Document:

eoss_ex101.htm

EXHIBIT 10.1
 
專利獨家授權暨獨家經銷合約
 
超越光能科技有限公司(以下稱「甲方」)
 
立合約書人: 
 
EOS INC. (以下稱「乙方」)
 
EXCLUSIVE PATENT LICENSE AND DISTRIBUTION AGREEMENT
 
THIS EXCLUSIVE PATENT LICENSE AND DISTRIBUTION AGREEMENT ("Agreement") is made and entered into in duplicate this 25th day of November 2019 (the “Effective Date”), by and among EOS Inc., a Nevada corporation (the "Distributor"), and Ultra Velocity Technology LTD., a R.O.C. corporation (the "Company"). 
 
緣甲方同意授權乙方關於甲方所有「中華民國專利證書新型號 M566970 號」之專利 技術(下稱系爭專利)及授權乙方經銷系爭專利技術所製成之「電子調校器」產品(以下 稱「本產品」),乙方同意接受甲方授權,經雙方協議,雙方同意簽訂此「專利獨家授 權暨獨家經銷合約」(以下稱「本合約」)約定條款如下,以資信守: 
 
RECITALS
 
A. The Distributor is a corporation duly organized, validly existing and in good standing pursuant to the laws of the State of Nevada, with the corporate power to own property and carry on its business as that business in now being conducted. 
 
B. The Company is a corporation duly organized, validly existing and in good standing pursuant to the laws of R.O.C., with the corporate power to own property and to carry on its business as that business is now being conducted. 
 
C. The Company is engaged in the business of manufacturing and selling the Electronic Calibrator (the “Product”). 
 
D. The Company desires to grant to the Distributor, and the Distributor desires to acquire from the Company, the exclusive patent license under the patent: “ELECTRICAL NOISE SUPPRESSING DEVICE” (the “Patent”) which is R.O.C. Patent M566970, to use, sell, and offer for sale the Product within the Patent territory.
 
	 
	 
	
 
	 

 
E. The Company desires to grant to the Distributor, and the Distributor desires to acquire from the Company, the exclusive right to develop a demand for, market, promote, sell and distribute the Products in the Territory (hereinafter defined), on the terms and subject to the conditions specified in this Agreement. 
 
NOW, THEREFORE, BASED UPON THE FOREGOING RECITALS, WHICH, BY THIS REFERENCE, ARE MADE A PART OF THIS AGREEMENT PROPER, AND IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND UNDERTAKINGS HEREIN CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, WITH THE INTENT TO BE OBLIGATED LEGALLY, THE PARTIES HERETO AGREE WITH EACH OTHER AS FOLLOWS: 
 
一、合約期間 
 
(一)自西元 2019 年 11 月 25 日起至 2029 年 11 月 24 日止,合計十年。 (二)甲、乙雙方應於期間屆滿前 2 個月,期前討論續約相關事宜,若甲、乙雙方未 
 
另為反對之意思表示,則依據本合約之內容自動續約。
 
ARTICLE I
 
TERM
 
The initial term of this Agreement shall continue for a period of 10 years from the Effective Date, unless terminated earlier as specified hereinafter. This Agreement may be automatically renewed unless the Company and the Distributor give notice to each other at least 2 months prior to the expiration of any term of this Agreement of the Company’s intention not to renew this Agreement. The “Term” as used in this Agreement shall mean the entire period of appointment by the Company to the Distributor of those rights specified by the provisions of this Agreement. 
 
二、合約標的
 
(一)甲方同意於合約期間,獨家授權系爭專利及本產品予乙方。
 
(二)乙方同意接受甲方之授權及指定,於經銷區域內擔任本產品之經銷商,負責一 
 
切行銷事宜。 
 
(三)本產品之節能功效將用於申請碳權。此碳權收益將納入乙方公司收益,並由乙 
 
方發行 EOS 於美國上市之新股予甲方,所增發之股數另行訂定。 
 
(四)申請碳權部分依其產品股票每股盈餘由甲乙雙方各得百分之五十之股權轉換。
 
(五)乙方應發行 300 萬股 EOS 於美國上市之新股予甲方。 
 
	 
	 
	
 
	 

 
ARTICLE II
 
EXCLUSIVE PATENT LICENSE AND DISTRIBUTORSHIP
 
Section 2.1 Appointment. 
 
The Company grants to the Distributor the exclusive right, to promote, market, distribute, and sell the Products and hold exclusive patent license globally. 
 
Section 2.2 Acceptance. The Distributor accepts the grant of authority from Company to develop demand for, promote, market, sell and distribute the Products within the Territory. 
 
Section 2.3 Shares and revenue distribution from Carbon Rights
 
	 
	a.	Based on the result of carbon emission reduction from the Product, the Company will apply for Caron Rights for Carbon Emission trading. The revenue generated from the Carbon Rights will go to the Distributor and the Distributor shall issue new shares to the Company. Number of new shares to be issued to the Company will be determined at a later date.
	 
	b.	The revenue generated from the Carbon Rights will be converted into shares based on the market price, and those shares will be a 50/50 split between the Company and the Distributor.
	 
	c.	Distributor will issue 3 million new shares in EOS INC. stocks to the Company.

 
三、經銷區域 
 
(一)獨家授權經銷區域:全球。 
 
(二)甲方同意僅對乙方為授權經銷本產品,甲方不得授權第三人經銷本產品。
 
(三)甲方提供其客戶名單予乙方,並將全數客戶轉由乙方獨家銷售,故甲方可取得 
 
EOS 於美國上市之 500 萬股。 
 
	 
	 
	
 
	 

 
ARTICLE III
TERRITORY AND CLIENT LISTS
 
Section 3.1 Exclusivity 
 
	 
	a.	The Company’s appointment of Distributor in Section 2 of this Agreement is an exclusive appointment to distribute the Products globally (the Territory).
	 
	b.	During the term of this agreement, the Company shall not independently advertise, solicit and make sales of the Products, or appoint additional distributors for the Product in the Territory.

 
Section 3.2 Shares exchange for client lists 
 
The Company will provide its client lists to the Distributor and direct all its clients to the Distributor. The Distributor will transfer 5 million shares to the Company.
 
四、甲方義務 
 
(一)以優良品質及有競爭力的價格策略支持乙方推廣新開發的市場。 
 
(二)在乙方經銷期間,甲方應將本產品交由乙方銷售,原則上不做其他直接經銷之 
 
(三)就本產品有任何瑕疵或需要維護之處,甲方應負責更換新品。
 
(五)當乙方每股股價達 20 美金時,甲方應將「家庭節電產品」之銷售及專利技術 
 
均獨家授權予乙方,並另訂合約。
 
	 
	 
	
 
	 

 
ARTICLE IV
 
COMPANY'S COVENANTS, REPRESENTATIONS, AND WARRANTIES 
 
Section 4.1 Pricing The Company shall make best effort to offer most competitive price range to support the Distributor in promoting the products
Section 4.2 Exclusivity During the term of this agreement, the Company will cease from selling the Products either on his own account or through agents or other distributors. 
Section 4.3 Return Material Authorization In the case of damage or defect attributable to the Company, the Company should provide exchange upon request for RMA from the Distributor
Section 4.4 The Company Assistance in Training. The Company shall, as reasonably requested by the Distributor, (1) render advice to the Distributor in connection with the Distributor’s marketing, promotion, sale, and distribution of the Products, (2) familiarize the Distributor with the Products, and (3) render assistance to the Distributor in training the Distributor’s employees and representatives, if any, in connection with the Products. The Company shall provide support and assistance by email or other electronic means as determined by the Company free of charge to the Distributor. 
Section 4.5 Additional patent license and product distribution When EOS INC. stock price reaches USD$20, the Company shall grant the exclusive distribution and license patent of its “Electronic Energy Conservator” product to the Distributor. In this case, a separate agreement will set in place. 
 
五、乙方義務 
 
(二)張瑞彬、陳威騰因介紹甲乙雙方訂立本合約,乙方應 10 萬股新股予張 
 
瑞彬、陳威騰作為傭金報酬。 
 
(三)隨時向甲方反應客戶使用狀況及市場消息。
(五)提出營運計劃。 
 
(六)乙方如有發現其他第三人有侵害系爭專利之情形時,應立即以書面或電子通知 
 
甲方,並同意配合甲方進行一切必要措施以保護上列專利之權利。 
 
(七)乙方於那斯達克交易所募資之其中 5000 萬臺幣將挹注甲方用以擴充本產品之 
 
生產線。 
 
	 
	 
	
 
	 

 
ARTICLE V
 
DISTRIBUTOR'S COVENANTS, REPRESENTATIONS, AND WARRANTIES 
 
The Distributor covenants, represents and warrants to the Company the following, which are deemed to be material covenants, representations and warranties by the Distributor, and are made to induce the Company to enter into and execute this Agreement. 
 
Section 5.1 Ability to Perform and Provide Feedbacks. 
 
	 
	a.	The Distributor shall provide client feedbacks regarding the Product to the Company.
	 
	b.	The Distributor shall perform to the best of its ability to market, promotion, sell, and distribute the Product and Brand in the Territory.
	 
	c.	The Distributor shall provide Business Plan to the Company.
	 
	d.	In any case when the Distributor discovers any other individual or party makes, uses, or sells the Product of the Company without the permission of the Company and the Distributor, the Distributor shall notify the Company promptly, in writing, and work with the Company to take all necessary measures to protect the Company’s intellectual property.

 
Section 5.2 Other agreed Items of Cooperation.
 
	 
	a.	The two business liaisons, Rui-Bin Chang and Wei-Teng Chen will each receive 100,000 shares of newly issued EOS INC. stocks as compensation.
	 
	b.	After the Distributor completes its up-listing on Nasdaq, NTD$50 million of funding will go towards the Company to help expand its manufacturing production lines.

 
六、雙方之關係 
 
任一方均不得解釋為:
(一)在法律上成為另一方代理人或代表人。
(二)被授權之一方可代表另一方簽約。
(三)得做拘束另一方之同意或承諾。
 
	 
	 
	
 
	 

 
ARTICLE VI
 
RELATIONSHIP
 
Both the company and the Distributor shall not have, nor hold itself out as having, any right, power, or authority to create any contract or obligation, either expressed or implied to, on behalf of, in the name of, or obligating the other party, or to pledge the other party’s credit, or extend credit in the name of the other party unless the other party shall consent thereto in advance in writing. 
 
七、訂貨及交貨方式 
 
依據雙方訂單內容。 
 
ARTICLE VII
 
ORDERS AND DELIVERIES
 
Logistic terms will be based on the terms stated on the order form. 
 
八、付款方式 
 
依據雙方訂單內容。 
ARTICLE VIII
 
PAYMENT TERMS
Payment terms will be based on the terms stated on the order form
 
九、保密責任 
 
(一)任一方因本合約之執行因而接觸、獲悉或取得他方之營業秘密時,不得洩漏予 第三人,包括但不限於本合約書及相關附件內容。 
 
(二)營業秘密收受方之保密義務不及於下列各項:
 
	 
	1.
	收受方自第三人處合法獲知該資料,且無任何使用與揭露之限制; 

	 
	2.
	在收到揭露方機密資料前收受方已知該資料,且有書面紀錄證明; 

	 
	3.
	收受方未使用揭露方機密資料之情形下所獨立開發完成者; 

	 
	4.
	收受時已成為眾所周知者,或非可歸責於收受方之事由而自收受後成 

	 
	 
	為眾所周知者; 

	 
	5.
	從揭露方以外的其他公共管道合法獲得之資料; 

	 
	6.
	因法院、政府機關或立法授權之機構之命令或規定,或係基於法律的 

 
	 
	 
	
 
	 

 
ARTICLE IX
 
CONFIDENTIAL OBLIGATION AND ITS DURATION
 
	 
	a.	All confidential and/or proprietary information relating to this Agreement and/or the Product ("Confidential Information") furnished by one Party (the "Disclosing Party") to the other Party (the "Receiving Party") during the term of this Agreement shall be kept confidential by the Receiving Party, except as expressly authorized by this Agreement, and shall not be disclosed to a third party, nor shall the Receiving Party use such Confidential Information for any purpose other than the purposes specifically authorized under this Agreement, during the term of this Agreement. The Receiving Party may disclose the same to its officers, agents, consultants and employees on a need-to-know basis, provided that such officers, agents, consultants and employees have signed appropriate confidentiality agreements.
	 
	b.	Confidential Information shall exclude information that: (i) is rightfully received by the Receiving Party from a third party without a duty of confidentiality; (ii) was in the Receiving Party’s possession before receipt from the Disclosing Party and obtained from a source other than the Disclosing Party and other than through the prior relationship of the Disclosing Party and the Receiving Party before the Original Contract Date; (iii) is independently developed by the Receiving Party; (iv) is or becomes a matter of public knowledge through no fault of the Receiving Party; (v) is rightfully received by the Receiving Party from a third party without a duty of confidentiality; (vi) The Receiving Party may disclose Confidential Information of the Disclosing Party if required to do so by law

 
十、專利使用權 
 
(一)系爭專利權歸屬甲方所有(專利證書如附件所示)。 
 
(二)系爭專利獨家授權予乙方。 
 
(三)乙方得經銷(包含但不限於銷售、樣品提供等)系爭專利所製成之本產品。
 
	 
	 
	
 
	 

 
 
ARTICLE X
 
GRANT OF LICENSE
 
	 
	a.	The Company is the sole and exclusive owner of those patents in that schedule attached to this Agreement marked “Schedule A”
	 
	b.	The Company has the right to grant an exclusive license to the Distributor under this agreement
	 
	c.	The Distributor shall promote and sell the Product ( include samples for clients ) invented by the licensed patents

 
十一、其他約定 
 
(一)未經甲方書面許可,乙方不得移轉本合約所訂之權利或義務之一部或全部授予第三人。 
 
(二)任一方如有因本合約之履行而有通知另一方之必要時,需依本合約簽署頁上之聯絡資訊以電子方式通知之。 
 
(三)電子通知方式內容若有扞格,一切以 E-mail 中文部分為準。 
 
	 
	 
	
 
	 

 
ARTICLE XI
 
NOTICES
 
	 
	a.	Without consent from the Company, the Distributor shall not transfer any duty detailed in this agreement to a third party
	 
	b.	Any and all notices permitted or required to be given under the terms of this Agreement shall be in writing and may be served by emails
	 
	c.	In any case of dispute, all communications will be based on the E-mail content communicated in Chinese

  
十二、違約罰則 
 
任一方如違反本合約約定或不履行時,經他方以書面或電子通知,並定期 30 日催 告改正,逾期仍未改正時,他方得逕行終止本合約及一切專利授權,並請求因此所 生之一切損害賠償,但本合約另有約定者,從其約定。 
 
ARTICLE XII
 
ADJUSTMENT AND ADJUDICATION OF DISPUTES 
 
	 
	a.	When either party breach the terms in this agreement, the parties shall be free to bring to the attention of each other, and the good offices and facilities of either party shall be available at all times for the prompt and effective adjustment of any and all such violations, either by mail, email, telephone, or personal meeting within 30 days. If fail to make adjustments, it will result in termination of this agreement requested by the affected party, and the affected party has the right to claim reimbursement or compensation for a loss or damage from the party who has the duty.
	 
	b.	The Agreement are written in both Chinese and English. In case of any dispute, claim, or disagreement arising in relation to or in connection with this Agreement, all terms should be based on the Chinese version and not the English version.

 
 
十三、附則 
 
(一)本合約所有條件如有任何增刪修改,須以書面定之,並經雙方簽認後,始生效力。 
 
(二)本合約任一約定如有被司法程序認定為無效時,雙方同意不影響其他約款之效力。 
 
(三)本合約有中英文版本,英文版本僅供翻譯參考,兩版本有衝突時,以中文版為準。 
 
(四)本合約以中華民國法令為準據法,如有關於本合約之爭議雙方無法達成協議 時,雙方同意臺灣臺北地方法院為第一審管轄法院。 
 
(五)本合約正本壹式貳份,簽署後由雙方各執一份為憑。
 
	 
	 
	
 
	 

 
ARTICLE XIII
 
GENERAL
 
Section 13.1 Severance and Modification. 
 
	 
	a.	No modification, supplement or amendment of this Agreement or of any covenant, representation, warranty, condition, or limitation specified in this Agreement shall be valid unless the same is made in writing and duly executed by both parties.
	 
	b.	In case of any of the provisions hereof shall be deemed invalid by laws, other provisions shall nonetheless continue to take effect.

 
Section 13.2 Governing Law and Court of Jurisdiction. 
 
This agreement shall be governed and construed by the laws of Republic of China (Taiwan). In case of any dispute, claim or disagreement arising in relation to or in connection with is Agreement, parties shall first seek to resolve any such conflict by mediation in good faith; and failing which, the Company and the Distributor hereby agree to submit the conflict to the Taipei District Court as the court of the first instance. 
 
Section 13.3 Counterparts
 
This agreement shall be executed in two identical counterparts, and the Company and the Distributor shall each bear one such counterpart.
 
立合約書人
 
	 
	 
	
 
	 

 
IN WITNESS WHEREOF the parties have caused this Exclusive Distribution Agreement to be executed and delivered by their duly authorized representatives.
 
甲方:超越光能科技有限公司 
 
Ultra Velocity Technology LTD., 
 
/s/ Kun Sen Shi
 
代表人:施坤森 
 
Authorized Representative: Kun Sen Shi
 
地址:新北市蘆洲區中山一路 284 號 10 樓 
 
Address: 10F, No.284, Zhong Shan first Rd., Luzhou District, New Taipei City, Taiwan
 
聯絡電話: **** 
 
 
TEL: ****
 
聯絡信箱:**** 
 
E-mail: ****
 
乙方: EOS INC.
 
EOS INC.
 
/s/ He-Siang Yang  代表人: HESIANGYANG
 
Authorized Representative: HE-SIANG YANG
  地址:台北市中山區中山北路 2 段 162 號 7 樓之 1
 
Address: 7F-1, No.162, Zhongshan North Rd., Zhongshan District, Taipei, Taiwan 聯絡電話: (02)2586-8300 
TEL: (02)2586-8300 
 
聯絡信箱: **** 
 
E-mail: ****ewlu_ex101.htm

EXHIBIT 10.1
 
SECURITIES PURCHASE AGREEMENT
 
This Securities Purchase Agreement (this “Agreement”) is dated as of November 21, 2019 (the “Effective Date”) by and between Merion, Inc., a Nevada corporation (the “Company”) and QUAN HU (the “Purchaser”).
 
RECITALS
 
WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section 5 of the Securities Act contained in Section 4(a)(2) thereof and/or Regulations D and S thereunder, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, certain securities of the Company as more fully described in this Agreement.
 
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:
 
ARTICLE I.
DEFINITIONS
 
1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings set forth in this Section 1.1:
 
“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in, and construed, under Rule 405 under the Securities Act.
 
“Board of Directors” means the board of directors of the Company.
 
“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.
 
“Closing” means the closing of the purchase and sale of the Shares pursuant to Section 2.1.
 
“Closing Date” means the day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Shares, in each case, have been satisfied or waived.
 
“Commission” means the United States Securities and Exchange Commission.
 
	 
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“Common Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed. 
 
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
 
“Exchange Rules” shall mean the listing rules of The OTC Marketplace.
 
“Liens” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
 
“Per Share Purchase Price” equals $1.00 per share of Common Stock, subject to adjustment for reverse and forward stock splits, stock combinations and other similar transactions of the Common Stock that may occur after the date of this Agreement.
 
“Person” means an individual, corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
 
“Required Approvals” shall have the meaning ascribed to such term in Section 3.1(c).
 
“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 
 
“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(f).
 
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
 
“Securities Laws” means, collectively, the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”), the Securities Act, the Exchange Act, the Rules and Regulations, the auditing principles, rules, standards and practices applicable to auditors of “issuers” (as defined in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board, the Exchange Rules and applicable state securities laws and regulations. 
 
“Shares” means an aggregate of 20,000 shares of Common Stock to be issued to the Purchaser pursuant to this Agreement (the “Shares”).
 
“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).
 
“Subscription Amount” means, an aggregate amount of $20,000 to be paid for Shares purchased by the Purchaser in United States dollars and in immediately available funds.
 
	 
	2
	
 
	 

 
“Subsidiary” means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.
 
“Trading Day” means a day on which the principal Trading Market is open for trading.
 
“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the OTCQB or the OTC Pink Open Market (or any successors to any of the foregoing).
 
“Transaction Documents” means this Agreement, and any other documents or agreements executed between the Company and the Purchaser in connection with the transactions contemplated hereunder.
 
“Transfer Agent” means Worldwide Stock Transfer, LLC, the current transfer agent of the Company, with a mailing address of One University Plaza, Suite 505.Hackensack, NJ 07601, and any successor transfer agent of the Company.
 
ARTICLE II.
PURCHASE AND SALE
 
2.1 Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser agrees to purchase, up to an aggregate of 20,000 shares. Upon receiving the Purchaser’s Subscription Amount on the Closing Date and the delivery by the Purchaser of the other items set forth in Section 2.2 deliverable at the Closing, the Company shall deliver the Shares to the Purchaser as determined pursuant to Section 2.2(a). 
 
2.2 Deliveries.
 
(a) On or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser each of the following:
 
(i) this Agreement duly executed by the Company;
 
(ii) subject to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver the Shares equal to the Purchaser’s Subscription Amount divided by the Per Share Purchase Price, in the name of the Purchaser.
 
(b) On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, as applicable, the following:
 
(i) this Agreement duly executed by the Purchaser; and
 
(ii) the Purchaser’s Subscription Amount by wire transfer to the bank account directed by the Company.
  
	 
	3
	
 
	 

 
2.3 Closing Conditions.
 
(a) The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:
 
(i) the accuracy when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date therein in which case they shall be accurate as of such date); 
 
(ii) all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed; and
 
(iii) the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement on or prior to the Closing Date.
 
(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:
 
(i) the accuracy when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in which case they will be accurate as of such date); 
 
(ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; 
 
(iii) the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement on or prior to the Closing Date; and
 
(iv) there shall have been no material adverse effect with respect to the Company since the date hereof.
 
ARTICLE III.
REPRESENTATIONS AND WARRANTIES
 
3.1 Representations and Warranties of the Company. Except as indicated in the SEC Reports, the Company hereby represents and warrants to the Purchaser as of the date of this Agreement and as of the Closing Date as follows:
 
(a) Organization and Qualification. The Company and each of the Subsidiaries, if any, is an entity duly incorporated or otherwise organized and validly existing under the laws of each jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. 
 
	 
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(b) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals (as defined below).
 
(c) Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any governmental authority or any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents or the offer, issue and sale of the Shares, other than: (i) the disclosure filing required for this Agreement, (ii) such filings as are required to be made under applicable state securities laws, and (iii) such consents, waivers and authorizations that shall be obtained prior to the Closing (collectively, the “Required Approvals”).
 
(d) Authorization of the Shares. The Shares to be sold by the Company and their issue and sale are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and free and clear of all Liens imposed by the Company.
 
(e) Capitalization. Except as may be described in the SEC Reports, all of the issued share capital of the Company has been duly and validly authorized and issued, is fully paid and non-assessable. 
 
(f) SEC Reports. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto, documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”). 
 
(g) Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 
3.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as made of a specific date stated therein, in which case they shall be accurate as of such date):
 
(a) Organization; Authority. The Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by the Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser. Each Transaction Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms.
 
	 
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(b) Understandings or Arrangements. The Purchaser is acquiring the Shares for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of the Shares (this representation and warranty not limiting the Purchaser’s right to sell the Shares in compliance with applicable federal and state securities laws). The Purchaser is acquiring the Shares as principal, not as nominee or agent, and not with a view to or for distributing or reselling the Shares or any part thereof in violation of the Securities Act or any applicable state securities law.
 
(c) Foreign Investors. The Purchaser hereby represents that it has satisfied itself as to the full observance by the Purchaser of the laws of its jurisdiction applicable to the Purchaser in connection with the purchase of the Shares or the execution and delivery by the Purchaser of this Agreement and the Transaction Documents, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to the purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the Purchaser’s purchase, holding, redemption, sale, or transfer of the Shares. The Purchaser’s subscription and payment for, and continued beneficial ownership of, the Shares will not violate any securities or other laws of the Purchaser’s jurisdiction applicable to the Purchaser.
 
(d) Experience of Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.
 
(e) Access to Information. The Purchaser acknowledges that it has had the opportunity to review the Transaction Documents and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. 
  	 
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(f) Regulation S. The Purchaser is a non-U.S. person (as such term is defined in Rule 902 of Regulation S under the Securities Act) and is not acquiring the Shares for the account or benefit of a U.S. person. The Purchaser will not, within six (6) months of the date of the transfer of the Shares to the Purchaser, (i) make any offers or sales of the Shares in the United States or to, or for the benefit of, a U.S. person (in each case, as defined in Regulation S) other than in accordance with Regulation S or another exemption from the registration requirements of the Securities Act, or (ii) engage in hedging transactions with regard to the Shares unless in compliance with the Securities Act. Neither the Purchaser nor any of the Purchaser’s Affiliates or any person acting on his/her or their behalf has engaged or will engage in directed selling efforts (within the meaning of Regulation S) with respect to the Shares, and all such persons have complied and will comply with the offering restriction requirements of Regulation S in connection with the offering of the Shares outside of the United States. 
 
(g) Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, the Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with the Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that the Purchaser first discussed the transaction with the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending on the date when this Agreement is publicly disclosed by the Company. The Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).
 
(h) Purchaser Status. At the time the Purchaser was offered the Shares, it was, and as of the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the Securities Act.
 
(i) No Registration. The Purchaser understands that the Shares have not been, and will not be, registered under the Securities Act or applicable securities laws of any state or country and therefore the Shares cannot be sold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and applicable state securities laws or exemptions from such registration requirements are available. The Company shall be under no obligation to register the Shares under the Securities Act and applicable state securities laws, and any such registration shall be in the Company’s sole discretion.
 
(j) No General Solicitation. The Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.
 
	 
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ARTICLE IV.
OTHER AGREEMENTS OF THE PARTIES
 
4.1 Reservation of Securities. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents. 
 
4.2 Certain Transactions and Confidentiality. The Purchaser covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending on the date when this Agreement is publicly disclosed by the Company. The Purchaser also covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company, the Purchaser will maintain the confidentiality of the existence and terms of this transaction. 
 
4.3 Legends. The Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of the Purchaser or in connection with a pledge as contemplated in this Section 4.3, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act. The Purchaser agrees to the imprinting, so long as is required by this Section 4.3, of a legend on all of the certificates evidencing the Shares in the following form:
 
THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
 
	 
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ARTICLE V.
MISCELLANEOUS
 
5.1 Termination. This Agreement may be terminated by the Company or the Purchaser by written notice to the other party if the Closing has not been consummated on or before December 31, 2019; provided, however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties).
 
5.2 Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. 
 
5.3 Entire Agreement. The Transaction Documents contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
 
5.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.
 
5.5 Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchaser, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.
 
5.6 Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
 
5.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. No party hereto may assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company and the Purchaser. 
 
5.8 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in this Section 5.8.
   	 
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5.9 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the Clark County, Nevada. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Clark County, Nevada, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 
 
5.10 Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Shares. The terms of this Article V shall survive any termination of the Agreement pursuant to Section 5.1. 
 
5.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.
 
5.12 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.
  	 
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5.13 Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.
 
5.14 Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. The English version of this Agreement, regardless of whether a translation in any other language is or will be made, shall be the only authentic version.
 
5.15 WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 
 
(Signature Pages Follow)
 
	
	
	

	

 
IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
 
COMPANY
 
MERION, INC.
  
By: /s/ Ding Hua Wang                                                                          
Name: DING HUA WANG
Title: Chief Executive Officer
 
Address for Notice:
9550 Flair Dr, Suite 302
 
El Monte CA 91731
 
Fax: 626-448-2163
 
Email: info@merionus.com
 
PURCHASER
 
By: /s/ Quan Hu                                                                                     
Name: QUAN HU 
 
Address: 
 
Tel: 
 
Email: 
 
	 
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