Sustainable Procurement Management Agreement

In order to further implement the safety production policy of “safety first, prevention first, and comprehensive management”, clarify the responsibilities and requirements of occupational health, safety, environmental protection, and labor management in the construction process of engineering projects, labor outsourcing, leasing and purchasing, and other business service processes, prevent occupational health, safety, environmental protection, and labor risks in the construction and business service processes, in accordance with the “Law of the People’s Republic of China on Work Safety”, “Law of the People’s Republic of China on Environmental Protection”, “Law of the People’s Republic of China on Prevention and Control of Occupational Diseases”, “Law of the People’s Republic of China on Energy Conservation”, “Regulations on Safety Production Management of Construction Projects”, “Labor Law of the People’s Republic of China”, “Labor Contract Law of the People’s Republic of China” and other relevant laws and regulations, the two parties have reached an agreement on occupational health, safety, environmental protection, and labor management matters in engineering projects and business services, and signed this agreement and promised to strictly implement it.

Article 1 Commitments of both parties

Both parties abide by and strictly implement the relevant requirements of national occupational health, safety, environmental protection, and labor management laws, regulations, rules, and standards.
The contractor shall be responsible for occupational health, safety production, environmental protection, energy consumption and labor management in the project construction site and the responsible area.
The contractor shall strictly implement and comply with Modern Dairy’s safety production, fire protection, labor protection, environmental protection, and other regulations during the construction period, and accept Modern Dairy’s supervision, inspection, and guidance. For the hidden dangers of safety found by Modern Dairy, the contractor must rectify within the time limit. If the contractor fails to rectify as required, Modern Dairy has the right to order the contractor to stop work.
The contractor shall strictly abide by Modern Dairy’s site rules and safety management requirements and urge its personnel to strictly follow Modern Dairy’s requirements.

Article 2 Cost Guarantee

The contractor shall, in accordance with the relevant provisions and standards of laws, regulations, rules, and this agreement, ensure that the safety and environmental protection funds are used for special purposes and implemented in place, and ensure that the project construction conditions, and various work meet the national and Modern Dairy’s safety and environmental protection requirements.
The contractor shall, in accordance with the requirements of national laws and regulations, purchase work-related injury insurance or accident insurance for each of its personnel, and provide Modern Dairy with a copy of the insurance policy.
The contractor shall, in accordance with the requirements of laws and regulations, purchase insurance for the vehicles and goods transported and bear the insurance costs.

Article 3 Agreements of both parties

The contractor shall clarify the information of its operation personnel, including but not limited to the following contents:
- The name, gender, age, position, and qualification certificate of the project (business) leader, safety management personnel, engineering technical personnel, special operation personnel, and special equipment operation personnel.
- The name, model, specification, quantity, and use location of the main equipment and facilities (applicable to engineering construction projects).
The contractor’s personnel shall carefully inspect the construction area, working environment, operating facilities and equipment, tools, and utensils, etc. where they are located, and stop the construction immediately if any hidden danger is found, and only start the construction after rectifying and eliminating the hidden danger. Once the construction is started, it means that the contractor confirms that the construction site, working environment, facilities and equipment, tools, and utensils, etc. meet the safety requirements and are in a safe state.
When involving special operations, special equipment operations, vehicle driving, and other work, the contractor shall ensure that its operation personnel obtain valid certificates in accordance with national regulations, and no unlicensed personnel shall be allowed to work. The contractor shall do a good job in the safety training of its personnel. Personnel engaged in special operations such as welding, electrical, scaffolding erection, and special equipment operation personnel must have valid certificates corresponding to the operation activities, and no unlicensed personnel shall be allowed to work.
The contractor shall, in accordance with the requirements of laws and regulations, equip its personnel with necessary and qualified personal protective equipment, and urge its personnel to wear them correctly. The contractor shall regularly check the effectiveness of the protective equipment and form a record of the issuance and inspection of the protective equipment. Contractor personnel who do not use or use unqualified personal protective equipment shall not perform operations. Contractor personnel must wear all kinds of complete and effective protective equipment as required when entering the work site and take protective measures.
The contractor shall, according to the risk characteristics of the construction site, set up obvious and national standard occupational health notification signs and safety and environmental protection warning signs at the entrance of the construction site, dangerous goods storage places, and other dangerous parts.
The contractor shall strictly follow the requirements of the “Law of the People’s Republic of China on Prevention and Control of Occupational Diseases” and Modern Dairys “Occupational Health and Safety Management System”, and fulfill its duties of occupational hazard notification, occupational health training, physical examination (pre-job, on-job, off-job), diagnosis and treatment of occupational diseases, and other related work for its personnel, and form paper files for notification, training, and physical examination for file management.
The contractor shall take the green development concept as the guide, adhere to the green and scientific development concept, and achieve environmental protection and low-carbon development.
- The contractor shall have the relevant qualifications and documents required by the national environmental protection laws and regulations to provide services to Modern Dairy. If the contractor needs to report to the local competent department of ecology and environment for approval before providing services to Modern Dairy, the contractor shall complete the relevant approval procedures in advance.
- The products and raw materials, production process, and services provided by the contractor to Modern Dairy shall meet the requirements of relevant environmental protection laws and regulations of the state, local, and industry.
- For the pollutants (wastewater, waste gas, noise, solid waste, etc.) discharged by the contractor in the production, activity, or service process, the contractor shall formulate plans and take effective measures to comply with the national or local emission standards or relevant standards.
- The contractor shall continuously improve and enhance the relevant practices of energy conservation and carbon reduction, reduce resource consumption, and reduce the generation and emission of pollutants. During the construction, maintenance, or operation activities in the Modern Dairy plant area, the contractor shall abide by the requirements of Party A on saving energy and water resources and use energy reasonably. It is strictly forbidden to use high-energy-consuming and backward mechanical and electrical equipment that is explicitly prohibited by the state. Energy and water resources are measured separately and accounted for.
Protecting Biodiversity
- The contractor shall respect and protect the biodiversity and natural landscape of the region where it is located and avoid any adverse impact on protected or endangered species and habitats. When conducting related business activities, the contractor shall minimize the consumption and pollution of natural resources such as land, water, and air quality, and adopt environmentally friendly technologies and methods.
- The contractor shall give priority to using pollution-free, safe, and effective production processes, production and construction equipment, and advanced construction methods in the production, construction, and business development process, and shall not use production processes, production and construction equipment that are prohibited by the state or local authorities. In the construction process, the contractor shall take necessary measures to reduce the pollution of noise, dust, wastewater, and hazardous waste, and dispose of the waste on the construction site properly, and strictly prohibit secondary pollution, and keep a good record of environmental protection accounts and file them for future reference.
- The contractor shall, in accordance with the relevant national environmental protection policies, standards, laws, and regulations, properly store, use, dispose of flammable, explosive, or toxic and hazardous dangerous goods (including hazardous waste), take preventive measures, and prevent fires, explosions, or leaks from occurring during storage, transportation, and use, and avoid environmental pollution and environmental incidents.

(I) Labor Standards

Prohibition of Forced Labor

The contractor shall strive to avoid all forms of forced or compulsory labor, such as all work must be done voluntarily, and all workers must be allowed to freely terminate their employment relationship with reasonable notice. We require the contractor not to use any form of threat, violence, restriction, detention, or other means to force workers to continue working or deprive them of their freedom. The contractor shall not restrict the movement or communication of workers in any way, or illegally confiscate the identity documents, passports, or other important documents of workers.
Child Labor and Minor Workers

The contractor shall comply with all applicable laws and regulations regarding the minimum working age and ensure that its business activities do not use any form of child labor. The contractor shall verify the age of its employees when hiring them and shall not arrange for minors under the age of 18 to engage in any work that may harm their health or safety. The contractor shall ensure that the working hours and rest time of minor workers comply with local laws and the regulations of the International Labor Organization (ILO), and do not affect their opportunities to participate in education and training.
Working Hours

The contractor shall comply with all applicable laws and regulations related to working hours, rest, wages, and benefits, and ensure that no employee exceeds the maximum working hours stipulated by law or contract, whichever is lower, and respect the right of employees to enjoy paid annual leave and public holidays. The contractor shall arrange overtime work reasonably according to the actual situation and the wishes of the employees and ensure that the overtime does not exceed the scope allowed by local laws or industry norms.
Wages and Benefits

The contractor shall comply with the applicable laws and regulations related to overtime pay and minimum wage and ensure that all employees receive fair and timely remuneration. The contractor shall strictly implement the labor quota standards and shall not force or coerce workers to work overtime. The employer shall pay remuneration to the workers in accordance with the relevant national regulations when arranging overtime work. The contractor shall pay the employees reasonable and sufficient wages on time, which can at least meet their basic living needs and some disposable income. The contractor shall clearly explain to the employees their wage structure and calculation method and provide relevant records and proofs. The contractor shall not deduct or delay the payment of wages to the employees for any reason. The contractor shall also provide relevant benefits and insurance for the employees according to local laws and industry norms.
Humane Treatment

The contractor shall provide a safe, healthy, and non-violent working environment, and shall not tolerate any form of harassment, abuse, or punishment, including but not limited to physical, sexual, verbal, or psychological aspects. We require the contractor not to conduct any form of illegal or cross-gender searches, nor to threaten to do so. The contractor shall establish an effective complaint and appeal mechanism, and ensure that the employees can freely, safely, and confidentially reflect their problems and opinions, and receive timely and fair treatment.
Anti-Discrimination

The contractor shall abide by the principle of equality and non-discrimination in its business activities, and shall not discriminate based on race, color, religion, gender, age, disability, nationality, sexual orientation, political views, or other characteristics protected by law in any business activity. The contractor shall ensure that all employees have equal opportunities and treatment in recruitment, training, promotion, remuneration, benefits, etc., and evaluate and reward them according to their abilities and performance. The contractor shall respect the diversity and inclusiveness of the employees and provide them with a non-discriminatory and unbiased working environment.
Freedom of Association

The contractor shall respect the legal rights of employees to freely associate, join unions, seek representation, and collective bargaining. Do not interfere with or retaliate against employees who exercise their rights to freedom of association and collective bargaining. The contractor shall establish good communication and cooperation with unions or other organizations representing the interests of employees and respect their legitimate rights and interests in labor relations.

(II) Product Quality and Safety

The contractor shall strictly comply with all laws and regulations related to product safety and quality, as well as meet the quality requirements of our company. The contractor shall establish and maintain an effective quality management system to ensure the quality and safety of products and services. The contractor shall also promptly deal with any problems or complaints related to product or service quality or safety and take appropriate corrective and preventive measures to avoid recurrence.

(III) Business Ethics and Information Protection

Integrity and Honesty

The contractor shall comply with the relevant laws and regulations of the country and local where it operates and respect the rights and interests of the local community and stakeholders. Conduct business activities honestly, fairly, and transparently, and do not engage in any form of bribery, corruption, fraud, or unfair competition. Do not provide or accept any gifts or entertainment that may affect business decisions or damage our reputation.
Information Protection

The contractor shall protect personal information and privacy, and comply with all applicable data protection laws and regulations. Protect the confidential assets and information of customers, and do not disclose, misuse, or misuse these assets and information.

Article 5 Training and Education

Both parties shall conduct training and technical disclosure on occupational health, safety production, environmental protection, energy use, etc. When Modern Dairy organizes activities, such as post safety and environmental protection training, emergency drills, etc., the contractor shall arrange personnel to participate actively.
The contractor shall, in accordance with the relevant laws, regulations, rules, and standards, conduct safety and environmental protection education and training for its personnel on the safety and environmental protection risks and prevention and control measures existing in the project construction (business) process, and ensure that the contractor’s personnel master the necessary safety and environmental protection knowledge, operation skills, and emergency disposal skills. The education and training records shall be filed and filed in a standardized manner, and those who have not received safety education and training shall not be allowed to work. When the contractor’s personnel change, the contractor shall update the personnel information and conduct education and training in a timely manner, and the updated information shall be filed with Modern Dairy in time.

Article 6 Emergency Rescue

The contractor shall formulate an emergency plan according to the risk characteristics of the project and business service process, and connect it with the Modern Dairy emergency plan, and organize drills regularly.
After an accident occurs in the engineering construction and business service process, the relevant personnel at the scene of the accident shall immediately report to Modern Dairy and start the emergency plan to carry out emergency rescue.
In case of personal injury or major equipment accidents during the construction period, both parties shall cooperate in rescuing the injured and protecting the scene, and report to their respective competent authorities in accordance with the national, project location, and Modern Dairy’s relevant accident reporting regulations.