Labor
Contract


 


 





	Party A (Employer):	Jinjiang Hengda Ceramics Co., Ltd.
	Address:	Junbing Industrial Zone, Anhai Township, Jinjiang
	Company Type:	Wholly Owned Foreign Enterprise
	Legal Representative:	Huang Jiadong
	Contact Telephone: 	0595-85765073
	 	 
	Party B (Employee):	Huang Jiadong
	Gender: 	Male
	Education: 	EMBA.
	Department: 	Board of Directors
	Position: 	Chairman of the Board
	Home Address:	16 Kanglaibei Road, Junbing Village of Jinjiang, Quanzhou, Fujian
	Personal ID Number:	350582195807223091
	Contact Telephone:	13905979691
	Term of the Contract: 	from February 1, 2013 to January 31, 2016







 


To meet its operational needs, Party A employs
Party B for the first time. Pursuant to the relevant state laws, statutes and regulations, Party A and Party B, on the basis of
fairness, free will and consensus through negotiation, agree to enter into this Labor Contract as follows and adhere to the provisions
herein.


 


I. Term of the Contract:


 


1. Fixed Term: The term of the Contract
is three (3) years, from February 1, 2013 to January
31, 2016 (no probation period indicated).


 


II. Scope and Location of Work, and Change of Location
and Position


 


1. Based on Party A’s
need and Party B’s professional intent, Party B agrees to serve in a management position.


 


2. Party B’s location
of work is _______ (a prefecture-level city). However, should the operation (job) needs or requirements change, Party A may relocate
Party B.


 


Based on the nature of its position, Party
B should be accustomed to long-term business trips and willing to accept expatriate work assigned by Party A at any time.


 






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3. According to the business needs and requirements, Party A has the right to change Party B’s position based on the
latter’s expertise, specialty, competency and performance. Upon occurrence of the following circumstances, Party B shall
consent to the change(s) that Party A makes:


 





(1) If Party A, due to changes of production,
operation, scope of business, production structure and/or organization structure, needs to adjust Party B’s position, Party
B shall accept such adjustments;


 


(2) Party A may temporarily arrange for
Party B to work in other positions based on the need of production and operation, and the term of such arrangement will be determined
through consultation between the two parties;


 


(3) Party B’s performance fails to
meet the production, work quality and quantity standards and the requirements of his position, due to his skill level or physical
condition.


4, Party B agrees to conscientiously perform the responsibilities
and duties set forth by Party A and complete tasks on time, with the quality expected and in the quantity required.


 


III. Work Hours, Off Days and Vacations


 


1. Party A implements the State mandated
work schedule and may make certain rules regarding, and adjustments to, Party B’s specific work schedule based on the type
of position in accordance with relevant regulations. Party B must follow the work schedule specified by Party A.;


 


2. Due to the characteristics of Party
A’s industry, Party A may make adjustments to Party B’s work hours, work shifts


and off-day schedule, based on the work need, and Party B is
willing to follow Party A’s arrangement. Party A implements “more-work, more income” system and gives compensation
based on work; if Party B is willing to work overtime, Party A will provide overtime pay.


 


3. If Party B works overtime on statutory
holidays, Party A will settle payments directly in Party B’s total salary for each month.


 


IV. Compensation


 


Party A will pay Party B’s salary with one the following
compensation methods:


 


1. Work-Hour Based Salary: After the probation
period, the base salary is ¥7,000 per month. The salary actually paid each month includes overtime compensation while
bonus will be based on the criteria set by Party A.


 


2. Party B agrees to accept adjustments
in compensation that Party A will make based on its operational results, regulations, review of Party B’s performance and
reward/penalty record, and the change of Party B’s position.


 


V. Social Security


 


Party B is entitled to participate in social security program
according to law. Party B must provide written statement and relevant procedure documents to entrust Party A to make withholdings
and such payment on his behalf; Party A may withhold the personal payment portion from Party B’s salary and make such payment
on his behalf. If Party B does not provide such statement entrusting Party A to make such payment on his behalf, Party B will make
such payment by himself and the salary paid by Party A to Party B will include his personal payment portion.


 






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VI. Labor Protection and Condition


 


1. Party A will provide for Party B labor
protection equipment and working condition that are in compliance with State regulations and protect Party B’s safety and
health during work. If Party B has some physical handicap or is not suitable for the work specified herein, Party B must disclose
them factually before reporting to duty; otherwise Party B shall bear legal responsibilities resulting from withholding such information.


 


2. In accordance with relevant State and
local government regulations, Party A will provide training to Party B on labor safety knowledge, rules and policies, operation
procedures and skills; Party B must participate in such training and strictly follow the labor safety rules and operation procedures
related to his position.


 


VII. Matters Agreed Upon by Both Party A and Party B


 


1. Party A will provide fund for specific
project training for Party B.


 


2. Provision regarding the protection of
commercial secrets. If Party B has control over Party A’s commercial secrets and other confidential matters related to Party
A’s intellectual property, the two parties agree that Party B has the obligation to protect such confidential information,
and Party B may enter into no-competition agreement with Party B; if Party B violates the no-competition agreement, Party B must
be responsible for default damages payable to Party A. Such non-competition agreement only applies to Party A’s senior management
officers, senior technical staff and other employees that have such confidentiality obligation.


 


3. Other matters agreed upon: ____________________________________


 


VIII. Rules and Regulations, Publication of Notices


 


Party A must establish and improve all relevant rules and policies
and publish, or inform its employees of, such rules and policies; Party B must strictly follow such rules and policies. The company’s
rules and policies and labor disciplines must be made known to its employees in the form of posters and video displays.


 


IX. Dissolution of Labor Contract


 


1. In the event that Party B does not meet
the employment requirements or standards during the probation period, Party A may notify Party B and terminate this contract at
any time. The means of sending such notification include written notice, pubic poster and other means through which Party B can
be reached.


 


2. Party A may dismiss Party B immediately
if any of the following occurs on the part of Party B:


 


(1) failure to show up for work within 3
days upon execution of this contract;


 






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(2) failure to provide required documents
within 3 days upon execution of this contract, rendering it impossible for Party A to process employment paperwork;


 


(3) upon discovery that the personal information
provided by Party B to Party A is falsified or forged; such personal information includes but is not limited resignation certification,
personal ID, residence registration, education certification and health report, prior history of mental disease, contagious disease
and occupational disease and other illness that will seriously affect his work that has not been disclosed at the time of accepting
employment, prior history of serious disciplinary actions received during prior employment such as reprimand, dismissal or removal
from prior positions that has not been disclosed at the time of accepting employment, prior history of labor education, detention
or being pursued for criminal liabilities that has not been disclosed at the time of accepting employment, or prior history of
receiving criminal punishment or being arrested that has not been disclosed at the time of accepting employment; or refusal to
provide relevant material;


 


(4) serious violation of Party A’s
labor rules and policies:


 


i. being sanctioned for failure to carry
out management’s orders; the labor contract will be terminated for 2 such sanctions for failure to carry out management’s
orders or for violation of the company management rules;


 


ii. the labor contract will be terminated
for coming to work late or leaving work early 3 times in a month, or 8 times cumulatively in a quarter, or 20 times cumulatively
in a year;


 


iii. the labor contract will automatically
be terminated for absenteeism for 3 (inclusive) consecutive days in a month, 6 (inclusive) cumulative days in a quarter, or 4 (inclusive)
cumulative days in a year;


 


iv. if Party B is incompetent, Party A shall
have the right to lower his position or make other work arrangements; if Party B refuses Party A’s work arrangement and fails
to report to duty upon receiving notification, this contract will be automatically be terminated.


 


v. using violence, threat or coercion (such
as with a weapon) toward company employees or managers or insulting company officers and department managers (such as cursing supervisors,
malicious insubordination and scheming for evil purposes);


 


vi. smoking near inflammable chemical material
or in warehouses; if such action causes economic loss to the company, Party B will be pursued in accordance with the law;


 


vii. stealing colleagues’ belongings
or misappropriating company assets in excess of ¥200 in value and such action is verified to be true;


 






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viii. gambling or fighting (injuring others
under the influence of alcohol) in the workplace or being an accomplice in causing injury to others or damage to properties;


 


ix. submitting forged invoices in excess
of ¥200 for reimbursement such action is verified to be true;


 


x. receiving or demanding interests from
clients, suppliers or others who have business relationship or are in business discussion with the company, other embezzlement
or corruption, or using his position to ask for rebate or commission in excess of ¥200 in business activities; bribery and
receiving bribes and misusing the company funds;


 


xi. lending the company vehicle for others
to use without authorization; if such action causes economic loss to the company, Party B is liable for compensation;


 


xii. driving a company vehicle without a
valid driver’s license or without authorization;


 


xiii. organizing, promoting or disseminating
illegal comments and remarks, spreading rumors or going on strike or slow-down, inciting others to go on strike or slow-down, or
participating with others who are on strike, instigating accidents or attacking others, forming gangs and factions, causing damage
to the company’s reputation or interfering with the company’s normal operations;


 


xiv. forging, altering or imitating the
signatures of company officers which have caused damages to the company’s interest or benefit;


 


xv. violating the company’s rules
regarding confidentiality and intentionally disclosing the company’s secret documents;


 


xvi. trafficking, selling or consuming drugs,
visiting prostitutes, stealing, robbing and gambling; and such action is verified to be true;


 


 


xvii. having malicious work or service attitude
or intentionally damaging machinery, tools, materials


and products, causing economic damage in excess of ¥100
(inclusive) in one single act;


 


xviii. unreasonably refusing to accept Party
A’s reasonable work assignment, dispatch or arrangement;


 


(5) serious negligence of duties and responsibilities,
causing economic losses to Party A in excess of ¥3,000, including misconduct that harms the company’s reputation, disclosure
of Party A’s business secrets, resulting in economic losses and material consequences to Party A, and failure to meet the
work requirements and incompetence, resulting in economic losses to Party A;


 






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(6) if Party B is a vehicle operator, having
his driver’s license revoked or causing it to be invalid for more than 15 (inclusive) days due to his fault, or causing traffic
accidents with primary or secondary liabilities, resulting in property losses or damages in excess of ¥10,000;


 


(7) activities that violate operation rules
and regulations, resulting in losses in excess of ¥3,000;


 


(8) operation of his own business or engagement
in his private operations or other unauthorized part-time work (establishing labor relationship with other employers) during the
term of his employment, causing losses to Party A in excess of ¥3,000 due to its impact on his own work; and refusal to rectify
his actions as demanded by Party A;


 


(9) criminal prosecution and labor punishment
or being sent to labor education camps;


 


(10) request for resignation or having his
labor contract terminated by Party A through consultation;


 


(11) causing Party A to enter into or revise
any contract through fraud, coercion and other fraudulent means;


 


(12) other situations stipulated by relevant
law and statutes.


 


3. Upon occurrence of any of the following
situations, Party A may terminate the contract and dismiss Party B but Party A must notify Party B in advance:


 


(1) Party B’s inability to perform
work because of sickness or injury, even after receiving medical treatment;


 


(2) Party B’s failure to perform the
duties and responsibilities required of the position and, upon receiving training, still being unable to meet the requirements
of the position; refusal to accept other work arranged by Party A;


 


(3) Party A’s merger and acquisition,
spin-off, joint-venture, restructuring and reorganization, technical innovation, adjustment of operation method, relocation of
workplace due to pollution or other major events, or disappearance of the operation or position in which Party B is engaged or
serves, rendering it impossible to perform this contract;


 


(4) major difficulties in Party A’s
operations;


 


(5) any major changes in the circumstances
stipulated in the labor contract, resulting in inability to carry out the contract terms and the inability to reach agreement by
the two parties regarding the amendments of the contract;


 


(6) cease of operation ordered by the competent
authorities that determine Party A to be a polluting enterprise.


 






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X. Upon the occurrence of any of the following, Party
B may dissolve this agreement:


 


1. During the probation period;


 


2. If Party A forces Party B to work through
violence, threat or other means that restrict Party B’s personal freedom;


 


3. Upon the occurrence of other situations
as stipulated by the law and statutes.


 


XI. Dissolution, Termination and Renewal of the Labor
Contract


 


The dissolution, termination and renewal of the labor contract
will be processed in accordance with the relevant legal regulations and administrative rules. Party A promises to renew, upon expiration
of this contract, the labor contract on the terms and conditions herein; failure on the part of Party B to execute the renewal
of this contract will be considered voluntary termination by Party B of the labor contract relationship; in such event Party A
has no obligation to issue monetary compensation.


 


XII. Matters after Termination of This Contract


 


1. After dissolution or termination of
the labor contract, Party B is obligated to perform the following:


 


(1) carry out transition work with Party
A’s designee;


 


(2) return in good condition the stationary,
documents, equipment and other tangible or intangible assets that belong to Party A;


 


(3) return all the media, in complete form,
that contain important materials and information about Party A;


 


(4) assist Party A in sorting out the credits
and liabilities, turn over business contacts and relationships within his knowledge; business transaction(s) Party B that undertook
but failed to hand over properly will be regarded as liabilities or obligations incurred by Party B and Party B will bear several
liability to such debt owed by other parties; determination will be based on Party A’s records;


 


(5) complete procedures and process required
paperwork stipulated by Party A regarding resignation;


 


(6) complete other required procedures;


 


2. After dissolution or termination of
the labor contract, Party A is obligated to perform the following:


 


(1) complete procedures for Party B regarding
the termination of the labor contract and issue verification of Party B’s resignation upon request.


 






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(2) issue truthfully verification of Party
B’s employment history in a timely manner upon Party B’s request.


 


3. In the event that Party B fails to turn
in resignation 30 days in advance or leaves his position without authorization, Party A will not issue salary payment before any
transition work is completed.


 


4. If Party B leaves his position without
submitting resignation, disappears, or fails to perform the provisions of Item 1of Section XII of this contract, or fails to perform
the contractual obligation regarding training and the obligation regarding no-competition provisions, resulting in Party A’s
inability, or causing delay in Party A’s ability, to process procedures regarding B’s departure, Party B hereby irrevocably
admits that it will be his fault and that he will bear corresponding responsibilities.


 


5. In accordance with laws and regulations
and the provisions herein, Party B shall bear all responsibility for any money owed to Party A and for any economic loss caused
by his dissolution of the contract in violation of the terms and conditions thereof. Party A shall have the right to make deductions
of the corresponding amount from Party B’s salary, bonus, stipends and subsidies, provided that such deductions do not violate
relevant laws and statues; Party A has the right to pursue Party B for any shortage after such deductions.


 


XIII. Other Provisions


 


1. Conditions for appointment: including,
but not limited to, that Party B does not have other no-competition obligation and that Party B has no other labor relationship
with other employers.


 


2. Party B must adhere to operation procedures
and operation safety rules; Party B is entitled to receive medical treatment for any injury suffered while performing his duties.
However, if it is determined after investigation that such injury suffered by himself or by others is caused by his violation of
procedures or rules or by his overstepping his responsibilities,


Party B must bear all costs for treatment and compensate for
the economic loss suffered by others; and Party A will pursue Party B for any corresponding liabilities.


 


3. Party B is responsible for any personal
injury or loss suffered outside of his duties and beyond his work environment.


 


4. Party B must take proper care of Party
A’s equipment and properties, perform proper repairs and maintenance on equipment and tools under his care; if Party B give
equipment under his management to other people to use or manage, Party B shall be responsible for compensation for any loss resulting
from misuse.


 


5. Party B must follow the disciplines
and comply with the law; if any accident occurs as the result of his fighting or theft of company assets, Party B shall bear all
responsibility; Party A shall have no responsibility for such accident and will handle the situation in accordance with relevant
policies and pursue Party B for any liability in accordance with the law.


 






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6. Upon execution of this contract, Party
B must perform his service conscientiously. In general Party B cannot request dissolution of this contract. However, if the request
for resignation is due to extraordinary situations, Party B must submit such request in writing 30 days in advance. If Party B
unilaterally terminates this contract without approval from Party A and stops working or leaves his post without authorization,
Party B shall bear liability for breach and responsibility for compensation; if such action causes adverse impact on Party A’s
production, Party A may pursue Party B for corresponding liabilities.


 


7. The contract can be renewed upon agreement
by both parties, with the terms and conditions of the contract renewal determined through negotiation. If Party B does not wish
to renew toward the end of the contract, Party B must notify Party A 30 days in advance in order for Party A to make appropriate
arrangement.


 


XIV. Resolution of Conflicts


 


Any labor dispute must be settled through consultation between
the two parties; if such consultation fails, the dispute may be submitted to the company’s labor dispute mediation committee
or be submitted to legal proceedings.


 


XV. Supplementary Provisions


 


1. Other matters not provided herein will be handled in accordance
with relevant regulation or settled through consultation between the two parties. If any provisions herein are in conflict with
any new law or regulations, such new law or regulations shall prevail.


 


2. Party B has read all the provisions herein and willingly
accepted the terms and conditions of this labor contract; Party B is also familiar with Party A’s rules and policies and
is willing to abide by such rules and policies.


 


3. This contract is in duplicates, with one to each party, and
will become effective upon execution by both parties.


 


Attachments [None]


 


 


 


Party A: Jinjiang Hengda Ceramics Co., Ltd. (Company
seal)


Legal Representative: /s/ Huang Jiadong


Party B: /s/ Huang Jiadong


Date:February 1, 2013


 



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