Document:

Letter Agreement

 

Exhibit 10.1

PURADYN FILTER TECHNOLOGIES INCOPRORATED

2017 HIGH RIDGE ROAD

BOYNTON BEACH, FLORIDA  33426

May 18, 2018

Mr. Edward S. Vittoria

___________________

___________________

Re:

Puradyn Filter Technologies Incorporated, a Delaware corporation (the “Corporation”)

Dear Ed:

This letter agreement will set forth the terms and conditions we have agreed to with respect to your employment by the Corporation:

1.

You have agreed to accept employment with the Corporation in accordance with this letter agreement for an initial term ending May 31, 2019.  You have agreed to devote substantially all of your business time and attention to the business and operations of the Corporation.  The initial term of your employment may be extended by mutual agreement of you and the Corporation’s Board of Directors upon terms and conditions to be mutually agreed upon by you and the Corporation’s Board of Directors prior to the expiration of such initial term;

2.

You will be appointed the Corporation’s Chief Executive Officer.  As Chief Executive Officer, you shall have general executive operating supervision over the property, business and affairs of the Corporation, subject to the guidelines and direction of the Board of Directors of the Corporation;

3.

Upon such appointment, you will also be appointed to the Board of Directors, to serve in accordance with applicable Delaware law.  So long as you are serving as the Corporation’s Chief Executive Officer, the Board of Directors shall nominate you for election to the Board of Directors; 

4.

The Corporation has agreed to pay you the following compensation:

a.

an annual base salary of $200,000, payable in accordance with our normal payroll practices;

b.

an annual cash bonus to be awarded by the Corporation’s Board of Directors in January in a minimum amount of $50,000; and

c.

a grant of options to purchase 6,500,000 shares of the Corporation’s common stock, vesting one-third in arrears, at an exercise price equal to fair market value on the date of grant pursuant to the terms an conditions of the Corporation’s 2018 Equity Compensation Plan.

 

5.

You will be entitled to participate in all benefit programs of the Corporation currently existing or hereafter made available to executive and/or salaried employees including, but not limited to, stock option plans, pension and other retirement plans, group life insurance, hospitalization, surgical and major medical coverage, sick leave, salary continuation, vacation and holidays, long-term disability, and other fringe benefits.  You will further be entitled to such amount of annual vacation consistent with your position and length of service to the Corporation, which such amount shall not be less than 20 days annually.  Finally, you will be entitled to receive proper reimbursement for all reasonable, out of-pocket expenses incurred by you (in accordance with the policies and procedures established by the Corporation) in performing services hereunder, provided you properly accounts therefor.

If the foregoing accurately sets forth the terms and conditions we have agreed to, please countersign this letter agreement in the space provided below.

		
	 
	Sincerely,

	 
	 

	 
	/s/ Joseph V. Vittoria

	 
	Joseph V. Vittoria

	 
	Chief Executive Officer and Chairman of the Board

The foregoing is agreed to this 18th day May, 2018.

/s/ Edward S. Vittoria

Edward S. VittoriaAmerican Lorain CORP: Exhibit 10.1 - Filed by newsfilecorp.com

SECURITIES PURCHASE AGREEMENT 

This Securities Purchase Agreement (this “Agreement”) is
dated as of December 28, 2017, between American Lorain Corporation, a Nevada
corporation (the “Company”), and Beili Zhu (Chinese ID Number:
310104197505081623) and Yi Li (Chinese ID Number:120101197711272020),
(collectively, the “Purchaser”). 

WHEREAS, subject to the terms and conditions set forth in this
Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as
amended (the “Securities Act”), the Company desires to issue and sell to
the Purchaser, and the Purchaser desires to purchase from the Company,
securities of the Company as more fully described in this Agreement. 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained
in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Purchaser agree
as follows: 

ARTICLE I. 
DEFINITIONS 

1.1     Definitions. In addition to the
terms defined elsewhere in this Agreement, for all purposes of this Agreement,
the following terms have the meanings set forth in this Section 1.1: 

“Acquiring Person” shall have the meaning ascribed to
such term in Section 4.5. 

“Action” shall have the meaning ascribed to such term in
Section 3.1(j) . 

“Affiliate” means any Person that, directly or
indirectly through one or more intermediaries, controls or is controlled by or
is under common control with a Person as such terms are used in and construed
under Rule 405 under the Securities Act. 

“Board of Directors” means the board of directors of the
Company. 

“Business Day” means any day except any Saturday, any
Sunday, any day which is a federal legal holiday in the United States or any day
on which banking institutions in the State of New York are authorized or
required by law or other governmental action to close. 

“Closing” shall have the meaning ascribed to such term
in Section 2.1(a) . 

“Commission” means the United States Securities and
Exchange Commission. 

“Common Stock” means the common stock of the Company,
par value $0.001 per share, and any other class of securities into which such
securities may hereafter be reclassified or changed. 

1

“Common Stock Equivalents” means any securities of the
Company or the Subsidiaries which would entitle the holder thereof to acquire at
any time Common Stock, including, without limitation, any debt, preferred stock,
right, option, warrant or other instrument that is at any time convertible into
or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock. 

“Disclosure Schedules” means the Disclosure Schedules of
the Company delivered concurrently herewith. 

“Evaluation Date” shall have the meaning ascribed to
such term in Section 3.1(o) . 

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

“Exempt Issuance” means the issuance of (a) shares of
Common Stock or options to employees, officers or directors of, or consultants,
advisors or agents to, the Company pursuant to any stock or option plan duly
adopted for such purpose, by a majority of the non-employee members of the Board
of Directors or a majority of the members of a committee of non-employee
directors established for such purpose, (b) securities upon the exercise or
exchange of or conversion of any Securities issued hereunder and/or other
securities exercisable or exchangeable for or convertible into shares of Common
Stock issued and outstanding on the date of this Agreement, provided that such
securities have not been amended since the date of this Agreement to increase
the number of such securities or to decrease the exercise price, exchange price
or conversion price of such securities except in accordance with the relevant
agreements governing same, (c) shares of Common Stock issued to banks, equipment
lessors or other financial institutions, or to real property lessors, pursuant
to a debt financing, equipment leasing or real property leasing transaction
approved by the Board of Directors, (d) shares of Common Stock issued to
suppliers or third party service providers in connection with the provision of
goods or services pursuant to transactions approved by the Board of Directors
and (e) securities issued pursuant to licensing, joint venture, acquisitions or
other strategic transactions approved by a majority of the disinterested
directors of the Company, provided that any such issuance shall only be to a
Person (or to the equity holders of a Person) which is, itself or through its
subsidiaries, an operating company or an owner of an asset in a business
synergistic with the business of the Company and shall provide to the Company
additional benefits in addition to the investment of funds, but shall not
include a transaction in which the Company is issuing securities primarily for
the purpose of raising capital or to an entity whose primary business is
investing in securities.
“Closing Date” means the Trading Day on
which all of the Transaction Documents have been executed and delivered by the
applicable parties thereto pursuant to Section 2.2(a), and all conditions
precedent to (i) the Purchasers’ obligations to pay the Subscription Amount as
to the Closing and (ii) the Company’s obligations to deliver the Securities as
to the Closing, in each case, have been satisfied or waived. 

“Closing Shares” shall have the meaning ascribed to such
term in Section 2.1(a) . 

2

“Closing Subscription Amount” means $1,275,000, in
United States dollars and in immediately available funds. 

“GAAP” shall have the meaning ascribed to such term in
Section 3.1(h) . 

“Liens” means a material lien, charge, pledge, security
interest, encumbrance, right of first refusal, preemptive right or other
restriction. 

“Material Adverse Effect” shall have the meaning
assigned to such term in Section 3.1(b) . 

“Per Share Purchase Price” equals $0.17, subject to
adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement. 

“Person” means an individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture,
limited liability company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind. 

“Proceeding” means an action, claim, suit, investigation
or proceeding (including, without limitation, an informal investigation or
partial proceeding, such as a deposition), whether commenced or threatened. 

“Required Approvals” shall have the meaning ascribed to
such term in Section 3.1(e) . 

“Rule 144” means Rule 144 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same purpose and effect as such Rule. 

“SEC Reports” shall have the meaning ascribed to such
term in Section 3.1(h) . 

“Securities Act” means the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder. 

“Short Sales” means all “short sales” as defined in Rule
200 of Regulation SHO under the Exchange Act (but shall not be deemed to include
the location and/or reservation of borrowable shares of Common Stock).

“Subscription Amount” means the Closing Subscription
Amount. 

“Subsidiary” means any direct or indirect subsidiary of
the Company formed or acquired. 

3

“Trading Day” means a day on which the principal Trading
Market is open for trading. 

“Trading Market” means any of the following markets or
exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE MKT, the NYSE American, the Nasdaq Capital Market, the
Nasdaq Global Market, the Nasdaq Global Select Market or the OTC Bulletin Board
(or any successors to any of the foregoing). 

“Transaction Documents” means this Agreement, and any
other documents or agreements executed by the Company and/or the Purchaser in
connection with the transactions contemplated hereunder.

“Transfer Agent” means Interwest Transfer Company Inc.,
the current transfer agent of the Company, with a mailing address of 1981 Murray
Holladay Road, Suite 100, SLC UT, 84117, and any successor transfer agent of the
Company. 

ARTICLE II. 
PURCHASE AND SALE 

2.1     Closing. On the Closing
Date, upon the terms and subject to the conditions set forth herein, the Company
agrees to sell, and the Purchasers agree to purchase, 7,500,000 shares of Common
Stock (the “Closing Shares”) . Beili Zhu and Yi Li each shall agree to
purchase 3,750,000 shares of Common Stock, respectively. The Purchaser shall
deliver to the Company, via wire transfer or a certified check, immediately
available funds equal to the Closing Subscription Amount and the Company shall
deliver to the Purchaser the Closing Shares within three Trading Days of the
Closing Date, and the Company and the Purchaser shall deliver the other items
set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the
covenants and conditions set forth in Sections 2.2 and 2.3, but no later than
three Trading Days subsequent to the Closing date, the Closing shall occur at
the location as the parties shall mutually agree or remotely by exchange of
Closing documents. 

2.2     Deliveries. 

(a)     On or prior to each Closing, the
Company shall deliver or cause to be delivered to the Purchaser the following:

(i)     as to each Closing, a copy of the
irrevocable instructions to the Transfer Agent instructing the Transfer Agent to
deliver a certificate evidencing the Shares, registered in the name of the
Purchaser; 

(b)     On or prior to each Closing, the
Purchaser shall deliver or cause to be delivered to the Company, as to the
Closing, the Closing Subscription Amount, by wire transfer of immediately
available funds to the account specified in writing by the Company; 

4

2.3     Closing Conditions. 

(a)     The obligations of the Company
hereunder in connection with each Closing are subject to the following
conditions being met: 

(i)     all obligations, covenants and
agreements of the Purchaser required to be performed at or prior to the
applicable Closing shall have been performed; and 

(ii)     as to the Closing, the Company and
the Purchaser shall have agreed on the use of proceeds from the transactions
contemplated hereunder; and 

(iii)     the delivery by the Purchaser of
the items set forth in Section 2.2(b) of this Agreement.

(b)     The obligations of the Purchaser
hereunder in connection with each applicable Closing are subject to the
following conditions being met: 

(i)     all obligations, covenants and
agreements of the Company required to be performed at or prior to the applicable
Closing shall have been performed; 

(ii)     the delivery by the Company of the
items set forth in Section 2.2(a) of this Agreement; 

(iii)     the Company is listed as a public
company on, and the shares of Common Stock are tradable over, the NYSE American;

(iv)     as to the Closing, the Company and
the Purchaser shall have agreed on the use of proceeds from the transactions
contemplated hereunder; and 

(v)     On the date of the applicable
Closing, trading in the Common Stock shall not have been suspended by the
Commission or the Company’s principal Trading Market, and, on the date of the
applicable Closing, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have
been established on securities whose trades are reported by such service, or on
any Trading Market, nor shall a banking moratorium have been declared either by
the United States or New York State authorities nor shall there have occurred
any material outbreak or escalation of hostilities or other national or
international calamity of such magnitude in its effect on, or any material
adverse change in, any financial market which, in each case, in the reasonable
judgment of the Purchaser, makes it impracticable or inadvisable to purchase the
Securities at the applicable Closing. 

5

ARTICLE III.
REPRESENTATIONS AND WARRANTIES 

3.1     Representations and Warranties of
the Company. Except as set forth in the Disclosure Schedules and the SEC
Reports, which Disclosure Schedules shall be deemed a part hereof and shall
qualify any representation or otherwise made herein to the extent of the
disclosure contained in the corresponding section of the Disclosure Schedules,
the Company hereby makes the following representations and warranties to the
Purchaser: 

(a)     Subsidiaries. All of the direct
and indirect subsidiaries of the Company are set forth in the SEC Reports. The
Company owns, directly or indirectly, all of the capital stock or other equity
interests of each Subsidiary free and clear of any Liens, and all of the issued
and outstanding shares of capital stock of each Subsidiary are validly issued
and are fully paid and non-assessable. If the Company has no subsidiaries, all
other references to the Subsidiaries or any of them in the Transaction Documents
shall be disregarded. 

(b)     Organization and Qualification.
The Company and each of the Subsidiaries is an entity duly incorporated or
otherwise organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, with the requisite power and
authority to own and use its properties and assets and to carry on its business
as currently conducted. Neither the Company nor any Subsidiary is in violation
nor default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents. Each of
the Company and the Subsidiaries is duly qualified to conduct business and is in
good standing as a foreign corporation or other entity in each jurisdiction in
which the nature of the business conducted or property owned by it makes such
qualification necessary, except where the failure to be so qualified or in good
standing, as the case may be, could not have or reasonably be expected to result
in: (i) a material adverse effect on the legality, validity or enforceability of
any Transaction Document, (ii) a material adverse effect on the results of
operations, assets, or business, of the Company and the Subsidiaries, taken as a
whole, or (iii) a material adverse effect on the Company’s ability to perform in
any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no
Proceeding has been instituted in any such jurisdiction revoking, limiting or
curtailing or seeking to revoke, limit or curtail such power and authority or
qualification. 

(c)     Authorization; Enforcement. The
Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by this Agreement and each of the other
Transaction Documents and otherwise to carry out its obligations hereunder and
thereunder. The execution and delivery of this Agreement and each of the other
Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary action on the part of the Company and no further action is required by
the Company, the Board of Directors or the Company’s stockholders in connection
herewith or therewith other than in connection with the Required Approvals. This
Agreement and each other Transaction Document to which it is a party has been
(or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms
hereof and thereof, will constitute the valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except (i)
as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law. 

6

(d)     No Conflicts. The execution,
  delivery and performance by the Company of this Agreement and the other
  Transaction Documents to which it is a party, the issuance and sale of the
  Securities and the consummation by it of the transactions contemplated hereby
  and thereby do not and will not (i) conflict with or violate any provision of
  the Company’s or any Subsidiary’s certificate or articles of incorporation,
  bylaws or other organizational or charter documents, or (ii) conflict with, or
  constitute a default (or an event that with notice or lapse of time or both
  would become a default) under, result in the creation of any Lien upon any of
  the properties or assets of the Company or any Subsidiary, or give to others any
  rights of termination, amendment, acceleration or cancellation (with or without
  notice, lapse of time or both) of, any agreement, credit facility, debt or other
  instrument (evidencing a Company or Subsidiary debt or otherwise) to which the
  Company or any Subsidiary is a party or by which any property or asset of the
  Company or any Subsidiary is bound or affected, or (iii) subject to the Required
  Approvals, conflict with or result in a violation of any law, rule, regulation,
  order, judgment, injunction, decree or other restriction of any court or
  governmental authority to which the Company or a Subsidiary is subject
  (including federal and state securities laws and regulations), or by which any
  property or asset of the Company or a Subsidiary is bound or affected; except in
  the case of each of clauses (ii) and (iii), such as could not have or would not
reasonably be expected to result in a Material Adverse Effect. 

(e)     Filings, Consents and
Approvals. The Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii)
application(s) to each applicable Trading Market for the additional listing of
the Shares for trading thereon in the time and manner required thereby, and
(iii) such filings as are required to be made under applicable state securities
laws (collectively, the “Required Approvals”). 

(f)     Issuance of the Securities.
The Securities are duly authorized and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued,
fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided by the Transaction Documents. The
Company has reserved from its duly authorized capital stock the maximum number
of shares of Common Stock issuable pursuant to this Agreement. 

7

(g)     Capitalization. As of December 7, 2017, the company
has 38,274,490 shares issued and outstanding. Since December 7, 2017, the
Company has not issued any capital stock since its most recently filed periodic
report under the Exchange Act, other than pursuant to the exercise of employee
stock options under the Company’s stock option plans, the issuance of shares of
Common Stock to employees pursuant to the Company’s employee stock purchase
plans and pursuant to the conversion and/or exercise of Common Stock Equivalents
outstanding as of the date of the most recently filed periodic report under the
Exchange Act. No Person has any right of first refusal, preemptive right, right
of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. All of the outstanding shares of
capital stock of the Company are duly authorized, validly issued, fully paid and
nonassessable, have been issued in material compliance with all federal and
state securities laws, and none of such outstanding shares was issued in
violation of any preemptive rights or similar rights to subscribe for or
purchase securities. No further approval or authorization of any stockholder,
the Board of Directors or others is required for the issuance and sale of the
Securities. There are no stockholders agreements, voting agreements or other
similar agreements with respect to the Company’s capital stock to which the
Company is a party or, to the knowledge of the Company, between or among any of
the Company’s stockholders. 

(h)     SEC Reports; Financial
Statements. The Company has filed all reports, schedules, forms, statements
and other documents required to be filed by the Company under the Securities Act
and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for
the two years preceding the date hereof (or such shorter period as the Company
was required by law or regulation to file such material) (the foregoing
materials, including the exhibits thereto and documents incorporated by
reference therein being collectively referred to herein as the “SEC
Reports”) on a timely basis or has received a valid extension of such time
of filing and has filed any such SEC Reports prior to the expiration of any such
extension. As of their respective dates, the SEC Reports complied in all
material respects with the requirements of the Securities Act and the Exchange
Act, as applicable, and none of the SEC Reports, when filed, 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. The
Company is an issuer subject to Rule 144(i) under the Securities Act. The
financial statements of the Company included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and
regulations of the Commission with respect thereto as in effect at the time of
filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis
during the periods involved (“GAAP”), except as may be otherwise
specified in such financial statements or the notes thereto and except that
unaudited financial statements may not contain all footnotes required by GAAP,
and fairly present in all material respects the financial position of the
Company and its consolidated Subsidiaries as of and for the dates thereof and
the results of operations and cash flows for the periods then ended, subject, in
the case of unaudited statements, to normal, immaterial, year-end audit
adjustments. 

8

(i)     Material Changes; Undisclosed
Events, Liabilities or Developments. Since the date of the latest audited
financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there
has been no event, occurrence or development that has had or that could
reasonably be expected to result in a Material Adverse Effect, (ii) the Company
has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of
accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) the Company has not issued any equity securities to any officer,
director or Affiliate, except pursuant to existing Company stock option plans.
The Company does not have pending before the Commission any request for
confidential treatment of information. Except for the issuance of the Securities
contemplated by this Agreement or as set forth in the SEC Reports, no event,
liability, fact, circumstance, occurrence or development has occurred or exists
or is reasonably expected to occur or exist with respect to the Company or its
Subsidiaries or their respective businesses, properties, operations, assets or
financial condition that would be required to be disclosed by the Company under
applicable securities laws at the time this representation is made or deemed
made that has not been publicly disclosed at least 1 Trading Day prior to the
date that this representation is made. 

(j)     Litigation. Except as set
forth in the SEC Reports, there is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of
their respective properties before or by any court, arbitrator, governmental or
administrative agency or regulatory authority (federal, state, county, local or
foreign) (collectively, an “Action”) which (i) adversely affects or
challenges the legality, validity or enforceability of any of the Transaction
Documents or the Securities or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse Effect.
Neither the Company nor any Subsidiary, nor any director or officer thereof, is
or has been the subject of any Action involving a claim of violation of or
liability under federal or state securities laws or a claim of breach of
fiduciary duty. There has not been, and to the knowledge of the Company, there
is not pending or contemplated, any investigation by the Commission involving
the Company or any current or former director or officer of the Company. The
Commission has not issued any stop order or other order suspending the
effectiveness of any registration statement filed by the Company or any
Subsidiary under the Exchange Act or the Securities Act. 

(k)     Labor Relations. No labor
dispute exists or, to the knowledge of the Company, is imminent with respect to
any of the employees of the Company, which could reasonably be expected to
result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship
with the Company or such Subsidiary, and neither the Company nor any of its
Subsidiaries is a party to a collective bargaining agreement, and the Company
and its Subsidiaries believe that their relationships with their employees are
good. To the knowledge of the Company, no executive officer of the Company or
any Subsidiary, is, or is now expected to be, in violation of any material term
of any employment contract, confidentiality, disclosure or proprietary
information agreement or non-competition agreement, or any other contract or
agreement or any restrictive covenant in favor of any third party, and the
continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing
matters. The Company and its Subsidiaries are in compliance with all applicable
laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in
compliance would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. 

9

(l)     Compliance. Neither the
  Company nor any Subsidiary: (i) is in default under or in violation of (and no
  event has occurred that has not been waived that, with notice or lapse of time
  or both, would result in a default by the Company or any Subsidiary under), nor
  has the Company or any Subsidiary received notice of a claim that it is in
  default under or that it is in violation of, any indenture, loan or credit
  agreement or any other material agreement or instrument to which it is a party
  or by which it or any of its properties is bound (whether or not such default or
  violation has been waived), (ii) is in violation of any judgment, decree or
  order of any court, arbitrator or other governmental authority or (iii) is or
  has been in violation of any statute, rule, ordinance or regulation of any
  governmental authority, including without limitation all foreign, federal, state
  and local laws relating to taxes, environmental protection, occupational health
  and safety, product quality and safety and employment and labor matters, except
  in each case as would not have or reasonably be expected to result in a Material
Adverse Effect. 

(m)     Title to Assets. The
Company and the Subsidiaries have good and marketable title in fee simple to all
real property owned by them and good and marketable title in all personal
property owned by them that is material to the business of the Company and the
Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as
do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the
Company and the Subsidiaries and (ii) Liens for the payment of federal, state or
other taxes, for which appropriate reserves have been made in accordance with
GAAP and, the payment of which is neither delinquent nor subject to penalties.
Any real property and facilities held under lease by the Company and the
Subsidiaries are held by them under valid, subsisting and enforceable leases
with which the Company and the Subsidiaries are in compliance in all material
respects. 

(n)     Insurance. The Company and
the Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary
in the businesses in which the Company and the Subsidiaries are engaged,
including, but not limited to, directors and officers insurance. Neither the
Company nor any Subsidiary has any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost. 

10

(o)     Internal Accounting
  Controls. The Company and the Subsidiaries have established disclosure
  controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
  15d-15(e)) for the Company and the Subsidiaries and designed such disclosure
  controls and procedures to ensure that information required to be disclosed by
  the Company in the reports it files or submits under the Exchange Act is
  recorded, processed, summarized and reported, within the time periods specified
  in the Commission’s rules and forms. The Company’s certifying officers have
  evaluated the effectiveness of the disclosure controls and procedures of the
  Company and the Subsidiaries as of the end of the period covered by the most
  recently filed periodic report under the Exchange Act (such date, the
  “Evaluation Date”). The Company presented in its most recently filed
  periodic report under the Exchange Act the conclusions of the certifying
  officers about the effectiveness of the disclosure controls and procedures based
  on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
  have been no changes in the internal control over financial reporting (as such
  term is defined in the Exchange Act) of the Company and its Subsidiaries that
  have materially affected, or is reasonably likely to materially affect, the
  internal control over financial reporting of the Company and its Subsidiaries.

(p)     Fees. No brokerage or
finder’s fees or commissions are or will be payable by the Company or any
Subsidiary to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents. The Purchaser shall have no
obligation with respect to any fees or with respect to any claims made by or on
behalf of other Persons for fees of a type contemplated in this Section that may
be due in connection with the transactions contemplated by the Transaction
Documents. 

(q)     Private Placement. Assuming
the accuracy of the Purchasers’ representations and warranties set forth in
Section 3.2, no registration under the Securities Act is required for the offer
and sale of the Securities by the Company to the Purchasers as contemplated
hereby. The issuance and sale of the Securities hereunder does not contravene
the rules and regulations of the Trading Market. 

(r)     No General Solicitation.
Neither the Company nor any Person acting on behalf of the Company has offered
or sold any of the Securities by any form of general solicitation or general
advertising. The Company has offered the Securities for sale only to the
Purchasers and certain other “accredited investors” within the meaning of Rule
501 under the Securities Act. 

(s)     Listing and Maintenance
Requirements. The Common Stock is registered pursuant to Section 12(b) or
12(g) of the Exchange Act, and the Company has taken no action designed to, or
which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company
received any notification that the Commission is contemplating terminating
such registration. The Company is in compliance with all such listing and
maintenance requirements. The Common Stock is currently eligible for electronic
transfer through the Depository Trust Company or another established clearing
corporation and the Company is current in payment of the fees to the Depository
Trust Company (or such other established clearing corporation) in connection
with such electronic transfer. 

11

(t)     Application of Takeover
  Protections. The Company and the Board of Directors have taken all necessary
  action, if any, in order to render inapplicable any control share acquisition,
  business combination, poison pill (including any distribution under a rights
  agreement) or other similar anti-takeover provision under the Company’s
  certificate of incorporation (or similar charter documents) or the laws of its
  state of incorporation that is or could become applicable to the Purchaser as a
  result of the Purchaser and the Company fulfilling their obligations or
  exercising their rights under the Transaction Documents, including without
  limitation as a result of the Company’s issuance of the Securities and the
Purchaser’s ownership of the Securities. 

(u)     Disclosure. All of the
disclosure furnished by or on behalf of the Company to the Purchaser regarding
the Company and its Subsidiaries, their respective businesses and the
transactions contemplated hereby, including the Disclosure Schedules to this
Agreement, is true and correct in all material respects and does not contain any
untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. 

(v)     Accountants. The Company’s
current accounting firm is WWC, P. C. To the knowledge and belief of the
Company, such accounting firm (i) is a registered public accounting firm as
required by the Exchange Act and (ii) shall express its opinion with respect to
the financial statements to be included in the Company’s Annual Report for the
fiscal year ending December 31, 2017. 

3.2     Representations and Warranties
of the Purchaser. The Purchaser hereby represents and warrants as of the
date hereof and as of each Closing to the Company as follows (unless as of a
specific date therein): 

(a)     Organization; Authority. The
Purchaser is either an individual or an entity duly incorporated or formed,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation or formation with full right, corporate, partnership, limited
liability company or similar power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its
obligations hereunder and thereunder. The execution and delivery of this
Agreement and performance by the Purchaser of the transactions contemplated by
this Agreement have been duly authorized by all necessary corporate,
partnership, limited liability company or similar action, as applicable, on the
part of the Purchaser. Each Transaction Document to which it is a party has been
duly executed by the Purchaser, and when delivered by the Purchaser in
accordance with the terms hereof, will constitute the valid and legally binding
obligation of the Purchaser, enforceable against it in accordance with its
terms, except: (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law. 

12

(b)     Own Account. The Purchaser
  understands that the Securities are “restricted securities” and have not been
  registered under the Securities Act or any applicable state securities law and
  is acquiring the Securities as principal for its own account and not with a view
  to or for distributing or reselling such Securities or any part thereof in
  violation of the Securities Act or any applicable state securities law, has no
  present intention of distributing any of such Securities in violation of the
  Securities Act or any applicable state securities law and has no direct or
  indirect arrangement or understandings with any other persons to distribute or
  regarding the distribution of such Securities in violation of the Securities Act
  or any applicable state securities law (this representation and warranty not
  limiting the Purchaser’s right to sell the Securities pursuant to a registration
  statement or otherwise in compliance with applicable federal and state
  securities laws). The Purchaser is acquiring the Securities hereunder in the
ordinary course of its business. 

(c)     Purchaser Status. At the
time the Purchaser was offered the Securities, it was, and as of the date hereof
it is, either: (i) an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified
institutional buyer” as defined in Rule 144A(a) under the Securities Act; or
(iii) non-US residents, as permitted by Regulation S. 

(d)     Experience of The Purchaser.
The Purchaser, either alone or together with its representatives, has such
knowledge, sophistication and experience in business and financial matters so as
to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment.
The Purchaser is able to bear the economic risk of an investment in the
Securities and, at the present time, is able to afford a complete loss of such
investment. 

(e)     General Solicitation. The
Purchaser is not, to its knowledge, purchasing the Securities as a result of any
advertisement, article, notice or other communication regarding the Securities
published in any newspaper, magazine or similar media or broadcast over
television or radio or presented at any seminar or any other general
solicitation or general advertisement. 

(f)     Certain Transactions and
Confidentiality. Other than consummating the transactions contemplated
hereunder, the Purchaser has not, nor has any Person acting on behalf of or
pursuant to any understanding with the Purchaser, directly or indirectly
executed any purchases or sales, including Short Sales, of the securities of the
Company during the period commencing as of the time that the Purchaser first
received a term sheet (written or oral) from the Company or any other Person
representing the Company setting forth the material pricing terms of the
transactions contemplated hereunder and ending immediately prior to the
execution hereof. Notwithstanding the foregoing, in the case the Purchaser is a
multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of the Purchaser’s assets and the portfolio managers have no
direct knowledge of the investment decisions made by the portfolio managers
managing other portions of the Purchaser’s assets, the representation set forth
above shall only apply with respect to the portion of assets managed by the
portfolio manager that made the investment decision to purchase the Securities
covered by this Agreement. Other than to other Persons party to this Agreement,
the Purchaser has maintained the confidentiality of all disclosures made to it
in connection with this transaction (including the existence and terms of this
transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing
contained herein shall constitute a representation or warranty, or preclude any
actions, with respect to the identification of the availability of, or securing
of, available shares to borrow in order to effect Short Sales or similar
transactions in the future. 

13

(g)     Access to Information. The
  Purchaser acknowledges that it has had the opportunity to review the Transaction
  Documents (including all exhibits and schedules thereto) and the SEC Reports and
  has been afforded (i) the opportunity to ask such questions as it has deemed
  necessary of, and to receive answers from, representatives of the Company
  concerning the terms and conditions of the offering of the Securities and the
  merits and risks of investing in the Securities; (ii) access to information
  about the Company and its financial condition, results of operations, business,
  properties, management and prospects sufficient to enable it to evaluate its
  investment; and (iii) the opportunity to obtain such additional information that
  the Company possesses or can acquire without unreasonable effort or expense that
  is necessary to make an informed investment decision with respect to the
investment. 

(h)     Acknowledgement of Risk. The
Purchaser acknowledges and understands that its investment in the Securities
involves a significant degree of risk, including, without limitation that (i) an
investment in the Company is speculative, and only Purchaser who can afford the
loss of their entire investment should consider investing in the Company and the
Securities and (ii) the Company has not paid any dividends on its Common Stock
since inception and does not anticipate the payment of dividends in the
foreseeable future. 

The Company acknowledges and agrees that the representations
contained in this Section 3.2 shall not modify, amend or affect the Purchaser’s
right to rely on the Company’s representations and warranties contained in this
Agreement or any representations and warranties contained in any other
Transaction Document or any other document or instrument executed and/or
delivered in connection with this Agreement or the consummation of the
transaction contemplated hereby. 

14

ARTICLE IV. 
OTHER AGREEMENTS OF THE PARTIES 

4.1     Transfer Restrictions. 

(a)     The Securities may only be disposed
of in compliance with state and federal securities laws. In connection with any
transfer of Securities other than pursuant to an effective registration
statement or Rule 144, to the Company or to an Affiliate of the Purchaser or in
connection with a pledge as contemplated in Section 4.1(b), the Company may
require the transferor thereof to provide to the Company an opinion of counsel
selected by the transferor and reasonably acceptable to the Company, the form
and substance of which opinion shall be reasonably satisfactory to the Company,
to the effect that such transfer does not require registration of such
transferred Securities under the Securities Act. As a condition of transfer, any
such transferee shall agree in writing to be bound by the terms of this
Agreement and shall have the rights and obligations of the Purchaser under this
Agreement. 

(b)     The Purchaser agrees to the
imprinting, so long as is required by this Section 4.1, of a legend on any of
the Securities in the following form: 

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN
WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES. 

4.2     Furnishing of Information;
Public Information. Until the time that the Purchaser does not own any
Securities, the Company covenants to maintain the registration of the Common
Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or
obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the date hereof
pursuant to the Exchange Act even if the Company is not then subject to the
reporting requirements of the Exchange Act. 

4.3     Integration. The Company
shall not sell, offer for sale or solicit offers to buy or otherwise negotiate
in respect of any security (as defined in Section 2 of the Securities Act) that
would be integrated with the offer or sale of the Securities in a manner that
would require the registration under the Securities Act of the sale of the
Securities or that would be integrated with the offer or sale of the Securities
for purposes of the rules and regulations of any Trading Market such that it
would require shareholder approval prior to the closing of such other
transaction unless shareholder approval is obtained before the closing of such
subsequent transaction. 

15

4.4     Securities Laws Disclosure;
  Publicity. The Company shall (a) by 9:00 a.m. (New York City time) within
  four Trading Days following the date hereof, issue a press release disclosing
  the material terms of the transactions contemplated hereby, and (b) file a
  Current Report on Form 8-K, including the Transaction Documents as exhibits
  thereto, with the Commission within the time required by the Exchange Act. From
  and after the issuance of such press release, the Company represents to the
  Purchaser that it shall have publicly disclosed all material, non-public
  information delivered to any of the Purchaser by the Company or any of its
  Subsidiaries, or any of their respective officers, directors, employees or
  agents in connection with the transactions contemplated by the Transaction
  Documents. The Company and the Purchaser shall consult with each other in
  issuing any other press releases with respect to the transactions contemplated
  hereby, and neither the Company nor any Purchaser shall issue any such press
  release nor otherwise make any such public statement without the prior consent
  of the Company, with respect to any press release of any Purchaser, or without
  the prior consent of the Purchaser, with respect to any press release of the
  Company, which consent shall not unreasonably be withheld or delayed, except if
  such disclosure is required by law, in which case the disclosing party shall
  promptly provide the other party with prior notice of such public statement or
communication. 

4.5     Shareholder Rights Plan. No
claim will be made or enforced by the Company or, with the consent of the
Company, any other Person, that any Purchaser is an “Acquiring Person” under any
control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or similar anti-takeover plan or
arrangement in effect or hereafter adopted by the Company, or that any Purchaser
could be deemed to trigger the provisions of any such plan or arrangement, by
virtue of receiving Securities under the Transaction Documents or under any
other agreement between the Company and the Purchaser. 

4.6     Use of Proceeds. The Company
shall use the net proceeds from the sale of the Securities in accordance with
the schedule agreed to by the parties. 

4.7     Reservation of Common Stock.
As of the date hereof, the Company has reserved and the Company shall continue
to reserve and keep available at all times, a sufficient number of shares of
Common Stock for the purpose of enabling the Company to issue Shares pursuant to
this Agreement

4.8     Listing of Common Stock.
During the term of 5 years after the closing of this transaction, the Company
hereby agrees to use commercially reasonable efforts to maintain the listing or
quotation of the Common Stock on the Trading Market on which it is currently
listed, and concurrently with each Closing, the Company shall apply to list or
quote all of the Shares on such Trading Market and take all reasonable actions
to secure the listing of all of the Shares on such Trading Market. The Company
will then take all action reasonably necessary to continue the listing and
trading of its Common Stock on a Trading Market and will comply in all respects
with the Company’s reporting, filing and other obligations under the bylaws or
rules of the Trading Market. 

16

4.9     Certain Transactions and Confidentiality. The
Purchaser covenants that neither it nor any Affiliate acting on its behalf or
pursuant to any understanding with it will execute any purchases or sales,
including Short Sales of any of the Company’s securities during the period
commencing with the execution of this Agreement and ending at such time that the
transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4. The Purchaser
covenants that until such time as the transactions contemplated by this
Agreement are publicly disclosed by the Company pursuant to the initial press
release as described in Section 4.4, the Purchaser will maintain the
confidentiality of the existence and terms of this transaction and the
information included in the Disclosure Schedules.

4.10     Blue Sky Filings. The Company shall take such
action as the Company shall reasonably determine is necessary in order to obtain
an exemption for, or to qualify the Securities for, sale to the Purchaser at the
Closing under applicable securities or “Blue Sky” laws of the states of the
United States, and shall provide evidence of such actions promptly upon request
of the Purchaser. 

ARTICLE V. 
MISCELLANEOUS 

5.1      Termination. This Agreement may
be terminated by any Purchaser or by the Company with respect to any Purchaser,
as to the Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchaser, by
written notice to the other parties, if the Closing has not been consummated on
or before April 1, 2018; provided, however, that no such
termination will affect the right of any party to sue for any breach by any
other party (or parties). 

5.2     Fees and Expenses. Except as
expressly set forth in the Transaction Documents to the contrary, each party
shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement.
The Company shall pay all Transfer Agent fees (including, without limitation,
any fees required for same-day processing of any instruction letter delivered by
the Company and any exercise notice delivered by a Purchaser), stamp taxes and
other taxes and duties levied in connection with the delivery of any Securities
to the Purchaser. 

5.3     Entire Agreement. The
Transaction Documents, together with the exhibits and schedules thereto, contain
the entire understanding of the parties with respect to the subject matter
hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have
been merged into such documents, exhibits and schedules. 

5.4     Notices. Any and all notices or
other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the
earliest of: (a) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number or email attachment as set forth
on the signature pages attached hereto at or prior to 5:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number or email attachment as set forth on the
signature pages attached hereto on a day that is not a Trading Day or later than
5:30 p.m. (New York City time) on any Trading Day, (c) the second
(2nd) Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service or (d) upon actual receipt by
the party to whom such notice is required to be given. The address for such
notices and communications shall be as set forth on the signature pages attached
hereto. 

17

5.5     Amendments; Waivers. No
  provision of this Agreement may be waived, modified, supplemented or amended
  except in a written instrument signed, in the case of an amendment, by the
  Company and the Purchaser or, in the case of a waiver, by the party against whom
  enforcement of any such waived provision is sought. No waiver of any default
  with respect to any provision, condition or requirement of this Agreement shall
  be deemed to be a continuing waiver in the future or a waiver of any subsequent
  default or a waiver of any other provision, condition or requirement hereof, nor
  shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right. 

5.6     Headings. The headings
herein are for convenience only, do not constitute a part of this Agreement and
shall not be deemed to limit or affect any of the provisions hereof. 

5.7     Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The Company may not assign this
Agreement or any rights or obligations hereunder without the prior written
consent of the Purchaser (other than by merger). Any Purchaser may assign any or
all of its rights under this Agreement to any Person to whom the Purchaser
assigns or transfers any Securities, provided that such transferee agrees in
writing to be bound, with respect to the transferred Securities, by the
provisions of the Transaction Documents that apply to the “Purchaser.” 

5.8     No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person. 

5.9     Governing Law. All questions
concerning the construction, validity, enforcement and interpretation of the
Transaction Documents shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to
the principles of conflicts of law thereof. Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, Borough of Manhattan
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper or is an inconvenient
venue for such proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by law. If either party shall commence an action,
suit or proceeding to enforce any provisions of the Transaction Documents, then,
in addition to the obligations of the Company under Section 4.8, the prevailing
party in such action, suit or proceeding shall be reimbursed by the other party
for its reasonable attorneys’ fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such action or proceeding. 

18

5.10     Survival. The
  representations and warranties contained herein shall survive the Closing and
the delivery of the Securities. 

5.11     Execution. This Agreement
may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to each other party,
it being understood that the parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof. 

5.12     Severability. If any term,
provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable. 

5.13     Replacement of Securities.
If any certificate or instrument evidencing any Securities is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but
only upon receipt of evidence reasonably satisfactory to the Company of such
loss, theft or destruction. The applicant for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs
(including customary indemnity) associated with the issuance of such replacement
Securities. 

5.14     Remedies. In addition to
being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, each of the Purchaser and the Company will be
entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any action
for specific performance of any such obligation the defense that a remedy at law
would be adequate. 

19

5.15     Saturdays, Sundays, Holidays,
  etc. If the last or appointed day for the taking of any action or the
  expiration of any right required or granted herein shall not be a Business Day,
  then such action may be taken or such right may be exercised on the next
succeeding Business Day. 

5.16     Construction. The parties
agree that each of them and/or their respective counsel have reviewed and had an
opportunity to revise the Transaction Documents and, therefore, the normal rule
of construction to the effect that any ambiguities are to be resolved against
the drafting party shall not be employed in the interpretation of the
Transaction Documents or any amendments thereto. In addition, each and every
reference to share prices and shares of Common Stock in any Transaction Document
shall be subject to adjustment for reverse and forward stock splits, stock
dividends, stock combinations and other similar transactions of the Common Stock
that occur after the date of this Agreement. 

5.17     WAIVER OF JURY TRIAL.
IN ANY ACTION, SUIT, OR PROCEEDINGIN ANY JURISDICTION BROUGHT BY ANY
PARTY AGAINST ANY OTHER PARTY,THE PARTIES EACH KNOWINGLY AND
INTENTIONALLY, TO THE GREATESTEXTENT PERMITTED BY APPLICABLE LAW, HEREBY
ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL
BYJURY. 

(Signature Page Follows) 

20

IN WITNESS WHEREOF, the parties hereto have caused this
Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 

AMERICAN LORAIN CORPORATION 

	  	Address for Notice: 
	  	Beihuan Zhong Road 
	  	Junan County, Shandong China 
	  	Attention: Chen Si 
	By: _____________________	  
	       Name: Chen Si 	  
	       Title: Chairman
	  
	  	  
	  	  
	  	  
	  	  
	BEILI ZHU 	Address for Notice: 
	  	Suite 901, Building 6 
	By: _____________________	No. 1678 Jinshajiang Road 
	Name: Beili Zhu 	Putuo District, Shanghai, China, 200333 
	  	  
	YI LI 	Address for Notice: 
	  	Floor 17 Tower F, Yandang Tower 
	By: _____________________	No. 107, Yandang Road, Huangpu District 
	Name: Yi Li 	Shanghai, China, 200020 
	  	  
	  	  
		  

21

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