and conditions governing your share options/RSs/RSUs granted under your previous employment in          shall remain unchanged. Such options/RSs/RSUs shall continue to be governed by the terms and conditions under the applicable Option/RS/RSU award notice and agreement.

 

Performance-Based Equity Compensation

 

3.4                               Subject to existing policies of the Group then in effect, you may be eligible for additional equity-based awards, such as options or RSs or RSUs, based on your performance, generally on an annual basis. Such awards will be determined at our sole discretion and the terms and conditions of such awards will be subject to the relevant plans and agreements governing such award.

 

Deductions and Off-Set

 

3.5                               All payments made to you will be subject to normal withholding and deductions including but not limited to mandatory pension and other contributions and individual income tax, if required by law. If at any time money is owed and payable by you to the Group whether under the provisions of this Agreement or otherwise, you agree that the Group may deduct the sum or sums from time to time owing to the Group from any payment due to you under this Agreement.

 

4.                                      ANNUAL LEAVE

 

4.1                               The number of paid annual leave that you will be entitled to will be subject to the government regulation and Company’s policy (which may be amended from time to time in our sole discretion). The number of paid annual leave under government regulation  and current policy of the Company applicable to you based in       is       days.   You shall otherwise observe the public holiday/work day schedule applicable in       . Any holiday shall be taken at such times as your immediate supervisor shall approve having regard to the commercial requirements of the Company’s business. If your employment commences or terminates part way through any calendar year, your holiday entitlement for that year shall be assessed on a pro rata basis.

 

4.2                               Upon termination of employment,

 

(a)                                 we shall be entitled to make deductions from your final pay for any annual holiday taken in excess of your annual holiday entitlement; and

 

(b)                                 you shall be entitled to payment in lieu of any unused annual holiday entitlement.

 

 

5.                                      SUPPLIMENTARY BENEFTIS

 

On the first day of employment, you shall be entitled to have supplementary benefits per Company’s policy, which may be amended from time to time.

 

6.                                      RESTRICTION ON OTHER EMPLOYMENT

 

During your employment with the Company, you may not without our prior written consent engage in any form of business or employment other than your employment with the Company, whether inside or outside your normal hours of work. At no time shall you engage, whether directly or indirectly, in any activity that is or may be in conflict with, or that might place you in a position of conflict with the Company. You shall adhere to the Company’s policies with respect to ethical code of conduct, conflict of interest and business opportunities.

 

7.                                      INTELLECTUAL PROPERTY

 

You acknowledge and agree that all intellectual or creative property discovered or developed by you during the course of your employment, including but not limited to form of documents, agreements, business models, business plans, marketing plans, financial forecasts and models, computer programs, codes (whether source codes or object codes), algorithms, know-how, formulas, processes, ideas, inventions (whether patentable or not), schematics and other technical, business, marketing, financial and product development plans, forecasts, strategies and information (collectively, the “Intellectual Property”) shall belong to the Group. The Intellectual Property shall be deemed to originate in the course of your employment and termination of your employment shall not divest the Group of exclusive ownership of any such Intellectual Property. You shall, at any time during the term of this Agreement or at any time thereafter, assist the Group in obtaining and maintaining any patent, copyright, trademark or other protection for the Intellectual Property in any country. You agree to execute an inventions assignment agreement or any other document in order to achieve the purposes of this Section 7.

 

8.                                      CONFIDENTIALITY

 

8.1                               You acknowledge that in the course of your employment, you will have access to and be entrusted with information with respect to the business, operations, legal matters, financial standing, shareholding and corporate structure, contractual agreements, technology, infrastructure, transactions, affairs, ideas, concepts, know-how, methodologies and trade secrets of the Group, our shareholders, customers or business partners, all of which information is or may be confidential.

 

 

8.2                               You hereby agree that you shall not (except in connection with the proper discharge of your duties) during or after the period of your employment divulge to any party or otherwise make use of (and shall use your best efforts to prevent the publication or disclosure of) any trade secret or any confidential information of the Group, our shareholders, customers or business partners, including without limitation, the Intellectual Property.

 

8.3                               You agree to execute any confidentiality agreement or any other document relating to the protection of such confidential information as may from time to time be required by the Group, our shareholders, customers or business partners.

 

8.4                               All notes, files and documentation, whether in paper or electronic form, containing any of the Group’s trade secrets or confidential information which are acquired, received or made by you during the course of your employment and all personal property, including without limitation, all books, manuals, records, reports, notes, contracts, lists, blueprints and other documents or materials, or copies thereof, and equipment furnished to or prepared by you during the course of your employment and containing any of the Group’s trade secrets or confidential information shall remain the property of the Group, and you shall surrender the same to a designated person of the Group at the termination of your employment or at the request of the Group at any time during the course of your employment.

 

9.                                      NON-COMPETITION

 

9.1                               You hereby covenant that during your employment, you shall not be engaged or interested (whether as a director, shareholder (except as ownership of shares in public traded companies for portfolio investment purposes), agent, partner or employee) in any business concern of whatever kind which shall be in competition with the Group.

 

9.2                               You hereby represent that as of the Effective Date, you are not and will not be subject to, by virtue of becoming an employee of the Company, any non-compete obligation with respect to any third party.

 

10.                               NON-SOLICITATION

 

10.1                        You hereby covenant that during the term of your employment and for a period of twelve (12) months after the termination of your employment, you shall not, either on your own behalf or on behalf of any third party, canvass, solicit or approach any person, firm or company who was a customer of or was in any business arrangement with the Group.

 

10.2                        You hereby covenant that during your employment and for a period of twelve (12) months after the termination of your employment, you shall not, either on your own behalf or on behalf any third party, solicit or entice or endeavor to solicit or entice away any employee of the Group.

 

 

11.                               TERMINATION

 

11.1                        The employment contract can be terminated by the Company and you after mutual agreement.

 

11.2                        Thirty (30) days’ written notice is required if you want to terminate the employment contract.

 

11.3                        The Company shall have the right to terminate your employment immediately without compensation for Cause or upon any other ground pursuant to any applicable employment law. For purposes of this Agreement, “Cause” means:

 

(i)                                     the commission by you of an act of theft, embezzlement, fraud, dishonesty, ethical breach or other similar acts, or commission of any criminal offence;

 

(ii)                                  a material breach of any agreement or understanding between you and the Group including, without limitation, any applicable invention assignment, employment, non-competition, confidentiality or other similar agreement;

 

(iii)                               misrepresentation or omission of any material fact in connection with your employment;

 

(iv)                              a material failure to perform your duties, to obey a reasonable direction of a supervisor or to abide by the policies or codes of conduct of the Company; or

 

(v)                                 any conduct that is materially adverse to the name, reputation or interests of the Group.

 

11.4                        Following termination of your employment, you shall fully cooperate with us in all matters relating to the winding up of pending work and the orderly transfer of work to other employees of the Company. All books, manuals, records, reports, plans, presentations, financial and operating data, notes, contracts, lists, blueprints and other documents or materials regarding the business of the Group, and equipment furnished to you in the course of or incident to your employment, shall be the property of the Company (the “Company Property”). You shall not remove any Company Property at any time without proper advance authorization and shall return all Company Property in your possession or under your control to designated persons of the Company upon termination of your employment.

 

12.                               EMPLOYING ENTITY; INTRA-GROUP TRANSFERS

 

You agree that you may be required to enter into legal employment relationships with one or more of the affiliates within the Group in order to achieve the purposes of this Agreement based on the terms and conditions herein. We may, from time to time, transfer your employment to any of the affiliates within the Group provided that all periods of employment with any affiliate within the Group shall count as a continuous period of service.

 

 

13.                               PROVISIONS SURVIVING TERMINATION

 

The termination of your employment shall not terminate those provisions of this Agreement which impose a continuing obligation on you after such termination.

 

14.                               ACKNOWLEDGEMENTS

 

14.1                        You acknowledge that you have carefully reviewed all the terms and obligations contained in this Agreement and understand fully the character and extent of the restrictions and obligations imposed upon you during and after the term of your employment. You hereby expressly agree that the restrictions and obligations are reasonable and are necessary for the proper protection of the Company.

 

14.2                        You agree that if any one or more of such restrictions shall be judged to be void as going beyond what is reasonable in the circumstances for the protection of the Company but would be valid if words were deleted therefrom or if the restriction periods were shortened, such restrictions shall apply with such modifications as may be necessary to make them valid and effective and any such modification shall not thereby affect the validity of any other restriction contained herein.

 

14.3                        The provisions herein shall not preclude any party from injunctive or other relief for any breach of any term of this Agreement.

 

15.                               GENERAL

 

15.1                        In the event that any of the provisions of this Agreement shall be determined to be invalid, void or unenforceable, such provision shall be deemed to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force and effect.

 

15.2                        This Agreement is personal to you and cannot be assigned to any third party.

 

15.3                        This Agreement may be signed and accepted in counterparts and by the parties on separate counterparts, each of which when executed shall be an original but all counterparts shall together constitute one and the same document.

 

15.4                        Unless stated otherwise in this Agreement, this Agreement, any inventions assignment and confidentiality agreement, the Non-Competition Agreement and the Award Notice and Agreement shall constitute the entire agreement between us and supersede all previous communications, representations and agreements, whether oral or written, with respect to the subject matter of this Agreement.

 

15.5                        This Agreement shall be governed by the laws of [the Hong Kong Special Administrative Region].

 

 

We are excited that you will be joining us, and we very much look forward to working with you.

 

 

	
Yours   faithfully,
    	
 
    
	
[Name   of the company]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[NAME]
    	
 
    
	
[TITLE]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
To: [Name of the company]
    	
 
    

 

I have read and understood the terms of the above Agreement and hereby accept such terms as stated.

 

	
 
    	
 
    
	
Name:
    	
 
    

 

 

No. [   ]

 

Labor Contract

 

Party A: [Global Data Solutions Co., Ltd., Shanghai Branch]

 

	
Party B:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date of Signing:
    	
 
    	
 
    
					

 

 

Party A: [Global Data Solutions Co., Ltd., Shanghai Branch]

Legal Representative: Huang Wei

Company Address: 2/F, Building 2, 428 Yanggao South Road, Pudong New District, Shanghai

Telephone: 021-2033 0303

Facsimile: 021-2033 0202

 

Party B:                               Sex:                       Age:                              

ID No.:                                           

Current Address:                                          

Address under Residence Certificate:                                    

Telephone:                         

Contact Person for Emergency:                                    

His/her Telephone:                                 

 

Party A and Party B have, through equal negotiations, entered into this Labor Contract based on willingness and in accordance with the Labor Law of the People’s Republic of China, and agree to comply with all terms of this Contract.

 

 

Table of Contents

 

	
Chapter 1 Employment   Term and Documents Forming Contract
    	
1
    
	
Chapter 2 Description   of Job
    	
1
    
	
Chapter 3 Labor   Protection and Working Conditions
    	
1
    
	
Chapter 4 Compensation   (as set forth in Offer Letter)
    	
2
    
	
Chapter 5 Social   Security and Welfares and Benefits
    	
2
    
	
Chapter 6 Labor   Disciplines
    	
3
    
	
Chapter 7 Novation and   Termination of Labor Contract
    	
3
    
	
Chapter 8 Termination   and Renewal of Labor Contract
    	
5
    
	
Chapter 9 Economic   Compensatory Payments and Indemnities
    	
6
    
	
Chapter 10 Additional   Clauses
    	
7
    
	
Chapter 11 Labor   Dispute and Miscellaneous
    	
8
    
	
Renewal Agreement to   Labor Contract
    	
i
    
	
Novation Agreement to Labor   Contract
    	
ii
    
	
Instructions
    	
iii
    

 

 

Chapter 1 Employment Term and Documents Forming Contract

 

	
Article 1
    	
 
    	
This Contract is a [fixed term/open term]   employment.

 

This Contract shall become effective from               and expires as on                  .   The probation period will end as on              .   Party A has the right to shorten the probation period to convert Party B as   the formal employee.

 

The documents forming this Contract include: text of   this Contract and all Renewal Agreements and Novation Agreements, Job   Description, Offer Letter, Confidentiality/Non-compete Agreement (if any),   Training Agreement (if any), Compensation and Benefits Policy, Employee   Manual, and any regulations of Party A’s Rules and Systems (as amended   and publicized by Party A from time to time) which are applicable to this   Contract based on their natures. Party A shall have delivered the above   documents to Party B within a reasonable time prior to the formation of this   Contract.
    
	
 
    	
 
    	
 
    
	
Chapter   2 Description of Job
    
	
 
    	
 
    	
 
    
	
Article 2
    	
 
    	
The department and position of Party B are detailed   in the Offer Letter.
    
	
 
    	
 
    	
 
    
	
Article 3
    	
 
    	
Party B shall complete the duties assigned by Party   A in accordance with the job standards as set forth in the Job Description   signed by the parties and other agreements between the parties as well as   schedules for monthly performance targets and his/her performance shall be   basis for valuation of his/her work and renewal of employment.
    
	
 
    	
 
    	
 
    
	
Article 4
    	
 
    	
Party B acknowledges that during the term of this   Contract, Party B has the right to, by giving a written notice, change or   adjust the position and title of Party B to meet its demands for positions   and on the basis of Party B’s capacity, performance and job review in accordance   with Article 10 hereof.
    
	
 
    	
 
    	
 
    
	
Chapter   3 Labor Protection and Working Conditions
    
	
 
    	
 
    	
 
    
	
Article 5
    	
 
    	
Party B shall adopt [Standard Working Hours   System/Comprehensively Calculated Working Hours System/Non-fixed Working   Hours System].

 

·                                Standard   Working Hours System: a 8-hour working day and a 40-hour working week   (excluding dining time);

 

·                                Comprehensively   Calculated Working Hours System: average 8-hour working day and average   40-hour working week (excluding dining time);

 

·                                If   Non-fixed Working Hours System or Comprehensively Calculated Working Hours   System is applied, the rest time will be arranged by Party A on the condition   that Party B can complete the work assignments by Party A.
    
	
 
    	
 
    	
 
    
	
Article 6
    	
 
    	
Party A may extend the working hours of Party B or arrange   extra work for Party B according to work demands. Extra work shall be   arranged in accordance with the extra work procedures set forth in Employee   Manual. The compensation base for extra work shall be the standards set forth   in Compensation and Benefits Policy and the standards for extra work pay   shall comply with the applicable laws and regulations.
    

 

1

 

	
Article 7
    	
 
    	
Party A shall provide Party B with requisite working   conditions and tools, establish sound work process, and formulate operation   specifications, work scope and safety and health systems.
    
	
 
    	
 
    	
 
    
	
Article 8
    	
 
    	
Party A shall educate Party B in respect of ethics,   working skills, safety, disciplines and rules and regulations.
    
	
 
    	
 
    	
 
    
	
Chapter   4 Compensation (as set forth in Offer Letter)  
    
	
 
    	
 
    	
 
    
	
Article 9
    	
 
    	
Party A shall pay to Party B the monthly salary in   cash on 30th of each month. The salary standards and   statutory holiday benefits shall be applied in accordance with the Offer   Letter and Compensation and Benefits Policy, in no case below the minimum   salary line cut by local government. If compensation is otherwise agreed by   the parties in any attachment, such attachment shall be applied for payment   of compensation.

 

In case of illness or non-work injury, Party B will   be paid a sick pay in accordance with the standards applicable for sick leave   as set forth in the Compensation and Benefits Policy. Party B shall provide   sick leave certificate issued by a designated medical institution.
    
	
 
    	
 
    	
 
    
	
Article 10
    	
 
    	
In case Party A will change the position of Party B   (including duties, salary (including allowances and perks) and benefits), it   shall give a 15 days prior written notice to Party B. If Party B agrees to   such change, the parties shall sign a Novation Agreement in the form attached   to this Contract. If Party B refuses to accept such change, it may terminate   this Contract in accordance with Article 24(5). Party B shall decide to   accept or refuse such change by giving a notice within 15 days of receipt of   the above notice.
    
	
 
    	
 
    	
 
    
	
Article 11
    	
 
    	
If Party B has to take a full month rest due to lack   of work volume of Party A, Party B will be paid monthly living expenses   (after deduction of mandatory social security contributions) in accordance   with the applicable laws and regulations.
    
	
 
    	
 
    	
 
    
	
Article 12
    	
 
    	
Party A has established compensation non-disclosure   policy. Party B shall comply with such policy and shall be deemed to have   committed a serious violation of labor disciplines if he/she violates these   policy and will be disciplined in accordance with the provisions set forth in   the Offer Letter and the relevant regulations of Party A.

 

Party A may, in its full discretion, grant Party B   stock incentive plans, including but not limited to stocks, stock options or   other similar rights of Party A or its shareholders and a separate agreement   shall be entered into by the parties to govern such grant plans. Party B   acknowledges and agrees that the grant of such stocks, stock options or other   similar rights shall not be a commitment of employment.
    
	
 
    	
 
    	
 
    
	
Chapter   5 Social Security and Welfares and Benefits  
    
	
 
    	
 
    	
 
    
	
Article 13
    	
 
    	
The parties shall fully pay pension, medical   insurance, unemployment insurance, work-related injury insurance, maternity   insurance and housing fund in accordance with the social security regulations   applicable nationally and at the place of employment and social security   maintenance. Party A will handle the social security issues for Party B and   withhold for Party B the social security premium and housing fund payable by   Party B.
    
	
 
    	
 
    	
 
    
	
Article 14
    	
 
    	
After this Contract is terminated or cancelled,   Party A shall handle the transfer of
    

 

2

 

	
 
    	
 
    	
personal files and social security for Party B   within seven days after request by Party B. If Party B needs to file   unemployment registration, Party A shall issue document evidencing   termination of labor contract.
    
	
 
    	
 
    	
 
    
	
Article 15
    	
 
    	
After the termination of this Contract, Party B   shall complete handover process in accordance with the regulations of Party   A. Upon completion of such handover, Party A shall handle the transfer of   social security, housing fund and personal files of Party B in accordance   with applicable regulations.
    
	
 
    	
 
    	
 
    
	
Article 16
    	
 
    	
In case of illness or non-work injury, Party B will   be entitled to medical standards as set forth by the applicable medical   insurance rules at the place of employment/social security maintenance.   In case of sick rest, a separate medical treatment period agreement shall be   signed by the parties. The medical treatment period shall be applied in   accordance with the Regulations of Medical Treatment Period for Employee   Illness or Non-work Injury.
    
	
 
    	
 
    	
 
    
	
Article 17
    	
 
    	
In case of work injury, the work injury insurance   regulations applicably nationally and at the place of employment shall be   applied to Party B.
    
	
 
    	
 
    	
 
    
	
Article 18
    	
 
    	
The female employee benefits in pregnancy, child   birth and baby nursing periods shall be applied in accordance with the   maternity insurance regulations applicable nationally and at the place of   employment.
    
	
 
    	
 
    	
 
    
	
Chapter   6 Labor Disciplines
    
	
 
    	
 
    	
 
    
	
Article 19
    	
 
    	
Party A will establish regulations and labor   disciplines in accordance with laws to meet demands of business and   operations. Party A has the right to discipline Party B for his/her   performance in work in accordance with Employee Manual and Employee Rewards   and Disciplinary Sanctions Policy. In case Party B violates the working   disciplines and other regulations of Party A, Party A may impose disciplinary   sanctions in accordance with the applicable regulations, even by terminating   this Contract.
    
	
 
    	
 
    	
 
    
	
Article 20
    	
 
    	
Party B shall fully read, understand and comply with   all regulations and policies of Party A, comply with labor safety and health   policy, production and operation specifications and working requirements,   protect assets of Party A, adhere to ethics, proactively participate in   training activities organized by Party A to improve his/her skills.
    
	
 
    	
 
    	
 
    
	
Article 21
    	
 
    	
Party B shall keep confidential Party A’s trade   secret and shall not use such trade secrets for unjust economic interests of   his/her personal or other organizations.
    
	
 
    	
 
    	
 
    
	
Article 22
    	
 
    	
Without consent of Party A, Party B shall not engage   in other employments (including part-time).
    
	
 
    	
 
    	
 
    
	
Chapter   7 Novation and Termination of Labor Contract
    
	
 
    	
 
    	
 
    
	
Article 23
    	
 
    	
Novation of Contract. Upon occurrence of any of the   following events, Party A and Party B may amend this Contract and the   employment novation shall be processed accordingly:

 

(1)         Agreement of the   parties on novation;

 

(2)         Change of compulsory   provisions of the laws and regulations applicable to this Contract;
    

 

3

 

	
 
    	
 
    	
(3)         The objective   conditions based on which this Contract was formed have changed significantly   so that the parties can’t perform this Contract and a party requests to   change the terms of this Contract. In such case, a party requesting for   change shall inform the other party of its request in writing and the other   party shall respond in writing within 15 days. The other party failing to   respond within the above period shall be deemed to refuse the request for   change.
    
	
 
    	
 
    	
 
    
	
Article 24
    	
 
    	
Termination of Contract. Upon the occurrence of any   of the following events, this Contract may be terminated:

 

(1)         Party A has the right   to terminate this Contract immediately upon occurrence of any of the following   events:

 

(a)         Party B is proven to be   unqualified for recruitment conditions within the probation period;

 

(b)         Party B is in material   violation of labor disciplines or regulations of Party A;

 

(c)          Party B commits gross   misconduct or malpractice, which causes losses to Party A;

 

(d)         Party B establishes   labor relationship with other employers and such condition has serious impact   on his/her carrying out of the tasks assigned by Party A, and he/she refuses   to correct upon demand by Party A;

 

(e)          Party B is prosecuted   for his/her crime.

 

(2)         Party A has the right   to terminate this Contract by giving 30 days prior written notice to Party B   upon occurrence of any of the following events:

 

(a)         Party B is still unable   to perform his/her original work or other works assigned by Party A after   expiry of his/her applicable medical treatment period for illness or non-work   injury;

 

(b)         Party B is not   competent for his/her work and remains so after training or change of   position;

 

(c)          There occurs material   change of objective conditions on the basis of which this Contract was formed   such that the parties can’t continue to perform this Contract and are still   unable to agree to change of this Contract through consultation.

 

(3)         Redundancy. If Party A   needs to lay off its employees upon occurrence of any of the following   events, it shall inform all its employees 30 days prior to redundancy and   listen to their opinions, unless otherwise provided for in   Confidentiality/Non-compete Agreement or other agreements between the   parties, and it may terminate this Contract after report to local labor and   social security authority:

 

(a)         Party A enters into   reorganization under the bankruptcy laws;

 

(b)         Party A is in serious   distress of business and operation.
    

 

4

 

	
 
    	
 
    	
(4)         Party A shall not   terminate this Contract in accordance with the above paragraphs (2) or   (3) if Party B is in any of the following conditions:

 

(a)         Party B is in   occupational illness or is rated for disability due to work injury;

 

(b)         Party B is in the   prescribed medical treatment period for illness or non-work injury;

 

(c)          Party B who is female   is in the periods of pregnancy, child birth or baby nursing;

 

(d)         Party B has worked with   Party A for ten consecutive years and is in less than five years prior to   statutory retirement age;

 

(e)          Party B is a veteran   and his/her employment with Party A is his/her first job and has not reached   three years;

 

(f)           Party B is in   mandatory military service;

 

(g)          Other applicable   conditions as set forth by laws and regulations applicably nationally and at   the place of employment.

 

(5)         Party B may terminate   this Contract by giving 30 days prior written notice to Party A, unless   otherwise provided for in Confidentiality/Non-compete Agreement or other   agreements between the parties.

 

(6)         Upon occurrence of any   of the following events, Party B may terminate this Contract by giving a   notice to Party A:

 

(a)         During the probation   period (by giving 3 days prior written notice);

 

(b)         Party A forces Party B   to work by violence, threat, imprisonment or other unlawful freedom   confinement;

 

(c)          Party A fails to pay   salary or provide working conditions in accordance with this Contract;

 

(d)         Party A fails to pay   social security premiums for Party B in accordance with the laws.

 

(7)         The parties may   terminate this Contract by agreement.
    
	
 
    	
 
    	
 
    
	
Article 25
    	
 
    	
Upon the expiry of the term of this Contract, the   employment relationship shall be immediately terminated upon request by Party   B if Party A fails to process the termination documentation. Except for   compensation as set forth in Article 30(3) below, such termination   shall be deemed as happens under Article 26(1).
    
	
 
    	
 
    	
 
    
	
Chapter   8 Termination and Renewal of Labor Contract
    
	
 
    	
 
    	
 
    
	
Article 26
    	
 
    	
This Contract shall be terminated upon occurrence of   any of the following events:
    

 

5

 

	
 
    	
 
    	
(1)         The term of this   Contract expires and is not extended by the parties;

 

(2)         Party B reaches   statutory retirement age;

 

(3)         Other conditions as set   forth by laws, regulations and rules.
    
	
 
    	
 
    	
 
    
	
Article 27
    	
 
    	
Party A shall inform Party B in writing of its   intent to terminate or renew this Contract 30 days prior to expiry of the term   of this Contract.
    
	
 
    	
 
    	
 
    
	
Article 28
    	
 
    	
Upon occurrence of any of the following events, this   Contract shall be extended and the employment renewal shall be processed   accordingly:

 

(1)         The parties agree to   extend this Contract;

 

(2)         Upon the expiry of term   of this Contract, the employment between the parties continues without   termination and Party B requires renewal of employment;

 

(3)         For the above paragraph   (2), if the parties can’t agree on the new employment term whilst Party B   requires renewal, then the new employment term shall not be less than 12   months from the signing of a Renewal Agreement;

 

(4)         In case Party B is   dispatched for domestic or offshore training programs at the cost of Party A,   the parties shall sign training agreement upon request by Party A, which   shall stipulate the service term committed by Party B in consideration of the   training. If the committed service term is longer than the term of this   Contract, the excessive term shall be deemed as a renewal term, unless   otherwise required by Party A.

 

The parties agree as   follows:

 

                                                                                                         
    
	
 
    	
 
    	
 
    
	
Chapter   9 Economic Compensatory Payments and Indemnities  
    
	
 
    	
 
    	
 
    
	
Article 29
    	
 
    	
In any of the following events, Party A shall make   economic compensatory payments to Party B in accordance with the standards as   set forth below:

 

(1)         If Party A deducts or   is late in paying salary to Party B without cause, or refuses to pay extra   work pay to Party B, it shall pay Party B an economic compensation equivalent   to 25% of overdue salary in addition to full payment of salary;

 

(2)         If the salary paid to   Party B is below the minimum wage rate applicable at the place of employment,   Party A shall pay Party B an economic compensation equivalent to 25% of the   shortage in addition to full payment of shortage;

 

(3)         If Party A fails to   give a termination notice to Party B prior to expiry of employment term in   accordance with Article 27, it shall pay Party B an economic compensation   at a rate of Party B’s average day wage for preceding month for each day as   delayed.
    
	
 
    	
 
    	
 
    
	
Article 30
    	
 
    	
Compensations to Party B in case of Party A’s   termination of this Contract:

 

(1)         The regulations on   medical aid fees applicable nationally and at the place of employment shall   be applied in case that Party A terminates this Contract in 
    

 

6

 

	
 
    	
 
    	
accordance with Article 24(1)(a);

 

(2)         Party A shall pay Party   B an economic compensation according to his/her seniority in Party A which   shall be equal to one monthly salary for one year and half a monthly salary   for six months in case that Party A unilaterally terminates this Contract in   accordance with Article 24(2) and Article 24(3). A period of   six months or more but less than a full year will be deemed as one year in   calculating compensation. A period of less than six months will be deemed as   six months in calculating compensation.

 

The monthly salary   herein means the average monthly salary of Party B for 12 months prior to   termination.

 

If the monthly salary   of Party B exceeds 300% of average employee monthly salary for preceding year   as published by municipal government at the place of employer, then the   monthly salary as used to calculate the above compensation to Party B shall   be such 300% of average employee monthly salary with the total compensation   to be capped at twelve monthly salaries.

 

The economic compensation   will be paid by Party A after the handover process as set forth in   Article 15 has been completed.

 

(3)   The compensation amount and method as set   forth in any Confidentiality/Non-compete Agreements between the parties (if   any) shall be applied in case of termination of employment.
    
	
 
    	
 
    	
 
    
	
Article 31
    	
 
    	
Compensations to Party A in case of Party B’s   termination of this Contract:

 

(1)         Party B shall   compensate losses suffered by Party A as a result of termination of this   Contract by Party B in violation of Article 24(5);

 

(2)         If Party B unilaterally   terminates this Contract within the committed service term as set forth in a   training agreement between the parties in accordance with Article 28(4),   it shall pay Party A an economic compensation in accordance with the   Compensation and Benefits Policy of Party A;

 

(3)         The compensations as   set forth in the above (1) and (2) shall be cumulative.
    
	
 
    	
 
    	
 
    
	
Article 32
    	
 
    	
Party B shall compensate losses suffered by Party A   as a result of Party B’s violation of confidentiality obligation or   termination of this Contract by Party A in case of Party B’s breach of the   terms hereof.
    
	
 
    	
 
    	
 
    
	
Article 33
    	
 
    	
Party B shall not be entitled to claim compensation   against Party A in the following events:

 

(1)         This Contract is   terminated by Party A as result of Party B’s breach of Article 19;

 

(2)         Party A terminates this   Contract in accordance with Article 24(1).
    
	
 
    	
 
    	
 
    
	
Article 34
    	
 
    	
Upon occurrence of event under Article 33(2),   Party A has the right to deduct the salary payable at the month when such event   occurs as compensation to Party A.
    
	
 
    	
 
    	
 
    
	
Chapter   10 Additional Clauses
    
	
 
    	
 
    	
 
    
	
Article 35
    	
 
    	
The parties agree to add the following clauses:
    

 

7

 

	
 
    	
 
    	
35.1 Non-compete. _Both parties   will sign another Non-compete Agreement, the specific clauses of which can be   referred to Non-disclosure and Non-compete Agreement   between the parties.

 

35.2 Non-solicitation. Party B covenants that during   the term of his or her employment and for a period of twelve (12) months   after the termination of his or her employment, Party B shall not, either on   his or her own behalf or on behalf of any third party, canvass, solicit or   approach any person, firm or company who was a customer of or was in any   business arrangement with Party A or solicit or entice or endeavor to solicit   or entice away any employee of Party A.
    
	
 
    	
 
    	
 
    
	
Chapter   11 Labor Dispute and Miscellaneous
    
	
 
    	
 
    	
 
    
	
Article 36
    	
 
    	
If a dispute arises between the parties in respect   of performance of this Contract, the parties may ask for mediation. If   failing so, each party may submit the dispute to labor dispute arbitration   commission for arbitration within one year after the occurrence of the   dispute.

 

Either party may also directly submit the dispute to   the labor dispute arbitration commission for solution.

 

This agreement will be governed by the laws of   People’s Republic of China.
    
	
 
    	
 
    	
 
    
	
Article 37
    	
 
    	
Upon request of Party A, the parties shall enter   into the separate agreements specific to his/her position (including training   agreement, medical treatment period agreement, compensation agreement, but   shall exclude agreements regarding stocks, stock options or other similar   rights). These specific agreements shall constitute an integral part of this   Contract with the same legal effect.
    
	
 
    	
 
    	
 
    
	
Article 38
    	
 
    	
If any clause of this Contract is in conflict with   the mandatory provisions of the current and future laws and regulations   applicable nationally and at the place of employment, this clause shall be   void and laws shall be applied in its place and for this purpose, the parties   shall conclude a Novation Agreement in the form attached hereto.
    
	
 
    	
 
    	
 
    
	
Article 39
    	
 
    	
This Contract (including all attachments and   novation agreements) is written in two copies and each party holds one copy.
    

 

(no text to follow)

 

8

 

	
Party A (company seal):
    	
 
    	
Party B (seal):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Legal Rep/Authorized Rep.:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated
    	
 
    	
 
    	
 
    	
Dated
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party B hereby acknowledges that:
    	
 
    	
 
    
								

 

I have been given sufficient time to read all clauses of this Contract (including all attachments) and I fully understand the meanings of all clauses without doubt. I am willing to comply with all clauses of this Contract.

 

 

	
 
    	
Signed by
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Dated
    	
 
    
				

 

9

 

Renewal Agreement to Labor Contract

 

This Renewed Labor Contract is a [fixed/open] term contract. The effective date of this Renewal Agreement shall be                    and will end as on                     .

 

The original clauses of the Labor Contract shall be revised as follows:

 

                                                                                                                     

 

 

	
Party A (company seal):
    	
 
    	
Party B (seal):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Legal Rep/Authorized Rep.:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated
    	
 
    	
 
    	
Dated
    	
 
    
						

 

i

 

Novation Agreement to Labor Contract

 

Through consultations and on the principles of equality and willingness, the parties agree to revise the Labor Contract as follows:

 

                                                                                                                     

 

 

	
Party A (company seal):
    	
 
    	
Party B (seal):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Legal Rep/Authorized Rep.:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated
    	
 
    	
 
    	
Dated
    	
 
    
						

 

ii

 

Instructions

 

1.              This Contract is used as labor contract between employer and employee.

 

2.              When employer and employee enter into labor contract in the form of this Contract, any contents subject to agreement of the parties will be filled in the relevant blanks in the Contract.

 

In signing the labor contract, Party A shall affix its company seal and its legal representative or authorized representative shall undersign or seal on it.

 

3.              Any additional clauses as agreed by the parties shall be expressly stated in this Contract.

 

4.              Any other agreements or changes to this Contract may be attached to this Contract.

 

5.              This Contract shall be filled out by fountain pen or felt-tip pen, written clearly and eligibly, concisely, accurately, and free from correction.

 

6.              This Contract is written in two copies and each party holds one copy. Party B’s copy shall not be kept by Party A.

 

iii

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