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EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT
(the "Agreement"), is entered into as of [ ] (the "Effective Date"), by and between China
SXT Pharmaceuticals, Inc., incorporated under the laws of the British Virgin Islands (the "Company"), and Simon Lim
Sze Beng, an individual (the "Co-Chief Executive Officer (Co-CEO)"). Except with respect to the direct employment of
the Co-CEO by the Company, the term "Company" as used herein with respect to all obligations of the Co-CEO hereunder shall
be deemed to include the Company and all of its subsidiaries and affiliated entities (collectively, the "Group").
A. The Company desires to employ Simon Lim Sze
Beng as its Co-CEO and to assure itself of the services of the Co-CEO during the term of Employment (as defined below).
B. Simon Lim Sze Beng desires to be employed by
the Company as its Co-CEO during the term of Employment and upon the terms and conditions of this Agreement.
The parties hereto agree as follows:
Simon Lim Sze Beng hereby
accepts a position of Co-CEO (the "Employment") of the Company.
Subject to the terms and conditions of this Agreement, the initial term of the Employment shall be five years commencing on the Effective Date, unless terminated earlier pursuant to the terms of this Agreement. The Employment will be renewed automatically for additional one-year terms if neither the Company nor the Co-CEO provides a notice of termination of the Employment to the other party or otherwise proposes to re-negotiate the terms of the Employment with the other party within three months prior to the expiration of the applicable term.
represents to the Company that: (i) the execution and delivery of this Agreement by the Co-CEO and the performance by the Co-CEO
of the Co-CEO's duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or
policy to which the Co-CEO is a party or otherwise bound, except for agreements entered into by and between the Co-CEO and any member
of the Group pursuant to applicable law, if any; (ii) that the Co-CEO has no information (including, without limitation, confidential
information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Co-CEO entering into
this Agreement or carrying out his duties hereunder; (iii) that the Co-CEO is not bound by any confidentiality, trade secret or similar
agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.
The Company may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically
required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:
(1) the Co-CEO is convicted or pleads
guilty to a felony or to an act of fraud, misappropriation or embezzlement,
(2) the Co-CEO has been grossly negligent
or acted dishonestly to the detriment of the Company,
(3) the Co-CEO has engaged in actions
amounting to willful misconduct or failed to perform his duties hereunder and such failure continues after the Co-CEO is afforded a reasonable
opportunity to cure such failure; or
(4) the Co-CEO violates Section 8 or
10 of this Agreement.
Upon termination for cause, the Co-CEO
shall be entitled to the amount of base salary earned and not paid prior to termination. However, the Co-CEO will not be entitled to receive
payment of any severance benefits or other amounts by reason of the termination, and the Co-CEO's right to all other benefits will
terminate, except as required by any applicable law.
disability. The Company may also terminate the Employment, at any time, without notice or remuneration (unless notice or remuneration
is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law),
(1) the Co-CEO has died, or
(2) the Co-CEO has a disability which
shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Co-CEO unable to perform the essential
functions of his employment with the Company, with or without reasonable accommodation, for more than 120 days in any 12-month period,
unless a longer period is required by applicable law, in which case that longer period would apply.
Upon termination for death or disability,
the Co-CEO shall be entitled to the amount of base salary earned and not paid prior to termination. However, the Co-CEO will not be entitled
to receive payment of any severance benefits or other amounts by reason of the termination, and the Co-CEO's right to all other
benefits will terminate, except as required by any applicable law.
(iii) Without Cause.
The Company may terminate the Employment without cause, at any time, upon one-month prior written notice. Upon termination without cause,
the Company shall provide the following severance payments and benefits to the Co-CEO: (1) a lump sum cash payment equal to 12 months
of the Co-CEO's base salary as of the date of such termination; (2) a lump sum cash payment equal to a pro-rated amount of
his target annual bonus for the year immediately preceding the termination, if any; (3) payment of premiums for continued health
benefits under the Company's health plans for 12 months fo1lowing the termination, if any; and (4) immediate vesting of 100%
of the then-unvested portion of any outstanding equity awards held by the Co-CEO.
Upon termination without, the Co-CEO
shall be entitled to the amount of base salary earned and not paid prior to termination.
(iv) Change of Control Transaction.
If the Company or its successor terminates the Employment upon a merger, consolidation, or transfer or sale of all or substantially all
of the assets of the Company with or to any other individual(s) or entity (the "Change of Control Transaction"), the
Co-CEO shall be entitled to the following severance payments and benefits upon such termination: (1) a lump sum cash payment equal
to 12 months of the Co-CEO's base salary at a rate equal to the greater of his/her annual salary in effect immediate1y prior
to the termination, or his/her then current annua1 salary as of the date of such termination; (2) a lump sum cash payment equal to
a pro-rated amount of his/her target annual bonus for the year immediately preceding the termination; (3) payment of premiums for
continued health benefits under the Company's health plans for 12 months fo1lowing the termination; and (4) immediate vesting
of 100% of the then-unvested portion of any outstanding equity awards held by the Co-CEO.
This Section 8 shall survive
the termination of this Agreement for any reason. In the event the Co-CEO breaches this Section 8, the Company shall have right to seek
remedies permissible under applicable law.
agrees that, during the term of his employment with the Company, he or she will not engage in any other employment, occupation, consulting
or other business activity related to the business in which the Company is now involved or becomes involved during the term of the Co-CEO's
employment, nor will the Co-CEO engage in any other activities that conflict with his obligations to the Company without the prior written
consent of the Company.
of the salary paid to the Co-CEO by the Company and subject to applicable law, the Co-CEO agrees that during the term of the Employment
and for a period of one (1) year following the termination of the Employment for whatever reason:
The provisions contained in
Section 10 are considered reasonable by the Co-CEO and the Company. In the event that any such provisions should be found to be void
under applicable laws but would be valid if some part thereof was deleted or the period or area of application reduced, such provisions
shall apply with such modification as may be necessary to make them valid and effective.
This Section 10 shall survive
the termination of this Agreement for any reason. In the event the Co-CEO breaches this Section 10, the Co-CEO acknowledges that there
will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and
such other relief as may be proper (including monetary damages if appropriate). In any event, the Company shall have right to seek all
remedies permissible under applicable law.
Notwithstanding anything else
herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or
payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be
required to be withheld pursuant to any applicable law or regulation.
This Agreement is personal
in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights
or obligations hereunder; provided, however, that (i) the Company may assign or transfer this Agreement or any rights or obligations
hereunder to any member of the Group without such consent, and (ii) in the event of a Change of Control Transaction, this Agreement
shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge
and perform all the promises, covenants, duties, and obligations of the Company hereunder.
If any provision of this Agreement
or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can
be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.
This Agreement constitutes
the entire agreement and understanding between the Co-CEO and the Company regarding the terms of the Employment and supersedes all prior
or contemporaneous oral or written agreements concerning such subject matter, including any prior agreements between the Co-CEO and a