Document:

merion_ex102.htm

EXHIBIT 10.2

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of December 18, 2017协议日期 (the “Effective Date”) by and between Merion, Inc., a Nevada corporation(the “Company”) and 姓名XIAOYING LIU(刘晓英) (the “Purchaser”).

 

RECITALS

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section 5 of the Securities Act contained in Section 4(a)(2) thereof and/or Regulations D and S thereunder, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, certain 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, the following terms have the meanings set forth in this Section 1.1:

 

“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” means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

 

“Closing Date” means the day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Shares, in each case, have been satisfied or waived, but in no event later than January 30, 2018.

 

“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. 

 

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

 

“Exchange Rules” shall mean the listing rules of The OTCQB Marketplace.

 

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

 

“Per Share Purchase Price” equals $0.90 per share of Common Stock, subject to adjustment for reverse and forward stock splits, stock combinations and other similar transactions of the Common Stock that may occur after the date of this Agreement.

 

“Person” means an individual, 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.

 

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

 

“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(f).

 

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

 

“Securities Laws” means, collectively, the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”), the Securities Act, the Exchange Act, the Rules and Regulations, the auditing principles, rules, standards and practices applicable to auditors of “issuers” (as defined in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board, the Exchange Rules and applicable state securities laws and regulations. 

 

“Shares” means an aggregate of总股数[50,505] shares of Common Stock to be issued to thePurchaser pursuant to this Agreement(the “Shares”).

 

“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, an aggregate amount of 总金额$45,455美元 to be paid for Shares purchased by the Purchaser in United States dollars and in immediately available funds.

 

“Subsidiary” means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“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 OTCQB or the OTC Pink Open Market (or any successors to any of the foregoing).

 

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

 

	 
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“Transfer Agent” means Worldwide Stock Transfer, LLC, the current transfer agent of the Company, with a mailing address of One University Plaza, Suite 505. Hackensack, NJ 07601, 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 Purchaser agrees to purchase, up to an aggregate of 总股数[50,505] of Shares. Upon receiving the Purchaser’s Subscription Amount on the Closing Date and the delivery by the Purchaser of the other items set forth in Section 2.2 deliverable at the Closing, the Company shall deliver the Shares to the Purchaser as determined pursuant to Section 2.2(a). 

 

2.2 Deliveries.

 

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

 

(i) this Agreement duly executed by the Company;

 

(ii) subject to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver the Shares equal to the Purchaser’s Subscription Amount divided by the Per Share Purchase Price, in the name of the Purchaser.

 

(b) On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, as applicable, the following:

 

(i) this Agreement duly executed by the Purchaser; and

 

(ii) the Purchaser’s Subscription Amount by wire transfer to the bank account directed by the Company.

 

2.3 Closing Conditions.

 

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

 

(i) the accuracy when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date therein in which case they shall be accurate as of such date); 

 

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

 

(iii) the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement on or prior to the Closing Date.

 

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

 

(i) the accuracy when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in which case they will be accurate as of such date); 

 

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

 

(iii) the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement on or prior to the Closing Date; and

 

(iv) there shall have been no material adverse effect with respect to the Company since the date hereof.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations and Warranties of the Company. Except as indicated in the SEC Reports, the Company hereby represents and warrants to the Purchaser as of the date of this Agreement and as of the Closing Date as follows:

 

(a) Organization and Qualification. The Company and each of the Subsidiaries, if any, is an entity duly incorporated or otherwise organized and validly existing under the laws of each jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. 

 

(b) 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 (as defined below).

 

(c) 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 governmental authority or 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 or the offer, issue and sale of the Shares, other than: (i) the disclosure filing required for this Agreement, (ii) such filings as are required to be made under applicable state securities laws, and (iii) such consents, waivers and authorizations that shall be obtained prior to the Closing (collectively, the “Required Approvals”).

 

(d) Authorization of the Shares. The Shares to be sold by the Company and their issue and sale 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 free and clear of all Liens imposed by the Company.

 

(e) Capitalization. Except as may be described in the SEC Reports, all of the issued share capital of the Company has been duly and validly authorized and issued, is fully paid and non-assessable. 

 

	 
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(f) SEC Reports. 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, documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”). 

 

(g) Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

 

(h) No Broker. The Company has not employed any broker, finder or agent, nor become obligated in any way to pay any broker’s, finder’s or agent’s or similar fee with respect to the purchase and sale of the Shares.

 

3.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as made of a specific date stated therein, in which case they shall be accurate as of such date):

 

(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 the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by the Purchaser of the transactions contemplated by the Transaction Documents 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.

 

(b) Understandings or Arrangements. The Purchaser is acquiring the Shares for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of the Shares (this representation and warranty not limitingthePurchaser’s right to sell the Shares in compliance with applicable federal and state securities laws). The Purchaser is acquiring the Shares as principal, not as nominee or agent, and not with a view to or for distributing or reselling the Shares or any part thereof in violation of the Securities Act or any applicable state securities law.

 

(c) Foreign Investors. The Purchaser hereby represents that it has satisfied itself as to the full observance by thePurchaser of the laws of its jurisdiction applicable to the Purchaser in connection with the purchase of the Shares or the execution and delivery by the Purchaser of this Agreement and the Transaction Documents, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to the purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to thePurchaser’s purchase, holding, redemption, sale, or transfer of the Shares. The Purchaser’s subscription and payment for, and continued beneficial ownership of, the Shares will not violate any securities or other laws of the Purchaser’s jurisdiction applicable to thePurchaser.

 

	 
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(d) Experience of 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 Shares, and has so evaluated the merits and risks of such investment. ThePurchaser is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

 

(e) Access to Information. The Purchaser acknowledges that it has had the opportunity to review the Transaction Documents 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 Shares and the merits and risks of investing in the Shares; (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. 

 

(f) Regulation S. The Purchaser is a non-U.S. person (as such term is defined in Rule 902 of Regulation S under the Securities Act) and is not acquiring the Shares for the account or benefit of a U.S. person. The Purchaser will not, within six (6) months of the date of the transfer of the Shares to the Purchaser, (i) make any offers or sales of the Shares in the United States or to, or for the benefit of, a U.S. person (in each case, as defined in Regulation S) other than in accordance with Regulation S or another exemption from the registration requirements of the Securities Act, or (ii) engage in hedging transactions with regard to the Shares unless in compliance with the Securities Act. Neither the Purchaser nor any of the Purchaser’s Affiliates or any person acting on his/her or their behalf has engaged or will engage in directed selling efforts (within the meaning of Regulation S) with respect to the Shares, and all such persons have complied and will comply with the offering restriction requirements of Regulation S in connection with the offering of the Shares outside of the United States. 

 

(g) Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, thePurchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with thePurchaser, 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 thePurchaser first discussed the transaction with the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending ending on the date when this Agreement is publicly disclosed by the Company. ThePurchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

(h) Purchaser Status. At the time the Purchaser was offered the Shares, it was, and as of the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

(i) No Registration. The Purchaser understands that the Shares have not been, and will not be, registered under the Securities Act or applicable securities laws of any state or country and therefore the Shares cannot be sold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and applicable state securities laws or exemptions from such registration requirements are available. The Company shall be under no obligation to register the Shares under the Securities Act and applicable state securities laws, and any such registration shall be in the Company’s sole discretion.

 

(j) No General Solicitation. The Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares 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.

 

	 
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(j) Brokers or Finders. The Purchaser has not engaged any brokers, finders or agents, and the Company has not, nor will, incur, directly or indirectly, as a result of any action taken bythe Purchaser, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Reservation of Securities. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents. 

 

4.2 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 on the date when this Agreement is publicly disclosed by the Company. ThePurchaseralso covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company, thePurchaser will maintain the confidentiality of the existence and terms of this transaction. 

 

4.3 Legends. The Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares 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 this Section 4.3, 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 Shares under the Securities Act. The Purchaser agrees to the imprinting, so long as is required by this Section 4.3, of a legend on all of the certificates evidencing the Shares 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.

 

	 
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ARTICLE V.

MISCELLANEOUS

 

5.1 Termination. This Agreement may be terminated by the Company or the Purchaser by written notice to the other party if the Closing has not been consummated on or before January 30, 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. 

 

5.3 Entire Agreement. The Transaction Documents 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 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 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.

 

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, 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. No party hereto may assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company and 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, except as otherwise set forth in this Section 5.8.

 

	 
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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 Nevada, 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 Clark County, Nevada. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Clark County, Nevada, 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. 

 

5.10 Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Shares.The terms of this Article V shall survive any termination of the Agreement pursuant to Section 5.1. 

 

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 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.

 

5.14 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 combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. The English version of this Agreement, regardless of whether a translation in any other language is or will be made, shall be the only authentic version.

 

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

 

(Signature Pages Follow)

 

	 
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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.

 

	
COMPANY

 

MERION, INC.
	
 

	
 
	
 
	
 

	
By: 
	
/s/ Ding Hua Wang
	
 

	
Name: 
	
DING HUA WANG
	
 

	
Title: 
	
President
	
 

	
 
	
 

	
Address for Notice:

9550 Flair Dr, Suite 302

El Monte CA 91731

Fax:626-448-2163

Email:info@merionus.com
	
 

 

	
By(购买股票人签字): /s/ Xiaoying Liu                                                     

Name(正楷拼音姓名): XIAOYING LIU(刘晓英) 

Title(头衔): 

 

Address(住址): 

 

Tel: 

Fax(传真): 

Email(信箱): 

 

	
10Exhibit 10.1

 

PURCHASE AND SERVICE AGREEMENT

 

This PURCHASE AND
SERVICE AGREEMENT, dated as of September 14, 2016 hereof (this “Agreement”), is by and between BCL-EQUIPMENT
LEASING LLC., an Illinois limited liability company, (“Seller”), and ARISTA CAPITAL LTD., a Nevada corporation
(“Buyer”).

 

WITNESSETH:

 

WHEREAS, the
Buyer desires to purchase certain Business Equipment Leases (the “Leases”) and the Seller desires to sell and assign
these Leases to the Buyer as set forth herein; and

 

WHEREAS, the
Buyer desires to have the Seller continue to service these Leases and the Seller wishes to continue to service these Leases; and

 

WHEREAS, the
price to purchase and service such Leases shall be set forth below; and

 

NOW, THEREFORE,
in consideration of the foregoing premises, the mutual agreements herein contained, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1. PURCHASE

 

The Buyer has agreed
to purchase each of the Leases set forth in Exhibit A for an amount that yields the Buyer a 20% return, and accordingly, the price
for all the Leases hereby purchased is set forth in Exhibit A (the “Purchase Price”). Under no circumstances shall
the Buyer purchase any of the Lease Escrow Amounts (as defined in Section 2, below), and the Purchase Price shall be reduced accordingly
by the amount of the Lease Escrow Amounts. Except as provided herein, the Buyer hereby purchases the Leases and such other documents
(hereinafter the “Loan Documents”) executed by the lessee (the “Debtor”) as set forth in such Leases that
are attached in Exhibit A and all related security including without limitation all security agreements and all titles that show
Seller as the lien holder in the collateral (hereinafter the “Collateral”) as set forth below.

 

SECTION 2. ASSIGNMENT

 

The Seller hereby assigns,
conveys, sells and transfers to the Buyer as of the date hereof all of its right, title and interest in the Leases attached as
Exhibit A and shall execute the Assignment set forth in Exhibit C to this Agreement. Notwithstanding the foregoing, several of
the Leases as set forth in Exhibit D, escrow certain amounts from the respective Debtors for maintenance and security purposes
(herein the “Lease Escrow Amounts”), and such Lease Escrow Amounts are owed to the
respective Debtor at the end of the lease term to the extent that the Debtor is not in default of such Lease. The Seller shall
not assign and the Buyer will not assume the Lease Escrow Amounts, and Seller shall retain all obligations to return such Lease
Escrowed Amounts (whether collected prior to or after the date of this Agreement) to the particular Debtor. However, in the event
of a lease default that is not cured and Seller is able to retain such Lease Escrow Amounts (hereinafter a “Lease Default”),
then Seller agrees to remit one half (50%) of the particular Lease Escrow Amount to Buyer within 10 days of such Lease Default.

 

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SECTION 3. CERTAIN REPRESENTATIONS

 

(a) The Buyer represents
and warrants that it has duly authorized, executed and delivered this Agreement, and this Agreement constitutes its legal, valid
and binding obligation enforceable against the Buyer in accordance with its terms, except as enforcement of the terms hereof and
thereof may be limited by applicable bankruptcy, insolvency, reorganization, liquidation, moratorium or similar laws affecting
enforcement of creditors’ rights generally, and general principles of equity.

 

(b) The Seller represents
and warrants that it has duly authorized, executed and delivered this Agreement, and this Agreement constitutes its legal, valid
and binding obligation enforceable against the Seller in accordance with its terms, except as enforcement of the terms hereof and
thereof may be limited by applicable bankruptcy, insolvency, reorganization, liquidation, moratorium or similar laws affecting
enforcement of creditors’ rights generally, and general principles of equity.

 

(c) Seller also provides the following representations
and warranties to Buyer:

 

(i) Seller
has good and marketable title to each of the Leases, and upon transfer to Buyer, each Lease will be free and clear of any and all
liens, pledges, charges, or security interests of any nature and Seller has the full right and authority to sell and assign the
Leases, and further the Leases were executed with duly authorized and legally binding upon Seller and the Debtor;

 

(ii) The
schedule attached as Exhibit "B" shows the payment history and payments to be received under of each Lease, and to the
best of Seller’s knowledge, all information regarding the Leases that has been provided by Seller to Buyer is true and correct
in all material respects;

 

(iii) The
Collateral is undamaged and has not experienced any casualty during the term of the Lease except as provided in Schedule 3(iii)
attached hereto.

 

(iv) To
the best of Seller’s knowledge, no Leases are subject to any right of rescission, set-off, counterclaim or defense, including
the defense of usury, nor will the operation of any of the terms of the Leases or the exercise of the rights thereunder, render
the Leases unenforceable, in whole or in part, or subject it to any right of rescission, set-off, counterclaim or defense and no
such right has been asserted.

 

(v) The
Leases contain customary and enforceable provisions, (and are not subject to consumer loan regulations), such as to render the
rights and remedies of the holder thereof adequate for the realization against the collateral of the benefits of the security,
including realization by judicial foreclosure.

 

(vi) Since
their origination, the Leases have not been in default except as provided in Schedule 3(vi).

 

    	 	2	 

     

    

 

(vii) To
the best of Seller’s knowledge the Collateral is being operated with all necessary inspections, licenses and certificates
necessary to operate such Collateral for the business purposes of the Debtor.

 

(viii) The
Leases and other agreements executed in connections therewith are genuine, and each is the legal, valid and binding obligation
of the Debtor thereof, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization or similar laws effecting the enforcement of creditors’ rights generally and by general equity principles.

 

(ix) The
proceeds of the Leases have been fully disbursed, and there is no requirement for future advances thereunder.

 

(x) The
Leases and Loan Documents comply with all applicable laws, statutes, and regulations.

 

(xi) The
Debtor is not required to consent to any assignment and transfer of the Leases and Loan Documents as contemplated herein.

 

The representations and warranties of
the Buyer and Seller shall survive the execution of this Agreement and assignment of the Leases

 

SECTION 4. COVENANTS

 

1. Seller shall retain,
and Buyer shall not assume or be responsible or liable for in any way any debts, contracts, liabilities, commitments or obligations
of Seller of any kind or nature whatsoever, whether absolute or contingent, liquidated or unliquidated, disclosed or undisclosed
and whether or not known or unknown, accrued or matured, and whether related to or not related to the Leases which exist prior
to the date of this Agreement (collectively, “Retained Liabilities”).

 

2. Seller and Buyer
agree to cooperate in executing any required documents necessary to provide Buyer with a first lien priority security interest
in the Collateral and to add Buyer as the certificate holder with respect to insurance and title covering the Collateral.

 

3. Seller agrees to
protect, indemnify, defend and hold harmless the Buyer, its directors, officers, agents, employees, affiliates, successors, and
assigns, against all liability, loss, damage or expenses up to the amount of the Purchase Price(including, without limitation,
attorneys’ fees) arising out of: (i) any claims that may arise with respect to the Leases prior to the date of this Agreement,
(ii) claims that arise with respect to any Retained Liabilities, including without limitation, any obligations to collect or return
the Lease Escrow Amounts; or (iii) any claims that arise from a breach of the Seller’s representations and warranties as
set forth above.

 

4. Purchaser agrees
to protect, indemnify, defend and hold harmless the Seller, its directors, officers, agents, employees, affiliates, successors,
and assigns, against all liability, loss, damage or expenses up to the amount of the Purchase Price (including, without limitation,
attorneys’ fees) arising out of any claims that may arise with respect to the Leases after the date of this Agreement; provided,
however, losses, liability, damage or expense caused by Seller’s actions or inactions as servicer of the Leases shall be
excluded from this indemnity.

 

    	 	3	 

     

    

 

SECTION 5. LEASE SERVICING

 

A. Seller shall be
responsible for administering the Leases, collecting all payments (principal, interest, late fees, or receipts resulting from the
liquidation of any collateral) and disbursing to Buyer its share of all amounts received.

 

B. Seller hereby represents,
warrants and covenants that it shall exercise that degree of ordinary care that would be exercised by bankers or financiers, in
the industry, in administering a Lease in accordance with the usual practices and procedures employed by Seller on similar Leases
or leases for its own account taking into consideration the size of the Lease, creditworthiness of the applicable Debtor, other
credit extended to the applicable Debtor and other matters customarily taken into account in underwriting and administering similar
Leases or lease in the ordinary course of Seller's business. Seller hereby represents, warrants and covenants that it shall use
reasonable efforts, consistent with the efforts Seller utilizes in connection with Leases or leases for its own account, to insure
that the Lease documents are enforceable in accordance with their terms, comply with regulatory requirements related thereto, and
provide customary rights and remedies to the holder thereof.

 

C. Subject to and in
accordance with the terms and conditions set forth in this Agreement, and all applicable laws, Buyer authorizes Seller to perform
the following services in connection with servicing each of the Leases:

 

		(a)	Verify, where applicable, that the property encumbered by each Lease is valid collateral and insured
(at the Debtor’s expense) by a sufficient casualty insurance policy and that Debtor has sufficient liability insurance coverage.

 

		(b)	Keep appropriate accounting records on each note or lease and the sums collected thereon, which
records will reflect the amounts collected as to principal, interest and late charges, and, if applicable, insurance, taxes and
other specified amounts. Those records will be available for review by the Buyer during regular business hours at Seller’s
corporate office.

 

		(c)	Until the total amount due under each Lease is paid in full:

 

		(i)	Proceed diligently to collect all payments due under the terms of the note or lease and promptly
pay the proper parties, when and if due, principal, interest, late charges, insurance and other specified funds.

 

		(ii)	In the event the Debtor fails to make any payments to as required by the terms of the note or lease,
Seller will take steps to collect the payment including but not limited to delivering default notices, commencing and pursing foreclosure
procedures, and obtaining representation in litigation and bankruptcy proceedings as deemed necessary or appropriate by Seller
in its business judgment to fully protect the interests of Buyer as the ultimate lender in the Lease.

 

    	 	4	 

     

    

 

		(d)	Provide Buyer with regular statements regarding Lease collections, but in no event less frequently
than monthly.

 

		(e)	Buyer hereby authorizes and empowers Seller on its behalf, to (1) execute and deliver demands for
payoff and beneficiary’s statements of condition and the like; (2) execute and deliver any instruments of satisfaction or
cancellation, or of partial or full release, discharge, or reconveyance, or authorizations in connection therewith, with respect
to any Leases paid in full and with respect to the related personal property on such Leases , (3) deliver any and all other documents
with respect to any Leases that are customary and consistent with Lease servicing practices pertaining to such Leases; (4) consent
to modifications of the Leases if the effect of any such modification will not materially or adversely affect the security provided
by the personal property in connection therewith; (5) institute foreclosure proceedings (judicial or non-judicial), obtain a deed-in-lieu
thereof, engage in settlement discussions, and enter into forbearance and other settlement-related agreements (which agreements
may contain provisions that release or waive claims against a Debtor or guarantor; and (6) take title in the name of Buyer to any
property upon foreclosure or delivery of a deed-in-lieu thereof. Notwithstanding any other provision contained herein, Seller may
not permit any modification to any Lease that would change the interest rate, forgive the payment of any principal or interest
(expressly excluding late charges or the difference between default and non-default interest), change the outstanding principal
amount, or extend the maturity date, without Buyer’s prior consent.

 

D. Buyer authorizes
Seller to retain monthly, as compensation for administration services performed hereunder, an amount which is equal to 2.0% of
the scheduled payment amount of each Lease, as indicated herein (the “Servicing Fee”), (b) 50% of all penalties, and
or late charges collected from the borrower pursuant to the terms of each Lease, and (c) and 50% of the default interest collected
from the Debtor pursuant to the terms of each Lease. Seller shall promptly remit the remaining amount received by each Debtor,
less any Expenses as provided in 5(E) below, to Buyer. The Seller shall make one monthly remittance to the Buyer that includes
all lease payments collected from the Debtors under the Leases and provide Buyer with such remittance information on the monthly
collections. In the event there are insufficient funds from collections under the Leases to pay the Servicing Fee and/or the Expenses,
Buyer shall remit the amount of any Expenses directly to Seller within 5 business days, however, the Servicing Fee shall accrue
until such time that the Collateral is sold or released.

 

E. Buyer shall pay
the "Expenses," related to the collection or enforcement of a defaulted Lease unless otherwise provided in this Agreement
or other Agreements between the parties. The term “Expenses” shall mean all reasonable out of pocket expenses incurred
by Seller or any agent of Seller in connection with the collection of a Lease including, but not limited to, outside attorneys’
fees, court charges, insurance, repairs to any vehicle, towing charges, repossession charges, costs of re-sale of any vehicle,
advertising costs, and all other costs and expenses typically incurred by a lender in connection with the collection of a similar
Lease.

 

    	 	5	 

     

    

 

SECTION 6. CLOSING AND DELIVERABLES.

 

Section 6.1 This Agreement shall be
effective as of the date written above (the “Closing”) shall take place via electronic transfer and execution
of documents and corresponding wire transfers

 

Section 6.2 At the Closing, the
Seller shall:

 

A.
Deliver copies of the resolutions of the Seller authorizing and approving this Agreement and all transaction and other
documents;

 

B.
execute and deliver to the Buyer a bill of sale in the form of Exhibit E. attached hereto (the “Bill of
Sale”), together with such other instruments of transfer necessary or appropriate to transfer or vest in the Buyer
the Leases and Loan Documents

 

C. Such
other documents as may be reasonably requested by Buyer's counsel.

 

SECTION 7. MISCELLANEOUS

 

Section 7.1 Amendments and
Waivers. No term, covenant, agreement or condition of this Agreement may be terminated, amended or compliance therewith waived
(either generally or in a particular instance, retroactively or prospectively) except by an instrument or instruments in writing
executed by each party hereto.

 

Section 7.2 Notices.
All notices hereunder shall be delivered to the addresses set forth in the Agreement.

 

Section 7.3 Successors and
Assigns. This Agreement shall be binding upon and shall inure to the benefit of, and shall be enforceable by, the parties hereto
and their respective successors and assigns. No party hereto may assign rights or obligation hereunder without the consent of the
other parties hereto.

 

Section 7.4 Governing Law
and Jurisdiction. This Agreement and the rights and obligations of the parties under this Agreement shall be governed by and
construed in accordance with the laws of the State of New York. The Parties hereto irrevocably agree that all actions arising directly
or indirectly as a result or in consequence of this Agreement shall be instituted and litigated only in courts having situs in
the City of New York, New York. The Parties hereby consent to the exclusive jurisdiction and venue of any state or federal court
located and having its situs in New York, New York, and waives any objection based on forum non conveniens.

 

    	 	6	 

     

    

 

Section 7.5 Attorneys Fees.
The prevailing party shall have the right to collect from the other party its reasonable costs and necessary disbursements and
attorneys' fees incurred in enforcing this Agreement.

 

Section 7.6 Counterparts.
This Agreement may be executed by the parties hereto by facsimile signature or portable document format (PDF) by electronic mail
and in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

 

Section 7.7 Headings.
The headings of the various sections of this Agreement are for convenience of reference only and shall not modify, define or limit
any of the terms or provisions hereof or thereof

 

Section 7.8 Further Assurances.
From time to time after the date hereof, without additional consideration, each of the parties agrees to execute, acknowledge,
deliver, file and record, or cause to be executed, acknowledged, delivered, filed and recorded, such further instruments, and take
such other action, as may be necessary or reasonably requested by the other party to make effective the transactions contemplated
by this Agreement and to provide the other party the intended benefits of this Agreement. In furtherance of the foregoing, and
not in limitation thereof, upon reasonable request of the Buyer, the Seller shall execute, acknowledge and deliver all such further
assurances, deeds, assignments, consequences, powers of attorney and other instruments and papers as may be required to sell, transfer,
assign, convey and deliver to the Buyer all right, title and interest in, the Lease subject to this Agreement. Seller shall retain
in trust physical possession of the Lease documents and any other documents or instruments in its physical possession relating
to the Leases in accordance with the terms of this Agreement for the benefit of Buyer as owners of the Leases. Seller acknowledges
that Buyer's interest in each and every Lease made by Seller pursuant to this Agreement is subject to an assignment as set forth
in this Purchase Agreement and accordingly all rights as the lender under the Lease are held by Buyer as the owner of the Lease.

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF, the undersigned have executed and delivered
this Agreement for the purposes herein expressed pursuant to all requisite authority as of this 14th day of September, 2016.

 

	SELLER	 	BUYER
	 	 	 
	BCL-Equipment Leasing LLC	 	ARISTA CAPITAL LTD.
	 	 	 	 
	By: BCL-M&E LLC, its Member	 	By:	                  
	 	 	 	 	 
	Name:	                         	 	Name: 	 
		Ross A. Ettin	 	 	 
	 	 	 	 	 
	Title:	 	 	Title:	 
	 	 	 
	Address of Seller	 	Address of Buyer
	 	 	 
	450 Skokie Blvd.	 	200 Madison Avenue
	Suite 604	 	Suite 204
	Northbrook, IL 60062	 	Morristown, NJ 07960

 

    	 	8	 

     

    

 

EXHIBIT “A”

PURCHASE PRICE AND LEASE DOCUMENTS LIST

 

LIST OF LEASES

 

	Name of Lease	 	Purchase Price of each Lease	 
	 	 	 	 	 
	 	 	$	         	 
	 	 	 	 	 
	Aggregate Purchase Price:	 	$	 	 

 

     

     

    

 

	Contract #	 	Contract Receivable	 	 	Sale Price	 	 	Start Date	 	Maturity Date	 	Payments Remaining	 	 	Payment Amount	 
	15-383-1	 	$	62,050.00	 	 	$	46,345,65	 	 	8/19/2015	 	9/19/2019	 	 	73	 	 	$	850.00	 
	15-426-1	 	$	68,020.00	 	 	$	50,240.18	 	 	10/7/2015	 	11/7/2019	 	 	76	 	 	$	895.00	 
	16-042-1	 	$	102,754.00	 	 	$	75,842,75	 	 	4/28/2016	 	11/28/2019	 	 	166	 	 	$	619.00	 
	16-052-1	 	$	86,220.00	 	 	$	62,134.89	 	 	7/29/2016	 	2/29/2020	 	 	180	 	 	$	479.00	 
	 	 	$	319,044.00	 	 	$	234,563.47

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