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Exhibit 10.7  


 
 

Employment Agreement    
    


Party
A Shaanxi New Taohuayuan Culture Tourism Co., Ltd. 


Party
B Liu Bo 


Printed
by Xi'an Labor and Social Security Bureau 


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Party A (Employer)  



	Name:	 	Shaanxi New Taohuayuan Culture Tourism Co., Ltd.
	

Economic Nature:	
 	

The company is a perpetually existing stockholding limited company.
	

Domicile:	
 	

No. 1 Dongfeng Road, WeiYang Tourism Development Zone, Xi'an city, Shaanxi province.





Party B (Employee)  



	Name:	 	Liu Bo
	

Sex:	
 	

Female
	

Address:	
 	

No.402, building 6, Gaoxin 4 road, Xi'an Hi-Technology and industry development area.
	

Telephone number:	
 	

13571910218
	

Number of ID card:	
 	

610113197610117429
	

Date of Birth:	
 	

Oct 11, 1976





        In
accordance with Labor Law of PRC and other related laws, regulations, rules and policies, both parties, on the principle of free will and equality, arrived at a consensus after
consultation and signed the contract in order to observe the articles hereinafter together. 


Article 1 Duration of contract and probationary period  


        (1)   Both
parties choose the (3) one hereinafter as the designated duration of this contract: 



        (1)   Fixed
terms,    years, commencing on            ,20        , and terminating
on            ,20        . 


        (2)   Flexible
terms, commencing on            ,20        . 


        (3)   Commencing on May 3, 2004, and terminating on May 3, 2007


(till
the work is completed). 




        (2)   The
period on probation is    0    months, commencing on            ,20        , and terminating
on            ,20        .
 


2.    Work post and type of work (in production)  


        (1).  Party
A, in accordance with the demand of work or production, engages Party B to serve as the post of Director and secretary, not belonging to a poisonous and harmful
post. 


        (2).  Party
B, in line with Party A's demand, shall complete the work and meet the work standard. 



        (3).  While
Party B is fit for the work or the post,or not competent for the work, Party A may train Party B or change Party B's work post or type of work. 


3.    Working time  


        (1)   In
line with the Party B's work post, the (3)    working time system hereinafter is followed. 



        (1)   Standard
working system; (2)Flexible working system; (3)Comprehensive working system. 




        (2)   The
daily working time of standard working system is not more than 8 hours with the total working time in a week not more than 40 hours on average. 


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        (3)   Party
A, in line with its demand of production and operation, may prolong the working time after the consultation with the Workers' Union and Party B, whereas the
working time shall not be more than 1 hour; when there is a special occasion that prolonging the working time is needed, the prolonged working period shall not be more than 3 hours per
day and not more than 36 hours per month in total on terms that may ensure Party B's health. 


        (4)   Party
A, in line with the demand of work, has the power to arrange Party B's working shift and holidays in a reasonable way. 



4.    Compensation  


        (1)   Party A implement the annual salary system, the monthly pay of Party B is "24,000 Rmb yuan" = USD2,902.00.


        The
pay is distributed on the 15th day every month and it shall be distributed to Party B in full amount and cannot be pocketed and in arrears without reason. 


        Party
B's pay rises with the remuneration institution and standard of Party A's, and the pay granted by Party A shall not be less than the minimum local remuneration standard in legal
working hours. 


        (3)   Remuneration
for working extra shifts or extra hours is to be implemented according to the pertinent regulations of state. 


        (4)   Party
B enjoys the pay granted by Party A when in legal holidays, wedding vacation, bereavement leave and participating in social activities. 


5.    Labour conditions and protection  



        (1)   Party
A is to provide various kinds of working places and instruments met the national labor safety and hygiene standards and rules for Party B. 


        (2)   Party
A is to provide essential work protection articles and health care treatment and working conditions met the national work security and sanitary standards for Party
B. 


        (3)   Party
A is to implement the national laws and regulations regarding labor protection strictly and carry on health examination for Party B who is engaged in dangerous
jobs regularly to ensure the life security and health of her/him in the course of working. 


6.    Social insurance and welfare  


        (1)   Party
A is to be in line with "Labor law of the People's Republic of China "and the national or local relevant regulations and handle the social insurances such as
endowment insurance, unemployment insurance and medical insurance, industrial injury insurance, begetting insurance,etc. for Party B. Both parties are to pay the social insurance premium according to
the regulation. 


        (2)   The
treatment for employee's disability and occupational diseases caused by the injury in the process of working or other diseases, and injury not for the employer's
interest, female employee's begetting treatment, and the home leave, wedding and bereavement leave are to be carried out in line with the national pertinent regulations. 


        (3)   Party
B enjoys the legal festivals or holidays, weekends, wedding and bereavement leave, female employee's maternity leave, etc. If Party B works for more than one year
in succession, who is to enjoy annual leave with pay. 


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7.    Labor discipline  


        (1)   Party
B shall observe rules and regulations made by Party through democratic procedure in line with the laws and regulations of the state; 


        (2)   Party
B shall strictly observe Party A's operational procedure and safety regulations; 


        (3)   Party
B shall cherish the property of Party A and safeguard Party A's trade secret. 


8.    The alteration, cancellation and renewal of contract  


        (1)   Both
parties may require the alteration of the contents of the contract, but the alteration of the contract will come into force after both parties have consulted and
agreed with each other. 


        (2)   Within
the indentured period, the labor contract can be cancelled after the both parties arrive at a consensus. 


        (3)   Party
A may cancel the contract in the following situations, if Party B: 



        (1)   is
proved to be not qualified for employment premises on probation; 


        (2)   violates
labor disciplines or Party A's rules and regulations seriously; 


        (3)   neglects
his or her duty seriously and engages in malpractices for selfish ends, which have caused great harm to Party A's interests; 


        (4)   ascertains
criminal responsibility in accordance with the law. 




        (4)   Party
A may cancel the contract but shall notify Party B in written form 30 days ahead of time in the following situations: 



        (1)   While
Party B is ill or is injured not-for-work, after his or her medical treatment expires, if he or she still can not engage in the original
work and other work assigned by Party A as well; 


        (2)   Party
B is not competent for the post, and is still not competent for the work through training or alteration of work; 


        (3)   The
objective situations based on conclusion of the said contract have materially altered, which cause the contract unable to be fulfilled, after both parties
consultation, the said two still can not reach an agreement on altering the contract; 



        (4)   Party
A may reduce the staff ,while moving the sites of the factory for preventing and curing the industrial pollution sources, or being carried on legal rectification
on the edge of bankruptcy, or undergoing serious management difficulties, or in line with "the regulations of enterprise's economic layoffs "and other relevant regulations. 




        (5)   If
Party A cancel the said labor contract according to this article section 2, section 4, it shall offer economic compensation to Party B in accordance
with relevant state regulations. In addition, while the contract is cancelled in accordance with the item 4 of section 4 of the contract, if Party employs personnel within six months, it should
give preference to Party B. 


        (6)   In
one of the following situations, Party A may not cancel the labor contract according to the 4th section of this article, if Party B: 



        (1)   suffers
from the occupational disease, being injured for work and confirmed losing labor capacity partly or wholly; 


        (2)   is
diseased or injured nor for work and in stipulated medical treatment period; 


        (3)   is
in pregnancy period, childbirth period and nursing period if she is a female employee; 



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        (4)   Other
situations that laws, administrative statutes have stipulated. 




        (7)   If
Party B cancels the labor contract, he or she shall notify Party A in written form 30 days ahead of time. If Party B has caused damages to Party A,
which has not been resolved yet, or is under investigation for other problems, he or she can' not cancel the contract. 



        (8)   Party
B can tell Party A to cancel the labor contract at any time if there exists the following situations: 



        (1)   Within
probationary period; 


        (2)   Party
A forced Party B to work with violence, threatening means or limiting his or her freedom illegally; 


        (3)   Party
A has not paid Party B's remuneration or offered labor condition in accordance with the said labor contract. 




        (9)   The
contract terminates at once while its duration expires. If both parties agree to renew the contract, it shall notify the other party and renew the contract before
the labor contract expires. 


        (10)This
contract terminates at once while Party B is dead or reaches retirement, resignation from office conditions ruled by legal provisions, and the agreed terminating terms in the
contract appear. 


        (11) After
the cancellation and rescission of the contract, both parties shall fulfill the formalities of leaving office and transferring of personal file and other relevant
formalities within 7 days. 


9.    Liability for breach of contract  


        (1)   The
party with fault assumes the liability for breach of contract for the failure or incomplete fulfillment of the contract arising from the faults of any party; If the
fault belongs to the both parties', each party is to assume the respective liabilities for breach of contract separately according to the actual conditions. 



        (2)   If
one party violates the contract articles and does harm to the other, one shall pay the damages to the other according to the consequence and responsibility of the
failure of contract. 


        (3)   Party
A shall assume the compensation responsibility in accordance with the law in the following situations: 



        (1)   The
rules and regulations that Party A made has violated the laws and regulations, and caused damages to Party B; 



        (2)   Party
A pockets or is in arrears with the salary without reason, refuses to pay for work extra shifts or hours, distributes the pay under the minimum criterion and does
not pay the economic compensation that shall be paid after the cancellation of the contract and other situations which cause economic damages to Party B; 


        (3)   Party
A violates the labor protection regulations regarding the female employees and teenage workers, which have harm the interest of Party B. 




        (4)   Party
B shall bear the compensation responsibility in the following situations: 



        (1)   Party
A has the right to collect recruitment fee, training expenses and the other economic losses arising from Party B's breach of contract, while Party B is trained
with the funds by Party A or employed by Party A and then Party B cancels the contract without good reason. 


        (2)   Party
B does not to fulfill the contract, which causes direct economic losses to Party A's production, management and work. 



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        (3)   Party
B causes direct economic losses to Party A for violating the secret items of the agreement. 




10.    Dispute settlement  


        After there is a labor dispute, it may be resolve through the two parties' consultation or both parties can apply mediation to Labor Dispute Mediation Committees
(group) of Party A or apply arbitration
to Labor Dispute Arbitration Commission directly too. Application for arbitration shall be proposed in written form in 60 days from the day of the labor dispute. 



11.    The other clauses need to be ascertained or the above-mentioned clauses both parties think that need to be altered or need to be
consulted are as follows: 











12.    While unaccomplished matters in this contract or contract terms are contradictory to the current labor laws and regulations, the
current labor laws and regulations will be abided by and carried out. 


13.    The contract comes into force from the date, on which both parties sign (stamp) the contract, and all the formalities with the
administrative department of the social security shall be fulfilled in one month after the contract is signed. This contract is done in duplicate, and each party holds one copy. 


14.    Enclosured are the attachments to the contract, which have the equal effect as the said contract. 



	(1)	 	 
	 	 	

	(2)	 	 
	 	 	

	(3)	 	 
	 	 	

	(4)	 	 
	 	 	







	Party A: (stamp)	 	Party B: Liu Bo
	Shaanxi New Taohuayuan Culture Tourism Co., Ltd.	 	 
	 	 	 
	 	 	 
	 	 	 
	Legal representative (or its agent):	 	 
	 	 	 
	 	 	 
	 	 	 
	Date: May 3, 2004	 	Date: May 3, 2004
	 	 	 
	Unit governing the labor contract:	 	(stamp)
	 	 	 
	 	 	 
	 	 	 
	Date: May 4, 2004	 	 




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