English Translation of Employment Agreement
Exhibit
10.1
Due to
work need, China Valves Technology, Inc. (hereinafter referred to as “Party A”
or “Company”), intends to employ Ichi Shih (hereinafter referred to as “Party
B”) to be employee of Party A in accordance with the State’s relevant laws,
regulations and rules on labor issues. Based on the principles of
equality, volunteer, and consultation, both Parties enter into this Agreement to
establish employment relations and specify both Parties’ rights and
obligations for mutual abidance.
1. Term
This
Agreement starts on July 1, 2009. Unless one party terminates the
Agreement pursuant to the terms of this section, the term of the Agreement is
two years. If no party gives a thirty-day notice prior to the termination of the
Agreement, the Agreement will be automatically extended for one more year. The
Agreement is at will and either party may terminate the Agreement with or
without cause. In the event that either Party intends to terminate this
Agreement, it shall notify the other Party in writing or by email thirty (30)
days in advance.
2. Duties
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(1)
The position of Party B is CFO (Chief Finance Officer), reporting to
CEO. Party B’s working duties
include:
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A.
combination of all financial statements of the Company;
B.
financial consultation on the Company’s acquisition;
C.
training to the senior management and financial staffs of the
Company;
D.
protecting the interests of the Company and answering various questions on
financial issues of the Company imposed by SEC; and
E.
coordination on the Company’s financing issues and investor
relations.
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(2)
During the contract term, Party A will possibly assign Party B for other
positions.
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3. Working
Time, Confidentiality and Non-competition Agreement
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(1)
During the contract term, Party B shall be a full-time employee of Party
A.
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(2)
Party B shall keep all the business activities and trade secret of Party A
confidential and shall not disclose to any third parties without
permission of Party A.
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(3)
Party B agrees, during the contract term and within two (2) years after
the expiration of the contract term, not to engage in any business which
will compete with the business activities of Party A and not to join in
any companies which compete with Party
A.
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4. Leaves
During
the contract term, Party B shall enjoy the statutory public holidays specified
by laws.
5. Remuneration
Monthly
salary: US $ 7,000 base salary
The base
salary may be raised based on Party B’s performance and upon approval of the
board of directors.
Year-end
Bonus: to be determined by Compensation Committee (or the Board of
Directors)
Date for
paying the remuneration: the first day of every month
Method of
payment for the remuneration: payment in US Dollar or in RMB according to the
foreign exchange ratio on the date when the payment is actually
made.
6. Stock
Options
Considering
the actual work performance of Party B and upon approval of the Board of
Directors, within three month of Party B’s employment, Party A will grant Party
B stock options to purchase 100,000 shares of the Company’s common stock at the
exercise price of $3.0 per share. The options will expire in three years. Party
B may exercise 33.336% of her options on the first anniversary of her employment
with the Company. Party B may exercise 8.333% of the remaining options every
three months after the first anniversary until the options are fully exercised.
The ceiling of the options should be the above-mentioned percentages. All
unexercised options shall be carried over to the next exercise. Party A shall
cancel all unexercised options after ten years since the issuance of the
options.
7. Insurance
and Welfares
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(1)
During the contract term, both Party A and Party B shall contribute
various social security funds, such as insurance for pension, unemployment
and work accidents. Meanwhile, Party A shall periodically
notify Party B of the contribution of the social insurance
funds.
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(2)
In the event that Party B suffers any diseases or work-related injuries
during the contract term, the salary for Party B during its sick leaves,
the disease relief fees and the fees for medical treatment for Party B
shall be implemented according to the standard which shall not be lower
than the State’s mandatory
standard.
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(3)
During the period which the Company stops its operation and production due
to the reasons not attributable to Party B, the benefits for various
leaves, social insurances and medical treatment which Party B may enjoy
according to the relevant regulations shall remain
unchanged.
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(4)
The other social welfares and benefits which Party B may enjoy shall be
implemented according to the rules and regulations promulgated by Party A
according to law.
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8. Labor
Discipline, Punishments and Awards
Party B
shall abide by various rules and regulations promulgated by Party A according to
law. Party A is entitled to examine, supervise, review, punish and
award Party B for Party B’s performance to those rules and
regulations.
9. Mediation
and Arbitration
The
disputes arising from the performance of this Agreement shall be resolved first
through consultation. In the event that the disputes can not be
resolved through consultation, the disputes can be resolved through mediation by
the Disputes Mediation Commission where Party A is located or through
arbitration by the Labor Disputes Arbitration Commission where Party A is
located within sixty (60) days after the disputes have arose. If not
satisfied with the arbitration awards, either Party may institute a lawsuit
with the people’s court where Party A is located within fifteen (15) days after
receiving the arbitration awards.
10. Amendment
Any
amendment to this Agreement shall not take into effect before the amendment is
signed and recognized in writing by both Parties.
11. Governing
Law
This
Agreement shall be governed by the laws of the People’s Republic of
China. During the contract term, in case of any discrepancy between
the articles of this Agreement and the provisions of the law, the latter shall
prevail.
Because
Party A is an American public listing company, after conclusion of this
Agreement, Party A is obliged to file an 8-K report on hiring Party B to
SEC. Party B shall also be obliged to provide Party A any materials
required for filing 8-K report. Meanwhile, all the behaviors and
activities of Party B, as CFO of Party A, shall also be supervised and governed
by SEC.
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Party
A or Representative
(Signature
or Seal)
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Party
B
(Signature
or Seal)
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Signature:/s/
Siping Fang
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Signature:
/s/ Ichi Shih
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Date:
June 30, 2009
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Date:
June 30, 2009
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