Document:

Exhibit 10.22

 

Strategic Cooperation Agreement

 

Between

 

 Tencent Holdings Limited

 

and

 

JD.com, Inc.

 

 

Dated as of March 10, 2014

 

 

 

CONTENT

 

	
1.
    	
Definitions
    	
4
    
	
 
    	
 
    	
 
    
	
2.
    	
Territory of Business Cooperation
    	
5
    
	
 
    	
 
    	
 
    
	
3.
    	
Content of Business Cooperation
    	
5
    
	
 
    	
 
    	
 
    
	
4.
    	
Non-Compete Obligation of Tencent
    	
7
    
	
 
    	
 
    	
 
    
	
5.
    	
Support from JD for Tencent
    	
8
    
	
 
    	
 
    	
 
    
	
6.
    	
Term and Termination
    	
8
    
	
 
    	
 
    	
 
    
	
7.
    	
Intellectual Property
    	
9
    
	
 
    	
 
    	
 
    
	
8.
    	
Force Majeure
    	
9
    
	
 
    	
 
    	
 
    
	
9.
    	
Confidentiality
    	
10
    
	
 
    	
 
    	
 
    
	
10.
    	
Tax
    	
10
    
	
 
    	
 
    	
 
    
	
11.
    	
Representations and Warranties
    	
10
    
	
 
    	
 
    	
 
    
	
12.
    	
Notice and Delivery
    	
11
    
	
 
    	
 
    	
 
    
	
13.
    	
Liability for Breach
    	
12
    
	
 
    	
 
    	
 
    
	
14.
    	
Governing Law and Dispute Resolution
    	
12
    
	
 
    	
 
    	
 
    
	
15.
    	
Miscellaneous
    	
13
    

 

 

This Strategic Cooperation Agreement (this “Agreement”) is entered into on March 10, 2014 by and between:

 

Party A:                          Tencent Holdings Limited, an exempted company registered under the laws of the Cayman Islands (together with its Affiliates, collectively, “Tencent”), with the registered address at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands;

 

Party B:                          JD.com, Inc., an exempted company registered under the laws of the Cayman Islands (together with its Affiliates, collectively, “JD”), with the registered address at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.

 

Each of the parties above is hereinafter referred to as a “Party” and collectively as the “Parties”.

 

WHEREAS:

 

1.              Tencent is one of the well-known integrated internet service providers in China and provides users with comprehensive online services through QQ, Weixin, and QQ.com etc.;

 

2.              JD is one of the well-known internet e-commerce service companies in China and is mainly engaged in the direct sales e-commerce business and e-commerce platform business through its official website http://www.jd.com and its mobile APPs;

 

3.              the Parties have entered into a Share Subscription Agreement and other related agreements on March 10, 2014, pursuant to which Party A transfers its e-commerce platform business, the logistics assets and other related assets, as well as a 9.9% equity interest in Shanghai Icson E-Commerce Development Company Limited controlled by Party A and entering into this Agreement and other cooperation agreements as the consideration for certain shares of Party B that would result in Party A becoming one of Party B’s shareholders and entering into the Thirteenth Amended and Restated Shareholders Agreement (together with all the aforesaid documents , the “Transaction Documents”) with other related parties.

 

4.              the Parties desire to cooperate with each other in the Physical Goods e-commerce business to integrate relevant resources and take advantage of the Parties’ respective strengths, in accordance with the terms and conditions set forth in this Agreement. The Parties understand that this Agreement is a business cooperation framework agreement and the details of such cooperation shall be subject to further negotiation and implementation by the staff of the Parties after the execution of this Agreement.

 

THEREFORE, the Parties hereby agree as follows:

 

 

1.                  Definitions

 

In this Agreement, the following terms shall have the following meaning:

 

(1)             an “Affiliates” or “Affiliates” means, with respect to any company (or any other entity), any other companies that controls, is controlled by the subject company or together with the subject company jointed controlled by any third party.  “Control” means the company owns more than 50% of the equity interests or voting rights of such subject company (or any other entity), or has an actual discretion or controlling power over the operation of such subject company by entry into contractual arrangements or by other means. With respect to any Party, its Affiliates mean the subsidiaries, whether directly or indirectly owned, that are controlled by it (including the subsidiaries controlled through VIE structure).  However, the Affiliates of Party A do not include China Business Infinite Co., Ltd. and its Affiliates (collectively, “Maimaibao”).

 

(2)             “E-Commerce Platform Business” means any business of a company to provide e-commerce online services for any other transaction parties by virtue of its own e-commerce platform.

 

(3)             “Self-operated Business” means any business of a company to directly engage in B2C sales of commodities by virtue of its own online platform.

 

(4)             “Physical Goods” means physical goods in contrary to virtual commodities, for the avoidance of doubt, excluding the document of title or service certificate such as lottery, movie ticket, Q-coin card etc.

 

(5)             “Weixin”, for the purpose of this Agreement, means Weixin (微信) in all languages excluding WeChat.

 

(6)             “Mobile QQ”, for the purpose of this Agreement, means the Mobile QQ in all languages.

 

(7)             “Icson” means Shanghai Icson E-Commerce Development Company Limited and any of its subsidiaries, as well as its businesses conducted through the website of “http://www.yixun.com”.

 

(8)             “Force Majeure” means the events that is unforeseeable by either Party by the time of the execution of this Agreement and cannot be controlled, avoided, overcome or solved by either Party, which takes place after this Agreement comes into effect and interferes with the performance or partial performance by any Party to this Agreement, including but not limited to earthquake, typhoon, flood, war, overseas or domestic traffic interruption, acts of governmental authorities, etc. In avoidance of doubt, only an event that is incontrollable, unavoidable, insurmountable and unsolvable for both Parties constitutes Force Majeure, otherwise it cannot be so regarded.

 

(9)             “China” or “PRC” means the People’s Republic of China excluding, only for the purposes of this Agreement, the Hong Kong Special Administrative Region, the 

 

 

Macao Special Administrative Region and Taiwan.

 

2.                  Territory of Business Cooperation

 

Unless otherwise provided in the specific sections of this Agreement, the territory of cooperation and/or restriction under this Agreement shall be limited to the mainland of PRC, the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan.

 

3.                  Content of Business Cooperation

 

The Parties agree, during the Cooperation Term as provided herein, to procure their respective Affiliates to cooperate with each other, based on the following principles and in the following business areas in relation to the Physical Goods e-commerce business as follows:

 

3.1           Principle of Preferred Cooperation

 

Unless otherwise provided herein, Tencent shall ensure that in the fields of material cooperation in the Physical Goods e-commerce business, JD shall be the preferred partner to Tencent and shall rank higher than any third party company.

 

3.2           Cooperation between JD and Weixin and Mobile QQ

 

(a)             Traffic Entrance of Weixin.  JD will be entitled to a traffic entrance for its own Physical Goods e-commerce business on the interfaces of Weixin as mutually agreed. Specifically, such traffic entrance on the level one entrance interface of Weixin shall be the only traffic entrance of Weixin’s level one entrance provided to third party companies in Physical Goods e-commerce.

 

(b)             Traffic Entrance of Mobile QQ.  JD will be entitled to a traffic entrance for its own Physical Goods e-commerce business on the interfaces of Mobile QQ as mutually agreed.

 

(c)              Each cooperation term under paragraphs (a) and (b) above shall be five years commencing from the date when any JD product is officially launched on Weixin.

 

(d)             Weixin Public Accounts.  With respect to the utilization of Weixin’s public accounts granted to JD, Tencent shall give preferential treatment to JD, including but not limited to, sending consumer service information, order status and promotion information to users.  Furthermore, either Party shall cooperate with each other in making further developments and optimizing users’ experience.

 

(e)              Physical Goods e-commerce business on Weixin.  JD will cooperate and develop mutually beneficial business relationships with the online merchants who are operating such Physical Goods e-commerce business on Weixin.

 

 

3.3           Cooperation between JD and Tencent on mobile-related products

 

(a)             Mobile QQ Browser.  Tencent shall give JD a fixed traffic entrance for its Physical Goods e-commerce business on the navigation page of the Mobile QQ Browser (including “酷站”).  If product upgrades thereafter incurred any changes in the browser’s interface, Tencent shall provide a similar entrance to JD.

 

(b)             Mobile “QQ.com”.  Tencent shall give JD a traffic entrance for its Physical Goods e-commerce business on Mobile “QQ.com” (WAP).

 

3.4           Cooperation between JD and Tencent on Social Networking Services (“SNS”)-related products

 

(a)             SNS Products: Qzone, Tencent Weibo, etc. The Parties will jointly explore in-depth cooperation in relation to Tencent’s SNS products.

 

(b)             Portal Websites: QQ.com. Both Parties will jointly explore in-depth cooperation in relation to Tencent’s portal websites

 

(c)              Search Business: The Parties understand that Tencent’s current search business is not directly operated by Tencent but each Party agree to cooperate with each other in the Physical Goods e-commerce business in relation to Tencent’s search business to the extent practicable.

 

3.5           Cooperation in Member Systems between JD and Tencent

 

(a)             Preferred Cooperation in User Accounts.  Based on the purpose of optimizing user experience, Tencent shall be the preferred partner in the usage of Weixin/QQ user accounts in JD’s own user accounts system and social networking system.

 

(b)             Mutual Convertibility of Point Reward and Leveling-up Value.  JD shall provide QQ users the functionality on its platform to exchange QQ-points or Q-coins to Jingdong point rewards (such as, “Jing-beans”), as well as leveling-up value of JD members into a certain proportion leveling-up value of QQ members.

 

(c)              Cooperation in QQ Mail.  Under the condition of ensuring user experience and compliance with Tencent’s relevant policy on protecting users’ personal information, Tencent shall satisfy the requirements from JD regarding order fulfillment/customer service e-mails, and agrees to provide preferential treatment to JD in terms of the volume and format of promotional e-mails.

 

3.6           Cooperation in Payment

 

Both Parties agree to conduct in-depth cooperation in the field of payment, and maximally optimize and integrate the current resources possessed by each Party. Both Parties shall specify the details of such cooperation through further negotiations.

 

3.7           Cooperation in Virtual Goods E-Commerce Platform

 

(a)             Both Parties shall continue to operate their respective virtual goods E-Commerce 

 

 

Platform Business separately.

 

(b)             The game cards and Q-coins operated by Tencent are entitled to be sold on JD’s platform.

 

3.8           Internet Traffic Support

 

To continue to support the Physical Goods e-commerce businesses of both Parties, during the Cooperation Term specified hereof, Tencent agrees to provide JD strategic support with traffic in the following aspects:

 

(a)             QQ PC Client and AIO (mini version of home page).  Tencent shall reassign positions on the respective interfaces to Icson, Paipai, 网购, and JD from where Tencent assigns to Icson, Paipai and 网购 currently.

 

(b)             QQ PC Client Popup (Tips).  Tencent agrees to provide JD with promotional and support services through popup messages in relation to JD and its products and services.

 

(c)              QQ.com Advertisement.  Tencent agrees to provide JD with advertisement spots through QQ.com every year.

 

(d)             “广点通” Advertising Resources.  Tencent agrees to provide JD with advertising resources related to “广点通”.  The allocation quota of such advertising resources between PC and mobile client will be negotiated by both Parties in the future.

 

(e)              In respect of other Tencent products and services than those set forth in the above Section 2.8(a) to Section 2.8(d), both Parties shall endeavor to cooperate and maintain the support provided to the existing Physical Goods e-commerce business of Tencent

 

(f)               JD APP.  During the Cooperation Term specified hereof, Tencent shall provide the JD APP with activation support.

 

(g)              Advertising Sales Agent.  Both Parties agree that considering that JD will become the advertising sales agent for the merchants on its E-mall platform with respect to place advertisements through “广点通”, Party A agrees to pay sales commission to JD with respect to such advertising sales.

 

(h)             JD has the right to allocate the above traffic support provided by Tencent across all of its business sectors in accordance with its specific business requirements.

 

4.                                      Non-Compete Obligation of Tencent

 

Subject to the scope, territory and exceptions as mutually agreed by both Parties and 

 

 

during the Cooperation Term specified hereof and within three year upon the expiry of the Cooperation Term (“Non-Compete Period”), in consideration of the cooperative relationship with JD, Party A and its Affiliates (excluding Icson) agree to disengage in direct sales or proactively-managed platforms operation models in the Physical Goods e-commerce business (meaning the three products and operation models similar to JD, Paipai and QQ网购 on both of Internet and mobile platforms).

 

5.                                      Support from JD for Tencent

 

Both Parties agree to conduct business cooperation during the Cooperation Term specified hereof. Party B shall, and shall procure any of its Affiliates to provide according support for Tencent in the fields of information sharing.

 

6.                                     Term and Termination

 

6.1                              This Agreement shall be effective upon the execution by the authorized representatives of the Parties and shall be automatically terminated upon the expiration of the Cooperation Term as provided in Section 6.2 hereof.

 

6.2                              The business cooperation term set forth in this Agreement shall commence from April 1, 2014 and end on March 31, 2019 (the “Cooperation Term”), and may be extended upon the mutual agreement of the Parties after expiration.  Notwithstanding the foregoing, if there is any other specific provision(s) on the Cooperation Term with respect to any specific item in this Agreement, such specific provision shall prevail.

 

6.3                              This Agreement may be terminated upon any of the following conditions:

 

(1)         Consensus by both Parties through negotiations; or

(2)         The Parties failing to enter into the Transaction Documents or complete the closing of the transaction as contemplated thereunder for any reasons whatsoever, and thus Party A notifies Party B in writing to require the termination of this Agreement;

 

6.4                              If this Agreement expires or is terminated pursuant to Section 6.3, the Parties shall cease to perform this Agreement, provided that, Sections 9, 13 and 14 hereof shall survive the termination of this Agreement. In addition, Party A shall continue to perform its non-compete obligation as set forth in Section 4 herein within the Non-Compete Period after the expiration of this Agreement.  If any Party is in breach of any provision(s) as set forth herein prior to the expiration or termination of this Agreement, such Party shall bear the liability for breach pursuant to Section 13 hereof. Other post-termination arrangements and matters shall be arranged and resolved through friendly negotiation between the Parties.

 

6.5                              The Parties agree, if any product or business of Tencent involved in this Agreement is entirely or partly sold to a third party (excluding the inter-group transfer within the group of Tencent), the rights and obligations of each Party 

 

 

as provided herein in connection with the sold product or business shall be assumed by such third party. If such third party declines to assume the responsibility and liability as described herein which affects the selling of such product or business as well as Tencent’s obligations hereunder , both Parties shall negotiate to reach a resolution.

 

7.                                     Intellectual Property

 

7.1                              The title to and ownership of any material, information and the intellectual properties contained therein or attached thereto, as respectively provided for the purpose of this Agreement by each Party and its Affiliates to the other Party, shall not be changed due to the cooperation as contemplated hereunder, unless the concerned Party or Parties enter into any other specific agreement on transfer of intellectual properties.

 

7.2                              Unless otherwise specifically stipulated in this Agreement or the concerned Party or Parties has/have entered into any specific agreement on authorization or licensing of intellectual properties, without the prior written consent by the Party who holds the right to such intellectual properties, any Party (and its Affiliates) shall not, without authorization, use or duplicate the other Party’s (and its Affiliates’) patents, trademarks, names, logos, business information, technologies and other data information, domain names, copyrights or other intellectual properties, or apply for registration of any intellectual properties that are similar to the foregoing intellectual properties.

 

7.3                              The title to and ownership of any new intellectual properties that are generated in the course of the business cooperation between both Parties (and their Affiliates) under this Agreement shall be otherwise determined by both Parties specifically.

 

7.4                              During the course of the business cooperation under this Agreement, in the event that any Party (including its Affiliates) infringes upon the intellectual properties or other legitimate rights of the other Party (including its Affiliates); or the products, services, materials provided by such Party infringe upon the intellectual properties or other legitimate rights of any third party, any of which consequently results in any losses or damage to the other Party (including its Affiliates), such infringing Party shall indemnify the damaged Party for any such loss.

 

8.                                     Force Majeure

 

In case of any Force Majeure that results in any delay of the performance by any Party of any contractual obligations hereunder, such delayed Party shall not be deemed as breaching this Agreement and consequently shall not be held liable for indemnify any losses and damage thus incurred, provided that such Party shall make its efforts to eliminate the cause of such delay and make its best endeavors (including but not limited to seeking for or utilizing alternative tools or methods) to remove the damages caused by such Force Majeure, and then inform the other Party of the fact of such Force Majeure and any possible damages the other Party may incur, within fifteen (15) 

 

 

Business Days after the day when such cause of Force Majeure has been eliminated.  During the period of such delay of performance, the Party confronting the Force Majeure shall take reasonable substitutes or adopt other alternatives that are commercially reasonable so as to perform its obligations hereunder until the removal of such delay.

 

9.                                     Confidentiality

 

The Parties hereby acknowledge and agree that any and all materials, whether in an oral form or in writing, as provided and exchanged for the purpose of this Agreement, this Agreement and the terms hereof, shall be deemed as confidential information.  Either Party shall maintain the confidentiality of such confidential information, and without the prior written consent of the other Party, shall not disclose any confidential information to any third party, except for the following circumstances: (1) such confidential information is or has become generally available to the public (other than as a result of any unauthorized disclosure by a Party receiving such materials or any of its Affiliates or employees; (2) disclosure of such confidential information is statutorily required by any applicable laws, any competent governmental authority, any regulatory agency of security or stock exchange, or any rules and regulations of the relevant stock exchange (provided however that, under such scenario, to the extent as permitted by the applicable laws, the Party disclosing such materials shall give a prior notice to the other Party and then both Parties shall reach consensus through consultations as to the scope and content to be disclosed); or (3) disclosure of any confidential information made by a Party to its attorneys or financial advisors for the business cooperation as contemplated hereunder, provided that the foregoing persons shall abide by the similar confidentiality obligation as provided in this Section. Furthermore, each Party hereby undertakes that it shall use the foregoing confidential information as provided by the other Party only for the purpose as set forth in this Agreement, and shall destroy or surrender such confidential information at the request of the other Party upon the termination of this Agreement. Any violation of this Section 9 by any Party, any of its Affiliates, any of its employees or its engaged intermediary agency of any Party or its Affiliates, shall be deemed as a violation by such Party, and such breaching Party shall assume any liability arising from such violation. This Section shall survive the voidness, rescindment or termination of this Agreement for any reason whatsoever.

 

10.                              Tax

 

The Tax incurred arising from the execution and performance of this Agreement shall be assumed by each Party respectively.

 

11.                              Representations and Warranties

 

11.1                       Each Party represents and warrants to the other Party as follows:

 

(1)                       it is a duly established and validly existing company;

(2)                       it has the right to enter into this Agreement and its authorized representative has been fully authorized to execute this Agreement;

(3)                       its execution, delivery and performance of this Agreement is/will not be required to be filed with or notified to any governmental authority, and

 

 

is/will also not be subject to any license, permit, consent or other approval of any governmental authority or any other parties; and

(4)                       it has the capacity to perform its obligations set forth herein and such performance of its obligations does not violate its Articles of Associations or other constitutional documents.

 

11.2                                 Where any legal document executed by any Party prior to the execution of this Agreement conflicts with any provision herein, such Party shall give immediate written notice to the other Party based on the principle of bona fide, good faith and friendship and both Parties shall resolve the problem through consultation. If the conflicts between the former legal document of any Party and this Agreement results in any loss of the other Party, such Party shall be held liable for any responsibility arising from the breach of this Agreement.

 

11.3                                 If any Party, during the performance of its obligations hereunder, finds that such performance is subject to the license, consent or approval of any third party, such Party shall notify the other Party within thirty (30) days from its knowledge of such matter, and shall make its best endeavors to obtain such license, consent or approval from such third party. If such Party fails to obtain such license, consent or approval within a reasonable time period, the relevant party shall provide a solution on such matter which is acceptable to the other party.

 

12.                              Notice and Delivery

 

12.1                       All notices and other communications required or given hereunder shall be delivered to the following addresses by hand, registered mail, prepaid post or business courier or facsimile. Each notice shall be delivered by e-mail once again. The date of the notice that can be deemed as validly delivered shall be determined as follows:

 

(1)                       if the notice is sent by hand, business courier, registered mail, or prepaid post, the notice shall be deemed as valid delivery on the date when it is received or rejected by the address as set forth below;

 

(2)                       if the notice is sent by facsimile, the notice shall be deemed as valid delivery on the date when it is transmitted successfully (shall be proved by the automatically generated information of such successful transmission).

 

12.2                       For the purpose of notice, the address of the Parties are set forth as follows:

 

Party A:

Level 29, Three Pacific Place

1 Queen’s Road East

Wanchai, Hong Kong

Attention: Corporate Counsel

Telephone: +852 3148 5100 Ext: 68805

Facsimile: +852 2520 1148

 

 

with a copy to:

Tencent Building

Kejizhongyi Avenue, Hi-tech Park

Nanshan District, Shenzhen

518057, People’s Republic of China

Attention: General Counsel

Telephone: +86 755 8601 3388 (Ext: 82238)

Fax No.: +86 755 8601 3090 (Ext: 82238)

Attention: General Manager, M&A

Telephone: +86 755 8601 3388 (Ext: 88978)

Fax No.: +86 755 8601 3078

 

Party B:

Address:         10th Floor, Building A, North Star Century Center, No. 8 Beichen West Road, Chaoyang District, Beijing, the People’s Republic of China

Attention: General Legal Counsel

Telephone:  +8610 58955500

 

12.3                       Either Party may change the address for receiving notice at any time by giving a writing notice of such change to the other Party.

 

13.                              Liability for Breach

 

13.1                       If any Party is in breach of any provision of this Agreement and causes losses to the other Party, such Party shall bear the liability for breach in accordance with the applicable laws and the Transaction Documents.

 

13.2                       The Parties understand and agree that they enter into this Agreement for and on behalf of themselves and their Affiliates, and have the obligation to procure and ensure their Affiliates to comply with and perform this Agreement.

 

14.                              Governing Law and Dispute Resolution

 

14.1                       The execution, validity, interpretation, performance, amendment and termination, and dispute resolution of this Agreement shall be governed by the laws of Hong Kong.

 

14.2                       Any dispute arising from the interpretation and performance of this Agreement shall be settled by friendly negotiation between the Parties. If the dispute has not been resolved within 30 days after one Party gives a written notice to the other Party requesting negotiation, the dispute shall be submitted by any Party to the Hong Kong International Arbitration Centre to be settled by arbitration under its arbitration rules in force. The arbitration proceedings shall be conducted in Hong Kong. The language used shall be English. The arbitration award is final and binding on each Party.

 

14.3                       In the event that any dispute arising out of the interpretation and performance 

 

 

of this Agreement or any dispute is under arbitration, the Parties shall continue to exercise their respective rights and perform their respective obligations under this Agreement except for the matters in dispute.

 

15.                              Miscellaneous

 

15.1                       Any amendment or supplementary to this Agreement shall be made in writing. Any amendment agreement or supplementary agreement duly executed by the Parties shall be an integral part of this Agreement and have equal legal effect with this Agreement.

 

15.2                       No Party may assign this Agreement and its rights and obligations hereunder to a third party without the prior written consent of the other Party. However, it may designate its eligible Affiliates to perform certain cooperation matters as the case may be.

 

15.3                       During the term of this Agreement, no Party shall publish negative comments on the other Party on any public occasion, including but not limited to company image, company brands, the design, development and application of products, operation strategy, and all other information relating to the company and products.

 

15.4                       Upon the effectiveness of this Agreement, it shall constitute an entire agreement of the Parties on the subject matter hereof and supersede all the prior oral or written agreements or promises of the Parties on the subject matter hereof.

 

15.5                       In the event of any provision contained herein is held invalid, illegal or unenforceable, the validity, legality and enforceability of the other provision shall not be affected. As to the provisions held as invalid, illegal or unenforceable, the Parties shall manage it through friendly consultation based on the principle that they shall realize the original commercial intent as close as possible.

 

15.6                       The Parties agree to jointly set up a cooperation committee upon the execution of this Agreement, which shall be responsible for the coordination work regarding the relevant cooperation matters set forth herein during the Cooperation Term. The respective representative of the Parties in the cooperation committee shall be Richard Liu and Martin Lau. The cooperation Committee will establish product and technology cooperation group which intend to invite Xiaolong Zhang from Party A and other person in charge of cooperation departments and hold meetings regularly (monthly or bimonthly) to discuss how to improve the working results of cooperation by the Parties.

 

15.7                       This Agreement is executed in 4 originals and each party shall hold 2 originals, each of which has equal legal effect.

 

-The remainder of this page is intentionally left blank-

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above written.

 

 

	
 
    	
TENCENT HOLDINGS LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhidong Zhang
    
	
 
    	
Name:
    	
Zhidong Zhang
    

 

Signature Page to Strategic Cooperation Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above written.

 

 

	
 
    	
JD.com, Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Qiangdong Zhang
    
	
 
    	
Name:
    	
Qiangdong Zhang
    

 

Signature Page to Strategic Cooperation AgreementExhibit 10.8

 

 

MASTER ESCROW AGREEMENT

 

This MASTER ESCROW AGREEMENT, dated as of March [·], 2014 (together with Schedule A and each certificate that is delivered from time to time pursuant to this Agreement as contemplated by Schedule B-1 and Schedule B-2 hereto, this “Agreement”), is by and among FANTEX, INC., a Delaware corporation, with principal offices located at 330 Townsend Street, Suite 234, San Francisco, CA 94107 (the “Company”); AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, a New York limited liability trust company, with principal offices located at 6201 15th Avenue, Brooklyn, New York, 11219 (“Escrow Agent”); FANTEX BROKERAGE SERVICES, LLC, a Delaware limited liability corporation (the “Underwriter”); and WELLS FARGO BANK, NATIONAL ASSOCIATION, with principal offices located at 400 Hamilton Ave, Suite 210, Palo Alto, CA 94301 (the “Bank”). Each of the Company, the Escrow Agent, the Underwriter and the Bank are sometimes referred to herein as a “Party” and together as the “Parties.”

 

WHEREAS, the Company intends to offer from time to time on a best efforts, all or none basis (each, an “Offering”), a number of shares (to be determined with respect to each Offering) of one or more series of the Company’s Convertible Tracking Stock, par value $0.0001 per share (each, a “Tracking Stock”) pursuant to one or more registration statements on Form S-1 under the Securities Act of 1933, as amended (the “Act”), filed with the Securities and Exchange Commission (the “Commission”) (each, a “Registration Statement”);

 

WHEREAS, with respect to each Offering the Company will deliver a certificate in substantially the form attached hereto as Schedule B-1 and the Underwriter will deliver a certificate in substantially the form attached hereto as Schedule B-2 (together, the “Certificates”), setting forth, among other things, with respect to each Offering (i) the designated name of the Tracking Stock being offered pursuant to the Registration Statement relating to such Offering (with respect to each Offering, the “Series”), (ii) the number of shares of such Series that are being offered (with respect to each Offering, the “Shares”), (iii) the Offering Price per Share (with respect to each offering, the “Offering Price”) and (iv) the minimum number of Shares to be sold, which amount for each Offering shall be an amount equal to the number of Shares being offered as set forth in the the Registration Statement (the “Minimum Amount”);

 

WHEREAS, the Underwriter is a registered broker-dealer and operates an alternative trading system, registered with the Commission, and is the exclusive broker-dealer for executing trades in any Series;

 

WHEREAS, qualified investors in an Offering (“Investors”) will be required to open a brokerage account with the Underwriter (each a “Brokerage Account” and together the “Brokerage Accounts”), prior to placing an order for Shares of any Series in an Offering (referred to by the Underwriter as submitting a reservation for shares);

 

1

 

WHEREAS, prior to the time that the Underwriter confirms an order (referred to by the Underwriter as accepting a reservation) an Investor must have deposited sufficient funds in their Brokerage Account to cover the purchase price for the Shares specified in their reservation;

 

WHEREAS, in order to comply with Rule 15c2-4 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company and the Underwriter would like to establish separate Escrow Funds (as defined below) pursuant to this Agreement for each Offering; and

 

WHEREAS, promptly after the applicable Reservation Acceptance (as defined below) the Underwriter will deposit any proceeds that have previously been placed into a Brokerage Account by an Investor to the extent such proceeds would cover the purchase price for the Shares specified in the notice provided at the Reservation Acceptance (with respect to such Offering, the “Proceeds”), and the Proceeds shall be held in escrow by the Bank and Escrow Agent until the applicable Termination Date (as defined below).

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, for themselves, their successors and assigns, hereby agree as follows:

 

1.                                      Definitions.  The following terms shall have the meanings indicated or referred to below, inclusive of their singular and plural forms, except where the context requires otherwise.  Unless the context requires otherwise, all references to “years,” “months,” or “days” shall mean “calendar years,” “calendar months,” and “calendar days.”  References in this Agreement to “including” shall mean “including, without limitation,” whether or not so specified.  Any term not defined below which is initially capitalized in this Agreement shall have the meaning ascribed to it in this Agreement.

 

“Affiliate” means, with respect to any person, (a) a person which directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with such person, (b) any person of which such person is the beneficial owner of a twenty-five percent (25%) or greater interest, or (c) any person which acquires all or substantially all of the assets of such person.  A person is deemed to control another person if such person, directly or indirectly, has the power to direct the management, operations or business of such person.  The term “beneficial owner” is to be determined in accordance with Rule 13d-3 of the Exchange Act.

 

“Business Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close.

 

“Closing” shall mean each closing conducted by the Company and the Underwriter with respect to the sale of a Series pursuant to a Registration Statement that has been declared effective by the Commission.

 

“Effective Time” shall mean, with respect to a Registration Statement relating to an Offering, the time when such Registration Statement has been declared effective by the

 

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Commission.

 

“Escrow Funds” shall mean with respect to any Offering the Proceeds deposited with Escrow Agent pursuant to Section 3 of this Agreement (it being understood and agreed that any interest thereon is not included within the Escrow Funds but rather is payable to the Underwriter, for the benefit of the Investors, as specified in Section 6).

 

“Joint Written Direction” shall mean (i) with respect to any Offering a written direction executed and delivered by the Company and the Underwriter, directing the Bank and Escrow Agent to disburse all or a portion of the Escrow Funds relating to such Offering or (ii) any other written direction executed and delivered by the Company and the Underwriter otherwise directing any Party hereto to take or refrain from taking an action pursuant to this Agreement.  Any Joint Written Direction relating to a disbursement of an Escrow Fund shall certify with reasonable detail satisfactory to Escrow Agent in its sole discretion (i) that the Underwriter has received and accepted reservations for the Minimum Amount with respect to such Offering (and the related Proceeds have been deposited in the applicable Escrow Fund) and (ii) the Company’s instructions as to the payment of the applicable Proceeds.  Each Joint Written Direction shall be accompanied by executed and completed certificates in substantially the form of Schedule B-1 and Schedule B-2 hereto.

 

“Reservation Acceptance” shall mean, with respect to an Offering, the time at which the Underwriter receives and elects to accept reservations for the Minimum Amount, which time shall be no sooner than three days following the Effective Time.

 

“Termination Date” shall mean, with respect to an Offering, the earlier of (i) the date on which the Underwriter has received and accepted reservations for the Minimum Amount with respect to such Offering (and the related Proceeds have been deposited in the applicable Escrow Fund and have cleared) or (ii) 5:00 p.m. New York City time on the 30th day following the applicable Effective Time.

 

2.                                      Appointment of Escrow Agent.  The Company and the Underwriter hereby appoint Escrow Agent as escrow agent in accordance with the terms and conditions set forth herein, and Escrow Agent hereby accepts such appointment.

 

3.                                      Delivery of Proceeds.  With respect to each Offering, from and after the applicable Reservation Acceptance through the applicable Termination Date, all checks, drafts, or other instruments or wire transfer funds received from the Investors as payment for the applicable Shares will be promptly delivered by the Underwriter to Escrow Agent for deposit with the Bank in accordance with Section 4 below.  All checks, drafts or other instruments (as the case may be) will be made payable to “American Stock Transfer & Trust Company, LLC, as Escrow Agent for Fantex, Inc.” All wires will be transmitted as specified on Schedule A.

 

4.                                      Escrow Agent to Hold and Disburse Escrow Funds.  The Bank and Escrow Agent will hold all Escrow Funds in a segregated Bank account titled in the name of Escrow Agent

 

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and established for the benefit of any Investors, the Company and the Underwriter, and disburse all Escrow Funds as follows:

 

(a)                     If, prior to the applicable Termination Date, the Bank has received applicable Escrow Funds equal to or greater than Proceeds from the sale of the applicable Minimum Amount of Shares relating to such Offering (and the related Proceeds have been deposited in the applicable Escrow Fund and have cleared), the Bank and Escrow Agent shall, pursuant to and upon receipt of a Joint Written Direction, pay (i) 95% of such Escrow Funds equal to the Proceeds from the sale of the a Minimum Amount of Shares to the Company by same-day transfer of available funds and (ii) the remainder of the applicable Escrow Funds to the Underwriter by same-day transfer of available funds; provided, however, that such same-day transfer must be to an account maintained by the Company and the Underwriter, as applicable, at the Bank, and if the Company or the Underwriter no longer maintains a bank account with the Bank then payment shall be made by the Escrow Agent to such non-Bank account not later than two Business Days after receipt of such Joint Written Direction.

 

(b)                     If the Bank has received applicable Escrow Funds equal to or greater than Proceeds from the sale of the applicable Minimum Amount of Shares relating to such Offering (and the related Proceeds have been deposited in the applicable Escrow Fund and have cleared), but (i) has not within 15 Business Days after the applicable Termination Date received a Joint Written Direction to disburse the funds at Closing, then Bank and Escrow Agent shall return all Escrow Funds to the Underwriter within three Business Days of such 15 Business Day time period or (ii) the Company or the Underwriter notify the Bank and Escrow Agent in writing at any earlier time that no Closing will take place, the Bank and Escrow Agent shall return all Escrow Funds to the Underwriter within three Business Days of such written notification.

 

(c)                      If, prior to the applicable Termination Date, the Bank has not received Escrow Funds at least equal to or greater than Proceeds from the sale of the applicable Minimum Amount of Shares relating to such Offering, the Bank and Escrow Agent shall return all applicable Escrow Funds to the Underwriter within three Business Days after the Termination Date.

 

(d)                     If any amount of Escrow Funds are returned to Escrow Agent as undeliverable following the operation of Section 4(a), Section 4(b) and Section 4(c) above, Escrow Agent, in addition to its other rights herein, (x) (A) may maintain and manage such Escrow Funds for such period of time as it determines may be necessary or appropriate, including in accordance with applicable state escheatment and unclaimed property laws, as determined by Escrow Agent in its sole discretion and (B) shall have the right to escheat any such Escrow Funds pursuant to applicable state escheatment and unclaimed property laws and, in such case, shall remit such Escrow Funds (less any fees, costs, expenses or other amounts due to Escrow Agent or any other Indemnified Party (as defined below) hereunder (to the extent Rule 15c2-4 under the Exchange Act permits) and interest on such Escrow

 

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Funds, which shall be payable in accordance with Section 6 hereof in the case of interest, and otherwise to Escrow Agent or any other Indemnified Party (as defined below) in accordance with this Agreement (including Schedule A hereto)) to any relevant competent authority and (y) may take any other action permitted by this Agreement, including Section 5, Section 7 and Section 10 of this Agreement.

 

All disbursements of Escrow Funds in Section 4(a) (to the Company or the Underwriter) and Section 4(d) above shall be subject to the fees, costs, expenses and other amounts due to Escrow Agent and any other Indemnified Party (as defined below) hereunder.

 

5.                                      Suspension of Performance; Disbursement into Court.  If, at any time, (i) there shall exist any dispute between or among the Company and the Underwriter with respect to the holding or disposition of all or any portion of the Escrow Funds or any other obligations of Escrow Agent hereunder, (ii) Escrow Agent is unable to determine, to Escrow Agent’s sole satisfaction, the proper disposition of all or any portion of the Escrow Funds or Escrow Agent’s proper actions with respect to its obligations hereunder, or (iii) the Company has not, within 30 days of the furnishing by Escrow Agent of a notice of resignation pursuant to Section 7 hereof, appointed a successor escrow agent to act hereunder (which such successor escrow agent has accepted such appointment), then Escrow Agent may, in its sole discretion, take either or both of the following actions:

 

(a)                     suspend the performance of any of its obligations (including any disbursement obligations) under this Agreement until such dispute or uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until a successor escrow agent shall have been appointed (as the case may be).

 

(b)                     petition (by means of an interpleader action or any other appropriate method) any court of competent jurisdiction in any venue convenient to Escrow Agent, for instructions with respect to such dispute or uncertainty, and to the extent required or permitted by law, pay into such court, for holding and disposition in accordance with the instructions of such court, all Escrow Funds, after deduction and payment to Escrow Agent of all fees, costs and expenses (including court costs and expenses and attorneys’ fees) or any other amount payable to, incurred by, or expected to be incurred by Escrow Agent in connection with the performance of its duties and the exercise of its rights hereunder (in each case, to the extent Rule 15c2-4 of the Exchange Act permits).

 

Escrow Agent shall have no liability to the Company or the Underwriter, or to their respective shareholders, partners, or members, officers or directors, employees, Affiliates or any other person with respect to any such suspension of performance or disbursement into court (including any disbursement obligations hereunder), specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of Escrow Funds or any delay in or with respect to any other action required or requested of Escrow Agent.

 

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6.                                      Escrow Funds.  Escrow Agent is herein directed and instructed to hold the Escrow Funds in a demand deposit account and at all times in compliance with Rule 15c2-4 promulgated under the Securities Exchange Act of 1934.  Escrow Agent shall pay to the Underwriter, for the benefit of the Investors, any interest earned on the Escrow Funds.

 

7.                                      Termination of Agreement; Resignation of Agent.  Upon the first to occur of (i) the termination of this Agreement by the Company and the Underwriter and disbursement of all amounts in all Escrow Funds in accordance with this Agreement (including Section 4(d) and the operation of applicable state escheatment and unclaimed property laws) or (ii) the resignation of Escrow Agent and disbursement of all amounts in all Escrow Funds in accordance with this Agreement, Escrow Agent shall be released from its obligations hereunder and Escrow Agent shall have no further obligation or liability whatsoever with respect to this Agreement or the Escrow Funds.  The obligations of the Company continue to exist notwithstanding the termination or discharge of Escrow Agent’s obligations or liabilities hereunder until the obligations of the Company have been fully performed.

 

Escrow Agent may resign at any time and be discharged from its duties as Escrow Agent hereunder by giving the Company and the Underwriter at least ten days’ notice thereof.  Upon any such notice of resignation, the Company and the Underwriter shall jointly issue to Escrow Agent a Joint Written Direction authorizing redelivery of the Escrow Funds to a depository that has been retained as successor to Escrow Agent hereunder prior to the effective date of such resignation.  As soon as practicable after its resignation, Escrow Agent shall turn over to such successor escrow agent all monies and property held hereunder upon presentation of the document appointing the new escrow agent and such escrow agent’s acceptance thereof, and after deduction and payment (to the extent Rule 15c2-4 under the Exchange Act permits) to the retiring Escrow Agent of all fees, costs and expenses (including court costs and expenses and attorneys’ fees) or any other amount payable to, incurred by, or expected to be incurred by the retiring Escrow Agent in connection with the performance of its duties and the exercise of its rights hereunder.

 

After any retiring Escrow Agent’s resignation, the provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Escrow Agent under this Agreement.  Any corporation or other entity into which Escrow Agent may be merged or converted or with which it may be merged or consolidated, or any other entity to which all or a majority of all of Escrow Agent’s escrow business may be transferred by sale of assets or otherwise, shall be Escrow Agent under this Agreement without further act or consent of any Party hereto.

 

8.                                      Liability of Escrow Agent.

 

(a)                     Escrow Agent shall have no duties or responsibilities other than the ministerial duties as expressly set forth herein and no other duties and obligations shall be

 

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implied (fiduciary or otherwise).  Escrow Agent shall have no duty to enforce any obligation of any person to make any payment or delivery, or to direct or cause any payment or delivery to be made, or to enforce any obligation of any person to perform any other act.  Escrow Agent shall be under no liability to the other Parties hereto or to anyone else by reason of any failure on the part of any Party hereto or any maker, guarantor, endorser or other signatory of any document or any other person to perform such person’s obligations under any such document.  Except for amendments to this Agreement referred to below, and except for instructions given to Escrow Agent pursuant to a Joint Written Direction, Escrow Agent shall not be obligated to recognize any agreement between any and all of the persons referred to herein, notwithstanding that references thereto may be made herein and whether or not it has knowledge thereof.  In the event of any conflict between the terms and provisions of this Agreement and any other agreement, as to Escrow Agent, the terms and conditions of this Agreement shall control subject to Section 30 hereof.

 

(b)                     Escrow Agent shall not be liable to the Company or the Underwriter or to anyone else for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that Escrow Agent’s gross negligence or willful misconduct was the primary cause of any loss to the Company or the Underwriter.  In no event shall Escrow Agent be liable for incidental, indirect, special, consequential or punitive damages of any kind whatsoever (including lost profits), even if Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. The officers, directors, members, partners, trustees, employees, agents, attorneys or other representatives and Affiliates of Escrow Agent owe no duty or obligation to any Party hereunder and shall have no liability to any person by reason of any error of judgment, for any act done or not done, for any mistake of fact or law, or otherwise.  Escrow Agent may rely conclusively, and shall be protected in acting, upon any order, notice, instruction (including a Joint Written Direction (such as a wire transfer instruction)), request, demand, certificate, opinion or advice of counsel (including counsel chosen by Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity (including the authority of the person signing or presenting the same) and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained), which is believed by Escrow Agent to be genuine and to be signed or presented by the proper person or persons.  Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement or any of the terms thereof, unless evidenced by a writing delivered to Escrow Agent signed by the proper Party or Parties and, if the duties or rights of Escrow Agent are affected, unless it shall give its prior written consent thereto.

 

(c)                      Escrow Agent shall not be obligated to take any legal or other action or commence any proceeding in connection with the Escrow Funds, any account in which Escrow Funds are deposited, this Agreement or any other agreement, or to appear in, prosecute or defend any such legal action or proceeding (whether or not it shall have been furnished with acceptable indemnification and advancement).  Escrow Agent may consult legal counsel selected by it in the event of any dispute or

 

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question as to the construction of any of the provisions hereof or of any other agreement or of its duties hereunder, or relating to any dispute or question involving any Party hereto, and shall incur no liability and shall be fully indemnified from any liability whatsoever in acting in accordance with the opinion or instruction of such counsel.  The Company shall promptly pay, upon demand, the reasonable fees, costs and expenses of any such counsel.

 

(d)                     Escrow Agent shall not be responsible for the sufficiency or accuracy of the form of, or the execution, validity, value or genuineness of, any document or property received, held or delivered by it hereunder, or of any signature or endorsement thereon, or for any lack of endorsement thereon, or for any description therein; nor shall Escrow Agent be responsible or liable to the other Parties hereto or to anyone else in any respect on account of the identity, authority or rights of the persons executing or delivering or purporting to execute or deliver any document or property or this Agreement.  Escrow Agent shall have no responsibility with respect to the use or application of any Escrow Funds paid by Escrow Agent pursuant to the provisions hereof.  Escrow Agent shall have no duty to solicit any payment which may be due to be paid in Escrow Funds or to confirm or verify the accuracy or correctness of any amounts delivered in accordance with this Agreement or the calculation of the Proceeds from the sale of the Minimum Amount of any Shares in respect to the Escrow Funds.  Escrow Agent shall not be liable to the Company or to anyone else for any loss which may be incurred by reason of any investment of any monies which it holds hereunder.

 

(e)                      Escrow Agent shall have the right to assume in the absence of written notice to the contrary from the proper person or persons that a fact or an event by reason of which an action would or might be taken by Escrow Agent does not exist or has not occurred, without incurring liability to the other Parties hereto or to anyone else for any action taken or omitted, or any action suffered by it to be taken or omitted, in good faith, in reliance upon such assumption.

 

(f)                       Escrow Agent is authorized, in its sole discretion, to comply with orders issued or process entered by any court with respect to the Escrow Funds, without determination by Escrow Agent of such court’s jurisdiction in the matter.  If any portion of the Escrow Funds is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event, Escrow Agent is authorized, in its sole discretion, to rely upon and comply with any such order, writ, judgment or decree which it is advised by legal counsel selected by it is binding upon it without the need for appeal or other action; and if Escrow Agent complies with any such order, writ, judgment or decree, it shall not be liable to any of the Parties hereto or to any other person or entity by reason of such compliance even though such order, writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated.

 

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9.                                      Indemnification of Escrow Agent.  From and at all times after the date of this Agreement, the Company shall, to the fullest extent permitted by law, defend, indemnify and hold harmless Escrow Agent and each director, officer, member, partner, trustee, employee, attorney, agent and Affiliate of Escrow Agent (collectively, the “Indemnified Parties”) against any and all actions, claims (whether or not valid), losses, damages, liabilities, costs, penalties, settlements, judgments and expenses of any kind or nature whatsoever (including costs and expenses and reasonable attorneys’ fees) incurred by or asserted against any of the Indemnified Parties from and after the date hereof, whether direct, indirect or consequential, as a result of, in connection with, or arising from or in any way relating to any claim, demand, suit, action or proceeding (including any inquiry or investigation) by any person, including the Company and/or the Underwriter, whether threatened or initiated, asserting a claim for any legal or equitable remedy against any person (whether it is an Indemnified Party or not) under any statute or regulation, including any federal or state securities laws, or under any common law or equitable cause or otherwise, arising from or in connection with the negotiation, preparation, execution, performance or failure of performance of this Agreement or any transactions contemplated herein or relating hereto (including tax reporting or withholding or the enforcement of any rights or remedies under or in connection with this Agreement), whether or not any such Indemnified Party is a party to any such action, proceeding, suit or the target of any such inquiry or investigation (without derogation of any other indemnity afforded to Escrow Agent); provided, however, that no Indemnified Party shall have the right to be indemnified hereunder for any liability finally determined by a court of competent jurisdiction, subject to no further appeal, to have resulted solely from the gross negligence or willful misconduct of such Indemnified Party. Each Indemnified Party shall, in its sole discretion, have the right to select and employ separate counsel with respect to any action or claim brought or asserted against it, and the reasonable fees, costs and expenses of such counsel shall be paid, upon demand, by the Company.

 

10.                               Fees, Costs and Expenses of Escrow Agent.  The Company shall compensate Escrow Agent for its services hereunder in accordance with Schedule A attached hereto and, in addition, shall reimburse Escrow Agent for all of its reasonable out-of-pocket costs and expenses, including attorneys’ fees, travel expenses, telephone and facsimile transmission costs, postage (including express mail and overnight delivery charges), copying charges and the like.  The additional provisions and information set forth on Schedule A hereto are hereby incorporated by this reference, and form a part of this Agreement.  All of the compensation and reimbursement obligations set forth in this Section 10 shall be payable by the Company upon execution of this Agreement and, in the future, upon demand by Escrow Agent.  Escrow Agent is expressly authorized and directed, but shall not be obligated, to, and may, charge against and disburse to itself (to the extent Rule 15c2-4 under the Exchange Act permits) from the Escrow Funds (including taking such steps as selling any investment held as part of the Escrow Funds), from time to time, the amount of any compensation and reimbursement of any fees, costs and expenses set forth on Schedule A hereto which are due and payable hereunder, including any amount to which Escrow Agent or any other Indemnified Party is entitled to seek indemnification pursuant to Section 9 hereof, or any other amount owing to Escrow Agent hereunder.  Escrow Agent shall notify the Company of any disbursement from the Escrow Funds to itself or any other Indemnified Party in respect of any compensation or reimbursement hereunder

 

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and shall furnish to the Company copies of all related invoices and other statements.  Subject to Rule 15c2-4 under the Exchange Act, the Company hereby grants to Escrow Agent and the other Indemnified Parties a security interest in and lien upon the Escrow Funds (i) for the payment of any fees, costs, expenses and other amounts due to Escrow Agent or any other Indemnified Party hereunder and (ii) to secure any and all obligations of the Company in this Agreement with the right to offset any amount due any of them under this Agreement against the Escrow Funds.  If for any reason funds in the Escrow Funds are insufficient to cover such amount, the Company shall pay, upon demand, such amounts to Escrow Agent or any other Indemnified Party upon receipt of copies of related invoices and other statements.

 

11.                               Representations and Warranties of the Company and the Underwriter.  Each of the Company and the Underwriter severally covenants and makes the following representations and warranties to Escrow Agent as of the Reservation Acceptance for each Offering:

 

(a)                     It is duly organized, validly existing, and in good standing under the laws of the state of its incorporation or organization, and (i) as of the time of execution and delivery of this Agreement had full power and authority to execute and deliver this Agreement, (ii) as of the applicable Reservation Acceptance has full power and authority to execute and deliver the applicable Certificate and (iii) as of the applicable Reservation Acceptance has full power and authority to perform its obligations hereunder and thereunder.

 

(b)                     This Agreement has been duly approved by all necessary action, including any necessary shareholder or membership approval, has been executed by its duly authorized officers, and constitutes its valid and binding agreement enforceable in accordance with its terms.

 

(c)                      The execution, delivery, and performance of this Agreement is in accordance with the agreements related to the applicable Offering and will not violate, conflict with, or cause a default under its articles of incorporation, bylaws, management agreement or other organizational document, as applicable, any applicable law, rule or regulation, any court order or administrative ruling or decree to which it is a party or any of its property is subject, or any agreement, contract, indenture, or other binding arrangement, including the agreements related to the applicable Offering, to which it is a party or any of its property is subject.

 

(d)                     Escrow Agent is appointed to act as agent only for the limited purposes set forth in this Agreement; no representation, statement, communication or other suggestion shall be made that Escrow Agent has investigated the desirability or advisability of investment in any Shares or has approved, endorsed or passed upon the merits of purchasing any  Shares; and the name of Escrow Agent has not and shall not be used in any manner in connection with the offering of any Shares other than to state that Escrow Agent has agreed to serve as escrow agent for the limited purposes set forth in this Agreement.

 

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(e)                      No Party other than the Parties hereto has, or shall have, any lien, claim or security interest in the Escrow Funds or any part thereof.  No financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing (whether specifically or generally) the Escrow Funds or any part thereof.

 

(f)                       It possesses such valid and current licenses, certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies necessary to conduct its respective businesses, and it has not received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such license, certificate, authorization or permit.

 

(g)                      All of its representations and warranties contained herein are true and complete as of the date hereof and will be true and complete at the time of any disbursement of Escrow Funds.

 

12.                               Representations and Warranties of the Escrow Agent.  The Escrow Agent covenants and hereby represents and warrants to the Company and the Underwriter as of the Reservation Acceptance of each Offering that it is a duly organized and validly existing “bank” as defined under Exchange Act Section 3(a)(6) and as required under Exchange Act Rule 15c2-4.

 

13.                               Patriot Act Disclosure.  The Company acknowledges that a portion of the identifying information provided to Escrow Agent pursuant to Section 3 hereof is being requested in connection with the USA Patriot Act, Pub.L.107-56 (the “Patriot Act”), and the Company agrees to provide any additional information requested by Escrow Agent in connection with the Patriot Act or any similar law, rule, regulation, order, or other governmental act to which Escrow Agent is subject, in a timely manner and consent to Escrow Agent obtaining from third parties any such identifying information. The Company represents that all identifying information set forth on Schedule A hereto, including its Taxpayer Identification Number assigned by the Internal Revenue Service or any other taxing authority, is true and complete on the date hereof and will be true and complete at the time of any disbursement of any Escrow Funds. For a non-individual person such as a charity, a trust, or other legal entity, Escrow Agent may require documentation to verify formation and existence as a legal entity.  Escrow Agent may also require financial statements, licenses, identification and authorization documentation from any individual claiming authority to represent the entity or other relevant documentation.

 

14.                               Consent to Jurisdiction and Venue. In the event that any Party hereto commences a lawsuit or other proceeding relating to or arising from this Agreement, the Parties hereto agree that the United States District Court for the Southern District of the State of New York shall have the sole and exclusive jurisdiction over any such proceeding.  If such court lacks federal subject matter jurisdiction, the Parties hereto agree that the Supreme Court of the State of New York within New York County shall have sole and exclusive jurisdiction.  Any final judgment shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Any of these courts shall be proper venue for any such lawsuit or judicial proceeding and the

 

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Parties hereto waive any objection to such venue and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit or proceeding in any such court has been brought in an inconvenient forum.

 

The Parties hereto consent to and agree to submit to the jurisdiction of any of the courts specified herein and agree to accept service of process to vest personal jurisdiction over them in any of these courts.

 

Each Party hereto irrevocably and unconditionally waives any right to a trial by jury and agrees that any of them may file a copy of this section of this Agreement with any court as written evidence of the knowing, voluntary and bargained-for agreement among the Parties hereto irrevocably to waive the right to trial by jury in any litigation related to or arising under this Agreement.

 

15.                               Notice.  All notices, instructions (pursuant to a Joint Written Direction or otherwise), approvals, consents, requests, and other communications hereunder shall be in writing and shall be deemed to have been given (a) when such writing is delivered by hand or overnight delivery service, or (b) upon telephone call-back in accordance with Section 16 below, after being sent by e-mail with PDF attachment from the designated e-mail account(s) of the sending person(s) as designated on Schedule A hereto to the designated e-mail account(s) of the receiving person(s) as designated on Schedule A hereto or (c) three (3) Business Days after being mailed by first class mail (postage prepaid), in each case to the address set forth on Schedule A hereto or to such other address as each Party hereto may designate for itself by like notice.

 

16.                               Security Procedures.  If notices, instructions (pursuant to a Joint Written Direction or otherwise), approvals, consents, requests, and other communications, are received by the Bank or Escrow Agent by e-mail at its e-mail account(s) as designated on Schedule A hereto, the Bank and Escrow Agent are authorized, but not required, to seek prompt confirmation of such communications by telephone call-back to the sending person or persons’ telephone number(s) as designated on Schedule A hereto, and the Bank and Escrow Agent may rely upon the confirmation of anyone purporting to be the person or persons so designated in that call-back.  Any e-mail by PDF attachment executed by more than one person shall be sent by each signatory.  The persons and their telephone numbers authorized to receive call-backs as designated in Schedule A hereto may be changed only in a writing actually received and acknowledged by the Bank and Escrow Agent and delivered in accordance with Section 15 above and, if applicable, this Section 16.  If Escrow Agent is unable to contact any such designated person, Escrow Agent is hereby authorized (but not required) both to receive written instructions from and seek confirmation of such instructions by telephone call-back to any one or more of the Company’s or the Underwriter’s executive officers (each, an “Executive Officer”), as the case may be, who shall include individuals holding titles of Vice President or more senior thereto, as Escrow Agent may select.  Such Executive Officer(s) shall deliver to Escrow Agent a fully executed incumbency certificate upon Escrow Agent’s request, and Escrow Agent may rely upon the confirmation of anyone purporting to be any such Executive Officer(s). The Parties to this Agreement acknowledge and agree that the security procedures set forth above are commercially reasonable.

 

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The Bank and Escrow Agent in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided by the Company to identify (i) a beneficiary, (ii) a beneficiary’s bank, or (iii) an intermediary bank.  The Bank and Escrow Agent may apply any of the Escrow Funds for any payment order it executes using any such identifying number, even where its use may result in a person other than a beneficiary being paid, or the transfer of funds to a bank other than a beneficiary’s bank or an intermediary bank designated.

 

17.                               Amendment or Waiver.  This Agreement may be changed, waived, discharged or terminated only by a writing signed by the Parties hereto; provided, however, that the Bank’s signature (agreement) is not required in respect to any change to, waiver of, discharge or termination of any section to which it is not subject.  No delay or omission by any Party hereto in exercising any right with respect hereto shall operate as a waiver.  A waiver on any one occasion shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion.

 

18.                               Severability.  To the extent any provision of this Agreement is prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 

19.                               Governing Law.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of New York without giving effect to the conflict of laws principles thereof.

 

20.                               Entire Agreement.  This Agreement constitutes the entire agreement between the Parties hereto relating to the holding, investment and disbursement of Escrow Funds and sets forth in their entirety the obligations and duties of Escrow Agent with respect to the Escrow Funds.

 

21.                               Continuing Effect.  The terms of this Agreement shall govern the holding, investment and disbursement of Escrow Funds in any Offering by the Company of Shares of Tracking Stock and may be amended or superseded only by a writing signed by each of the Parties hereto.

 

22.                               Binding Effect.  All of the terms of this Agreement, as amended from time to time, shall be binding upon, inure to the benefit of and be enforceable by the respective successors and assigns of the Company, the Bank, Escrow Agent and the Underwriter.

 

23.                               Execution in Counterparts.  This Agreement and any Joint Written Direction may be executed in two or more counterparts, which when so executed shall constitute one and the same agreement or direction.  Subject to Section 15 and Section 16 hereof, this Agreement and any Joint Written Direction may be executed and delivered by e-mailing a PDF version of a signed signature page, which shall have the same force and effect as the delivery of an originally executed signature page.

 

24.                               Dealings.  Escrow Agent and any stockholder, director, officer or employee of Escrow Agent may buy, sell, and deal in any of the securities of the Company and become

 

13

 

pecuniarily interested in any transaction in which the Company may be interested, and contract and lend money to the Company and otherwise act as fully and freely as though it were not Escrow Agent under this Agreement.  Nothing herein shall preclude Escrow Agent from acting in any other capacity for the Company or for any other entity.

 

25.                               Currency.  The currency applicable to any amount payable or receivable under this Agreement is United States dollars.

 

26.                               Late Payment.  If any amount due to Escrow Agent under this Agreement is not paid within 30 days (subject to any longer time period prescribed herein) after notice to the Company (other than any amount that is subject to good faith dispute), the Company shall pay interest thereon (from the due date to the payment date) at a per annum rate equal to ten (10) percent.

 

27.                               Force Majeure.  Notwithstanding anything to the contrary hereunder, Escrow Agent shall not be liable for any delay, failure to perform, or other act or non-act resulting from acts beyond its reasonable control, including acts of God, terrorism, shortage of supply, labor difficulties (including strikes), war, civil unrest, fire, floods, electrical outages, equipment or transmission failures, internet interruption, vendor failures (including information technology providers), and other similar causes.

 

28.                               No Third Party Beneficiaries.  This Agreement and all of its terms and conditions are for the sole and exclusive benefit of the Parties hereto and their respective permitted successors and assigns.  Nothing expressed or referred to in this Agreement will be construed to give any person or entity other than the Parties to this Agreement any legal or equitable rights, remedy, or claim under or with respect to this Agreement or any term or condition of this Agreement.

 

29.                               No Strict Construction.  The Parties hereto have participated jointly in the negotiation and draft of this Agreement.  In the event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if it were drafted jointly by the Parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any Party hereto by virtue of authorship of any provision of this Agreement.

 

30.                               Priority.

 

(a)                     In the event of any conflict between the provisions of Schedule A or any applicable Schedule B-1 or Schedule B-2 hereto and the remainder of this Agreement, this Agreement shall be construed in a manner prescribed by Escrow Agent acting in good faith.

 

(b)                     Nothing contained in this Agreement shall amend, replace or supersede any agreement between the Company and Escrow Agent to act as the Company’s transfer agent, which agreement shall remain of full force and effect.

 

31.                              Headings.  The headings in this Agreement are for convenience purposes and shall be ignored for purposes of enforcing this Agreement, do not constitute a part of this Agreement, and may not be used by any Party hereto to characterize, interpret, limit or

 

14

 

affect otherwise any provision of this Agreement.

 

[signature page follows]

 

15

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the date first above written.

 

 

	
 
    	
FANTEX, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMERICAN STOCK TRANSFER & TRUST COMPANY,   LLC,
    
	
 
    	
as Escrow Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
FANTEX BROKERAGE SERVICES, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, N.A. (solely for purposes of   Sections 3, 4, 14, 15, 16, 17, 19, 21, 22, 23, 25, 27, 28, 29, 30 and 31)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

16

 

SCHEDULE A

 

1.                                     Escrow Funds.(2)

 

Wiring of Escrow Funds from FBS to Escrow Agent:

 

[Re: Account Name, #]

 

 

Wiring of Escrow Funds from Escrow Agent to Company:

 

	
Account   Name:
    	
 
    	
Fantex, Inc.   Operating
    
	
Account   Number:
    	
 
    	
4125076190
    
	
ABA   Routing:
    	
 
    	
121000248
    

 

Wiring of Escrow Funds from Escrow Agent to FBS:

 

	
Account   Name:
    	
 
    	
Fantex   Brokerage Operating
    
	
Account   Number:
    	
 
    	
4945708147
    
	
ABA   Routing:
    	
 
    	
121000248
    

 

2.                                      Escrow Agent Fees.(3)

 

	
One-Time Fees
    	
 
    	
 
    	
 
    
	
Acceptance Fee:
    	
 
    	
$
    	
6,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TOTAL
    	
 
    	
$
    	
6,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Recurring Fees
    	
 
    	
 
    	
 
    
	
Escrow Fee:
    	
 
    	
$
    	
150 per deal
    	
 
    
	
Out-of-Pocket Expenses:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TOTAL
    	
 
    	
$
    	
 
    	
 
    

 

The Acceptance Fee and the Escrow Fee are payable upon execution of this Agreement.  In the event the escrow is not funded, the Acceptance Fee and all related expenses, including attorneys’ fees, costs and expenses remain due and payable, and if paid, will not be refunded.

 

The fees quoted in this schedule apply to services ordinarily rendered in the

 

(2)Note: To Come.

(3)Note: To Come.

 

A-1

 

administration of an escrow account and are subject to reasonable adjustment based on final review of documents, or when Escrow Agent is called upon to undertake unusual or extraordinary duties or responsibilities, or as changes in law, procedures, or the cost of doing business demand.  Services in addition to and not contemplated in this Agreement, including document amendments and revisions, non-standard cash and/or investment transactions, calculations, notices and reports, and legal fees, will be billed as expenses.

 

Unless otherwise indicated, the above fees relate to the establishment of one escrow account.  Additional sub-accounts governed by this Agreement may incur an additional charge. Transaction costs include charges for wire transfers, checks, internal transfers and securities transactions.

 

The fees quoted in this schedule are subject to reasonable adjustment by Escrow Agent in accordance with its customary practices and if it is called upon to undertake further unusual or extraordinary duties or responsibilities, or as changes in law, procedures, or the cost of doing business demand.

 

3.                                      Taxpayer Identification Number.

 

Company: 80-0884134

 

4.                                      Notice Addresses.

 

If to the Company at:

 

330 Townsend Street, Suite 234,

San Francisco, CA 94107

Attention: Cornell “Buck” French

Tel: (415) 592-5950

 

with copy to:

 

Latham & Watkins, LLP

140 Scott Drive, Menlo Park

Attn: Patrick Pohlen

Tel: (650) 328-4600

 

If to Escrow Agent at:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, New York 11219

Attn: Corporate Actions

Tel: (718) 921-8200

 

A-2

 

with copy to:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, New York 11219

Attn: General Counsel

Tel: (718) 921-8200

 

If to the Underwriter at:

 

330 Townsend Street, Suite 234,

San Francisco, CA 94107

Attention: John Rodin

Tel: (415) 592-5950

 

If to the Bank at:

 

400 Hamilton Ave, Suite 210,

Palo Alto, CA 94301

Attention: [          ]

[Phone]

 

5.                                      Designated Email Accounts and Telephone Call-Back Numbers (for persons designated to send and receive notices by e-mail).

 

	
Company:
    	
Name
    	
 
    	
Email   Address
    	
 
    	
Phone
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Ted   Monohon 
    	
 
    	
ted.monohon@fantex.com
    	
 
    	
(408)   410-6499
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Escrow Agent:
    	
Name
    	
 
    	
Email   Address
    	
 
    	
Phone
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Joseph   M Smith
    	
 
    	
jsmith@amstock.com
    	
 
    	
(212)   921-8135
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Underwriter:
    	
Name
    	
 
    	
Email   Address
    	
 
    	
Phone
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Marco   Pellini 
    	
 
    	
marco.pellini@fantex.com
    	
 
    	
(312)   286-6621
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bank:
    	
Name
    	
 
    	
Email   Address
    	
 
    	
Phone
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
[Bank to insert]
    	
 
    	
 
    	
 
    	
 
    

 

A-3

 

SCHEDULE B-1

 

OFFICERS’ CERTIFICATE

 

Fantex, Inc.

[Fantex Series [ · ] Convertible Tracking Stock]

(par value $0.0001 per share)

 

[ · ], 20[    ]

 

REFERENCE IS HEREBY MADE to the Master Escrow Agreement, dated [ · ], 2014 (the “Master Escrow Agreement”), made by and among Fantex, Inc., a Delaware corporation (the “Company”), Fantex Brokerage Services, LLC (the “Underwriter”), American Stock Transfer & Trust Company, LLC (the “Escrow Agent”) and Wells Fargo Bank, N. A. (the “Bank”).  Except as otherwise expressly indicated, or unless the context otherwise requires, any capitalized term used but not defined herein shall be ascribed the meaning given such term in the Master Escrow Agreement.

 

Pursuant to Section 1 of the Master Escrow Agreement, the undersigned, David Mullin, Chief Financial Officer of the Company, and Ted Monohon, Vice President, Finance and Controller of the Company, in the name of and on behalf of the Company, hereby certify they have reviewed the Registration Statement (as defined below) and any amendment or supplement thereto, as well as each electronic road show used in connection with the offering of the Fantex Series [ · ], and the Master Escrow Agreement and, in each case as of the date hereof, as follows:

 

a)             The Company is offering on a best efforts, all or none basis, an aggregate of [ · ] shares of the Company’s Fantex Series [ · ] Convertible Tracking Stock, par value $0.0001 per share (the “Fantex Series [ · ]”) at a price of $10.00 per share (the “Offering Price”) in an initial public offering pursuant to a registration statement on Form S-1 under the Securities Act of 1933, as amended (the “Act”), filed with the Securities and Exchange Commission (the “Commission”) on [ · ] (Registration No. 333-[ · ]) (as so filed and as amended from time to time, the “Registration Statement”);

 

b)             The Underwriter has received reservations to cover the Minimum Amount and such reservations for [ · ] shares of Fantex Series [ · ] have been accepted;

 

c)              The Registration Statement has been declared effective by the Commission and no stop order suspending the effectiveness of the Registration Statement or any notice objecting to its use has been issued and no proceedings for such purposes have been instituted or, to the Company’s knowledge, threatened;

 

B1-1

 

d)             The Shares are being qualified for sale under applicable state securities or “blue sky” laws and are not being offered to residents of any state in which registration and other legal requirements have not been fulfilled; and

 

e)              The representations and warranties of the Company contained in Section 11 of the Master Escrow Agreement are true and correct in all material respects with the same effect as if made on the date hereof.

 

[Signature page follows]

 

B1-2

 

IN WITNESS WHEREOF, the undersigned have duly executed this certificate as of the date first written above.

 

	
 
    	
 
    	
Fantex, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
David   Mullin
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Ted   Monohon
    
	
 
    	
 
    	
Title:
    	
Vice   President, Finance and Controller
    

 

[Signature Page to Officers’ Certificate]

 

 

SCHEDULE B - 2

 

UNDERWRITER’S CERTIFICATE

 

Fantex Brokerage Services, LLC

[Fantex Series [ · ] Convertible Tracking Stock]

(par value $0.0001 per share)

 

[ · ], 20[    ]

 

REFERENCE IS HEREBY MADE to the Master Escrow Agreement, dated [ · ], 2014 (the “Master Escrow Agreement”), made by and among Fantex, Inc., a Delaware corporation (the “Company”), Fantex Brokerage Services, LLC (the “Underwriter”), American Stock Transfer & Trust Company, LLC (the “Escrow Agent”) and Wells Fargo Bank, N. A. (the “Bank”).  Except as otherwise expressly indicated, or unless the context otherwise requires, any capitalized term used but not defined herein shall be ascribed the meaning given such term in the Master Escrow Agreement.

 

Pursuant to Section 1 of the Master Escrow Agreement, the undersigned, Marco Pellini, Vice President, Trading of the Underwriter, and Bill Garvey, Secretary of the Underwriter, in the name of and on behalf of the Underwriter, hereby certify they have reviewed the Registration Statement (as defined below) and any amendment or supplement thereto, as well as each electronic road show used in connection with the offering of the Fantex Series [ · ], and the Master Escrow Agreement and, in each case as of the date hereof, as follows:

 

a)             The Company is offering on a best efforts, all or none basis, an aggregate of [ · ] shares of the Company’s Fantex Series [ · ] Convertible Tracking Stock, par value $0.0001 per share (the “Fantex Series [ · ]”) at a price of $10.00 per share (the “Offering Price”) in an initial public offering pursuant to a registration statement on Form S-1 under the Securities Act of 1933, as amended (the “Act”), filed with the Securities and Exchange Commission (the “Commission”) on [ · ] (Registration No. 333-[ · ]) (as so filed and as amended from time to time, the “Registration Statement”);

 

b)             The Underwriter has received reservations to cover the Minimum Amount and such reservations for [ · ] shares of Fantex Series [ · ] have been accepted;

 

c)              The Registration Statement has been declared effective by the Commission and no stop order suspending the effectiveness of the Registration Statement or any notice objecting to its use has been issued and no proceedings for such purposes have been instituted or, to the Underwriter’s knowledge, threatened;

 

B2-1

 

d)             The Shares are being qualified for sale under applicable state securities or “blue sky” laws and are not being offered to residents of any state in which registration and other legal requirements have not been fulfilled; and

 

e)              The representations and warranties of the Underwriter contained in Section 11 of the Master Escrow Agreement are true and correct in all material respects with the same effect as if made on the date hereof.

 

[Signature page follows]

 

B2-2

 

IN WITNESS WHEREOF, the undersigned have duly executed this certificate as of the date first written above.

 

	
 
    	
 
    	
Fantex   Brokerage Services, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Marco   Pellini
    
	
 
    	
 
    	
Title:
    	
Vice   President, Trading
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Bill   Garvey
    
	
 
    	
 
    	
Title:
    	
Secretary
    

 

[Signature Page to Underwriter’s Certificate]

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