Document:

American Lorain CORP.: Exhibit 10.2 - Filed by newsfilecorp.com

AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT 

This Securities Purchase
Agreement (this “Agreement”) is dated as of August 8, 2018, between
American Lorain Corporation, a Nevada corporation (the “Company”), and
Yimin Jin and Hongxiang Yu (collectively, the “Purchasers”). 

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 Purchasers, and each Purchaser desires to
purchase from the Company, securities of the Company as more fully described in
this Agreement; and 

WHEREAS, the Company and the
Purchasers entered into a securities purchase agreement on May 23, 2018 and
hereby wish to amend and restate such agreement in its entirety. 

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 Purchasers 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. 

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“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) .

“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 Closing Subscription Amount as to the Closing and (ii) the Company’s
obligations to deliver the Closing Shares 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) .

“Closing
Subscription Amount” means $10,000,000, in United States dollars and in
immediately available funds. 

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

“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. 

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“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)
..

“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).

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

“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 Purchasers in connection with the
transactions contemplated hereunder.

“Transfer
Agent” means Issuer Direct Corporation., 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 each Purchaser agrees to purchase
29,411,765 shares of Common Stock, representing an aggregate of 58,823,530
shares of Common Stock (collectively, the “Closing Shares”). Each
Purchaser shall deliver to the Company, via wire transfer or a certified check,
immediately available funds equal to the Purchaser’s pro rata portion of the
Closing Subscription Amount and the Company shall deliver to each Purchaser the pro
rata portion of such Purchaser’s Closing Shares within three Trading Days of the
Closing Date, and the Company and the Purchasers 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. 

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2.2           Deliveries.

(a)            On
or prior to the Closing, the Company shall deliver or cause to be delivered to
the Purchasers, a copy of the irrevocable instructions to the Transfer Agent
instructing the Transfer Agent to deliver certificates evidencing the Closing
Shares, registered in the names of the Purchasers, respectively; and 

(b)            On
or prior to each Closing, each Purchaser shall deliver or cause to be delivered
to the Company, the pro rata portion of such Purchaser’s Closing Subscription
Amount, by wire transfer of immediately available funds to the account specified
in writing by the Company. 

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 Purchasers required to be performed
at or prior to the applicable Closing shall have been performed; 

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

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

(iv)     
the sale of all of the Company’s interests in Junan Hongrun Foodstuff Co., Ltd.,
Athena, Dongguan Lorain Co., Ltd. and Shandong Lorain Co., Ltd. to the Company’s
chairman shall have been (i) approved by the requisite vote of the shareholders
of the Company at the 2018 annual meeting of shareholders of the Company (the
“Annual Meeting”) in accordance with the terms of the proxy statement to
be filed with the U.S. Securities and Exchange Commission and mailed to the
Company shareholders in connection therewith and (ii) consummated thereafter;

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(v)      amendments
to the Company’s articles of incorporation to (i) change the Company’s name to
“Planet Green Holdings Corp.” and (ii) effect a reverse stock split of the
Common Stock shall have been approved by the requisite vote of the shareholders
of the Company at the Annual Meeting; 

(vi)      the
Transaction Documents and the transactions contemplated hereby and thereby shall
have been approved by (i) the audit committee of the Company’s board of
directors, (ii) the requisite vote of the shareholders of the Company at the
Annual Meeting and (iii) the NYSE American; 

(vii)     
the election of each of the Purchasers shall have been approved by the requisite
vote of the shareholders of the Company at the Annual Meeting. 

(b)           The
obligations of the Purchasers 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 Closing Shares at the applicable Closing; 

(vi)      the
sale of all of the Company’s interests in Junan Hongrun Foodstuff Co., Ltd.,
Athena, Dongguan Lorain Co., Ltd. and Shandong Lorain Co., Ltd. to the Company’s
chairman shall have been (i) approved by the requisite vote of the shareholders of the Company at the 2018 annual meeting
of shareholders of the Company (the “Annual Meeting”) in accordance with
the terms of the proxy statement to be filed with the U.S. Securities and
Exchange Commission and mailed to the Company shareholders in connection
therewith and (ii) consummated thereafter; 

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(v)     
  amendments to the Company’s articles of incorporation to (i) change the
  Company’s name to “Planet Green Holdings Corp.” and (ii) effect a reverse stock
  split of the Common Stock shall have been approved by the requisite vote of the
shareholders of the Company at the Annual Meeting; 

(vi)     
the Transaction Documents and the transactions contemplated hereby and thereby
shall have been approved by (i) the audit committee of the Company’s board of
directors, (ii) the requisite vote of the shareholders of the Company at the
Annual Meeting and (iii) the NYSE American; 

(vii)      the
election of each of the Purchasers shall have been approved by the requisite
vote of the shareholders of the Company at the Annual Meeting. 

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 Purchasers: 

(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. 

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(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. 

(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 Closing Shares 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. 

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(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, (iii)
  approval from Company’s shareholder meeting; and (iv) such filings as are
  required to be made under applicable state securities laws (collectively, the
“Required Approvals”). 

(f)           Issuance
of the Closing Shares. The Closing Shares 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. 

(g)          
Capitalization. As of March 31, 2018, the company has 45,774,490 shares
issued and outstanding. Since March 31, 2018, 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 Closing Shares. 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. 

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(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 Closing
  Shares 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. 

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(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 Closing Shares 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. 

(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. 

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(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. 

(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
Purchasers 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. 

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(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 Closing Shares by the Company to the
  Purchasers as contemplated hereby. The issuance and sale of the Closing Shares
  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 Closing Shares by any form
of general solicitation or general advertising. The Company has offered the
Closing Shares 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. 

(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 Purchasers as a result of the Purchasers 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 Closing Shares and the Purchasers’ ownership of the Closing
Shares. 

(u)          
Disclosure. All of the disclosure furnished by or on behalf of the
Company to the Purchasers 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. 

12

 

3.2           Representations
and Warranties of the Purchasers. Each 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.

(b)           Own
Account. The Purchaser understands that the Closing Shares are “restricted
securities” and have not been registered under the Securities Act or any
applicable state securities law and is acquiring the Closing Shares as principal
for its own account and not with a view to or for distributing or reselling such
Closing Shares 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 Closing Shares 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 Closing
Shares 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
Closing Shares pursuant to a registration statement or otherwise in compliance
with applicable federal and state securities laws). The Purchaser is acquiring
the Closing Shares hereunder in the ordinary course of its business. 

13

  

(c)           Purchaser
Status. At the time the Purchaser was offered the Closing Shares, 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 Closing Shares, 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 Closing Shares 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 Closing
Shares as a result of any advertisement, article, notice or other communication
regarding the Closing 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. 

(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 Closing
Shares 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. 

(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
Closing Shares and the merits and risks of investing in the Closing 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. 

14

 

(h)           Acknowledgement
  of Risk. The Purchaser acknowledges and understands that its investment in
  the Closing Shares 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 Closing Shares 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 Purchasers’
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. 

ARTICLE IV. 
OTHER AGREEMENTS OF THE PARTIES

4.1           Transfer
Restrictions. 

(a)           The
Closing Shares may only be disposed of in compliance with state and federal
securities laws. In connection with any transfer of Closing Shares other than
pursuant to an effective registration statement or Rule 144, to the Company or
to an Affiliate of the Purchasers 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 Closing Shares 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 Purchasers under this Agreement. 

(b)           Each
Purchaser agrees to the imprinting, so long as is required by this Section 4.1,
of a legend on any of the Closing 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. 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. 

15

 

4.2           Furnishing
  of Information; Public Information. Until the time that the Purchasers do
  not own any Closing Shares, 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
Closing Shares in a manner that would require the registration under the
Securities Act of the sale of the Closing Shares or that would be integrated
with the offer or sale of the Closing Shares 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. 

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 Purchasers that it shall have publicly disclosed all material,
non-public information delivered to any of the Purchasers 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 Purchasers 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 Purchasers, 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. 

16

  

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 Closing Shares under the Transaction
Documents or under any other agreement between the Company and the Purchasers.

4.6           Use
of Proceeds. The Company shall use the net proceeds from the sale of the
Closing Shares 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. 

4.9           Certain
Transactions and Confidentiality. Each 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. Each 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, such
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 Closing Shares for, sale to the Purchasers 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 Purchasers.

17

  

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 such 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 October 31, 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 Closing Shares to a 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. 

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 Purchasers 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. 

18

  

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 Purchasers (other than by merger). Any
Purchaser may assign any or all of its rights under this Agreement to any Person
to whom such Purchaser assigns or transfers any Closing Shares, provided that
such transferee agrees in writing to be bound, with respect to the transferred
Closing Shares, 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. 

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

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. 

19

 

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 Closing Shares. If any certificate or instrument evidencing any Closing
Shares 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 Closing Shares. 

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. 

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. 

20

  

5.17           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 Page Follows) 

21

  

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

	AMERICAN LORAIN CORPORATION 
	  
	By: /s/ Si Chen         
    
	Name: Si Chen
	Title: Chairman 
	  
	Address for Notice: 
	Beihuan Zhong Road 
	Junan County, Shandong China 
	Attention: Si Chen

22 

  

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

	YIMIN JIN 
	  
	By: /s/ Yimin Jin         
    
	Name: Yimin Jin 
	  
	Address for Notice: 
	Lane 22, No. 209 Tongxin Road 
	Hongkou District, Shanghai, PR China

23 

  

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

	HONGXIANG YU 
	  
	By: /s/ Hongxiang Yu        
    
	Name: Hongxiang Yu 
	  
	Address for Notice: 
	No. 4-157, Zhongni Dingtang Town 
	Xiangshan City, Zhejiang Province, PR China

24American Lorain CORP.: Exhibit 10.3 - Filed by newsfilecorp.com

SHARE EXCHANGE AGREEMENT

This Share Exchange Agreement (this “Agreement”)
is made and entered into as of August 8, 2018 by and among (i) Si Chen
(the “Chairman”), (ii) American Lorain Corporation, a Nevada
corporation (“Pubco”), (iii) Planet Green Holdings Corp., a
British Virgin Islands company (“Planet Green”), (iv) Junan
Hongrun Foodstuff Co., Ltd., a company incorporated in the PRC
(“Junan”), (v) Shandong Lorain Co., Ltd., a company
incorporated in the PRC (“Shandong Lorain”), (vi) International
Lorain Holdings, Inc., a Cayman Islands company (“ILH”), (vii)
Shandong Greenpia Foodstuff Co., Ltd., a business company incorporated in
the PRC (“Shandong Greenpia”), (viii) Beijing Lorain Co.,
Ltd., a business company incorporated in the PRC (“Beijing
Lorain”) and (ix) Luotian Lorain Co., Ltd., a business company
incorporated in the PRC (“Luotian Lorain”). The Chairman, Pubco,
Planet Green, Junan, Shandong Lorain, ILH, Shandong Greenpia, Beijing Lorain and
Luotian Lorain are sometimes referred to herein individually as a
“Party” and, collectively, as the “Parties”.
Attached hereto as Schedule A is an organizational chart reflecting
Pubco’s corporate structure following the consummation of the transactions
contemplated by this Agreement. 

RECITALS:

WHEREAS, Pubco owns 100%
of the issued and outstanding shares of ILH and wishes to transfer such shares
to the Chairman; 

WHEREAS, ILH owns (i) 100%
of the issued and outstanding shares of Junan, and (ii) 25% of the issued and
outstanding shares of Shandong Lorain (and an additional 55.2% of the issued and
outstanding shares of Shandong Lorain is indirectly held by ILH through Junan),
which shares will be directly owned by ILH, and indirectly owned by the
Chairman, following the transfer of the shares of ILH by Pubco to the Chairman,
and the remaining 19.8% shares of the issued and outstanding shares of Shandong
Lorain will continue to be held by an unrelated third party; 

WHEREAS, Pubco owns 100%
of the issued and outstanding shares of Planet Green, a holding company formed
for the purpose of acquiring the Planet Green Shares (defined below) that
currently holds no assets; 

WHEREAS, ILH owns (i) 50%
of the issued and outstanding shares of Shandong Greenpia (and the remaining 50%
of the issued and outstanding shares of Shandong Greenpia is indirectly held by
ILH through Junan), (ii) 30% of Beijing Lorain (and the remaining 70% of the
issued and outstanding shares of Beijing Lorain is held indirectly by ILH
through Junan) and (iii) 100% of the issued and outstanding shares of Luotian
Lorain, which shares will be directly owned by Planet Green, and indirectly
Pubco (collectively, the “Planet Green Shares”), following the
transfer of the Planet Green Shares by ILH to Planet Green; 

WHEREAS, Junan owns (i)
55.2% of the issued and outstanding shares of Shandong Lorain, (ii) 100% of the
issued and outstanding shares of Dongguan Lorain Co., Ltd., a company
incorporated in the PRC (“Dongguan”), (iii) 51% of the issued and
outstanding shares of Athena, a limited liability company organized under the
laws of France (“Athena”), (iv) 50% of the issued and outstanding
shares of Shandong Greenpia and (v) 70% of the issued and outstanding shares of
Beijing Lorain, which shares will be indirectly owned by ILH through its
ownership of Junan, and indirectly owned by the Chairman through his ownership
of ILH, following the transfer of the shares of ILH by Pubco to the Chairman;

WHEREAS, ILH desires to
sell to Planet Green, and Planet Green desires to purchase from ILH, all of the
Planet Green Shares, subject to the terms and conditions set forth herein (the
“Exchange Transaction”);

WHEREAS, immediately
following the Exchange Transaction, Pubco desires to sell to the Chairman, and
the Chairman desires to purchase from Pubco, all of the issued and outstanding
shares of ILH, subject to the terms and conditions set forth herein (the
“Sale Transaction”); 

WHEREAS, following the
consummation of the Sale Transaction and the Exchange Transaction, Pubco will
continue to own (i) 50% of the issued and outstanding shares of Shandong
Greenpia, (ii) 30% of Beijing Lorain and (iii) 100% of the issued and
outstanding shares of Luotian Lorain, which shares will be directly owned by
Planet Green, and indirectly by Pubco; 

WHEREAS, as
previously disclosed by Pubco in Pubco’s filings with the Securities and
Exchange Commission, the operations of Junan, Shandong Lorain, Dongguan and
Athena have ceased and each such entity has significant outstanding debts; 

WHEREAS, the Chairman is
personally liable to repay the outstanding debts of Junan, Shandong Lorain and
Dongguan;

WHEREAS, Athena
is no longer a consolidated subsidiary of Pubco;

WHEREAS, Pubco is not
liable to repay the outstanding debts of Junan, Shandong Lorain, Dongguan and
Athena; 

WHEREAS, following the
consummation of the Sale Transaction and the Exchange Transaction, the Chairman
will continue to be liable to repay the outstanding debts of Junan, Shandong
Lorain, and Dongguan; 

WHEREAS, following the
consummation of the Sale Transaction and the Exchange Transaction, neither Pubco
nor any of Pubco’s then Affiliates will be liable to repay the outstanding debts
of Junan, Shandong Lorain, Dongguan and Athena; and 

WHEREAS, following the
consummation of the Sale Transaction and the Exchange Transaction, the financial
statements of Pubco will no longer reflect the discontinued operations of Junan,
Shandong Lorain and Dongguan. 

NOW, THEREFORE, in
consideration of the premises set forth above, which are incorporated in this
Agreement as if fully set forth below, and the representations, warranties,
covenants and agreements contained in this Agreement, and intending to be
legally bound hereby, the Parties hereto agree as follows: 

ARTICLE I 
THE SHARE EXCHANGE

1.1           Exchange
Transaction. At the Closing and subject to and upon the terms and conditions
of this Agreement, in exchange for $100.00 and other good and valuable
consideration, ILH shall sell, transfer, convey, assign and deliver to Planet
Green, a wholly owned subsidiary of Pubco, and Planet Green shall purchase,
acquire and accept from ILH, all of the Planet Green Shares, free and clear of
all Liens (other than potential restrictions on resale under applicable
securities Laws). 

1.2           Sale
Transaction. At the Closing (as hereinafter defined), immediately following
the consummation of the Exchange Transaction, and subject to and upon the terms
and conditions of this Agreement, in exchange for $100.00 and other good and
valuable consideration, Pubco shall sell, transfer, convey, assign and deliver
to the Chairman, and the Chairman shall purchase, acquire and accept from Pubco,
all of the issued and outstanding shares of ILH, free and clear of all Liens
(other than potential restrictions on resale under applicable securities Laws),
as is. Pubco makes no representation or warranty, express or implied, with
respect to the shares of ILH being sold hereunder. 

2

ARTICLE II 
CLOSING; CLOSING
CONDITIONS

2.1          
Closing. Subject to the satisfaction or waiver of the conditions set
forth in Article III, the consummation of the transactions contemplated
by this Agreement (the “Closing”), including the Exchange
Transaction and, immediately thereafter, the Sale Transaction, shall take place
at Beihuan Road Junan County, Shandong, China 276600, on the date hereof, or at
such other date, time or place as the Parties may agree (the date and time at
which the Closing is actually held being the “Closing Date”). 

2.2           Closing
Conditions.

(a)
          The Sale Transaction
and the Exchange Transaction shall have been approved by the requisite vote of
the shareholders of Pubco at the 2018 annual meeting of shareholders in
accordance with the terms of the proxy statement to be filed with the U.S.
Securities and Exchange Commission and mailed to Pubco’s shareholders in
connection therewith. 

(b)           The
board of directors of Pubco (the “Board”) shall have received a
fairness opinion from Joseph Stone Capital, LLC (or such other financial advisor
as approved by the Board). 

ARTICLE III
REPRESENTATIONS AND
WARRANTIES

The
Chairman and ILH hereby jointly and severally represent and warrant to Pubco and
its Affiliates as follows: 3.1 Governmental Approvals. No Consent of or
with any Governmental Authority is required to be obtained or made in connection
with the execution, delivery or performance of this Agreement or the
consummation of the transactions contemplated hereby, other than (a) such
filings as may be required in any jurisdiction in which such Party is qualified
or authorized to do business as a foreign corporation in order to maintain such
qualification or authorization, (b) such filings as contemplated by this
Agreement, (c) any filings required with NYSE American with respect to the
transactions contemplated by this Agreement, or (d) applicable requirements, if
any, of the Securities Act of 1933, as amended, the Securities Exchange Act of
1934, as amended, and/ or any state “blue sky” securities laws, and the rules
and regulations thereunder. 

3.2           Non-Contravention.
The execution and delivery by each Party of this Agreement and the consummation
of the transactions contemplated hereby, and compliance with any of the
provisions hereof, will not (a) conflict with or violate any provision of the
Organizational Documents of such Party (if any), (b) conflict with or violate
any Law, Order or Consent applicable to such Party or any of its properties or
assets, or (c) (i) violate, conflict with or result in a breach of, (ii)
constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, (iii) result in the termination, withdrawal,
suspension, cancellation or modification of, (iv) accelerate the performance required by such Party under, (v) result in a right of
termination or acceleration under, (vi) give rise to any obligation to make
payments or provide compensation under, (vii) result in the creation of any lien
upon any of the properties or assets of such Party under, (viii) give rise to
any obligation to obtain any third party consent or provide any notice to any
Person or (ix) give any Person the right to declare a default, exercise any
remedy, claim a rebate, chargeback, penalty or change in delivery schedule,
accelerate the maturity or performance, cancel, terminate or modify any right,
benefit, obligation or other term under, any of the terms, conditions or
provisions of, any material contract of such Party. 

3.3           Pubco
  Assets and Liabilities. On the Closing Date, after giving effect to the Sale
  Transaction and the Exchange Transaction, Pubco and its Affiliates shall have no
liabilities relating to Junan, Shandong Lorain, Dongguan or Athena. 

3

ARTICLE IV 
TERMINATION AND
EXPENSES

4.1           Termination.
This Agreement may be terminated and the transactions contemplated hereby may be
abandoned at any time prior to the Closing as follows: 

(a)           by
mutual written consent of the Chairman and Pubco; or 

(b)           by
written notice by either the Chairman or Pubco if a Governmental Authority of
competent jurisdiction shall have issued an Order or taken any other action
permanently restraining, enjoining or otherwise prohibiting the transactions
contemplated by this Agreement, and such Order or other action has become final
and non-appealable; provided, however, that the right to terminate
this Agreement pursuant to this Section 4.1(b) shall not be available to
a Party if the failure by such Party or its Affiliates to comply with any
provision of this Agreement has been a substantial cause of, or substantially
resulted in, such action by such Governmental Authority. 

4.2           Effect
of Termination. This Agreement may only be terminated in the circumstances
described in Section 4.1 and pursuant to a written notice delivered by
the applicable Party to the other applicable Parties, which sets forth the basis
for such termination, including the provision of Section 4.1 under which
such termination is made. In the event of the valid termination of this
Agreement pursuant to Section 4.1, this Agreement shall forthwith become
void, and there shall be no Liability on the part of any Party or any of their
respective Representatives, and all rights and obligations of each Party shall
cease, and nothing herein shall relieve any Party from Liability for any willful
breach of any representation, warranty, covenant or obligation under this
Agreement or any Fraud Claim against such Party, in either case, prior to
termination of this Agreement. Without limiting the foregoing, and except as
provided in this Article IV4.3, the Parties’ sole right prior to the
Closing with respect to any breach of any representation, warranty, covenant or
other agreement contained in this Agreement by another Party or with respect to
the transactions contemplated by this Agreement shall be the right, if
applicable, to terminate this Agreement pursuant to Section 4.1. 

4.3           Fees
and Expenses. All Expenses incurred in connection with this Agreement and
the transactions contemplated hereby shall be paid by the Party incurring such
expenses. As used in this Agreement, “Expenses” shall include all
out-of-pocket expenses (including all fees and expenses of counsel, accountants,
investment bankers, financial advisors, financing sources, experts and
consultants to a Party hereto or any of its Affiliates) incurred by a Party or
on its behalf in connection with or related to the authorization, preparation,
negotiation, execution or performance of this Agreement or any Ancillary
Document related hereto and all other matters related to the consummation of
this Agreement.

4

ARTICLE V
RELEASES 

5.1           Release
and Covenant Not to Sue. Effective as of the Closing, to the fullest extent
permitted by applicable Law, the Chairman, on behalf of himself and his
Affiliates, and ILH, on behalf of itself and its Affiliates (collectively, the
“Releasing Persons”), will release and discharge Pubco and its
Affiliates from and against any and all Actions, obligations, agreements, debts
and Liabilities whatsoever, whether known or unknown, both at law and in equity,
which such Releasing Person now has, has ever had or may hereafter have against
Pubco or its Affiliates arising on or prior to the Closing Date or on account of
or arising out of any matter occurring on or prior to the Closing Date,
including any rights to indemnification or reimbursement from Pubco or its
Affiliates, whether pursuant to its Organizational Documents, Contract or
otherwise, and whether or not relating to claims pending on, or asserted after,
the Closing Date. From and after the Closing, each Releasing Person hereby
irrevocably covenants to refrain from, directly or indirectly, asserting any
Action, or commencing or causing to be commenced, any Action of any kind against
Pubco or its Affiliates, based upon any matter purported to be released hereby.
Notwithstanding anything herein to the contrary, the releases and restrictions
set forth herein shall not apply to any claims a Releasing Person may have
against any party pursuant to the terms and conditions of this Agreement. 

ARTICLE VI 
SURVIVAL AND
INDEMNIFICATION

6.1           Survival.
All representations and warranties of the Chairman and ILH contained in this
Agreement (including all schedules and exhibits hereto and all certificates,
documents, instruments and undertakings furnished pursuant to this Agreement)
shall survive the Closing through and until the second (2nd)
anniversary of the Closing Date. Additionally, Fraud Claims against the Chairman
or ILH shall survive indefinitely. If written notice of a claim for breach of
any representation or warranty has been given before the applicable date when
such representation or warranty no longer survives in accordance with this
Section 6.1, then the relevant representations and warranties shall survive as
to such claim, until the claim has been finally resolved. All covenants,
obligations and agreements of the Chairman and ILH contained in this Agreement
(including all schedules and exhibits hereto and all certificates, documents,
instruments and undertakings furnished pursuant to this Agreement), including
any indemnification obligations, shall survive the Closing and continue until
fully performed in accordance with their terms. For the avoidance of doubt, a
claim for indemnification under any subsection of Section 6.2 other than clauses
(i) or (ii) thereof may be made at any time. 

6.2          
Indemnification by the Chairman and ILH. Subject to the terms and
conditions of this Article VI, from and after the Closing, the Chairman and ILH
and their respective successors and assigns (with respect to any claim made
under this Section 6.26.2, the “Indemnifying Parties”) will
jointly and severally indemnify, defend and hold harmless Pubco and its
Affiliates and their respective officers, directors, managers, employees,
successors and permitted assigns (with respect to any claim made under this
Section 6.2, the “Indemnified Parties”) from and against any and
all losses, Actions, Orders, Liabilities, damages (including consequential
damages), diminution in value, Taxes, interest, penalties, Liens, amounts paid
in settlement, costs and expenses (including reasonable expenses of
investigation and court costs and reasonable attorneys’ fees and expenses), (any
of the foregoing, a “Loss”) paid, suffered or incurred by, or
imposed upon, any Indemnified Party to the extent arising in whole or in part
out of or resulting directly or indirectly from (whether or not involving a
Third Party Claim): (i) the breach of any representation or warranty made by the
Chairman or ILH set forth in this Agreement or in any certificate delivered by
the Chairman or ILH pursuant to this Agreement; (ii) the breach of any covenant
or agreement on the part of Chairman or ILH set forth in this Agreement or in
any certificate delivered by Chairman or ILH pursuant to this Agreement; (iii) any Action by
Person(s) who were holders of equity securities of Pubco, including options,
warrants, convertible debt or other convertible securities or other rights to
acquire equity securities of Pubco, prior to the Closing arising out of the
sale, purchase, termination, cancellation, expiration, redemption or conversion
of any such securities; or (iv) any Fraud Claims. 

5

6.3           Limitations
and General Indemnification Provisions. 

(a)           Solely
for purposes of determining the amount of Losses under this Article VI
(and, for the avoidance of doubt, not for purposes of determining whether
there has been a breach giving rise to the indemnification claim), all of the
representations, warranties and covenants set forth in this Agreement (including
the disclosure schedules hereto) or any Ancillary Document that are qualified by
materiality or words of similar import or effect will be deemed to have been
made without any such qualification. 

(b)           No
investigation or knowledge by an Indemnified Party its Representatives of a
breach of a representation, warranty, covenant or agreement of an Indemnifying
Party shall affect the representations, warranties, covenants and agreements of
the Indemnifying Party or the recourse available to the Indemnified Parties
under any provision of this Agreement, including this Article VI, with
respect thereto. 

(c)          
The amount of any Losses suffered or incurred by any Indemnified Party shall be
reduced by the amount of any insurance proceeds paid to the Indemnified Party or
any Affiliate thereof as a reimbursement with respect to such Losses (and no
right of subrogation shall accrue to any insurer hereunder, except to the extent
that such waiver of subrogation would prejudice any applicable insurance
coverage), net of the costs of collection and the increases in insurance
premiums resulting from such Loss or insurance payment. 

6.4           Indemnification
Procedures. 

(a)           Yimin
Jin (the “Pubco Representative”) shall have the sole right to act
on behalf of the Indemnified Parties with respect to any indemnification claims
made pursuant to this Article VI, including bringing and settling any
claims hereunder and receiving any notices on behalf of the Indemnified Parties.
The Chairman (the “Indemnifying Representative”) shall have the
sole right to act on behalf of the Indemnifying Parties with respect to any
indemnification claims made pursuant to this Article VI, including
defending and settling any claims hereunder and receiving any notices on behalf
of the Indemnifying Parties. 

(b)           In
order to make a claim for indemnification hereunder, the Pubco Representative on
behalf of an Indemnified Party must provide written notice (a “Claim
Notice”) of such claim to the Indemnifying Representative on behalf of
the Indemnifying Parties, which Claim Notice shall include (i) a reasonable
description of the facts and circumstances which relate to the subject matter of
such indemnification claim to the extent then known and (ii) the amount of
Losses suffered by the Indemnified Party in connection with the claim to the
extent known or reasonably estimable (provided, that the Pubco Representative
may thereafter in good faith adjust the amount of Losses with respect to the
claim by providing a revised Claim Notice to Indemnifying Representative). 

(c)           In
the case of any claim for indemnification under this Article VI arising
from a claim of a third party (including any Governmental Authority) (a
“Third Party Claim”), the Pubco Representative must give a Claim
Notice with respect to such Third Party Claim to the Indemnifying Representative
promptly (but in no event later than thirty (30) days) after the Indemnified
Party’s receipt of notice of such Third Party Claim; provided, that the
failure to give such notice will not relieve the Indemnifying Party of its
indemnification obligations except to the extent that the defense of such Third
Party Claim is materially and irrevocably prejudiced by the failure to give such
notice. The Indemnifying Representative will have the right to defend and to
direct the defense against any such Third Party Claim, at its expense and with
counsel selected by Indemnifying Representative, unless (i) the Indemnifying
Representative fails to acknowledge fully to the Pubco Representative the
obligations of the Indemnifying Parties to such Indemnified Party within twenty
(20) days after receiving notice of such Third Party Claim or contests, in whole
or in part, its indemnification obligations therefor or (ii) at any time while
such Third Party Claim is pending, (A) there is a conflict of interest between
the Indemnifying Representative on behalf of the Indemnifying Parties and the
Pubco Representative on behalf of the Indemnified Party in the conduct of such
defense, (B) the applicable third party alleges a Fraud Claim or (C) such claim
is criminal in nature, could reasonably be expected to lead to criminal
proceedings, or seeks an injunction or other equitable relief against the
Indemnified Parties. If the Indemnifying Representative on behalf of the
Indemnifying Parties elects, and is entitled, to compromise or defend such Third
Party Claim, it will within twenty (20) days (or sooner, if the nature of the
Third Party Claim so requires) notify the Pubco Representative of its intent to
do so, and Indemnifying Representative and the Indemnified Party will, at the
request and expense of Indemnifying Representative, cooperate in the defense of
such Third Party Claim. If Indemnifying Representative on behalf of the
Indemnifying Parties elects not to, or at any time is not entitled under this Section 6.4 to, compromise or defend such Third Party Claim, fails to
notify the Pubco Representative of its election as herein provided or refuses to
acknowledge or contests its obligation to indemnify under this Agreement, the
Pubco Representative on behalf of the Indemnified Party may pay, compromise or
defend such Third Party Claim. Notwithstanding anything to the contrary
contained herein, the Indemnifying Parties will have no indemnification
obligations with respect to any such Third Party Claim which is settled by the
Indemnified Party or the Pubco Representative without the prior written consent
of Indemnifying Representative on behalf of the Indemnifying Parties (which
consent will not be unreasonably withheld, delayed or conditioned); provided, however, that notwithstanding the foregoing, the
Indemnified Party will not be required to refrain from paying any Third Party
Claim which has matured by a final, non-appealable Order, nor will it be
required to refrain from paying any Third Party Claim where the delay in paying
such claim would result in the foreclosure of a Lien upon any of the property or
assets then held by the Indemnified Party or where any delay in payment would
cause the Indemnified Party material economic loss. The Indemnifying
Representative’s right on behalf of the Indemnifying Parties to direct the
defense will include the right to compromise or enter into an agreement settling
any Third Party Claim; provided, that no such compromise or settlement
will obligate the Indemnified Party to agree to any settlement that requires the
taking or restriction of any action (including the payment of money and
competition restrictions) by the Indemnified Party other than the execution of a
release for such Third Party Claim and/or agreeing to be subject to customary
confidentiality obligations in connection therewith, except with the prior
written consent of the Pubco Representative on behalf of the Indemnified Party
(such consent to be withheld, conditioned or delayed only for a good faith
reason). Notwithstanding the Indemnifying Representative’s right on behalf of
the Indemnifying Parties to compromise or settle in accordance with the
immediately preceding sentence, Indemnifying Representative on behalf of
Indemnifying Parties may not settle or compromise any Third Party Claim over the
objection of the Pubco Representative on behalf of the Indemnified Party;
provided, however, that consent by the Pubco Representative on behalf of the
Indemnified Party to settlement or compromise will not be unreasonably withheld,
delayed or conditioned. The Pubco Representative on behalf of the Indemnified
Party will have the right to participate in the defense of any Third Party Claim
with counsel selected by it subject to the Indemnifying Representative’s right
on behalf of the Indemnifying Parties to direct the defense. 

6

(d)           With
  respect to any direct indemnification claim that is not a Third Party Claim, the
  Indemnifying Representative on behalf of the Indemnifying Parties will have a
  period of thirty (30) days after receipt of the Claim Notice to respond thereto.
If Indemnifying Representative on behalf of Indemnifying Parties does not respond within such thirty (30)
days, Indemnifying Representative on behalf of Indemnifying Parties will be
deemed to have accepted responsibility for the Losses set forth in such Claim
Notice subject to the limitations on indemnification set forth in this
  Article VI and will have no further right to contest the validity of such
Claim Notice. If Indemnifying Representative on behalf of Indemnifying Parties
responds within such thirty (30) days after the receipt of the Claim Notice and
rejects such claim in whole or in part, the Pubco Representative on behalf of
the Indemnified Party will be free to pursue such remedies as may be available
under this Agreement, any Ancillary Documents or applicable Law. 

6.5          
Exclusive Remedy. From and after the Closing, except with respect to
Fraud Claims related to the negotiation or execution of this Agreement or claims
seeking injunctions or specific strict performance, indemnification pursuant to
this Article VI shall be the sole and exclusive remedy for the Parties
with respect to matters arising under this Agreement of any kind or nature,
including for any misrepresentation or breach of any warranty, covenant, or
other provision contained in this Agreement or in any certificate or instrument
delivered pursuant to this Agreement or otherwise relating to the subject matter
of this Agreement, including the negotiation and discussion thereof. 

7

ARTICLE VII 
MISCELLANEOUS

7.1          
Binding Effect; Assignment. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the Parties hereto and
their respective successors and permitted assigns. This Agreement shall not be
assigned by operation of Law or otherwise without the prior written consent of
the Parties, and any assignment without such consent shall be null and void;
provided that no such assignment shall relieve the assigning Party of its
obligations hereunder. 

7.2           Third
Parties. Nothing contained in this Agreement or in any instrument or
document executed by any party in connection with the transactions contemplated
hereby shall create any rights in, or be deemed to have been executed for the
benefit of, any Person that is not a Party hereto or thereto or a successor or
permitted assign of such a Party. 

7.3           Governing
Law; Jurisdiction. This Agreement shall be governed by, construed and
enforced in accordance with the Laws of the State of New York without regard to
the conflict of laws principles thereof. All Actions arising out of or relating
to this Agreement shall be heard and determined exclusively in any federal or
state court located in New York City (or in any court in which appeal from such
courts may be taken) (the “Specified Courts”). Each Party hereto
hereby (a) submits to the exclusive jurisdiction of any Specified Court for the
purpose of any Action arising out of or relating to this Agreement brought by
any Party hereto and (b) irrevocably waives, and agrees not to assert by way of
motion, defense or otherwise, in any such Action, any claim that it is not
subject personally to the jurisdiction of the above-named courts, that its
property is exempt or immune from attachment or execution, that the Action is
brought in an inconvenient forum, that the venue of the Action is improper, or
that this Agreement or the transactions contemplated hereby may not be enforced
in or by any Specified Court. Each Party agrees that a final judgment in any
Action shall be conclusive and may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by Law. Each Party irrevocably
consents to the service of the summons and complaint and any other process in
any other action or proceeding relating to the transactions contemplated by this
Agreement, on behalf of itself, or its property, by personal delivery of copies
of such process to such Party at such Party’s place of business. Nothing in this
Section 4.3 shall affect the right of any Party to serve legal process in
any other manner permitted by Law. 

8

7.4          
Severability. In case any provision in this Agreement shall be held
invalid, illegal or unenforceable in a jurisdiction, such provision shall be
modified or deleted, as to the jurisdiction involved, only to the extent
necessary to render the same valid, legal and enforceable, and the validity,
legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired thereby nor shall the validity, legality or
enforceability of such provision be affected thereby in any other jurisdiction.
Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the Parties will substitute for any invalid,
illegal or unenforceable provision a suitable and equitable provision that
carries out, so far as may be valid, legal and enforceable, the intent and
purpose of such invalid, illegal or unenforceable provision. 

7.5           Amendment.
This Agreement may be amended, supplemented or modified only by execution of a
written instrument signed by the Parties. 

7.6           Entire
Agreement. This Agreement and the documents or instruments referred to
herein, including any exhibits, annexes and schedules attached hereto, which
exhibits, annexes and schedules are incorporated herein by reference, embody the
entire agreement and understanding of the Parties hereto in respect of the
subject matter contained herein. There are no restrictions, promises,
representations, warranties, covenants or undertakings, other than those
expressly set forth or referred to herein or the documents or instruments
referred to herein, which collectively supersede all prior agreements and the
understandings among the Parties with respect to the subject matter contained
herein.

7.7           Counterparts.
This Agreement may be executed and delivered (including by facsimile or other
electronic transmission) in one or more counterparts, and by the different
Parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement. 

ARTICLE VIII
DEFINITIONS

8.1           Certain
Definitions. For purpose of this Agreement, the following capitalized terms
have the following meanings: “Action” means any notice of
noncompliance or violation, or any claim, demand, charge, action, suit,
litigation, audit, settlement, complaint, stipulation, assessment or
arbitration, or any request (including any request for information), inquiry,
hearing, proceeding or investigation, by or before any Governmental Authority.

“Affiliate” means, with respect to any Person, any other Person
directly or indirectly Controlling, Controlled by, or under common Control with
such Person.

“Consent”
means any consent, approval, waiver, authorization or Permit of, or notice to or
declaration or filing with any Governmental Authority or any other Person. 

“Contracts” means all contracts, agreements, binding arrangements,
bonds, notes, indentures, mortgages, debt instruments, purchase order, licenses,
franchises, leases and other instruments or obligations of any kind, written or
oral (including any amendments and other modifications thereto). 

“Control” of a Person means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract, or otherwise. “Controlled”, “Controlling” and “under common Control
with” have correlative meanings. Without limiting the foregoing a Person (the
“Controlled Person”) shall be deemed Controlled by (a) any other Person (the
“10% Owner”) (i) owning beneficially, as meant in Rule 13d-3 under
the Exchange Act, securities entitling such Person to cast ten percent (10%) or
more of the votes for election of directors or equivalent governing authority of
the Controlled Person or (ii) entitled to be allocated or receive ten percent
(10%) or more of the profits, losses, or distributions of the Controlled Person;
(b) an officer, director, general partner, partner (other than a limited
partner), manager, or member (other than a member having no management authority
that is not a 10% Owner) of the Controlled Person; or (c) a spouse, parent,
lineal descendant, sibling, aunt, uncle, niece, nephew, mother-in-law,
father-in-law, sister-in-law, or brother-in-law of an Affiliate of the
Controlled Person or a trust for the benefit of an Affiliate of the Controlled
Person or of which an Affiliate of the Controlled Person is a trustee. 

9

“Fraud
  Claim” means any claim based in whole or in part upon fraud, willful
misconduct or intentional misrepresentation. 

“Governmental Authority” means any federal, state, local, foreign
or other governmental, quasi-governmental or administrative body,
instrumentality, department or agency or any court, tribunal, administrative
hearing body, arbitration panel, commission, or other similar dispute-resolving
panel or body. 

“Law”
means any federal, state, local, municipal, foreign or other law, statute,
legislation, principle of common law, ordinance, code, edict, decree,
proclamation, treaty, convention, rule, regulation, directive, requirement,
writ, injunction, settlement, Order or Consent that is or has been issued,
enacted, adopted, passed, approved, promulgated, made, implemented or otherwise
put into effect by or under the authority of any Governmental Authority. 

“Liabilities”
means any and all liabilities, indebtedness, Actions or obligations of any
nature (whether absolute, accrued, contingent or otherwise, whether known or
unknown, whether direct or indirect, whether matured or unmatured and whether
due or to become due), including tax liabilities due or to become due. 

“Lien”
means any mortgage, pledge, security interest, attachment, right of first
refusal, option, proxy, voting trust, encumbrance, lien or charge of any kind
(including any conditional sale or other title retention agreement or lease in
the nature thereof), restriction (whether on voting, sale, transfer, disposition
or otherwise), any subordination arrangement in favor of another Person, any
filing or agreement to file a financing statement as debtor under the Uniform
Commercial Code or any similar Law. 

“Order”
means any order, decree, ruling, judgment, injunction, writ, determination,
binding decision, verdict, judicial award or other action that is or has been
made, entered, rendered, or otherwise put into effect by or under the authority
of any Governmental Authority. 

“Organizational Documents” means the Person’s Certificate of
Incorporation and Bylaws or similar organizational documents, in each case, as
amended. 

“Person”
means an individual, corporation, partnership (including a general partnership,
limited partnership or limited liability partnership), limited liability
company, association, trust or other entity or organization, including a
government, domestic or foreign, or political subdivision thereof, or an agency
or instrumentality thereof. 

10

“Representative”
means, as to any Person, such Person’s Affiliates and its and their managers,
directors, officers, employees, agents and advisors (including financial
advisors, counsel and accountants). 

“Taxes”
means (a) all direct or indirect federal, state, local, foreign and other net
income, gross income, gross receipts, sales, use, value-added, ad valorem,
transfer, franchise, profits, license, lease, service, service use, withholding,
payroll, employment, social security and related contributions due in relation
to the payment of compensation to employees, excise, severance, stamp,
occupation, premium, property, windfall profits, alternative minimum, estimated,
customs, duties or other taxes, fees, assessments or charges of any kind
whatsoever, together with any interest and any penalties, additions to tax or
additional amounts with respect thereto, (b) any Liability for payment of
amounts described in clause (a) whether as a result of being a member of an
affiliated, consolidated, combined or unitary group for any period or otherwise
through operation of law and (c) any Liability for the payment of amounts
described in clauses (a) or (b) as a result of any tax sharing, tax group, tax
indemnity or tax allocation agreement with, or any other express or implied
agreement to indemnify, any other Person. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGES
FOLLOW]

11

IN WITNESS WHEREOF, each Party
hereto has caused this Agreement to be signed and delivered by its respective
duly authorized officer as of the date first written above. 

	The Chairman: 
	 	 
	 	             
    /s/ Si Chen
	         	By: Si Chen  
	  	 
	Pubco: 	 
	 	 
	 	 
	AMERICAN LORAIN CORPORATION, 
	a Nevada corporation 
	  	 
	By: 	           
    /s/ Si Chen
	 	Name: Si Chen 
	 	 Title: Chief Executive Officer
	 
	Planet Green: 
	 
	PLANET GREEN HOLDINGS CORP., 
	a British Virgin Islands company 
	 	 
	By: 	           /s/
    Yimin Jin
	 	Name: Yimin Jin
	 	Title: Authorized Person
	Junan: 	 
	 	 
	JUNAN HONGRUN FOODSTUFF CO., LTD., 
	a PRC company 
	 	 
	By: 	          /s/ Si
    Chen
	 	Name: Si Chen  
	 	Title: Authorized Person  

	Shandong Lorain: 
	 
	SHANDONG LORAIN CO., LTD., 
	a PRC company 
	 
	By: 	          /s/ Si Chen
	 	Name: Si Chen
	 	Title: Authorized Person
	 	 
	 	 
	ILH: 
	 	 
	INTERNATIONAL LORAIN HOLDINGS,
      INC., 
	a Cayman Islands company 
	 	 
	 	 
	By: 	            
    /s/ Si Chen
	 	Name: Si Chen
	 	Title: Authorized Person
	 	 
	 	 
	Shandong Greenpia: 
	 	 
	SHANDONG GREENPIA FOODSTUFF CO.,
      LTD., 
	a PRC company 
	 	 
	 	 
	By: 	           /s/ Si Chen
	 	Name: Si Chen
	 	Title: Authorized Person
	 	 
	 	 
	Beijing Lorain: 
	 	 
	BEIJING LORAIN CO., LTD., 
	a PRC company 
	 	 
	 	 
	By: 	           /s/ Si Chen
	 	Name: Si Chen
	 	Title: Authorized Person
	 	 
	 	 
	Luotian Lorain: 
	 	 
	LUOTIAN LORAIN CO., LTD., 
	a PRC company 
	 	 
	 	 
	By: 	         /s/ Si Chen
	 	Name: Si Chen
	 	Title: Authorized Person

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