Document:

Unassociated Document

    

      Draft:
        27
        June
        2006

    

     

    JUNE
      6, 2006

     

     

     

    
 

     

    BEIJING
      HOLLYSYS CO., LTD.

     

     

     

     

     

     

      
        

      

    

    

    KEY
      EMPLOYEE EMPLOYMENT

    AGREEMENT
      (MANAGEMENT

    EMPLOYEES)

     

      
        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      KEY EMPLOYEE EMPLOYMENT AGREEMENT (Management Employees)
      is made
      on June 6,2006

     

    BETWEEN:

     

    (1) Beijing
      HollySys Co., Ltd.
      (the
Company),
      a
      company established in the PRC with its registered address at No. 10,
      Jiancaicheng Zhong Lu, Xisanqi, Haidian District, Beijing, PRC; and

     

    (2) Wang
      Changli (the Employee),
      a
      national of the PRC [with PRC identification number
      110108196311162410].

     

    IT
      IS
      AGREED as follows:

     

    1.  DEFINITIONS

     

    1.1  In
      this
      Agreement, the following expressions shall have the following
      meanings:

     

    Agreement
      means
      this Employment Agreement.

     

    Agreement
      Period
      is
      defined in clause 5.1.

     

    Employment
      means
      the Employee’s employment in accordance with the terms of this
      Agreement.

     

    Parties
      means
      the Employee and the Company and a Party
      means
      any of them.

     

    PRC
      means
      the People’s Republic of China, which for the purposes of this Agreement does
      not include the Hong Kong Special Administrative Region, Taiwan or the Macao
      Special Administrative Region.

     

    2.  TITLE
      AND
DUTIES

     

    2.1  The
      Employee shall be employed by the Company as Chief Executive Officer. The
      Employee shall report to the Board of Directors.

     

    2.2  The
      Employee will perform such duties and exercise such powers as the Company may
      from time to time assign to him. During the Employment, the Employee will well
      and faithfully serve the Company.

     

    2.3  During
      the Employment, the Employee shall not (without the Company’s written consent)
      remain or become a director or employee of any company which is not an affiliate
      or subsidiary of the Company, nor be directly or indirectly engaged, concerned
      or interested in any other business, trade or occupation.

     

    2.4  During
      the Employment, the Employee shall abide by the work rules of the
      Company.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3.  PLACE
      OF
WORK

     

    The
      Employee shall be based at the Company’s principal site at its registered
      address in the PRC.

     

    4.  HOURS
      OF
      WORK

     

    The
      Employee is a full-time and key employee of the Company and shall work the
      hours
      as are required in the proper performance of his duties or as required of him
      by
      the Company. The Employee acknowledges that the reasonable remuneration for
      any
      travel time or for any further hours in excess of the Company’s normal business
      hours as the Employee may be required to work in accordance with this clause
      4
      has been included into the Employee’s salary and benefits in clause 6 below, and
      that he has no entitlement to additional remuneration for any overtime
      work.

     

    5.  TERM

     

    5.1  Subject
      to clause 13 below, the Employment is for a fixed term of 3 years beginning
      on
      the date of the consummation of the stock purchase under the Stock Purchase
      Agreement entered into by and between Chardan North China Acquisition
      Corporation, Shanghai Jinqiaotong Industrial Develompent Co., Wang Changli,
      ChengWusi, Lou An, Team Spirit Indistrioal Limited and OSCAF International
      Co.,
      Ltd. dated as of February 2, 2006 (the Agreement
      Period).

     

    5.2  The
      Employment expires without prior notice at the end of the Agreement Period.
      No
      later than 6 months prior to the expiration, discussions between the Parties
      will be held to determine whether the Employment should be prolonged or
      terminated.

     

    6.  SALARY
      AND
      BENEFITS

     

    6.1  The
      Employee’s salary is US$50,000 per annum net of PRC personal income tax
      withholdings payable in equal installments monthly in arrears. The Company
      shall
      withhold from the Employee’s gross salary any PRC personal income tax in
      accordance with relevant PRC laws and regulations.

     

    6.2  The
      Employee’s salary will be reviewed on December of each year, starting at the
      effective date of the Agreement. The Company is under no obligation to increase
      the Employee’s salary following such review.

     

    6.3  During
      the Agreement Period, the Company, in its sole discretion, may award to the
      Employee an annual bonus based on the Employee’s performance, the Company’s
      performance, and other factors deemed relevant by the Company’s compensation
      committee of the board of directors.

     

    6.4  During
      the Employment, the Company shall make contributions to government-mandated
      social insurance funds as required under applicable law. The Company shall
      have
      the right to deduct from the Employee’s salary any contributions the Employee is
      required to make to such social insurance funds under applicable
      law.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    6.5  The
      Employee agrees that the Company has the right to deduct from his salary or
      any
      other payments due to him (including any payment due upon the termination of
      his
      employment) any sums which may come due from the Employee to the
      Company.

     

    7.  TAX

     

    7.1  The
      Employee shall be responsible for effecting payment of all taxes, social
      security contributions payable by the Employee and fees for which he is liable
      on the income and benefits earned under this Agreement [save that the Company
      shall be liable to withhold PRC personal income tax from the Employee’s gross
      salary in accordance with clause 6.1 pursuant to applicable PRC laws and
      regulations]. The Company shall have no obligation to provide extra compensation
      over and above the amounts specified in this Agreement to offset any tax
      liabilities, social security contributions payable by the Employee and fees
      of
      the Employee for which he is liable.

     

    8.  EXPENSES

     

    8.1  Compensation
      for traveling expenses which the Employee properly and necessarily incurs in
      the
      course of his Employment will be paid in accordance with the relevant rules
      of
      the Company for the time being in force. Such reimbursement shall be subject
      to
      the Employee producing official receipts evidencing payment.

     

    9.     
      HOLIDAYS

     

    
      9.1  The
        Employee is entitled to five (5) weeks paid holiday per calendar year during
        his
        Employment (plus bank and public holidays in the PRC), to be taken at such
        reasonable time or times as may be approved by the Company. The right to
        paid
        holiday will accrue pro-rata during each calendar year of the Employment.
        The
        Employee is not entitled to carry forward untaken holiday from one calendar
        year
        to the next.

    

     

    10.  SICKNESS

     

    10.1  Subject
      to the Employee’s compliance with the Company’s policy on notification and
      certification of periods of absence from work, the Employee will continue to
      be
      paid his full salary during any period of absence from work due to sickness
      or
      injury for a period of a total of up to 20 days.

     

    10.2  The
      Employee agrefes that he will, whenever requested by the Company, undergo a
      medical examinaf on by a doctor appointed by the Company (provided
      that

     

    the
      costs
      of all such examinations are paid for by the Company). The Company will be
      entitled to receive a copy of any report produced in connection with all such
      examinations and to discuss the contents of the report with the doctor who
      produced it.

     

    11.  INTELLECTUAL
      PROPERTY

     

    11.1  The
      Employee agrees that all Work Product (as defined below) shall be the sole
      property of the Company. The Employee agrees to waive, and hereby waives and
      irrevocably and exclusively assigns to the Company all right, title and interest
      he has or may have in or to any other Work Product, and to the extent that
      such
      rights may not be waived or assigned, agrees not to assert such rights against
      the Company or its licensees (and sublicensees), successors or
      assigns.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    11.2  The
      Employee agrees to promptly disclose all Work Product to the appropriate
      individuals in the Company as such Work Product is created in accordance with
      the requirements of his job and as directed by the Company.

     

    11.3  “Work
      Product” means any and all inventions, improvements, developments, concepts,
      ideas, expressions, processes, prototypes, plans, drawings, designs, models,
      formulations, specifications, methods, techniques, shop-practices, discoveries,
      innovations, creations, technologies, formulas, algorithms, data, computer
      databases, reports, laboratory notebooks, papers, writings, photographs, source
      and object codes, software programs, other works of authorship, and know-how
      and
      show-how, or parts thereof conceived, developed, or otherwise made by the
      Employee alone or jointly with others (i) during the period of the
      employment with the Company or (ii) during the six month period next
      succeeding the termination of the employment with the Company if the same in
      any
      way relates to the present or proposed products, programs or services of the
      Comp or to tasks assigned to the Employee during the course of the employment,
      whether or not patentable or subject to copyright or trademark protection,
      whether or not reduced to tangible form or reduced to practice, whether or
      not
      made during regular working hours, and whether or not made on Company
      premises.

     

    11.4  It
      shall
      be part of the Employee’s normal duties or other duties specifically assigned to
      him at all times, whether or not during the Company’s normal business hours and
      whether or not performed at the Employee’s normal place of work, to consider in
      what manner and by what new methods or devices the products, services,
      processes, equipment or systems of the Company or its affiliates with which
      he
      is concerned or for which he is responsible might be improved and to originate
      designs (whether registrable or not) or patentable work or other work in which
      copyright, trademark right or patent rights may subsist.
      Accordingly:

     

    
      	(a)       
                 	
              the
                Employee shall forthwith disclose full details of the same in confidence
                to the Company or its affiliates and shall regard himself in relation
                thereto as a trustee for the Company or its
                affiliates;

            

    

     

    
      	(b)           
                           	
              the
                Employee hereby acknowledges that all works created during Employment
                are
                created mainly using the material, know-how and technical resources
                of the
                Company or its affiliates;

            

    

     

    
      	(c)           
                	
              all
                intellectual property rights in such designs or works shall vest
                absolutely in the Company or its affiliates which shall be entitled,
                so
                far as the law permits, to the exclusive use
                thereof;

            

    

     

    
      	(d)          
                         	
              notwithstanding
                (c) above, the Employee shall at any time assign to the Company or
                its
                affiliates any copyright, trademark right or patent rights (by way
                of
                assignment of copyright, trademark right or patent rights) and other
                intellectual property rights in respect of all works written, originated,
                conceived or made by the Employee during the continuance of the
                Employment; and

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	(e)           	
              the
                Employee agrees and undertakes that at any time during or after the
                termination of the Employment he will execute such documents and
                do all
                such acts and things as the Company or its affiliates may deem necessary
                or desirable to substantiate its rights in respect of the matters
                referred
                to above including for the purpose of obtaining letters patent, copyright
                or trademark registration or other privileges in all such jurisdictions
                as
                the Company or its affiliates may
                require.

            

    

     

    12.  GRIEVANCE
      AND DISCIPLINARY
      PROCEDURES

     

    12.1  If
      the
      Employee has any grievance relating to the Employment, he may seek redress
      orally or in writing by referring the grievance to the Company.

     

    12.2  The
      disciplinary rules and procedures of the Company in force from time to time
      can
      be obtained from Human Resources Department.

     

    13.  TERMINATION
      AND SUSPENSION

     

    13.1  The
      Company may terminate the Employment by written notice to the Employee,
      effective immediately upon the delivery of such notice, with no liability to
      make any further payment to the Employee (other than in respect of amounts
      accrued due at the date of termination) if the Employee:

     

    
      	(a)	
              commits
                any serious or repeated breach of any of his obligations under this
                Agreement;

            

    

     

    
      	(b)	
              is
                guilty of misconduct, negligence or omission which, in the Company’s
                opinion, has damaged or may damage the business or affairs of the
                Company
                or an affiliate or subsidiary of the
                Company;

            

    

     

    
      	(c)	
              engages
                in conduct which, in the Company’s reasonable opinion, brings or is likely
                to bring the Employee, the Company or an affiliate or subsidiary
                of the
                Company into disrepute;

            

    

     

    
      	(d)	
              engages
                in conduct which, in the Company’s reasonable opinion, could be
                characterized as competing with the Company, including, but not limited
                to, as described in Article 15
                herein;

            

    

     

    
      	(e)	
              violates
                the obligations of Confidentiality, as described
                herein;

            

    

     

    
      	(f)	
              is
                convicted of a criminal offence (other than a road traffic offence
                not
                subject to a custodial sentence);

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	(g)	
              is
                declared bankrupt or makes any arrangement with or for the benefit
                of his
                creditors; or

            

    

     

    
      	(h)	
              any
                other cause provided by law as grounds for summary
                termination.

            

    

     

    This
      clause shall not restrict any other right the Company may have to terminate
      the
      Employment summarily. Any delay by the Company in exercising its rights under
      this clause shall not constitute a waiver of those rights.

     

    13.2  If
      (due
      to illness or otherwise) the Employee cannot properly and effectively perform
      his duties under this Contract for a period of 180 consecutive days during
      any
      consecutive twelve (12) month period, the Company may terminate the Employment
      forthwith by giving the Employee written notice prior to the date Employee
      resumes the rendering of services hereunder, and salary and all benefits will
      cease as of the date of termination, and the Company shall pay the Employee
      six
      month’s salary as severance pay.

     

    13.3  The
      Company may in its absolute discretion suspend the Employee from the Employment
      on full salary during any period in which the Company is carrying out an
      investigation into any acts or defaults (or alleged or suspected acts or
      defaults) of the Employee.

     

    13.4  Upon
      termination of the Employment for whatever reason the Employee will deliver
      to
      the Company all books, documents, papers, materials, credit cards and other
      property relating to the business of the Company which may then be in his
      possession or under his power or control.

     

    13.5  The
      Employee will not at any time after termination of the Employment represent
      himself as being in any way connected with or interested in the business of,
      or
      employed by, the Company or any of its affiliates.

     

    14.  RESTRAINT
      ON ACTIVITIES AND CONFIDENTIALITY

     

    14.1  During
      the Employment the Employee will not (without the prior written consent of
      the
      Company) be directly or indirectly engaged or interested in any capacity in
      any
      other business, trade or occupation whatsoever.

     

    14.2  For
      3
      years from the end of the Employment, the Employee shall not solicit or entice
      or endeavour to solicit or entice from the Company, any individual who is
      employed or engaged by the Company.

     

    14.3  During
      the Employment and for 3 years from the end of the Employment, the Employee
      shall not approach clients, customers or contacts of the Company or other
      persons or entities introduced to him in his capacity as a representative of
      the
      Company in order to do business with them or encourage them to terminate their
      relationships with the Company, or, on his own behalf, or as owner, manager,
      shareholder, consultant, director, officer or employee of or in any other manner
      connected with any business entity, participate or be involved in any competitor
      of the Company in or outside of the PRC without the prior written authorization
      of the Company. For each year or portion thereof during which the provisions
      of
      this section apply, the Company shall pay the Employee statutory
      compensation.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    14.4  Save
      insofar as such information is already in the public domain, the Employee will
      keep secret and will not either during or after the termination of the
      Employment use or reveal to any person, firm, company or organisation any
      information which he knows or ought reasonably to have known to be confidential,
      concerning the business or affairs of the Company or of any of the Company’s
      affiliates or any of its or their customers. The Employee shall at all times
      during and after tie termination of the Employment use his best endeavours
      to
      prevent the publication or disclosure of such confidential information. The
      restrictions in this clause shall not apply to any disclosure or use authorised
      by the Company or required by law or by the Employment.

     

    14.5  All
      notes, memoranda, records and writings (including photocopies and electronic
      reproductions) made by the Employee in the course of the Employment are and
      remain the Company’s exclusive property. The Employee shall turn them over to
      the Company on demand and in any event at the end of the
      Employment.

     

    15.  MISCELLANEOUS

     

    15.1  This
      Agreement shall be effective upon signing by the Parties. The Parties agree
      that
      the rights and obligations set forth in clauses 11, 13.2, 13.5, 16 and 17 shall
      survive the termination of this Agreement.

     

    15.2  This
      Agreement, together with any documents referred to in this Agreement,
      constitutes the entire agreement and understanding between the Parties and
      supersedes all other agreements both oral and in writing between the Company
      and
      the Employee (other than those expressly referred to herein), including without
      limitation any and all service or employment contracts or related arrangements
      existing between the Company and the Employee prior to the Employment. The
      Employee acknowledges that he has not entered into this Agreement in reliance
      upon any representation, warranty or undertaking which is not set out in this
      Agreement.

     

    15.3  The
      Employee represents and warrants to the Company that he will not by reason
      of
      entering into the Employment or performing this Agreement be in breach of any
      terms of employment (express or implied) with a third party or of any other
      obligation binding on him.

     

    15.4  If
      any
      provision of this Agreement is held invalid, illegal or unenforceable in any
      respect, the validity, legality and enforceability of the remaining provisions
      shall not in any way be impaired. The Parties shall then use all reasonable
      endeavours to replace the invalid or unenforceable provisions by a valid and
      enforceable substitute provision the effect of which is as close as possible
      to
      the intended effect of the invalid or unenforceable provision.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    15.5  Three
      signed copies of this Agreement have been made. The Company shall keep two
      signed copies and the Employee shall keep one signed copy. Each signed copy
      shall be deemed an original without production of the others.

     

    16.  NOTICES

     

    16.1  Notice
      under these terms and conditions will be treated as having been given if sent
      by
      ordinary first class post, by the Employee to the Company’s registered office or
      by the Company to the Employee at his last known address, as appropriate, and
      will be deemed to be given on the day when it would ordinarily be delivered
      after such posting.

     

    17.  GOVERNING
      LAW AND DISPUTE
      RESOLUTION

     

    17.1  This
      Agreement is governed by, and construed in accordance with, the published laws
      of the PRC.

     

    17.2  Any
      dispute, controversy, or claim arising out of or relating to this Agreement,
      or
      the breach, termination or invalidity thereof, shall be settled by relevant
      labor arbitration proceedings.

     

    17.3  During
      arbitration, the parties shall, with the exception of the matters in dispute,
      continue to perform their obligations under this Agreement.

     

    IN
      WITNESS WHEREOF,
      the
      Parties have caused this Agreement to be executed in three originals on the
      date
      above written.

     

      	
              Beijing HollySys Co.,
                Ltd.

            	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              By:  

            	 	 	
               

            	Wang
              Changli
	 	 	 	 	 	 
	
              Name:

            	 	 	 	 	 
	Title:	 	 	 	By:	 /s/
              Wang Changli
	 	 	 	 	 	 
	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    CONTENTS

    
      	 CLAUSE	 	 	 	
               PAGE

            
	 	 	 	 	 
	
              1

            	 	
              DEFINITIONS

            	 	
              1

            
	
              2.

            	 	
              TITLE
                AND DUTIES

            	 	
              1

            
	
              3.

            	 	
              PLACE
                OF WORK

            	 	
              2

            
	
              4.

            	 	
              HOURS
                OF WORK

            	 	
              2

            
	
              5.

            	 	
              TERM

            	 	
              2

            
	
              6.

            	 	
              SALARY
                AND BENEFITS

            	 	
              2

            
	
              7.

            	 	
              TAX

            	 	
              3

            
	
              8.

            	 	
              EXPENSES

            	 	
              3

            
	
              9.

            	 	
              HOLIDAYS

            	 	
              3

            
	
              10.

            	 	
              SICKNESS

            	 	
              3

            
	
              11.

            	 	
              INTELLECTUAL
                PROPERTY

            	 	
              3

            
	
              12.

            	 	
              GRIEVANCE
                AND DISCIPLINARY PROCEDURES

            	 	
              5

            
	
              13.

            	 	
              TERMINATION
                AND SUSPENSION

            	 	
              5

            
	
              14.

            	 	
              RESTRAINT
                ON ACTIVITIES AND CONFIDENTIALITY

            	 	
              6

            
	
              15.

            	 	
              MISCELLANEOUS

            	 	
              7

            
	
              16.

            	 	
              NOTICES

            	 	
              8

            
	
              17.

            	 	
              GOVERNING
                LAW AND DISPUTE RESOLUTION

            	 	
              8

            

    

    
      
        
        

      

      
        -i-Exhibit
      4.11

    

    AMENDMENT
      NO. 1 TO CONSULTING AGREEMENT

    

    AMENDMENT
      NO. 1 TO CONSULTING AGREEMENT, dated as of June 27, 2006 (this “Amendment”), by
      and between China Security & Surveillance Technology, Inc. (formerly, Apex
      Wealth Enterprises Limited), a British Virgin Islands corporation (“the
      Company”) and Terence Yap (“Consultant”). Capitalized terms used, but not
      otherwise defined, herein have the meanings ascribed to such terms in that
      certain Consulting Agreement, dated February 8, 2006, by and between the Company
      and Consultant (the “Agreement”).

    

    BACKGROUND

    

    The
      Company and Consultant are parties to the Agreement (the “Parties”), pursuant to
      which Consultant will provide consulting services to the Company in exchange
      for
      100,000 shares of the Company’s common stock. The Parties now desire to extend
      the term of the Agreement and hereby enter into this Amendment to modify the
      terms of the Agreement as more specifically set forth herein. 

    

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the mutual promises of the parties hereto, and
      of
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows:

    

    1.    Amendment
      to Section 2 of the Agreement.
      The
      Agreement is hereby amended to delete Section 2 thereof in its entirety and
      in
      lieu thereof to insert the following new Section 2:

     

    “Term.
      The
      term of this Agreement shall commence on February 8, 2006 and shall end on
      February 7, 2009 unless terminated earlier pursuant to Section 6
      hereof.”

    

    2.    Agreement
      Remains in Force.
      Except
      as expressly set forth in this Amendment, the Agreement remains unmodified
      and
      in full force and effect.

    

    3.    Miscellaneous.
      This
      Amendment and the Agreement constitute the entire understanding among the
      parties hereto with respect to the subject matter hereof and may not be further
      amended, modified or supplemented except as specified in the Agreement. This
      Amendment may be executed in any number of counterparts, each of which shall
      be
      deemed an original and enforceable against the Parties actually executing such
      counterpart, and all of which, when taken together, shall constitute one
      instrument. Facsimile execution and delivery of this Agreement is legal, valid
      and binding execution and delivery for all purposes.

    

    [signature
      page follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      	 	 	 
	 	CHINA
              SECURITY & SURVEILLANCE TECHNOLOGY, INC. 
	 
 	 
 	 
 
	 	By:  	/s/ Guoshen
              Tu
	 	
              
Name:
              Guoshen Tu
	 	Title:
              Chief Executive Officer

    

     

    
      	 	 	 
	 	TERENCE
              YAP
	 
 	 
 	 
 
	 	By:  	/s/ Terence
              Yap

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