Document:

Convertible Note Payable, Harold Lynn Keene, dated June 27, 2012

 Exhibit 10.2 
 THIS NOTE IS NOT A DEPOSIT OR SAVINGS ACCOUNT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS NOTE REPRESENTS A DEBT OBLIGATION
OF THE BORROWER AND NOT AN EQUITY INTEREST. 
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE OR OTHER SECURITIES LAW. THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE NOTE UNDER THE SECURITIES ACT OR AN AVAILABLE EXEMPTION FROM REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT, OR IN A TRANSACTION NOT SUBJECT THERETO. 

 

			
	***$2,650,000***	 	 Honaker, Virginia

June 27, 2012

 CONVERTIBLE NOTE DUE 2012 
 (EXTENSION) 
 NEW PEOPLES BANKSHARES, INC., a Virginia corporation
(“Borrower”), for value received, hereby promises to pay to Harold Lynn Keene, or his registered assigns (“Holder”), in the manner provided in Article II of this Note, the principal sum of TWO MILLION SIX HUNDRED FIFTY
THOUSAND AND NO/100 DOLLARS ($2,650,000), on December 31, 2012. This Note represents an extension and consolidation of the indebtedness evidenced by the Convertible Note due 2011 dated January 20, 2011, by the Convertible Note due 2011
dated March 15, 2011, and by the Convertible Note due June 30, 2012 dated December 21, 2011 (“Prior Notes”) which are cancelled. 
  

	I.	DEFINITIONS 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday, or Friday that is not a day on which banking institutions
in the Commonwealth of Virginia are authorized or obligated by law, executive order or regulation to remain closed. 

“Interest Payment Date” means the Stated Maturity. 

“Base Rate” means, at any time, the rate of interest per annum most recently published at the time of determination as
the “Prime Rate” in the “Money Rates” section of The Wall Street Journal. The Base Rate shall be a variable rate of interest and shall change as and when there occurs a change in such published Prime Rate, from time to
time. A change in the Base Rate resulting from a change in the published Prime Rate shall be effective as of the opening of the Business Day, on the Business Day next following. In the event The Wall Street Journal ceases

 
to publish a Prime Rate, the Prime Rate for purposes of determining the Base Rate hereunder shall be a rate of interest reasonably selected by the Borrower as a rate of interest published by a
third party which is as comparable as reasonably possible to the Prime Rate previously published by The Wall Street Journal. 
 “Common Stock” means the common stock ($2.00 par value) of the Borrower. 
 “Conversion” has the meaning set out in Article IV. 

“Conversion Amount” has the meaning set out in Article IV. 

“Conversion Date” means any date that is specified by the Borrower in a Conversion Notice given to the Holder as
described in Article IV on which it will convert all of the principal balance and all accrued interest on the Conversion Date on this Note to Common Stock (or such lesser amount of principal and accrued interest as may be converted into the maximum
number of shares of Common Stock which Holder is on the Conversion Date entitled or qualified to own lawfully under applicable federal and state law), as provided in Article IV ($2.00). 

“Conversion Notice” has the meaning set out in Article IV. 

“Conversion Shares” has the meaning set out in Article IV. 

“Event of Default” has the meaning set out in Article VIII. 

“Market Value” has the meaning set out in Article IV. 

“Note” means this Note, as amended from time to time, and any replacement therefor issued pursuant to Article IV or VI
hereof. 
 “Offering” has the meaning set out in Article IV. 

“Person” means any individual, corporation, partnership, association, joint venture, limited liability company, joint
stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 

“Redemption Date” means any date that is specified by the Borrower in the Redemption Notice given to the Holder as
described in Article VI on which it will redeem or prepay, in whole or in part, the principal amount of the Note prior to its Stated Maturity. 
 “Redemption Notice” has the meaning set out in Article VI. 

“Stated Maturity” means December 31, 2012, which is the date on which the principal amount of the Note, if not
sooner paid, is due and payable in full. 

  
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	II.	PAYMENT OF PRINCIPAL AND INTEREST 

 If not sooner paid as provided herein or converted, the Borrower promises to pay the outstanding principal amount of the Note and all accrued interest thereon to the Holder at its Stated Maturity.

 The Borrower shall pay interest to the Holder on the unpaid or unconverted principal amount of the Note at a variable rate
per annum equal to the Base Rate which interest rate shall vary as and when the Base Rate varies without notice to any Person. Accrued but unpaid interest on the Prior Notes and on this Note shall be paid on such Redemption Date. Interest will be
computed on the basis of the actual number of days in any year or other period. No interest shall accrue on principal converted into Common Stock on and after the Conversion Date. 

 

	III.	METHOD OF PAYMENT 

 The
Borrower will pay principal and interest in money of the United States of America that at the time of payment is legal tender for payment of all debts, public and private. Principal and interest may be paid by check mailed to the Holder at the
Holder’s registered address; provided, that all payments with respect to which the Holder has given wire transfer instructions to the Borrower will be required to be made by wire transfer of immediately available funds to the accounts specified
by the Holder. 
  

	IV.	CONVERSION OF NOTE 

Section 4.01. Conversion. To the extent and in the manner hereinafter set forth in this Article IV, the indebtedness
represented by the Note and the payment of the principal of and interest on the Note is a general, unsecured obligation of the Borrower, is not subject to any sinking fund, and on or before Stated Maturity as hereinafter provided and subject to any
required regulatory approvals shall be converted (the “Conversion”) as part of or in conjunction with the first to occur of a private placement or registered or public offering of the Common Stock commenced or continuing while this Note is
outstanding (“Offering”) (or may at the option of the Borrower be converted at Stated Maturity in the event there has been no Offering prior to the Stated Maturity) to that number of shares of Common Stock equal to Conversion Amount
divided by the Market Value per share of the Borrower’s Common Stock ($2.00 par value) as provided in Section 4.02. For purposes hereof the “Market Value” shall be: (1) the value per share at which the Common Stock is being
offered in an Offering when the Conversion Notice is given as required by Section 4.02; or (2) the value per share established by the Borrower’s Board of Directors, if all or any portion of the indebtedness has not been converted
prior to Stated Maturity as required in connection with an Offering if the Borrower elects to convert as provided in Section 4.02 at or prior to Stated Maturity. 
 Section 4.02. Conversion Notice. If there is an Offering prior to Stated Maturity, the Borrower shall convert the maximum amount of the indebtedness evidenced hereby into the number of
shares of Common Stock as to which Holder shall then be entitled or qualified to acquire and own lawfully under applicable state and federal law, and the Holder shall be entitled to the same rights and benefits in connection with the Conversion on
the same terms as are provided to purchasers of the Common Stock in such Offering, including but not limited to warrants. If there is no such Offering or if the entire indebtedness evidenced by this Note cannot be converted in the Offering fully
into shares of Common Stock as a result of the failure of the 

  
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Borrower to qualify to own or acquire such shares lawfully, the Borrower may elect to convert at the Stated Maturity the maximum amount of the unpaid principal and the accrued interest on this
Note to its Common Stock into the number of shares as to which Holder shall then be entitled or qualified to acquire and own lawfully under applicable state and federal law. In either case, Borrower shall furnish to the Holder at least seven
(7) days but not more than thirty (30) days before the Conversion Date (which shall be the Stated Maturity in the event of optional conversion hereunder or in the case of mandatory conversion, a date in the Offering when shares may be
issued as part of the Offering, regardless of whether any shares are issued) a notice (“Conversion Notice”) setting forth the Conversion Date, the amount of principal and accrued interest to be converted (“Conversion Amount”),
the number of whole shares of Common Stock (“Conversion Shares”) into which such principal and interest is to be converted pursuant to Section 4.01 and, if in connection with an Offering, any other rights or benefits to which the
Holder is entitled. On the Conversion Date, the Borrower shall issue to the Holder a certificate for the Conversion Shares, and remit any balance in cash to the Holder in lieu of any fractional shares and provide the other rights and benefits, if
any, to which the Holder is entitled hereunder if the Conversion occurs in connection with an Offering. On the Conversion Date the Holder shall surrender this Note which shall be cancelled if the entire indebtedness has been converted into Common
Stock. If less than all principal and accrued interest is converted on the Conversion Date prior to Stated Maturity, the indebtedness evidenced by this Note shall be deemed reduced by the Conversion Amount (applied first to accrued interest then to
principal) and this Note shall be endorsed accordingly. If Holder fails to present this Note on any Conversion Date, Borrower shall retain possession of the certificate for the Conversion Shares until such presentation. Holder agrees to cooperate
with Borrower in attempting to qualify under applicable federal and state law to acquire and own the maximum number of shares of Common Stock into which the indebtedness evidenced hereby would be otherwise convertible and to take all such actions
and provide all such information as may be reasonably requested or required by applicable governmental authorities, provided Borrower pays all expenses and fees associated therewith. 

 

	V.	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 

 Section 5.01. Borrower May Consolidate, Etc., Only on Certain Terms. The Borrower covenants that it will not merge or consolidate with any other corporation or Person or sell or convey
all or substantially all of its assets to any Person , except that the Borrower may merge or consolidate with, or sell or convey all or substantially all of its assets to, any other corporation, provided, that (i) either the Borrower shall be
the continuing corporation, or the successor corporation (if other than the Borrower) shall be a corporation organized and existing under the laws of the United State of America or a State thereof, and such corporation shall expressly assume the due
and punctual payment of the principal and interest on the Note, according to its tenor and the due and punctual performance and observance of all of the covenants and conditions of the Note to be performed by the Borrower or such successor
corporation, as the case may be, and (ii) the Borrower or such successor corporation, as the case may be, shall not, immediately after such merger, consolidation, sale or conveyance, be in default in the performance of any such covenant or
condition. 
 Section 5.02. Successor Substituted. Upon any consolidation of the Borrower with, or merger of
the Borrower into, any other corporation, or any sale or conveyance of all or 

  
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substantially all of the assets of the Borrower, in accordance with Section 5.01, the successor corporation formed by such consolidation or into which the Borrower is merged or to which such
sale or conveyance is made shall succeed to, and be substituted for, be subject to every liability or duty hereunder of, and may exercise every right and power of, the Borrower under the Note with the same effect as if such successor corporation had
been named as the Borrower herein. 
  

	VI.	REDEMPTION 

 As its
option, the Borrower may redeem or prepay all or any portion of the principal amount of the Note for cash at any time or from time to time on or after the date of issuance at par and without payment of any premium or penalty. 

If the Borrower elects to redeem or prepay the Note, in whole or in part, it shall furnish to the Holder at least 15 but not more than 60
days before the Redemption Date a notice (“Redemption Notice”) setting forth the Redemption Date and the principal amount of the Note to be redeemed or prepaid. The Holder shall be required to present the Note to the Borrower on the
Redemption Date in order to be entitled to receive its payment, but, notwithstanding the failure or refusal of the Holder to present the Note to the Borrower on the Redemption Date, the Note shall be deemed to have been redeemed or prepaid on the
Redemption Date to the extent provided in the Redemption Notice sent to the Holder in compliance herewith. Unless the Borrower defaults in redeeming the Note, in whole or in part, as provided in its Redemption Notice, on the Redemption Date,
interest on the Note to the extent it is deemed to have been redeemed or prepaid will cease to accrue on the Redemption Date, whether or not the Note is presented for payment. Upon surrender of the Note for partial redemption, the Borrower shall
issue a new note equal in principal amount to the unredeemed or unprepaid portion of the Note. Any amount not paid by the Borrower to the Holder on a Redemption Date as a result of the Holder’s failure or refusal to present the Note to the
Borrower shall be held by the Borrower and shall be paid when the Note is so presented by the Holder. 
 In the case of any
redemption or prepayment in full, the Borrower’s payment to the Holder on the Redemption Date shall include interest, if any, accrued on the Note but unpaid. 
  

	VII.	AMENDMENT, WAIVER 

 The
Note may be amended, and any past default or Event of Default and its consequences may be waived, only with the written consent of the Holder; provided, that the Borrower may amend the Note without the written consent of the Holder to evidence the
succession of another Person to the Borrower and the assumption by such successor of the covenants of the Borrower contained in the Note. 
  

	VIII.	DEFAULTS AND REMEDIES 

Section 8.01. Events of Default. An “Event of Default” will be deemed to have occurred if: 

(a) A decree or order shall have been entered approving as properly filed a petition seeking liquidation or reorganization of the
Borrower under Chapter 7 or 11 of the federal Bankruptcy Code, and if such decree or order shall have continued undischarged and unstayed for a period of 120 days; or 

  
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 (b) The Borrower shall institute proceedings to be adjudicated a bankrupt, or shall consent
to the filing of a bankruptcy proceeding against it, or shall file a petition or answer or consent seeking liquidation or reorganization, under Chapter 7 or 11 of the federal Bankruptcy Code, or shall consent to the filing of any such petition.

 Section 8.02. Acceleration of Maturity. If an Event of Default described in Section 8.01 above occurs
and is continuing, the Borrower shall no longer have the conversion rights prescribed under Article IV and the Holder may declare the unpaid principal of, plus accrued and unpaid interest on, the Note then outstanding to be immediately due and
payable, by a notice in writing to the Borrower; and upon any such declaration such principal amount and accrued interest shall become immediately due and payable. 
 Section 8.03. Collection of Indebtedness and Suits for Enforcement by Holder. The Borrower covenants that if default is made in the payment of the unpaid principal of the Note at the
Stated Maturity thereof or upon an accelerated maturity pursuant to Section 8.02, the Borrower shall, upon demand of the Holder, pay to it, the amount then due and payable on the Note for principal and/or interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue principal and on any overdue interest, at the rate or rates prescribed therefor in the Note. 
 If the Borrower fails to pay such amounts forthwith upon such demand, the Holder may institute a judicial proceeding for the collection of the sums so due and unpaid, together with such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Holder’s legal counsel, and may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Borrower or any other obligor upon the Note and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Borrower or any other obligor upon the Note, wherever
situated. 
  

	IX.	LIMITED RIGHT OF ACCELERATION; WAIVER OF RIGHT OF OFFSET 

 Payment of the principal amount of the Note may be accelerated only in the case of the Event of Default described in Section 8.01 above. Payment of the Note may not be accelerated upon a default in
the payment of principal of or interest on the Note, or a default in the performance of any covenant or agreement in the Note. In the event of a default in the payment of principal or interest, the Holder may, subject to the terms hereof, seek to
enforce payment only of any principal or interest then due. 
  

	X.	MAINTENANCE OF STATUS AS INSURED DEPOSITORY INSTITUTION 

 The Borrower shall do or cause to be done all things necessary to preserve and keep in full force and effect its subsidiary bank’s status as an insured depository institution and do or cause to be
done all things necessary to insure that all deposit accounts are insured by the Federal Deposit Insurance Corporation or any successor organization up to the maximum amount 

  
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permitted by 12 U.S.C. Section 1811 et seq. and the regulations thereunder or any succeeding federal law, except as to individual accounts or interest in employee benefit plans that are not
entitled to “pass-through” insurance under 12 U.S.C. Section 1821(a)(1)(D). 
  

	XI.	GOVERNING LAW 

 THE
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF VIRGINIA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SAID COMMONWEALTH WITHOUT REGARD TO THE CONFLICTS OF LAWS AND RULES THEREOF. 

IN WITNESS WHEREOF, the undersigned has caused the Note to be duly executed under its corporate seal by its undersigned officer
thereunto duly authorized. 
  

			
	NEW PEOPLES BANKSHARES, INC.
		
	By:	 	 /S/ C. TODD ASBURY

			
		
	Name:	 	 C. Todd Asbury

			
		
	Title:	 	 EVP & CFO

  
 - 7 -Labor Contract

 Exhibit 10.21 
 Labor Contract 
 Party A (Employer): Harbin Yew Science and Technology Development
Co., Ltd 
 Address: 5th Floor, Far East Building, Area B, No. 18 Heng Shan Road, Xiang Fang District, Harbin City, Hei Longjiang
Province · China 
 Legal Representative: Zhiguo Wang 
 Person in charge: Xingming Han 
 Party B (Employee): Zhiguo Wang 

Home Address: No.234, Ge Xin Street, Nan Gang District, Harbin City 
 ID Number: 232102196212185810 
  
 Supervised by Harbin Labor and Social Security Bureau 

 The Labor Contract Notes 
 1. Both Party A and Party B should read the content of the labor contract carefully before signing it. Once the contract is signed, it has the binding force, and both Parties should fully perform it.

 2. The employer should earnestly fulfill the rules and regulations and notification of significant events, which are directly related to the
laborer’s vital interest. 
 3. When hiring an employee, the employer shall neither seize the employee’s ID card or any other valid
documentation nor require the employee to provide security or collect property from the employee under other name. 
 4. Once this contract is
signed, both parties cannot amend the content of the labor contract arbitrarily. 
 5. Party A and Party B each hold one copy of this contract,
and Party A must not keep Party B’s labor contract. When terminated or discharged, the contract should be kept for two years for checking. 

6. If Party B has not terminated or discharged the labor contract with other employers, Party B should honestly explain whether it can cause damage to
the former employer and Party B should make a promise in written form that if it can cause damage to the former employer, Party A shall not employ the laborer. 
 7. This contract must be signed by Party B in person. 

 According to the Labor Law of PRC, Labor Contract Law of PRC and relevant
laws, regulations and rules, Party A and Party B sign this contract and obey all the clauses listed in the contract on the basis of equality, free will, mutual consultation and good faith. 

I. Term of Labor Contract (the figure is capitalized) 
 Article 1 both parties choose the following No. 1 form to confirm the term of this contract: 
 (1) Fixed term: the term of this contract is three years (36 months), starting from May 10th, 2012 to May 9th, 2015, and including_0_ (months, days) of probation
period. 
 (2) Flexible term: starting from___day___month___year to the time when legal or the contract agreed
termination conditions appears. 
 (3) Based on the term of completing a specific amount of work.
../../../../../feixin/Youdao/Dict4/resultui/queryresult.html  

 It terminates from___day___month___year to the work task is finished. And among that, the probation period is from___day___month______ _____year to___day___month___year, and the term is___days. 

II. Job Description and Working Place 
 Article 2 According to the needs of Party A’s work, Party B agrees to be engaged in the CEO post (type of work). Upon consent of both parties, the work post (type of work) can be changed.

 Article 3 Party B should accomplish the specified quantity of work on time at the request of
Party A and the work should meet the prescribed standard of quality 
 Article 4 Party B agrees to work at the working place
arranged by Party A: No. 18, Heng Shan Road, Xiang Fang District, Harbin City. According to the need of Party A, the working place can be changed upon the consent of both parties. 

III. Working Hours, Rest and Leave 
 Article 5 Party B implements the standard working time system. 
 (1) If the standard working time system is implemented, the working time of each day for Party B arranged by Party A should not exceed 8 hours, and average working time of every week should not exceed 40
hours. Due to the need of work, Party A can lengthen the working time after consulting with labor union and Party B, but generally the lengthened working time per day should not exceed an hour. If the working time is lengthened due to special
reason, it should not exceed 36 hours every month. 
 (2) If comprehensive computation man-hour workpiece system
is implemented, the average working time per day cannot exceed 8 hours, and the average working time per week cannot exceed 40 hours. 
 (3) If flexible work time system is implemented, the working time, rest and leave are arranged by Party B. 

 Article 6 If Party A lengthens the working time of Party B; Party A should arrange
additional rest time equal to the lengthened working hours or pay work over-time salary to Party B. 
 Article 7 Party B enjoys
all the rights of taking a rest/taking a holiday specified by the state during the contract term, and Party A should guarantee that Party B at least has one day off for each week. 

IV. Labor Protection and Labor Conditions 
 Article 8 Party A should strictly implement the national and local laws, regulations and rules concerning labor protection, and provide the essential labor conditions and tools for Party B, establish and
perfect the production technological process, and formulate operational procedures, working norms, and labor safety and hygiene system and standard. 
 Article 9 If Party B is engaged in work which may cause occupational disease, Party A should arrange occupational health check-up before starting work and after leaving the post according to the relevant
stipulations of the state, and Party A should carry out occupational health check-up for Party B regularly within the contract term. 
 Article 10 Party A has the obligation to educate and train Party B in connection with professional ethic, business skill, labor safety and hygiene as well as relevant rules and regulations. 

 Article 11 Party B has the right to refuse Party A’s orders that violate the
regulations, and has the right to put forward criticism and report to the relevant authorities that Party A and its managerial staff ignore Party B’s safety and health. 
 V. Labor Payment 
 Article 12 The salary during the probation period should
not be lower than the lowest-grade salary of the employer or 80% of the salary agreed by Article 13 of this contract, and should not be lower than the minimum wage standard of the area where the employer is located. 

Article 13 when the probation period of Party B expires, Party A should confirm that Party B implements the following No.
(1) Wage system according to the wage system of Party A: 
 (1) Hourly wages. The salary of Party B is
made up of the following several parts: post salary, ___,___,___; the standard is respectively 10000 CNY/month, ___ CNY___/month, ___ CNY ___/month. If the wage system of Party A or the works post of Party B changes, it shall be
re-confirmed according to the new salary standard. 
 2) Wage for piecework. Party A should make scientific and
reasonable standard of production quota___and the unit price of wage for piecework is ___ CNY. 
 (3) Other wage
system. The detailed agreement can be listed in Article 44 of this contract 

 Article 14 Party A should pay the salary to Party B every month, which is the legally
inclined form, and the pay day is the 20th day of every month. Party A must not reduce or delay the salary without cause. 

Article 15 If Party A arranges Party B to extend the day-time working time of Party B, Party A should pay the remuneration not lower than
150% of Party B’s salary. If Party A arranges Party B to work on rest day but cannot arrange supplementary rest day, it should pay remuneration not lower than 200% of Party B’s salary. If Party A arranges Party B to work on official
holiday, it should pay remuneration not lower than 300% of Party B’s salary. 
 Article 16 The period that Party A shuts
down, stops production and close the business (not caused by Party B), does not exceed one month, Party A should pay salary to Party B according to the wage standard agreed in this contract; if the period exceeds one month but Party A does not
arrange work for Party B, Party A should pay the living cost (due to shutdown) not lower than the local unemployment insurance standard to Party B. 
 Article 17 If Party A lengthens the working time of Party B, Party A should arrange equal time for Party B to rest or pay overtime pay to Party B in accordance with the law. 

Article 18 Party B enjoys vacation like annual leave, home leave and funeral leave, Party A should pay salary to Party B according to the
standard of relevant national and local regulations or the standard agreed in the labor contract. 

 VI. Social Insurance and Welfare Treatment 

Article 19 Party A should pay basic pension insurance, basic medical insurance, unemployment insurance, insurance against injury at work
and childbirth insurance for Party B according to the national and local laws, regulations and policies on social insurance, as for the part of social insurance paid by the individual, Party A can withhold from Party B’s salary. When both sides
cancel or terminate the contract of labor, Party A should go through formalities of transferring the file and social insurance for Party B within 5 days. 
 Article 20 When Party B is sick or injured not related to work; the medical treatment received by Party B is implemented according to relevant national and local policies and regulations. 

Article 21 Party B’s work-related injury treatment is implemented according to relevant national and local policies and regulations.

 Article 22 All treatments enjoyed by Party B during pregnancy period, childbirth period and nursing period are implemented
according to relevant national and local policies and regulations on childbirth insurance. 
 Article 23 Party A offers the
following welfare treatment to Party B: 
  
  

 VII. Labor Discipline and Rules & Regulations 

Article 24 All rules and regulations that Party A makes in accordance with the law should be publicly demonstrated to Party B.

 Article 25 Party B should strictly abide by the rules and regulations that Party A makes, accomplish the working task,
improve the vocational skills, carry out the procedures of labor safety and hygiene, and abide by the labor discipline and professional ethics. 
 Article 26 If Party B violates the labor discipline, Party A can impose corresponding administrative disposal, sanction or economic punishment until terminate the contract according to the rules and
regulations of Party A. 
 VIII. The Alteration, Canceling, Termination and Renewal of the Labor Contract 

Article 27 If this contract cannot be fulfilled because the great changes take place in the objective situations on which this contract
is based, the relevant contents of this contract can be altered upon the agreement of both sides through consultation. 

Article 28 Upon the consensus of both sides, this contract can be terminated. 

Article 29 If Party B has one of the following situations; Party A can terminate this contract. 

1. During the probation period, Party B is proved to be unqualified for the hiring conditions. The hiring conditions are:
         

 2. Party B has seriously violated the labor discipline or Party A’s rules and
regulations; 
 3. Party B seriously neglects his (her) duty or engages in fraud for selfish ends, causing great damage to Party
A’s interests; 
 4. Party B establishes the labor relation with other employer at the same time, causing serious influence
on Party B in finishing the task of Party A, or Party A proposes the issue, Party B refuses to correct it; 
 5. Party B makes
Party A execute or alter the labor contract against the true intension by means of fraud; 
 6. Party B is subject to criminal
liabilities according to the law. 
 Article 30 If one of the following situations takes place, Party A can cancel this
contract, but should inform Party B in written form 30 days in advance or pay extra salary for one month to Party B. 
 1. Party
B is sick or injured not related to work, and after the medical treatment, he or she still cannot be engaged in the original work or other work arranged by Party A. 
 2. Party B is incompetent for the work and still incompetent for the work after receiving training or changing work post; 
 3. Both sides cannot reach an agreement on altering the contract according to Article 27 of this contract. 

 Article 31 When Party A is on the verge of going bankrupt and carries out rectification
according to the law or the production and operation meet serious difficulty (difficult enterprise standard that the local government stipulates), Party A can cancel this contract after it explains the situation to the labor union or all the staff
members, and listens to the suggestion of them and reports to the labor insurance administrative department. 
 Article 32 If
Party B has one of the following situations; Party A must not terminate or cancel this contract according to Article 30 and Article 31 of this contract: 
 1. Engaged in the occupational-disease-inductive operation and no health check-up before leaving the post or the suspected occupational patient under diagnosis or under medical observation; 

2. Suffer from the occupational disease or have work-related injury, the contract of labor should not be terminated or cancelled
according to the national regulations; 
 3. Be sick or have non-work-related injury, but within fixed medical treatment period;

 4. During the pregnancy period, childbirth period or nursing period for the female employee; 

5. Work for Party A for 15 years in succession, and in less than five years, he (she) will reach the legal retirement age; 

6. Hold the post of collective consultation representative and perform the duty of a representative; 

 7. Other situations conforming to the laws and regulations. 

Article 33 If one of the following situations takes place, Party B can terminate this contract with Party A at any time and Party A
should pay corresponding labor remuneration and pay social insurance for Party B in accordance with the law. 
 1. The employer
has not provided labor protection or labor conditions according to the agreement of the labor contract; 
 2. The employer has
not paid fixed amount of labor remuneration in time; 
 3. The employer has not paid social insurance for the laborer in
accordance with the law; 
 4. The employer’s rules and regulations violate the provisions of laws and regulations, and
damage the laborer’s rights and interests; 
 5. The employer causes the labor contract to be invalid due to the situation
stipulated by Article 26 of Labor Contract Law of PRC; 
 6. Other situations under which the law and administrative
statute stipulate, the laborer can cancel the labor contract. 
 Article 34 If Party B terminates the labor contract, it should
inform Party A in written form 30 days in advance. 
 Article 35 When this contract expires, the labor contract ends at once;
both sides can renew the labor contract upon agreement through consultation. 

 Article 36 After this contract expires, if there is still working relationship between both
sides, Party A should sign supplementary or renew the labor contract with Party B in time. When both sides cannot reach an agreement on the contract term, the contract term of the supplementary or renewed labor contract cannot be shorter than one
month from the date of signature. If Party B conforms to flexible-term labor contract condition, Party A should sign flexible-term labor contract with Party B. 
 Article 37 For formulate the flexible-term labor contract, if legal terminating condition appears or the following terminating conditions agreed by both sides appear, this contract is terminated.

  
  

IX. Economic Compensation and Indemnity 
 Article 38 If Party A has not paid labor remuneration in full amount and in time to the laborer according to the agreement of the labor contract or the national regulations or does not pay overtime pay
after arranging overtime work, Party A needs to pay indemnity based on the standard of more than 50% and less than 100% of the payable amount to Party B except for paying salary in full amount within fixed time to Party B. If the salary of Party B
paid by Party A is lower than the minimum local wage standard, Party A needs to pay indemnity based on the standard of more than 10% and less than 100% of the payable amount to Party B except for supplementing the part that is lower than the minimum
local wage standard. 

 Article 39 If Party A terminates Party B’s labor contract, Party A should pay economic
compensation to Party B according to Article 47 of Labor Contract Law of PRC except under the situation stipulated by Article 29 of this contract. 
 Article 40 If the labor contract is terminated because Party B violates the regulation or the agreement of this contract and causes loss to Party A, Party B should compensate the following losses of Party
A: 
 1. The training fee and recruitment & hiring fee paid by Party A; 

2. Direct economic losses caused for the production, operation and work; 

3. Other indemnity agreed under this contract. 
 X. Liabilities for Violating the Labor Contract 
 Article 41 When one party
violates this contract, it should bear the following liabilities for breach of the contract 
  

 
 XI. Other Issues
Agreed by Both Sides 
 Article
42                                       

 XII. Settlement of Labor Disputes 

Article 43 Both parties should apply to the employing unit for mediation under the Labor Dispute Mediation Committee. If one side
concerned demands for arbitration because it is unwilling to mediate or the mediation fails, the said side should apply for the Labor Dispute Arbitration Commission for arbitration within 60 days dating from the day when the labor dispute takes
place. One side concern can also directly apply for the Labor Dispute Arbitration Commission for arbitration; if it does not agree with the arbitral award, it can bring a lawsuit to the People’s Court. 

XIII Other Issues 
 Article 44 As the appendixes of this contract, the following special agreements and rules and regulations have the same legal effect with this contract. 

Article 45 As for matters not mentioned herein, both sides can resolve through consultation; matters that are contrary to the future
relevant regulations such as the state law and administrative statute, they should be implemented according to relevant regulations. 
 Article 46 This contract is in duplicate and each side holds one copy. 
 Article
47 Party B confirms the following address as the address for sending the relevant documents concerning the labor relation management. If the following address changes, Party B should tell to Party A in written form. 

 

 Party A (seal): 
 Legal Representative (Entrusted Agent): (signature)/s/Zhiguo Wang 
 Person in charge (Entrusted
Agent): (signature) /s/Xingming Han 
 Date: May 10th, 2012 
 Party B: (signature) /s/Zhiguo Wang 
 Date: May 10th, 2012 

(This labor contract should be kept at least for two years by Party A since the day both parties cancel or end the contract)

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