I Preparation before coming to China

The foreign experts shall complete the following two preparations before coming to China :

1 Mental preparation

The foreign experts shall complete mental preparations before leaving for China . You might
have visited some views and interests of one or more cities of China in a short period before,
but the communication with Chinese and the understanding of Chinese culture and custom are
far from deep. This time, however, you are supposed to live and work with Chinese culture for
one or more years in a country where the history, culture, tradition and social system are entirely different from those in your country.

2 Material Preparations

The foreign experts generally have thetravelling experience and are aware of what kind of
luggage and paraphernalia should be carried. Your host institution has prepared excellent living
and working conditions for you. As is known to all, China is still a developing country. Except
some big-size and middle-size cities are in preferable conditions, the conditions in remote areas
are much worse. However, in order to welcome the foreign experts, the host institutions have
tried their best to ensure a comfortable life and a convenient job environment. It is advised that
foreign experts be not hypercritical in material requirements.

What is important is that your goal is to work in China . You need to prepare relevant articles
such as portal personal computer, instruments, and teaching materials if the preparation is not
plenty, your work may be affected. In case you are not sure, you are advised to inquire your
host institution about what living and working articles should be carried with.

II The foreign expert should provide the following materials to the host institution when applying for a job:

• Personal Resume

• Degree Certificate (copy)

• Certificate of Teacher or relevant professional skill certificate

•Healthevidence (the foreign expert may downloadMedical Examination Record of Aliens
made by Ministry of Sanitation of China and do physical examination thereafter.)

Notice:

1) According to the stipulations of Chinese law, the validity period of Medical Examination
Record of Aliens is 6 months. Therefore, the foreign experts should pay attention to the time for medical examination and make sure the Medical Examination Record of Aliens is valid within
30 days desirable for handling of necessary formalities after entering China .

2) Every item in the Medical Examination Record of Aliens shall be filled without blanks.

III After the foreign expert and the host institution formed the employment
relationship, the uniform Standard Employment Contract made by the State
Administration of Foreign Experts Affairs shall be reached.

In case the employment is by way of self-recommendation or other introduction, to ensure
you are surely willing to take office in the institution, the host institution may require you to
rendercreditbail of $600-1000 (the amount can be negotiated) in advance according to the
stipulations of State Administration of Foreign Experts Affairs. After receiving the bail, the
host institution is ready to handle the formalities for you to enter China . After you take office
or before the contract expires, the host institution may provide you the out and home
international airplane ticket in advance, which shall be kept as thecreditbail and may be
reimbursed before the expiration of the contract.

IV According to the regulations of Chinese government,where the employment term
of foreign experts is more than 6 months, the host institution is obliged to send the
Confirmation Letter for Foreign Expert (original piece), which proves the identity of the
expert, to the expert himself. Only when the invitation letter and the Confirmation Letter for
Foreign Expert are possessed (none of them shall be absent) can the foreign expert apply to
the Chinese embassy or consulate in his country for visa for working in China (Z); where the
employment term is less than 6 months, visa for visiting China (F) can be applied by the
invitation letter presented by the engaging unit.

Note: foreign experts entering China for work must apply for the corresponding working or
visiting visa according to the employment term or invitation term, and not for thetraveling visa. Otherwise, you may get in great trouble. For according to the stipulations of Chinese law,
traveling visa is not convenient to be changed into working visa or visiting visa. The visa can
be changed only when outside the border (for example, you can switch to Hong Kong SAP
of China ) and after the host institution presents the working invitation letter for a second time,
the working visa can be granted for entry into China .

VAccording to stipulations of Chinese law,aliens who hold the working visa shall handle
the Residence for Aliens within 30 days after entry. If it exceeds the term, a fine of RMB500
per day will be imposed. We hope that the foreign experts settle down the residence permit
within specified term and such unhappy things do not happen.

The handling of Residence Permit for Aliens shall be based on:

*Valid passport (working visa)

*Foreign Expert Certificate

*Authentication Certificate issued by the sanitation

Note:

• Foreign experts shall pay attention to the residence term of their own Residence Permit for
Aliens. In case the term needs to be prolonged, procedures for prolonging the residence term
shall be promptly handled in local public security organ. Overtime will be subjected to fine
according to stipulations of Chinese law.

• According to stipulations of Chinese law, the aliens shall, when changing their residences,
settle down the domicile out-movingprocedures in the local public security organ in advance
and then handle the domicile in-movingprocedures in public security organ of the new domicile.

• According to the Chinese law, in the valid period of Residence Permit for Aliens, the aliens
shall settle down the re-entry procedures in the local public security organ in advance before
temporary exit. Otherwise, the frontier inspection organ may capture the Residence Permit for
Aliens and you have to request the host institution spend a lot of time to re-handle the entry
procedures when you seek another entry.

VI Chinese government specifies that all the foreign experts engagedfor work in China
shall settle down the Foreign Expert Certificate so as to differentiate from the Occupation
Certificate of Aliens acquired by the foreign employees from the department of labor. The
foreign experts who hold the working visa (Z) or visiting visa (F) may acquire the Foreign
Expert Certificate. The foreign experts shall return the Foreign Expert Certificate to the host
institution when leaving China . In case they want to keep the Foreign Expert Certificate as a
memorial, the host institution may consent, but the certificate shall be cancelled.

The handling of our Foreign Expert Certificate shall be passed on:

*Valid passport (working visa)

*Standard Employment Contract signed with the host institution or copy of agreement between governments or colleges; the contract of dispatch document of the teachers or managing
personnel of schools that specifically enroll children of foreigners; the staff of the standing body
of foreign organizations in China shall have the appointment or dispatch document issued by the organization.

Note:

• According to the stipulations of Chinese government, the valid term of Foreign Expert
Certificate is one year. If the foreign expert and the host institution jointly determine that the
term be prolonged, the procedures for prolonging the Foreign Expert Certificate shall be
handled in the certificate issuing authority in evidence of the new employment contract.
Afterwards, the procedures for prolonging the Residence Permit for Aliens shall be settled
down in the public security organ by the Foreign Expert Certificate.

• According to the stipulations of Chinese government, in case the foreign expert has finished
his work in one host institution and is employed by another institution, the former Foreign
Expert Certificate will become invalid and shall be returned to the former host institution.
The new host institution shall handle new certificate for the expert.

• According to the stipulations of the Chinese government, Foreign Expert Certificate
applies to the principle of territorial governing. Therefore, in case the foreign expert finished
his work in one city and is employed in another city, the former Foreign Expert Certificate
will become invalid and shall be returned to the former host institution. The new host institution
shall handle new certificate for the expert.

VII According to the stipulations of Chinese government,for the purpose of protecting the legitimate rights and interests of foreign experts in China, the foreign experts should enter into the Standard Employment Contract uniformly made by the State Administration of Foreign Experts Affairs with the host institution and definitely stipulate in form of contractual attachment the working assignment and quality, the salary, treatment and other matters the two parties consider the
Standard Contract has not covered. All these comprise an integral contract.

• In order to protect the legitimate rights and interests of foreign experts in China , when
entering the contract, please note:

• The conclusion of Standard Employment Contract shall use the original document. The copy
is valid. The Standard Employment Contract has six translated version as English, French,
German, Spanish, Japanese, and Arabic. Version of other languages can be instituted by the
English version or be translated and made by the host institution.

• The employment contract shall be concluded in written form. Any oral agreement will be
regarded as valid.

• The foreign expert shall sign the contract before coming to China ; those who have been
staying in China shall enter the contract before taking office.

• Considering the foreign expert is in need of renovating his knowledge and shall adapt his
native life and find a new job as soon as possible after repatriation, the continuous term of the
contract for the foreign expert to work in China is not suitable for over 5 years. The next
employment shall be after two years.

• The host institution may stipulation a probation period of 60 days for foreign expert. In the
probation period, if the host institution finds out that such situation of the foreign expert as the
healthcondition or professional ability is not fit for the working assignment agreed upon in the
employment contract, he is entitled the right to cancel the contract.

• When signing the attachment of the employment contract, please note:

• The Standard Employment Contract made by the State Administration of Foreign Affairs
has the uniform serial number. Therefore, the attachment shall be marked as the attachment of
which number of standard contract in order to show the coherence with the standard contract.

• The working assignment shall be concrete and not ambiguous. The quality of the work shall
also be definitely stipulated.

• Other matters the foreign expert considers the Standard Contract has not covered.

• It shall be explained that the attachment has equal validity to the Standard Employment
Contract and comprises an integral part of the contract

• The attachment shall take effect after the foreign expert and the representative of the host
institution sign it.

Note:

The foreign expert must consult the host institution about salary and living treatment before
coming to China and stipulate such matters in form of attachment of the contract. The salary
and living conditions mentioned below are applicable to the general conditions and are possibly
unfit for the requirement of your host institution and yourself.

1 Salary and Treatment

• Direct payment monetary salary

The salary will be paid monthly by RMB from the day of starting work to the expiration of the
contract. In case it is not enough for a whole month, the payment shall be counted by day.
The daily wage will be 1/30 of the monthly salary (February will be the same). No more than
70% of the salary can be changed into foreign currencies monthly. The employed party shall
pay the personal income tax in accord with the Personal Income Tax Law of the PR China.
The starting amount of taxation is RMB 4001. The monthly salary standard for reference:
where the expert has got the bachelor degree and the working experience is more than two
years, the monthly salary shall be no less than RMB 2500. For those who has got a master
degree and the working experience is more than three years, the monthly salary shall be around RMB3500. For those who has got a doctors degree and the working experience is over
five years, the monthly salary shall be about RMB 4000. No more than 70% of the monthly
salary can be changed into foreign currencies.

• Indirect payment

The host institution will guarantee the fundamental living conditions for the foreign experts in
China :

*Providing the lodgings with furniture,bedding, telephone, television, refrigerator, toilet, and
heating and cooling facilities. (The lodgings provided to the experts whose employment term is
more than half a year (or one semester) shall be equipped with a kitchen).

*Providing the medical care at public expense. The foreign expert must see the doctor in the
foreign-involved hospital appointed by the host institution. If not in the hospital appointed, the
expert shall undertake the cost. Such costs such as registration, transportation for medical care,
tooth inlaying, face lifting,healthprotection rubdown, glasses, meals in hospital, restorative but
not for medical purpose, and examination outside the hospital charged shall be undertaken by
the expert.

*Paying the traffic expenses for and off work or providing proper traffic allowances for the
expert whose working place is far from his domicile.

*International airplane tickets (international tourist class airplane ticket of the nearest distance
from China to the country of the expert).

Note:

Since the economic situation of the host institution may differ, the indirect payment for each
expert is possibly different. According to the statistics, the indirect payment for each expert
varies from RMB 80,000 to RMB 100,000.

2 Working time, rest, and holidays

• The working time of the foreign expert shall be 8 hours per day, 5 days per week.

• In case the foreign expert is arranged to work overtime, reward above the regular pay in
normal work time shall be paid in accord with legal standard.

• The foreign expert shall enjoy the following holidays and festivals in China :

New Years Day, Spring Festival, Labor Day, National Day, Christmas and other holidays
stipulated by laws and regulations.

• The foreign expert may enjoy the annual holiday with payment. Where the contract term
of the foreign expert is one year, the holiday with payment shall be four weeks. Where the
expert works in aneducational institution and the contract term is one academic year, he may
enjoy one holiday (winter holiday or summer holiday) in the institution with payment.

3 Sick leave and private affair leave

• Request for sick leave by the foreign expert shall be proved by the foreign-involved hospital
appointed by the host institution. Where the sick leave amount to less than 30 days in one
contract term (one year or one academic year), the foreign expert shall be paid 100% of the
salary. In case the leave exceeds 30 days, the host institution is entitled the right to dissolve the
contract, or if the contract is not dissolved, the salary will be paid by 70% until the normal work
is resumed.

In the contract term, the medical care cost of the foreign expert in the foreign-involved hospital
appointed by the local government during errands onbusinessshall be paid the host institution;
the medical cost for privatebusinessshall be undertaken by the expert.

In the contract term, the foreign expert shall undertake the medical cost spent in Taiwan
Province , Hong Kong SAR, Macao SAR or outside China .

• Private affairs leave of the foreign expert shall acquire the approval of the host institution.
The host institution may deduct the salary by day. In the contract term (one year or one
academic year), the private affairs leave shall not exceed 10 days. Where one day exceeds,
salary for two days will be deducted.

In case of absence off work without allowance of the employing party, where absence amounts
to one day, payment for three days will be deducted. Where the situation is serious, the host
institution has the right to dissolve the contract and investigate the liability of the foreign expert
for violation of the contract.

• How to settle the dispute on the employment contract

• The two parties shall seek settlement through friendly consultation.

• Where the consultation is not a effective, the parties may apply for mediation or arbitration to
the Arbitration Committee on dispute arising from the Employment Contract for Foreign
Culture andEducational Expert established by the State Administration of Foreign Experts
Affairs according to the arbitration terms in the standard contract.

• In case the contract is not a standard contract and has no arbitration terms, only when the
two parties jointly apply for mediation or arbitration can the arbitration committee accept it.
The application brought forward by one party alone will not be accepted and each party may
sue to the local court.

VIII Protection of foreign experts intellectual property rights

Great attention is paid to intellectual property rights the important requirements of international
exchange of technology, economy, culture and talents. The Chinese government keeps
strengthening the making and implementation of laws and tries to create the correct
environment for the protection of intellectual property rights.

Foreign experts intellectual property rights of patents, works, special techniques and
trademarks are respected and protected by the Chinese government. If the expert or his
company applies for patent or trademark protection, they will own it and the right will be
rewarded. The Chinese government and the departments concerned will maintain thebusiness
secrets according to law.
The secrets cover designing plans, production processes, formulas, crafts, strategies of
management, name lists of customers, information of material resources, policies of
manufacture and sales, any bids and documents. Chinese law forbids illegal acts such as
stealing, enticing, threatening or exposing the agreement.

At present Chinese laws concerning the protection of the intellectual property rights are
mainly the"General Rules of the Citizen Law of the Peoples Republic of China”, and the
"Trademark Law of the Peoples Republic of China”,"Patent Law of the Peoples
Republic of China”,"Contract Law of the Peoples Republic of China”, the" Rules of
Computer Software Management”,"Corporation Law of the Peoples Republic of China”,
"Foreign Trade Protection Law of the Peoples Republic of China”, and"Commercial
Banking Law of the Peoples Republic of China"."The Scientific Fruit Transferring Rules
Law of the Peoples Republic of China " also concerns the protection of intellectual property
rights.

The Chinese government has participated in international protective actions of intellectual
property rights, the negotiation of important agreements, and has accepted international
duties of protecting intellectual property rights.

IXInsurancein China

Chineseinsurancecompanies cover a large range of business. Foreign experts working in
China are advised to buy the followinginsurance:

• propertyinsurance

• personal accidentinsurance

• vehicleinsurance

• employer responsibilityinsurance

• public responsibilityinsurance

• investmentinsurance

The PeoplesinsuranceCompany of China and other largeinsurancecompanies operate
many branches in Beijing and other major cities to cater to the needs of foreign customers.

X Medical care in China

Thehealthsystem in China covers the whole country. Most of the host institutions have their
own clients to deal with minor complaints. There are hospitals in almost every city where
patients can get treatment without having totraveltoo far. Big cities like Beijing , Shanghai ,
Guangzhou and all the provincial capitals have well-equipped hospitals which employ many
experienced doctors with specialized departments including that of traditional Chinese medicine.
Many cities have special departments for foreign experts where patients receive first-class
attention. China adopts a partly free medical care service. Particular issues concerning foreign
experts medical care should be covered in the contract.