Document:

Exhibit 10.1

 

THIRD AMENDMENT TO CREDIT AGREEMENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Third Amendment”), dated as of April 24, 2017, among ALERE INC., a Delaware corporation (the “Borrower”), each of the Guarantors (as defined in the Credit Agreement referred to below) party hereto, the Lenders (as defined in the Credit Agreement referred to below) party hereto, GOLDMAN SACHS BANK USA, as the B Term Loan Administrative Agent (as defined in the Credit Agreement referred to below), and HEALTHCARE FINANCIAL SOLUTIONS, LLC, as the Pro Rata Administrative Agent (as defined in the Credit Agreement referred to below), is made with reference to that certain Credit Agreement, dated as of June 18, 2015 (as amended, modified or supplemented through, but not including, the date hereof, the “Credit Agreement”), by and among the Borrower, the Lenders, the Administrative Agents (as defined in the Credit Agreement referred to below) and the other parties thereto.  Unless otherwise indicated, all capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement.

 

W I T N E S S E T H:

WHEREAS, the Borrower, the Administrative Agents and each Lender party hereto desire to amend the Credit Agreement and to waive certain Defaults thereunder, in each case as provided herein;

NOW, THEREFORE, it is agreed:

I.            Amendments and Modifications to Credit Agreement.

1.            Section 1.1 of the Credit Agreement is hereby amended by inserting in the appropriate alphabetical order the following new definitions:

“2017 Specified Audited Financial Statements” has the meaning specified in Section 6.1(b).

“Third Amendment Consenting Lender” means any Lender that has delivered to its Applicable Administrative Agent (or its counsel) an executed counterpart of the Third Amendment on or prior to 4:00 p.m., New York City time, on April 21, 2017.

“Third Amendment Effective Date” means April 24, 2017.

2.            Section 6.1(b) of the Credit Agreement is hereby amended by replacing the “.” at the end thereof with the following further proviso:

“; provided, further, however, with respect to the Fiscal Year ended December 31, 2016, the foregoing audited financial statements (and related certification by the Group Members’ Accountants) (such audited financial statements and related certification for the Fiscal Year ended December 31, 2016 being herein referred to as the “2017 Specified Audited Financial Statements”) do not have to be delivered by the Borrower to the

 

 

Administrative Agents until the earliest of (i) May 31, 2017, (ii) May 10, 2017, unless the requisite percentage of holders of each of the outstanding Existing 2018 Senior Notes and the Existing 2020 Subordinated Notes have, in each case, consented in writing to an extension for the delivery by the Borrower of the 2017 Specified Audited Financial Statements pursuant to the applicable indentures until no earlier than June 7, 2017 and, in each case, have waived any default or event of default that has arisen from such 2017 Specified Audited Financial Statements not being timely delivered in accordance with the respective terms of the Existing 2018 Senior Notes Indenture and the Existing 2020 Subordinated Notes Indenture, (iii) May 24, 2017, unless the requisite percentage of holders of the outstanding New 2023 Subordinated Notes have consented in writing to an extension for the delivery by the Borrower of the 2017 Specified Audited Financial Statements pursuant to the New 2023 Subordinated Notes Indenture until no earlier than June 7, 2017 and have waived any default or event of default that has arisen from such 2017 Specified Audited Financial Statements not being timely delivered in accordance with the terms of the New 2023 Subordinated Notes Indenture and (iv) the occurrence of any Event of Default.”

 

II.            Limited Waiver.

Upon the satisfaction of the conditions precedent set forth in  Section III.5 hereof, and in reliance upon the representations and warranties of the Loan Parties set forth in the Credit Agreement and in this Third Amendment, the Lenders hereby waive any Defaults and/or Events of Default that may have occurred, are occurring or hereafter occur solely as a result of (i) the Borrower’s failure to deliver the audited Consolidated financial statements for the Fiscal Year ended December 31, 2016 pursuant to Section 6.1(b) of the Credit Agreement by no later than 90 days after the end of such Fiscal Year, together with the corresponding Compliance Certificate pursuant to Section 6.1(c) of the Credit Agreement and the related information pursuant to Sections 6.1(d), 6.1(f), 6.1(g) and 6.1(h) of the Credit Agreement, (ii) any restatement, revision or other adjustment of any of the Borrower’s financial statements delivered to any Person prior to December 31, 2016 that may be required as a result of or in connection with the review described in the Company’s Current Report on Form 8-K filed with the United States Securities and Exchange Commission on April 17, 2017 (the “April 8-K”) as a result of (1) the Borrower’s incorrect recognition of revenue transactions due to the incorrect application of revenue recognition principles, inappropriate conduct or otherwise at its Korean and Japanese locations, substantially as described in the April 8-K, for the years ended December 31, 2011, 2012, 2013, 2014, 2015 and 2016 (and each of the quarters in those annual periods) or (2) certain financial adjustments substantially as described in the April 8-K or otherwise included in the financial tables included in the April 8-K or (iii) any breach of any representation or warranty or affirmative covenant as a result of any misstatement or inaccuracy in any certificate, projection, management’s discussion and analysis, report, opinion or statement (including any financial statement) delivered to any Person that is discovered as part of or in connection with the review described in the April 8-K or otherwise included in the financial tables included in the April 8-K to the extent that such breach is due to (1) the Borrower’s incorrect recognition of revenue transactions due to the incorrect application of revenue recognition principles, inappropriate conduct or otherwise at its Korean and Japanese locations, substantially as described in the April 8-K, for the years ended December 31, 2011, 2012, 2013, 2014, 2015 and 2016 (and each of the quarters in those annual periods) or (2) certain financial adjustments substantially as described in

 

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the April 8-K or otherwise included in the financial tables included in the April 8-K (the Defaults and/or Events of Default referred to in preceding clauses (i), (ii) and (iii), collectively, the “Specified Defaults”). The waiver contained in this Section II is limited as specified herein and (i) shall only be relied upon and used for the specific purpose set forth herein, (ii) shall not constitute nor be deemed to constitute a waiver of (x) any other Default or Event of Default or (y) any other term or condition of the Credit Agreement or the other Loan Documents, (iii) shall not constitute nor be deemed to constitute a consent by either Administrative Agent or the Lenders to anything other than the specific purpose set forth herein and (iv) shall not constitute a custom or course of dealing among the parties hereto.  The Borrower hereby acknowledges and agrees that, notwithstanding anything contained in the Credit Agreement or any of the other Loan Documents to the contrary, the failure by the Borrower to deliver audited Consolidated financial statements for the Fiscal Year ended December 31, 2016 pursuant to Section 6.1(b) of the Credit Agreement, as amended by this Third Amendment (the “Third Amended Credit Agreement”), together with the corresponding Compliance Certificate pursuant to Section 6.1(c) of the Third Amended Credit Agreement and the related information pursuant to Section 6.1(f) of the Third Amended Credit Agreement on or before the respective deadlines set forth in the provisos in Section 6.1(b) of the Third Amended Credit Agreement shall constitute an immediate Event of Default under the Credit Agreement without the need for any further notice by either Administrative Agent or the expiration of any additional grace periods.

III.            Miscellaneous Provisions.

1.            Representations and Warranties.  To induce the Administrative Agents and the Lenders to enter into this Third Amendment, each Loan Party represents and warrants to the Administrative Agents and the Lenders on and as of the Third Amendment Effective Date (as defined below) that:

(a)            The execution, delivery and performance by the Borrower and each Guarantor of this Third Amendment and the performance of the Third Amended Credit Agreement, and the acknowledgment of this Third Amendment by the other Loan Parties signatory hereto: (i) are within each such Loan Party’s corporate or similar powers and, at the time of execution thereof, have been duly authorized by all necessary corporate and similar action, (ii) do not (A) contravene such Loan Party’s Constituent Documents, (B) violate any Requirement of Law, (C) conflict with, contravene, constitute a default or breach under, any material Contractual Obligation of any Loan Party or any of their respective Subsidiaries, other than those which could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, or (D) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of their respective Subsidiaries and (iii) do not require any Loan Party to obtain any Permit from, or make any filing with, any Governmental Authority or obtain any consent from, or notice to, any Person, other than (A) as has been obtained and made on or prior to the Third Amendment Effective Date and which remains in full force and effect on the Third Amendment Effective Date and (B) filings of (or relating to) the Loan Documents with the SEC pursuant to the Borrower’s public disclosure obligations under applicable United States federal securities laws and/or the rules of any securities exchange on which the Borrower’s securities are listed, except where the failure to obtain any such Permit, make any such filing or obtain any such consent could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

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(b)            This Third Amendment has been duly executed and delivered by or on behalf of the Borrower and acknowledged by each other Loan Party.

(c)            Each of this Third Amendment and the Third Amended Credit Agreement is the legal, valid and binding obligation of the Borrower and is enforceable against the Borrower in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other similar laws affecting creditors’ rights generally or by general equitable principles relating to enforceability.

(d)            No Default (other than the Specified Defaults) or Event of Default has occurred and is continuing on the Third Amendment Effective Date or would occur after giving effect to this Third Amendment.  Without limiting the generality of the foregoing, the Borrower is in compliance with Section 5.1 of the Credit Agreement in respect of its Fiscal Quarter ended December 31, 2016.

(e)            No action, claim or proceeding is now pending or, to the knowledge of any Loan Party, threatened against such Loan Party, at law, in equity or otherwise, before any court, board, commission, agency or instrumentality of any foreign, federal, state, or local government or of any agency or subdivision thereof, or before any arbitrator or panel of arbitrators, which (i) challenges any Loan Party’s right or power to enter into or perform any of its obligations under this Third Amendment, the Third Amended Credit Agreement or any other Loan Document to which it is or will be, a party, or the validity or enforceability of this Third Amendment, the Third Amended Credit Agreement or any other Loan Document or any action taken thereunder, or (ii) has a reasonable risk of being determined adversely to such Loan Party and that, if so determined, could reasonably be expected to have a Material Adverse Effect.

(f)            Other than as set forth in this Third Amendment, the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the Third Amendment Effective Date (it being understood that (x) any representation or warranty that is qualified by materiality or Material Adverse Effect shall be required to be true and correct in all respects and (y) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects (or all respects, as the case may be) as of such specified date).

2.            No Waivers/Consents/Amendments.  Except as expressly provided herein, (a) the Credit Agreement and the other Loan Documents shall be unmodified and shall continue to be in full force and effect in accordance with their terms, and (b) this Third Amendment shall not be deemed a waiver or modification of any other term or condition of any Loan Document and shall not be deemed to prejudice any rights, remedies, powers or privileges which any Administrative Agent or any Lender may now have or may have in the future under or in connection with any Loan Document or any of the instruments or agreements referred to therein, as the same may be amended from time to time. This Third Amendment shall constitute a “Loan Document” under and as defined in the Credit Agreement.

3.            Affirmation of Obligations.  Each of the Loan Parties hereby acknowledges, agrees and affirms (a) its obligations under the Credit Agreement and the other Loan Documents, including, without limitation, its guaranty obligations under the Guaranty and

 

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Security Agreement, (b) that such guaranty shall apply to the Obligations in accordance with the terms thereof, (c) the grant of the security interest in all of its assets pursuant to the Loan Documents and (d) that such liens and security interests created and granted are valid and continuing and secure the Obligations in accordance with the terms thereof, in each case after giving effect to this Third Amendment.

4.            Costs and Expenses.  The Borrower hereby reconfirms its obligations pursuant to Section 11.3(a) of the Credit Agreement and any engagement letter relating to this Third Amendment to pay and reimburse the Administrative Agents (and their respective Affiliates) for all reasonable costs and expenses (including, without limitation, reasonable fees of counsel) incurred in connection with the negotiation, preparation, execution and delivery of this Third Amendment and all other documents and instruments delivered in connection herewith.

5.            Amendment Effectiveness.  This Third Amendment shall become effective on the date on which each of the following conditions shall have been satisfied (the “Third Amendment Effective Date”).

 

(a)            Amendment.  The Administrative Agents shall have received copies of signature pages to this Third Amendment, duly executed and delivered (including by way of facsimile or other electronic transmission) by each Administrative Agent, the Borrower and the Required Lenders, and acknowledged by each of the other Loan Parties.

(b)            Payment of Fees, Costs and Expenses.  The Borrower shall have paid, by wire transfer of immediately available funds:

(i)            to the Administrative Agents and their respective Affiliates, all reasonable and documented costs, fees and expenses due and owing in connection with this Third Amendment and the other Loan Documents (to the extent required to be paid under Section 11.3(a) of the Credit Agreement and any engagement letter relating to this Third Amendment);

(ii)            to the Applicable Administrative Agent, for the account of each Lender that has delivered to the Applicable Administrative Agent (or its counsel) an executed counterpart of this Third Amendment on or prior to 4:00 p.m., New York City time, on April 21, 2017, a fee (collectively, the “Third Amendment Fee”) in an amount equal to 0.125% of the sum of (i) the aggregate principal amount of all Term Loans of such Lender outstanding on the Third Amendment Effective Date and (ii) the Revolving Credit Commitment of such Lender as in effect on the Third Amendment Effective Date; and

(iii)            to White & Case LLP, as counsel to the Administrative Agents, all reasonable and documented fees and expenses of White & Case LLP in connection with the Loan Documents and this Third Amendment.

(c)            No Default; Representations and Warranties.  (i) No Default (other than the Specified Defaults) or Event of Default shall have occurred and be continuing or would occur after giving effect to this Third Amendment and (ii) the representations and warranties made by or on behalf of the Borrower and each other Loan Party in this Third Amendment and, other than as set forth in this Third Amendment, the Credit Agreement and the other Loan Documents shall

 

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be true and correct in all material respects on and as of the Third Amendment Effective Date (it being understood that (x) any representation or warranty that is qualified by materiality or Material Adverse Effect shall be required to be true and correct in all respects and (y) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects (or all respects, as the case may be) as of such specified date).

(d)            Officer’s Certificate. The Borrower shall have delivered to the Administrative Agents a certificate executed by a Responsible Officer of the Borrower certifying that the conditions set forth in preceding clause (c) have been satisfied as of the Third Amendment Effective Date.

(e)            Unaudited Financial Statements. The Borrower shall have delivered to the Administrative Agents a preliminary unaudited Consolidated balance sheet of the Borrower as of the end of the Fiscal Year ended December 31, 2016 and related unaudited Consolidated statements of profit and loss and cash flow for such Fiscal Year; it being agreed that the Borrower makes no representation or warranty with respect to any such preliminary financial statements.

6.            Governing Law.  This Third Amendment, and the rights and obligations of the parties hereto, shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

7.            Counterparts.  This Third Amendment may be executed by the parties hereto on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

  

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Third Amendment as of the date first above written.

 

 

	 	ALERE INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ James Hinrichs	 
	 	 	Name:	James Hinrichs 	 
	 	 	Title:	Executive Vice President and Chief Financial Officer 	 

 

 

		
GOLDMAN SACHS BANK USA, as 

B Term Loan Administrative Agent

	 
	 	 	 	 
	
 

	
By: 

	/s/ Gabriel Jacobson	 
	 	 	Name:	Gabriel Jacobson 	 
	 	 	Title:	Authorized Signatory 	 

 

 

		
HEALTHCARE FINANCIAL SOLUTIONS, LLC, as 

Pro Rata Administrative Agent, L/C Issuer and Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Ivan Medarov	 
	 	 	Name:	Ivan Medarov 	 
	 	 	Title:	Duly Authorized Signatory 	 

 

  

 

 

 

 

[Signature Page to Alere Third Amendment]

 

SIGNATURE PAGE TO THE THIRD AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST WRITTEN ABOVE, AMONG ALERE INC., THE LENDERS PARTY THERETO, GOLDMAN SACHS BANK USA, AS B TERM LOAN ADMINISTRATIVE AGENT, HEALTHCARE FINANCIAL SOLUTIONS, LLC, AS PRO RATA ADMINISTRATIVE AGENT AND L/C ISSUER AND THE OTHER PARTIES PARTY THERETO

 

 

		
[NAME OF LENDER]1

	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

	
 

	
[By: 

	/s/ 	 
	 	 	Name:	 	 
	 	 	Title:]2	 	 

 

 

1 Signature pages for Required Lenders on file with the Administrative Agents.

2 If second signature line is required.

 

 

[Signature Page to Alere Third Amendment]

 

 

 

ACKNOWLEDGED AND AGREED:

 

  

ALERE CONNECT, LLC

ALERE HOLDCO, INC.

ALERE HOME MONITORING, INC.

ALERE INFORMATICS, INC.

ALERE INTERNATIONAL HOLDING CORP.

ALERE NORTH AMERICA, LLC.

ALERE PHOENIX ACQ, INC.

ALERE SAN DIEGO, INC.

ALERE SCARBOROUGH, INC.

ALERE TOXICOLOGY, INC.

ALERE TOXICOLOGY SERVICES, INC.

ALERE US HOLDINGS, LLC

AMEDITECH INC.

AMERICAN MEDICAL SUPPLIES, INC.

ATS LABORATORIES, INC.

AVEE LABORATORIES INC.

BIOSITE INCORPORATED

ESCREEN, INC.

FIRST CHECK DIAGNOSTICS LLC

GLOBAL ANALYTICAL DEVELOPMENT LLC

INNOVACON, INC.

INSTANT TECHNOLOGIES, INC.

INSTANT TECH SUBSIDIARY ACQUISITION INC.

INVERNESS MEDICAL, LLC

IONIAN TECHNOLOGIES, LLC

LABORATORY SPECIALISTS OF AMERICA, INC.

PEMBROOKE OCCUPATIONAL HEALTH, INC.

QUALITY ASSURED SERVICES, INC.

REDWOOD TOXICOLOGY LABORATORY, INC.

RTL HOLDINGS, INC.

SELFCARE TECHNOLOGY, INC.

STANDING STONE, LLC

SPDH, INC.

 

  

	 	
By:

	
/s/ Douglas J. Barry 

	 
	 	
Name:  Douglas J. Barry

	 	
Signing in his capacity as the Secretary or Assistant Secretary, as applicable, 

for each of the above listed Guarantors

 

 

 

 

 

 

[Signature Page to Alere Third Amendment]Exhibit
10.1

 

NOTE
CONVERSION AGREEMENT 

 

This
Note Conversion Agreement (the “Agreement”) is entered into and effective as of April 19, 2017 by and among
Elsa Sung, Dahuai Zhang, and SCI, Inc. (each, a “Converter”, collectively, the “Converters”)
and mLight Tech, Inc. a Florida corporation (the “Company”), with reference to the following:

 

WHEREAS,
the Company and Converters desire to convert three promissory notes (each, a “Note”, collectively, the “Notes”),
substantially in the form attached hereto as Exhibit A, in the aggregate principal of One Hundred and Thirty-Three
Thousand Dollars ($133,000) that the Company issued to Converters on March 31, 2017 into shares of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”).

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Converter and the
Company agree as follows:

 

1.
Conversion to Common Stock. Effective as of April 19, 2017, the total outstanding principal under the Notes shall be converted
into shares of Company’s Common Stock (the “Shares”) at a price of $0.01 per share, for an aggregate
number of 13,300,000 shares. Upon execution of this Agreement, a Converter agrees to waive its right to receive the payment of
accrued and outstanding interest under the Notes as of the date of this Agreement. Company shall instruct its transfer agent to
issue the Shares to each Converter as set forth in Schedule A to this Agreement, and the Converter shall separately acknowledge
its Note is fully paid and becomes void upon the receipt of the Shares.

 

2.
Converter Representations. The Company is issuing the Shares to Converter in reliance upon the following representations
made by Converter:

 

(a)
Converter acknowledges and agrees that the Shares are characterized as “restricted securities” under the Securities
Act of 1933 (as amended and together with the rules and regulations promulgated thereunder, the “Securities Act”)
and that, under the Securities Act and applicable regulations thereunder, such securities may not be resold, pledged or otherwise
transferred without registration under the Securities Act or an exemption therefrom. Investor acknowledges and agrees that (i) the
Shares are being offered in a transaction not involving any public offering in the United States within the meaning of the Securities
Act, and the Shares have not yet been registered under the Securities Act, and (ii) such Shares may be offered, resold, pledged
or otherwise transferred only in a transaction registered under the Securities Act, or meeting the requirements of Rule 144, or
in accordance with another exemption from the registration requirements of the Securities Act (and based upon an opinion of counsel
if the Company so requests) and in accordance with any applicable securities laws of any State of the United States or any other
applicable jurisdiction.

 

(b)
Converter acknowledges and agrees that (i) the registrar or transfer agent for the Shares will not be required to accept
for registration of transfer any shares except upon presentation of evidence satisfactory to the Company that the restrictions
on transfer under the Securities Act have been complied with and (ii) any Shares in the form of definitive physical certificates
will bear a restrictive legend.

 

    	 	1	 

     

    

 

(c)
Converter acknowledges and agrees that: (a) the Shares have not been registered under the Securities Act, or under any state
securities laws, and are being offered and sold in reliance upon federal and state exemptions for transactions not involving any
public offering; (b) Converter is acquiring the shares of Common Stock solely for its own account for investment purposes,
and not with a view to the distribution thereof in a transaction that would violate the Securities Act or the securities laws
of any State of the United States or any other applicable jurisdiction; (c) Converter is a sophisticated purchaser with such
knowledge and experience in business and financial matters that it is capable of evaluating the merits and risks of purchasing
the shares of Common Stock; (d) Converter has had the opportunity to obtain from the Company such information as desired
in order to evaluate the merits and the risks inherent in holding the Shares; (e) Converter is able to bear the economic
risk and lack of liquidity inherent in holding the Shares; and (f)  Converter either has a pre-existing personal or business
relationship with the Company or its officers, directors or controlling persons, or by reason of Investor’s business or
financial experience, or the business or financial experience of their professional advisors who are unaffiliated with and who
are not compensated by the Company, directly or indirectly, have the capacity to protect their own interests in connection with
the purchase of the Shares.

 

(d) Converter’s
investment in the Company pursuant to the Shares is consistent, in both nature and amount, with Converter’s overall investment
program and financial condition.

 

(e)
Converter acknowledges and agrees that each Converter is an “accredited investor” (“Accredited Investor”)
as defined in Regulation D, or a “non-U.S. person” as defined in Regulation S. Such Converter is not required to be
registered as a broker-dealer under Section 15 of the Exchange Act and such Converter is not a broker-dealer, nor an affiliate
of a broker-dealer. The definition of the Accredited Investor is listed as Exhibit B.

 

(f)
Converter, if it is an Accredited Investor, acknowledges and agrees that this Converter indicating that such Converter is an Accredited
Investor, severally and not jointly, further makes the representations and warranties to the Company set forth on Exhibit
B-1.

 

(g)
Converter, if it is a “non-U.S. person”, acknowledges and agrees that each Converter indicating that such Converter
is not a U.S. person, severally and not jointly, further makes the representations and warranties to the Company set forth on
Exhibit B-2.

 

3.
Legend. Each certificate representing the Shares shall be stamped or otherwise imprinted with a legend substantially
in the following form (in addition to any legend required by applicable state securities or “blue sky” laws):

 

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

 

    	 	2	 

     

    

 

Each
certificate representing the Shares, if such securities are being offered to Converter in reliance upon Regulation S, shall be
stamped or otherwise imprinted with a legend substantially in the following form (in addition to any legend required by applicable
state securities or “blue sky” laws):

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES
ACT, AND BASED ON AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT THE PROVISIONS
OF REGULATION S HAVE BEEN SATISFIED, (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS OR (3) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY AN OPINION OF COUNSEL, WHICH
COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY THIS CERTIFICATE
MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

 

The
restrictions on transfer contained in this Section 3 shall be in addition to, and not by way of limitation of, any other restrictions
on transfer contained in any other section of this Agreement. Whenever a certificate representing the Shares is required to be
issued to a Converter without a legend, in lieu of delivering physical certificates representing the Shares (provided that a registration
statement under the Securities Act providing for the resale of the Shares is then in effect), the Company may cause its transfer
agent to electronically transmit the Shares to a Converter by crediting the account of such Converter or such Converter’s
prime broker with the DTC through its DWAC system (to the extent not inconsistent with any provisions of this Agreement).

 

4.
Miscellaneous.

 

(a)
The Agreement shall be construed and enforced in accordance with the laws of the State of New York.

 

(b)
The Agreement constitutes the entire Agreement between the parties and supersedes all prior oral or written negotiations and agreements
between the parties with respect to the subject matter hereof. No modification, variation or amendment of this Agreement (including
any exhibit hereto) shall be effective unless made in writing and signed by both parties.

 

(c)
Each party to the Agreement hereby represents and warrants to the other party that it has had an opportunity to seek the advice
of its own independent legal counsel with respect to the provisions of the Agreement and that its decision to execute the Agreement
is not based on any reliance upon the advice of any other party or its legal counsel. Each party represents and warrants to the
other party that in executing this Agreement such party has completely read this Agreement and that such party understands the
terms of this Agreement and its significance. This Agreement shall be construed neutrally, without regard to the party responsible
for its preparation.

 

(d)
Each party to the Agreement hereby represents and warrants to the other party that (i) the execution, performance and delivery
of the Agreement has been authorized by all necessary action by such party; (ii) the representative executing the Agreement
on behalf of such party has been granted all necessary power and authority to act on behalf of such party with respect to the
execution, performance and delivery of the Agreement; and (iii) the representative executing the Agreement on behalf of such
party is of legal age and capacity to enter into agreements which are fully binding and enforceable against such party.

 

(e)
The Agreement may be executed in any number of counterparts and may be delivered by facsimile transmission, all of which taken
together shall constitute a single instrument.

 

[Intentionally
Left Blank]

  

 

[Signature
Page Follows]

     

     

    

 

This
Agreement is entered into and effective as of the date first written above.

 

	THE COMPANY: 	 
	 	 
	mLight Tech, Inc. 	 
	 	 
	By:	/s/
    Huibin Su	 
	Name:	Huibin Su	 
	Title:	 CEO 	 
	 	 
	CONVERTER: 	 
	 	 
	/s/
    Elsa Sung	 
	Elsa Sung	 
	 	 
	/s/
    Dahuai Zhang	 
	Dahuai Zhang	 
	 	 
	SCI, Inc.	 
	 	 
	By: 	/s/
    William H. Burton	 
	Name: 	William H. Burton	 
	Title:	President	 

 

[Signature
Page to Note Conversion Agreement]

     

     

    

 

SCHEDULE
A TO THE NOTE CONVERSION AGREEMENT

 

	Name of Converter	 	Address of Converter	 	Shares Converted
	SCI Inc.	 	1067 East Highway 24, Woodland Park CO 80863	 	2,500,000
	Elsa Sung	 	401 SW 4th Ave. Apt 208, Fort Lauderdale, FL 33315	 	2,500,000
	Dahuai Zhang	 	104, 1 Block, Yuhuju, Dongjunhaoyuan, Nancheng District, Dongguan City, Guangdong Province, P.R.China	 	8,300,000

 

[Schedule
A to Note Conversion Agreement]

     

     

    

 

EXHIBIT
A TO THE

 

NOTE
CONVERSION AGREEMENT

 

 

 

PROMISSORY
NOTES

 

[Exhibit
A to Note Conversion Agreement]

     

     

    

 

EXHIBIT
B TO THE

 

NOTE
CONVERSION AGREEMENT

 

 

 

DEFINITION
OF “ACCREDITED INVESTOR”

 

The
term “accredited investor” means:

 

	 	1)	A
    bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan association or other institution as defined
    in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered
    pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in Section 2(13) of the Securities
    Act; an investment company registered under the Investment Company Act of 1940 (the “Investment Company Act”)
    or a business development company as defined in Section 2(a)(48) of the Investment Company Act; a Small Business Investment
    Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act
    of 1958; a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state
    or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of US $5,000,000;
    an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”),
    if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings
    and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets
    in excess of US $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited
    investors.

 

	 	2)	A
    private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

 

	 	3)	An
    organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust,
    or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of US
    $5,000,000.

 

	 	4)	A
    director or executive officer of the Company.

 

	 	5)	A
    natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his or her purchase
    exceeds US $1,000,000.

 

	 	6)	A
    natural person who had an individual income in excess of US $200,000 in each of the two most recent years or joint income
    with that person’s spouse in excess of US $300,000 in each of those years and has a reasonable expectation of reaching
    the same income level in the current year.

 

	 	7)	A
    trust, with total assets in excess of US $5,000,000, not formed for the specific purpose of acquiring the securities offered,
    whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) (i.e., a person who has such knowledge
    and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective
    investment).

 

	 	8)	An
    entity in which all of the equity owners are accredited investors. (The Converter, as an entity, must identify each equity
    owner and provide statements signed by each demonstrating how each is qualified as an accredited investor.)

 

[Exhibit
B to Note Conversion Agreement]

 

     

     

    

 

EXHIBIT
B-1 TO THE

 

NOTE
CONVERSION AGREEMENT

 

 

 

EXHIBIT
B-1

ACCREDITED INVESTOR REPRESENTATIONS AND ACKNOWLEDGEMENT

 

ACCREDITED
INVESTOR

CERTIFICATION

 

For
Individual Investors Only

 

(All
individual investors must INITIAL where appropriate. Where there are joint investors both parties must INITIAL):

 

	Initial _________	I certify that I have a “net worth” of at
least $1 million either individually or through aggregating my individual holdings and those in which I have a joint, community
property or other similar shared ownership interest with my spouse. For purposes hereof, “net worth” shall be deemed
to include all of your assets, liquid or illiquid (excluding the value of your principal residence), minus all of your liabilities
(excluding the amount of indebtedness secured by your principal residence up to its fair market value).

  

	Initial _________	I certify that I have had an annual gross income for
the past two years of at least $200,000 (or $300,000 jointly with my spouse) and expect my income (or joint income, as appropriate)
to reach the same level in the current year.

 

[Exhibit B-1 to Note Conversion Agreement]

     

     

    

 

For
Non-Individual Investors

 

(all
Non-Individual Investors must INITIAL where appropriate):

 

	Initial _________	The undersigned certifies that it is a partnership,
corporation, limited liability company or business trust that is 100% owned by persons who meet either of the criteria for Individual
Investors, above.

 

	Initial _________	The undersigned certifies that it is a partnership,
corporation, limited liability company or business trust that has total assets of at least $5,000,000 and was not formed for the
purpose of investing in Company.

 

	Initial _________	The undersigned certifies that it is an employee benefit
plan whose investment decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is a bank, savings and loan
association, insurance company or registered investment adviser.

 

	Initial _________	The undersigned certifies that it is an employee benefit
plan whose total assets exceed $5,000,000 as of the date of the Purchase Agreement.

 

	Initial _________	The undersigned certifies that it is a self-directed
employee benefit plan whose investment decisions are made solely by persons who meet either of the criteria for Individual Investors,
above.

 

	Initial _________	The undersigned certifies that it is a U.S. bank, U.S.
savings and loan association or other similar U.S. institution acting in its individual or fiduciary capacity.

 

	Initial _________	The undersigned certifies that it is a broker-dealer
registered pursuant to §15 of the Securities Exchange Act of 1934.

 

	Initial _________	The undersigned certifies that it is an organization
described in §501(c)(3) of the Internal Revenue Code with total assets exceeding $5,000,000 and not formed for the specific
purpose of investing in Company.

 

	Initial _________	The undersigned certifies that it is a trust with total
assets of at least $5,000,000, not formed for the specific purpose of investing in Company, and whose purchase is directed by
a person with such knowledge and experience in financial and business matters that he is capable of evaluating the merits and
risks of the prospective investment.Initial _________ The undersigned certifies that it is a plan established and maintained
by a state or its political subdivisions, or any agency or instrumentality thereof, for the benefit of its employees, and which
has total assets in excess of $5,000,000.

 

	Initial _________	The undersigned certifies that it is an insurance company
as defined in §2(a)(13) of the Securities Act of 1933, as amended, or a registered investment company.

 

     

     

    

 

EXHIBIT
B-2 TO THE

 

NOTE
CONVERSION AGREEMENT

 

 

 

NON
U.S. PERSON REPRESENTATIONS AND ACKNOWLEDGEMENT FORM

 

Name
of Recipient: Dahuai Zhang

 

MLIGHT TECH, INC.

 

Ladies and Gentlemen:

 

		1.	Converter. I (sometimes referred to herein as the "Converter") hereby agree
to acquire the Shares pursuant to Regulation S from mLight Tech, Inc., a Florida corporation (the "Company”), on the
terms and conditions described herein.

 

		2.	Disclosure. (a) I understand that this offering is made outside the United States
and may not be made to any “U.S. person” as defined in Rule 902(k) under the Securities Act of 1933, as amended (“Securities
Act”) (a “Non-U.S. Person”); (b) The Company may not register any transfer of the Shares not made in accordance
with Regulation S of the Securities Act (“Regulation S”), pursuant to registration under the Securities Act, or pursuant
to an available exemption to registration; provided, however, that if the Shares are in bearer form or foreign law prevents the
Company from refusing to register the Shares transfers, other reasonable procedures are implemented to prevent any transfer of
the Shares not made in accordance with the Provisions of Regulation S.

 

		3.	Converter Representations and Warranties. I acknowledge, represent and warrant to,
and agree with, the Company as follows:

 

		(a)	(i) my principal address is outside the United States, (ii) I was located outside the United States
at the time any offer to buy the Shares was made to me and at the time that the buy order was originated by me, and (iii) I am
not a “U.S. person” (as defined in Rule 902(k) under the Securities Act;

		(b)	Any purchase of the Shares by me will be for my own account or for the account of one or more other
Non U.S. Persons located outside of the United States at the time any offer to buy the Shares was made and at the time that the
buy order was originated by me;

		(c)	I and any accounts for which I am acting are acquiring the Shares for investment purposes and not
with a view to distribution thereof or with any present intention of offering or selling any of the Shares in violation of the
Securities Act;

		(d)	I will not engage in hedging transactions involving the Shares unless in compliance with the Securities
Act;

		(e)	I agree to resell the Shares only in accordance with the provisions of Regulation S pursuant to
registration under the Securities Act, or pursuant to an available exemption from registration;

		(f)	I acknowledge that you, the Company and others will rely upon my confirmation, acknowledgments
and agreements set forth herein and I agree to notify you promptly if any of my representations or warranties herein cease to be
accurate and complete; and
		(g)	I understand that the Company is entitled to rely upon this Acknowledgment and is irrevocably authorized
to produce this Acknowledgment or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

 

[Exhibit
B-2 to Note Conversion Agreement]

     

     

    

 

Date: April 19, 2017

 

/s/ Dahuai Zhang

 

Recipient Signature

 

Dahuai Zhang

 

Recipient Name (Please print)

 

Address to which correspondence should be directed:

 

104.1 Block, yuhujun, Dongjunhaoyuan, nancheng District.
Dongguan City, 

Guangdong Province, P.R. China

 

 

[Exhibit
B-2 to Note Conversion Agreement]

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