Document:

EXHIBIT
10.1

     

    INDEMNIFICATION
AGREEMENT

     

    This
Indemnification Agreement (the “Agreement”) is made as of the
15th day of January 2009, by and between La-Z-Boy Incorporated, a Michigan
corporation (the “Corporation”), and [Name of
Director] (the “Indemnitee”).

     

    BACKGROUND

     

    Indemnitee
is a member of the Board of Directors and as such performs a valuable service
for the Corporation. To induce Indemnitee to continue to serve on the Board of
Directors, the Corporation has agreed to provide to Indemnitee the
indemnifications and other rights described herein.

     

    The
Corporation’s Articles of Incorporation and Bylaws require indemnification of
the officers and directors of the Corporation. The Corporation enters into this
Agreement pursuant to the Corporation’s Articles of Incorporation and Bylaws and
the provisions of the Michigan Business Corporation Act (the “Act”).

     

    This
Agreement is a supplement to and in furtherance of the Articles of Incorporation
and Bylaws of the Corporation and any resolutions adopted pursuant thereto, and
shall not be deemed a substitute therefor, nor to diminish or abrogate any
rights of Indemnitee thereunder.

     

    Indemnitee
does not regard the protection available under the Corporation’s Articles of
Incorporation, Bylaws and insurance as adequate in the present circumstances,
and may not be willing to continue to serve as a director without adequate
protection, and the Corporation desires Indemnitee to serve in such capacity.
Indemnitee is willing to serve, continue to serve and to take on additional
service for or on behalf of the Corporation on the condition that he be so
indemnified.

     

    THEREFORE,
in consideration of the foregoing, the service of Indemnitee after the date of
this Agreement and the terms and conditions set forth herein, the parties agree
as follows:

     

    TERMS OF
AGREEMENT

     

    Section 1. Indemnification
for Claims by Third Parties.

     

    The
Corporation shall, to the fullest extent authorized or permitted by the Act or
other applicable law, as the same presently exist or may hereafter be amended,
but, in the case of any such amendment, only to the extent such amendment
permits the Corporation to provide broader indemnification rights than before
such amendment, indemnify Indemnitee who was or is a party or is threatened to
be made a party to a threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, or investigative and
whether formal or informal, other than an action by or in the right of the
Corporation, by reason of the fact that Indemnitee is or was a director,
officer, employee or agent of the Corporation, or is or was serving at the
request of the Corporation as a director, officer, partner, trustee, employee,
or agent of another foreign or domestic corporation, partnership, joint venture,
trust, or other enterprise, whether for profit or not, against expenses,
including attorneys’ fees, judgments, penalties, fines, and amounts paid in
settlement actually and reasonably incurred by Indemnitee in connection with the
action, suit, or proceeding.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Section 2.
Indemnification for
Claims Brought by or in the Right of the Corporation.

     

    The
Corporation shall, to the fullest extent authorized or permitted by the Act or
other applicable law, as the same presently exist or may hereafter be amended,
but, in the case of any such amendment, only to the extent such amendment
permits the Corporation to provide broader indemnification rights than before
such amendment, indemnify Indemnitee who was or is a party to or is threatened
to be made a party to a threatened, pending, or completed action or suit by or
in the right of the Corporation to procure a judgment in its favor by reason of
the fact that Indemnitee is or was a director, officer, employee or agent of the
Corporation, or is or was serving at the request of the Corporation as a
director, officer, partner, trustee, employee, or agent of another foreign or
domestic corporation, partnership, joint venture, trust, or other enterprise,
whether for profit or not, against expenses, including actual and reasonable
attorneys’ fees, and amounts paid in settlement incurred by Indemnitee in
connection with the action or suit.

     

    Section 3. Other
Rights of Indemnification.

     

    A. The
indemnification and advancement of expenses provided in this Agreement are not
exclusive of other rights to which a person seeking indemnification or
advancement of expenses may be entitled under the Act, Articles of
Incorporation, Bylaws, or other agreement. However, the total amount of expenses
advanced or indemnified from all sources combined shall not exceed the amount of
actual expenses incurred by the person seeking indemnification or advancement of
expenses.

     

    B.
Notwithstanding any other provision of this Agreement, the Corporation hereby
indemnifies and holds Indemnitee harmless for all reasonable expenses in
connection with the preparation to serve or service as a witness in any claim in
which Indemnitee is not a party, if such actual or proposed service arose by
reason of the fact that Indemnitee is or was a director, officer, employee, or
agent of the Corporation, or is or was serving at the request of the Corporation
as a director, officer, partner, trustee, employee or agent of another
corporation, partnership, joint venture, trust or employee benefit
plan.

     

    
      
         

      

      
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    Section 4. Actions
Brought by Indemnitee.

     

    Notwithstanding
the provisions of Sections 1 and 2 of this Agreement, the Corporation shall not
be required to indemnify an Indemnitee in connection with an action, suit,
proceeding or claim (or part thereof) brought or made by such Indemnitee except
as otherwise provided herein with respect to the enforcement of this Agreement,
unless such action, suit, proceeding or claim (or part thereof) was authorized
by the Board of Directors of the Corporation.

     

    Section 5. Court
Approval.

     

    Indemnification
shall not be made under Section 2 for a claim, issue, or matter in which
Indemnitee has been adjudged liable to the Corporation unless and only to the
extent that in the final disposition of the action, suit or proceeding by the
court in which the action or suit was brought has determined upon application
that, despite the adjudication of liability but in view of all circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnification for
expenses incurred.

     

    Section 6. Partial
Indemnification.

     

    If an
Indemnitee is entitled to indemnification under either Section 1 or Section 2
for a portion of expenses including attorneys’ fees, judgments, penalties, fines
and amounts paid in settlement, but not for the total amount thereof, the
Corporation shall indemnify Indemnitee for the portion of the expenses,
judgments, penalties, fines or amounts paid in settlement for which Indemnitee
is entitled to be indemnified.

     

    Section 7. Continuation
and Termination of Indemnity.

     

    The
indemnification provided for in this Agreement continues as to Indemnitee after
Indemnitee ceases to be a director, officer, employee or agent and shall inure
to the benefit of the heirs, personal representatives and administrators of
Indemnitee. The obligations of the Corporation hereunder shall continue during
the period Indemnitee is a director, officer, employee or agent of the
Corporation, or is serving at the request of the Corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, and continue thereafter so
long as Indemnitee may be subject to any possible claim or threatened, pending
or completed action, suit or proceeding, whether civil, criminal or
investigative, by reason of the fact of his or her service in any such capacity,
but in no event for less than ten (10) years. Notwithstanding anything herein to
the contrary, in the event that Indemnitee is removed as a director of the
Corporation by the Corporation’s shareholders for cause or by court order for
cause, in either case, within the meaning and as provided in, Sections 511 and
514 of the Act, then this Agreement shall terminate immediately and be of no
further force or effect.

     

    
      
         

      

      
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    Section 8. Notification
and Defense of Claim.

     

    With
respect to any claim to be made hereunder for indemnification:

     

    A.
Indemnitee shall promptly provide written notice to the Corporation of any
action, suit or proceeding; provided, however, the failure
to do so will not relieve the Corporation from any liability arising
hereunder.

     

    B.
Indemnitee shall provide to the Corporation, upon advance request, any
documentation or information available to Indemnitee and necessary or useful to
the Corporation with respect to any such claim for indemnification.

     

    C. With
respect to any such action, suit or proceeding as to which Indemnitee notifies
the Corporation: (a) the Corporation will be entitled to participate therein at
its own expense; and (b) except as otherwise provided below, to the extent that
it may wish, the Corporation, jointly with any other indemnifying party or
otherwise, will be entitled to assume the defense thereof, with counsel
satisfactory to Indemnitee. The Corporation shall give Indemnitee written notice
of its election to assume the defense thereof within (30) days after a written
claim has been received by the Corporation, and thereafter it shall not be
liable to Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by Indemnitee in connection with the defense thereof other
than reasonable costs of investigation or as otherwise provided below. Such
assumption of the defense by the Corporation shall constitute its
acknowledgement that this Agreement, and the rights and benefits of Indemnitee
hereunder, including the presumptions contained in Section 9.B. hereof, shall
apply to such action, suit or proceeding and any related action, suit or
proceeding. After the assumption of the defense by the Corporation, Indemnitee
shall have the right to employ his or her own counsel in such action, suit or
proceeding, but the fees and expenses thereof shall be at the expense of
Indemnitee unless (i) the employment of counsel by Indemnitee has been
authorized by the Corporation, or (ii) Indemnitee shall have reasonably
concluded that there may be a conflict of interest between the Corporation and
Indemnitee in the conduct of the defense of such action.

     

    D. The
Corporation shall not be liable to indemnify Indemnitee under this Agreement for
any amounts paid in settlement of any action or claim effected without its
written consent. The Corporation shall not settle any action or claim in any
manner which would impose any penalty or limitation on Indemnitee without his or
her written consent. Neither the Corporation nor Indemnitee will unreasonably
withhold their consent to any proposed settlement.

     

    
      
         

      

      
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    Section 9. Mandatory
Indemnification; Presumption of Entitlement.

     

    A.
Indemnification by the Corporation under Section 1 of this Agreement, and for
expenses, including, without limitation, attorneys’ fees actually incurred under
Section 2 of this Agreement, shall be mandatory and paid to the full extent
provided in this Agreement, without the need or necessity of a determination
that Indemnitee has met any standard of conduct, unless, in a final disposition
of an action, suit, or proceeding concerning the matter for which
indemnification is sought by Indemnitee, Indemnitee is adjudged or found to
have:

     

    (a)
received a financial benefit to which he was not entitled;

     

    (b)
intentionally inflicted harm on the Corporation or its
shareholders;

     

    (c)
violated Section 551 of the Act; or

     

    (d)
intentionally committed a criminal act.

     

    B. In
connection with any process or proceeding, whether judicial, quasi judicial or
engaged in pursuant to Section 564a of the Act, concerning Indemnitee’s
entitlement to indemnification, it shall be presumed that Indemnitee (a) is
entitled to the indemnification provided under this Agreement, (b) has at all
times acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Corporation, and (c) has not engaged in or
been a party to any of the conduct described in Subsection A of this Section 9.
The termination of an action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, will not alter
or affect such presumption that Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Corporation or its shareholders, and, with respect to a criminal action or
proceeding, that Indemnitee’s conduct was lawful.

     

    Section 10. Advancement
of Expenses.

     

    Expenses
incurred in defending a civil or criminal action, suit, or proceeding described
in Sections 1 or 2 of this Agreement shall be paid by the Corporation in advance
of the final disposition of the action, suit, or proceeding upon receipt of an
undertaking by or on behalf of Indemnitee to repay the expenses, without
interest, if upon the final disposition of the action, suit, or proceeding it is
determined that Indemnitee is not entitled to be indemnified by the Corporation.
The undertaking shall be by unlimited general obligation of the person on whose
behalf advances are made but need not be secured. Claims made by Indemnitee
under this Section 10, shall be paid in full by the Corporation within ten (10)
days after a written claim has been received by the Corporation. With respect to
any matter for which Indemnitee seeks advancement of expenses, a written request
for advancement of expenses by Indemnitee shall be made only once for such
matter, and all invoices relating to such matter whether included with
Indemnitee’s request for advancement of expenses, or submitted to the
Corporation subsequent thereto, shall be paid in accordance with this Section
10.

     

    
      
         

      

      
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    Section 11. Enforcement;
Remedies of Indemnitee.

     

    A. If
Indemnitee makes a claim for indemnification under this Agreement, including,
without limitation, a claim for advancement of expenses, and any such claim is
not paid-in-full to Indemnitee within thirty (30) days after a written claim has
been received by the Corporation in accordance with Section 10 of this
Agreement, Indemnitee may at any time thereafter bring suit against the
Corporation to recover the unpaid amount of the claim.

     

    B.
Indemnitee shall be entitled to an adjudication in an appropriate court located
in or serving Monroe County in the State of Michigan of his entitlement to such
indemnification or advancement of expenses. Alternatively, Indemnitee, at his or
her option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the commercial rules of the American Arbitration
Association to be conducted in the State of Michigan. Indemnitee shall commence
such proceeding seeking an adjudication or an award in arbitration within 180
days following the date on which Indemnitee first has the right to commence such
proceeding pursuant to this Section 11. The Corporation shall not oppose
Indemnitee’s right to seek any such adjudication or award in
arbitration.

     

    C. In the
event that the Corporation asserts that Indemnitee is not entitled to
indemnification due to conduct described in Section 9A of this Agreement, any
judicial proceeding or arbitration commenced pursuant to this Section 11 shall
be conducted in all respects as a de novo trial or arbitration on the merits and
Indemnitee shall not be prejudiced by reason of the Corporation’s
assertion.

     

    D. The
Corporation shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 11 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Corporation
is bound by all the provisions of this Agreement.

     

    E. In the
event that Indemnitee, pursuant to this Section 11, seeks a judicial
adjudication of or an award in arbitration to enforce his rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to
recover from the Corporation, and shall be indemnified by the Corporation
against, any and all expenses actually and reasonably incurred in such judicial
adjudication or arbitration, but only if Indemnitee prevails therein. If it
shall be determined in said judicial adjudication or arbitration that Indemnitee
is entitled to receive part but not all of the indemnification or advancement of
expenses sought, the expenses incurred by Indemnitee in connection with such
judicial adjudication or arbitration shall be appropriately
prorated.

     

    
      
         

      

      
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    Section 12. Miscellaneous
Provisions.

     

    A. Benefit and
Assignment. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors, assigns, heirs and legal
representatives. No party may assign any rights or duties under this Agreement
without the prior written consent of the other party.

     

    B. Entire Agreement and
Amendment. Subject to the provisions of Section 3 hereof, this writing
contains the entire agreement between the parties with respect to the matters
described herein and is a complete statement as to the terms thereof and
supersedes all previous agreements. This Agreement may not be altered or
modified or terminated except by a writing signed by the parties
hereto.

     

    C. Severability. Each
and every paragraph, sentence, term and provision of this Agreement shall be
considered severable in that, in the event that a court finds any paragraph,
sentence, term or provision to be invalid or unenforceable, the validity and
enforceability, operation, or effect of the remaining paragraphs, sentences,
terms or provisions shall not be affected, and this Agreement shall be construed
in all respects as if such invalid or unenforceable matter had been omitted. In
any event, notwithstanding any court finding of invalidity or unenforceability,
Indemnitee shall be entitled to the indemnifications and other rights provided
in Sections 561 to 569 of the Act, the Corporation’s Articles of Incorporation,
its Bylaws and otherwise.

     

    D. Waiver. The failure
of either party at any time to require performance by the other party of any
provision of this Agreement shall not be deemed a continuing waiver of that
provision or a waiver of any other provision of this Agreement and shall in no
way affect the full right to require such performance from the other party at
any time thereafter.

     

    E. Notices. Notices
required under this Agreement shall be given in writing and shall be deemed
given when delivered in person or, if sent by certified or registered mail,
return receipt requested, postage prepaid, at the time of the certification or
registration thereof.

     

    F. Definitions. For
purposes of this Agreement:

     

    (a)
“other enterprises”
shall include employee benefit plans.

     

    (b)
“fines” shall include
any excise taxes assessed on a person with respect to an employee benefit
plan.

     

    (c)
“serving at the request of the
Corporation” shall include any service as a director, officer, employee,
or agent of the Corporation which imposes duties on, or involves services by,
the director, officer, employee or agent with respect to an employee benefit
plan, its participants or beneficiaries; and a person who acted in good faith
and in a manner he or she reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan shall be considered
to have acted in a manner “not opposed to the best interests of the corporation
or its shareholders” as referred to in Sections 561 and 562 of the
Act.

     

    
      
      

    

    
      
         

      

      
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    (d)
“final disposition of the
action, suit, or proceeding” shall mean the entry of an order or judgment
disposing of the matter from which (i) there is no right of appeal, or (ii) the
time for an appeal has expired.

     

    G. Application to a Resulting
or Surviving Corporation or Constituent Corporation. The definition for
“corporation” found in Section 569 of the Act, as the same exists or may
hereafter be amended is, and shall be, specifically excluded from application to
this Agreement. The indemnification and other obligations of the Corporation set
forth in this Agreement shall be binding upon and assumed by any resulting or
surviving corporation after any acquisition, disposition, merger or
consolidation with the Corporation. Notwithstanding anything to the contrary
contained herein or in Section 569 of the Act, no person shall be entitled
to the indemnification and other rights set forth in this Agreement for acting
as a director or officer of another corporation prior to such other corporation
entering into a merger or consolidation with the corporation.

     

    H. Non-Exclusivity; Survival of
Rights; Insurance.

     

    (a) The
rights of indemnification and advancement of expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee
may at any time be entitled under applicable law, the Corporation’s Articles of
Incorporation, or Bylaws, or any agreement, vote of stockholders, resolution of
directors or otherwise, of the Corporation. No amendment, alteration or repeal
of this Agreement or of any provision hereof shall limit or restrict any right
of Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee prior to such amendment, alteration or repeal. To the extent
that a change in the Act, whether by statute or judicial decision, permits
greater indemnification than would be afforded currently under the Corporation’s
Articles of Incorporation, or Bylaws and this Agreement, it is the intent of the
parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits so afforded by such change. No right or remedy herein conferred is
intended to be exclusive of any other right or remedy, and every other right and
remedy shall be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other right or
remedy.

     

    
      
      

    

    
      
         

      

      
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    (b)
Regardless of whether or not the Corporation would have the power to indemnify
such person against such liability under the pertinent provisions of the Act, to
the extent that the Corporation maintains, purchases, pays for, or maintains an
insurance policy or policies providing liability insurance for directors,
officers, employees, or agents or fiduciaries of the Corporation, Indemnitee
shall be covered by such policy or policies in accordance with its or their
terms to the maximum extent of the coverage available for any director, officer,
employee, agent or fiduciary under such policy or policies, both during the
period Indemnitee serves as an officer, director, employee or agent of the
Corporation and thereafter for the maximum period contemplated in Section 7 of
this Agreement, and if, at the time of the receipt of a notice of a claim
pursuant to the terms hereof, the Corporation has director and officer liability
insurance in effect, the Corporation shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Corporation shall
thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

     

    I. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.

     

    J. Governing Law.
Michigan law shall govern the construction and enforceability of this
Agreement.

     

    (Signatures
on following page)

     

    
      
      

    

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of
the day and year first written above.

     

    CORPORATION:

     

    La-Z-Boy
Incorporated

     

     a
Michigan corporation

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        By:

                                      	 
      
	 	 
	
                                        Its:

                                      	 
      
	
                                        La-Z-Boy
      Incorporated

                                      
	
                                        1284
      N. Telegraph

                                      
	
                                        Monroe,
      MI 48162

                                      
	 
      
	
                                        INDEMNITEE:

                                      
	 
      
	 
      
	
                                        [name]

                                      
	 
	
                                        Address
      for notices:

                                      
	 
      
	 
      
	 
      
	 
	 
	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        - 10
-Unassociated Document

    Exhibit
10.1

    SECURITIES PURCHASE
AGREEMENT

    

    THIS PURCHASE AGREEMENT (“Agreement”)
is made by and between Axion International Holdings, Inc., a Colorado
corporation (the “Company”),
and the Purchaser set forth on the signature page affixed hereto (the “Purchaser”).

     

    Recitals

    

    A.           The
Company is offering (the “Offering”)
up to 2,500,000 shares of the Company’s Common Stock, without par value (the
“Common
Stock”), at a price per share of Eighty-eight cents ($.88) per
share;

     

    B.           The
Offering is made on a best effort basis with no minimum number of shares
required to be sold, to Accredited Investors (as defined below) in reliance upon
the exemption from securities registration afforded by Section 4(2) under the
Securities Act of 1933, as amended (“1933
Act”), and the provisions of Regulation D (“Regulation
D”), as promulgated by the U.S. Securities and Exchange Commission (the
“SEC”)
under the 1933 Act; and

     

    C.           By
executing this Agreement, the Purchaser has agreed to purchase, and the Company
upon counter-execution of this Agreement will agree to sell and issue to the
Purchaser, upon the terms and subject to the conditions stated in this
Agreement, such number of shares of the Company’s Common Stock (the “Shares”)
as set forth on the signature page affixed hereto.

     

    NOW, THEREFORE, In consideration of the
mutual promises made herein and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

     

    1. Definitions.  In
addition to those terms defined above and elsewhere in this Agreement, for the
purposes of this Agreement, the following terms shall have the meanings here set
forth:

     

     “Accredited Investor”
shall have the meaning assigned to such term in Rule 501(a) of Regulation D, a
copy of which is attached hereto as Exhibit
A.

     

     “Affiliate” means,
with respect to any Person, any other Person which directly or indirectly
controls, is controlled by, or is under common control with, such Person, where
“control” means
the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

     

     “Agreements” means
this Agreement and any other agreement entered into, now or in the future, by
the Company in connection with this Agreement or any of the other
Agreements.

     

    1.3.  “Closing” means the
consummation of the purchase and sale of the  Shares.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.4.
“Material Adverse
Effect” means a material adverse effect on the (i) condition (financial
or otherwise), business, assets or results of operations of the Company; (ii)
ability of the Company to perform any of its material obligations under the
terms of the Agreements; or (iii) material rights and remedies of a Purchaser
under the terms of the Agreements.

    

    1.5. “Person” means an
individual, corporation, partnership, limited liability company, trust, business
trust, association, joint stock company, joint venture, pool, syndicate, sole
proprietorship, unincorporated organization, governmental authority or any other
form of entity not specifically listed herein.

    

    1.6.  “1934 Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    2.           Purchase and Sale of
Shares. Subject to the terms and conditions of this Agreement and on the
basis of the representations and warranties made herein, the Purchaser hereby
agrees to purchase, and the Company, upon counter-execution of this Agreement,
agrees to sell and issue to the Purchaser, the number of Shares set forth on the
signature page attached hereto for a purchase price of $.88 per Share (the
“Purchase
Price”). The Purchase Price shall be payable by wire transfer or as
otherwise agreed to by the Company and the Purchaser.

     

    3.           Subscription
Procedure.  In order to subscribe for the Shares, the Purchaser
shall deliver to the Company (a) the signature page to this Agreement executed
by the Purchaser with all blanks properly completed, indicating the number of
Shares subscribed for, and (b) the aggregate Purchase Price for such
Shares.  On delivery of the executed signature page by the Purchaser,
the Purchaser will become bound by the terms of the Agreement, and unless
otherwise required by applicable securities laws, the Agreement will not be
revocable by the Purchaser.  Thereafter if the Company elects, in its
sole and absolute discretion, to accept the Purchaser’s subscription for such
shares, the Company shall execute this Agreement and deliver its signature page,
together with a certificate for the number of shares being purchased by the
Purchaser.  The Closing shall be deemed to have occurred upon the
delivery of such Shares by the Company to the Purchaser.

     

    4.           Representations and
Warranties of the Company.  Except as disclosed in the
Company’s SEC Filings (as defined below), the Company hereby represents and
warrants to the Purchases that:

    

    4.1.           Organization, Good Standing
and Qualification. The Company is a corporation validly existing and in
good standing under the laws of Colorado and has all requisite corporate power
and authority to carry on its business as now conducted and own its
properties.  The Company is duly qualified to do business as a foreign
corporation and is in good standing in each jurisdiction in which the conduct of
its business or its ownership or leasing of property makes such qualification or
licensing necessary unless the failure to so qualify would not result in a
Material Adverse Effect.

     

    4.2.           Authorization.  The
Company has full corporate power and authority and has taken all requisite
action on the part of the Company necessary for (i) the authorization, execution
and delivery of the Agreements, (ii) authorization of the performance of all
obligations of the Company hereunder and thereunder, and (iii) the
authorization, issuance (or reservation for issuance) and delivery of the
Shares. The Agreements constitute the legal, valid and binding obligations of
the Company, enforceable against the Company in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability, relating to or affecting
creditors’ rights generally and general principles of equity that restrict the
availability of equitable or legal remedies.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.3.           Valid
Issuance.  As of the Closing, the Company has reserved a
sufficient number of shares of Common Stock for the issuance of the Shares. The
Shares are duly authorized and, when issued in accordance herewith, will be
validly issued, fully paid, non-assessable and free and clear of all
encumbrances and restrictions imposed by or through the Company, except for
restrictions on transfer imposed by applicable securities laws.

     

    4.4.           Consents.  The
execution, delivery and performance by the Company of the Agreements and,
subject to the truth and accuracy of the representations made by the Purchaser
in this Agreement, the offer, issuance and sale of the Shares to the Purchaser,
require no consent of, action by or in respect of, or filing with, any Person,
agency, or official and filings that have been made pursuant to applicable state
securities laws and post-sale filings pursuant to applicable state and federal
securities laws.

     

    4.5.           SEC Filings;
Business.  The Company has
filed all reports, schedules, forms, statements and other documents required to
be filed by it with the SEC pursuant to the reporting requirements of the 1934
Act (all of the foregoing filed prior to or on the date hereof and all
registration statements and exhibits included therein and financial statements
and schedules thereto and documents incorporated by reference therein being
hereinafter referred to as the "SEC
Filings").  As of the date of filing of such SEC Filings, each
such SEC Filing, as it may have been subsequently amended by filings made by the
Company with the SEC prior to the date hereof, complied in all material respects
with the requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to such SEC Filing. None of the SEC Filings,
as of the date filed and as they may have been subsequently amended by filings
made by the Company with the SEC prior to the date hereof, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. As of
their respective dates, the financial statements of the Company included in the
SEC Filings complied as to form in all material respects with applicable
accounting requirements and published rules and regulations of the SEC with
respect thereto.  Such financial statements have been prepared in
accordance with generally accepted accounting principles, consistently applied,
during the periods involved (except (i) as may be otherwise indicated in
such financial statements or the notes thereto, or (ii) in the case of
unaudited interim statements, to the extent they may exclude footnotes or may be
condensed or summary statements) and fairly present in all material respects the
financial position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments).

     

    4.6.           No Conflict, Breach,
Violation or Default; Compliance with Law. The execution, delivery and
performance of the Agreements by the Company and the issuance and sale of the
Shares will not conflict with or result in a breach or violation of any of the
terms and provisions of, constitute a default under, require any consent,
approval or filing under, result in or require the creation or imposition of any
lien or encumbrance upon or with respect to the Company’s property under (i) the
Company’s Articles of Incorporation (including any certificates of designation)
or the Company’s Bylaws, both as in effect on the date hereof,  (ii)
any statute, rule, regulation or order of any governmental agency or body or any
court, domestic or foreign, having jurisdiction over the Company or any of its
properties; or (iii) any contract, loan or instrument by which the company or
its property is bound.  The Company (i) is not to its knowledge in
violation of any statute, rule or regulation applicable to the Company or its
assets or its activities, (ii) is not in violation of any judgment, order or
decree applicable to the Company or its assets; and (iii) has not received
notice from any Person of any claim, investigation or inquiry, that, if
adversely determined, would render the preceding sentence untrue or incomplete
and the Company is aware of no facts or circumstances which could give rise to
such a claim, investigation or inquiry.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.7.           Brokers and Finders.
The Purchaser shall have no liability or responsibility for the payment of any
commission or finder’s fee to any third party in connection with or resulting
from this agreement or the transactions contemplated by this Agreement by reason
of any agreement of or action taken by the Company.

     

    5.           Representations and
Warranties of the Purchaser.  The Purchaser hereby represents
and warrants to the Company that:

    

    5.1           Organization, Good Standing,
Authorization.  If Purchaser is an entity, it is a corporation,
limited liability company, trust or partnership or other similar entity duly
organized, validly existing and in good standing under the laws of its
jurisdiction.  Purchaser has full power and authority (corporate or
otherwise) to execute, deliver and enter into the Agreements.  The
execution, delivery and performance by the Purchaser of the Agreements have been
duly authorized and each of the Agreements constitutes the valid and legally
binding obligation of the Purchaser, enforceable against the Purchaser in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability,
relating to or affecting creditors’ rights generally and general principles of
equity that restrict the availability of equitable or legal
remedies.

     

    5.2           Purchase Entirely for Own
Account.  The Shares to be received by the Purchaser hereunder
will be acquired for the Purchaser’s own account, not as nominee or agent, and
not with a view to the resale or distribution of any part thereof and the
Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the same.  The Purchaser is not a registered
broker dealer or an entity engaged in the business of being a broker
dealer.

     

    5.3           Investment
Experience.  The Purchaser acknowledges that it can bear the
economic risk and complete loss of its investment in the Shares and has such
knowledge and experience in financial or business matters and in private
placement transactions of companies similar to the Company so that it is capable
of evaluating the merits and risks of the purchase contemplated
hereby.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.4           Disclosure of
Information.  The Purchaser has had an opportunity to receive
documents related to the Company and to ask questions of and receive answers
from the Company regarding the Company, its business and the terms and
conditions of the offering of the Shares and has received and read the SEC
Filings filed via EDGAR.  Neither such inquiries nor any other due
diligence investigation conducted by the Purchaser shall modify, amend or affect
the Purchaser’s right to rely on the Company’s representations and warranties
contained in this Agreement or made pursuant to this Agreement.

     

    5.5           Restricted
Securities.  The Purchaser understands that the Shares are
characterized as “restricted securities” under the U.S. federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable state laws
and regulations such securities may be resold without registration under the
1933 Act only in certain limited circumstances.

     

    5.6           Legends.  It
is understood that the certificates evidencing the Shares may bear one or all of
the following legends or legends substantially similar thereto:

     

    1. (a) “The shares represented by this
certificate may not be transferred without (i) the opinion of counsel reasonably
satisfactory to the corporation that such transfer may lawfully be made without
registration under the Securities Act of 1933 or qualification under applicable
state securities laws; or (ii) such registration or qualification.”

    2. 

    3. (b)  If required by the
authorities of any state in connection with the issuance of sale of the Shares,
the legend required by such state authority.

    

    5.7           Accredited
Investor.  The Purchaser is an Accredited
Investor.

     

    5.8.           No General
Solicitation.  The Purchaser did not learn of the investment in
the Shares as a result of any public advertising or general
solicitation.

    

    6.           Miscellaneous.

     

    6.1           Successors and
Assigns.  This Agreement may not be assigned by the
Company.  The Purchaser may assign its rights and delegate its duties
hereunder in whole or in part to any Person (who is not a competitor or vendor
of the Company) to which the Purchaser has transferred or assigned all or part
of its Shares, provided in each case that such transferee or assignee
acknowledges in writing to the Company that the representations and warranties
contained herein shall apply to such transferee or assignee. The terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the respective permitted successors and assigns of the
parties.  Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under
or by reason of this Agreement, except as expressly provided in this
Agreement.

     

    6.2           Counterparts. This
Agreement may be executed in two or more counterparts, by original or facsimile
signature, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.3     Titles and
Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

     

    6.4     Notices.  Unless
otherwise provided, any notice required or permitted under this Agreement shall
be given in writing and shall be deemed effectively given only upon delivery to
each party to be notified by (i) personal delivery, (ii) facsimile, with
electronic confirmation of transmittal, (iii) certified mail, return receipt
requested, or (iv) an internationally recognized overnight air courier,
addressed to the party to be notified at the address as follows, or at such
other address as such party may designate by ten days’ advance written notice to
the other party:

     

    If to the
Company:

    

    c/o Axion
International, Inc.

    665
Martinsville Road

    Basking
Ridge, New Jersey 07920

    Facsimile:
(908) 542-0999

    Att:  James
Kerstein, CEO

    

    With a
copy to:

    Silverman
Sclar Shin & Byrne PLLC

    381 Park
Avenue South

    Facsimile:
(212) 779-8858

    Att:  John
Shin, Esq.

    

    If to the
Purchaser, to the addresses set forth on the

    signature
page hereto.

    

    6.5   Amendments and
Waivers.  Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Purchaser.

     

    6.6     Severability.  If
one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement and the
balance of this Agreement shall be interpreted as if such provision were so
excluded and shall be enforceable in accordance with its terms.

     

    6.7     Entire
Agreement.  This Agreement, including the exhibits and
schedules hereto, and the other documents contemplated hereby constitute the
entire agreement among the parties hereof with respect to the subject matter
hereof and thereof and supersede all prior agreements and understandings, both
oral and written, between the parties with respect to the subject matter hereof
and thereof.

     

    6.8    Further
Assurances.  The parties shall execute and deliver all such
further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to
evidence the fulfillment of the agreements herein contained.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.9    Applicable
Law.  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to principles
of conflicts of laws.

     

    6.10      No Strict
Construction. The parties hereto have
participated jointly in the negotiation and drafting of this Agreement and the
other Agreements.  In the event an ambiguity or question of intent or
interpretation arises, this Agreement and the other Agreements shall be
construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement or any of the other
Agreements.

    

    

    [Signature
Pages Follow]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties have executed this Agreement as of the 9th day of
January, 2009.

    
      
        	 	 
	
                The
      Company:

              	
                AXION
      INTERNATIONAL HOLDINGS, INC.

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:
      /s/ Marc
      Green

              
	 
      	
                Name:
      Marc Green

              
	 
      	
                Title:
      President

              
	 
      	 
      
	 
      	
                Purchaser

              
	 
      	 
      
	 
      	
                Insight
      Partners, LLC

              
	 
      	 
      
	 
      	
                /s/ Mark
      Goldstein

              
	 
      	
                By:  Mark
      Goldstein

              
	 
      	 
      
	 
      	_____________________
	 
      	
                Title:  Managing
      Partner

              

      

    

     

    
      
        	
                Number
      of Shares to be purchased at the Closing:

              	
                1,562,500

              	 
      
	
                Purchase
      Price (number of Shares x $.88):

              	
                $1,375,000.00

              	 
      
	 
      	 
      	 
      
	
                Social
      Security/Tax Identification Number:

              	 
      	      
      
	 
      	 
      	 
      
	
                Principal
      jurisdiction in which business is conducted:

              	 
      	
                Maryland

              
	 
      	 
      	 
      
	
                If
      Purchaser is an entity, form of entity:

              	 
      	
                Limited
      Liability Company

              
	 
      	 
      	 
      
	
                State
      under which entity is formed:

              	 
      	
                Maryland

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                Address:

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                Facsimile:
      _____________________

              
	 
      	 
      	 
      
	 
      	 
      	
                with
      a copy to:

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