Document:

ex10-2.htm

  

  

  

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the 3rd day of November, 2014, by and between ZRHO Beverages, Inc., a Nevada company having its principal place of business at 4446 E. Amberwood Dr., Phoenix, Arizona 85048, (the “Employer”), and Edward C. Orr, III, an individual (the “Employee”).  As used herein, the term “Parties” shall be used to refer to the Employer and Employee jointly.

WHEREAS:

A.           Employer is a private company and

B.           Employer is of the opinion that Employee has education, experience and/or expertise which is of value to Employer and its shareholders, and

C.           Employer and Employee acknowledge and agree that each party seeks to revoke all prior oral and written agreements, understandings, and arrangements between Employer and Employee in connection with Employee’s proposed employment by Employer.

D.           Employer desires to be assured of the association and services of Employee and Employer acknowledges that Employee does not have any existing conditions or incapacity which would render him unfit to fulfill her obligations under this Agreement.

E.           Employee is willing and desires to be employed by Employer, and Employer is willing to employ Employee, upon the terms, covenants and conditions hereinafter set forth.

NOW THEREFORE, in consideration of the promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereto acknowledge Employer and Employee agree as follows:

	
1.  

	
EMPLOYMENT:  Employer hereby agrees to employ Employee and Employee hereby accepts such employment, upon the terms and conditions hereinafter set forth.

	
2.  

	
TERM.  For purposes of this Agreement, “Term” shall mean the original term (as defined in Section 2.1 below) and the renewal term (as defined in Section 2.2 below), if applicable.

	
2.1  

	
Original Term: The Term of this Agreement shall commence on November 3, 2014 and expire on November 3, 2016, unless sooner terminated pursuant to the terms and provisions herein stated.

  

1

  

	
2.2  

	
Renewal Term:  This Agreement shall automatically be extended for additional one (1) year renewal terms unless either party gives written notice to terminate this Agreement at least one hundred & eighty (180) days prior to the end of the preceding term.  Notwithstanding this renewal provision, the Parties shall by way of mutual agreement, at least 180 days prior to the end of the preceding term, finalize any amendments to compensation, duties or any other material section hereof as will be applicable to the subsequent renewal term. Additionally, the Employee and the Employer with approval by the Board of Directors, have the option to revise Compensation, including any sub section of Section 3 below, on a quarterly basis.

	
3.  

	
COMPENSATION.

	
3.1.  

	
Salary:  Employer shall pay Employee a monthly base salary of One Thousand Dollars ($1,000) less taxes and other withholdings as required by law.  All payroll checks will be payable in accordance with Employer’s normal policies but in no event less often than monthly (the “Salary”).

	
4.  

	
EMPLOYEE BENEFITS.

	
4.1  

	
General Benefits:  Employee shall be allowed to participate in all benefit plans and programs of Employer currently existing or hereafter made available to executives or senior management of Employer, including but not limited to, dental and medical insurance, including coverage for dependents of Employee, pension and profit sharing plans, 401(k) plans, incentive savings plans, stock option plans, group life insurance, salary continuation plans, disability coverage and other fringe benefits.

	
4.2  

	
Business Expense: Employee shall be entitled to receive proper reimbursement for all reasonable out-of-pocket expenses incurred directly by Employee in performing Employee’s duties and obligations under this Agreement.  Employer shall reimburse Employee for such expenses on a monthly basis, upon submission by Employee of appropriate receipts, vouchers or other documents in accordance with Employer’s policy.

	
4.3  

	
Vacation:  Employee shall be entitled during each twelve (12) month period during the Term of this Agreement to a vacation of four (4) weeks during which time Employee’s compensation will be paid in full. Vacation days will accrue at a rate of 13.33 hours a month with a maximum of 160 hours accrual at one time. Upon reaching a total of 160 hours/4 weeks accrual will cease.  Unused days of vacation will be compensated in accordance with Employer’s policy as established by Employer from time to time.  Employee may take the vacation periods at any time during the year as long as Employee schedules time off as to not create hardship on Employer.  In addition, Employee shall have such other days off as shall be determined by Employer and shall be entitled to paid sick leave and paid holidays in accordance with Employer’s policy.

  

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5.  

	
DUTIES/SERVICE

	
5.1  

	
Position: Employee is employed as Chief Executive Officer, and shall perform such services and duties as are defined in Addendum A, Job Description, attached hereto, and as are normally associated with such position, subject to the direction, supervision and rules and regulations of Employer and its Board of Directors.

	
5.2  

	
Place of Employment: The place of Employee’s employment and the performance of Employee’s duties will be at Employer’s corporate headquarters or at a location agreed upon by Employer and Employee.  

	
5.3  

	
Extent of Services: Employee shall at all times and to the best of his ability perform his duties and obligations under this Agreement in a reasonable manner consistent with the interests of Employer.  The precise services of the Employee may be extended or curtailed, from time to time as agreed upon by Employer and Employee, and Employee agrees to render such different and/or additional services of a similar nature as agreed upon by Employer and Employee.  However, Employer shall not require Employee to relocate without Employee’s prior written consent

5.3.1 Except as otherwise agreed by Employer and Employee in writing, it is expressly understood and agreed that Employee’s employment is full-time and of a critical nature to the success of Employer and is therefore exclusive.  Employee may not be employed by other entities or otherwise perform duties and undertakings on behalf of others or for his own interest unless Employer and Employee mutually agree to such activity.  Employer acknowledges that Employee presently, or may in the future, serve on the Board of Directors of other companies and such action shall not be a breach of this section; provided, however, that such companies do not compete with Employer or interfere with the performance of Employee’s duties pursuant to this Agreement, as determined in the reasonable judgment of the Board of Directors and Employee.

5.3.2 Additionally, Employer recognizes that Employee has, or may have in the future, non-passive equity positions in other companies, which do not compete with Employer in the reasonable judgment of the Board of Directors and Employee.  Employer recognizes that such equity positions may occasionally require some limited attention from Employee during normal business hours.  However, Employee agrees that if such time is considered excessive by the Board of Directors, Employee shall be so advised and noticed by Employer and Employee shall be required to make appropriate adjustments to ensure his duties and obligations under this Agreement are fulfilled.

  

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6.  

	
TERMINATION.  The Term of this Agreement shall end upon (a) upon the Employee’s resignation, death or permanent disability or incapacity; or (b) by Employer at any time for “Cause” (as defined in Section 6.4 below) or without Cause.

	
6.1  

	
By Resignation:  If Employee resigns, Employee shall be entitled to receive Employee’s Salary and Incentive Compensation only through the date of such resignation and Employee’s Shares shall be deemed vested only through the date of such resignation.

	
6.2  

	
By Reason of Incapacity or Disability: If Employee becomes so incapacitated by reason of accident, illness, or other disability that Employee is unable to carry on substantially all of the normal duties and obligations of Employee under this Agreement for a continuous period of ninety (90) days (the “Incapacity Period”), this Agreement shall terminate but Employee shall be entitled to receive Employee’s Salary and Incentive Compensation for an additional 6 months. Employee’s Shares shall be deemed vested through the same 6 month period.

	
6.3  

	
By Reason of Death:  If Employee dies during the Term of or any renewal term hereof this Agreement, Employer shall pay employee’s compensation to the estate of Employee, for an additional 6 months.  Employee’s Shares shall be deemed vested through the same 6 month period.

	
6.4  

	
For Cause:  If the Term of this Agreement is terminated by Employer for Cause: (a) Employee shall be entitled to receive Employee’s Salary and Incentive Compensation only through the date of termination.  However, if a dispute arises between Employer and Employee that is not resolved within sixty (60) days and neither party initiates arbitration proceedings pursuant to Section 10.8, Employer shall have the option to pay Employee the lump sum of Six (6) months base of Employee’s Salary at the time of termination (the “Severance Payment”) rather than Employee’s Salary and Incentive Compensation through the date of termination, and Employee’s Shares shall continue to be deemed vested through the date of such termination for Cause.  Such determination to pay the Severance Payment in lieu of Employee’s Salary and Incentive Compensation shall be made in the reasonable judgment of the Chairman.  If Employer elects to make a payment to Employee of the Severance Payment, the Parties hereto agree that such payment and the payment provided by Section 6.6 shall be Employee’s complete and exclusive remedy for such a termination for Cause.  For purposes of this Agreement, “Cause” shall mean: (i) any act of dishonesty or fraud with respect to Employer; (ii) the commission by Employee of a felony, a crime involving moral turpitude or other act causing material harm to Employer’s standing and reputation; (iii) Employee’s continued failure to perform Employee’s duties or complete tasks assigned by Employer after ten (10) days’ written notice thereof to Employee; or (iv) the actual conduct of, and not merely the allegation of, gross negligence or willful misconduct by Employee with respect to Employer;

  

4

  

	
6.5  

	
Without Cause: If Employer terminates the Employee’s employment without Cause: Employee shall be entitled to receive, for a period of six months (6), Employee’s Base Salary, payable in periodic installments on Employer’s regular paydays, at the rate then in effect.  The payments provided by Sections 6.5 and 6.6 shall be Employee’s complete and exclusive remedy for any termination without Cause.

	
6.6  

	
Change in Control: If employment is terminated in connection with a change in control of the Company, Employee is entitled to six months of current monthly salary paid in one lump sum.  Additionally all unvested stock immediately vest.

	
6.7  

	
Effect of Termination on Unused Vacation Time:  Upon the termination of this Agreement for any reason whatsoever, with the exception of Change In Control, Employee shall also have the right to receive any accrued but unused vacation time, and any benefits vested under the terms of any applicable benefit plans, and within the accrual limitations

	
7.  

	
RETURN OF EMPLOYER PROPERTY:  Employee agrees that upon any termination of his employment, Employee shall return to Employer within a reasonable time not to exceed two (2) weeks, any of Employer’s property in his possession or under his control, including but not limited to, computer/office automation equipment, passwords, keys, electronic ID cards, records and names, addresses, and other information with regard to customers or potential customers of Employer with whom Employee has had contact or done business.

	
8.  

	
RELATIONSHIP OF PARTIES:  The Parties intend that this Agreement create an employee-employer relationship between the Parties.

	
9.  

	
NOTICES:  All notices, required and demands and other communications hereunder must be in writing and shall be deemed to have been duly given when personally delivered or when placed in the United States Mail and forwarded by Registered or Certified Mail, Return Receipt Requested, postage prepaid, or when forwarded via reputable overnight carrier, addressed to the party to whom such notices is being given at the following address:

As to Employer:

ZRHO Beverages Inc.

4446 E. Amberwood Dr.

Phoenix, Arizona 85048

As to Employee:

Edward C. Orr III

                        4446 E. Amberwood Dr.

Phoenix, Arizona 85048

  

5

  

Address Change: Any party may change the address(es) at which notices to it or him, as the case may be, are to be sent by giving the notice of such change to the other Parties in accordance with this Section 9.

	
10.  

	
MISCELLANEOUS:

	
10.1  

	
Entire Agreement:  This Agreement and the Addendums hereto contain the entire agreement of the Parties.  This Agreement may not be altered, amended or modified except in writing duly executed by both of the Parties.

	
10.2  

	
Assignment:  Neither party, without the written consent of the other party, can assign this Agreement.

	
10.3  

	
Binding:  This Agreement shall be binding upon and inure to the benefit of the Parties, their personal representative, successors and assigns and in the event of any subsequent merger, consolidation, or similar transaction by Employer, all rights of Employee shall continue and remain enforceable, at Employee’s election against any said successor or assign.

	
10.4  

	
No Waiver:  The waiver of the breach of any covenant or condition herein shall in no way operate as a continuing or permanent waiver of the same or similar covenant or condition.

	
10.5  

	
Severability:  If any provision of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions will continue in full force without being impaired or invalidated in any way.  The Parties hereto agree to replace any invalid provision with a valid provision which most closely approximates the intent of the invalid provision.

	
10.6  

	
Interpretation:  This Agreement shall not be construed more strongly against any party hereto regardless of which party may have been more responsible for the preparation of Agreement.

	
10.7  

	
Governing Law: This Agreement shall be governed by and construed under the laws of the State of Arizona, without reference to the choice of law principles thereof.

  

6

  

	
10.8  

	
Arbitration:

	
  

	
10.8.1

	
Any dispute or claim arising to or in any way related to this Agreement shall be settled by binding arbitration in Phoenix, Arizona but any dispute or controversy arising out of or interpreting this Agreement shall be settled in accordance with the laws of the State of Arizona as if this Agreement were executed and all actions were performed hereunder within the State of Arizona.  All arbitration shall be conducted in accordance with the rules and regulations of the American Arbitration Association ("AAA").  AAA shall designate an arbitrator from an approved list of arbitrators following both Parties' review and deletion of those arbitrators on the approved list having a conflict of interest with either party.  Each party shall pay its own expenses associated with such arbitration and except for Employer’s obligations under the Securities Exchange Act of 1934, the Parties agree to keep all such matters confidential.  A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter has arisen and in no event shall such demand be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statutes of limitations.  The decision of the arbitrators shall be rendered within 60 days of submission of any claim or dispute, shall be in writing and mailed to all the Parties included in the arbitration.  The decision of the arbitrator shall be binding upon the Parties and judgment in accordance with that decision may be entered in any court having jurisdiction thereof.

	
  

	
10.8.2

	
The only claims or disputes excluded from binding arbitration under this Agreement are the following: any claim by Employee for workers’ compensation benefits or for benefits under an Employer plan that provides its own arbitration procedure; and any claim by either party for equitable relief, including but not limited to, a temporary restraining order, preliminary injunction or permanent injunction against the other party.

	
10.8.3  

	
This agreement to submit all Covered Claims to binding arbitration in no way alters the exclusivity of Employee’s remedy under Section 8.5 in the event of any termination without Cause or the exclusivity of Employee’s remedy under Section 8.4 in the event of any termination with Cause, and does not require Employer to provide Employee with any type of progressive discipline.

	
  

	
10.8.4

	
Title:  Titles to the sections of this Agreement are solely for the convenience of the Parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement.

  

7

  

	
  

	
10.8.5

	
Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but together which shall constitute one and the same instrument.

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

Employer:                                                                           ZRHO BEVERAGES, INC.,

a Nevada corporation

By: /S/ Edward C. Orr III                                                      

Edward C. Orr III

Chairman

Employee:

By: /S/ Edward C. Orr III                                                      

     Edward C. Orr III

     Chief Executive Officer

 

 

  

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ADDENDUM A

 

Job Title:                      Chief Executive Officer

 

Department:                                Executive

Reports To:                      Board of Directors

 

JOB DESCRIPTION FOR EDWARD C. ORR III

 

SUMMARY

The Chief Executive Officer (“CEO”) has primary responsibility for planning, organizing, staffing, and operating ZRHO Beverages, Inc. (“ZRHO”) toward its primary objectives, based on profit and return on capital, and is accountable to the Board of Directors for the results of performance of all employees.

The CEO is accountable for all corporate legal and fiduciary activities.

 

 

The CEO establishes and communicates the management style, corporate culture, business philosophy and ethical values by which ZRHO will operate.

The CEO manages and directs ZRHO by performing the following duties personally or through subordinate managers.

ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

Plans the overall business strategy and goals of ZRHO that will assure a defined rate of return on stockholder investment and establishes objectives for each function to meet those goals, with the cooperation of the Board of Directors.

Plans, coordinates, and controls the daily operation of ZRHO through ZRHO’s managers.  Prepares and presents an annual business plan and budget, for ZRHO’s operations, to the Board of Directors.

Establishes current and long range goals, objectives, plans and policies, subject to approval by the Board of Directors.

Determines the appropriate organization structure and staffing responsibilities required to meet ZRHO’s objectives.  Dispenses advice, guidance, direction, and authorization to carry out major plans, standards and procedures, consistent with established policies and Board approval.

Meets with ZRHO’s executives to ensure that operations are being executed in accordance with ZRHO’s policies.

Oversees the adequacy and soundness of ZRHO’s financial structure.

Reviews operating results of ZRHO, compares them to established objectives, and takes steps to ensure that appropriate measures are taken to correct unsatisfactory results.

	  	
--

	  

  

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Plans and directs all investigations and negotiations pertaining to mergers, joint ventures, the acquisition of businesses, or the sale of major assets with approval of the Board of Directors.

Establishes and maintains an effective system of communications throughout ZRHO.

Fulfills responsibility to the Board of Directors to inform or seek approval for significant matters such as financing, capital expenditures, and appointment of officers.

Ensures that ZRHO business transactions are conducted in accordance with prevailing legal and regulatory requirements.

Reviews and determines approval of all recommendations for compensation of officers, managers and employees.

Evaluates performance of executives for compliance with established policies and objectives of firm and contributions in attaining objectives.

Any other job, duty or task reasonably assigned from time to time by the Board of Directors of ZRHO, acting reasonably.

	  	
--

	  

  

10Exhibit
10.1

 

 

SUBSCRIPTION
AGREEMENT 

 

This
Subscription Agreement (the "Agreement") dated as of December 24, 2014, has been executed by the undersigned (the "Subscriber")
in connection with the offer and sale (the "Offering") of 1,600,000 shares of common stock, $0.001 par value per share
(the "Shares"), at a price of US$0.25 per share of Yosen Group, Inc, a Nevada corporation (the "Company").
The Offering of the Shares is being made in reliance upon the provisions of Regulation S ("Regulation S") promulgated
by the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities
Act"). Upon the terms and subject to the conditions set forth herein, the Subscriber hereby agrees to purchase, and the Company
hereby agrees to issue and sell the shares. In consideration of the mutual promises, representations and warranties set forth
herein, the Company and the Subscriber hereby agree as follows:

 

1.Agreement
to Subscribe

 

1.1Purchase
and Issuance of the Shares. The Subscriber is hereby subscribing for 1,600,000 Shares of Common Stock. The aggregate price
payable for the Shares is US$400,000.00 ("Purchase Price"). At the Closing, Subscriber will deliver to the Company,
or as otherwise instructed by the Company, the Purchase Price by bank check, wire transfer or such other form of payment as shall
be acceptable to the Company, in its sole and absolute discretion.

 

1.2Closing.
The closing for the sale of the Shares to the Subscriber shall take place at the offices of the Company on December 24, 2014 (the
"Closing"), or at such other time and/or such other place as the Company may determine in its sole and absolute
discretion.

 

2.Representations
and Warranties of the Subscriber

 

The
Subscriber represents and warrants to the Company that:

 

2.1No
Government Recommendation or Approval. The Subscriber understands that no United States federal or state agency or similar
agency of any other country, has passed upon or made any recommendation or endorsement of the Company or the Offering of the Shares.

 

2.2Not
a "U.S. Person". The Subscriber is not a "U.S. Person" as defined in Rule 902 of Regulation S
promulgated under the Securities Act, was not organized under the laws of any United States jurisdiction, and was not formed for
the purpose of investing in securities not registered under the Securities Act. At the time the purchase order for this transaction
was originated, the Subscriber was outside the United States.

 

    	1

    

2.3Intent.
The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber's own account and not for the account
or benefit of any U.S. person, and not with a view towards the distribution or dissemination thereof and the Subscriber has no
present arrangement to sell the Shares to or through any person or entity. The Subscriber understands that the Shares must be
held indefinitely unless such Shares are resold in accordance with the provisions of Regulation S, are subsequently registered
under the Securities Act or an exemption from registration is available.

2.4Restrictions
on Transfer. The Subscriber understands that the Shares are being offered in a transaction not involving a public offering
in the United States within the meaning of the Securities Act. The Shares have not been and will not be registered under the Securities
Act, and, if in the future the Subscriber decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be
offered, resold, pledged or otherwise transferred only (A) pursuant to an effective registration statement filed under the Securities
Act, (B) to a non-U.S. person in an offshore transaction in accordance with Rule 903 or Rule 904 of Regulation S of the Securities
Act, (C) pursuant to the resale limitations set forth in Rule 905 of Regulation S, (D) pursuant to an exemption from registration
under the Securities Act provided by Rule 144 thereunder (if available) or (E) pursuant to any other exemption from the registration
requirements of the Securities Act, and in each case in accordance with any applicable securities laws of any state of the United
States or any other jurisdiction. The Subscriber acknowledges, agrees and covenants that it will not engage in hedging transactions
with regard to the Shares prior to the expiration of the distribution compliance period specified in Rule 903 of Regulation S
promulgated under the Act, unless in compliance with the Securities Act. The Subscriber agrees that if any transfer of its Shares
or any interest therein is proposed to be made, as a condition precedent to any such transfer, the transferor may be required
to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration or another exemption from registration,
the Subscriber agrees that it will not resell the Shares to U.S. Persons or within the United States.

2.5.Accredited
and Sophisticated Investor.

 

The
Subscriber is familiar with the term "accredited investor" as defined in Regulation D promulgated under the Securities
Act and is an "accredited investor" within the meaning of such term in Regulation D.

 

The
Subscriber is sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Shares.

 

The
Subscriber is able to bear the economic risk of his investment in the Shares for an indefinite period of time because none of
the Shares have been registered under the Securities Act and therefore cannot be sold unless subsequently registered under the
Securities Act or an exemption from such registration is available.

 

    	2

    

2.6Independent
Investigation. The Subscriber, in making the decision to purchase the Shares, has relied upon an independent investigation
of the Company and has not relied upon any information or representations made by any third parties or upon any oral or written
representations or assurances from the Company, its officers, directors or employees or any other representatives or agents of
the Company, other than as set forth in this Agreement. The Subscriber is familiar with the business, operations and financial
condition of the Company and has had an opportunity to ask questions of, and receive answers from, the Company’s officers
and directors concerning the Company and the terms and conditions of the offering of the Shares and has had full access to such
other information concerning the Company as the Subscriber has requested.

 

2.7Authority.
This Agreement has been validly authorized, executed and delivered by the Subscriber and is a valid and binding agreement enforceable
in accordance with its terms, subject to the general principles of equity and to bankruptcy or other laws affecting the enforcement
of creditors' rights generally. The execution, delivery and performance of this Agreement by the Subscriber does not and will
not conflict with, violate or cause a breach of any agreement, contract or instrument to which the Subscriber is a party.

 

2.8No
Legal Advice from Company. The Subscriber acknowledges that he, she or it has had the opportunity to review this Agreement
and the transactions contemplated by this Agreement and the other agreements entered into between the parties hereto with the
Subscriber's own legal counsel and investment and tax advisors. Except for any statements or representations of the Company made
in this Agreement and the other agreements entered into between the parties hereto, the Subscriber is relying solely on such counsel
and advisors and not on any statements or representations of the Company or any of its representatives or agents for legal, tax
or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of
any jurisdiction.

 

2.9Reliance
on Representations and Warranties. The Subscriber understands that the Shares are being offered and sold to the Subscriber
in reliance on specific provisions of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Subscriber set forth
in this Agreement in order to determine the applicability of such provisions.

2.10No
Advertisements. The undersigned is not subscribing for Shares as a result of or subsequent to any advertisement, article,
notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio, or
presented at any seminar or meeting.

    	3

    

 

3.Representations
and Warranties of the Company

 

The
Company represents and warrants to the Subscriber that:

 

3.1Valid
Issuance of Capital Stock. The shares of Common Stock will, when issued in accordance with the terms of this Agreement, be
duly authorized, validly issued, fully paid and non-assessable.

 

3.2Organization
and Qualification. The Company is a corporation duly incorporated and existing in good standing under the laws of the state
of Nevada and has the requisite corporate power to own its properties and assets and to carry on its business as now being
conducted.

 

3.3Authorization;
Enforcement. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations under
this Agreement and to issue the Shares in accordance with the terms hereof, (ii) the execution, delivery and performance of this
Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary
corporate action, and no further consent or authorization of the Company or its Board of Directors or stockholders is required,
and (iii) this Agreement constitutes valid and binding obligations of the Company enforceable against the Company in accordance
with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium,
reorganization, or similar laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by equitable
principles of general application and except as enforcement of rights to indemnity and contribution may be limited by federal
and state securities laws or principles of public policy.

 

3.4No
Conflicts. To the knowledge of the Company, the execution, delivery and performance of this Agreement and the consummation
by the Company of the transactions

contemplated
hereby do not materially (i) result in a violation of the Company's Articles of Incorporation or By-Laws or (ii) conflict with,
or constitute a default under any agreement, indenture or instrument to which the Company is a party. Other than any SEC or state
securities filings which may be required to be made by the Company subsequent to the Closing, the Company is not required under
federal, state or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency or self-regulatory entity in order for it to perform any of its obligations under this
Agreement or issue the Shares in accordance with the terms hereof.

    	4

    

4.Legends;
Denominations

 

4.1Legend.
The Company will issue the Shares purchased by the Subscriber in the name of the Subscriber and in such denominations to be specified
by the Subscriber prior to the Closing. The Shares will bear the following legend (the "Legend"), and appropriate "stop
transfer" instructions:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT FILED UNDER THE SECURITIES ACT, (B) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF REGULATION S UNDER THE SECURITIES ACT, (C) PURSUANT TO THE RESALE LIMITATIONS SET FORTH IN RULE 905 OF REGULATIONS S UNDER
THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE)
OR (E) PURSUANT TO ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION. HEDGING TRANSACTIONS INVOLVING THESE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

 

4.2Subscriber's
Compliance. Nothing in this Section 4 shall affect in any way the Subscriber's obligations and agreement to comply with all
applicable securities laws upon resale of the Shares.

 

4.3Company’s
Refusal to Register Transfer of Shares. The Company shall refuse to register any transfer of the Shares not made in accordance
with the provisions of Regulation S, pursuant to an effective registration statement filed under the Securities Act, or pursuant
to an available exemption from the registration requirements of the Securities Act.

 

    	5

    

5.Governing
Law; Jurisdiction; Waiver of Jury Trial

 

This
Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. The parties hereto hereby waive
any right to a jury trial in connection with any litigation pursuant to this Agreement and the transactions contemplated hereby.

 

6.Assignment;
Entire Agreement; Amendment

 

6.1Assignment.
Neither this Agreement nor any rights hereunder may be assigned by any party to any other person other than by Subscriber to a
person agreeing to be bound by the terms hereof.

 

6.2Entire
Agreement; Amendment. This Agreement and any other documents delivered pursuant hereto constitute the full and entire understanding
and agreement between the parties with regard to the subject matter hereof, and no party shall be liable or bound to any other
party in any manner by any warranties, representations or covenants except as specifically set forth in this Agreement. Except
as expressly provided in this Agreement, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge, or termination
is sought.

 

7.Notices;
Indemnity

 

7.1Notices.
Unless otherwise provided herein, any notice or other communication to a party hereunder shall be sufficiently given if in writing
and personally delivered or sent by facsimile with copy sent in another manner herein provided or sent by courier (which for all
purposes of this Agreement shall include Federal Express, UPS or other recognized overnight courier) or mailed to said party by
certified mail, return receipt requested, at its address provided for herein or such other address as either may designate for
itself in such notice to the other and communications shall be deemed to have been received when delivered personally on the scheduled
arrival date when sent by next day or 2-day courier service or if sent by facsimile upon receipt of confirmation of transmittal
or, if sent by mail, then three days after deposit in the mail.

 

7.2Indemnification.
Each party shall indemnify the other against any loss, cost or damages (including reasonable attorney's fees and expenses) incurred
as a result of such party's breach of any representation, warranty, covenant or agreement in this Agreement.

 

    	6

    

8.Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing
such counterparts, and all of which together shall constitute one instrument.

 

9.Survival;
Severability

 

The
representations, warranties, covenants and agreements of the parties hereto shall survive the Closing. In the event that any provision
of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue in full force and effect without said provision; provided that no such severability shall be effective if it materially
changes the economic benefit of this Agreement to any party.

 

10.Titles
and Subtitles

 

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

 

 

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[REMAINDER
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    	8

    

 

	Name of the Subscriber: Shu Chen	 	 
	 	 	 
	Date of Subscription: December 24, 2014	 	 
	Place of Residency and/or Principal Place of Business: Hangzhou China,	 
	Address of Subscriber:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Signature of Subscriber:	 	 
	By:	/s/ Shu Chen	 
	Name:	Shu Chen	 

 

 

 

    	9

    

 

 

	This
subscription is accepted by the Company on the 24th day of December, 2014
	 
	 	 	YOSEN GROUP, INC.
	 	 	 
	 	Name:	/s/ Zhenggang Wang
	 	Title:	Chief Executive Officer

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