Document:

American Lorain Corporation.: Exhibit 4.2 - Prepared by TNT Filings
Inc.

  

Exhibit 4.2

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AND, UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT, AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON
EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER BONA FIDE LOAN SECURED BY SUCH SECURITIES.

SERIES B COMMON STOCK PURCHASE
WARRANT

AMERICAN
LORAIN CORPORATION

	
 

	
 

	
Warrant Shares: _______

	
Issuance Date: October
  --, 2009

	
 

	
 

          THIS
SERIES B COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that,
for value received, _____________ (the “Holder”) is entitled, upon the
terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the six (6) month anniversary of the date
hereof (the “Initial Exercise Date”) and on or prior to the close of
business on the 30 month anniversary of the Initial Exercise Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from American
Lorain Corporation, a Delaware corporation (the “Company”), up to ______
shares (the “Warrant Shares”) of Common Stock. The purchase price of one
share of Common Stock under this Warrant shall be equal to the Exercise Price,
as defined in Section 2(b). 

          Section
1. Definitions. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth
in that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated October 27, 2009, among
the Company and the purchasers signatory thereto.

          Section
2. Exercise.

	
 

	
 

	
 

	
          a)
  Exercise of Warrant. Exercise of the purchase rights represented by
  this Warrant may be made, in whole or in part, at any time or times on or
  after the Initial Exercise Date and on or before the Termination Date by
  delivery to the Company (or such other office or agency of the Company as it
  may designate by notice in writing to the registered Holder at the address of
  the Holder appearing on the books of the Company) of a duly executed
  facsimile copy of the Notice of Exercise Form annexed hereto; and, within three (3) Trading Days of the
  date said Notice of Exercise is delivered to the Company, the Company shall
  have received payment of the aggregate Exercise Price of the shares thereby
  purchased by wire transfer or, if available, pursuant to the cashless
  exercise procedure specified in Section 2(c) below. Notwithstanding anything
  herein to the contrary, the Holder shall not be required to physically
  surrender this Warrant to the Company until the Holder has purchased all of
  the Warrant Shares available hereunder and the Warrant has been exercised in
  full, in which case, the Holder shall surrender this Warrant to the Company
  for cancellation within three (3) Trading Days of the date the final Notice
  of Exercise is delivered to the Company. Partial exercises of this Warrant
  resulting in purchases of a portion of the total number of Warrant Shares
  available hereunder shall have the effect of lowering the outstanding number
  of Warrant Shares purchasable hereunder in an amount equal to the applicable
  number of Warrant Shares purchased. The Holder may not exercise this Warrant
  more than four times. The Holder and the Company shall maintain records
  showing the number of Warrant Shares purchased and the date of such
  purchases. The Company shall deliver any objection to any Notice of Exercise
  Form within 1 Business Day of receipt of such notice. In the event of any
  dispute or discrepancy, the records of the Holder shall be controlling and
  determinative in the absence of manifest error. The Holder and any assignee, by
  acceptance of this Warrant, acknowledge and agree that, by reason of the
  provisions of this paragraph, following the purchase of a portion of the
  Warrant Shares hereunder, the number of Warrant Shares available for purchase
  hereunder at any given time may be less than the amount stated on the face hereof.

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          b)
  Exercise Price. The
  exercise price per share of the Common Stock under this Warrant shall be $3.70,
  subject to adjustment hereunder (the “Exercise Price”).

	
 

	
 

	
 

	
          c)
  Cashless Exercise. If at any time after the Initial Exercise Date
  there is no effective Registration Statement registering, or no current
  prospectus available for, and exemption from registration under Rule 144
  would not then be available for, the resale of the Warrant Shares by the
  Holder, then this Warrant may also be exercised, in whole or in part, at such
  time by means of a “cashless exercise” in which the Holder shall be entitled
  to receive a certificate for the number of Warrant Shares equal to the
  quotient obtained by dividing [(A-B) (X)] by (A), where:

	
 

	
 

	
 

	
 (A) = the VWAP on the Trading Day
  immediately preceding the date on which Holder elects to exercise this
  Warrant by means of a “cashless exercise,” as set forth in the applicable
  Notice of Exercise;

	
 

	
 

	
 

	
(B) = the Exercise
  Price of this Warrant, as adjusted hereunder; and 

	
 

	
 

	
 

	
(X) = the number of
  Warrant Shares that would be issuable upon exercise of this Warrant in
  accordance with the terms of this Warrant if such exercise were by means of a
  cash exercise rather than a cashless exercise.

          d)  Mechanics of Exercise. 

	
 

	
 

	
 

	
          i.
  Delivery of Certificates Upon Exercise. Certificates for shares
  purchased hereunder shall be transmitted by the Transfer Agent to the Holder
  by crediting the account of the Holder’s prime broker with the Depository
  Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”)
  system if the Company is then a participant in such system and either (A)
  there is an effective Registration Statement permitting the resale of the
  Warrant Shares by the Holder or (B) the shares are eligible for resale by the
  Holder without volume or manner-of-sale limitations pursuant to Rule 144, and
  otherwise by physical delivery to the address specified by the Holder in the
  Notice of Exercise by the date that is three (3) Trading Days after the
  latest of (A) the delivery to the Company of the Notice of Exercise Form, (B)
  surrender of this Warrant (if required), and (C) payment of the aggregate
  Exercise Price as set forth above (including by cashless exercise, if
  permitted) (such date, the “Warrant Share Delivery Date”). This
  Warrant shall be deemed to have been exercised on the first date on which all
  of the foregoing have been delivered to the Company. The Warrant Shares shall
  be deemed to have been issued, and Holder or any other person so designated
  to be named therein shall be deemed to have become a holder of record of such
  shares for all purposes, as of the date the Warrant has been exercised, with
  payment to the Company of the Exercise Price (or by cashless exercise, if
  permitted) and all taxes required to be paid by the Holder, if any, pursuant
  to Section 2(d)(vi) prior to the issuance of such shares, having been paid.
  If the Company fails for any reason to deliver to the Holder certificates
  evidencing the Warrant Shares subject to a Notice of Exercise by the third
  Trading Day following the Warrant Share Delivery Date, the Company shall pay
  to the Holder, in cash, as liquidated damages and not as a penalty, for each
  $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the
  Common Stock on the date of the applicable Notice of Exercise), $10 per
  Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after
  such liquidated damages begin to accrue) for each Trading Day after such
  Warrant Share Delivery Date until such certificates are delivered or Holder
  rescinds such exercise. Notwithstanding anything herein to the contrary, the
  Company shall not be obligated to pay liquidated damages following the date
  of a Buy-In (as hereinafter defined) by the holder. 

	
 

	
 

	
 

	
          ii.
  Delivery of New Warrants Upon Exercise. If this Warrant shall have
  been exercised in part, the Company shall, at the request of a Holder and
  upon surrender of this Warrant certificate, at the time of delivery of the
  certificate or certificates representing Warrant Shares, deliver to Holder a
  new Warrant evidencing the rights of Holder to purchase the unpurchased
  Warrant Shares called for by this Warrant, which new Warrant shall in all
  other respects be identical with this Warrant.

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          iii.
  Rescission Rights. If the Company fails to cause the Transfer Agent to
  transmit to the Holder a certificate or the certificates representing the
  Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery
  Date, then, the Holder will have the right to rescind such exercise.

	
 

	
 

	
 

	
          iv.
  Compensation for Buy-In on Failure to Timely Deliver Certificates Upon
  Exercise. In addition to any other rights available to the Holder, if the
  Company fails to cause the Transfer Agent to transmit to the Holder a
  certificate or the certificates representing the Warrant Shares pursuant to
  an exercise on or before the third Trading Day following the Warrant Share
  Delivery Date, and if after such date the Holder is required by its broker to
  purchase (in an open market transaction or otherwise) or the Holder’s
  brokerage firm otherwise purchases, shares of Common Stock to deliver in
  satisfaction of a sale by the Holder of the Warrant Shares which the Holder
  anticipated receiving upon such exercise (a “Buy-In”), then the
  Company shall , within three (3) Trading Days after the Holder’s request and
  in the Holder’s discretion, either (i) pay cash to the Holder in an amount
  [if any, by which (x) the Holders’ total purchase price (including brokerage
  commissions, if any) for the shares of Common Stock so purchased exceeds (y)
  the amount obtained by multiplying (1) the number of Warrant Shares that the
  Company was required to deliver to the Holder in connection with the exercise
  at issue times (2) the price at which the sell order giving rise to such
  purchase obligation was executed, and (B) at the option of the Holder, either
  reinstate the portion of the Warrant and equivalent number of Warrant Shares
  for which such exercise was not honored (in which case such exercise shall be
  deemed rescinded) or deliver to the Holder the number of shares of Common
  Stock that would have been issued had the Company timely complied with its
  exercise and delivery obligations hereunder. For example, if the Holder purchases
  Common Stock having a total purchase price of $11,000 to cover a Buy-In with
  respect to an attempted exercise of shares of Common Stock with an aggregate
  sale price giving rise to such purchase obligation of $10,000, under clause
  (A) of the immediately preceding sentence the Company shall be required to
  pay the Holder $1,000. The Holder shall provide the Company written notice
  indicating the amounts payable to the Holder in respect of the Buy-In and,
  upon request of the Company, evidence of the amount of such loss. Nothing
  herein shall limit a Holder’s right to pursue any other remedies available to
  it hereunder, at law or in equity including, without limitation, a decree of
  specific performance and/or injunctive relief with respect to the Company’s failure
  to timely deliver certificates representing shares of Common Stock upon
  exercise of the Warrant as required pursuant to the terms hereof.

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          v.
  No Fractional Shares or Scrip. No fractional shares or scrip
  representing fractional shares shall be issued upon the exercise of this
  Warrant. As to any fraction of a share which the Holder would otherwise be
  entitled to purchase upon such exercise, the Company shall, at its election,
  either pay a cash adjustment in respect of such final fraction in an amount
  equal to such fraction multiplied by the Exercise Price or round up to the
  next whole share.

	
 

	
 

	
 

	
          vi.
  Charges, Taxes and Expenses. Issuance of certificates for Warrant
  Shares shall be made without charge to the Holder for any issue or transfer
  tax or other incidental expense in respect of the issuance of such
  certificate, all of which taxes and expenses shall be paid by the Company,
  and such certificates shall be issued in the name of the Holder or in such
  name or names as may be directed by the Holder; provided, however, that in
  the event certificates for Warrant Shares are to be issued in a name other
  than the name of the Holder, this Warrant when surrendered for exercise shall
  be accompanied by the Assignment Form attached hereto duly executed by the
  Holder and the Company may require, as a condition thereto, the payment of a
  sum sufficient to reimburse it for any transfer tax incidental thereto.

	
 

	
 

	
 

	
          vii.
  Closing of Books. The Company will not close its stockholder books or
  records in any manner which prevents the timely exercise of this Warrant,
  pursuant to the terms hereof.

	
 

	
 

	
 

	
          e)
  Holder’s Exercise Limitations. The Company shall not effect any
  exercise of this Warrant, and a Holder shall not have the right to exercise
  any portion of this Warrant, pursuant to Section 2 or otherwise, to the
  extent that after giving effect to such issuance after exercise as set forth
  on the applicable Notice of Exercise, the Holder (together with the Holder’s
  Affiliates, and any other Persons acting as a group together with the Holder
  or any of the Holder’s Affiliates), would beneficially own in excess of the
  Beneficial Ownership Limitation (as defined below). For purposes of the
  foregoing sentence, the number of shares of Common Stock beneficially owned
  by the Holder and its Affiliates shall include the number of shares of Common
  Stock issuable upon exercise of this Warrant with respect to which such
  determination is being made, but shall exclude the number of shares of Common
  Stock which would be issuable upon (i) exercise of the remaining,
  nonexercised portion of this Warrant beneficially owned by the Holder or any
  of its Affiliates and (ii) exercise or conversion of the unexercised or
  nonconverted portion of any other securities of the Company (including,
  without limitation, any other Common Stock Equivalents) subject to a
  limitation on conversion or exercise analogous to the limitation contained
  herein beneficially owned by the Holder or any of its Affiliates. Except as
  set forth in the preceding sentence, for purposes of this Section 2(e),
  beneficial ownership shall be calculated in accordance with Section 13(d) of
  the Exchange Act and the rules and regulations promulgated thereunder, it
  being acknowledged by the Holder that the Company is not representing to the 

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Holder that such calculation is in compliance with Section 13(d)
of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2(e) applies, the determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable shall be in the sole discretion of the Holder, and the submission of
a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(e), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the
Company or (C) a more recent written notice by the Company or the Transfer Agent
setting forth the number of shares of Common Stock outstanding. Upon the written
or oral request of a Holder, the Company shall within two Trading Days confirm
orally and in writing to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of
the Company, including this Warrant, by the Holder or its Affiliates since the
date as of which such number of outstanding shares of Common Stock was reported.
The “Beneficial Ownership Limitation” shall be 4.99% of the number of
shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock issuable upon exercise of this Warrant. The
Holder may decrease or, upon not less than 61 days’ prior notice to the Company,
may increase the Beneficial Ownership Limitation provisions of this Section
2(e), provided that the Beneficial Ownership Limitation in no event exceeds
9.99% of the number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon exercise of this
Warrant held by the Holder and the provisions of this Section 2(e) shall
continue to apply. Any such increase will not be effective until the 61st
day after such notice is delivered to the Company. The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 2(e) to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

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Section
3. Certain Adjustments.

	
 

	
 

	
 

 

	
          a)
  Stock Dividends and Splits. If the Company, at any time while this Warrant
  is outstanding: (i) pays a stock dividend or otherwise makes a distribution
  or distributions on shares of its Common Stock or any other equity or equity
  equivalent securities payable in shares of Common Stock (which, for avoidance
  of doubt, shall not include any shares of Common Stock issued by the Company
  upon exercise of this Warrant), (ii) subdivides outstanding shares of Common
  Stock into a larger number of shares, (iii) combines (including by way of
  reverse stock split) outstanding shares of Common Stock into a smaller number
  of shares or (iv) issues by reclassification of shares of the Common Stock
  any shares of capital stock of the Company, then in each case the Exercise
  Price shall be multiplied by a fraction of which the numerator shall be the
  number of shares of Common Stock (excluding treasury shares, if any)
  outstanding immediately before such event and of which the denominator shall
  be the number of shares of Common Stock outstanding immediately after such
  event, and the number of shares issuable upon exercise of this Warrant shall
  be proportionately adjusted such that the aggregate Exercise Price of this
  Warrant shall remain unchanged. Any adjustment made pursuant to this Section
  3(a) shall become effective immediately after the record date for the
  determination of stockholders entitled to receive such dividend or
  distribution and shall become effective immediately after the effective date
  in the case of a subdivision, combination or re-classification.

	
 

	
 

	
 

	
          b)
  Subsequent Equity Sales. If the Company or any Subsidiary thereof, as
  applicable, at any time while this Warrant is outstanding, shall sell or
  grant any option to purchase, or sell or grant any right to reprice, or
  otherwise dispose of or issue (or announce any offer, sale, grant or any
  option to purchase or other disposition) any Common Stock or Common Stock
  Equivalents entitling any Person to acquire shares of Common Stock, at an
  effective price per share less than the then Exercise Price (such lower
  price, the “Base Share Price” and such issuances collectively, a “Dilutive
  Issuance”) (if the holder of the Common Stock or Common Stock Equivalents
  so issued shall at any time, whether by operation of purchase price
  adjustments, reset provisions, floating conversion, exercise or exchange
  prices or otherwise, or due to warrants, options or rights per share which
  are issued in connection with such issuance, be entitled to receive shares of
  Common Stock at an effective price per share that is less than the Exercise
  Price, such issuance shall be deemed to have occurred for less than the
  Exercise Price on such date of the Dilutive Issuance), then, the Exercise
  Price shall be reduced to a price equal to the Base Share Price (but in no
  event below $3.00, adjusted for any subsequent stock splits, reverse splits
  and similar capital adjustments). Such adjustment shall be made whenever such
  Common Stock or Common Stock Equivalents are issued. Notwithstanding the
  foregoing, no adjustments shall be made, paid or issued under this Section
  3(b) in respect of an Exempt Issuance. The Company shall notify the Holder,
  in writing, no later than the Trading Day following the issuance of any
  Common Stock or Common Stock Equivalents subject to this Section 3(b),
  indicating therein the applicable issuance price, or applicable reset price,
  exchange price, conversion price and other pricing terms (such notice, the “Dilutive
  Issuance Notice”).

	
 

	
 

	
 

	
          c)
  Pro Rata Distributions. If the Company, at any time while this Warrant
  is outstanding, shall distribute to all holders of Common Stock (and not to
  the Holders) evidences of its indebtedness or assets (including cash and cash
  dividends) or rights or warrants to subscribe for or purchase any security
  other than the Common Stock (which shall be subject to Section 3(b)), then in
  each such case the Exercise Price shall be adjusted by multiplying the
  Exercise Price in effect immediately prior to the record date fixed for
  determination of stockholders entitled to receive such distribution by a
  fraction of which the denominator shall be the VWAP determined as of the
  record date mentioned above, and of which the numerator shall be such VWAP on
  such record date less the then per share fair market value at such record
  date of the portion of such assets or evidence of indebtedness or rights or
  warrants so distributed applicable to one outstanding share of the Common
  Stock as determined by the Board of Directors in good faith. In either case
  the adjustments shall be described in a statement provided to the Holder of
  the portion of assets or evidences of indebtedness so distributed or such
  subscription rights applicable to one share of Common Stock. Such adjustment
  shall be made whenever any such distribution is made and shall become
  effective immediately after the record date mentioned above.

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d) Fundamental Transaction. If, at any time
  while this Warrant is outstanding, (i) the Company,
  directly or indirectly, in one or more related transactions effects
  any merger or consolidation of the Company with or into another Person, (ii)
  the Company, directly or indirectly, effects any sale of
  all or substantially all of its assets in one or a series of related
  transactions, (iii) any, direct or indirect, purchase offer, tender offer or
  exchange offer (whether by the Company or another Person) is completed
  pursuant to which holders of Common Stock are permitted to sell, tender or
  exchange their shares for other securities, cash or property and has been
  accepted by the holders of 50% or more of the outstanding Common Stock, (iv)
  the Company, directly or indirectly, in one or more related transactions
  effects any reclassification, reorganization or recapitalization of the
  Common Stock or any compulsory share exchange pursuant to which the Common
  Stock is effectively converted into or exchanged for other securities, cash
  or property, (not including a migratory merger) or (v) the Company,
  directly or indirectly, in one or more related transactions consummates
  a stock or share purchase agreement or other business combination (including, without limitation, a
  reorganization, recapitalization, spin-off or scheme of arrangement) with another
  Person (not including a migratory merger) whereby such other Person acquires more than 50% of the outstanding shares of
  Common Stock (not including any shares of Common Stock held by the other
  Person or other Persons making or party to, or associated or affiliated with
  the other Persons making or party to, such stock or share purchase agreement or other business combination), (each
  a “Fundamental Transaction”), then, upon any subsequent exercise of
  this Warrant, the Holder shall have the right to receive, for each Warrant
  Share that would have been issuable upon such exercise immediately prior to
  the occurrence of such Fundamental Transaction, at the option of the Holder
  (without regard to any limitation in Section 2(e) on the exercise of this
  Warrant), the number of shares of Common Stock of the successor or acquiring
  corporation or of the Company, if it is the surviving corporation, and any
  additional consideration (the “Alternate Consideration”) receivable as
  a result of such Fundamental Transaction by a holder of the number of shares
  of Common Stock for which this Warrant is exercisable immediately prior to
  such Fundamental Transaction (without regard to any limitation in Section
  2(e) on the exercise of this Warrant). For purposes of any such exercise, the
  determination of the Exercise Price shall be appropriately adjusted to apply
  to such Alternate Consideration based on the amount of Alternate Consideration issuable in
  respect of one share of Common Stock in such Fundamental Transaction, and the
  Company shall apportion the Exercise Price among the Alternate Consideration
  in a reasonable manner reflecting the relative value of any different
  components of the Alternate Consideration. If holders of Common Stock are
  given any choice as to the securities, cash or property to be received in a
  Fundamental Transaction, then the Holder shall be given the same choice as to
  the Alternate Consideration it receives upon any exercise of this Warrant
  following such Fundamental Transaction. To the extent necessary to effectuate
  the foregoing provisions, any successor to the Company or surviving entity in
  such Fundamental Transaction shall issue to the Holder a new warrant
  consistent with the foregoing provisions and evidencing the Holder’s right to
  exercise such warrant into Alternate Consideration. The terms of any
  agreement pursuant to which a Fundamental Transaction is effected shall
  include terms requiring any such successor or surviving entity to comply with
  the provisions of this Section 3(e) and insuring that this Warrant (or
  any such replacement security) will be similarly adjusted upon any subsequent
  transaction analogous to a Fundamental Transaction. Notwithstanding anything
  to the contrary, in the event of a Fundamental Transaction that is (1) an all
  cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3
  under the Exchange Act or (3) a Fundamental Transaction involving a Person
  not traded on a national securities exchange, the Company or any successor
  entity shall pay at the Holder’s option, exercisable at any time concurrently
  with or within 30 days after the consummation of the Fundamental Transaction,
  an amount of cash equal to the value of this Warrant as determined in
  accordance with the Black-Scholes option pricing formula using an expected
  volatility equal to the 100-day historical price volatility obtained from the
  HVT function on Bloomberg L.P. as of the trading day immediately prior to the
  public announcement of the Fundamental Transaction.

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          e)
  Calculations. All calculations under this Section 3 shall be made to
  the nearest cent or the nearest 1/100th of a share, as the case may be. For
  purposes of this Section 3, the number of shares of Common Stock deemed to be
  issued and outstanding as of a given date shall be the sum of the number of
  shares of Common Stock (excluding treasury shares, if any) issued and
  outstanding.

	
 

	
 

	
 

	
          f)
  Notice to Holder. 

	
 

	
 

	
 

	
          i.
  Adjustment to Exercise Price. Whenever the Exercise Price is adjusted
  pursuant to any provision of this Section 3, the Company shall promptly mail
  to the Holder a notice setting forth the Exercise Price after such adjustment
  and setting forth a brief statement of the facts requiring such adjustment. 

	
 

	
 

	
 

	
          ii.
  Notice to Allow Exercise by Holder. If (A) the Company shall declare a
  dividend (or any other distribution in whatever form) on the Common Stock,
  (B) the Company shall declare a special nonrecurring cash dividend on or a
  redemption of the Common Stock, (C) the Company shall authorize the granting
  to all holders of the Common Stock rights or warrants to subscribe for or
  purchase any shares of capital stock of any class or of any rights, (D) the approval of any
  stockholders of the Company shall be required in connection with any
  reclassification of the Common Stock, any consolidation or merger to which
  the Company is a party, any sale or transfer of all or substantially all of
  the assets of the Company, or any compulsory share exchange whereby the
  Common Stock is converted into other securities, cash or property, or (E) the
  Company shall authorize the voluntary or involuntary dissolution, liquidation
  or winding up of the affairs of the Company, then, in each case, the Company
  shall cause to be mailed to the Holder at its last address as it shall appear
  upon the Warrant Register of the Company, at least 20 calendar days prior to
  the applicable record or effective date hereinafter specified, a notice
  stating (x) the date on which a record is to be taken for the purpose of such
  dividend, distribution, redemption, rights or warrants, or if a record is not
  to be taken, the date as of which the holders of the Common Stock of record
  to be entitled to such dividend, distributions, redemption, rights or
  warrants are to be determined or (y) the date on which such reclassification,
  consolidation, merger, sale, transfer or share exchange is expected to become
  effective or close, and the date as of which it is expected that holders of
  the Common Stock of record shall be entitled to exchange their shares of the
  Common Stock for securities, cash or other property deliverable upon such
  reclassification, consolidation, merger, sale, transfer or share exchange;
  provided that the failure to mail such notice or any defect therein or in the
  mailing thereof shall not affect the validity of the corporate action
  required to be specified in such notice. To the extent that any notice
  provided hereunder constitutes, or contains, material, non-public information
  regarding the Company or any of the Subsidiaries, the Company shall
  simultaneously file such notice with the Commission pursuant to a Current
  Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant
  during the period commencing on the date of such notice to the effective date
  of the event triggering such notice except as may otherwise be expressly set
  forth herein.

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Section
4. Transfer of
Warrant.

	
 

	
 

	
 

	
          a)
  Transferability. Subject to compliance with any applicable securities
  laws and the conditions set forth in Section 4(d) hereof and to the
  provisions of Section 4.1 of the Purchase Agreement, this Warrant and all
  rights hereunder (including, without limitation, any registration rights) are
  transferable, in whole or in part, upon five (5) days written notice to the
  Company and the surrender of this Warrant at the principal office of the
  Company or its designated agent, together with a written assignment of this
  Warrant substantially in the form attached hereto duly executed by the Holder
  or its agent or attorney and funds sufficient to pay any transfer taxes
  payable upon the making of such transfer. Upon such surrender and, if
  required, such payment, the Company shall execute and deliver a new Warrant
  or Warrants in the name of the assignee or assignees, as applicable, and in
  the denomination or denominations specified in such instrument of assignment,
  and shall issue to the assignor a new Warrant evidencing the portion of this
  Warrant not so assigned, and this Warrant shall promptly be cancelled. The
  Warrant, if properly assigned in accordance herewith, may be
  exercised by a new holder for the purchase of Warrant Shares without having a
  new Warrant issued. 

9

	
 

	
 

	
 

	
 

	
 

	
          b)
  New Warrants. This Warrant may be divided or combined with other
  Warrants upon presentation hereof at the aforesaid office of the Company,
  together with a written notice specifying the names and denominations in
  which new Warrants are to be issued, signed by the Holder or its agent or
  attorney. Subject to compliance with Section 4(a), as to any transfer which
  may be involved in such division or combination, the Company shall execute
  and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
  to be divided or combined in accordance with such notice. All Warrants issued
  on transfers or exchanges shall be dated the Issuance Date and shall be
  identical with this Warrant except as to the number of Warrant Shares
  issuable pursuant thereto. 

	
 

	
 

	
 

	
          c)
  Warrant Register. The Company shall register this Warrant, upon
  records to be maintained by the Company for that purpose (the “Warrant
  Register”), in the name of the record Holder hereof from time to time.
  The Company may deem and treat the registered Holder of this Warrant as the
  absolute owner hereof for the purpose of any exercise hereof or any
  distribution to the Holder, and for all other purposes, absent actual notice
  to the contrary.

	
 

	
 

	
 

	
          d)
  Transfer Restrictions. If, at the time of the surrender of this
  Warrant in connection with any transfer of this Warrant, the transfer of this
  Warrant shall not be either (i) registered pursuant to an effective
  registration statement under the Securities Act and under applicable state
  securities or blue sky laws or (ii) eligible for resale without volume or
  manner-of-sale restrictions or current public information requirements
  pursuant to Rule 144, the Company may require, as a condition of allowing
  such transfer, that the Holder or transferee of this Warrant, as the case may
  be, comply with the provisions of Section 4.1 of the Purchase Agreement.

	
 

	
 

	
 

	
          e)
  Representation by the Holder. Unless the Holder exercises this Warrant
  by cashless exercise pursuant to Section 2(c), the Holder, by the acceptance
  hereof, represents and warrants that it is acquiring this Warrant and, upon
  any exercise hereof, will acquire the Warrant Shares issuable upon such
  exercise, for its own account and not with a view to or for distributing or
  reselling such Warrant Shares or any part thereof in violation of the
  Securities Act or any applicable state securities law, except pursuant to
  sales registered or exempted under the Securities Act.

Section 5. Miscellaneous.

	
 

	
 

	
 

	
          a)
  No Rights as Stockholder Until Exercise. This Warrant does not entitle
  the Holder to any voting rights, dividends or other rights as a stockholder
  of the Company prior to the exercise hereof as set forth in Section 2(d)(i). 

	
 

	
 

	
 

	
          b)
  Loss, Theft, Destruction or Mutilation of Warrant. The Company
  covenants that upon receipt by the Company of evidence reasonably
  satisfactory to it of the loss, theft, destruction or mutilation of this
  Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or
  destruction, of indemnity or security reasonably satisfactory to it (which,
  in the case of the Warrant, shall not include the posting of any bond), and
  upon surrender and cancellation of such Warrant or stock certificate, if
  mutilated, the Company will make and deliver a new Warrant or stock
  certificate of like tenor and dated as of such cancellation, in lieu of such
  Warrant or stock certificate.

10

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          d)
  Authorized Shares. 

	
 

	
 

	
 

	
          The
  Company covenants that, during the period the Warrant is outstanding, it will
  reserve from its authorized and unissued Common Stock a sufficient number of
  shares to provide for the issuance of the Warrant Shares upon the exercise of
  any purchase rights under this Warrant. The Company further covenants that
  its issuance of this Warrant shall constitute full authority to its officers
  who are charged with the duty of executing stock certificates to execute and
  issue the necessary certificates for the Warrant Shares upon the exercise of
  the purchase rights under this Warrant. The Company will take all such
  reasonable action as may be necessary to assure that such Warrant Shares may
  be issued as provided herein without violation of any applicable law or regulation,
  or of any requirements of the Trading Market upon which the Common Stock may
  be listed. The Company covenants that all Warrant Shares which may be issued
  upon the exercise of the purchase rights represented by this Warrant will,
  upon exercise of the purchase rights represented by this Warrant and payment
  for such Warrant Shares in accordance herewith, be duly authorized, validly
  issued, fully paid and nonassessable and free from all taxes, liens and
  charges created by the Company in respect of the issue thereof (other than
  taxes in respect of any transfer occurring contemporaneously with such
  issue).

	
 

	
 

	
 

	
          Except
  and to the extent as waived or consented to by the Holder, the Company shall
  not by any action, including, without limitation, amending its certificate of
  incorporation or through any reorganization, transfer of assets,
  consolidation, merger, dissolution, issue or sale of securities or any other
  voluntary action, avoid or seek to avoid the observance or performance of any
  of the terms of this Warrant, but will at all times in good faith assist in
  the carrying out of all such terms and in the taking of all such actions as
  may be necessary or appropriate to protect the rights of Holder as set forth
  in this Warrant against impairment. Without limiting the generality of the
  foregoing, the Company will (i) not increase the par value of any Warrant
  Shares above the amount payable therefor upon such exercise immediately prior
  to such increase in par value, (ii) take all such action as may be necessary
  or appropriate in order that the Company may validly and legally issue fully
  paid and nonassessable Warrant Shares upon the exercise of this Warrant and
  (iii) use reasonable best efforts to obtain all such authorizations, exemptions or consents from any
  public regulatory body having jurisdiction thereof, as may be, necessary to
  enable the Company to perform its obligations under this Warrant.

11

	
 

	
 

	
 

	
 

	
 

	
          Before
  taking any action which would result in an adjustment in the number of Warrant
  Shares for which this Warrant is exercisable or in the Exercise Price, the
  Company shall obtain all such authorizations or exemptions thereof, or
  consents thereto, as may be necessary from any public regulatory body or
  bodies having jurisdiction thereof.

	
 

	
 

	
 

	
          e)
  Jurisdiction. All questions concerning the construction, validity,
  enforcement and interpretation of this Warrant shall be determined in
  accordance with the provisions of the Purchase Agreement.

	
 

	
 

	
 

	
          f)
  Restrictions. The Holder acknowledges that the Warrant Shares acquired
  upon the exercise of this Warrant, if not registered and the Holder does not
  utilize cashless exercise, will have restrictions upon resale imposed by
  state and federal securities laws.

	
 

	
 

	
 

	
          g)
  Nonwaiver and Expenses. No course of dealing or any delay or failure
  to exercise any right hereunder on the part of Holder shall operate as a
  waiver of such right or otherwise prejudice Holder’s rights, powers or
  remedies, notwithstanding the fact that all rights hereunder terminate on the
  Termination Date. If the Company willfully and knowingly fails to comply with
  any provision of this Warrant, which results in any material damages to the
  Holder, the Company shall pay to Holder such amounts as shall be sufficient
  to cover any costs and expenses including, but not limited to, reasonable
  attorneys’ fees, including those of appellate proceedings, incurred by Holder
  in collecting any amounts due pursuant hereto or in otherwise enforcing any
  of its rights, powers or remedies hereunder.

	
 

	
 

	
 

	
          h)
  Notices. Any notice, request or other document required or permitted
  to be given or delivered to the Holder by the Company shall be delivered in
  accordance with the notice provisions of the Purchase Agreement.

	
 

	
 

	
 

	
          i)
  Limitation of Liability. No provision hereof, in the absence of any
  affirmative action by Holder to exercise this Warrant to purchase Warrant
  Shares, and no enumeration herein of the rights or privileges of Holder,
  shall give rise to any liability of Holder for the purchase price of any
  Common Stock or as a stockholder of the Company, whether such liability is
  asserted by the Company or by creditors of the Company.

	
 

	
 

	
 

	
          j)
  Remedies. The Holder, in addition to being entitled to exercise all
  rights granted by law, including recovery of damages, will be entitled to
  specific performance of its rights under this Warrant. The Company agrees
  that monetary damages would not be adequate compensation for any loss
  incurred by reason of a breach by it of the provisions of this Warrant and
  hereby agrees to waive and not to assert the defense in any action for
  specific performance that a remedy at law would be adequate.

12

	
 

	
 

	
 

	
          k)
  Successors and Assigns. Subject to applicable securities laws, this
  Warrant and the rights and obligations evidenced hereby shall inure to the
  benefit of and be binding upon the successors and permitted assigns of the
  Company and the successors and permitted assigns of Holder. The provisions of
  this Warrant are intended to be for the benefit of any Holder from time to
  time of this Warrant and shall be enforceable by the Holder or holder of
  Warrant Shares.

	
 

	
 

	
 

	
          l)
  Amendment. This Warrant may be modified or amended or the provisions
  hereof waived with the written consent of the Company and the
  Holder. 

	
 

	
 

	
 

	
          m)
  Severability. Wherever possible, each provision of this Warrant shall
  be interpreted in such manner as to be effective and valid under applicable
  law, but if any provision of this Warrant shall be prohibited by or invalid
  under applicable law, such provision shall be ineffective to the extent of
  such prohibition or invalidity, without invalidating the remainder of such
  provisions or the remaining provisions of this Warrant.

	
 

	
 

	
 

	
          n)
  Headings. The headings used in this Warrant are for the convenience of
  reference only and shall not, for any purpose, be deemed a part of this
  Warrant.

********************

(Signature Pages Follow)

13

          IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above indicated.

	
 

	
AMERICAN LORAIN CORPORATION

	
 

	
 

	
 

	
By:__________________________________________

	
 

	
 Name:

	
 

	
 Title:

14

NOTICE OF EXERCISE

TO: AMERICAN LORAIN
CORPORATION

                    (1)
The undersigned hereby elects to purchase
________ Warrant Shares of the Company pursuant to the terms of the attached
Warrant (only if exercised in full), and tenders herewith payment of the
exercise price in full, together with all applicable transfer taxes, if any.

                    (2)
Payment shall take the form of (check
applicable box):

	
 

	
 

	
 

	
[ ] in lawful money of the United States; or

	
 

	
 

	
 

	
[ ] [if permitted] the cancellation of such number
  of Warrant Shares as is necessary, in accordance with the formula set forth
  in subsection 2(c), to exercise this Warrant with respect to the maximum
  number of Warrant Shares purchasable pursuant to the cashless exercise
  procedure set forth in subsection 2(c).

                    (3)
Please issue a certificate or certificates representing said Warrant Shares in
the name of the undersigned or in such other name as is specified below:

_______________________________

The Warrant Shares shall be delivered to the following
DWAC Account Number or by physical delivery of a certificate to:

_______________________________

_______________________________

_______________________________

                    (4)
Accredited Investor. Unless the undersigned exercises this Warrant by
cashless exercise pursuant to Section 2(c) of the Warrant, the undersigned
hereby represents and warrants that it is an “accredited investor” as defined
in Regulation D promulgated under the Securities Act of 1933, as amended, and
satisfies the criteria set forth in Rule 501(a) therein.

                    (5)
Legend. Unless otherwise permitted under the Securities Purchase
Agreement, dated October __, 2009, by and between the Company and each
purchaser signatory thereto, the certificates representing these securities
will bear a legend restricting transfer under the Securities Act and applicable
state securities laws.

[SIGNATURE OF HOLDER]

Name of Investing Entity:
________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity:
_________________________________________________

Name of Authorized Signatory:
___________________________________________________________________

Title of Authorized Signatory:
____________________________________________________________________

Date:
________________________________________________________________________________________

15

ASSIGNMENT FORM

(To assign the
foregoing warrant, execute
this form and supply required information.
Do not use this form to exercise the warrant.)

                    FOR
VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and
all rights evidenced thereby are hereby assigned to

_______________________________________________ whose
address is

_______________________________________________________________.

_______________________________________________________________

Dated:
______________, _______

	
 

	
 

	
 

	
 

	
Holder’s Signature:

	
_____________________________

	
 

	
Holder’s Address:

	
_____________________________

	
 

	
 

	
_____________________________

Signature Guaranteed:
___________________________________________

NOTE: The signature to this Assignment Form must correspond with the
name as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever, and must be guaranteed by a bank or trust
company. Officers of corporations and those acting in a fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Warrant.

16American Lorain Corporation: Exhibit 4.3 - Prepared by TNT Filings
Inc.

  

Exhibit 4.3

REGISTRATION
RIGHTS AGREEMENT

          This
Registration Rights Agreement (this “Agreement”) is made and entered into as of
October 28, 2009, between American Lorain Corporation, a Delaware corporation
(the “Company”), and each of the several purchasers signatory hereto (each such
purchaser, a “Purchaser” and, collectively, the “Purchasers”).

          This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of
the date hereof, between the Company and each Purchaser (the “Purchase Agreement”).

          The
Company and each Purchaser hereby agrees as follows:

          1.
Definitions.

                    Capitalized
terms used and not otherwise defined herein that are defined in the Purchase
Agreement shall have the meanings given such terms in the Purchase Agreement.
As used in this Agreement, the following terms shall have the following
meanings:

	
 

	
 

	
 
	

           “Advice”
shall have the meaning set forth in Section 6(d).

	
 

	
          “Effectiveness
  Date” means, with respect to the Initial Registration Statement required
  to be filed hereunder, the 60th calendar day following the Closing
  Date (or, in the event of a “full review” by the Commission, the 120th
  calendar day following the Closing Date) and with respect to any additional
  Registration Statements which may be required pursuant to Section 3(c), the
  60th calendar day following the date on which an additional
  Registration Statement is required to be filed hereunder; provided, however,
  that in the event the Company is notified by the Commission that one or more
  of the above Registration Statements will not be reviewed or is no longer
  subject to further review and comments, the Effectiveness Date as to such
  Registration Statement shall be the fifth Trading Day following the date on
  which the Company is so notified if such date precedes the dates otherwise
  required above.

	
 

	
 

	
 

	
          “Effectiveness
  Period” shall have the meaning set forth in Section 2(a).

	
 

	
 

	
 

	
          “Event”
  shall have the meaning set forth in Section 2(b).

	
 

	
 

	
 

	
          “Event
  Date” shall have the meaning set forth in Section 2(b).

	
 

	
 

	
 

	
          “Filing
  Date” means, with respect to the Initial Registration Statement required
  hereunder, the 30th calendar day following the Closing Date and,
  with respect to any additional Registration Statements which may be required
  pursuant to Section 3(c), the earliest practical date following the date on
  which the Company is permitted by SEC Guidance to file such additional
  Registration Statement related to the Registrable Securities.

-1-

	
 

	
 

	
 

	
          “Holder”
  or “Holders” means the holder or holders, as the case may be, from
  time to time of Registrable Securities.

	
 

	
 

	
 

	
          “Indemnified
  Party” shall have the meaning set forth in Section 5(c).

	
 

	
 

	
 

	
          “Indemnifying
  Party” shall have the meaning set forth in Section 5(c).

	
 

	
 

	
 

	
          “Initial
  Registration Statement” means the initial Registration Statement filed
  pursuant to this Agreement.

	
 

	
 

	
 

	
          “Losses”
  shall have the meaning set forth in Section 5(a).

	
 

	
 

	
 

	
          “Plan
  of Distribution” shall have the meaning set forth in Section 2(a). 

	
 

	
 

	
 

	
          “Prospectus”
  means the prospectus included in a Registration Statement (including, without
  limitation, a prospectus that includes any information previously omitted
  from a prospectus filed as part of an effective registration statement in
  reliance upon Rule 430A promulgated by the Commission pursuant to the
  Securities Act), as amended or supplemented by any prospectus supplement,
  with respect to the terms of the offering of any portion of the Registrable
  Securities covered by a Registration Statement, and all other amendments and
  supplements to the Prospectus, including post-effective amendments, and all
  material incorporated by reference or deemed to be incorporated by reference
  in such Prospectus.

	
 

	
 

	
 

	
          “Registrable
  Securities” means, as of any date of determination, (a) all of the
  Shares, (b) all Warrant Shares (assuming on such date the Warrants are
  exercised in full without regard to any exercise limitations therein) and (c)
  any securities issued or then issuable upon any stock split, dividend or
  other distribution, recapitalization or similar event with respect to the
  foregoing; provided, that the Holder thereof has completed and
  delivered to the Company a Selling Stockholder Questionnaire; and, provided,
  further, that (a) any such Registrable Securities shall cease to be
  Registrable Securities (y) upon the sale of such securities pursuant to a
  Registration Statement or Rule 144, (z) upon such securities becoming
  eligible for resale without volume or manner-of-sale restrictions and without
  current public information pursuant to Rule 144, such eligibility confirmed in a
  written opinion by the Company’s counsel and reasonably acceptable to the
  Company’s transfer agent and the affected Holders and (b) no Warrant Shares
  shall be Registrable Securities unless and until such Warrant Shares are
  issued.

	
 

	
 

	
 

	
          “Registration
  Statement” means any registration statement required to be filed
  hereunder pursuant to Section 2(a) and any additional registration statements
  contemplated by Section 3(c), including (in each case) the Prospectus,
  amendments and supplements to any such registration statement or Prospectus,
  including pre- and post-effective amendments, all exhibits thereto, and all
  material incorporated by reference or deemed to be incorporated by reference
  in any such registration statement.

-2-

	
 

	
 

	
 

	
          “Rule
  415” means Rule 415 promulgated by the Commission pursuant to the
  Securities Act, as such Rule may be amended or interpreted from time to time,
  or any similar rule or regulation hereafter adopted by the Commission having
  substantially the same purpose and effect as such Rule.

	
 

	
 

	
 

	
          “Rule
  424” means Rule 424 promulgated by the Commission pursuant to the
  Securities Act, as such Rule may be amended or interpreted from time to time,
  or any similar rule or regulation hereafter adopted by the Commission having
  substantially the same purpose and effect as such Rule.

	
 

	
 

	
 

	
          “Selling
  Stockholder Questionnaire” shall have the meaning set forth in Section
  3(a).

	
 

	
 

	
 

	
          “SEC
  Guidance” means (i) any publicly-available written or oral guidance of
  the Commission staff and (ii) the Securities Act.

	
 

	
 

	
 

	
2. Shelf Registration.

	
 

	
 

	
 

	
          (a)
  On or prior to each Filing Date, the Company shall prepare and file with the
  Commission a Registration Statement covering the resale of all, or such
  maximum portion as permitted by SEC Guidance (provided that, the Company
  shall use diligent efforts to advocate with the Commission for the
  registration of all of the Registrable Securities in accordance with the SEC
  Guidance, including without limitation, the Manual of Publicly Available
  Telephone Interpretations D.29), of the Registrable Securities that are not
  then registered on an effective Registration Statement for an offering to be
  made on a continuous basis pursuant to Rule 415. Each Registration Statement
  shall be on Form S-3 (except if the Company is not then eligible to register
  for resale the Registrable Securities on Form S-3, in which case such
  registration shall be on another appropriate form in accordance herewith) and
  shall contain (unless otherwise directed by at least a majority in interest
  of the Holders) substantially the “Plan of Distribution” attached
  hereto as Annex A. Subject to the terms of this Agreement, the Company
  shall use its best efforts to cause a Registration Statement to be declared
  effective under the Securities Act as promptly as possible after the filing
  thereof, but in any event prior to or on the applicable Effectiveness Date,
  and shall use its best efforts to keep such Registration Statement
  continuously effective under the Securities Act from the date such
  Registration Statement is declared effective under the Securities Act until
  all Registrable Securities covered by such Registration Statement have been
  sold or may be sold without restriction under Rule 144, as determined by the
  counsel to the Company pursuant to a written opinion letter to such effect,
  addressed and acceptable to the Company’s transfer agent and the affected
  Holders (the “Effectiveness Period”). The Company shall telephonically
  request effectiveness of a Registration Statement as of 5:00 p.m. New York
  City time on a Trading Day. The Company shall as promptly as practicable
  under the circumstances notify the Holders via facsimile or by e-mail of the
  effectiveness of a Registration Statement on the same Trading Day that the
  Company telephonically confirms effectiveness with the Commission, which shall be the date requested for effectiveness of such
  Registration Statement. The Company shall, by 9:30 a.m. New York City time on
  the Trading Day after the effective date of such Registration Statement, file
  a final Prospectus with the Commission as required by Rule 424.
  Notwithstanding any other provision of this Agreement, if any SEC Guidance
  sets forth a limitation on the number of Registrable Securities permitted to
  be registered on a particular Registration Statement (and notwithstanding that
  the Company used diligent efforts to advocate with the Commission for the
  registration of all or a greater portion of Registrable Securities), unless
  otherwise directed in writing by a Holder as to its Registrable Securities,
  the number of Registrable Securities to be registered on such Registration
  Statement will first be reduced by Registrable Securities represented by
  Warrant Shares (applied, in the case that some Warrant Shares may be
  registered, to the Holders on a pro rata basis based on the total number of
  unregistered Warrant Shares held by such Holders) and then by Registrable
  Securities represented by Shares (applied to the Holders on a pro rata basis
  based on the total number of unregistered Shares held by such Holders). 

-3-

	
 

	
 

	
 

	
 

	
 

	
          (b)
  If: (i) the Initial Registration Statement is not filed on or prior to its
  Filing Date (if the Company files the Initial Registration Statement without
  affording the Holders the opportunity to review and comment on the same as
  required by Section 3(a) herein, the Company shall be deemed to have not
  satisfied this clause (i)), or (ii) the Company fails to file with the
  Commission a request for acceleration of a Registration Statement in
  accordance with Rule 461 promulgated by the Commission pursuant to the Securities
  Act, within five (5) Trading Days of the date that the Company is notified
  (orally or in writing, whichever is earlier) by the Commission that such
  Registration Statement will not be “reviewed” or will not be subject to
  further review, or (iii) prior to the effective date of a Registration
  Statement, the Company fails to file a pre-effective amendment and otherwise
  respond in writing to comments made by the Commission in respect of such
  Registration Statement within ten (10) Trading Days after the receipt of
  comments by or notice from the Commission that such amendment is required in
  order for such Registration Statement to be declared effective, or (iv) a
  Registration Statement registering for resale all, or such maximum portion as
  permitted by SEC Guidance, of the Registrable Securities is not declared
  effective by the Commission by the Effectiveness Date of the Initial
  Registration Statement, or (v) after the effective date of a Registration
  Statement, such Registration Statement ceases for any reason to remain
  continuously effective as to all Registrable Securities included in such
  Registration Statement, or the Holders are otherwise not permitted to utilize
  the Prospectus therein to resell such Registrable Securities, for more than
  thirty (30) consecutive calendar days or more than an aggregate of forty five
  (45) calendar days (which need not be consecutive calendar days) during any
  12-month period, (any such failure or breach being referred to as an “Event”, and for purposes of
  clauses (i) and (iv), the date on which such Event occurs, and for purpose of
  clause (ii) the date on which such five (5) Trading Day period is exceeded,
  and for purpose of clause (iii) the date which such ten (10) Trading Day
  period is exceeded, and for purpose of clause (v) the date on which such
  thirty (30) or forty five (45) calendar day period, as applicable, is exceeded being referred to
  as “Event Date”), then,
  in addition to any other rights the Holders may have hereunder or under
  applicable law, on each such Event Date and on each monthly anniversary of
  each such Event Date (if the applicable Event shall not have been cured by
  such date) until the applicable Event is cured, the Company shall pay to each
  Holder an amount in cash, as partial liquidated damages and not as a penalty,
  equal to 1% of the aggregate purchase price paid by such Holder pursuant to
  the Purchase Agreement for any unregistered Registrable Securities then held
  by such Holder. The parties agree that (1) the Company shall not be liable
  for liquidated damages under this Agreement with respect to any unexercised
  Warrants or Warrant Shares or with respect to any Registrable Securities that
  are not registered as a result of limitations set by SEC Guidance and
  (2) the maximum aggregate liquidated damages payable to a Holder under
  this Agreement shall be 4% of the aggregate Subscription Amount paid by such
  Holder pursuant to the Purchase Agreement. If the Company fails to pay any
  partial liquidated damages pursuant to this Section in full within seven (7)
  Trading Days after the date payable, the Company will pay interest thereon at
  a rate of 18% per annum (or such lesser maximum amount that is permitted to
  be paid by applicable law) to the Holder, accruing daily from the date such
  partial liquidated damages are due until such amounts, plus all such interest
  thereon, are paid in full. The partial liquidated damages pursuant to the
  terms hereof shall apply on a daily pro rata basis for any portion of a month
  prior to the cure of an Event.

-4-

	
 

	
 

	
 

	
3. Registration Procedures.

                    In
connection with the Company’s registration obligations hereunder, the Company
shall:

	
 

	
 

	
 

	
          (a)
  Not less than five (5) Trading Days prior to the filing of each Registration
  Statement and not less than one (1) Trading Day prior to the filing of any
  related Prospectus or any amendment or supplement thereto (including any
  document that would be incorporated or deemed to be incorporated therein by
  reference), the Company shall (i) furnish to each Holder copies of all such
  documents proposed to be filed, which documents (other than those
  incorporated or deemed to be incorporated by reference) will be subject to
  the review of such Holders, and (ii) cause its officers and directors,
  counsel and independent registered public accountants to respond to such
  inquiries as shall be necessary, in the reasonable opinion of respective
  counsel to each Holder, to conduct a reasonable investigation within the
  meaning of the Securities Act. The Company shall not file a Registration
  Statement or any such Prospectus or any amendments or supplements thereto to
  which the Holders of a majority of the Registrable Securities shall
  reasonably object in good faith, provided that, the Company is notified of
  such objection in writing no later than five (5) Trading Days after the
  Holders have been so furnished copies of a Registration Statement or one (1)
  Trading Day after the Holders have been so furnished copies of any related
  Prospectus or amendments or supplements thereto. Each Holder agrees to
  furnish to the Company a completed questionnaire in the form attached to this
  Agreement as Annex B (a “Selling Stockholder
  Questionnaire”) on a date that is not less than two (2) Trading Days
  prior to the Filing Date or by the end of the fourth (4th) Trading
  Day following the date on which such Holder receives draft materials in
  accordance with this Section. 

-5-

	
 

	
 

	
 

	
 

	
 

	
          (b)
  (i) Prepare and file with the Commission such amendments, including
  post-effective amendments, to a Registration Statement and the Prospectus
  used in connection therewith as may be necessary to keep a Registration
  Statement continuously effective as to the applicable Registrable Securities
  for the Effectiveness Period and prepare and file with the Commission such
  additional Registration Statements in order to register for resale under the
  Securities Act all of the Registrable Securities, (ii) cause the related
  Prospectus to be amended or supplemented by any required Prospectus
  supplement (subject to the terms of this Agreement), and, as so supplemented
  or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as
  reasonably possible to any comments received from the Commission with respect
  to a Registration Statement or any amendment thereto and provide as promptly
  as reasonably possible to the Holders true and complete copies of all
  correspondence from and to the Commission relating to a Registration
  Statement (provided that, the Company may excise any information contained
  therein which would constitute material non-public information as to any
  Holder which has not executed a confidentiality agreement with respect
  thereto with the Company), and (iv) comply in all material respects with the
  applicable provisions of the Securities Act and the Exchange Act with respect
  to the disposition of all Registrable Securities covered by a Registration
  Statement during the applicable period in accordance (subject to the terms of
  this Agreement) with the intended methods of disposition by the Holders
  thereof set forth in such Registration Statement as so amended or in such
  Prospectus as so supplemented.

	
 

	
 

	
 

	
          (c)
  If during the Effectiveness Period, the number of Registrable Securities at
  any time exceeds 100% of the number of shares of Common Stock then registered
  in a Registration Statement, then the Company shall file as soon as
  reasonably practicable, but in any case prior to the applicable Filing Date,
  an additional Registration Statement covering the resale by the Holders of
  not less than the number of such Registrable Securities. 

	
 

	
 

	
 

	
          (d)
  Notify the Holders of Registrable Securities to be sold (which notice shall,
  pursuant to clauses (iii) through (vi) hereof, be accompanied by an
  instruction to suspend the use of the Prospectus until the requisite changes
  have been made) as promptly as reasonably possible (and, in the case of
  (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if
  requested by any such Person) confirm such notice in writing no later than
  one (1) Trading Day following the day (i)(A) when a Prospectus or any
  Prospectus supplement or post-effective amendment to a Registration Statement
  is proposed to be filed, (B) when the Commission notifies the Company whether
  there will be a “review” of such Registration Statement and whenever the
  Commission comments in writing on such Registration Statement, and (C) with
  respect to a Registration Statement or any post-effective amendment, when the same has
  become effective, (ii) of any request by the Commission or any other federal
  or state governmental authority for amendments or supplements to a
  Registration Statement or Prospectus or for additional information, (iii) of
  the issuance by the Commission or any other federal or state governmental
  authority of any stop order suspending the effectiveness of a Registration
  Statement covering any or all of the Registrable Securities or the initiation
  of any Proceedings for that purpose; (iv) of the receipt by the Company of
  any notification with respect to the suspension of the qualification or
  exemption from qualification of any of the Registrable Securities for sale in
  any jurisdiction, or the initiation or threatening of any Proceeding for such
  purpose, (v) of the occurrence of any event or passage of time that makes the
  financial statements included in a Registration Statement ineligible for
  inclusion therein or any statement made in a Registration Statement or
  Prospectus or any document incorporated or deemed to be incorporated therein
  by reference untrue in any material respect or that requires any revisions to
  a Registration Statement, Prospectus or other documents so that, in the case
  of a Registration Statement or the Prospectus, as the case may be, it will
  not contain any untrue statement of a material fact or omit to state any
  material fact required to be stated therein or necessary to make the
  statements therein, in light of the circumstances under which they were made,
  not misleading and (vi) of the occurrence or existence of any pending
  corporate development with respect to the Company that the Company believes
  may be material and that, in the determination of the Company, makes it not
  in the best interest of the Company to allow continued availability of a
  Registration Statement or Prospectus, provided that, any notice delivered by
  the Company to the Holders notifying the Holders of such a suspension of the
  Registration Statement shall not disclose the details or content of such
  material event or occurrence, but shall only disclose that an event or
  occurrence exists which has caused the Company to determine to suspend the
  availability of the Registration Statement, the existence of such an event or
  occurrence shall remain confidential to each Holder until such information
  otherwise becomes public, unless disclosure by a Holder is required by law; provided,
  further, that notwithstanding each Holder’s agreement to keep such
  information confidential, each such Holder makes no acknowledgement that any
  such information is material, non-public information.

-6-

	
 

	
 

	
 

	
 

	
 

	
          (e)
  Use its best efforts to avoid the issuance of, or, if issued, obtain the
  withdrawal of (i) any order stopping or suspending the effectiveness of a
  Registration Statement, or (ii) any suspension of the qualification (or
  exemption from qualification) of any of the Registrable Securities for sale
  in any jurisdiction, at the earliest practicable moment.

	
 

	
 

	
 

	
          (f)
  Furnish to each Holder, without charge, at least one conformed copy of each
  such Registration Statement and each amendment thereto, including financial
  statements and schedules, all documents incorporated or deemed to be
  incorporated therein by reference to the extent requested by such Person, and
  all exhibits to the extent requested by such Person (including those
  previously furnished or incorporated by reference) promptly after the filing
  of such documents with the Commission; provided, that any
  such item which is available on the EDGAR system (or successor thereto) need
  not be furnished in physical form.

-7-

	
 

	
 

	
 

	
 

	
 

	
          (g)
  Subject to the terms of this Agreement, the Company hereby consents to the
  use of such Prospectus and each amendment or supplement thereto by each of
  the selling Holders in connection with the offering and sale of the
  Registrable Securities covered by such Prospectus and any amendment or
  supplement thereto, except after the giving of any notice pursuant to Section
  3(d).

	
 

	
 

	
 

	
          (h)
  RESERVED.

	
 

	
          (i)
  Prior to any resale of Registrable Securities by a Holder, use its
  commercially reasonable efforts to register or qualify or cooperate with the
  selling Holders in connection with the registration or qualification (or
  exemption from the Registration or qualification) of such Registrable
  Securities for the resale by the Holder under the securities or Blue Sky laws
  of such jurisdictions within the United States as any Holder reasonably
  requests in writing, to keep each registration or qualification (or exemption
  therefrom) effective during the Effectiveness Period and to do any and all
  other acts or things reasonably necessary to enable the disposition in such
  jurisdictions of the Registrable Securities covered by each Registration
  Statement; provided, that, the Company shall not be required to qualify
  generally to do business in any jurisdiction where it is not then so
  qualified, subject the Company to any material tax in any such jurisdiction
  where it is not then so subject or file a general consent to service of
  process in any such jurisdiction.

	
 

	
 

	
 

	
          (j)
  If requested by a Holder, cooperate with such Holder to facilitate the timely
  preparation and delivery of certificates representing Registrable Securities
  to be delivered to a transferee pursuant to a Registration Statement, which
  certificates shall be free, to the extent permitted by the Purchase
  Agreement, of all restrictive legends, and to enable such Registrable
  Securities to be in such denominations and registered in such names as any
  such Holder may request.

	
 

	
 

	
 

	
          (k)
  Upon the occurrence of any event contemplated by Section 3(d), as promptly as
  reasonably possible under the circumstances, taking into account the
  Company’s good faith assessment of any adverse consequences to the Company
  and its stockholders of the premature disclosure of such event, prepare a
  supplement or amendment, including a post-effective amendment, to a
  Registration Statement or a supplement to the related Prospectus or any
  document incorporated or deemed to be incorporated therein by reference, and
  file any other required document so that, as thereafter delivered, neither a
  Registration Statement nor such Prospectus will contain an untrue statement
  of a material fact or omit to state a material fact required to be stated
  therein or necessary to make the statements therein, in light of the
  circumstances under which they were made, not misleading. If the Company
  notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend
  the use of any Prospectus until the requisite changes to such Prospectus have
  been made, then the Holders shall suspend use of such Prospectus. The Company
  will use its best efforts to ensure that the use of the Prospectus may be
  resumed as promptly as is practicable. The Company shall be entitled to
  exercise its right under this Section 3(k) to suspend the availability of a
  Registration Statement and Prospectus for a period not to exceed 60 calendar
  days (which need not be consecutive days) in any 12-month period.

-8-

	
 

	
 

	
 

	
 

	
 

	
          (l)
  Comply with all applicable rules and regulations of the Commission.

	
 

	
 

	
 

	
          (m)
  The Company may require each selling Holder to furnish to the Company a
  certified statement as to the number of shares of Common Stock beneficially
  owned by such Holder and, if required by the Commission, the natural persons
  thereof that have voting and dispositive control over the shares. If, as the
  result of any Holder’s failure to furnish such information, the Company would
  be in violation of this Agreement for failure to comply with any of its
  obligations hereunder, the Company shall remove such Holder from the
  Registration Statement and file such Registration Statement, and not be
  subject to any liquidated damages by any Holder.

          4.
Registration Expenses. All fees and expenses incident to the performance
of or compliance with, this Agreement by the Company shall be borne by the
Company whether or not any Registrable Securities are sold pursuant to a
Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing
fees (including, without limitation, fees and expenses of the Company’s counsel
and independent registered public accountants) (A) with respect to filings made
with the Commission, (B) with respect to filings required to be made with any
Trading Market on which the Common Stock is then listed or quoted for trading
and (C) in compliance with applicable state securities or Blue Sky laws
reasonably agreed to by the Company in writing (including, without limitation,
fees and disbursements of counsel for the Company in connection with Blue Sky
qualifications or exemptions of the Registrable Securities), (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses
of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement. In addition,
the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of
any annual audit and the fees and expenses incurred in connection with the
listing or quotation of the Registrable Securities on any securities exchange
as required hereunder. In no event shall the Company be responsible for any
broker or similar commissions of any Holder or, except to the extent provided
for in the Transaction Documents, any legal fees or other costs of the Holders.

-9-

5. Indemnification.

          (a)
Indemnification by the Company.
The Company shall, notwith­standing any termination of this Agreement,
indemnify and hold harmless each Holder, the officers, directors, members,
partners, agents, brokers (including brokers who offer and sell Registrable
Securities as principal as a result of a pledge or any failure to perform under
a margin call of Common Stock), investment advisors and 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 each of
them, each Person who controls any such Holder (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors,
members, stockholders, partners, agents and 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 each such
controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”),
as incurred, arising out of or relating to (1) any untrue or alleged untrue
statement of a material fact contained in a Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading or (2) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or any state securities law, or any rule or
regulation thereunder, in connection with the performance of its obligations
under this Agreement, except to the extent, but only to the extent, that (i)
such untrue statements or omissions are based solely upon information regarding
such Holder furnished in writing to the Company by such Holder expressly for
use therein, or to the extent that such information relates to such Holder or
such Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
a Registration Statement, such Prospectus or in any amendment or supplement
thereto (it being understood that the Holder has approved Annex A hereto for
this purpose) or (ii) in the case of an occurrence of an event of the type
specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated,
defective or otherwise unavailable Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated, defective or otherwise
unavailable for use by such Holder and prior to the receipt by such Holder of
the Advice contemplated in Section 6(d). The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding arising from
or in connection with the transactions contemplated by this Agreement of which
the Company is aware.

          (b)
Indemnification by Holders.
Each Holder shall, severally and not jointly, indemnify and hold harmless the
Company, its directors, officers, agents and employees, each Person who
controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act), and the directors, officers, agents or employees of such
controlling Persons, to the fullest extent permitted by applicable law, from
and against all Losses, as incurred, to the extent arising out of or based
solely upon: (x) such Holder’s failure to comply with the prospectus delivery
requirements of the Securities Act or (y) any untrue or alleged untrue
statement of a material fact contained in any Registration Statement, any
Prospectus, or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the
statements therein not misleading (i) to the extent, but only to the extent,
that such untrue statement or omission is contained in any information so
furnished in writing by such Holder to the Company specifically for inclusion
in such Registration Statement or such Prospectus, (ii) to the extent that such
information relates to such Holder’s proposed method of distribution of
Registrable Securities, provided that such method of distribution was reviewed
and expressly approved in writing by such Holder expressly for use in a
Registration Statement (it being understood that the Holder has approved Annex
A hereto for this purpose), such Prospectus or in any amendment or supplement
thereto or (iii) in the case of an occurrence of an event of the type specified
in Section 3(d)(iii)-(vi), the use by such Holder of an outdated, defective or
otherwise unavailable Prospectus after the Company has notified such Holder in
writing that the Prospectus is outdated, defective or otherwise unavailable for
use by such Holder and prior to the receipt by such Holder of the Advice
contemplated in Section 6(d). In no event shall the liability of any selling
Holder under this Section 5(b) be greater in amount than the dollar amount of
the net proceeds received by such Holder upon the sale of the Registrable
Securities giving rise to such indemnification obligation.

-10-

          (c)
Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against
any Person entitled to indemnity hereunder (an “Indemnified Party”),
such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”) in writing, and the Indemnifying Party
shall have the right to assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with the defense thereof; provided,
that, the failure of any Indemnified Party to give such notice shall not
relieve the Indemnifying Party of its obligations or liabilities pursuant to
this Agreement, except (and only) to the extent that it shall be finally determined
by a court of competent jurisdiction (which determination is not subject to
appeal or further review) that such failure shall have materially prejudiced
the Indemnifying Party.

                    An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
expenses, (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such
Proceeding, or (3) the named parties to any such Proceeding (including any
impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and counsel to the Indemnified Party shall reasonably believe that a
material conflict of interest is likely to exist if the same counsel were to
represent such Indemnified Party and the Indemnifying Party (in which case, if
such Indemnified Party notifies the Indemnifying Party in writing that it
elects to employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense thereof and
the reasonable fees and expenses of no more than one separate counsel shall be
at the expense of the Indemnifying Party). The Indemnifying Party shall not be
liable for any settlement of any such Proceeding effected without its written
consent, which consent shall not be unreasonably withheld or delayed. No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding.

-11-

                    Subject
to the terms of this Agreement, all reasonable fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such
Proceeding in a manner not inconsistent with this Section) shall be paid to the
Indemnified Party, as incurred, within ten Trading Days of written notice
thereof to the Indemnifying Party; provided, that, the Indemnified Party shall
promptly reimburse the Indemnifying Party for that portion of such fees and
expenses applicable to such actions for which such Indemnified Party is
judicially determined not to be entitled to indemnification hereunder.

          (d)
Contribution. If the
indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
Party or insufficient to hold an Indemnified Party harmless for any Losses,
then each Indemnifying Party shall contribute to the amount paid or payable by
such Indemnified Party, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well
as any other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a
result of any Losses shall be deemed to include, subject to the limitations set
forth in this Agreement, any reasonable attorneys’ or other reasonable fees or
expenses incurred by such party in connection with any Proceeding to the extent
such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such
party in accordance with its terms.

-12-

          The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be
required to contribute pursuant to this Section 5(d), in the aggregate, any
amount in excess of the amount by which the net proceeds actually received by
such Holder from the sale of the Registrable Securities subject to the
Proceeding exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.

          The
indemnity and contribution agreements contained in this Section are in addition
to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

6. Miscellaneous.

          (a)
Remedies. In the event of a breach by the Company or by a Holder of any
of their respective obligations under this Agreement, each Holder or the Company,
as the case may be, in addition to being entitled to exercise all rights
granted by law and under this Agreement, including recovery of damages, shall
be entitled to specific performance of its rights under this Agreement. Each of
the Company and each Holder agrees that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach by it of
any of the provisions of this Agreement and hereby further agrees that, in the
event of any action for specific performance in respect of such breach, it
shall not assert or shall waive the defense that a remedy at law would be
adequate.

          (b)
No Piggyback on Registrations;
Prohibition on Filing Other Registration Statements. Neither the
Company nor any of its security holders (other than the Holders in such
capacity pursuant hereto) may include securities of the Company in any
Registration Statements other than the Registrable Securities. The Company
shall not file any other registration statements until all Registrable
Securities are registered pursuant to a Registration Statement that is declared
effective by the Commission, provided that this Section 6(b) shall not prohibit
the Company from filing amendments to registration statements filed prior to
the date of this Agreement provided that no such amendment shall increase the
number of securities registered by such registration statement.

          (c)
Compliance. Each Holder
covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to a Registration Statement.

-13-

          (d)
Discontinued Disposition.
By its acquisition of Registrable Securities, each Holder agrees that, upon
receipt of a notice from the Company of the occurrence of any event of the kind
described in Section 3(d)(iii) through (vi), such Holder will forthwith
discontinue disposition of such Registrable Securities under a Registration
Statement until it is advised in writing (the “Advice”) by the Company
that the use of the applicable Prospectus (as it may have been supplemented or
amended) may be resumed. The Company will use its best efforts to ensure that
the use of the Prospectus may be resumed as promptly as is practicable. The
Company agrees and acknowledges that any periods during which the Holder is
required to discontinue the disposition of the Registrable Securities hereunder
shall be subject to the provisions of Section 2(b).

          (e)
Piggy-Back Registrations.
If, at any time during the Effectiveness Period, there is not an effective
Registration Statement covering all of the Registrable Securities and the
Company shall determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others
under the Securities Act of any of its equity securities, other than on Form
S-4 or Form S-8 (each as promulgated under the Securities Act) or their then
equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business or equity securities issuable in
connection with the Company’s stock option or other employee benefit plans,
then the Company shall deliver to each Holder a written notice of such determination
and, if within fifteen (15) days after the date of the delivery of such notice,
any such Holder shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such
Holder requests to be registered; provided, however, that the
Company shall not be required to register any Registrable Securities pursuant
to this Section 6(e) that are eligible for resale pursuant to Rule 144
promulgated by the Commission pursuant to the Securities Act or that are the
subject of a then effective Registration Statement.

          (f)
Amendments and Waivers.
The provisions of this Agreement, including the provisions of this sentence,
may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and the Holders of 67% or more of the
then outstanding Registrable Securities (including, for this purpose any
Registrable Securities issuable upon exercise or conversion of any Security).
If a Registration Statement does not register all of the Registrable Securities
pursuant to a waiver or amendment done in compliance with the previous
sentence, then the number of Registrable Securities to be registered for each
Holder shall be reduced pro rata among all Holders and each Holder shall have
the right to designate which of its Registrable Securities shall be omitted
from such Registration Statement. Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of a Holder or some Holders and that does not
directly or indirectly affect the rights of other Holders may be given by such
Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that
the provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the first sentence of this Section
6(f). 

-14-

          (g)
Notices. Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be delivered as set forth in the Purchase Agreement. 

          (h)
Successors and Assigns.
This Agreement shall inure to the benefit of and be binding upon the successors
and permitted assigns of each of the parties and shall inure to the benefit of
each Holder. The Company may not assign (except by merger) its rights or
obligations hereunder without the prior written consent of all of the Holders
of the then outstanding Registrable Securities. Each Holder may assign their
respective rights hereunder in the manner and to the Persons as permitted under
Section 5.7 of the Purchase Agreement.

          (i)
No Inconsistent Agreements.
Neither the Company nor any of its Subsidiaries has entered, as of the date
hereof, nor shall the Company or any of its Subsidiaries, on or after the date
of this Agreement, enter into any agreement with respect to its securities, that
would have the effect of impairing the rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions hereof. Except as set
forth on Schedule 6(i), neither the Company nor any of its Subsidiaries
has previously entered into any agreement granting any registration rights with
respect to any of its securities to any Person that have not been satisfied in
full.

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

          (k)
Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined in
accordance with the provisions of the Purchase Agreement.

          (l)
Cumulative Remedies. The
remedies provided herein are cumulative and not exclusive of any other remedies
provided by law.

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

-15-

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

          (o)
Independent Nature of Holders’
Obligations and Rights. The obligations of each Holder hereunder are
several and not joint with the obligations of any other Holder hereunder, and
no Holder shall be responsible in any way for the performance of the
obligations of any other Holder hereunder. Nothing contained herein or in any
other agreement or document delivered at any closing, and no action taken by
any Holder pursuant hereto or thereto, shall be deemed to constitute the
Holders as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Holders are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement. Each Holder shall be entitled to protect and enforce its rights,
including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Holder to be joined as an additional party
in any proceeding for such purpose.

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

********************

A. (Signature Pages Follow)

-16-

          IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
as of the date first written above.

  

	
 	
 

	
 

	
 	
AMERICAN LORAIN CORPORATION
	
 	
 	
 
	
 	
By:

	
/s/ Si Chen

	
 	
 

	
Name: Si Chen

	
 	
 

	
Title: Chairman, Chief Executive Officer 

	
 	
 

	
and President

  

[SIGNATURE PAGE OF
HOLDERS FOLLOWS]

 

-17-

[SIGNATURE PAGE OF
HOLDERS TO ALN RRA]

	
 

	
Name of Holder: __________________________

	
 

	
Signature
  of Authorized Signatory of Holder:
  __________________________

	
 

	
Name of Authorized Signatory:
  _________________________

	
 

	
Title of Authorized Signatory:
  __________________________

[SIGNATURE PAGES
CONTINUE]

-18-

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