The "prohibition of business strife" means that workplace organizations procure employees who are liable for keeping the organization’s trade secrets confidential (as stated in their labor contracts), and their employees shall not be employed by other competitors, or engage in the production of the same products or the operation of the same businesses that compete with their current workplace organization, within a certain period of time upon the termination or revocation of their labor contract.

The period for such prohibition shall be subject to the commitment agreed upon by the mutual parties in the actual labor contract provided, however, the maximum duration shall not exceed three years.

The clause of the prohibition of business strife is a deferred effectiveness clause in the labor contract, i.e. this clause will become effective upon the end of the legal binding force of the other clauses in the labor contract.

In the case of both parties in a labor contract breaking the clause of the prohibition of business strife in the actual labor contract or a separate non-disclosure agreement, they shall, at the same time, carry out economic compensations as applicable. The workplace organization shall, upon termination or revocation of the labor contract, render economic compensations to employees. The standard and amount of such compensations shall be executed by them at their free will.

At the time of breaking the clause of the prohibition of business strife, the detailed mode and coverage to assume the liabilities for a breach of contract shall be provided, however, the period of notice in advance for terminating labor contracts shall no longer be required.

The commitment to the prohibition of business strife shall not go against any and all of the Chinese laws and regulations.