Document:

ENGAGEMENT
AGREEMENT FOR

CEO SERVICES OF LAUREN KRUEGER

 

This ENGAGEMENT AGREEMENT FOR CEO SERVICES
OF LAUREN KRUEGER (this “Agreement”) is made as of the 14th day of September, 2012 by and between Trinity Place
Holdings Inc., a Delaware corporation, with its principal place of business and its notice address for purposes hereunder located
at One Syms Way, Secaucus, New Jersey 07094 (the “Company”), and Esopus Creek Management LLC, a Delaware limited
liability company, with its principal place of business and its notice address for purposes hereunder located at 1330 Avenue of
the Americas, Suite 1800, New York, New York 10019 (“Esopus”).

 

RECITALS

 

WHEREAS, the Company desires to engage Esopus
so as to secure the services of Lauren Krueger (the “Executive”) as Chief Executive Officer of the Company;
and

 

WHEREAS, Esopus desires to supply and make
available the services of the Executive.

 

NOW, THEREFORE, in consideration of the foregoing
and the mutual promises and agreements hereinafter set forth, the Company and Esopus agree as follows:

 

ARTICLE I

ENGAGEMENT AND SERVICES

 

1.1          Engagement.
The Company hereby engages Esopus, and Esopus hereby agrees to supply and make available to the Company, the services of the Executive
to serve as Chief Executive Officer of the Company.

 

1.2          Duties.
Esopus shall ensure that the Executive (i) devotes sufficient professional time and attention to the duties required of her as
the Chief Executive Officer of the Company; (ii) uses her reasonable efforts to promote the interests of the Company; (iii) complies
with all applicable laws, rules and regulations and with all of the Company’s policies, rules and/or regulations generally
applicable to employees of the Company; and (iv) discharges her responsibilities in a diligent manner and in accordance with the
directives of the Company’s Board of Directors. Executive’s duties shall be those which are usual and customary for
a chief executive officer. The Executive shall be the highest executive officer and no other officer shall be of equal or greater
rank. The Executive shall report directly and solely to the Board of Directors, and all other officers and employees shall report
directly to the Executive and not to the Board of Directors. The Executive shall perform her duties principally in the New York
City metropolitan area, and she will be expected to perform her duties hereunder for approximately 48 weeks per each 52-week period.

 

ARTICLE II

TERM

 

2.1          Term.
The engagement of Esopus hereunder shall be for a period of one year ending on the first anniversary of the date hereof, unless
the engagement is terminated at an earlier date in accordance with ARTICLE IV (the “Term”). The Term may be
renewed or extended upon the written consent of both the Company and Esopus. Those obligations which by their terms survive the
expiration or termination of this Agreement (including, without limitation, the indemnification provisions set forth in ARTICLE
VI) shall not be extinguished by the expiration of the Term or the termination of this Agreement.

 

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ARTICLE III

COMPENSATION

 

3.1          Annual
Fee. As compensation for all services to be rendered pursuant to this Agreement, the Company hereby agrees to pay Esopus during
the Term an annual fee of $240,000 (the “Annual Fee”). The Annual Fee shall be payable in arrears in bi-weekly
installments.

 

3.2          Pro-ration
and Payment of Taxes. Esopus shall be paid as a fully independent contractor and shall be solely responsible for any employment
taxes, withholdings and deductions required by applicable law and regulations.

 

3.3          No
Benefits. The Executive shall not be entitled to receive any benefits (including, without limitation, health, life, accident,
disability, paid time off or fringe benefit arrangements) from the Company.

 

3.4          Expenses.
The Company shall pay or reimburse Esopus and the Executive for all reasonable, ordinary and necessary business expenses incurred
or paid by them during the Term in the performance of the services under this Agreement, upon the presentation of proper expense
statements or such other supporting documentation as the Company may reasonably require.

 

ARTICLE IV

TERMINATION OF ENGAGEMENT

 

4.1          General.
The engagement hereunder may be terminated by the Company during the Term as provided in this ARTICLE IV. Upon termination of the
engagement, the Term shall end and Esopus shall be paid the pro-rated portion of the Annual Fee accrued but unpaid to the date
of termination. The rights of Esopus to further compensation hereunder shall be determined in accordance with this ARTICLE IV.

 

4.2          Death
or Disability. The engagement hereunder shall terminate automatically as of the date of the Executive’s death, and the
Company may, at its option, exercised by notice to Esopus, terminate this engagement in the event of the Executive’s “disability”
(as hereinafter defined). In the event of termination for death or disability, the Company, subject to the provisions of Section
4.1, shall have no further obligations or liabilities to Esopus or the Executive hereunder. For purposes of this Agreement, the
term “disability” means any physical or mental illness, disability or incapacity which, in the good faith determination
of the Board, prevents the Executive from performing the essential functions of the Chief Executive Officer for a period of not
less than ninety consecutive days (or for shorter periods totaling not less than one hundred and twenty days).

 

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4.3          Cause.
The Company may, at its option, exercised by notice to Esopus, terminate this engagement for “cause” (as hereinafter
defined) when cause exists. In the event of termination for cause, the Company, subject to the provisions of Section 4.1, shall
have no further obligations or liabilities to Esopus or the Executive hereunder. For purposes of this Agreement, the term “cause”
means (i) any felony criminal conviction of Esopus or the Executive ; (ii) any willful failure of Esopus or the Executive to substantially
perform their duties (other than as a result of the Executive’s disability) which failure continues after a written demand
for performance is delivered to Esopus and the Executive by the Board of Directors, which demand specifically identifies the alleged
failure to perform; or (iii) a willful act of fraud or dishonesty by the Executive in the performance of her duties that has an
impact on the financial reporting of the Company.

 

4.4          Other
Than For Cause. The Company may, at any time, at its option, terminate this engagement other than for cause, death or disability,
in which event the Company shall continue to pay the Annual Fee through the remainder of the Term, in the manner specified in Section
3.1. Esopus or the Executive may, at their option, upon at least 30 days’ prior written notice to the Company, terminate
this engagement, in which case Esopus shall forfeit the pro rata portion of the Annual Fee through the remainder of the Term (without
prejudice to any claims that Esopus or the Executive may have against the Company).

 

4.5          Severance
Covenant. In the event that the Company elects to terminate this engagement other than for cause, death or disability, and
the Board of Directors determines in good faith that the payment of the Annual Fee through the remainder of the Term as required
by Section 4.4 would create a material cash liquidity issue that would be detrimental to the Company’s financial health,
then Esopus and the Company hereby agree to engage in good faith negotiations to consider the payment of the remaining Annual Fee
on a deferred basis or in the form of Company equity.

 

ARTICLE V

CONFIDENTIAL INFORMATION

 

5.1          Confidential
Information. Esopus agrees to keep secret and retain in the strictest confidence all confidential matters which relate to the
Company or any of its affiliates learned by Esopus or the Executive in the course of providing services hereunder (except for disclosures
that are approved by the Board of Directors or that are made in the ordinary course of the Company’s business). Upon request
by the Company at any time (including, without limitation, at or following the expiration or termination of the Term), Esopus agrees
to deliver promptly to the Company all memoranda, notes, records, reports, manuals, drawings, designs, computer files in any media
and other documents (and all copies) relating to the business of the Company or any of its affiliates which Esopus or the Executive
have under their control.

 

5.2          Enforcement.
If Esopus commits a material breach of any of the provisions of Section 5.1, Esopus shall forfeit all rights to receive any amounts
of any nature whatsoever from the Company under this Agreement or otherwise and the Company will be entitled to any or all of the
following remedies: (i) damages from Esopus; (ii) to seek injunctive or other equitable relief to restrain any breach or threatened
breach or otherwise to specifically enforce the provisions of Section 5.1, it being agreed that money damages alone would be inadequate
to compensate the Company and would be an inadequate remedy for such breach; and (iii) any other rights and remedies the Company
may have pursuant to applicable laws.

 

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ARTICLE VI

INDEMNIFICATION

 

6.1          Indemnification
Generally. The Company shall indemnify and hold harmless, to the fullest extent permitted by Delaware law as it presently exists
or may hereafter be amended, Esopus and the Executive (each, a “Covered Person”), to the extent either of them
is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal,
administrative or investigative (a “Proceeding”), by reason of the fact that a Covered Person has entered into
this Agreement or that a Covered Person is or was providing services as the Chief Executive Officer of the Company (including,
without limitation, to the extent that a Covered Person is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation or of a partnership, joint venture, trust, enterprise, nonprofit entity or other entity,
including service with respect to employee benefit plans), against all liability and loss suffered and expenses (including attorneys’
fees) reasonably incurred by such Covered Person. Notwithstanding the preceding sentence, except as otherwise provided in Section
6.3 with respect to an action brought by a Covered Person to recover an unpaid indemnification or advancement claim to which such
Covered Person is entitled, the Company shall be required to indemnify a Covered Person in connection with a Proceeding (or part
thereof) commenced by such Covered Person only if the commencement of such Proceeding (or part thereof) by the Covered Person was
authorized in the specific case by the Company’s Board of Directors.

 

6.2          Advancement
of Expenses. The Company shall to the fullest extent not prohibited by Delaware law pay the expenses (including attorneys’
fees) incurred by a Covered Person in defending any Proceeding in advance of its final disposition; provided, however, that, to
the extent required by law, such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon
receipt of an undertaking by the Covered Person to repay all amounts advanced if it should be ultimately determined that the Covered
Person is not entitled to be indemnified hereunder.

 

6.3          Unpaid
Claims. If a claim for indemnification under this ARTICLE VI (following the final disposition of such Proceeding) is not paid
in full within sixty days after the Company has received a claim therefor by the Covered Person, or if a claim for any advancement
of expenses under this ARTICLE VI is not paid in full within thirty days after the Company has received a statement or statements
requesting such amounts to be advanced, the Covered Person shall thereupon (but not before) be entitled to file suit to recover
the unpaid amount of such claim. If successful in whole or in part, the Covered Person shall be entitled to be paid the expense
of prosecuting such claim to the fullest extent permitted by law. In any such action, the Company shall have the burden of proving
that the Covered Person is not entitled to the requested indemnification or advancement of expenses under applicable law.

 

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ARTICLE VII

MISCELLANEOUS

 

7.1          Voluntary
Nature. Esopus represents, warrants and acknowledges that it is voluntarily agreeing to the provision of services pursuant
to this Agreement and that the Executive has agreed to provide such services. Esopus has been urged to, and hereby represents,
warrants and acknowledges that it has had the opportunity to, obtain the advice of its own attorney prior to executing and delivering
this Agreement.

 

7.2          Notice.
Any notice required or permitted to be given under this Agreement shall be sufficient if it is in writing and is delivered in person
or sent by overnight courier to (i) Esopus and the Executive, at the address specified in the introduction for Esopus, or (ii)
the Chief Financial Officer of the Company, at the Company’s notice address specified in the introduction in the case of
the Company. Notice shall be deemed effective upon receipt if made by personal delivery or upon deposit if sent by overnight courier.

 

7.3          Non-Assignability.
Neither of the parties hereto shall have the right to assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other party.

 

7.4          Applicable
Law. Except for the indemnification provisions set forth in ARTICLE VI, which shall be governed by Delaware law without giving
effect to the conflict of law rules thereof, this Agreement and the relationship of the parties in connection with the subject
matter of this Agreement shall be construed and enforced according to the laws of the State of New York without giving effect to
the conflict of law rules thereof.

 

7.5          Effect
of Prior Agreements. This Agreement contains the full and complete agreement of the parties relating to the engagement of Esopus
and the Executive’s service as Chief Executive Officer, and supersedes all prior agreements, arrangements or understandings,
whether written or oral, relating thereto with the Company or any of its affiliates. This Agreement may not be amended, modified
or supplemented and no provision or requirement may be waived except by written instrument signed by the party to be charged.

 

7.6          Severability.
Wherever possible, each provision of this Agreement will be interpreted in a manner to be effective and valid, but if any provision
is held invalid or unenforceable by any court of competent jurisdiction, then such provision will be ineffective only to the extent
of such invalidity or unenforceability, without invalidating or affecting in any manner the remainder of such provision or the
other provisions of this Agreement.

 

7.7          Absence
of Waiver. The failure to enforce at any time any of the provisions of this Agreement or to require at any time performance
by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect
either the validity of this Agreement or any part hereof or the right of either party thereafter to enforce each and every provision
in accordance with the terms of this Agreement.

 

7.8          Arbitration.
Any dispute, disagreement or other question arising under this Agreement or the interpretation thereof shall be settled by final
and binding arbitration before a single JAMS arbitrator under the Streamlined Arbitration Rules & Procedures of JAMS, then
in effect, and judgment upon the award may be entered in any court having jurisdiction thereof.

 

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7.9          Third
Party Beneficiaries. The Executive is an express third party beneficiary of this Agreement and entitled to enforce directly
the obligations of the Company to Esopus and/or the Executive, including without limitation the indemnification provisions set
forth in ARTICLE VI. Otherwise, this Agreement is not intended to confer any benefits upon anyone other than the parties hereto.

 

7.10          Counterparts.
This Agreement may be executed by facsimile and in counterparts, each of which shall constitute one and the same instrument.          

 

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IN WITNESS WHEREOF, the parties have executed
and delivered this agreement as of the date first above written.

 

	 	TRINITY PLACE HOLDINGS INC.	 
	 	 	 
	 	 	 	 
	 	By:	/s/ Gary Binkoski	 
	 	Name:	Gary Binkoski	 
	 	Title:	Chief Financial Officer	 
	 	 	 	 
	 	 	 	 
	 	ESOPUS CREEK MANAGEMENT LLC	 
	 	 	 
	 	 	 	 
	 	By:	/s/ Andrew L. Sole	 
	 	Name:	Andrew L. Sole	 
	 	Title:	Managing Member	 

  

ACKNOWLEDGMENT

 

The undersigned, Lauren Krueger, hereby consents
to the terms and conditions of, and agrees to perform all of the services required of the Executive under, the Agreement. The undersigned
further agrees to look solely to Esopus and not to the Company for all compensation and benefits to which she may be entitled for
performing services under the Agreement, subject to Section 7.9 of the Agreement.

 

	 	By:	/s/ Lauren Krueger	 
	 	 	LAUREN KRUEGER	 

 

    	7Xi'an Baorun Industrial Development Co.,
Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labor Contract

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Party A:  Xi'an Baorun Industrial Development
Co., Ltd.

 

 

 Party B:   LI Gaihong

 

 

 

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Table of Contents

  

 

	1.	Definitions	3
	2.	Term, Probation Period and Effective Date of the Labor Contract	3
	3.	Scope and Location of Work	4
	4.	Labor Protection, Condition and Occupational Hazard Protection	5
	5.	Time of Work, Time-off and Vacation	6
	6.	Compensation	7
	7.	Benefits	8
	8.	Confidentiality and Restriction of Competition	9
	9.	Performance, Revision and Renewal of the Labor Contract	12
	10.	Dissolution and Termination of This Labor Contract	13
	11.	Labor Dispute Resolution	17
	12.	Governing Law	17
	13.	Other Provisions	17

 

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This Labor Contract ("Labor Contract")
is entered into on September 30, 2012 in Xi'an, People's Republic of China ("PRC") between the following two parties:

 

Party A:  Xi'an Baorun Industrial Development Co., Ltd.

 

Type:      Limited liability company

 

Legal Representative: GAO Xincheng

 

Address:  Western International Plaza, 10th Floor,
2 Gaoxin Road, Xi'an

 

 

Party B   LI
Gaihong

 

Gender:        Female

 

Date of Birth:June 7, 1977

 

ID Card No.:(610528197706072022)

 

Address:       3-43 of 27th
Building, No. 16 Block, Wanshou Road, Xincheng District, Xi’an, Shaanxi, China

 

 

 

 

Pursuant to “People’s Republic
of China Labor Law” and “People’s Republic of China Contract Law” (together “Labor and Contract Law”),
and to other relevant laws, statutes, policies and regulations as well local labor statutes in Xi’an (together, the “PRC
Law”), Party A and Party B, on the basis of voluntariness and consensus, have entered into the agreement as follows.

 

		1.	Definitions

 

Unless otherwise stipulated, the following terms as used herein
shall have the definition below:

 

"Management Officer" means management officer, appointed
by the general manager, responsible for supervising Party B's work performance.

 

"Senior Management Officer" means general manager,
vice general manager and other division managers appointed by Party A.

 

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		2.	Term, Probation Period and Effective Date of the Labor
Contract

  

		2.1	Contract Type and Term

 

		(a)	This Labor Contract is fixed-term Labor Contract:
the term is one year, starting on September 30, 2012 and ending on September 29, 2013.

 

		(b)	This Labor Contract expires on the ending date stated
above, unless it is renewed or dissolved in accordance with the provisions of Section 9 or Section 10 herein.

 

		2.2	Effective Date

 

This Labor Contract becomes effective on
the day it is executed by Party A and by Party B with their respective signatures and/or seals. If the effective date is different
from the actual date of Party A's engagement of Party B for service, the labor relationship is deemed established on the date of
Party A's engagement of Party B.

 

 

		3.	Scope and Location of Work

 

		3.1	Scope of Work

 

		(a)	Party A engages Party B as Chief Financial Officer,
whose major responsibilities include:

 

		1)	Being overall responsible for the company's monthly,
quarterly and annual reports, for conforming such reports prepared in compliance with Chinese accounting principles to public
financial reports in compliance with US accounting principles;

 

		2)	Assisting the external auditor to ensure the timely issuance
of quarterly and annual reports by the auditor that comply with US accounting principles;

 

		3)	Assisting intermediaries (including legal and auditing
firms) in the timely filing of quarterly and annual reports with SEC;

 

		4)	Being overall responsible for the company's internal
audits to ensure that the company is in compliance with SOX 404 requirements;

 

		5)	Being overall responsible for the company's promotional work in the capital markets to ensure
                                                                              the implementation of financing plans;

 

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		6)	Being overall responsible for communications with investors,
analysts and other relevant parties in the capital markets;

 

		7)	Being overall responsible for the formation and training
of a capital market team and experts;

 

		8)	Being overall responsible for maintaining relationships
with other partners in the capital markets and daily communications;

 

		9)	Being overall responsible for other matters as directed
by the management.

 

		(b)	Party B must follow Party A's reasonable instructions
to perform her duties and ensure the completion of work on time at the quality levels specified by Party A.

 

		3.2	Location of Work

 

Party B's location of work is Xi'an. However,
Party B understands the need of business and the necessity for occasional travel to other areas for business, and Party B agrees
and is willing to follow Party A's arrangement.

 

		3.3	Adjustment of Location of Work

 

		(a)	Upon completion of the probation period, Party A may
adjust Party B's position and nature of work, based on actual situation, if Party B fails to perform up to the standard or is
incompetent, with one month allowed for Party B to make improvements; Party B must improve her performance within this one month
period.

 

		(b)	If Party B still proves incompetent after the expiration
of the one-month period mentioned above, Party B shall have the right to dissolve this Labor Contract in accordance with Section
10.3(a)(ii) herein.

 

		(c)	Party B must perform appropriate transition work (including
the handover of office equipment and documents), if Party B's position of work has any changes, to ensure the continuity of work.

 

		4.	Labor Protection, Condition and Occupational Hazard Protection

 

		4.1	Party A's Obligations

 

Party A shall have the following obligations:

 

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		(a)	Provide to Party B working environment and conditions
that are in compliance with the State's relevant regulations and necessary labor protection equipment based on the nature of Party
B's work;

 

		(b)	Adopt proactive protective measures in accordance
with the State regulations to protect Party B's occupational safety and health;

 

		(c)	Provide training to Party B on professional ethics,
business skills, labor safety and hygiene, occupational hazard prevention and relevant policies and procedures (Party B must agree
to accept such training); and

 

		(d)	Implement operation procedure and establish sound
working environment policies and implementation standards.

 

		4.2	Party B's Rights

 

Party B shall have the following rights:

 

		(a)	Work in conditions that are in compliance with the
State mandatory safety and hygiene standards;

 

		(b)	Refuse to engage in any work or tasks assigned by
Party A which are in violation of the PRC Law or such work or tasks that harm Party B's health and safety;

 

		(c)	Make improvement suggestions regarding the working
environment, working condition and occupational hazard prevention; and

 

		(d)	Refuse to accept Party A's direction for coerced hazardous
work.

 

		5.	Time of Work, Time-off and Vacation

 

		5.1	Time of Work

 

		(a)	Party B must follow the following work schedule:

 

Standard work schedule: 8 hours (excluding commuting
time, break time and meal time) a day for a total of 40 hours per week, with the actual work hours to be determined in accordance
with Party A's policies.

 

		(b)	Party A may adjust Party B's work hours based on business
need, provided that such adjustment will not violate the PRC Law;

 

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		5.2	Time-off and Vacation

 

		(a)	Party B is entitled to statutory holidays specified
by the PRC Law.

 

		(b)	In addition to entitled holidays, Party A will allow
Party B 20 days per year as benefit vacation days (i.e., paid vacation days).

 

		5.3	Other Holidays

 

Party B is entitled to wedding holidays,
bereavement days, personal days, family visit days and sick days provided in Party A's Employee Handbook.

 

		6.	Compensation

  

		6.1	Salary

 

Party B's pre-tax salary is RMB 65,000 per
month.

 

		6.2	Payment Method and Time

 

		(a)	Party A adopts monthly salary system, with the 10th
of each month as payment date. Party A must pay Party B's salary in the statutory currency in China.

 

		(b)	Party B must open an account with one of the two banks
designated by Party A, and Party A must deposit Party B's salary into the said account after withholding personal income taxes
on Party B's behalf.

 

		(c)	Upon dissolution or termination of this Labor Contract,
Party A must pay Party B's salary on the day of Party B's leaving her post in the amount based on the actual number of days worked.

 

		6.3	Vacation Pay

 

During the period of Party B's statutory
holidays, family visit days, paid vacation days (if applicable), wedding days, bereavement days and sick days, Party A must pay
Party B's salary in accordance with the PRC Law, except that Party A is not obligated to pay salary when the traveling days (applicable
in cases of wedding days, bereavement days and family visit days) fall into a weekend.

 

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		6.4	Statutory Salary Withholding

 

Party B understands that Party A has the
right to make withholdings from Party B's salary, without breaching the contract, in the following statutory situations:

 

		(a)	Party A withholds Party B personal income tax and
pays such tax on her behalf;

 

		(b)	Party A withholds child support payment and alimony
pursuant to a court order;

 

		(c)	Party A withholds other fees from Party B's salary
pursuant to legal and statutory regulations;

 

		(d)	Party A pays a reduced salary due to Party B's personal
days or absence from work; or

 

		(e)	Party A pays a reduced salary due to Party B's inability
to provide normal work because of her sick leave.

 

		6.5	Salary Adjustment

 

Party A shall have the right to decide whether
to increase Party B's base salary for the next year based on Party B's performance.

 

		6.6	Annual Bonus

 

Upon completion of one year's service and
if the labor relationship still exists on the last day of the said year, Party A will pay to Party B an annual bonus not less than
3-month's salary (after tax), and Party B may receive such bonus at the same time of receiving the 12th month’s
salary for the current year..

 

 

		7.	Benefits

 

		7.1	Benefits

 

		(a)	The medical expenses incurred by Party B from work-related
sickness or injury treatment will be reimbursed by Party A for the actual amount incurred as evidenced by invoices; her medical
expenses incurred from sick leave will be handled in accordance with the PRC Law and Party A's relevant policies. Party B's salary
and medical insurance during the period of occupational disease or work-related injury leave will be also handled in accordance
with the relevant PRC Law.

 

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		7.2	Other Benefits

 

		(a)	During the effective period of this Labor Contract,
Party A will provide to Party B a vehicle as means of transportation and assume the fees and expenses related to the vehicle.

		(b)	During the effective period of this Labor Contract,
Party A will assume all the traveling and lodging expenses incurred from Party B's participation in road shows and business meetings
(including but not limited to financing road show, non-financing road show, investors meetings and other meetings approved by
the company) and other expenses related to her work.

 

		8.	Confidentiality and Restriction of Competition

 

		8.1	Confidentiality Obligation

 

		(a)	During the effective period of this Labor Contract
and upon its dissolution or termination, Party B must abide by the confidentiality policy prepared by Party A:

 

		(i)	Prior to obtaining Party A's written consent, Party
B shall not:

		·	Use any commercial secrets (see definition in Section 8.2 below) in any situation not related to work;

		·	Reveal to any third party (including Party A's other employees who, pursuant to Party A's confidentiality policy, should not
have access to such secrets) in any form such commercial secrets;

		·	Use, or allow the use of by a third party, such secrets obtained through inappropriate means;

		·	Use storage devices other than those owned by Party A to save such secrets with the end to use, or allow the use by a third
party of, such secrets.

 

		(ii)	Party B has the obligation to make all efforts to prevent
the access by a third party to such secrets.

 

		(b)	For the purpose of this Labor Contract, the "inappropriate
means" mentioned above includes theft, fraud, coercion, bribery, unauthorized reproduction, violation of confidentiality
obligation, luring others to violate confidentiality obligation in order to obtain such secrets.

 

		(c)	If Party B causes any loss to Party A as a result
of her violation of the provisions in 8.1(a) above, Party A shall have the right to dissolve this Labor Contract immediately,
and Party B shall compensate Party A for any loss according to the law.

 

		(d)	Party B must abide by Party A's confidentiality policy
prepared, and updated from time to time, by Party A.

 

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		8.2	Definition

 

		(a)	For the purpose of this Labor Contract, "commercial
secrets" means any technological and operational information possessed by Party A which is not known to the public, can bring
economic benefits to Party A and has practical application and for which Party A has taken reasonable protection measures, including
but not limited to any of the following:

 

		(i)	Party A's company documents and files, including but
not limited to all contracts/agreements, letters of intent (whether in written format or not), personnel files, administrative
documents, R&A records, technical reports, testing results, experiment data, examination result, technical documentation,
relevant communications and other information regarding Party A's investors, customers and suppliers;

 

		(ii)	Any information related to Party A's business activities
and development, such as cost, development plan (including this contract and future plans), market research information, promotion
plans and strategies (including pricing strategies), marketing plans and strategies, materials purchased, supplier channels, sales
agents, distribution channels, sales models, pricing forms, customer lists and other relevant material;

 

		(iii)	Any information regarding Party A's financial situation,
such as assets, liabilities, accounts receivables, operation situation and investment situation;

 

		(iv)	Any information regarding Party A's management method;

 

		(v)	Any calculation method, procedures or technology developed
by Party A and the related material about such method, procedures or technology;

 

		(vi)	Any information regarding the improvement of computer
hardware and software, including but not limited to any method for the improvement of computer hardware and software and the related
diagrams and flowcharts, testing results, operation manuals, reports and record material and software codes;

 

		(vii)	Any information regarding proprietary technology, including
but not limited to intellectual property that has not been disclosed, registered or patented (see definition below), technical
method for protecting such IP, technical procedures, analysis data, formula, process procedures, quality control and management
method and other related material;

 

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		(viii)	Any technological plan, engineering design, electrical
designs, production method, formula, technical specifications, diagrams, samples and modes and operation manuals possessed by
Party A;

 

		(ix)	Any information regarding on Party A's human resources
and the compensation for Party A's employees.

 

		(b)	For the purpose of this Labor Contract, the "technological
and operational information...which is not known to the public, which can bring economic benefits to Party A and has practical
application" mentioned in Section 8.2(a) above includes technological information and operation information which has actual
or potential commercial value and can give Party A a competitive advantage.

 

		(c)	Party B understands and agrees that information possessed
by Party A's parent, group company and affiliates or subsidiaries, which Party B may access from time to time because of business
need or the requirement of Party B's position, is also secret commercial information.

 

Party B further understands and agrees that,
to the extent that Party A has informed Party B in writing of the scope of such information and of the measures adopted for its
protection, all information that is classified as secret information in the possession of Party A’s parent, group companies,
affiliates and subsidiaries, which Party B may have accessed, shall constitute "commercial secrets" defined herein and
shall be included in the scope of Party B's confidentiality obligation.

 

		8.3	Obligation to Seek Guidance

 

		(a)	If Party B has any doubt as to the nature and extent
of confidentiality of any information, Party B has the obligation to seek written confirmation from Party A's senior management
officers; if Party B receives any information the confidentiality of which is not clear, Party B must treat such as "commercial
secrets" unless Party B receives confirmation in writing from such senior management officers that such information is not
secret or proprietary.

 

		(b)	If Party B's unauthorized disclosure of commercial
secrets causes losses to Party A, Party B shall bear the responsibility to compensate Party A for all such losses and to bear
liabilities in accordance with the PRC Law.

 

		8.4	Return of Party A's Properties

 

			(a) If this Labor Contract is terminated or dissolved for any reason, Party B must immediately return to Party A all documents
(including copies thereof) or items obtained from Party A during her term of employment to Party A in sound conditions, such as
files, records, commercial secrets, equipment and other properties. Without written consent from Party A, Party B shall not take
any of the above properties from Party A's office locations. If Party A’s commercial secrets are stored in storage devices
that belong to Party B, Party B must destroy or permanently delete such commercial secrets from the said storage devices under
Party A's supervision.

 

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		(b)	If Party B's failure to return any of the above mentioned
properties causes any loss to Party A, Party B must bear responsibility to compensate Party A for such loss. Under such circumstances,
Party A may withhold the corresponding amount from any amount payable to Party B and has the right to take appropriate measure
to protect its legitimate interests.

 

		8.5	Restriction of Competition

 

If Party A requires Party B to assume non-compete
obligation, Party A and Party B will enter into a separate "Non-Compete Agreement," which is to be attached hereto as
Appendix 1. Such agreement shall have the same legal effect as this Labor Contract; should there be any conflict between the two
documents, the Non-Compete Agreement shall prevail with respect to the performance of the non-compete obligation.

 

		8.6	Prohibition of Solicitation

 

Party B agrees that, during the term of
her engagement by Party A and within 2 years after leaving such engagement, Party B shall not solicit or induce or influence any
of Party A's employees for other employment and shall not solicit any business from any of Party A's customers or suppliers.

 

		9.	Performance, Revision and Renewal of the Labor Contract

 

		9.1	Performance of This Labor Contract

 

Party A and Party B must perform their respective
obligations in full pursuant to the provisions herein.

 

		9.2	Revision of This Labor Contract

 

		(a)	Upon any of the following, this Labor Contract may
be revised:

 

		(i)	Mutual agreement between Party A and Party B; or

 

		(ii)	Any changes in the relevant law, statutes and regulation
on which this Labor Contract is based; under such circumstances corresponding adjustments to the relevant contents herein will
be made.

 

		(b)	If any party hereto needs to revise any provision herein for any reason, it must notify the
                                                                                   other party and the other party must respond within 15 days upon receiving such notification; failure to respond within the
                                                                                   specified time shall be considered disapproval  of the revision; the parties hereto must continue to perform this Labor
                                                                                   Contract, except where there are laws and statutes stipulating otherwise.

 

		(c)	Any revision of this Labor Contract will not be effective
unless there is a written agreement signed by both parties. Party A and Party B will each keep a copy of such revised Labor Contract.

 

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		9.3	Renewal of This Labor Contract

 

		(a)	If any party hereto desires to renew this Labor Contract,
it must issue notification for renewal to the other party in writing at least 30 days in advance. This Labor Contract may be renewed
upon mutual agreement between the two parties.

 

		(b)	The renewal of any non-fixed term contract will be
handled in accordance with the relevant provisions of the PRC Law.

 

		10.	Dissolution and Termination of This Labor Contract

  

		10.1	Dissolution through Consultation

 

This Labor Contract may be dissolved upon
mutual consent through consultation.

 

		10.2	Immediate Dissolution

 

		(a)	Upon any of the following on the part of Party B,
Party A shall have the right to dissolve this Labor Contract immediately:

 

		(i)	Party B fails to meet the employment requirements during
the probation period;

 

		(ii)	Party B grossly violates Party A's policies and regulations;

 

		(iii)	Party B commits serious negligence or fraud, causing
material harm to Party A's interests;

 

		(iv)	Party B has established other employment relationship
with other employers, thus affecting the completing of work and tasks assigned by Party A, and refuses to correct such situation
upon Party A's demand;

 

		(v)	Party B has used means of fraud or coercion to cause
Party A to execute or revise this Labor Contract contrary to Party A's intent, thus causing this Labor Contract to become invalid;
or

 

		(vi)	Party B is pursued for criminal liabilities in accordance
with the law;

 

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		(b)	Upon any of the following on the part of Party A,
Party B shall have the right to dissolve this Labor Contract immediately:

 

		(i)	Party A fails to provide labor protection and working
condition in accordance with the provisions herein;

 

		(ii)	Party A fails to pay compensation on time or in full;

 

		(iii)	Party A's policies and regulations harm Party B's rights
and interests in violation of the law;

 

		(iv)	Party A has used means of fraud or coercion to cause
Party B to execute or revise this Labor Contract contrary to Party B's intent, thus causing this Labor Contract to become invalid;

 

		(v)	Party A absolves its own legal responsibilities and
excludes Party B's rights and interests, thus causing this Labor Contract to become invalid;

 

		(vi)	Party A violates laws and statutes, thus causing this
Labor Contract to become invalid; or

 

		(vii)	Other situations upon which the Labor Contract may
be dissolved in accordance with the provisions of relevant law and statutes.

 

		(c)	If Party A uses force, threat or other means of restricting
personal freedom to coerce Party B to perform work, or Party A issues directions or orders in violation of regulations to force
Party B to engage in dangerous operation, Party B may dissolve this Labor Contract immediately without the need to notify Party
A in advance.

 

		10.3	Advance Notice for Dissolution

 

		(a)	Upon any of the following, Party A may dissolve this
Labor Contract after issuing a 30-day advance notice (or paying Party B's six-month's salary):

 

		(i)	Party B becomes sick or injured because of work, and
after medical treatment, is still unable to perform her original responsibilities nor perform other work arranged by Party A;

 

		(ii)	Party B is incompetent and, after receiving training
or adjustment to her position, is still unable to perform her work;

 

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		(iii)	Any changes in the relevant law, statutes and regulation
on which this Labor Contract is based, causing this Labor Contract to be unable to be performed and the two parties fail to reach
agreement regarding the revision of this Labor Contract.

 

		(b)	If Party A needs to lay off more than 20 employees
or, if less than 20, such number accounts for 10% of the total number of Party A's employees, Party A must explain the situation
to the labor union or all employees 30 days in advance and seek their views; the employee reduction plan must be filed with labor
administration authorities before any employee can be laid off.

 

		10.4	Provision Regarding Dissolution of This Labor Contract by Party A

 

Upon any of the following on the part of
Party B, Party A shall not dissolve this Labor Contract in accordance with the provision in Section 10.3 (except when both parties
reach agreement through consultation):

 

		(a)	Party B is sick or injured but is in the statutory
treatment period;

 

		(b)	Party B contracts occupational disease or is injured
because of work and has been determined to have lost all or part of her ability to work;

 

		(c)	Party B has worked continuously for 15 years with
Party A and is less than 5 years from the statutory retirement age;

 

		(d)	Other situations under which the Labor Contract cannot
be dissolved according to the provisions of law and administrative statutes.

 

If the occurrence of the above situations
coincides with the expiration of this Labor Contract, this Labor Contract must be extended until such time when the above situations
no longer exist. However, the termination of this Labor Contract due to the situation specified in Section 10.4(b) must be handled
in accordance with the State regulations regarding work injury insurance.

 

		10.5	Provision Regarding Dissolution of This Labor Contract by Party B

 

		(a)	If Party B desires to dissolve this Labor Contract,
Party B must notify Party A in writing at least 30 days in advance; if Party B desires to dissolve this Labor Contract during
the probation period, Party B must notify Party A in writing at least 3 days in advance; Party A must accept Party B’s resignation
but will not have any need to pay any economic compensation to Party B.

 

		(b)	If Party B fails to give 30-day advance notification
in writing to Party A for dissolution of this Labor Contract and such failure causes Party A to suffer any economic losses, Party
B must bear the responsibility for compensation in accordance with PRC Law and the provisions herein.

 

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		10.6	Termination of This Labor Contract

 

			Upon the occurrence of any of the following, this Labor Contract is terminated:

 

		(a)	The Labor Contract expires (except when it is renewed
or is extended pursuant to the PRC Law);

 

		(b)	Party B begins to receive statutory basic pension
and insurance benefits;

 

		(c)	Party B is deceased or is declared missing or dead
by the people’s court;

 

		(d)	Party A’s business license is revoked, or Party
A is ordered to cease operation, declares bankruptcy, is dissolved; or

 

		(e)	Other situations provided by relevant provisions of
the PRC Law under which this Labor Contract should be terminated.

 

		10.7	Handling of Dissolution or Termination

 

		(a)	When this Labor Contract is dissolved or terminated,
unless there are stipulations otherwise between the two parties, Party B must immediately:

 

		(i)	Suspend all activities conducted in the name of Party
A or complete uncompleted tasks at Party A’s request;

 

		(ii)	Hand over all work completely and thoroughly which
she has been performing in the name of Party A during her employment;

 

		(iii)	Return all properties such as documents and files,
commercial secrets, equipment and other items (including duplicates thereof), in sound conditions, obtained from Party A or under
her control while employed by Party A to Party A. Unless approved by Party A in writing, Party B shall not remove any such
property from Party A’s office location.

 

		(b)	If Party B fails to return any property mentioned
above, Party A shall have the right to make corresponding deductions from the amount payable to Party B and shall have the right
to take other measures to protect its interests.

 

		(c)	Party A must issue document evidencing the dissolution
or termination of this Labor Contract and process the transfer of Party B’s files within 15 days.

 

		10.8	Economic Compensation

 

If, during the term of this Labor Contract,
Party A requests the termination of this Labor Contract (except in the situation specified in Section 10.2(a) herein), Party A
must pay to Party B economic compensation in the amount equal to Party B’s 6-month’s pretax salary.

 

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		11.	Labor Dispute Resolution

  

		11.1	Voluntary Consultation

 

Any dispute arising from the performance
of this Labor Contract must be first resolved through consultation between the two parties.

 

		11.2	Mediation and Arbitration

 

		(a)	If voluntary consultation fails, either party may
submit the dispute to Party A’s mediation committee (if applicable).

 

		(b)	If mediation fails or either party is unwilling to
go to mediation, the both parties have the right to submit the dispute to the competent labor dispute arbitration commission for
arbitration within one year of the occurrence of such dispute; either of the two parties may also submit the dispute to the competent
labor dispute arbitration commission for arbitration directly without first resorting to mediation.

 

		11.3	Litigation

 

If either of the two parties does not accept
the result of the arbitration, it may submit the dispute to legal proceedings at the people’s court of competent jurisdiction.

 

		12.	Governing Law

  

This Labor Contract is governed by the law
of PRC and must be interpreted and performed accordingly.

 

		13.	Other Provisions

 

 

		13.1	The validity of any provision herein shall not affect
the validity of other provisions.

 

		13.2	Waiver of Non-Compliance

 

Party A specifically acknowledges that Party
A shall be responsible for all legal consequences resulting from any action that violates the current law and statutes that has
been already taken or in existence prior to the execution of this Labor Contract. Party B shall not be held responsible for any
legal consequences resulting from her failure to uncover or prevent such any action.

 

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		13.3	Reservation of Rights

 

The waiver of certain rights provided herein
by either party shall not constitute, and shall not be construed as, a waiver of that right in the future or of other rights
provided herein.

 

		13.4	Supplemental Provisions

 

Other matters specified between the two
parties, the renewal of this Labor Contract (if applicable) and/or the revision hereof must be in writing in an attachment hereto
and confirmed by signatures from both parties on the first page of the attachment before it can become effective.

 

		13.5	If any matter provided or provision herein is inconsistent
with the provisions of the PRC Law recently promulgated and currently in implementation, it must be handled in accordance with
provisions of the PRC Law recently promulgated and currently in implementation.

 

In witness whereof, the two parties execute
this Labor Contract on the date first indicated on the first page hereof.

 

 

 

Party A:  Xi'an Baorun Industrial Development Co., Ltd.

 

Legal Representative: /s/ GAO Xincheng

 

 

 

Party B:   /s/ LI Gaihong

 

September 22, 2012 in Xi’an

  

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