Document:

EXHIBIT 10.3

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT ("Agreement") is made
and entered into as of the 8th day of April, 2011 by and between China Films Technology Inc., a Nevada corporation
(hereinafter called the "Company"), and Zhang Zhian (hereinafter called the "Executive").

RECITALS

WHEREAS, the Company is in the business of Manufacturing and
Distribution of BOPET films; and

WHEREAS, the Company desires to maintain the employ of the
Executive as the Chairman of the Company, and the Executive is willing to continue such employment; and

WHEREAS, as a condition precedent to and as an incentive to
the Company to maintain the employ of the Executive as the Chairman of the Company, the Company and the Executive desire to record
the arrangements for such employment, in the manner provided for herein and upon the terms and conditions set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the promises and mutual
covenants herein contained, and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged,
the parties agree as follows:

1.Employment. 

1.1Employment and Term. The Company hereby agrees to employ
the Executive and the Executive hereby agrees to serve the Company, on the terms and conditions set forth herein, for the period
commencing on the date hereof and expiring on 31st Mar 2013 (the “Initial Term”) unless sooner terminated
as hereinafter set forth. This Agreement shall be extended for an additional 2 years year term (the “Renewal Term,”
and collectively with the Initial Term, the “Term”) upon prior written mutual agreement between the Company and the
Executive of at least ninety (90) days prior to the expiration of the Initial Term.

 

1.2Duties of Executive. The Executive shall serve as the Chairman
of the Company and shall have powers and authority superior to any other officer or employee of the Company or of any subsidiary
of the Company, including, without limitation, the duties and responsibilities customarily associated with a Chairman. The Executive
shall devote substantially all his working time and attention to the business and affairs of the Company (excluding any vacation
and sick leave to which the Executive is entitled), render such services to the best of his ability, and use his reasonable best
efforts to promote the interests of the Company. It shall not be a violation of this Agreement for the Executive to (A) serve
on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational
institutions, and (C) manage personal investments, so long as such activities do not significantly interfere with the performance
of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. The Executive's obligations
hereunder shall run only to the Company, and not to the Company’s affiliates, if any.

 

 

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1.3Place of Performance. In connection with his employment
by the Company, the Executive shall be based at the Company's principal executive offices except for travel reasonably necessary
in connection with the Company's business.

2.Compensation.

2.1Base Salary. Commencing on the effective date of this
Agreement, the Executive shall receive an annual base salary (the “Base Salary”) of RMB420,000 during the first year
of the Initial Term, with annual increases thereafter during the Term of this Agreement. The Base Salary shall be payable in installments
consistent with the Company's normal payroll schedule, subject to applicable withholding and other taxes, and shall not be decreased
for any reason.

2.2Incentive Compensation. The Executive shall be entitled
to receive such bonus payments or incentive compensation as may be determined at any time or from time to time by the Board of
Directors of the Company (or any authorized committee thereof) in its discretion.

 

3.Expense Reimbursement and Other Benefits.

3.1Expense Reimbursement. During the Term of Executive's
employment hereunder, the Company, upon the submission of reasonable supporting documentation by the Executive, shall reimburse
the Executive for all reasonable expenses actually paid or incurred by the Executive in the course of and pursuant to the business
of the Company, including expenses for travel, lodging and entertainment.

3.2Vacation. During the Term of Executive’s Employment
hereunder, the Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and
practices of the Company and its subsidiaries as in effect at any time hereafter with respect to other key executives of the Company
and its subsidiaries; provided, however, that in no event shall Executive be entitled to fewer than four weeks paid vacation per
year, as well as pay for holidays observed by the Company.

4.Termination.

4.1Termination for Cause. Notwithstanding anything contained
to the contrary in this Agreement, this Agreement may be terminated by the Company for Cause. As used in this Agreement, “Cause”
shall only mean:

(a)               
an act or acts of personal dishonesty taken by the Executive and intended to result in substantial
personal enrichment of the Executive at the expense of the Company; 

(b)              
subject to the following sentences, repeated violation by the Executive of the Executive's
material obligations under this Agreement which are demonstrably willful, persistent and deliberate on the Executive’s part
and which are not remedied in a reasonable period of time after receipt of written notice from the Company’s Board of Directors;
or

 

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(c)               
the conviction of the Executive for any criminal act which is a felony and which shall result
in a custodial sentence of 5 years or more. 

Upon any reasonable and good faith determination by the Company's
Board of Directors that Cause exists under clause (a) of the preceding sentence and clause (b) of the preceding sentence (to the
extent the violation under said clause (b) has not been cured by the Executive), the Company shall cause a special meeting of the
Board to be called and held at a time mutually convenient to the Board and Executive, but in no event later than ten (10) business
days after Executive's receipt of the notice contemplated by clauses (a) and (b). Executive shall have the right to appear before
such special meeting of the Board with legal counsel of his choosing to refute any determination of Cause specified in such notice,
and any termination of Executive's employment by reason of such Cause determination shall not be effective until Executive is afforded
such opportunity to appear. Any termination for Cause pursuant to clause (a) or (b) of the first sentence of this Section 4.1 shall
be made in writing to Executive, which notice shall set forth in detail all acts or omissions upon which the Company is relying
for such termination. Upon any termination pursuant to this Section 4.1, the Executive shall be entitled to be paid six months
of his Base Salary from the date of the termination or the remaining unexpired term, of this Employment Agreement, whichever shall
be shorter. The Executive shall be entitled to enjoy all benefits given under this Employment Agreement, including but without
limiting the generality thereof, those referred to in clauses 2 and 3 and sub-clauses thereof during said Termination period. Notwithstanding
anything contained herein, if the Executive is precluded from acting as an Executive for legal or other reasons, the terms of this
contract and obligations contained herein including those referred to in Clause 3 hereof, will be fully honored as if the said
termination had occurred for ‘Without Cause’.

4.2Disability. Notwithstanding anything contained in this
Agreement to the contrary, the Company, by written notice to the Executive, shall at all times have the right to terminate this
Agreement, and the Executive's employment hereunder, if the Executive shall, as the result of mental or physical incapacity, illness
or disability, fail to perform his duties and responsibilities provided for herein for a period of more than one hundred twenty
(120) consecutive days in any 12-month period. Upon any termination pursuant to this Section 4.2, the Executive shall be entitled
to be paid his Base Salary for the remaining term of the Agreement. In the event that the Agreement has less than six months remaining
at such time, Executive shall be entitled to a payment equal to six months of his Base Salary. In addition, Executive shall be
entitled to reimbursement for all business expenses incurred prior to his disability.

4.3Death. In the event of the death of the Executive during
the Term of his employment hereunder, the Company shall pay to the estate of the deceased Executive an amount equal to the Base
Salary for the remaining term of this Agreement. In the event that the Agreement has less than six months remaining at such time,
Executive shall be entitled to a payment equal to six months of his Base Salary and in addition, Executive shall be entitled to
reimbursement for all business expenses incurred prior to his death. The estate of the deceased Executive will inherit all vested
or accrued but not yet exercised shares due as at the date of the death of the Executive and which will be acquired within the
same time frame as referred to in clause 2 hereof.

4.4 Optional Termination. Notwithstanding anything contained
in this Agreement to the contrary, the Executive, by giving thirty (30) days prior written notice to the Company, shall one year
after the date of this Agreement, have the right to terminate this Agreement at his sole discretion. Upon any termination pursuant
to this Section 4.4, the Executive shall be entitled to be paid his Base Salary and the benefit referred to hereinbefore owing
through to the date of termination and the Company shall have no further liability hereunder thereafter (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination and as to the vesting of Options pursuant to Section
2.3(d)), unless the Executive and the Company agree to a different arrangement.

 

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4.5 Termination Without Cause. At any time the Company shall have
the right to terminate Executive's employment hereunder by written notice to Executive; provided, however, that the Company shall:

 

(a)               
pay to Executive any all unpaid Base Salary and all benefits referred to in Clauses 2 hereof
and allow the Executive to enjoy all the benefits given hereunder for the period remaining period of this Employment Agreement
and will further allow to receive all pro-rata bonus, incentive and option shares that would be payable had Executive completed
a full term of employment; 

 

(b)              
pay to the Executive in a lump sum, in cash within 30 days after the date of employment termination,
an amount equal to the greater of (i) 100% of his annual Base Salary then in effect, or (ii) the balance of the Executive’s
Base Salary from the effective date of termination through the expiration of the Initial Term or Renewal Term then in effect; and

 

(c)               
continue to pay the Executive’s health and disability insurance, and all other benefits
referred to in clause 3 hereof for the longer of a period of twelve (12) months or the remaining term of this Agreement, whichever
is longer. 

 

(d)              
The Company shall be deemed to have terminated the Executive's employment pursuant to this
Section 4.5 if such employment is terminated by the Company without Cause, by the Executive voluntarily for Good Reason, or as
a result of a Charge in Control. 

 

(i)                
For purposes of this Agreement, "Good Reason" means:

 

1)                 
the assignment to the Executive of any duties inconsistent in any respect with the Executive's
position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated
by Section 1.2 of this Agreement, or any other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

2)                 
any failure by the Company to comply with any of the provisions of Section 2 or Section 3
of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied
by the Company promptly after receipt of notice thereof given by the Executive;

 

3)                 
the Company's requiring the Executive to be based at any office or location more than fifty
(50) miles from its current executive offices, except for travel reasonably required in the performance of the Executive's responsibilities;

 

4)                 
any change in the designation of the particular executive that the Executive is obligated
to report to under Section 1.2 hereof;

 

5)                 
any purported termination by the Company of the Executive's employment otherwise than as expressly
permitted by this Agreement; or

 

 

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6)                 
any termination by the Executive for any reason during the three-month period following the
effective date of any Change in Control.

 

(ii)              
For purposes of this Agreement, a “Change in Control” shall mean:

 

1)                 
The acquisition (other than by or from the Company), at any time after the date hereof, by
any person, entity or “group,” within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 50% or more of either the then outstanding shares of common stock or the combined voting power of the Company's
then outstanding voting securities entitled to vote generally in the election of directors; 

 

2)                 
All or any of the individuals who, as of the date hereof, constitute the Board (as of the
date hereof the "Incumbent Board") cease for any reason to constitute at least a majority of the Board, provided that
any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's shareholders,
was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination
of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to
the election of the directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; 

 

3)                 
Approval by the shareholders of the Company of (A) a reorganization, merger or consolidation
with respect to which persons who were the shareholders of the Company immediately prior to such reorganization, merger or consolidation
do not, immediately thereafter, own more than 75% of the combined voting power entitled to vote generally in the election of directors
of the reorganized, merged or consolidated company's then outstanding voting securities, (B) a liquidation or dissolution of the
Company, or (C) the sale of all or substantially all of the assets of the Company, unless the approved reorganization, merger,
consolidation, liquidation, dissolution or sale is subsequently abandoned.

 

4)                 
The approval by the Board of the sale, distribution and/or other transfer or action (and/or
series of sales, distributions and/or other transfers or actions from time to time or over a period of time), that results in the
Company's ownership of less than 50% of the Company's current assets.

 

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5.Restrictive Covenants.

5.1Nondisclosure. During his employment and for twelve (12)
months thereafter, Executive shall not divulge, communicate, use to the detriment of the Company or for the benefit of any other
person or persons, or misuse in any way, any Confidential Information (as hereinafter defined) pertaining to the business of the
Company, unless required to do so by a governmental agency or court of law. Any Confidential Information or data now or hereafter
acquired by the Executive with respect to the business of the Company shall be deemed a valuable, special and unique asset of the
Company that is received by the Executive in confidence and as a fiduciary, and Executive shall remain a fiduciary to the Company
with respect to all of such information. For purposes of this Agreement, "Confidential Information" means all material
information about the Company's business disclosed to the Executive or known by the Executive as a consequence of or through his
employment by the Company (including information conceived, originated, discovered or developed by the Executive) after the date
hereof, and not generally known.

5.2Nonsolicitation of Employees. While employed by the Company
and for a period of twelve (12) months thereafter, Executive shall not directly or indirectly, for himself or for any other person,
firm, corporation, partnership, association or other entity, attempt to employ or enter into any contractual arrangement with any
employee or former employee of the Company, unless such employee or former employee has not been employed by the Company for a
period in excess of six months. Notwithstanding the foregoing, the Executive shall not be restricted
in hiring any person who responds to any general solicitation for employees or public advertising of employment opportunities (including
through the use of employment agencies) not specifically directed at any such person.

5.3Covenant Not to Compete. Executive will not, at any time,
during the Term of this Agreement, and for a period of twelve (12) months thereafter, either directly or indirectly, engage in,
with or for any enterprise, institution, whether or not for profit, business, or company, competitive with the business (as identified
herein) of the Company as such business may be conducted on the date thereof, as a creditor, guarantor, or financial backer, stockholder,
director, officer, consultant, advisor, employee, member, or otherwise of or through any corporation, partnership, association,
sole proprietorship or other entity; provided, that an investment by Executive, his spouse or his children is permitted if such
investment is not more than four percent (4%) of the total debt or equity capital of any such competitive enterprise or business.
As used in this Agreement, the business of Employer shall be deemed to include any business which directly competes with the Company
in the medical device industry. The covenant not to compete for twelve (12) months after termination shall only be effective if
the Executive has received all compensation due to him pursuant to this Agreement. The Company shall have the right in its sole
discretion to waive this non-compete provision.

 

5.4Injunction. It is recognized and hereby acknowledged
by the parties hereto that a breach by the Executive of any of the covenants contained in Sections 5.1, 5.2 or 5.3 of this
Agreement will cause irreparable harm and damage to the Company, the monetary amount of which may be virtually impossible to ascertain.
As a result, the Executive recognizes and hereby acknowledges that the Company shall be entitled to an injunction from any court
of competent jurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Section 5
by the Executive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to
injunction shall be cumulative and in addition to whatever other remedies the Company may possess.

 

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6.Re-negotiate. This contract may be re-negotiated by
the Executive should the circumstances and the economic situation of the company shows improvement beyond the Company’s forecast.

7.Entire Agreement. This instrument contains the entire
agreement of the parties, and supersedes any prior or contemporaneous statements or understandings by or between the parties. This
Agreement may be changed only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification,
extension or discharge is sought.

8.Governing Law/Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of Nevada, excluding choice of law provisions. The parties hereby
irrevocably and unconditionally agree to submit any legal action or proceeding relating to this Agreement to the non-exclusive
general jurisdiction of the courts of the State of Nevada located in Las Vegas and the courts of the United States located in Nevada
and, in any such action or proceeding, consent to jurisdiction in such courts and waive any objection to the venue in any such
court. Executive agrees that service of process upon Executive in any such action or proceeding may be made by Canada Post or United
States mail, certified or registered, return receipt requested, postage prepaid. Unless otherwise agreed, the prevailing party
in any litigation relating to the interpretation or enforcement of this Agreement shall be entitled to reasonable costs and attorneys'
fees.

9.Notices: Any notice required or permitted to be given
under this Agreement shall be in writing and shall be deemed to have been given (a) when delivered by hand, (b) when deposited
in the United States mail, by registered or certified mail, return receipt requested, postage prepaid, or via overnight courier,
(c) one day after electronically mailed either in the text of an email message or attached in a commonly readable format, and the
sender has received no generated notice that the email message has not been successfully delivered, or (d) upon receipt of proof
of sending thereof when sent by facsimile, addressed as follows:

	If to the Company:	China Films Technology Inc.
	 	
        Yunmeng Economic and Technological Development Zone,

        Firsta Road, Yunmeng County, Hubei Province, China 432500.

	with a copy to:	
        Gersten Savage LLP

        600 Lexington Avenue

        New York, New York 10022

        Attention: Peter J. Gennuso, Esq.

        Fax: 212-980-5192

        Email: pgennuso@gskny.com

	 	 
	If to the Executive:	
        Yunmeng Economic and Technological Development Zone,

        Firsta Road, Yunmeng County, Hubei Province, China 432500.

        

        

         

 or to such other addresses as either party hereto may
from time to time give notice of to the other in the aforesaid manner.

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10.Successors.

(a)This Agreement is personal to the Executive and without
the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent
and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives.

(b)This Agreement shall inure to the benefit of and be binding
upon the Company and its successors and assigns.

(c)The Company will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the
Company as hereinbefore defined and any successor to its business and/or assets which assumes and agrees to perform this Agreement
by operation of law or otherwise.

11.Severability. The invalidity of any one or more of
the words, phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining
portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the
event that any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall be declared
invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or
clauses, or section or sections had not been inserted. If such invalidity is caused by length of time or size of area, or both,
the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.

12.Waivers. The waiver by either party hereto of a breach
or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach
or violation.

13.Damages. Nothing contained herein shall be construed
to prevent the Company or the Executive from seeking and recovering from the other damages sustained by either or both of them
as a result of its or his breach of any term or provision of this Agreement.

14.No Third Party Beneficiary. Nothing expressed or implied
in this Agreement is intended, or shall be construed, to confer upon or give any person (other than the parties hereto and, in
the case of Executive, his heirs, personal representative(s) and/or legal representative) any rights or remedies under or by reason
of this Agreement.

15.Full Settlement. The Company’s obligation to
make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or
others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of
the amounts payable to the Executive under any of the provisions of this Agreement. The Company agrees to pay, to the full extent
permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of any contest (regardless of
the outcome thereof) by the Company or others of the validity or enforceability of, or liability under, any provision of this Agreement
or any guarantee of performance thereof, plus in each case interest at the applicable Federal rate provided for in Section 7872(f)(2)
of the Internal Revenue Code of 1986, as amended.

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16.Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

17.Executive’s Recognition of Agreement. Executive
acknowledges that Executive has read and understood this Agreement, and agrees that its terms are necessary for the reasonable
and proper protection of the Company’s business. Executive acknowledges that Executive has been advised by the Company that
Executive is entitled to have this Agreement reviewed by an attorney of Executive’s selection, at Executive’s expense,
prior to signing, and that Executive has either done so or elected to forgo that right.

[Remainder of page left intentionally blank.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement
as of the date first above written.

 

	 	
        COMPANY: China Films Technology Inc.

         

        By:Yang Yong Sheng

          

        (sd.)

         

	 	 
	 	
        EXECUTIVE:

         

        Zhang Zhian

          

        (sd.)

         

 

 

 

 

 

    	10EXHIBIT 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT ("Agreement") is made
and entered into as of the 8th day of April, 2011 by and between China Films Technology Inc., a Nevada corporation
(hereinafter called the "Company"), and Yang Yong Sheng (hereinafter called the "Executive").

RECITALS

WHEREAS, the Company is in the business of Manufacturing and
Distribution of BOPET films; and

WHEREAS, the Company desires to maintain the employ of the
Executive as the President and Chief Executive Officer of the Company, and the Executive is willing to continue such employment;
and

WHEREAS, as a condition precedent to and as an incentive to
the Company to maintain the employ of the Executive as the President and Chief Executive Officer of the Company, the Company and
the Executive desire to record the arrangements for such employment, in the manner provided for herein and upon the terms and conditions
set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the promises and mutual
covenants herein contained, and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged,
the parties agree as follows:

1.Employment.

1.1Employment and Term. The Company hereby agrees to employ
the Executive and the Executive hereby agrees to serve the Company, on the terms and conditions set forth herein, for the period
commencing on the date hereof and expiring on 31st Mar 2013 (the “Initial Term”) unless sooner terminated
as hereinafter set forth. This Agreement shall be extended for an additional 2 years year term (the “Renewal Term,”
and collectively with the Initial Term, the “Term”) upon prior written mutual agreement between the Company and the
Executive of at least ninety (90) days prior to the expiration of the Initial Term.

1.2Duties of Executive. The Executive shall serve as the Chief
Executive Officer of the Company and shall have powers and authority superior to any other officer or employee of the Company or
of any subsidiary of the Company, including, without limitation, the duties and responsibilities customarily associated with a
chief executive (e.g., control of day-to-day operations, signing checks, hiring and firing, etc.). The Executive shall be required
to report solely to, and shall be subject solely to the supervision and direction of the Board of Directors and no other person
or group shall be given authority to supervise or direct Executive in the performance of his duties. In addition, the Executive
shall regularly consult with the Chairman of the Board with respect to the Company's business and affairs. The Executive shall
devote substantially all his working time and attention to the business and affairs of the Company (excluding any vacation and
sick leave to which the Executive is entitled), render such services to the best of his ability, and use his reasonable best efforts
to promote the interests of the Company. It shall not be a violation of this Agreement for the Executive to (A) serve on corporate,
civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions,
and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the
Executive’s responsibilities as an employee of the Company in accordance with this Agreement. The Executive's obligations
hereunder shall run only to the Company, and not to the Company’s affiliates, if any.

 

1.3Place of Performance. In connection with his employment
by the Company, the Executive shall be based at the Company's principal executive offices except for travel reasonably necessary
in connection with the Company's business.

 

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2.Compensation.

2.1Base Salary. Commencing on the effective date of this
Agreement, the Executive shall receive an annual base salary (the “Base Salary”) of RMB360,000 during the first year
of the Initial Term, with annual increases thereafter during the Term of this Agreement. The Base Salary shall be payable in installments
consistent with the Company's normal payroll schedule, subject to applicable withholding and other taxes, and shall not be decreased
for any reason.

2.2Incentive Compensation. The Executive shall be entitled
to receive such bonus payments or incentive compensation as may be determined at any time or from time to time by the Board of
Directors of the Company (or any authorized committee thereof) in its discretion.

3.Expense Reimbursement and Other Benefits.

3.1Expense Reimbursement. During the Term of Executive's
employment hereunder, the Company, upon the submission of reasonable supporting documentation by the Executive, shall reimburse
the Executive for all reasonable expenses actually paid or incurred by the Executive in the course of and pursuant to the business
of the Company, including expenses for travel, lodging and entertainment.

3.2Vacation. During the Term of Executive’s Employment
hereunder, the Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and
practices of the Company and its subsidiaries as in effect at any time hereafter with respect to other key executives of the Company
and its subsidiaries; provided, however, that in no event shall Executive be entitled to fewer than four weeks paid vacation per
year, as well as pay for holidays observed by the Company.

4.Termination.

4.1Termination for Cause. Notwithstanding anything contained
to the contrary in this Agreement, this Agreement may be terminated by the Company for Cause. As used in this Agreement, “Cause”
shall only mean:

(a)               
an act or acts of personal dishonesty taken by the Executive and intended to result in substantial
personal enrichment of the Executive at the expense of the Company; 

(b)              
subject to the following sentences, repeated violation by the Executive of the Executive's
material obligations under this Agreement which are demonstrably willful, persistent and deliberate on the Executive’s part
and which are not remedied in a reasonable period of time after receipt of written notice from the Company’s Board of Directors;
or

(c)               
the conviction of the Executive for any criminal act which is a felony and which shall result
in a custodial sentence of 5 years or more. 

Upon any reasonable and good faith determination by the Company's
Board of Directors that Cause exists under clause (a) of the preceding sentence and clause (b) of the preceding sentence (to the
extent the violation under said clause (b) has not been cured by the Executive), the Company shall cause a special meeting of the
Board to be called and held at a time mutually convenient to the Board and Executive, but in no event later than ten (10) business
days after Executive's receipt of the notice contemplated by clauses (a) and (b). Executive shall have the right to appear before
such special meeting of the Board with legal counsel of his choosing to refute any determination of Cause specified in such notice,
and any termination of Executive's employment by reason of such Cause determination shall not be effective until Executive is afforded
such opportunity to appear. Any termination for Cause pursuant to clause (a) or (b) of the first sentence of this Section 4.1 shall
be made in writing to Executive, which notice shall set forth in detail all acts or omissions upon which the Company is relying
for such termination. Upon any termination pursuant to this Section 4.1, the Executive shall be entitled to be paid six months
of his Base Salary from the date of the termination or the remaining unexpired term, of this Employment Agreement, whichever shall
be shorter. The Executive shall be entitled to enjoy all benefits given under this Employment Agreement, including but without
limiting the generality thereof, those referred to in clauses 2 and 3 and sub-clauses thereof during said Termination period. Notwithstanding
anything contained herein, if the Executive is precluded from acting as an Executive for legal or other reasons, the terms of this
contract and obligations contained herein including those referred to in Clause 3 hereof, will be fully honored as if the said
termination had occurred for ‘Without Cause’.

 

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4.2Disability. Notwithstanding anything contained in this
Agreement to the contrary, the Company, by written notice to the Executive, shall at all times have the right to terminate this
Agreement, and the Executive's employment hereunder, if the Executive shall, as the result of mental or physical incapacity, illness
or disability, fail to perform his duties and responsibilities provided for herein for a period of more than one hundred twenty
(120) consecutive days in any 12-month period. Upon any termination pursuant to this Section 4.2, the Executive shall be entitled
to be paid his Base Salary for the remaining term of the Agreement. In the event that the Agreement has less than six months remaining
at such time, Executive shall be entitled to a payment equal to six months of his Base Salary. In addition, Executive shall be
entitled to reimbursement for all business expenses incurred prior to his disability.

4.3Death. In the event of the death of the Executive during
the Term of his employment hereunder, the Company shall pay to the estate of the deceased Executive an amount equal to the Base
Salary for the remaining term of this Agreement. In the event that the Agreement has less than six months remaining at such time,
Executive shall be entitled to a payment equal to six months of his Base Salary and in addition, Executive shall be entitled to
reimbursement for all business expenses incurred prior to his death. The estate of the deceased Executive will inherit all vested
or accrued but not yet exercised shares due as at the date of the death of the Executive and which will be acquired within the
same time frame as referred to in clause 2 hereof.

4.4 Optional Termination. Notwithstanding anything contained
in this Agreement to the contrary, the Executive, by giving thirty (30) days prior written notice to the Company, shall one year
after the date of this Agreement, have the right to terminate this Agreement at his sole discretion. Upon any termination pursuant
to this Section 4.4, the Executive shall be entitled to be paid his Base Salary and the benefit referred to hereinbefore owing
through to the date of termination and the Company shall have no further liability hereunder thereafter (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination and as to the vesting of Options pursuant to Section
2.3(d)), unless the Executive and the Company agree to a different arrangement.

4.5 Termination Without Cause. At any time the Company shall have
the right to terminate Executive's employment hereunder by written notice to Executive; provided, however, that the Company shall:

 

(a)               
pay to Executive any all unpaid Base Salary and all benefits referred to in Clauses 2 hereof
and allow the Executive to enjoy all the benefits given hereunder for the period remaining period of this Employment Agreement
and will further allow to receive all pro-rata bonus, incentive and option shares that would be payable had Executive completed
a full term of employment; 

 

(b)              
pay to the Executive in a lump sum, in cash within 30 days after the date of employment termination,
an amount equal to the greater of (i) 100% of his annual Base Salary then in effect, or (ii) the balance of the Executive’s
Base Salary from the effective date of termination through the expiration of the Initial Term or Renewal Term then in effect; and

 

(c)               
continue to pay the Executive’s health and disability insurance, and all other benefits
referred to in clause 3 hereof for the longer of a period of twelve (12) months or the remaining term of this Agreement, whichever
is longer.

 

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(d)              
The Company shall be deemed to have terminated the Executive's employment pursuant to this
Section 4.5 if such employment is terminated by the Company without Cause, by the Executive voluntarily for Good Reason, or as
a result of a Charge in Control. 

 

(i)                
For purposes of this Agreement, "Good Reason" means:

 

1)                 
the assignment to the Executive of any duties inconsistent in any respect with the Executive's
position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated
by Section 1.2 of this Agreement, or any other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

2)                 
any failure by the Company to comply with any of the provisions of Section 2 or Section 3
of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied
by the Company promptly after receipt of notice thereof given by the Executive;

 

3)                 
the Company's requiring the Executive to be based at any office or location more than fifty
(50) miles from its current executive offices, except for travel reasonably required in the performance of the Executive's responsibilities;

 

4)                 
any change in the designation of the particular executive that the Executive is obligated
to report to under Section 1.2 hereof;

 

5)                 
any purported termination by the Company of the Executive's employment otherwise than as expressly
permitted by this Agreement; or

 

6)                 
any termination by the Executive for any reason during the three-month period following the
effective date of any Change in Control.

 

(ii)              
For purposes of this Agreement, a “Change in Control” shall mean:

 

1)                 
The acquisition (other than by or from the Company), at any time after the date hereof, by
any person, entity or “group,” within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 50% or more of either the then outstanding shares of common stock or the combined voting power of the Company's
then outstanding voting securities entitled to vote generally in the election of directors; 

 

    	4

    	 

    
 

 

2)                 
All or any of the individuals who, as of the date hereof, constitute the Board (as of the
date hereof the "Incumbent Board") cease for any reason to constitute at least a majority of the Board, provided that
any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's shareholders,
was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination
of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to
the election of the directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; 

 

3)                 
Approval by the shareholders of the Company of (A) a reorganization, merger or consolidation
with respect to which persons who were the shareholders of the Company immediately prior to such reorganization, merger or consolidation
do not, immediately thereafter, own more than 75% of the combined voting power entitled to vote generally in the election of directors
of the reorganized, merged or consolidated company's then outstanding voting securities, (B) a liquidation or dissolution of the
Company, or (C) the sale of all or substantially all of the assets of the Company, unless the approved reorganization, merger,
consolidation, liquidation, dissolution or sale is subsequently abandoned.

 

4)                 
The approval by the Board of the sale, distribution and/or other transfer or action (and/or
series of sales, distributions and/or other transfers or actions from time to time or over a period of time), that results in the
Company's ownership of less than 50% of the Company's current assets.

 

5.Restrictive Covenants.

5.1Nondisclosure. During his employment and for twelve (12)
months thereafter, Executive shall not divulge, communicate, use to the detriment of the Company or for the benefit of any other
person or persons, or misuse in any way, any Confidential Information (as hereinafter defined) pertaining to the business of the
Company, unless required to do so by a governmental agency or court of law. Any Confidential Information or data now or hereafter
acquired by the Executive with respect to the business of the Company shall be deemed a valuable, special and unique asset of the
Company that is received by the Executive in confidence and as a fiduciary, and Executive shall remain a fiduciary to the Company
with respect to all of such information. For purposes of this Agreement, "Confidential Information" means all material
information about the Company's business disclosed to the Executive or known by the Executive as a consequence of or through his
employment by the Company (including information conceived, originated, discovered or developed by the Executive) after the date
hereof, and not generally known.

 

    	5

    	 

    
 

5.2Nonsolicitation of Employees. While employed by the Company
and for a period of twelve (12) months thereafter, Executive shall not directly or indirectly, for himself or for any other person,
firm, corporation, partnership, association or other entity, attempt to employ or enter into any contractual arrangement with any
employee or former employee of the Company, unless such employee or former employee has not been employed by the Company for a
period in excess of six months. Notwithstanding the foregoing, the Executive shall not be restricted
in hiring any person who responds to any general solicitation for employees or public advertising of employment opportunities (including
through the use of employment agencies) not specifically directed at any such person.

5.3Covenant Not to Compete. Executive will not, at any time,
during the Term of this Agreement, and for a period of twelve (12) months thereafter, either directly or indirectly, engage in,
with or for any enterprise, institution, whether or not for profit, business, or company, competitive with the business (as identified
herein) of the Company as such business may be conducted on the date thereof, as a creditor, guarantor, or financial backer, stockholder,
director, officer, consultant, advisor, employee, member, or otherwise of or through any corporation, partnership, association,
sole proprietorship or other entity; provided, that an investment by Executive, his spouse or his children is permitted if such
investment is not more than four percent (4%) of the total debt or equity capital of any such competitive enterprise or business.
As used in this Agreement, the business of Employer shall be deemed to include any business which directly competes with the Company
in the medical device industry. The covenant not to compete for twelve (12) months after termination shall only be effective if
the Executive has received all compensation due to him pursuant to this Agreement. The Company shall have the right in its sole
discretion to waive this non-compete provision.

 

5.4Injunction. It is recognized and hereby acknowledged
by the parties hereto that a breach by the Executive of any of the covenants contained in Sections 5.1, 5.2 or 5.3 of this
Agreement will cause irreparable harm and damage to the Company, the monetary amount of which may be virtually impossible to ascertain.
As a result, the Executive recognizes and hereby acknowledges that the Company shall be entitled to an injunction from any court
of competent jurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Section 5
by the Executive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right
to injunction shall be cumulative and in addition to whatever other remedies the Company may possess. 

6.Re-negotiate. This contract may be re-negotiated by
the Executive should the circumstances and the economic situation of the company shows improvement beyond the Company’s forecast.

7.Entire Agreement. This instrument contains the entire
agreement of the parties, and supersedes any prior or contemporaneous statements or understandings by or between the parties. This
Agreement may be changed only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification,
extension or discharge is sought.

8.Governing Law/Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of Nevada, excluding choice of law provisions. The parties hereby
irrevocably and unconditionally agree to submit any legal action or proceeding relating to this Agreement to the non-exclusive
general jurisdiction of the courts of the State of Nevada located in Las Vegas and the courts of the United States located in Nevada
and, in any such action or proceeding, consent to jurisdiction in such courts and waive any objection to the venue in any such
court. Executive agrees that service of process upon Executive in any such action or proceeding may be made by Canada Post or United
States mail, certified or registered, return receipt requested, postage prepaid. Unless otherwise agreed, the prevailing party
in any litigation relating to the interpretation or enforcement of this Agreement shall be entitled to reasonable costs and attorneys'
fees.

 

    	6

    	 

    
 

9.Notices: Any notice required or permitted to be given
under this Agreement shall be in writing and shall be deemed to have been given (a) when delivered by hand, (b) when deposited
in the United States mail, by registered or certified mail, return receipt requested, postage prepaid, or via overnight courier,
(c) one day after electronically mailed either in the text of an email message or attached in a commonly readable format, and the
sender has received no generated notice that the email message has not been successfully delivered, or (d) upon receipt of proof
of sending thereof when sent by facsimile, addressed as follows:

	If to the Company:	China Films Technology Inc.
	 	
        Yunmeng Economic and Technological Development Zone,

        Firsta Road, Yunmeng County, Hubei Province, China 432500.

	with a copy to:	
        Gersten Savage LLP

        600 Lexington Avenue

        New York, New York 10022

        Attention: Peter J. Gennuso, Esq.

        Fax: 212-980-5192

        Email: pgennuso@gskny.com

	 	 
	If to the Executive:	
        Yunmeng Economic and Technological Development Zone,

        Firsta Road, Yunmeng County, Hubei Province, China 432500.

        

        

         

 

or to such other addresses as either party hereto may from time to time give notice
of to the other in the aforesaid manner.

 

    	7

    	 

    
 

10.Successors.

(a)This Agreement is personal to the Executive and without
the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent
and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives.

(b)This Agreement shall inure to the benefit of and be binding
upon the Company and its successors and assigns.

(c)The Company will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the
Company as hereinbefore defined and any successor to its business and/or assets which assumes and agrees to perform this Agreement
by operation of law or otherwise.

11.Severability. The invalidity of any one or more of
the words, phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining
portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the
event that any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall be declared
invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or
clauses, or section or sections had not been inserted. If such invalidity is caused by length of time or size of area, or both,
the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.

12.Waivers. The waiver by either party hereto of a breach
or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach
or violation.

13.Damages. Nothing contained herein shall be construed
to prevent the Company or the Executive from seeking and recovering from the other damages sustained by either or both of them
as a result of its or his breach of any term or provision of this Agreement.

14.No Third Party Beneficiary. Nothing expressed or implied
in this Agreement is intended, or shall be construed, to confer upon or give any person (other than the parties hereto and, in
the case of Executive, his heirs, personal representative(s) and/or legal representative) any rights or remedies under or by reason
of this Agreement.

15.Full Settlement. The Company’s obligation to
make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or
others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of
the amounts payable to the Executive under any of the provisions of this Agreement. The Company agrees to pay, to the full extent
permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of any contest (regardless of
the outcome thereof) by the Company or others of the validity or enforceability of, or liability under, any provision of this Agreement
or any guarantee of performance thereof, plus in each case interest at the applicable Federal rate provided for in Section 7872(f)(2)
of the Internal Revenue Code of 1986, as amended.

 

    	8

    	 

    
 

16.Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

17.Executive’s Recognition of Agreement. Executive
acknowledges that Executive has read and understood this Agreement, and agrees that its terms are necessary for the reasonable
and proper protection of the Company’s business. Executive acknowledges that Executive has been advised by the Company that
Executive is entitled to have this Agreement reviewed by an attorney of Executive’s selection, at Executive’s expense,
prior to signing, and that Executive has either done so or elected to forgo that right.

[Remainder of page left intentionally blank.]

 

 

 

 

    9

     

    

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement
as of the date first above written.

 

	 	
        COMPANY: China Films Technology Inc.

         

        By:Zhang Zhian

          

        (sd.)

         

         

	 	 
	 	
        EXECUTIVE:

         

        Yang Yong Sheng 

         

        (sd.)

         

 

 

 

 

    	10

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