Party B promises that during Party B’s term of office or within three years upon expiration of the labor service contract with Party A, without Party A’s written consent, Party B shall neither operate his/her own business that is the same or similar to that routinely managed by Party A, nor hold any post or possess any benefit in other enterprises, public institutions or social communities that produce and operate the same or similar products or provide the same or similar services.
(1) Party B agrees that during his/her employment with Party A and/or within three years upon expiration of the labor relations with Party A for any reason, without Party A’s explicit written consent, Party B shall neither require or recommend any current or potential customer of Party A to withdraw, reduce or cancel any transaction with Party A, nor take actions or assist any others in taking any actions that may possibly bring unfavorable influence upon Party A’s business.
(2) Party B agrees that during his/her employment with Party A and/or within three years upon expiration of the labor relations with Party A for any reason, without Party A’s explicit written consent, Party B shall not directly or indirectly (i) solicit or encourage any employee of Party A to disengage his/her employment with Party A; (ii) render any other entity to employ any employee of Party A, or (iii) solicit or encourage any current consultant who is restrained by the contract (verbal or written) made with Party A to terminate his/her work for Party A or start new work with any other entity.
(3) Party B agrees that in the event of terminating his/her employment with Party A, if Party A pays Party B an amount that is equal to Party B’s total wages in the nearest full calendar year, such payment shall constitute the full consideration of maintaining the effectiveness of the Contract between Party A and Party B within the whole three years upon the expiration of labor relations. Notwithstanding the aforesaid clauses, Party B agrees that if any other rule of law should be enacted in China in the future which stipulates that Party A is required to pay an extra consideration in order to maintain the Contract’s effectiveness, or if a certain court of law or arbitration institution awards that an extra consideration is required in order to maintain the Contract’s effectiveness, Party A can then choose at its own discretion to pay said extra consideration or waive the Contract. Provided that China should enact any rule of law in the future stipulating that the non-compete period after leaving a post is less than three years, the period of performing non-compete obligations by Party B in Article 7 herein shall be interpreted as the upper limit stipulated in said rule of law in China.