Document:

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”) is dated as of June 19, 2013 by and among China Health Resource,
Inc., a Delaware corporation (the “Company”), and Xingguo Deng, the purchasers identified on the signature pages
hereto and such purchasers’ respective successors and assigns (individually, a “Purchaser” and collectively,
the “Purchasers”).

 

The
parties hereto agree as follows:

 

ARTICLE
I.

 

PURCHASE
AND SALE OF COMMON STOCK

 

Section
1.01 Purchase and Sale of Stock. Upon the following terms and conditions, the Company shall issue and sell to Purchaser,
and Purchaser shall purchase from the Company, that total number of 50,000,000 shares of the Company’s common stock, (the
“Common Stock”), as is set forth on each such Purchaser’s signature page hereto (collectively, the “Shares”),
at a price per share equal to $0.007 (the “Per Share Purchase Price,” and such amounts in the aggregate, the
“Purchase Price”). The Company and the Purchasers are executing and delivering this Agreement in accordance
with and in reliance that the undersigned understands that the Shares are being issued pursuant to the exemption from the registration
requirements of the United States Securities Act of 1933, as amended (the "Securities Act"), provided by Section
4(2), Regulation D Rule 506 and Regulation S of such Securities Act. As such, the Shares are only being offered and sold to investors
who qualify as “accredited investors," and a limited number of sophisticated investors and the Company is relying on
the representations made by the undersigned in this Agreement that the undersigned qualifies as such an accredited or sophisticated
investor. The offer and sale of the securities must be made in an offshore transaction with no directed selling efforts in, or
into, the United States of the securities offered. The shares of common stock are "restricted securities" for purposes
of the United States securities laws and cannot be transferred except as permitted under these laws.

 

Section
1.02 Closing.

 

(a)
Subject to the terms and conditions hereinafter set forth, the Purchaser hereby subscribes
for and agrees to purchase from the Company, and the Company subject to its rights to accept or reject this subscription, agrees
to sell to such Purchaser, such number of Shares for the Purchase Price as is set forth on such Purchaser’s signature page
hereto. The Purchaser shall deliver to the Company, via wire transfer or a certified check of immediately available funds equal
to its subscription amount as is set forth on such Purchaser’s signature page hereto and the Company shall deliver to each
Purchaser its respective Shares as determined pursuant to Section 1.02 (b), and the Company and each Purchaser shall deliver the
other items set forth in Section 1.02 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in
Sections 2.01 and 2.02, the Closing shall occur at the offices of the Company or such other location as the parties shall mutually
agree.

 

(b)
Deliveries.

    	 

    	 

    

(i)On
or prior to the July 19, 2013 (the “Closing Date”), the Company shall deliver or cause to be delivered to each Purchaser
the following:

 

(aa)this
Agreement duly executed by the Company;

 

(bb)a
copy of the irrevocable instructions to the Company’s transfer agent instructing the transfer agent to deliver via the Depository
Trust Company Deposit Withdrawal Agent Commission System (“DWAC”) Shares equal to such Purchaser’s Subscription
Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(ii)Prior
to no less than three (3) days on which the principal Trading Market as defined in Section 3.04 is open for trading before Closing
Date, the Purchaser shall deliver or cause to be delivered to the Company the following:

 

(aa)this
Agreement duly executed by such Purchaser; and

 

(bb)such
Purchaser’s Subscription Amount by wire transfer to the account as specified in writing by the Company.

 

ARTICLE
II.

 

REPRESENTATIONS
AND WARRANTIES

 

Section
2.01 Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchasers, as of
the date hereof, as follows:

 

(a) Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of  Delaware and has full corporate power and authority to own and use its properties and its assets
and conduct its business as currently conducted. Each of the Company’s subsidiaries identified in Company’s SEC
Reports (the “Subsidiaries”) is an entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation with the requisite corporate power and authority to own and use its
properties and assets and to conduct its business as currently conducted. Neither the Company, nor any of its Subsidiaries is
in violation of any of the provisions of their respective articles of incorporation, by-laws or other organizational or
charter documents, including, but not limited to the Charter Documents (as defined below). Each of the Company and its
Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation 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, would not result in a direct and/or indirect (i) material
adverse effect on the legality, validity or enforceability of any of the Securities and/or this Agreement, (ii) material
adverse effect on the results of operations, assets, business, condition (financial and other) or prospects of the Company
and its Subsidiaries, taken as a whole, or (iii) material adverse effect on the Company’s ability to perform in any
material respect on a timely basis its obligations under the Transaction Documents (any of (i), (ii) or (iii), a
“Material Adverse Effect”).

 

    	 

    	 

    

(b) Capitalization and Voting Rights. The authorized,
issued and outstanding capital stock of the Company is as set forth in Company’s SEC Reports and all issued and outstanding
shares of capital stock of the Company are validly issued, fully paid and nonassessable. Except as set forth in Company’s
SEC Reports, (i) there are no outstanding securities of the Company or any of its Subsidiaries which contain any preemptive, redemption
or similar provisions, nor is any holder of securities of the Company or any Subsidiary entitled to preemptive or similar rights
arising out of any agreement or understanding with the Company or any Subsidiary by virtue of any of the Transaction Documents,
and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or
may become bound to redeem a security of the Company or any of its Subsidiaries; (ii) neither the Company nor any Subsidiary has
any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement; and (iii) except
as set forth in Company’s SEC Reports, there are no outstanding options, warrants, agreements, convertible securities, preemptive
rights or other rights to subscribe for or to purchase or acquire, any shares of capital stock of the Company or any Subsidiary
or contracts, commitments, understandings, or arrangements by which the Company or any Subsidiary is or may become bound to issue
any shares of capital stock of the Company or any Subsidiary, or securities or rights convertible or exchangeable into shares
of capital stock of the Company or any Subsidiary. Except as set forth in Company’s SEC Reports, and as otherwise required
by law, there are no restrictions upon the voting or transfer of any of the shares of capital stock of the Company pursuant to
the Company’s Charter Documents or other governing documents or any agreement or other instruments to which the Company
is a party or by which the Company is bound. All of the issued and outstanding shares of capital stock of the Subsidiaries are
validly issued, fully paid and nonassessable and are owned by the Company, free and clear of any mortgages, pledges, liens, claims,
charges, encumbrances or other restrictions (collectively, “Encumbrances”). All of such outstanding capital
stock has been issued in compliance in all material respects with applicable federal and state securities laws. The issuance and
sale of the Securities and, upon issuance, the Shares, as contemplated hereby will not obligate the Company to issue shares of
Common Stock or other securities to any other person (other than the Purchasers) and except as set forth in Company’s SEC
Reports will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security. The
Company does not have outstanding shareholder purchase rights or “poison pill” or any similar arrangement in effect
giving any person the right to purchase any equity interest in the Company upon the occurrence of certain events.

 

(c)
Authorization; Enforceability. The Company has the requisite corporate right, power and authority to enter into, execute
and deliver this Agreement and each other agreement, document, instrument and certificate to be executed by the Company in connection
with the consummation of the transactions contemplated hereby (collectively referred to as the “Transaction Documents”),
and to perform fully its obligations hereunder and thereunder. All necessary corporate action on the part of the Company, its
directors and shareholders necessary for the (a) authorization execution, delivery and performance of this Agreement and the other
Transaction Documents by the Company; and (b) authorization, sale, issuance and delivery of the Securities and upon issuance,
the Shares contemplated hereby and the performance of the Company’s obligations under this Agreement and the other Transaction
Documents has been taken. This Agreement and the other Transaction Documents have been duly executed and delivered by the Company
and each constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with
its respective terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and
rules of law governing specific performance, injunctive relief or other equitable remedies, and to limitations of public policy.
The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will
be duly and validly issued, fully paid and nonassessable, free and clear of all Encumbrances imposed by the Company other than
restrictions on transfer pursuant to applicable law or otherwise provided for in the Transaction Documents.

 

(d)
No Conflict; Governmental Consents.

 

(i)
The execution and delivery by the Company of this Agreement and the other Transaction Documents, the issuance and sale of the
Securities and the consummation of the other transactions contemplated hereby or thereby do not and will not (i) result in
the violation of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental
authority to or by which the Company is bound including without limitation all foreign, federal, state and local laws
applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably
be expected to result in a Material Adverse Effect, (ii) conflict with or violate any provision of the
Company’s Amended and Restated Articles of Incorporation, as amended (the “Articles”) or the Amended
and Revised Bylaws, (and collectively with the Articles, the “Charter Documents”) of the Company, or (iii)
conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute (with or without due
notice or lapse of time or both) a default or give to others any rights of termination, amendment, acceleration or
cancellation (with or without due notice, lapse of time or both) under any agreement, credit facility, lease, loan agreement,
mortgage, security agreement, trust indenture or other agreement or instrument to which the Company or any Subsidiary is a
party or by which any of them is bound or to which any of their respective properties or assets is subject, nor result in the
creation or imposition of any Encumbrances upon any of the properties or assets of the Company or any Subsidiary, except in
the case of each of clauses (i) and (iii), such as could not have or reasonably be expected to result in a Material Adverse
Effect.

 

(ii)
No vote, approval or consent of any holder of capital stock of the Company or any other third parties is required to be obtained
by the Company in connection with the authorization, execution, delivery and performance of this Agreement and the other Transaction
Documents or in connection with the authorization, issue and sale of the Securities, except
as has been previously obtained.

 

(iii)
No consent, approval, authorization or other order of any governmental authority or any other person is required to be obtained
by the Company in connection with the authorization, execution, delivery and performance of this Agreement and the other Transaction
Documents or in connection with the authorization, issue and sale of the Securities, except
such post-sale filings as may be required to be made with the SEC, FINRA and with any state or foreign blue sky or securities regulatory
authority, all of which shall be made when required.

 

    	 

    	 

    

(e)
SEC Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act
and Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d)
thereof, for the twenty-four (24) months preceding the date hereof (or such shorter period as the Company was required by law
to file such reports) (the foregoing materials being collectively referred to herein as the "SEC Reports" and, together
with the exhibits to this Agreement (if any), the "Disclosure Materials") on a timely basis or has timely filed 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 and the rules and regulations of the SEC promulgated thereunder, 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 light of the circumstances under which they were made, not misleading. 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 SEC 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 (“GAAP”) applied on a consistent basis
during the periods involved, except as may be otherwise specified in such financial statements or the footnotes thereto, 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.

 

(f)
Reserved.

 

(g)
Litigation. Except as set forth in the SEC Reports, the Company knows of no pending or threatened legal or governmental
proceedings against the Company or any Subsidiary which could reasonably be expected to have a Material Adverse Effect and thereunder.
Neither the Company nor any Subsidiary is a party or subject to the provisions of any order, writ, injunction, judgment or decree
of any court or government agency or instrumentality which could reasonably be expected to have a Material Adverse Effect. There
is no action, suit, proceeding or investigation by the Company or any Subsidiary currently pending in any court or before any arbitrator
or that the Company or any Subsidiary intends to initiate. Neither the Company nor any Subsidiary, nor any director or officer
thereof, is or since the Company’s most recently filed Annual Report on Form 10-K has been the subject of any action involving
(i) a claim of violation of or liability under federal or state securities laws or (ii) a claim of breach of fiduciary duty. During
the past ten years there has not been, and to the Company’s knowledge, there is not pending or contemplated, any investigation
by the SEC involving the Company or any current or former director or officer of the Company. For purposes of this Agreement, the
term “knowledge” when used with respect to the Company will mean the present, conscious awareness of a particular fact
or matter by the Company’s chief executive officer or chief financial officer.

 

    	 

    	 

    

(h)
Compliance. Except as set forth in the SEC Reports 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 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 could not have or reasonably be expected to result in a Material
Adverse Effect.

 

(i)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where
the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of
any Material Permit.

 

(j)
Investment Company. The Company is not an “investment company” within the meaning of such term under the Investment
Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder.

 

(k)
Brokers. There is no Placement Agents in this transaction and neither the Company nor any of the Company's officers, directors,
employees or shareholders has employed or engaged any broker or finder in connection with the transactions contemplated by this
Agreement and no fee or other compensation is or will be due and owing to any broker, finder, underwriter, placement agent or similar
person other than the Placement Agents in connection with the transactions contemplated by this Agreement. The Company is not party
to any agreement, arrangement or understanding whereby any person other than the Placement Agents has any right to raise funds
and/or place or purchase any debt or equity securities for or on behalf of the Company.

 

(l)
Intellectual Property; Employees.

 

(i)
The Company owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade
secrets, licenses, information and other proprietary rights and processes necessary for its business as now conducted and as presently
proposed to be conducted, without any known infringement of the rights of others as described in the SEC Reports and which the
failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
Except as disclosed the company’s SEC Reports, there are no material outstanding options, licenses or agreements of any kind
relating to the Intellectual Property Rights, nor is the Company bound by or a party to any material options, licenses or agreements
of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information
and other proprietary rights and processes of any other person or entity other than such licenses or agreements arising from the
purchase of “off the shelf” or standard products. The Company has not received any written communications alleging
that the Company has violated or, by conducting its business as presently proposed to be conducted, would violate any Intellectual
Property Rights of any other person or entity. The Company and its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect

 

    	 

    	 

    

(ii)
Except as disclosed in the SEC Reports, the Company is not aware that any of its employees is obligated under any contract (including
licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court
or administrative agency, that would interfere with their duties to the Company or that would conflict with the Company’s
business as presently conducted.

 

(iii)
Reserved.

 

(iv)
To the Company’s knowledge, no employee of the Company, nor any consultant with whom the Company has contracted, is in violation
of any term of any employment contract, proprietary information agreement or any other agreement relating to the right of any
such individual to be employed by, or to contract with, the Company because of the nature of the business conducted by the Company,
which violation would reasonably be expected to result in a Material Adverse Effect; and to the Company’s knowledge the
continued employment by the Company of its present employees, and the performance of the Company’s contracts with its independent
contractors, will not result in any such violation. The Company has not received any written notice alleging that any such violation
has occurred. Except as described in SEC Reports, no employee of the Company has been granted the right to continued employment
by the Company or to any compensation following termination of employment with the Company except for any of the same which would
not have a Material Adverse Effect. The Company is not aware that any officer or key employee intends to terminate his, her or
their employment with the Company, nor does the Company have a present intention to terminate the employment of any officer or
key employee.

  

(m)
Title to Properties and Assets; Liens, Etc. Except as described in the SEC Reports, the Company has good and marketable
title to its properties and assets, including the properties and assets reflected in the most recent balance sheet included in
the Company’s financial statements, and good title to its leasehold estates, in each case subject to no Encumbrances, other
than (a) those resulting from taxes which have not yet become delinquent; and (b) Encumbrances which do not materially detract
from the value of the property subject thereto or materially impair the operations of the Company; and (c) those that have otherwise
arisen in the ordinary course of business, none of which are material. Except as set forth the Company’s SEC reports, the
Company is in compliance with all terms of each lease to which it is a party or is otherwise bound, except to the extent such
non-compliance would not reasonably be expected to result in a Material Adverse Effect.

    	 

    	 

    

(n)
Obligations to Related Parties. Except as described in the SEC Reports, there are no obligations of the Company to officers,
directors, shareholders who are known to the Company to beneficially own more than 5% of the Company’s Common Stock, or
employees of the Company other than (a) for payment of salary or other compensation for services rendered, (b) reimbursement for
reasonable expenses incurred on behalf of the Company and (c) for other standard employee benefits made generally available to
all employees (including stock option agreements outstanding under any stock option plan approved by the Board of Directors of
the Company). Except as disclosed in the SEC Reports, none of the officers or directors of the Company and, to the Company’s
knowledge, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other
than as holders of stock options and/or warrants, and for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property
to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the Company’s knowledge,
any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee
or partner. 

 

(o)
Material Changes. Except as set forth on the SEC Reports, since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in the subsequent SEC Reports, (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, accrued expenses and other liabilities 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 required to be disclosed in filings made with the SEC, (iii) the Company has not altered
its method of accounting or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its shareholders 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 SEC any request for confidential treatment
of information.

 

(p)
Sarbanes-Oxley. The Company is in compliance with all effective requirements of the Sarbanes-Oxley Act of 2002, as amended,
and the rules and regulations thereunder, that are applicable to it, except where such noncompliance could not reasonably be expected
to result in a Material Adverse Effect.

 

(q)
No General Solicitation. None of the Company, its Subsidiaries, any of their affiliates, and any person acting on
the Company’s behalf and its direction, has engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D under the Securities Act) in connection with the offer or sale of the Securities.

 

(r)
No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in
Section 2.02, none of the Company, its Subsidiaries, any of their affiliates, and any person acting on their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act
which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

    	 

    	 

    

(s)
Application of Takeover Protections. The Company execution and delivery of the Transaction Documents and the consummation
of the transactions contemplated hereby and thereby will not impose any restriction on any Purchaser, or create in any party (including
any current shareholder of the Company) any rights, under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement), or other similar anti--takeover provisions under the Company’s Charter Documents
or the laws of its state of incorporation.

 

(t)
Taxes. Each of the Company and its Subsidiaries has filed all U.S. federal, state, local and foreign tax returns which are
required to be filed by each of them and all such returns are true and correct in all material respects, except for such failures
to file which could not reasonably be expected to have a Material Adverse Effect. The Company and each Subsidiary has paid all
taxes pursuant to such returns or pursuant to any assessments received by any of them or by which any of them are obligated to
withhold from amounts owing to any employee, creditor or third party. The Company and each Subsidiary has properly accrued all
taxes required to be accrued and/or paid, except where the failure to accrue would not have a Material Adverse Effect. To the knowledge
of the Company, the tax returns of the Company and its Subsidiaries are not currently being audited by any state, local or federal
authorities. Neither the Company nor any Subsidiary has waived any statute of limitations with respect to taxes or agreed to any
extension of time with respect to any tax assessment or deficiency. The Company has set aside on its books adequate provision for
the payment of any unpaid taxes.

 

(u)
Registration Rights. Except as set forth on the SEC Reports, no person has any right to cause the Company to effect the
registration under the Securities Act of any securities of the Company.

 

(v)
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 SEC is contemplating
terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any trading
market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing
or maintenance requirements of such trading market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in material compliance with all such listing and maintenance requirements

 

(w)
Disclosure. All disclosure furnished by or on behalf of the Company to the Purchaser in the Transaction Documents regarding
the Company, its business and the transactions contemplated hereby, including the exhibits to this Agreement, is true and correct
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.

 

    	 

    	 

    

(x)
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 2.02,
no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser as
contemplated hereby.

 

Section
2.02 Representations and Warranties of the Purchasers. Each of the Purchasers hereby makes the following representations
and warranties to the Company with respect solely to itself and not with respect to any other Purchaser:

 

(a)
Organization and Standing of the Purchasers. If the Purchaser is an entity, such Purchaser is a corporation, limited liability
company or partnership duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization.

 

(b) Authorization and Power. Each Purchaser has the requisite power and authority
to enter into and perform this Agreement and to purchase the Securities being sold to such Purchaser hereunder. This Agreement
has been duly authorized, executed and delivered by such Purchaser and constitutes, or shall constitute when executed and delivered,
a valid and binding obligation of such Purchaser enforceable against such Purchaser in accordance with the terms thereof, except
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.

 

(c)
Purchase For Own Account. Each Purchaser is acquiring the Securities solely for its own account and not with a view to
or for sale in connection with distribution. Each Purchaser does not have a present intention to sell the Securities, nor a present
arrangement (whether or not legally binding) or intention to effect any distribution of the Securities to or through any person
or entity; provided, however, that by making the representations herein and subject to Section 2.02(h) below, such
Purchaser does not agree to hold the Securities for any minimum or other specific term and reserves the right to dispose of the
Securities at any time in accordance with federal and state securities laws applicable to such disposition. Each Purchaser acknowledges
that it is able to bear the financial risks associated with an investment in the Securities and that it has been given full access
to such records of the Company and its subsidiaries and to the officers of the Company and its subsidiaries and received such
information as it has deemed necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge
and experience in investing in companies similar to the Company in terms of the Company’s stage of development so as to
be able to evaluate the risks and merits of its investment in the Company.

 

(d)
Status of Purchasers. Each Purchaser is an "Accredited Investor" as that term is defined in Rule 501 (a) of Regulation
D promulgated under the Securities Act, as specifically indicated in Exhibit A attached to this Agreement and Purchaser Questionnaire
for Individuals and that the Purchaser is able to bear the economic risk of an investment in the Company’s Securities. Each
Purchaser has such knowledge and experience in finance, securities, taxation, investments and other business matters so as to
be able to protect the interests of the undersigned in connection with this transaction, and the undersigned's investment in the
Company hereunder is not material when compared to the undersigned's total financial capacity.
Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act and such Purchaser is
not a broker-dealer.

 

    	 

    	 

    

If
a natural person, each Purchaser is: a bona fide resident of the state
or non-United States jurisdiction contained in the address set forth on the Signature Page of this Agreement as the undersigned's
home address; at least 21 years of age; and legally competent to execute this Agreement. If an entity, each Purchaser has its principal
offices or principal place of business in the state or non-United States jurisdiction contained in the address set forth on the
Signature Page of this Agreement, the individual signing on behalf of the undersigned is duly authorized to execute this Agreement
and this Agreement constitutes the legal, valid and binding obligation of the undersigned enforceable against the undersigned in
accordance with its terms.

 

For
any Regulation S offering Purchaser, each Purchaser is not a "US Person" which is defined
below:

 

		n	Any natural person resident in the United States;

 

		n	Any partnership or corporation organized or incorporated under the laws of the United States;

 

		n	Any estate of which any executor or administrator is a US person;

 

		n	Any trust of which any trustee is a US person;

 

		n	Any agency or branch of a foreign entity located in the United States;

 

		n	Any non-discretionary account or similar account (other than an estate or trust) held by a dealer
or other fiduciary for the benefit or account of a US person;

 

		n	Any discretionary account or similar account (other than an estate or trust) held by a dealer or
other fiduciary organized, incorporated, or (if an individual) resident of the United States; and

 

		n	Any partnership or corporation if (i) organized or incorporated under the laws of any foreign jurisdiction
and (ii) formed by a US person principally for the purpose of investing in securities not registered under the Securities Act,
unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) of Regulation D promulgated
under the Securities Act) who are not natural persons, estates or trusts.

 

"United
States" means the United States of America, its territories and possessions, any State of the United States, and the District
of Columbia.

 

    	 

    	 

    

(e)
Opportunities for Additional Information. Each Purchaser hereby acknowledges receipt and careful review of this Agreement,
the other Transaction Documents, has had access to the Company’s Annual Report on Form 10-K and the exhibits thereto for
the fiscal year ended December 31, 2012, the Company’s Quarterly Report on Form 10-Q and the exhibits thereto for the quarterly
periods ended March 31, 2013, respectively, and all subsequent periodic and current reports filed with the United States Securities
and Exchange Commission (the “SEC”) as publicly filed with and available at the website of the SEC which can
be accessed at www.sec.gov. In addition, each Purchaser acknowledges that such Purchaser has had the opportunity to ask
questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning
the financial and other affairs of the Company, and to the extent deemed necessary in light of such Purchaser’s personal
knowledge of the Company’s affairs, such Purchaser has asked such questions and received answers to the full satisfaction
of such Purchaser, and such Purchaser desires to invest in the Company. Neither such inquiries nor any other investigation conducted
by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right
to rely on the truth, accuracy and completeness of the Company’s representations and warranties contained in the Transaction
Documents.

 

(f)
No General Solicitation. Each Purchaser acknowledges that the Securities were not offered to such Purchaser by means of
any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature,
including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media,
or broadcast over television or radio or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing
means of communications.

 

(g)
Legend on Stock Certificate. The undersigned acknowledges that the shares of common stock shall be subject to a stop transfer
order and the certificate or certificates evidencing any shares of common stock shall bear the following or a substantially similar
legend or such other legend as may appear on the forms of shares of common stock and such other legends as may be required by state
blue sky laws:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT") OR
APPLICABLE STATE SECURITIES LAWS, AND SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS
SUCH SALE OR TRANSFER IS EXEMPT FROM SUCH REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.

 

(h)
Rule 144. Such Purchaser understands that the Securities must be held indefinitely unless they are registered under the
Securities Act or an exemption from registration is available. Such Purchaser acknowledges that such Purchaser is familiar with
Rule 144 of the rules and regulations of the Commission, as amended, promulgated pursuant to the Securities Act (“Rule
144”), and that such person has been advised that Rule 144 permits resales only under certain circumstances. Such Purchaser
understands that to the extent that Rule 144 is not available, such Purchaser will be unable to sell any Securities without either
registration under the Securities Act or the existence of another exemption from such registration requirement.

 

    	 

    	 

    

(i)
General. Such Purchaser understands that the Securities are being offered and sold in reliance on a transactional exemption
from the registration requirement of federal and state securities laws and the Company is relying upon the truth and accuracy of
the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to
determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Securities.

 

(j)
Independent Investment. Except as may be disclosed in any filings with the Commission by the Purchasers under Section 13
and/or Section 16 of the Exchange Act, no Purchaser has agreed to act with any other Purchaser for the purpose of acquiring, holding,
voting or disposing of the Securities purchased hereunder for purposes of Section 13(d) under the Exchange Act, and each Purchaser
is acting independently with respect to its investment in the Securities.

 

ARTICLE
III.

 

OTHER
AGREEMENTS OF THE PARTIES

 

Section
3.01 Transfer Restrictions.

 

(a)
The Purchasers covenant that the Securities will only be disposed of pursuant to an effective registration statement under, and
in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the registration requirements
of the Securities Act, and in compliance with any applicable state securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or to the Company, or pursuant to Rule 144 at such time that the Company
is not required to be in compliance with Rule 144(c) and any other limitations or requirements set forth in Rule 144, the Company
may require the transferor to provide the Company with an opinion of counsel selected by the transferor, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration
under the Securities Act.

 

(b)
The Purchasers agree to the imprinting of the following legend on any certificate evidencing any of the Securities (in addition
to any legend required by applicable state securities or “blue sky” laws):

 

THESE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED
AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

 

    	 

    	 

    

Section
3.02 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities
to the Purchaser in a manner that would require the registration under the Securities Act of the sale of the Securities to the
Purchaser or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any
Trading Market.

 

Section
3.03 Securities Laws Disclosure; Publicity. The Company shall, at or before 5:30 p.m., New York time, on the fourth business
day following execution of this Agreement, file a Current Report on Form 8-K with the Commission describing the terms of the transactions
contemplated by the Transaction Documents and including as exhibits to such Current Report on Form 8-K the Transaction Documents,
in the form required by the Exchange Act. Thereafter, the Company shall timely file any filings and notices required by the Commission
or applicable state law with respect to the transactions contemplated hereby and provide copies thereof to the Purchasers upon
request.

 

Section
3.04 Definitions

 

For
the purposes of this Agreement:

 

(i)
“Affiliate” of any Person means any other Person directly or indirectly controlling, controlled by or under
direct or indirect common control with such Person.

 

(ii)
“Common Stock Equivalent” means any securities of the Company 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.

 

(iii)
“Exempt Issuance” means the issuance of (A) shares of Common Stock or options to employees, officers, consultants
or directors of the Company pursuant to any stock option plan of the Company duly adopted by the Company’s stockholders,
(B) securities upon the exercise or exchange of or conversion of any Securities issued hereunder, (C) securities exercisable or
exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that
such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease
the exercise price, exchange price or conversion price of such securities, (D) securities issued (other than for cash) in connection
with a merger, acquisition, or consolidation of all or substantially all of the assets, securities or business division of another
entity so long as such issuances are not for the principal purpose of raising capital, and (E) securities issued in connection
with bona fide license agreements or other partnering agreements so long as such issuances are not for the principal purpose of
raising capital.

 

    	 

    	 

    

(iv)
“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.

 

(v)
“Trading Market” means whichever of the NYSE MKT, Nasdaq Capital Market, Nasdaq Global Market, Nasdaq Global
Select Market, Bulletin Board, New York Stock Exchange or the OTCQB over-the-counter bulletin board service maintained by OTC Markets
Group Inc. is at the time the principal trading exchange or market for the Common Stock.

 

Section
3.05 Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities under this Agreement,
or the issuance of any additional securities, may result in dilution of the outstanding shares of Common Stock, which
dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under the
Transaction Documents, including, without limitation, its obligation to issue the Securities, are unconditional and absolute
and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or
any claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the
ownership of the other stockholders of the Company.

 

Section
3.06 Furnishing of Information. Until the time that no Purchaser owns Securities, the Company covenants to timely file (or
obtain extensions in respect thereof and file within the applicable grace period) all reports that are required to be filed by
the Company pursuant to Section 15(d) the Exchange Act, even if the Company is not then otherwise subject to the reporting requirements
of the Exchange Act. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange
Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information
as is required for the Purchasers to sell the Securities under Rule 144. The Company further covenants that it will take such further
action as any holder of Securities may reasonably request, to the extent required from time to time to enable such Person to sell
such Securities without registration under the Securities Act within the requirements of the exemption provided by Rule 144.

 

Section
3.07 Securities Laws Disclosure; Publicity. At any time when in connection with a Closing the Company has received
at least $350,000 from any Purchaser, the Company shall, by 8:30 a.m. (New York City time) on the 4th Trading Day immediately following
such Closing, issue a Current Report on Form 8-K, disclosing the material terms of the transactions contemplated hereby and including
the Transaction Documents as exhibits thereto. The Company and each Purchaser shall consult with each other in issuing any press
releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press
release or 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 each Purchaser, with respect to any press release of the Company, which consent
shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party
shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing,
the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the
Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required
by federal securities law in connection with (A) any registration statement and (B) the filing of final Transaction Documents (including
signature pages thereto) with the Commission and (ii) to the extent such disclosure is required by law or Trading Market regulations,
in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (ii).

 

    	 

    	 

    

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

 

Section
3.09 Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by
the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf, will provide
any Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information.
The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in
securities of the Company.

 

Section
3.10 Use of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for working capital
purposes and the Company shall not use such proceeds for (a) the satisfaction of any portion of the Company’s debt (other
than payment of trade payables in the ordinary course of the Company’s business), (b) the redemption of any Common Stock,
preferred stock or Common Stock Equivalents, or (c) the settlement of any outstanding litigation.

 

Section
3.11 Indemnification of Purchasers. Subject to the provisions of this Section 3.11, the Company will indemnify and hold
each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person
who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling person (each,
a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages,
costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of
the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents
or (b) any action instituted against a Purchaser in any capacity, or any of them or their respective Affiliates, by any stockholder
of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is based upon a breach of such Purchaser’s representations, warranties or covenants under the
Transaction Documents or any agreements or understandings such Purchaser may have with any such stockholder or any violations by
the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful
misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right
to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and
to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on
any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall
be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to
any Purchaser Party under this Agreement (i) for any settlement by a Purchaser Party effected without the Company’s prior
written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants
or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents.

 

    	 

    	 

    

Section
3.12 Reservation and Listing of Securities.

 

(a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents
in such amount as may be required to fulfill its obligations in full under the Transaction Documents (the “Required Minimum”).

 

(b)
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 100% of (i)
the Required Minimum on such date, minus (ii) the number of shares of Common Stock previously issued pursuant to the Transaction
Documents, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate or articles
of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such
time (minus the number of shares of Common Stock previously issued pursuant to the Transaction Documents), as soon as possible
and in any event not later than the 75th day after such date; provided that the Company will not be required at any time to authorize
a number of shares of Common Stock greater than the maximum remaining number of shares of Common Stock that could possibly be issued
after such time pursuant to the Transaction Documents.

 

(c)
The Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such
Trading Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required
Minimum on the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for
listing on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing, and (iv)
maintain the listing of such Common Stock on any date at least equal to the Required Minimum on such date on such Trading Market
or another Trading Market.

 

    	 

    	 

    

Section
3.13 Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under
Regulation D. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption
for, or to qualify the Securities for, sale to the Purchasers at each Closing under applicable securities or “Blue Sky”
laws of the states of the United States, and shall provide evidence of such actions promptly to the Placement Agents and upon request
of any Purchaser.

 

Section
3.14 DTC Eligible. The Company through its transfer agent is a participant in the Depository Trust Company Fast Automated
Securities Transfer Program or other system which provides for the Company’s Common Stock to be transferred electronically.

 

ARTICLE
IV.

 

MISCELLANEOUS

 

Section
4.01 Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder
only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the
other parties, if the Closing has not been consummated on or before July 19, 2013; provided, however, that such termination
will not affect the right of any party to sue for any breach by the other party (or parties).

 

Section
4.02 Fees and Expenses. Except as otherwise set forth in this Agreement and the other Transaction Documents, each party
shall pay the fees and expenses of its advisors, 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 stamp or other similar taxes and duties levied in connection with issuance of the Shares pursuant hereto.

 

Section
4.03 Specific Enforcement, Consent to Jurisdiction.

 

(a)
The Company and the Purchasers acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement or the other Transaction Documents were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches
of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition
to any other remedy to which any of them may be entitled by law or equity.

 

(b)
Each of the Company and the Purchasers (i) hereby irrevocably submits to the jurisdiction of the United States District Court sitting
in the Southern District of New York and the courts of the State of New York located in New York County for the purposes of any
suit, action or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents or the transactions
contemplated hereby or thereby and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient
forum or that the venue of the suit, action or proceeding is improper. Each of the Company and the Purchasers consents to process
being served in any such suit, action or proceeding by mailing a copy thereof 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 in this Section 4.02 shall affect or limit any right to serve process in any other manner permitted by law.

 

    	 

    	 

    

Section
4.04 Entire Agreement; Amendment. This Agreement (including all exhibits hereto) and the Transaction Documents contain the
entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically set forth
herein or in the Transaction Documents, neither the Company nor any of the Purchasers makes any representations, warranty, covenant
or undertaking with respect to such matters and they supersede all prior understandings and agreements with respect to said subject
matter, all of which are merged herein. No provision of this Agreement may be waived or amended other than by a written instrument
signed by the Company and the Purchasers holding a majority of the Shares then outstanding and held by Purchasers. No such amendment
shall be effective to the extent that it applies to less than all of the holders of the Shares then outstanding.

 

Section
4.05 Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall
be in writing and shall be effective (a) upon hand delivery by telex (with correct answer back received), telecopy, e-mail or facsimile
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

(a)
If to the Company:

 

China
Health Resource, Inc. 

343
Sui Zhou Zhong Road 

Suining,
Sichuan Province, P.R. China

629000

 

(b)
If to the Purchaser at the address of such Purchaser set forth on the signature pages hereto.

 

Any
party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed
address to the other party hereto.

 

    	 

    	 

    

Section
4.06 Waivers. No waiver by either party 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 other provisions, 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 accruing to it thereafter.

 

Section
4.07 Headings. The article, section and subsection headings in this Agreement are for convenience only and shall not constitute
a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.

 

Section
4.08 Successors and Assigns; Restrictions on Transfer. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns. The Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Purchasers.

 

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

 

Section
4.10 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State
of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive
law of another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing
this Agreement to be drafted. Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any and
all rights to a trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby.

 

Section
4.11 Survival. The representations and warranties of the Company and the Purchasers shall survive the execution and delivery
hereof and each Closing hereunder for the applicable statute of limitations period.

 

Section
4.12 Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective
when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same
force and effect as if such facsimile signature were the original thereof.

 

Section
4.13 Severability. The provisions of this Agreement and the other Transaction Documents are severable and, in the event
that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained
in this Agreement or the other Transaction Documents shall, for any reason, be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this
Agreement or the other Transaction Documents and such provision shall be reformed and construed as if such invalid or illegal
or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid,
legal and enforceable to the maximum extent possible.

 

    	 

    	 

    

Section
4.14 Further Assurances. From and after the date of this Agreement, upon the request of any Purchaser or the Company, each
of the Company and the Purchasers shall execute and deliver such instrument, documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement and the other
Transaction Documents.

 

Section
4.15 Like Treatment of Purchaser. No consideration shall be offered or paid to any Purchaser to amend or consent to a waiver
or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the
Purchasers then holding Shares. Further, the Company shall not make any payments or issue any securities to the Purchasers in amounts
which are disproportionate to the respective numbers of outstanding Shares held by any Purchasers at any applicable time. For clarification
purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each
Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers
acting in concert or as a group with respect to the purchase, disposition or voting of the Securities or otherwise.

 

 

 

[SIGNATURE
PAGES FOLLOWS]

    	 

    	 

    

 

Company
Signature Page

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an authorized signatory as of the date first above
written.

 

	 	CHINA
    HEALTH RESOURCE, INC.
	 	 	 
	
    	By:	/s/ Jiayin Wang
	 	 	Name: Jiayin Wang
	 	 	Title: Chief Executive Officer

    	 

    	 

    

  

Purchaser
Signature Page

 

By
its execution and delivery of this signature page, the undersigned Purchaser hereby joins in and agrees to be bound by the terms
and conditions of the Securities Purchase Agreement dated as of June 19, 2013 (the “Purchase Agreement”) by
and among China Health Resource, Inc. and the Purchaser (as defined therein), as to the number of shares of Common Stock set forth
below, and authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	 
	 	Name of Purchaser: Xingguo Deng
	 	 
	 	 
	 	/s/
Xingguo Deng   
	 	 
	 	Address: 
	 	395 Xishan Road, #7-2-5-4, Chuan Shan District
	 	Suining City, Sichuan Province, China 629000 
	 	 
	 	Email Address: 1044623538@qq.com
	 	 
	 	Number of Shares: 50,000,000
	 	Aggregate Purchase Price: $0.007Master AGREEMENT

 

 

THIS
AGREEMENT is dated June 19, 2013 (the “Agreement”)

 

BETWEEN:

 

		(1)	Fuzhou Honglong Ocean Fishery Co., Ltd., a company incorporated under the laws of China and having
its office at Floor 17th , Fujian Galaxy Garden Hotel, #243, Wusi Road, Fuzhou, PRC (“Seller”); and

 

		(2)	Pingtan Marine Enterprise Ltd., a company incorporated under the laws of the Cayman Islands and
having its office at 18/F, Zhongshan Building A, No. 154 Hudong Road, Fuzhou, PRC 350001 (“Buyer”)

 

(the
Seller and the Buyer together, the “Parties”).

 

WHEREAS:

 

		(A)	The Seller is the sole legal and beneficial owner of each of the
Vessels (as defined below). 

		(B)	The Seller has agreed to sell, and the Buyer has agreed to buy, each of the Vessels.

		(C)	The Parties have agreed to enter into this Agreement setting out (a) the terms and conditions on
which the Sellers shall enter into memoranda of agreement to sell and deliver each of the Vessels to the Buyer and (b) the further
terms and conditions on which the Vessels shall be sold and purchased.

 

it
is agreed as follows:

		1.	Definitions

 

		1.1	In this Agreement (including the Recitals above):

 

“Banking Days”
means any day (other than a Saturday or Sunday) on which banks and financial markets are open for the transaction of business in
New York, Hong Kong and PRC.

 

“Buyer’s Account”
means the Buyer’s bank account for which wire instructions are provided in Exhibit B.

 

“Deposit”
shall have the meaning given in Clause 4 (Deposit).

 

    	 

    	 

    

 

“MOA” means,
in relation to a Vessel, the memorandum of agreement to be entered into between the Sellers and the Buyers in relation to the sale,
purchase and delivery of the relevant Vessel in the form set out in Schedule 2 to this Agreement (together, “MOAs”),
as amended, supplemented and varied by the terms of this Agreement.

 

“Purchase Price”
shall have the meaning given in Clause 3. The Purchase Price is set forth in both U.S. Dollars (“USD” or “$”)
and Chinese Renminbi (“RMB”) at an exchange rate based on the People’s Bank of China’s middle rate
as of June 18, 2013 (1 USD = 6.1651 RMB).

 

“Seller’s Account”
means the Seller’s bank account for which wire instructions are provided in Exhibit B.

 

“Vessels”
means the vessels listed at Schedule 1 to this Agreement.

 

		2.	Purchase and delivery of VESSELS

 

		2.1	The Sellers and Buyers hereby agree that each MOA shall upon execution of this Agreement be deemed entered into and effective
on the terms and conditions set out in such MOA, as amended, supplemented and varied as follows:

 

		(A)	the vessel details under each MOA (as are to be set out at lines 4-10 of each MOA) shall be as set out in Schedule 1 to this
Agreement;

 

		(B)	the Sellers shall (notwithstanding the terms of each relevant MOA) tender a notice of readiness for delivery for each Vessel
on the same date, and delivery and acceptance of each Vessel shall occur on a simultaneous basis;

 

and as otherwise
amended, supplemented and varied under the terms of this Agreement (including without limitation Clause 3 below). For the avoidance
of doubt, each MOA shall be read and construed subject to the terms and conditions of this Agreement,
and in the event of any inconsistency between the terms of this Agreement and the MOAs (or any of them), the terms
of this Agreement shall prevail.

 

		3.	PURCHASE PRICE

 

		3.1	The purchase price for the Vessels shall be as follows (the “Purchase Price”):

 

		(A)	$200,000,000 (RMB 1,233,020,000) in cash consideration to be paid by Buyer to Seller’s Account per the payment terms
set forth in Clause 4 (the “Cash Consideration”).

 

		(B)	The relief of $54,851,485 (RMB 338,164,890) constituting the outstanding amount of any remaining related party debt to be repaid
to Buyer under Section 8.3 of that certain Share Purchase Agreement dated October 24, 2012, by and between Buyer, Seller, Mr. Xinrong
Zhuo, Merchant Supreme Co., Ltd. and Prime Cheer Corporation Limited (the” Related Party Debt”).

 

    	PAGE
                                                                                                                                                                      2

    	 

    

 

		(C)	An amount of $155,166,195 (RMB 956,615,110) in accordance with the terms of a promissory note issued by Buyer in the form set
forth in Exhibit C to this Agreement (the “Promissory Note”).

 

		4.	Deposit

 

		4.1	As security for the correct fulfillment of this Agreement the Buyers shall (i) send a deposit of the amount of the Cash Consideration
(the “Deposit”) to Seller on or prior to June 30, 2013, and (ii) release the Related Party Debt.

 

		5.	payment

 

		5.1	Notwithstanding any term(s) of the MOAs, the Purchase Price shall be paid by the Buyer to the Seller as follows:

 

		(A)	In exchange for and always subject to delivery of the Vessels and each of the delivery documents required to be provided by
the Sellers to the Buyers (or their guaranteed nominee) under Clause 5 of the MOAs (the “Closing”), the Deposit
shall be released to the Seller;

 

		(B)	the balance of the Purchase Price and all other sums payable on delivery by the Buyers to the Sellers under this Agreement
shall be paid in full free of bank charges to the Seller’s Account upon Closing;

 

		(C)	Buyer shall deliver the executed Promissory Note to Seller upon payment of the Purchase Price in accordance with this Clause
5.

 

		6.	VESSEL NET PROFITS

 

		6.1	During the time period between the Signing and the Closing, the Buyer shall be entitled to 100% of the net profits (the gross
profits minus the costs and expenses, including the tax payable all as determined in accordance with us generally accepted accounting
principles) reported by each of the Vessels (the “Net Profits”).

 

		6.2	The Net Profits shall be paid by Seller to Buyer on a monthly basis in arrears in full free of bank charges to the Buyer’s
Account.

 

		7.	Total Loss, MAJOR CASUALTY AND FORCE MAJEURE

 

		7.1	Should any Vessel become a total loss as provided in the relevant MOA, the purchase price of such Vessel, as set out in Schedule
1 to this Agreement shall be deducted from the Purchase Price and proportionate part of the Deposit shall be returned to the Buyer
upon release of the Deposit amount in accordance with Clause 5.

 

    	PAGE
                                                                                                                                                                      3

    	 

    

 

		7.2	Should any Vessel become a total loss as provided in the relevant MOA, this Agreement and the other MOAs shall continue in
full force and effect.

 

		7.3	No Party shall be liable if it is delayed or prevented from performing its obligations under this Agreement by Force Majeure.
Force Majeure means acts of nature, fire, earthquake, war and political turmoil, and any other event that is beyond the party’s
reasonable control and cannot be prevented with reasonable care. When the event of Force Majeure arises, the affected party shall
inform the other Parties within 15 business days. The affected party which does not perform the obligations under this Agreement
shall be responsible for any damage caused by failure of informing other parties. After the event of Force Majeure is removed,
the affected party shall resume performance of this Agreement with its best efforts.

 

		8.	Nomination for Delivery

 

		8.1	The Buyer under each MOA shall have the option (such option to be declared no later than the date hereof ) to nominate a fully
guaranteed nominee to receive transfer of title of a Vessel (including execute a protocol of delivery and acceptance), but such
nomination shall not in any way whatsoever relieve the Buyers of their primary obligation as the Buyer under this Agreement and
under each MOA, including, without limitation, their obligation to take delivery of the Vessel and pay the Purchase Price.

 

		9.	Representations, Warranties and Undertakings

 

		9.1	The Seller represents and warrants to the Buyer that the Seller has full power and authority to become a party to this Agreement
and each MOA, and the Seller has taken all necessary action and has obtained all consents, licences and approvals required in connection
with the entry into and performance of this Agreement and each MOA, including, but not limited to, the sale and delivery of the
Vessels on the term of this Agreement and each MOA.

 

		9.2	The Buyer represents and warrants to Seller that the Buyer has full power and authority to become a party to this Agreement
and each MOA, and the Buyer has taken all necessary action and has obtained all consents, licences and approvals required in connection
with the entry into and performance of this Agreement and each MOA, including, but not limited to, the purchase and acceptance
of the Vessels on the terms of this Agreement and each MOA.

 

		9.3	The Seller represents and warrants that each Vessel at the time of delivery is free from all charters, encumbrances, mortgages
and maritime liens or any other debts whatsoever, and is not subject to Port State or other administrative detentions. The Seller
hereby undertakes to indemnify the Buyer against all consequences of claims made against the Vessel which have been incurred prior
to the time of delivery.

 

    	PAGE
                                                                                                                                                                      4

    	 

    

 

		9.4	The Seller represents and warrants that each Vessel at the time of delivery has all permits and governmental approvals needed
to operate such Vessel and that such permits and approvals can be transferred to Buyer in connection with the transfer of the Vessel
to Buyer.

 

		9.5	The Seller represents and warrants that the Vessel is in all material respects fit for the
purpose for which it is currently employed and comply with all present laws and regulations applicable for such purpose.

 

		10.	ASSISTANCE WITH REGISTRATION

 

		10.1	The Seller agree and undertake with the Buyer to provide the Buyer (or their relevant nominee) with all reasonable assistance
required by the Buyers in relation to the re-registration of each of the Vessels under PRC flag in the name of the Buyer (or their
nominee).

 

		11.	INDEMNIFICATION AND TERMINATION

 

		11.1	Indemnification 

 

From and after the closing, Seller
agrees to pay and to indemnify fully, hold harmless and defend Buyer and its affiliates, and their respective agents, directors,
officers, employees, consultants, representatives, successors and assigns from and against any and all damages arising out of,
relating to or based upon any breach by Seller of the Agreement or the MOUs, including the breach of any of the representations
and warranties contained in Clause 9.

 

		11.2	Buyer’s Default

 

Should the Deposit not be lodged
in accordance with Clause 4 (Deposit), the Seller have the right to cancel this Agreement, and shall be entitled to claim compensation
for its losses and for all expenses incurred together with interest. Should the Purchase Price not be paid in accordance with Clause
5 (Payment), the Sellers have the right to cancel this Agreement, in which case the Deposit together with interest earned, if any,
shall be released to the Seller. If the Deposit does not cover its loss, the Seller shall be entitled to claim further compensation
for their losses and for all expenses incurred together with interest.

 

    	PAGE
                                                                                                                                                                      5

    	 

    

 

		11.3	Seller’s Default

 

Should
the Seller materially breach its obligations under this Agreement, including, but not limited to the delivery of a majority of
the Vessels, the Buyer shall have the option of cancelling this Agreement and shall be entitled to claim compensation for its losses
and for all expenses incurred together with interest. In the event that the Buyers elect to cancel this Agreement, the Deposit
together with interest earned, if any, shall be released to Buyer immediately.  If
the Deposit does not cover Buyer’s loss, the Buyer shall be entitled to claim further compensation for their losses and for
all expenses incurred together with interest.

 

		12.	TAX

 

		12.1	The Sellers acknowledge and agree that notwithstanding any other term of this Agreement and/or the MOAs, the Purchase Price
is inclusive of any and all value added, export, sales, income, earnings or other tax and/or duty (or equivalent thereof) payable
to PRC taxation authority or other authorities under or in connection with the sale and purchase and/or delivery of the Vessels,
in accordance with this Agreement and/or the MOAs.

 

		12.2	The Selles shall indemnify and hold harmless the Buyer (and, if relevant, their nominee) upon their first written demand against
any value added, export, sales, income, earnings or other tax and/or duty (or equivalent thereof), charged or imposed by any PRC
taxation authority or other authorities on the Buyers (or their nominee) under or in connection with the sale and purchase, or
delivery of the Vessels, in accordance with this Agreement and/or the MOAs.

 

		13.	CoUnterparts

 

This Agreement
may be executed in any number of counterparts. This has the same effect as if the signatures on the counterparts were on a single
copy of this Agreement.

 

		14.	Governing law and arbitration

 

		14.1	This Agreement shall be governed by and construed in accordance with Title 9 of the United States Code and the substantive
law (not including the choice of law rules) of the State of New York and any dispute arising out of or in connection with this
Agreement shall be referred to three (3) persons at New York, one to be appointed by each of the parties hereto, and the third
by the two so chosen; their decision or that of any two of them shall be final, and for the purposes of enforcing any award, judgment
may be entered on an award by any court of competent jurisdiction. The proceedings shall be conducted in accordance with the rules
of the Society of Maritime Arbitrators, Inc.

 

		14.2	In cases where neither the claim nor any counterclaim exceeds the sum of US$ 100,000 the arbitration shall be conducted in
accordance with the Shortened Arbitration Procedure of the Society of Maritime Arbitrators, Inc.

 

 

    	PAGE
                                                                                                                                                                      6

    	 

    

 

IN
WITNESS WHEREOF this Agreement has been duly executed on the date first above written.

 

 

	Signed by /s/ Tiqi Gao_____________	)	 
	for and on behalf of 	)	 
	Fuzhou Honglong Ocean Fishery Co., Ltd.	)	 
	 	 	 
	 	 	 
	 	 	 
	Signed by /s/ Xinrong Zhuo_________	)	 
	for and on behalf of 	)	 
	Pingtan Marine Enterprise Ltd.           	)	 

 

 

 

 

    	[Signature Page to Master Agreement]

    	 

    

 

Schedule
2

 

FORM OF
MOA

 

FORM OF
MEMORANDUM OF AGREEMENT

 

Date:

 

Fuzhou Honglong Ocean Fishery Co., Ltd., hereinafter
called the "Seller", has agreed to sell, and

 

Pingtan Marine Enterprise Ltd., hereinafter
called the "Buyer", has agreed to buy:

 

Name of vessel:      

 

IMO Number:      

 

Classification Society:      

 

Class Notation:      

 

Year of Build:                      Builder/Yard:
     

 

Flag:                                     Place
of Registration:                                        GT/NT:      

 

hereinafter called the "Vessel",
on the following terms and conditions:

 

Definitions

"Banking Days" are days on which banks are open in New York and Hong Kong and PRC.

 

"Buyer’s Nominated Flag State"
means the PRC

 

"Class" means the class notation
referred to above.

 

"Classification Society" means
the Society referred to above.

 

"In writing" or "written"
means a letter handed over from the Seller to the Buyer or vice versa, a registered letter, e-mail or telefax.

 

“Master Agreement” means that
certain Master Agreement dated June 19, 2013 entered into by and between the Parties.

 

"Parties" means the Seller and
the Buyer.

 

"Purchase Price" means the price
for the Vessel as stated in Clause 1 (Purchase Price).

 

		1.	Purchase Price and Payment

 

The Purchase Price is as set
forth in Clause 3 of the Master Agreement and payment of the Purchase Price shall be made in accordance with the terms of Clause
5 of the Master Agreement.

 

		2.	Inspection

 

(a)
The Buyer has inspected and accepted the Vessel's classification records and have accepted
the Vessel following this inspection and the sale is outright and definite, subject only to the terms and conditions of this Agreement.

 

    	 

    	 

    

 

 

		3.	Spares, bunkers and other items

 

The Seller shall deliver the
Vessel to the Buyer with everything belonging to her on board and on shore. All spare parts and spare equipment including spare
tail-end shaft(s) and/or spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used
or unused, whether on board or not shall become the Buyer’s property, but spares on order are excluded. Forwarding charges,
if any, shall be for the Buyer’s account. The Seller is not required to replace spare parts including spare tail-end shaft(s)
and spare propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced
items shall be the property of the Buyer. Unused stores and provisions shall be included in the sale and be taken over by the Buyer
without extra payment.

 

The Buyer shall take over remaining
bunkers and unused lubricating and hydraulic oils and greases in storage tanks and unopened drums and pay either.

 

"inspection" in this
Clause 3, shall mean the Buyer’s inspection according to Clause 2 (Inspection), if applicable. If the Vessel is taken over
without inspection, the date of this Agreement shall be the relevant date.

 

		4.	Documentation

 

The place of closing: The
offices of Buyer at 18/F, Zhongshan Building A, No. 154 Hudong Road, Fuzhou, PRC 350001.

 

(b)
In exchange for payment of the Purchase Price the Seller shall provide the Buyer with the
following delivery documents:

 

		(i)	Evidence that all necessary corporate, shareholder and other action has
been taken by the Seller to authorise the execution, delivery and performance of this Agreement;;

 

		(i)	A copy of the Seller’s letter to their satellite communication provider
cancelling the Vessel's communications contract which is to be sent immediately after delivery of the Vessel;

 

		(ii)	Any additional documents as may reasonably be required by the competent
authorities of the Buyer’s Nominated Flag State for the purpose of registering the Vessel, provided the Buyer notifies the
Seller of any such documents as soon as possible after the date of this Agreement; and 

 

(b) At
the time of delivery the Buyer shall provide the Seller with:

 

		(i)	Evidence that all necessary corporate, shareholder and other action has
been taken by the Buyer to authorise the execution, delivery and performance of this Agreement; and

 

(c)  If
any of the documents listed in Sub-clauses (a) and (b) above are not in the English language they shall be accompanied by an English
translation by an authorised translator or certified by a lawyer qualified to practice in the country of the translated language.

 

(d) The Parties shall
to the extent possible exchange copies, drafts or samples of the documents listed in Sub-clause (a) and Sub-clause (b) above for
review and comment by the other party as soon as possible prior to the Vessel's intended date of delivery.

 

(e) Concurrent with the
exchange of documents in Sub-clause (a) and Sub-clause (b) above, the Seller shall also hand to the Buyer the classification certificate(s)
as well as all drawings and manuals, (excluding ISM/ISPS manuals), which are on board the Vessel. Other certificates which are
on board the Vessel shall also be handed over to the Buyer unless the Seller is required to retain same, in which case the Buyer
has the right to take copies.

 

    	 

    	 

    

 

(f) Other technical documentation
which may be in the Seller’s possession shall promptly after delivery be forwarded to the Buyer at their expense, if they
so request. The Seller may keep the Vessel's log books but the Buyer has the right to take copies of same.

 

(g) The parties shall
sign and deliver to each other a Protocol of Delivery and Acceptance confirming the date and time of delivery of the Vessel from
the Seller to the Buyer.

 

		5.	Encumbrances

The Seller warrants that the Vessel, at the time of delivery, is free from all charters, encumbrances,
mortgages and maritime liens or any other debts whatsoever, and is not subject to Port State or other administrative detentions.
The Seller hereby undertakes to indemnify the Buyer against all consequences of claims made against the Vessel which have been
incurred prior to the time of delivery.

 

		6.	Taxes, fees and expenses

 

Any taxes, fees and expenses
in connection with the purchase and registration in the Buyer’s Nominated Flag State shall be for the Buyer’s account,
whereas similar charges in connection with the closing of the Seller’s register shall be for the Seller’s account.

 

		7.	Condition on Delivery

 

The Vessel with everything belonging
to her shall be at the Seller’s risk and expense until she is delivered to the Buyer, but subject to the terms and conditions
of this Agreement she shall be delivered and taken over as she was at the time of inspection, fair wear and tear excepted.

 

However, the Vessel shall be
delivered free of cargo and free of stowaways with her Class maintained without condition/recommendation, free of damage affecting
the Vessel's class, and with her classification certificates and national certificates, as well as all other certificates the Vessel
had at the time of inspection, valid and unextended without condition/recommendation* by the Classification Society or the relevant
authorities at the time of delivery.

 

"inspection in this Clause
7, shall mean the Buyer’s inspection according to Clause 2 (inspection), if applicable. If the Vessel is taken over without
inspection, the date of this Agreement shall be the relevant date.

 

		8.	Name/markings

 

Upon delivery the Buyer undertakes
to change the name of the Vessel and alter funnel markings.

 

		9.	Law and Arbitration

 

This Agreement shall be governed
by and construed in accordance with Title 9 of the United States Code and the substantive law (not including the choice of law
rules) of the State of New York and any dispute arising out of or in connection with this Agreement shall be referred to three
(3) persons at New York, one to be appointed by each of the parties hereto, and the third by the two so chosen; their decision
or that of any two of them shall be final, and for the purposes of enforcing any award, judgment may be entered on an award by
any court of competent jurisdiction. The proceedings shall be conducted in accordance with the rules of the Society of Maritime
Arbitrators, Inc.

 

In cases where neither the claim
nor any counterclaim exceeds the sum of US$ 100,000 the arbitration shall be conducted in accordance with the Shortened Arbitration
Procedure of the Society of Maritime Arbitrators, Inc.

 

    	 

    	 

    

 

		10.	Notices

 

All notices to be provided under
this Agreement shall be in writing.

 

Contact details for recipients of
notices are as follows:

 

For the Buyer:

 

Pingtan Marine Enterprise Ltd.

Attn. Roy Yu and Xinrong Zhuo

18/F, Zhongshan Building A

No. 154 Hudong Road, Fuzhou

PRC 350001

 

For the Seller:

 

Fuzhou Honglong Ocean Fishery Co.,
Ltd. 

Attn. Tiqi Gao

Floor 17th, Fujian Galaxy
Garden Hotel, #243,

Wusi Road, Fuzhou 

PRC 350001

 

		11.	Entire Agreement

 

The written terms of this Agreement
comprise the entire agreement between the Buyer and the Seller in relation to the sale and purchase of the Vessel and supersede
all previous agreements whether oral or written between the Parties in relation thereto.

 

Each of the Parties acknowledges
that in entering into this Agreement it has not relied on and shall have no right or remedy in respect of any statement, representation,
assurance or warranty (whether or not made negligently) other than as is expressly set out in this Agreement.

 

Any terms implied into this Agreement
by any applicable statute or law are hereby excluded to the extent that such exclusion can legally be made. Nothing in this Clause
shall limit or exclude any liability for fraud.

 

    	 

    	 

    

 

 

	For and on behalf of the Seller

	For and on behalf of the Buyer
	 	 
	_________________________	__________________________
	Name:      	Name:      
	 	 
	Title:      	Title:

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