Labor Contract


 


Contract S/N HDL[2012]0001


 


	Party A (Employer):	Jiangxi Hengdali Ceramics Co., Ltd.
	Address:	Ceramics Industry Base, Gao’an, Jiangxi
	Company Type:	 
	Legal Representative:	Su Pei Zhi
	Contact Telephone:	 
	 	 
	Party B (Employee):	Su Pei Zhi
	Gender:	Male
	Education:	Secondary professional trade school
	Department:	Board of Directors
	Position:	Executive Director
	Address:	 
	Personal ID Card No.:	 
	Contact Telephone:	 
	Term of the Contract:	from February 1, 2012 to January 31, 2013


 


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 execute this labor contract as follows and adhere to the provisions
herein.


 


I.           Term
of the Contract:


 


1,      
    Fixed:  1 year from February 1, 2012 to January
31, 2013 (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 objective, Party B agrees to serve in a management
position.


 


2,       
   Party B’s location of work is _______. However, should the operation require, Party A may change
Party B’s location of work.


 


Based on the nature of Party B’s position,
Party B should be accustomed to long business trips and agree to be dispatched by Party A for outside assignments at any time.


 


3,        
  According to the operation need and requirement, Party A has the right to change Party B’s position based
on Party B’s skill, specialty, ability and performance. Upon occurrence of the following circumstances, Party B should
consent to the change(s) that Party A makes:


 



    	 



    	 



    

  


(1)         If
Party A, due to the need of production and operation, product and production structure adjustment, organization structure change
and other circumstances, needs to adjust Party B’s position, and Party B must accept such adjustment;


 


(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
by one the following compensation method.


 


1.      
    Work-Hour Based Salary: after the probation period, the base salary is ¥12,000 per month. The
salary actually paid each month includes overtime compensation; 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.


 



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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.


 


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 no-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 provided: ____________________________________


 


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.


 



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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;



 


			(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:



 


		a.	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;



 


		b.	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;



 


		c.	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;



 


		d.	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.




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		e.	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);



 


		f.	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;



 


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



 


		h.	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;



 


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



 


		j.	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;



 


		k.	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;



 


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



 


		m.	organizing, promoting or disseminating illegal comments and remarks, spreading rumor or going on strike or slow-down, inciting
others to go on strike or slow-downs, 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;



 


		n.	forging the signature of the company executives, causing harm to the company’s interests;



 


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



 


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



 



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		q.	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;



 


		s.	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;



 


			(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;



 






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			(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.



 


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;



 



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			(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.



 


			(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 a resignation, disappears, or fails to perform the
provisions of Item 1 of 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.


 



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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.


 


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.          Rider


 


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.


 



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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:          /seal/
Jiangxi Hengdali Ceramics Construction Material Co., Ltd.


Legal Representative: /s/ Su Pei Zhi


January 30, 2012


 


Party B:          /s/
Su Pei Zhi


January 30, 2012


 








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