Labor Contract

Party A and Party B must carry social insurances as required by law and pay the social insurance premiums in accordance with stipulations of relevant policy. Party A shall be responsible for handling the payment of insurance premiums.

If Party B contracts an occupational disease or work-related injury or suffers an illness or non-work-related injury, the medical treatment, hospitalization, alimentary allowances, funeral expenses and pensions for his or her direct descents and the treatments after the medical care for Party B shall be granted and treated in accordance with relevant regulations of the State and local authorities.

Party B is entitled to enjoy legal official holidays and festivals. Should Party B be a female, Party A shall act in accordance with prescriptions concerning protection of female workers to maintain physical health of the female worker.

During the term of the contract, if Party B lives apart from his or her spouse, Party A shall grant Party B with home leaves of 15 day(s) one time per year provided that Party B has served for that whole year. If Party B live together with his or her spouse while his or her parents live in other place, Party B shall be granted with home leaves of 15 day(s) once every four years. Within home leave period, Party B shall be granted with monthly wage and various allowances and the traveling expenses shall be reimbursed according to relevant stipulations or undertaken by certain party concerned.

The work system for Party B shall be as arranged by Party A.

When standard labor time system is carried out, the daily working time for Party B as arranged by Party A shall be no more than eight (8) hours while the average weekly working time shall be no less than forty (40) hours. The work system with integrative computation of work hours or system of working at irregular time shall be submitted for approval to labor administration department prior to its application. Party A may extend working hours due to the requirements of its production (work) after consultation with the trade union and Party B, but the extended working hour for a day shall generally not exceed one (1) hour; if such extension is called for due to special reasons, the extended hours shall not exceed three (3) hours a day. However, the total extension in a month shall not exceed thirty-six (36) hours.

If the extension of working hours is arranged for Party B, no less than one hundred and fifty percent (150%) of normal wages shall be paid to Party B by Party A; if Party B is arranged to work in the non-business days and Party A fails to make arrangement for Party B to have deferred days off, no less than two hundred percent (200%) of normal wages shall be paid to Party B; if Party B is arranged to work in statutory holidays, no less than three hundred percent (300%) of normal wages shall be paid to Party B.

Party A shall pay wages to Party B in accordance with Party B’s present position and work post and the wages per year for Party B in the probation period shall be (US61,550)RMB480,000 Yuan. The wages per month after the probation period shall be(US61,550)RMB480,000 Yuan. If Party A has stopped work for more than fifteen (15) consecutive days, Party A shall give basic living allowance of N/A Yuan to Party B. The wages shall be distributed once a month by Party A and the payday shall be this 1^st day in every month. The minimum wage level shall be no less than the prescribed amount.

Party A may gradually improve Party B’s wage level in view of its business condition and Party B’s skill proficiency and work efficiency.

This labor contract may be terminated if mutually agreed by each of Party A and Party B upon consultation.

Under any of the following circumstances, Party A may terminate this contract:

During the probation period, Party B fails to meet the conditions of recruitment;

Party B seriously breaches labor discipline or rules and regulations of Party A;

Party B commits a serious dereliction of duty, or takes advantage of his or her position for personal ends, resulting in major harm to the Party A’s interests; or

Party B’s criminal liability is prosecuted according to law.

3.

Under any of the following circumstances, Party A may terminate this contract upon thirty (30) days’ prior written notice to Party B:

Party B contracts an illness or non-work-related injury, and after the completion of his or her medical treatment, Party B can not engage in its original work or in other work arranged by Party A;

The employee is incompetent and remains incompetent after undergoing training or after assignment to another post; or

Where performance of this labor contract becomes impossible due to the major changes in the objective circumstances upon which this contract was based at the time of its conclusion, and consultations between the parties hereto fail to produce agreement on amendment of this labor contract;

Under any of the circumstances, Party A may not terminate this labor contract in accordance with Article twenty-six and Article twenty-seven of Labor Law of the People’s Republic of China:

Party B has contracted an occupational illness or suffered a work-related injury and has been confirmed to have totally or partially lost the ability to work;

Party B is within the specified medical treatment period for an illness or non-work-related injury;

The female employee is within any of the pregnant, puerperal or breast-feeding period; or

Other circumstances provided for under laws or regulations.

Party B may terminate this labor contract upon thirty (30) days’ prior written notice to Party A.

Party B may terminate the labor contract upon notice to Party A at any time under any of the following circumstances:

Within the probation period;

Party A forces Party B to work by resorting to violence, intimidation or illegal restriction of personal freedom.

Party A fails to pay labor remuneration or to provide working conditions as agreed upon in the labor contract.

This contract shall terminate upon expiration of its term and may be renewed upon mutual agreement of Party A and Party B through consultation due to the requirements of its production (work). The contract with a flexible term shall immediately terminate when Party B reaches the statutory retirement age.

If Party B meets the conditions for enjoying living allowances after the labor contract is terminated, Party A shall grant such allowances to Party B in accordance with relevant stipulations.

Ben Wang