Document:

Exhibit 10.1

 

 

October 10, 2018

 

VIA EMAIL:  chris@mcewenmining.com

 

Mr. Chris Stewart

105 Cawkers Cove Road

Port Perry, ON   L9L 1R6

 

Dear Chris:

 

RE:                          Revised Offer of Employment

 

I am pleased to provide you with our revised offer letter of employment to you with McEwen Mining Inc. (the “Company”), referenced hereto as Schedule “A” as President and Chief Operating Officer, effective August 13, 2018.

 

Kindly note that your employment is conditional upon you executing and returning a signed copy of this letter and signed/initialed copies of the attached Schedules “A”, “B” and “C” (the “Agreement”) to me no later than October 10, 2018.  In exchange for the covenants contained in the Agreement, the Company shall provide you a one-time signing bonus in the amount of options to purchase an additional 5,000 common shares, which is reflected in the total option grant amount of options to purchase 255,000 shares set out opposite the heading “Stock Options” in the attached Schedule “A”.  These additional options will be reflected in the stock option agreement you receive following execution of this Agreement.

 

Please ensure you retain a copy of the Agreement for your records.

 

Chris, we very much welcome you to the Company team and wish you a successful and rewarding career with us.

 

Sincerely,

MCEWEN MINING INC.

Robert R. McEwen

Chairman and Chief Executive Officer

 

I, Chris Stewart, acknowledge that I have read, understood and accept this offer and the terms and conditions contained in the attached Schedules (which form the Agreement as defined above) and agree to be bound by the terms and conditions of employment as outlined therein, including those that limit my entitlements, if any, upon the end of my employment with the Company.

 

	

    	
 
    	

    

 

 

 

SCHEDULE “A”

 

MCEWEN MINING INC.

Terms and Conditions of Employment

 

The following outlines the terms and conditions of employment with McEwen Mining Inc. (the “Company”).

 

	
Title
    	
 
    	
President and Chief Operating Officer
    
	
 
    	
 
    	
 
    
	
Initial Reporting Relationship
    	
 
    	
Robert R. McEwen, Chairman and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
Effective Date 
    	
 
    	
August 13, 2018 
    
	
 
    	
 
    	
 
    
	
Location
    	
 
    	
Toronto, Ontario
    
	
 
    	
 
    	
 
    
	
Status
    	
 
    	
Full Time 
    
	
 
    	
 
    	
 
    
	
Currency
    	
 
    	
Unless otherwise specified, all currency in this Agreement shall be   in Canadian dollars.
    
	
 
    	
 
    	
 
    
	
Base Salary
    	
 
    	
$400,000 per annum paid on a bi-weekly basis through direct deposit. 
    
	
 
    	
 
    	
 
    
	
Stock Options
    	
 
    	
You shall receive an initial grant of 255,000 Stock Options (being   250,000 Stock Options plus a one time signing bonus of 5,000 Stock Options)   vesting as to one third on each of the first, second and third anniversaries   of the Effective Date and in accordance with the terms of the Company’s   Equity Incentive Plan and Grant Agreement to be issued and priced based on   the closing price on August 15, 2018.

 

Future granting of equity or options is at the sole discretion of the   Board of Directors.
    
	
 
    	
 
    	
 
    
	
Annual Bonus
    	
 
    	
You will be entitled to be considered for an annual bonus at the   discretion of the Compensation Committee of the Board of Directors of the   Company (the “Board”).  Your target annual bonus will be 100% of   your base salary.  Your annual bonus   will be determined based on you achieving personal KPIs and corporate   performance objectives and goals as set out annually, in advance, by the   Chief Executive Officer.  You can   select to have it paid in cash or stock (or a combination of both), pro-rated   for the first fiscal year of your employment.    If paid in stock, the issuance price and timing of issuance of such   stock shall be valued as determined by the Board.

 

The bonus, if any, will be paid after the public release of the   Company’s annual financial statements and has been approved by the CEO and   Board of Directors.  Any such bonus payment   does not form part of your regular compensation and is also not automatic,   retroactive or precedent based.

 

Please note that, subject to the Ontario Employment Standards Act, 2000,   as amended from time to   time, or its successor legislation   (the “ESA”), and to the   terms set out in this agreement, you must be actively employed at the time of   award to receive any such annual bonus. 
    

 

	
EMPLOYEE   INITIALS  
    

 

2

 

	
Vacation
    	
 
    	
You will be entitled to   five (5) weeks of vacation annually, accrued on a monthly basis, to be   taken at a time as determined or agreeable to the Company having due regard   to its operations.  Subject to only the   minimum requirements under the ESA,   any unused vacation in excess of your statutory minimums that has not been   used at the end of the calendar year shall be forfeited and forever lost   without further payment by the Company, unless you were required to forego   your vacation as directed by the Chief Executive Officer, due to business   demands, in which case, such foregone vacation days, if unused at the end of   the fiscal year in which they occurred, shall be paid to you at the end of   such fiscal year.  You will otherwise   be subject to the Company’s vacation policy, as the same may be amended from   time to time.
    
	
 
    	
 
    	
 
    
	
Benefits
    	
 
    	
You shall be entitled   to participate in all benefit plans of Company as may be made available to   employees of Company from time to time for which you are eligible in   accordance with applicable plans and/or insurance contracts.  You will receive complete details of all   benefits plans as part of your orientation.
    
	
 
    	
 
    	
 
    
	
Expenses
    	
 
    	
The Company shall   provide a parking spot for your use, near the Company’s offices in   Toronto.  In addition, while in active   employment, the Company shall reimburse you for the reasonable costs   associated with a cell phone, fuel, and 407 ETR toll charges in connection   with your travel to and from the office.    When using your personal vehicle for Company business outside of   regular travel to and from the office you shall be reimbursed for mileage on   a per kilometer basis at the rate published from time to time by the Canada   Revenue Agency.  Such expense   reimbursements do not form part of your compensation and shall not be   continued following the effective date of termination of your employment for   any reason.  
    
	
 
    	
 
    	
 
    
	
Travel
    	
 
    	
As per the requirements   of your position, you will be expected to travel to our different locations,   as the operations of the business reasonably demand.  You agree that risks associated with such   travel have been described to you as part of the hiring process and that you   voluntarily assume those risks.  The   Company will continue to provide you with ongoing and reasonable information   as it relates to such risks.
    
	
 
    	
 
    	
 
    
	
Policies and Standards
    	
 
    	
The Company has established a variety of   policies and standards, which shall form part of your employment terms with   the Company, including the Code of Business Conduct and Ethics, Global   Anti-Corruption, Anti-Harassment and the Expense Reimbursement Policy.  You agree to be bound by these policies and   standards, as amended or otherwise introduced from time to time at the sole   discretion of the Company. 
    
	
 
    	
 
    	
 
    
	
No Obligations to Third Parties
    	
 
    	
You hereby represent and   warrant to the Company that you are not party to any written or oral   agreement with any third party that would restrict your ability to enter into   this Agreement or Schedule “C” (the Confidentiality and Intellectual Property   Information Agreement) or to perform your obligations hereunder and that you   will not, by joining Company, breach any non-disclosure, intellectual property rights,   non-competition, non-solicitation or other covenant in favour of any   third party.
    
	
 
    	
 
    	
 
    
	
Changes to Duties and/or

Compensation 
    	
 
    	
If your duties or   compensation should change during the course of your employment with the Company, the validity of this   Agreement, including the section regarding “Termination by You With Notice”,   “Termination by the Company for Cause” and “Termination by the Company   without Cause” will continue in full force and effect. 
    

 

	
EMPLOYEE   INITIALS  
    

 

3

 

	
Termination by You With Notice
    	
 
    	
You may terminate your   employment under this Agreement by providing the Company with 60 days’ advance written   notice.  Subject to any requirements   under the ESA, the Company may waive such further notice, or change your   assignment, or place of work during such notice of termination, provided such   changes are made in good faith and reasonably required, and it shall not   constitute a constructive dismissal.    Any unvested stock options that have not vested as of the effective   date of your written notice (the end of the 60-day period), shall be governed   by the terms of the applicable stock option plan.
    
	
 
    	
 
    	
 
    
	
Termination by the Company With Cause
    	
 
    	
The Company may   terminate your employment without notice for any of the following reasons, or   as specified under the ESA or “Cause” under common law, including: (a) your   continued failure to substantially perform your duties as described in   Schedule “B”, or otherwise required by the Company; (b) your willful   engagement in misconduct which is injurious to the Company, other than   business decisions made in good faith; (c) the willful violation by you   of the provisions of this Agreement or any material policy, including the   Code of Business Conduct and Ethics, Global Anti-Corruption, Anti-Harassment   and Expense Reimbursement Policy; (d) dishonesty; (e) you being   found guilty of an offence under criminal or quasi criminal legislation that   has a reasonably drawn nexus to the workplace which in the Company’s sole   determination caused or could cause damage to its reputation; or   (f) engaging in an apparent conflict of interest that is not remedied by   you within ten (10) business days after the Company provides you with   written notice setting out in reasonable detail the alleged conflict of   interest.  In the event of a   termination under this section, the Company shall pay you any unpaid wages   earned to the date of termination and any accrued and unpaid vacation pay   earned by you during the same calendar year.    Except for as may be required under the ESA, the Company shall have no   further obligations to you.  Any   unvested stock options that have not vested as of the date that the notice of   termination for cause is provided to you, shall be governed by the terms of   the applicable stock option plan.
    
	
 
    	
 
    	
 
    
	
Termination by the Company Without Cause 
    	
 
    	
The Company may   terminate your employment without Cause, for any reason other than pursuant   to a Change of Control (as defined below), by providing you with the greater   of: (a) a lump sum payment equal to 12 months’ base salary (with no   annual bonus other than any prorated bonus, at the discretion of the Board,   for the year in which the termination occurs) if you are terminated in the   first year of employment, and a lump sum payment of 18 months’ base salary   plus 1.5 times the average bonus you received over the prior two years if you   are terminated thereafter; or (b) only your minimum entitlement to   notice or pay in lieu of notice and statutory severance pay owing to you   under the ESA.  The lump sum payment   will be provided within thirty (30) days of the notice of termination being   provided to you by the Company.

 

In either case of   (a) or (b) in this Section, benefits shall be continued for the   minimum period required under the ESA and you shall receive your vacation pay   as set forth under the ESA.  For   certainty, any such payments contemplated in this Section shall be   inclusive of, and you shall receive, the notice required by the ESA and/or   pay in lieu of such notice, or statutory severance pay (if any) owing under   the ESA, contract or common law.
    
	
 
    	
 
    	
 
    
	
Change   of Control
    	
 
    	
If a Change of Control   occurs (as defined below) and within 6 months following the date of the   Change of Control, you give notice to the Company to terminate your   employment on a date within 30 days from the date of notice, the Company   shall pay the Agreed Severance Sum (as defined below) to you within one month   
    

 

	
EMPLOYEE   INITIALS  
    

 

4

 

	
 
    	
 
    	
of the date of   termination and any unvested stock options shall become fully vested and   exercisable at the end of the 30 day notice period.

 

“Change of   Control” means:  any change   in the direct or indirect ownership of, or control of the Company as a result   of which a person, or group of persons acting jointly or in concert within   the meaning of the Securities Act   (Ontario) not currently representing ownership of the Company, acquire 51%   control of the shares of the Company.

 

“Agreed   Severance Sum” means:  an   amount equal to 24 months’ base salary and target bonus plus benefits (except   for any short or long-term disability benefits which shall end following the   end of the statutory notice period).    Again, as set forth in the section “Termination by the Company Without   Cause” you shall receive any vacation and any other minimum entitlements   owing to you under the ESA.
    
	
 
    	
 
    	
 
    
	
Release of Claims
    	
 
    	
In order to receive any   payment in excess of statutory minimums prescribed by the ESA you agree to   execute a Release of claims relating to your employment in favour of the   Company and its affiliates.  For   greater certainty, such Release shall not include a release of your   continuing rights to insurance coverage and director & officer   indemnity or a release of your rights to the compensation and benefits listed   in this Agreement.
    
	
 
    	
 
    	
 
    
	
Effect of Termination
    	
 
    	
You agree that upon   cessation of your employment for any reason you shall be deemed to have   immediately resigned any position that you may have as an officer, director   or employee of the Company together with any other office, position or   directorship that you may hold in any of the Company’s related entities.  In such event, you shall execute any and   all documents appropriate to evidence such resignations.  You agree that you are not entitled to any   payments in respect of the resignations in addition to those provided herein.
    
	
 
    	
 
    	
 
    
	
Compliance with Ontario   Legislation 
    	
 
    	
Nothing in this Agreement is intended to conflict with the ESA.  In the event of a conflict between any   provision or language in this Agreement and the ESA, such ESA shall govern.

 

You agree that you have received a copy of the ESA Poster v. 7.0.

 

The Company provides accommodations for employees with   disabilities.  If you require a   specific accommodation because of a disability or medical need, please   contact Carmen Diges, General Counsel at 647.258.0395 or by e-mail at cdiges@mcewenmining.com before your start date so that, subject   to measures constituting undue hardship, the appropriate accommodations can   be in place before you begin work.
    
	
 
    	
 
    	
 
    
	
Statutory Deductions and   Withholdings
    	
 
    	
The Company may withhold from any amounts payable to you such federal   or provincial taxes and other statutory deductions that are required under   applicable law to be so withheld and deducted. 
    
	
 
    	
 
    	
 
    
	
Severability
    	
 
    	
If any court of competent jurisdiction renders any provision or   section of this Agreement unenforceable, such unenforceability shall not   affect the enforceability of any other provision or section of this   Agreement.
    
	
 
    	
 
    	
 
    
	
Entire Agreement
    	
 
    	
This Agreement, inclusive of the Schedules, supersedes any and all   other agreements, whether oral or in writing, between the parties with   respect to your employment with the Company, including the Term Sheet as   between you and 
    

 

	
EMPLOYEE   INITIALS  
    

 

5

 

	
 
    	
 
    	
McEwen Mining dated July 18, 2018, and you hereby acknowledge   that you have not been induced from prior employment.
    
	
 
    	
 
    	
 
    
	
Governing Law
    	
 
    	
This Agreement is governed by the laws of the Province of Ontario and   the Employee agrees to the non-exclusive jurisdiction of the courts of the   Province of Ontario in relation to this Agreement.
    
	
 
    	
 
    	
 
    
	
Confidentiality and   Intellectual Property
    	
 
    	
As highlighted in the   offer letter, attached, this Agreement is conditional upon you agreeing to   and abiding by the “Confidentiality and Intellectual Property Information   Agreement” attached hereto as Schedule “C.”     
    
	
 
    	
 
    	
 
    
	
Legal Advice
    	
 
    	
By signing below you   acknowledge that you have had the opportunity to obtain independent legal   advice.
    

 

Remainder of Page Intentionally Left Blank

 

	
EMPLOYEE   INITIALS  
    

 

6

 

SCHEDULE “B”

 

Position Description

 

SERVICES

 

Title: President and Chief Operating Officer

 

Reporting Structure: Chief Executive Officer and the Board of Directors, or designate

 

SUMMARY

 

McEwen Mining Inc. is a growing gold and silver producer operating in Argentina, Mexico, Canada and the United States. The Company is publicly traded and listed on the NYSE and TSX.

 

SUMMARY OF ROLE AND KEY RESPONSIBILITIES

 

·                  Responsible for all operating assets and projects

·                  Improving the profitability of all operations

·                  Focused on reducing cost per ounce produced

·                  Push all employees for continuous improvement

·                  Building a team of performers

·                  Ensuring we have the in-house capability to grow

 

SKILLS AND QUALIFICATIONS:

 

·                  Mining engineering degree

·                  Strong operating background

·                  Managed multiple operation simultaneously

·                  Capital markets experience — capital raising

·                  Persuasive presenter

·                  Good problem solver

 

	
EMPLOYEE INITIALS  
    

 

7

 

SCHEDULE “C”

 

Employee Covenants

Confidentiality and Intellectual Property Agreement

 

In consideration of employment with McEwen Mining Inc. (the “Company”), Chris Stewart (the “Employee”) and for other payments and benefits provided, the sufficiency of which is acknowledged by the Employee, the Employee agrees and covenants as follows:

 

1.              Employment with the Company will give the Employee access to intellectual and confidential information belonging to the Company, its customers, its suppliers and others (the confidential information is collectively referred to in this Agreement as “Confidential Information”).  Confidential Information includes records, data, materials and information and copies thereof and all information relating to any properties, procedures, suppliers, services, personnel, policies and practice, cost and expense structure, business, prospects and business/organizational opportunities and plans of the Company and all financial information and other information or disclosure relating to the business and affairs of the Company.  Confidential Information does not include information that at the time it was received was in the public domain, was disclosed to the Employee through no fault of the Employee, was legitimately known to Employee prior to disclosure, or is required by law to be disclosed.

 

2.              The Employee covenants and agrees that the Company shall solely and exclusively own all right, title and interest in, and to, all “Intellectual Property”, which is defined as follows:  all intellectual and industrial property and rights therein, whether or not registered or registrable, and all registrations, applications, divisional, extensions, and reissues therefor, including without limitation all works in which copyright subsists or may subsist, derivative works, computer software, moral rights, designs, industrial designs, Confidential Information, as defined above, trademarks and trade names including all goodwill associated therewith, patents, discoveries, improvements, inventions and integrated circuit topographies, specifically developed, created, produced or contributed to by the Employee at any time, pursuant to this Agreement.  The Employee hereby assigns all Intellectual Property to the Company.  The Employee further agrees to sign and deliver to the Company all documents the Company may reasonably require to confirm or evidence such assignment and the Company’s ownership of the Intellectual Property, when and as requested by the Company.  The Employee agrees to waive, and hereby waives, any and all moral rights or rights of a similar nature which the Employee has or in the future may have (including in Intellectual Property which may come into existence after the date of this Agreement) in each jurisdiction throughout the world, to the extent that such rights may be waived in each respective jurisdiction.  The Employee further agrees to sign and deliver to the Company all documents the Company may reasonably require to confirm or evidence such waiver of the moral rights, when and as requested by the Company.  For clarity, the Employee acknowledges that the Company and its affiliates and licensees have the unlimited right to use (or not to use) the Intellectual Property and all elements thereof, including the right to edit, change, distort, transpose and otherwise modify the Intellectual Property in any manner and to use the Intellectual Property in association with any and all goods, services, products and institutions and the Employee shall waive and hereby waives any right to receive authorship or ownership credit in connection with any use of the Intellectual Property or elements thereof.

 

3.              The Employee shall, during and after employment, keep all Confidential Information and Proprietary Property confidential and shall not use any of it except for the purpose of carrying out authorized activities on behalf of the Company.

 

	
EMPLOYEE   INITIALS  
    

 

8

 

4.              The Employee covenants and agrees not to make any unauthorized use whatsoever of or to bring onto the Company’s premises for the purpose of making any unauthorized use whatsoever of any trade secrets, confidential information or intellectual property of any third party, including without limitation any trade-marks or copyrighted materials, during the course of employment.  The Employee agrees and represents that employment and the execution of this Agreement do not and will not breach any agreement to which the Employee is currently a party or which currently applies to the Employee.

 

5.              The Employee agrees that the Employee will, if requested from time to time by the Company, execute such further reasonable agreements as to confidentiality and intellectual property rights as the Company’s customers or suppliers reasonably required to protect Confidential Information or Intellectual Property.

 

6.              Regardless of any changes in position, salary or otherwise, including, without limitation, termination of the Engagement, unless otherwise stipulated pursuant to the terms hereof, the Employee will continue to be subject to each of the terms and conditions of this Agreement and any other(s) executed pursuant to the preceding paragraph.

 

7.              The Employee acknowledges that the services provided by the Employee to the Company are unique.  The Employee further agrees that irreparable harm will be suffered by the Company in the event of the Employee’s breach or threatened breach of any of their obligations under this Agreement, and that the Company will be entitled to seek, in addition to any other rights and remedies that it may have at law or equity, a temporary or permanent injunction restraining the Employee from engaging in or continuing any such breach hereof.  Any claims asserted by the Employee against the Company shall not constitute a defence in any injunction action, application or motion brought against the Employee by the Company.

 

8.              This Agreement is governed by the laws of the Province of Ontario and the Employee agrees to the non-exclusive jurisdiction of the courts of the Province of Ontario in relation to this Agreement.

 

9.              If any court of competent jurisdiction renders any provision or section of this Agreement unenforceable, such unenforceability shall not affect the enforceability of any other provision or section of this Agreement.

 

IN WITNESS WHEREOF the Company has caused this Agreement to be executed as of the 10th day of October, 2018.

 

	

    	
 
    	

    

 

	
EMPLOYEE   INITIALS  
    	
 
    	
9Exhibit 10.1

 

Dated the 2nd of October,
2018

  

 

EFFECTUAL STRENGTH ENTERPRISES LIMITED

  

And

 

TANG LIANG

(湯亮)

 

And

 

ACME INNOVATION LIMITED

 

And

 

PUJIANG INTERNATIONAL GROUP LIMITED

(浦江國際集團有限公司)

 

And

 

ELEGANT KINDNESS LIMITED

(雅慈有限公司)

  

 

 

 

  

Agreement
for the sale and purchase

of
13,050,000 issued shares of 

OSSEN INNOVATION CO., LTD.

 

 

 

 

 

 

高 蓋 茨 律 師
 事 務 所

44th Floor, Edinburgh Tower, The Landmark

15 Queen's Road Central, Hong Kong

T 852.2230.3500 F 852.2511.9515

Website: www.klgates.com

Our ref : 4400163.00001/VTSO

 

     

     

    

 

This
Agreement is made on the 2nd day of October, 2018

 

 

BETWEEN:

 

		(1)	EFFECTUAL STRENGTH ENTERPRISES LIMITED, a company incorporated in the British Virgin Islands
whose registered office is at Craigmuir Chambers, Road Town, Tortola, VG 1110 , British Virgin Islands (the “Vendor”);

 

		(2)	TANG LIANG (湯亮), holder of PRC identity card numbered 310104196803084879 of
49 Wan Ping Lu, Xuhui District, Shanghai, China (the “Warrantor”);

 

		(3)	ACME INNOVATION LIMITED, a company incorporated in the British Virgin Islands whose registered
office is at Maples Corporate Services (BVI) Limited, Kingston Chambers, PO Box 173, Road Town, Tortola, British Virgin Islands
(the “Purchaser”), the entire issued share capital of which is owned by Pujiang International;

 

		(4)	PUJIANG INTERNATIONAL GROUP LIMITED (浦江國際集團有限公司),
a company incorporated in the Cayman Islands whose registered office is at Maples Corporate Services Limited, PO Box 309, Ugland
House, Grand Cayman KY1-1104, Cayman Islands and whose headquarters and principal place of business in the PRC is at Floor 17,
518 Shangcheng Road, Shanghai 200120, PRC (“Pujiang International”); and

 

		(5)	ELEGANT KINDNESS LIMITED 雅慈有限公司, a company incorporated
in the British Virgin Islands whose registered office is at Unit 8, 3/F., Qwomar Trading Complex, Blackburne Road, Port Purcell,
Road Town, Tortola, British Virgin Islands, VG1110 (“Elegant Kindness”).

 

 

WHEREAS:

 

		(A)	Ossen Innovation Co., Ltd., a company incorporated in the British Virgin Islands whose registered
office is at Craigmuir Chambers, Road Town, Tortola, VG 1110 , British Virgin Islands and listed on NASDAQ (the “Company”),
is a limited liability company incorporated under the laws of the British Virgin Islands with an authorized share 100,000,000 shares
with par value of US$0.01 per share, 13,050,000 shares of which have been issued and fully paid or credited as fully paid and beneficially
owned by the Vendor. Further particulars of the Company are set out in Schedule 1.

 

		(B)	Pujiang International, with an authorized share capital of 38,000,000 shares of HK$0.01 per share,
of which 88,818, 13,930, 10,447 and 1,161 shares, fully paid or credited as fully paid, have been issued to Elegant Kindness, Brilliance
Benefit Holding Limited, Xinland Investment Limited, Five Standers Holding Limited respectively, intends to obtain a listing (the
 “Listing”) of its Shares (as defined below) by way of global offering in issue and to be issued on the Main
Board of the Stock Exchange (as defined below).

 

		(C)	In preparation for the Listing, a corporate reorganization of a group of companies will take place
whereby the Company will become a non-wholly owned subsidiary of Pujiang International upon its completion. The reorganization
memorandum of Pujiang International is set out in Schedule 3.

 

    	 	1	 

     

    

 

		(D)	As part of the Reorganization, the Vendor has agreed to the sale of the Sale Shares (as defined
below) legally and beneficially owned by the Vendor, and the Purchaser has agreed to the purchase of such Sale Shares from the
Vendor, representing 65.9% of the issued share capital of the Company (not including any outstanding options, warrants or other
securities to purchase share capital of the Company, if any, as set forth in the public filings of the Company), in consideration
of allotment of the Consideration Shares to Elegant Kindness, a company wholly-owned by the Warrantor, on the terms and conditions
of this Agreement.

 

		(E)	The Warrantor holds the entire issued share capital of the Vendor and has agreed to provide the
Warrantor Warranties (as defined below) in consideration of the Purchaser agreeing to acquire the Sale Shares.

 

 

NOW IT IS HEREBY AGREED as follows:

 

		1.	Interpretation

 

		1.1	In this Agreement, including the Recitals, the following expressions shall have the following meanings
except where the context otherwise requires:

 

	 	“Accounting Date”	31 December 2017;
	 	 	 
	 	“Accounts”	the audited combined financial statements of the Group for the three financial years ended 31 December 2017;
	 	 	 
	 	“Agreement”	this Agreement as amended, modified or supplemented from time to time;
	 	 	 
	 	“Associate”	shall have the same meaning ascribed thereto in the Listing Rules;
	 	 	 
	 	“Companies Ordinance”	the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong)
	 	 	 
	 	“Completion”	completion of the sale and purchase of the Sale Shares under this Agreement in accordance with the provisions of Clause 4;
	 	 	 
	 	“Completion Date”	the date of this Agreement or such later date as shall be agreed between the parties hereto in writing on which Completion takes place;

 

    	 	2	 

     

    

  

	 	“Consideration Shares”	54,404 Shares to be allotted and issued to Elegant Kindness by Pujiang International at the direction of the Vendor as provided in Clause 3 as the consideration for the sale and purchase of the Sale Shares;
	 	 	 
	 	“Disclosed”	the disclosure in the Accounts;
	 	 	 
	 	“Group”	the Company and the Subsidiaries, and “Group Company” and “member of the Group” shall be construed accordingly;
	 	 	 
	 	“Hong Kong”	the Hong Kong Special Administrative Region of the PRC;
	 	 	 
	 	“Listing Rules”	the Rules Governing the Listing of Securities on the Stock Exchange;
	 	 	 
	 	“NASDAQ”	the NASDAQ (National Association of Securities Dealers Automated Quotation System) Capital Market in the United States;
	 	 	 
	 	“PRC”	the People’s Republic of China (other than Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan for the purposes of this Agreement);
	 	 	 
	 	“Purchaser Warranties”	agreements, obligations, warranties, representations and undertakings of the Purchaser contained in this Agreement including the representations, warranties and undertakings contained in Part B of Schedule 2;
	 	 	 
	 	“Sale Shares”	13,050,000 shares of par value of US$0.01 per share in the share capital of the Company, representing 65.9% of the issued share capital of the Company (not including any outstanding options, warrants or other securities to purchase share capital of the Company), which is legally and beneficially owned by the Vendor prior to Completion;
	 	 	 
	 	“Shares”	the shares of HK$0.01 each in the share capital of Pujiang International;
	 	 	 
	 	“Stock Exchange”	The Stock Exchange of Hong Kong Limited;
	 	 	 
	 	“Subsidiaries”	all the companies listed in Exhibit 8.1 to the Company’s  Annual Report on Form 20-F as subsidiaries of the Company, which is attached in Schedule 1;

 

    	 	3	 

     

    

 

	 	“Tax” or “Taxation”	all forms of tax, levy, duty, charge, impost, fee, deduction or withholding of any nature now or hereafter imposed, levied, collected, withheld or assessed by any taxation or other competent authority in any part of the world and includes any cost, charge, fine, interest, additional tax, penalty or other charge payable or claimed in respect thereof and all interest (including such amount required to be paid by the Company or any of the Group Companies pursuant to section 71(5) or section 71(5A) of the Inland Revenue Ordinance (Chapter 112 of the Laws of Hong Kong) or similar legislation elsewhere or otherwise), penalties, costs, charges and expenses incidental or relating to the liability to Taxation;
	 	 	 
	 	“Vendor Warranties”	agreements,  obligations, warranties, representations and undertakings of the Vendor contained in this Agreement including the representations, warranties and undertakings contained in Part A of Schedule 2;
	 	 	 
	 	“Warranties”	the Vendor Warranties, the Warrantor Warranties and the Purchaser Warranties; 
	 	 	 
	 	“Warrantor Warranties”	agreements,  obligations, warranties, representations and undertakings of the Warrantor contained in this Agreement including the representations, warranties and undertakings contained in Part A of Schedule 2; and
	 	 	 
	 	“HK$”	Hong Kong dollars, the lawful currency of Hong Kong.

 

		1.2	In this Agreement:

 

		(a)	references to Recitals, Clauses, Sub-clauses and Schedules are to recitals, clauses and sub-clauses
of and the schedules to this Agreement;

 

		(b)	reference to a Sub-clause is, unless otherwise stated, to the sub-clause of the Clause in which
the reference appears;

 

		(c)	reference to a Paragraph is to the paragraph of the Schedule in which the reference appears;

 

		(d)	the Schedules form part of this Agreement;

 

		(e)	reference to any Ordinance, regulation or other statutory provision in this Agreement includes
reference to such Ordinance or regulation or provision as modified, consolidated or re-enacted from time to time (except to the
extent where any such modification, consolidation or re-enactment increases the liability of the Vendor under this Agreement);

 

		(f)	words denoting the singular include the plural, words denoting one gender include both genders
and the neuter and words denoting persons include corporations and, in each case, vice versa;

 

    	 	4	 

     

    

 

		(g)	headings and the index page are for ease of reference only and do not form part of this Agreement;
and

 

		(h)	reference to the parties are to parties to this Agreement.

 

 

		2.	SALE AND PURCHASE

 

		2.1	Upon and subject to the terms of this Agreement, the Vendor shall as beneficial owner sell the
Sale Shares beneficially owned by it to the Purchaser and the Purchaser shall, relying on such Vendor Warranties, purchase the
Sale Shares beneficially owned by the Vendor with effect from Completion free from all liens, charges, equities, encumbrances or
third party interests together with all rights now or hereafter attaching thereto including but not limited to all dividends or
distributions which may be paid, declared or made in respect thereof at any time on or after the date of this Agreement.

 

		2.2	The Vendor shall not be obliged to sell and shall not sell any of the Sale Shares beneficially
owned by the Vendor, and the Purchaser shall not be obliged to acquire and shall not acquire any of the Sale Shares, unless the
sale and purchase of all of the Sale Shares are completed at the same time. The Purchaser may rescind this Agreement if the Vendor
shall fail to sell any of the Sale Shares beneficially owned by the Vendor to the Purchaser as contemplated by Clause 2.1 and in
accordance with the terms and conditions of this Agreement; and the Vendor may rescind this Agreement if the Purchaser shall fail
to purchase any of the Sale Shares from the Vendor as contemplated by Clause 2.1 and in accordance with the terms and conditions
of this Agreement.

 

 

		3.	Consideration

 

		3.1	In consideration of and in exchange for the Vendor agreeing to sell the Sale Shares to the Purchaser,
the Purchaser shall procure the allotment and issue, credited as fully paid, of the Consideration Shares by Pujiang International
at Completion, all of which shall be issued and allotted free from all liens, charges, equities, encumbrances or third party interests
and shall rank pari passu in all respects with all the existing Shares in issue as at the date of allotment of the Consideration
Shares, to Elegant Kindness. The issuance of the Consideration Shares to Elegant Kindness shall constitute full discharge of the
obligation to pay for the consideration of the Sale Shares by the Purchaser and/or Pujiang International.

 

 

4.       Completion

 

		4.1	This Agreement shall be completed forthwith upon the signing of this Agreement or at such other
time as the parties may agree in writing at Floor 17, 518 Shangcheng Road, Shanghai 200120, PRC (or such other date and place as
the parties hereto may agree in writing).

 

    	 	5	 

     

    

 

		4.2	The Vendor, as the beneficial owner of the Sale Shares, shall notify on or before Completion, the
Company of the transfer of the Sale Shares from the Vendor to the Purchaser, the Vendor, the Warrantor, the Purchaser, Pujiang
International and Elegant Kindness and make all filings necessary required by NASDAQ and U.S. laws and regulations, including the
filing with the U.S. Securities and Exchange Commission of one or more reports on Schedule 13D.

 

		4.3	At Completion, the Vendor shall deliver to the Purchaser the following:

 

		(a)	original share certificate in the name of the Vendor representing the Sale Shares;

 

		(b)	duly signed instrument of transfer in respect of the Sale Shares in favour of the Purchaser and/or
such other persons as the Purchaser shall direct and such other documents as may reasonably be required to give a good and effective
transfer of title to the Sale Shares to the Purchaser and/or such other persons as the Purchaser shall direct and to enable the
Purchaser and/or such other persons as the Purchaser shall direct to become the registered holder thereof

 

		(c)	a copy of the resolutions of the board of directors of the Company approving

the transfer of the Sale Shares;

 

		(d)	a certified copy of the resolutions of the sole director of the Vendor (where applicable) approving
this Agreement and the transactions hereby contemplated;

 

		(e)	such waivers, consents or other documents as the Purchaser may reasonably require to enable the
Purchaser and/or its nominee(s) to be registered as holder(s) of the Sale Shares beneficially owned by such Vendor; and

 

		(f)	an opinion from the US counsel of the Company stating that (i) the transfer of the Sale Shares
is permitted under relevant securities laws; (ii) each of the members of the Group having obtained all necessary licences, consents
or approvals (where applicable) of any of their respective shareholders, creditors and/or any other third parties, which are required
for the execution and performance of this Agreement and the transactions hereby contemplated and which have not been revoked prior
to Completion; and (iii) each of the members of the Group having obtained all necessary licences, consents or approvals (where
applicable) of any governmental or regulatory authorities or bodies, which are required for the execution and performance of this
Agreement and the transactions hereby contemplated and which have not been revoked prior to Completion

 

		4.4	On Completion, against compliance with the provisions of Clauses 4.2 and 4.3:

 

		(a)	the Purchaser shall procure the allotment and issue of the Consideration Shares by Pujiang International
to Elegant Kindness at the direction of the Vendor pursuant to Clause 3;

 

    	 	6	 

     

    

 

		(b)	(if so requested by the Vendor) the Purchaser shall procure to deliver and Pujiang International
shall deliver to Elegant Kindness share certificates representing the Consideration Shares and cause the relevant share certificates
to be endorsed to reflect that the Shares represented thereby are fully paid Shares; and

 

		(c)	the Purchaser shall procure to enter and Pujiang International shall enter Elegant Kindness in
the register of members of Pujiang International as the holder of the Consideration Shares.

 

		4.5	On or before Completion:

 

		(a)	the Purchaser shall pass the necessary resolutions to approve (among others) this Agreement and
the transactions hereby contemplated;

 

		(b)	the Company shall pass the necessary resolutions to approve the transfer of the Sale Shares and
instruct its registered agent to enter the Purchaser in its register of members as the holder of the Sale Shares, and to issue
the relative share certificate in respect of the Sale Shares in the name of the Purchaser upon the transfer of the Sale Shares
from the Vendor to the Purchaser; and

 

		(c)	Pujiang International shall pass the necessary resolutions to approve (among others) (i) this Agreement
and the transactions hereby contemplated; and (ii) the allotment and issue of the Consideration Shares to Elegant Kindness pursuant
to Clause 3 and to enter Elegant Kindness in its register of members of as the holder of the Consideration Shares, and to issue
the relative share certificates in respect of the Consideration Shares in the name of Elegant Kindness.

 

		4.6	The Purchaser shall not be obliged to complete the purchase of any of the Sale Shares unless the
purchase of all the Sale Shares is completed in accordance with this Agreement. Without prejudice to any other remedies available
to the Purchaser, if in any respect the provisions of Clauses 4.2 and 4.3 are not complied with by the Vendor on Completion the
Purchaser may:

 

		(a)	defer Completion to a date not more than 14 days after the Completion Date (and so that the provisions
of this Clause 4.6 shall apply to Completion as so deferred); or

 

		(b)	proceed to Completion so far as practicable (without prejudice to its rights hereunder); or

 

		(c)	rescind this Agreement without prejudice to any other
remedy it may have.

 

		4.7	The Vendor shall not be obliged to complete the sale of any of the Sale Shares unless the sale
of all the Sale Shares is completed in accordance with this Agreement. Without prejudice to any other remedies available to the
Vendor, if in any respect the provisions of Clauses 4.4 and 4.5 are not complied with by the Purchaser on Completion the Vendor
may:

 

		(a)	defer Completion to a date not more than 14 days after the Completion Date (and so that the provisions
of this Clause 4.7 shall apply to Completion as so deferred); or

 

    	 	7	 

     

    

 

		(b)	proceed to Completion so far as practicable (without prejudice to its rights hereunder); or

 

		(c)	rescind this Agreement without prejudice to any other
remedy it may have.

 

		4.8	Without prejudice to any other right or remedy available to the Purchaser, the Purchaser shall
be entitled to rescind this Agreement by notice in writing to the Vendor if prior to Completion it appears that any of the Vendor
Warranties and the Warrantor Warranties is not or was not true and accurate in all material respects or if any act or event occurs
which, had it occurred on or before the date of this Agreement, would have constituted a breach of any of the Vendor Warranties
and the Warrantor Warranties in any material respect or if there is any non-fulfilment of any of the Vendor Warranties and the
Warrantor Warranties which (being capable of remedy) is not remedied prior to Completion.

 

		4.9	If the Purchaser or Pujiang International shall fail to complete the purchase or allotment (as
the case may be) in accordance with the terms and conditions of this Agreement (otherwise than due to the default of the Vendor
and the Warrantor), then the Vendor and the Warrantor shall be entitled to jointly elect to rescind this Agreement by notice in
writing to the Purchaser without prejudice to any other right or remedy available to the Vendor and the Warrantor jointly or severally.

 

		4.10	If the Vendor shall (otherwise than due to the default of the Purchaser) fail to complete the sale
in accordance with the terms and conditions of this Agreement, then the Purchaser shall be entitled to rescind this Agreement by
notice in writing to the Vendor without prejudice to any other right or remedy available to the Purchaser.

 

		4.11	Without prejudice to Clauses 4.6 and 4.7, if Completion does not take place by October 30, 2018,
this Agreement shall terminate and cease to have any further force or effect, and no party shall have any further liability or
obligation to the other parties.

 

 

		5.	VENDOR’S, WARRANTOR’S AND PURCHASER’S Warranties

 

		5.1	Save as Disclosed and subject to the provisions of the Schedule 2, which shall apply to all claims
for breaches of any of the Warranties:

 

		(a)	the Vendor and the Warrantor hereby jointly and severally warrants and represents to the Purchaser
that the Vendor Warranties and the Warrantor Warranties are true and accurate in all material respects; and

 

		(b)	the Purchaser hereby warrants and represents to the Vendor that the Purchaser Warranties are true
and accurate in all material respects,

 

in each case, as at the time
of signing of this Agreement and will continue to be so and shall be deemed to be repeated each day thereafter up to the time immediately
before Completion (if Completion does not take place immediately after the signing of this Agreement), in each case, with reference
to the facts and circumstances then existing.

 

    	 	8	 

     

    

 

		5.2	Save as may be necessary to give effect to the terms of this Agreement, the Vendor and the Warrantor
shall not and shall procure (insofar as it is within its power to do so) that the Group shall not do, allow or procure before Completion
anything which is or might cause or constitute or result in a breach of any of the Vendor Warranties and the Warrantor Warranties
given by the Vendor and the Warrantor respectively or which may make any of the Vendor Warranties and the Warrantor Warranties
given by the Vendor and the Warrantor respectively not being true or accurate in all material respects.

 

		5.3	Each of the Warranties is without prejudice to any other Warranty and, except where expressly stated
otherwise, no provision contained in this Agreement shall govern or limit the extent or application of any other provision.

 

		5.4	The Warranties shall continue to have full force and effect notwithstanding Completion and shall
survive Completion for two years after the Listing insofar as the same are not fully performed on Completion.

 

		5.5	The Vendor and the Warrantor hereby jointly and severally undertake to indemnify and keep the Purchaser
fully indemnified on demand from and against all losses, liabilities, damages, reasonable costs and expenses (including legal expenses)
which the Purchaser may incur or sustain from or in consequence of any of the Vendor Warranties and the Warrantor Warranties given
by the Vendor and the Warrantor respectively not being true and accurate in all material respects. This indemnity shall be without
prejudice to any other rights and remedies of the Purchaser in relation to any such breach of any of the Vendor Warranties and
the Warrantor Warranties given by the Vendor and the Warrantor respectively, and all such rights and remedies are hereby reserved.

 

		5.6	The Purchaser hereby undertakes to indemnify and keep the Vendor fully indemnified on demand from
and against all losses, liabilities, damages, reasonable costs and expenses (including legal expenses) which the Vendor may incur
or sustain from or in consequence of any of the Purchaser Warranties given by the Purchaser not being true and accurate in all
material respects. This indemnity shall be without prejudice to any other rights and remedies of the Vendor in relation to any
such breach of any of the Purchaser Warranties given by the Purchaser, and all such rights and remedies are hereby reserved.

 

		5.7	If at any time before Completion, the Purchaser shall find that any of the Vendor Warranties or
the Warrantor Warranties is not, or has not been, true and accurate in all material respects or is (in its reasonable opinion)
incapable of being rectified before Completion, or (as the case may be) the Vendor shall find that any of the Purchaser Warranties
is not, or has not been, true and accurate in all material respects or is (in its reasonable opinion) incapable of being rectified
before Completion, the Purchaser or the Vendor (as the case may be) shall not be bound to complete the sale and purchase of the
Sale Shares (if not yet completed immediately after the signing of this Agreement) and may rescind this Agreement by written notice
to the other parties. For the avoidance of doubt, no party may rely on the breach or non-compliance of its own Warranties to rescind
this Agreement.

 

    	 	9	 

     

    

 

		5.8	Each party shall promptly notify the other parties in writing of any fact, event or circumstance
which it becomes aware of, and which fact, event or circumstance (including any omission to act) which constitutes a breach of
or is in any way inconsistent with any of the Warranties given by such party or which may make any of the Warranties given by such
party not being true and accurate in all material respects.

 

		5.9	The Vendor hereby agrees and acknowledges that the Purchaser, and the Purchaser hereby agrees and
acknowledges that the Vendor, is entering into this Agreement strictly in reliance on the Warranties provided by such party with
the intention of inducing the Purchaser or the Vendor (as the case may be) to enter into this Agreement and that accordingly the
Purchaser or the Vendor (as the case may be) has been induced to enter into this Agreement.

 

		5.10	Each of the Vendor Warranties and the Warrantor Warranties shall be qualified by reference to those
matters Disclosed.

 

 

		5.11	Each party’s rights herein are in addition to and without prejudice to all other rights and
remedies available to it and its exercise of or its failure to exercise its rights hereunder shall not constitute a waiver of or
prejudice any of its other rights under this Agreement.

 

 

		6.	VENDOR’S UNDERTAKING

 

		6.1	The Vendor hereby:

 

		(a)	undertakes to the Purchaser, to supply to it on Completion, to the extent required by the Listing
Rules or the Stock Exchange, with full and accurate details of any business or interest which the Vendor and/or its Associates
has or may have which competes or may compete with the business from time to time carried on by the Group and any other conflicts
of interests which the Vendor has or may have with the Group;

 

		(b)	undertakes to the Purchaser, at any time during the application for Listing, during which the Shares
of Pujiang International are listed on the Stock Exchange and for so long as the Vendor and/or its Associates is regarded, whether
individually or taken together, a substantial shareholder of Pujiang International within the meaning of the Listing Rules, forthwith
supply to the Purchaser, to the extent required by the Listing Rules or the Stock Exchange, of any changes of the details and information
referred to in Sub-clause (a) above so as to enable the Purchaser to include such information in all announcements, circulars,
annual reports and half-yearly reports required to be issued by Pujiang International pursuant to the Listing Rules; and

 

		(c)	acknowledges that and consent to the information supplied to the Purchaser pursuant to this Clause
6.1 will or may be disclosed by Pujiang International in the prospectus, circulars, reports, announcements and other statements
to the Stock Exchange and/or any regulatory authorities and their respective officers and employees from time to time issued by
Pujiang International and that such disclosure is required by Pujiang International in order to comply with the requirements of
the Stock Exchange and/or other regulatory bodies.

 

    	 	10	 

     

    

  

		7.	INFORMATION

 

From the date of this Agreement
until Completion (in the event of Completion not taking place immediately following the signing of this Agreement), the Vendor
shall provide to the Purchaser, its agents and professional advisers promptly on request and subject to reasonably advanced notice,
reasonable access to all such facilities and information regarding the business, assets, liabilities, contracts and affairs of
the Group that has been previously publicly disclosed and of the documents of title and other evidence of ownership of its assets,
as the Purchaser may reasonably require.

 

 

		8.	FURTHER ASSURANCE

 

Each of the parties shall execute
such documents and perform such further acts as the other(s) of them may reasonably require effectively to vest in the relevant
parties the legal and beneficial ownership of the Sale Shares or, as the case may be, the Consideration Shares, free from all charges,
liens, encumbrances, equities and other adverse claims and interests and, in the case of the Sale Shares, with all rights now and
hereafter attaching thereto including but not limited to all dividends or distributions which may be paid, declared or made in
respect thereof at any time on or after Completion and, in the case of the Consideration Shares, the pari passu ranking thereof
among themselves and with all the existing Shares in issue as at the date of allotment of the Consideration Shares save as regards
any dividend declared or paid by reference to a record date which is prior to the Completion Date and with all rights hereafter
attaching thereto with effect from Completion.

 

 

		9.	GENERAL

 

		9.1	This Agreement supersedes all previous agreements between
the parties or any of them in relation to the sale and purchase of the Sale Shares, the allotment and issue of the Consideration
Shares and the other matters referred to in this Agreement and the parties acknowledge that no claim shall arise in respect of
any agreement so superseded.

 

		9.2	This Agreement contains the entire agreement between
the parties relating to the sale and purchase of the Sale Shares and the allotment and issue of the Consideration Shares and there
are no other representations, warranties, conditions or terms whatsoever applicable thereto whether express or implied. In particular
each of the parties confirms that it has not been induced to enter into this Agreement by any statement or statements of fact
or opinion other than such (if any) as are contained herein such statements, in the case of the Warranties, being subject to all
matters referred to in Clause 5.

 

		9.3	Any variation to this Agreement shall be binding only
if recorded in a document signed by the parties.

 

		9.4	Time shall be of the essence of this Agreement but no
failure by any party to exercise, and no delay on its part in exercising any right hereunder will operate as a waiver thereof,
nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise of it or the
exercise of any right or prejudice or affect any right against any person under the same liability whether joint, several or otherwise.
The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

    	 	11	 

     

    

 

		9.5	None of the parties may assign or transfer any of their
rights or obligations under this Agreement.

 

		9.6	If any term in or provision of this Agreement shall be
held to be illegal or unenforceable in whole or in part under any enactment or rule of law, the term or provision shall to that
extent be deemed not to form part of this Agreement, and the enforceability of the remainder of this Agreement shall not be affected.

 

		9.7	Save as required by the applicable laws, the Listing
Rules, the Stock Exchange or the Securities and Futures Commission of Hong Kong, and except for the purpose of performance of
this Agreement and the transactions hereby contemplated or those matters which has come to the public domain otherwise than by
the breach of the confidentiality obligations of the disclosing party hereunder, this Agreement shall be kept strictly confidential
and any announcements or disclosure in respect of the matters referred to in this Agreement shall only be made on terms agreed
in writing by the parties.

 

 

		10.	NOTICES

 

		10.1	Any notice claim, demand, document or other communication
to be given under this Agreement (collectively “communication” in this Clause 10) may be served or given personally
or sent to the address or facsimile numbers (if any) stated after the relevant party’s name at the beginning of this Agreement
or to the registered office (or their respective resident agents in Hong Kong) for the time being of the party to be served, or
to such other address as may have been last notified in writing by such party to the party serving the communication specifically
referring to this Agreement. All communication shall be served by the following means and the addressee of a communication shall
be deemed to have received the same within the time stated adjacent to the relevant means of despatch:

 

	 	Means of despatch	Time of deemed receipt
	 	 	 
	 	Local mail or courier	24 hours
	 	Facsimile	on despatch
	 	Air courier/Speedpost	3 days
	 	Airmail	5 days

 

		10.2	A communication served in accordance with Clause 10.1
shall be deemed sufficiently served and in proving service and/or receipt of a communication it shall be sufficient to prove that
such communication was left at the addressee’s address or that the envelope containing such communication was properly addressed
and posted or dispatched to the addressee’s address or that the communication was properly transmitted by facsimile to the
addressee. In the case of facsimile transmission, such transmission shall be deemed properly transmitted on receipt of a satisfactory
report of transmission printed out by the sending machine.

 

    	 	12	 

     

    

 

		10.3	Nothing in this Clause 10 shall preclude the service
of communication or the proof of such service by any mode permitted by law.

 

 

		11.	COSTS

 

The Purchaser shall bear all
costs and expenses (including legal fees) reasonably incurred by the parties in connection with the preparation, negotiation, execution
and performance of this Agreement and all documents incidental or relating to Completion.

 

 

		12.	GOVERNING LAW AND JURISDICTION

 

This Agreement shall be governed
by and construed in accordance with the laws of Hong Kong and the parties irrevocably submit to the non-exclusive jurisdiction
of the Hong Kong courts.

 

 

		13.	COUNTERPARTS

 

This Agreement may be executed
by the parties in any number of counterparts and on separate counterparts, each of which so executed shall be deemed an original
but all of which shall constitute one and the same instrument and is binding on all parties. A party may execute this Agreement
and the documents referred to herein on a facsimile copy counterpart and deliver its/his signature by facsimile.

 

 

    	 	13	 

     

    

 

SCHEDULE 1

 

PART A:DETAILS OF THE COMPANY

 

	Company name	:	Ossen Innovation Co., Ltd.
	Place of incorporation	:	British Virgin Islands
	Date of incorporation	:	JAN.21, 2010
	Company registration number	:	1567594
	Registered Office	:	Craigmuir Chambers, Road Town, Tortola, VG 1110, British Virgin Islands
	Authorised share 	:	100,000,000 shares with par value of US$0.01 per share
	Issued share 	:	19,791,110 shares with par value of US$0.01 per share
	Market listed	:	NASDAQ
	Ticker	:	OSN

  

    	 	14	 

     

    

 

PART B:DETAILS OF THE SUBSIDIARIES

 

The details of the Subsidiaries are set out in exhibit 8.1 to
the Company’s Annual Report on Form 20-F, accessible through the following link:

 

https://www.sec.gov/Archives/edgar/data/1485538/000114420418028893/tv493592_ex8-1.htm

 

    	 	15	 

     

    

 

SCHEDULE 2

 

PART A: VENDOR WARRANTIES AND WARRANTOR
WARRANTIES

 

		(1)	Where any of the following paragraphs of this Schedule is qualified by the expression “to
the best of the knowledge, information and belief of the Vendor and the Warrantor” or “so far as the Vendor and the
Warrantor are aware” or any similar expression, then (unless clearly not admitted by the context) that paragraph shall be
deemed to include an additional warranty to the effect that the statement has been made after due and careful enquiry, including
without limitation, with the relevant professional advisers of the Subsidiaries.

 

		(2)	Unless the context requires otherwise, the representations, warranties and undertakings contained
in this Schedule in relation to the Company shall be deemed to be repeated mutatis mutandis in relation to each member of the Group.

 

		(3)	All warranties contained in this Schedule are deemed to be prefaced by the expression “Save
as Disclosed”.

  

SALE SHARES

 

 

		(4)	The Vendor is the sole legal and beneficial owner of the Sale Shares.

 

		(5)	There is no encumbrance on, over or affecting the Sale Shares, there is no agreement or commitment
to give or create any such encumbrance and no person has made any claim to be entitled to any right over or affecting the Sale
Shares.

 

		(6)	No consent of any third party is required for the sale of any of the Sale Shares.

 

MISCELLANEOUS

 

		(7)	The execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby will not result in any breach or cancellation or termination of any of the terms or conditions of or constitute a default
under any agreement, commitment or other instrument to which the Vendor is a party or by which the Vendor or its assets may be
bound or affected or violate any law or any rule or regulation or any order or decree of any administrative agency or governmental
body affecting the Vendor.

 

		(8)	The Vendor and the Warrantor have all the requisite power and capacity to enter into and perform
its obligations under this Agreement.

 

		(9)	This Agreement and all documents and instruments executed pursuant hereto are, and when delivered
will be, valid and legally binding obligations of the Vendor and the Warrantor.

 

    	 	16	 

     

    

 

		(10)	The execution and performance of this Agreement by the Vendor and the Warrantor shall not violate
any provision of law and will not conflict with or result in any breach of any decree, judgment or order applicable to any of them.

 

		(11)	The Sale Shares constitute 65.9% of the issued share capital of the Company (not including any
outstanding options, warrants or other securities to purchase share capital of the Company) and is in issue fully paid.

  

    	 	17	 

     

    

 

PART B:PURCHASER’S AND PUJIANG
INTERNATIONAL’S WARRANTIES

 

Each of Pujiang International and the Purchaser
represents and warrants to the Vendor that:

 

		(a)	the matters stated in the Recitals and the Schedule in respect of itself is true and accurate;

 

		(b)	it has full power to enter into and perform this Agreement and this Agreement will, when executed,
constitute legal, valid and binding obligations on it in accordance with its terms;

 

		(c)	on Completion, the Consideration Shares will constitute approximately 32.24% of the issued share
capital of Pujiang International on an enlarged basis (not including any outstanding options, warrants or other securities to purchase
share capital of Pujiang International) and will be issued and allotted to Elegant Kindness, credited as fully paid, free from
all charges, liens, encumbrances, equities and other adverse claims and third party interests, together with all rights attaching
thereto with effect from Completion, and shall rank pari passu in all respects with all the existing Shares in issue as at the
date of allotment of the Consideration Shares save as regards any dividend declared or paid by reference to a record date which
is prior to the Completion Date;

 

		(d)	the execution and performance of this Agreement by the Purchaser and Pujiang International shall
not violate any provision of law and will not conflict with or result in any breach of any decree, judgment or order applicable
to it;

 

		(e)	no consent of any third party is required for the allotment and issuance of any of the Consideration
Shares;

 

		(f)	the execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby will not result in any breach or cancellation or termination of any of the terms or conditions of or constitute a default
under any agreement, commitment or other instrument to which the Purchaser or Pujiang International is a party or by which the
Purchaser or Pujiang International or its assets may be bound or affected or violate any law or any rule or regulation or any order
or decree of any administrative agency or governmental body affecting the Purchaser or Pujiang International

 

		(g)	Pujiang International and the Purchaser have all the requisite power and capacity to enter into
and perform its obligations under this Agreement; and

 

		(h)	this Agreement and all documents and instruments executed pursuant hereto are, and when delivered
will be, valid and legally binding obligations of the Purchaser or Pujiang International.

 

    	 	18	 

     

    

 

SCHEDULE 3

 

The reorganization memorandum of a group
of companies whereby, amongst others, the Company will become a non-wholly owned subsidiary of Pujiang International upon its completion,
is attached hereto.

 

    	 	19	 

     

    

 

IN WITNESS whereof the parties entered
into this Agreement the day and year first above written.

 

	THE VENDOR	 	 
	 	 	 
	SIGNED, SEALED AND DELIVERED as a	)	 
	Deed by TANG LIANG	)	 
	for and on behalf of 	)	 
	EFFECTUAL STRENGTH ENTERPRISES 	)	 
	LIMITED	)	 
	in the presence of:	)	 

  

 

 

	THE WARRANTOR	 	 
	 	 	 
	SIGNED, SEALED AND DELIVERED as a	)	 
	Deed by TANG LIANG	)	 
	in the presence of:	)	 

  

 

 

	THE PURCHASER	 	 
	 	 	 
	SIGNED, SEALED AND DELIVERED as a	)	 
	Deed by TANG LIANG	)	 
	for and on behalf of 	)	 
	ACME INNOVATION LIMITED	)	 
	in the presence of:	)	 

  

 

 

	PUJIANG INTERNATIONAL	 	 
	 	 	 
	SIGNED, SEALED AND DELIVERED as a	)	 
	Deed by TANG LIANG	)	 
	for and on behalf of 	)	 
	PUJIANG INTERNATIONAL GROUP	)	 
	LIMITED	)	 
	in the presence of:	)	 

  

    	 	20	 

     

    

  

	ELEGANT KINDNESS	 	 
	 	 	 
	SIGNED, SEALED AND DELIVERED as a	)	 
	Deed by TANG LIANG	)	 
	for and on behalf of 	)	 
	ELEGANT
    KINDNESS LIMITED	)	 
	雅慈有限公司	)	 
	in the presence of:	)	 

 

    	 	21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]