f8k062807ex10iii_stonemtn.htm


    Labor
      Contract

    


    Party
      A:  Zhejiang Kandi Vehicle Co., Ltd.

     

    Address:  Jinhua
      Industry Zong, Jinhua City, Zhejiang Province

    Party
      B:          Zhu
      Xiaoying                                
      

    ID
      No.
      ___________________________________________

    


    Party
      A
      and Party B make this contract on the principle of voluntaries and equality
      through mutual negotiation in accordance with Labor Law of the People’s Republic
      of China and other relevant prescriptions.

    


    
      	
              1.  

            	
              Term
                of labor contract

            


    

    The
      term
      of contract shall be   10  year(s) from this
10th day
      of July   (month) 2004,   (year) to this
      9th day
      of  July   (month),
2014  (year).

    


    
      	
              2.  

            	
              Scope
                of work

            


    

    Party
      B
      agrees to work at the post of
  CFO     and shall fulfill the task
      assigned for the post. If required by work, Party B agrees to change the
      post.

    


    
      	
              3.  

            	
              Work
                condition and labor protection

            


    

    Party
      A
      shall set up regulation on production safety and labor protection, and provide
      Party B with labor protection articles.

    


    Party
      B
      shall work in according with the safety operating procedure to
      ensure safety production. If Party B does not operate according to the
      standard operating procedure set by Party A, Party B shall make compensation
      for
      the economical losses caused to Party A.

    


    
      	
              4.  

            	
              Labor
                discipline

            


    

    Party
      B
      shall comply with the regulation that is set up by Part A in accordance with
      the
      Law and shall obey the management of Party A. If Party B breaches the
      regulation, Party A may give appropriate punishment to Party B in accordance
      with the regulations.

    


    
      	
              5.  

            	
              Labor
                compensation

            


    

    Labor
      compensation is executed according to method one.

    


    Method
      one: the labor compensation is made by Party A based on the rule of distribution
      according to work. Party B’ s labor compensation is made in accordance with the
      compensation regulation and method set by Party A

    


    Method
      Two: annual wage system. Annual wage is
      RMB  120,000    yuan, which is pre-tax
      wage. One part is monthly advance payment of RMB yuan that is made
      at the wage time of Party A, the other part of the wage is to be paid after
      the
      end of the working year. The annual wage is including all the wage subsidies
      and
      over time payment.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              6.  

            	
              Social
                insurance and welfare

            


    

    
      	
              (1)  

            	
              Party
                A and party B shall carry social insurances as required by the national
                law and regulations of the local government and pay social insurance
                in
                time. Party A shall withhold the individual part of the social insurance
                of Party B from the wage of Party
                B.

            


    

    
      	
              (2)  

            	
              Other
                welfare shall comply with the regulations of Party
                B.

            


    

    


    
      	
              7.  

            	
              Change
                and cancellation of contract.

            


    

    
      	
              (1)  

            	
              If
                circumstances change, such as Party A adjusts production or production
                projects, the two parties can change the content of labor contract by
                consensus.

            


    

    
      	
              (2)  

            	
              During
                the term of contract, each of the two parties can cancel the contract
                under the circumstances according to the prescriptions of Labor Law
                upon
                thirty days’ prior written notice to the other
                party.

            


    

    
      	
              (3)  

            	
              Under
                any of the following circumstances for Party B, Party A may cancel
                the
                contract at any time:

            


    

    1 Party
      B has absenteeism for over  3  working day or for
      over  15     times per
      year;

    2 Party
      B breaches the working regulation or operating procedure causing an accident,
      or
      has dereliction of duty causing serious consequences;

    3 Party
      B seriously breaches work order resulting in unmoral work of Party
      A;

    4 Party
      B seriously breaches the regulations or labor discipline of Party
      A;’

    5
      Party B
      is sentenced to detention or imprisonment or penalty suspended  or
      re-education through labor.

    


    
      	
              8.  

            	
              Termination
                o f contract

            


    

    (1) Under
      any of the following circumstances, the contract shall be
      terminated.

    1
      The
      contract will be terminated at the expiration date. If any party requests for
      renewal of the contract, it shall notify the other party. The procedures for
      renewal of the contract can be made upon mutual consensus of the two
      parties

    (2)
      Retirement or redundancy of Party B shall comply with relevant national
      regulations.

    2
      After
      the termination of the contract, Party A shall provide Party B with
      Certification of Termination of Labor Contract, and follow relevant
      procedure.

    


    
      	
              9.  

            	
              Breach
                Liabilities

            


    

    
      	
              (1)  

            	
              The
                contract shall come into effect once being signed and shall be carried
                out
                strictly by both parties.

            


    

    
      	
              (2)  

            	
              Should
                any party breach the contract, the liable party shall bear the legal
                responsibility, and make compensation for economical losses caused
                to the
                other party in view of the result and its
                liability.

            


    

    
      	
              (3)  

            	
              If
                Party B leaves his post without permission, and cause the termination
                of
                the contract, and caused direct economical losses to Party A, Party
                B
                shall make compensation according to the losses. If the economical
                losses
                are immeasurable, the Party A shall make compensation equal to amount
                of
                the standard monthly wage.

            


    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              10.  

            	
              Others

            


    

                                N/A

    
      
        

      



    
      	
              11.  

            	
              Any
                dispute arising out of performance of the contract may be settled
                by
                negotiation of the two parties.

            


    

    


    
      	
              12.  

            	
              The
                contract is in quadruplicate, with two copies holding by Party A
                , one
                holding by Party B and one filed in the supervision
                authority.

            


    

    


    


    Party
      A:                                                            Party
      B:        Zhu Xiaoying

    Legal
      representative:

    (or
      authorized person):

    Zhejiang
      Kandi Vehicle Co., Ltd.

    


    Date:
           July 8th,
      2004