Document:

Exhibit

FIFTH AMENDMENT
TO 
LOAN AND SECURITY AGREEMENT

This Fifth Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 22nd day of April, 2020, by and between SILICON VALLEY BANK (“Bank”) and LIMELIGHT NETWORKS, INC., a Delaware corporation (“Borrower”) whose address is 1465 North Scottsdale Road, Suite 400, Scottsdale, Arizona 85257.
RECITALS
A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of November 2, 2015, as amended by that certain First Loan Modification Agreement dated as of March 30, 2016, as further amended by that certain Second Loan Modification Agreement dated as of October 25, 2016, as further amended by that certain Third Amendment to Loan and Security Agreement dated as of October 17, 2017, and as further amended by that certain Fourth Amendment to Loan and Security Agreement dated as of February 27, 2018 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Bank amend the Loan Agreement to (i) extend the Revolving Line Maturity Date and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.
D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.
2.    Amendments to Loan Agreement.
2.1    Section 2.4 (Payment of Interest on Credit Extensions).  Subsection (a) of Section 2.4 is deleted in its entirety and replaced with the following:
“    (a)    Interest Rate.  Subject to Section 2.4(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum 

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rate equal to the greater of (i) one-quarter of one percent (0.25%) below the Prime Rate and (ii) three percent (3.0%), which interest shall be payable monthly in accordance with Section 2.4(d) below.”
2.2    Section 2.5 (Fees).  (i) Subsections (d) and (e) of Section 2.5 are renumbered subsections (e) and (f), respectively, and (ii) the following new subsection (d) is inserted in Section 2.5:
“    (d)    Fifth Amendment Anniversary Fee.  A fully earned, non-refundable anniversary fee of Thirty-Five Thousand Dollars ($35,000.00) shall be earned as of the Fifth Amendment Effective Date, and shall be due and payable on the earliest to occur of (i) November 2, 2021, (ii) the occurrence of an Event of Default, or (iii) the termination of this Agreement;” 

2.3    Section 5.5 (Financial Statements; Financial Condition).  Section 5.5 is deleted in its entirety and replaced with the following:
“    5.5    Financial Statements; Financial Condition.  All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Bank by submission to the Financial Statement Repository or otherwise submitted to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations as at their dates or for the periods covered thereby.  There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to the Financial Statement Repository or otherwise submitted to Bank.”

2.4    Section 5.11 (Full Disclosure).  Section 5.11 is deleted in its entirety and replaced with the following:
“    5.11    Full Disclosure.  No written representation, warranty or other statement of Borrower in any certificate or written statement submitted to the Financial Statement Repository or otherwise submitted to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written reports, written certificates and written statements submitted to the Financial Statement Repository or otherwise submitted to Bank and set forth in Borrower’s filings with the SEC, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the reports, certificates, or written statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).”
2.5    Section 6.2 (Financial Statements, Reports, Certificates).  The following text appearing in Section 6.2 of the Loan Agreement is deleted:

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“    6.2    Financial Statements, Reports, Certificates.  Provide Bank with the following:”
and replaced with the following:
“    6.2    Financial Statements, Reports.  Provide Bank with the following by submitting to the Financial Statement Repository:”
2.6    Section 6.2 (Financial Statements, Reports, Certificates).  Subsection (d) of Section 6.2 is deleted in its entirety and replaced with the following:
“    (d)    within (i) thirty (30) days after the last day of each month in which Advances are outstanding or an Advance request has been made and (ii) thirty (30) days after the last day of each quarter to the extent not required pursuant to (i) during any month in such quarter, a completed Compliance Statement, confirming that, as of the end of such period, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenant set forth in this Agreement and such other information as Bank may reasonably request, including, without limitation, a statement that at the end of such period there were no held checks;” 
2.7    Section 6.2 (Financial Statements, Reports, Certificates).  Subsection (j) of Section 6.2 is deleted in its entirety and replaced with the following:
“    (j)    prompt written notice of any changes to the beneficial ownership information set out in Section 14 of the Perfection Certificate.  Borrower understands and acknowledges that Bank relies on such true, accurate and up-to-date beneficial ownership information to meet Bank’s regulatory obligations to obtain, verify and record information about the beneficial owners of its legal entity customers; and
(k)    other financial information reasonably requested by Bank.”

2.8    Section 6.2 (Financial Statements, Reports, Certificates).  Section 6.2 is hereby amended by inserting the following to appear at the end thereof:
“Any submission by Borrower of a Compliance Statement, a Borrowing Base Report or any other financial statement submitted to the Financial Statement Repository pursuant to this Section 6.2 or otherwise submitted to Bank shall be deemed to be a representation by Borrower that (a) as of the date of such Compliance Statement, Borrowing Base Report or other financial statement, the information and calculations set forth therein are true, accurate and correct, (b) as of the end of the compliance period set forth in such submission, Borrower is in complete compliance with all required covenants except as noted in such Compliance Statement, Borrowing Base Report or other financial statement, as applicable; (c) as of the date of such submission, no Events of Default have 

3

occurred or are continuing; (d) all representations and warranties other than any representations or warranties that are made as of a specific date in Article 5 remain true and correct in all material respects as of the date of such submission except as noted in such Compliance Statement, Borrowing Base Report or other financial statement, as applicable; (e) as of the date of such submission, Borrower and each of its Subsidiaries has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9; and (f) as of the date of such submission, no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank.”

2.9    Section 6.8 (Accounts).  Subsection (a) of Section 6.8 is deleted in its entirety and replaced with the following:
“    (a)    Maintain all of its and all of its Subsidiaries’ operating accounts, depository accounts, and excess cash with Bank and Bank’s Affiliates; provided, however, Foreign Subsidiaries of Borrower may maintain accounts outside of the United States with financial institutions other than Bank and Bank’s Affiliates.  In addition to the foregoing, Borrower, any Subsidiary of Borrower, and any Guarantor shall obtain any business credit card exclusively from Bank.”
2.10    Section 6.9 (Financial Covenants).  Subsection (c) of Section 6.9 is deleted in its entirety and replaced with the following:
“    (c)    Intentionally omitted.”

2.11    Section 6.12 (Online Banking).  Subsection (b) of Section 6.12 is deleted in its entirety and replaced with the following:
“    (b)    Comply with the terms of Bank’s Online Banking Agreement as in effect from time to time and ensure that all persons utilizing Bank’s online banking platform are duly authorized to do so by an Administrator.  Bank shall be entitled to assume the authenticity, accuracy and completeness of any information, instruction or request for a Credit Extension submitted via Bank’s online banking platform and to further assume that any submissions or requests made via Bank’s online banking platform have been duly authorized by an Administrator.”
2.12    Section 7.1 (Dispositions).  The following text appearing in Section 7.1 of the Loan Agreement is deleted:
“Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”)”
and replaced with the following:

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“Convey, sell, lease, transfer, assign, or otherwise dispose of (including, without limitation, pursuant to a Division) (collectively, “Transfer”)”
2.13    Section 7.2 (Changes in Business, Management, Control, or Business Locations).  Section 7.2 is hereby amended by inserting the following to appear at the end thereof:
“If Borrower intends to add any new offices or business locations, including warehouses, containing in excess of Five Hundred Thousand Dollars ($500,000.00) of Borrower's assets or property, then Borrower will use commercially reasonable efforts to cause the landlord of any such new offices or business locations, including warehouses, to execute and deliver a landlord consent in form and substance satisfactory to Bank.”

2.14    Section 7.3 (Mergers or Acquisitions).  The first sentence of Section 7.3 is deleted in its entirety and replaced with the following:
“Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person (including, without limitation, by the formation of any Subsidiary or pursuant to a Division) except to the extent constituting a Permitted Acquisition or Permitted Investment.”
2.15    Section 13 (Definitions).  The term “Compliance Certificate” and its definition is deleted in its entirety.
2.16    Section 13 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 are deleted in their entirety and replaced with the following: 
“    “Administrator” is an individual that is named:

(a)     as an “Administrator” in the “SVB Online Services” form completed by Borrower with the authority to determine who will be authorized to use SVB Online Services (as defined in Bank’s Online Banking Agreement as in effect from time to time) on behalf of Borrower; and

(b)     as an Authorized Signer of Borrower in an approval by the Board.”
 
“    “Availability Amount” is (a) the lesser of (i) (A) prior to the completion of the Initial Audit, an aggregate principal amount not to exceed Ten Million Dollars ($10,000,000.00) outstanding at any time and (B) after the completion of the Initial Audit, the Revolving Line or (ii) the amount available under the Borrowing Base minus (b) the outstanding principal balance of any Advances.”

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“    “Initial Audit” is Bank’s inspection of Borrower’s Accounts, the Collateral, and Borrower’s Books, completed after the Fifth Amendment Effective Date, with results satisfactory to Bank in its sole and absolute discretion.”
“    “Revolving Line Maturity Date” is November 2, 2022.”    
2.17    Section 13 (Definitions).  The following new defined terms are hereby inserted alphabetically in Section 13.1:
“    “Compliance Statement” is that certain statement in the form attached hereto as Exhibit B.”

“    “Division” means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, or any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership or other entity.”

 “    “Fifth Amendment Effective Date” is  April ___, 2020.” [DATE OF THIS AMENDMENT.  TO BE COMPLETED AT CLOSING]

“    “Financial Statement Repository” is mkelty@svb.com or such other means of collecting information approved and designated by Bank after providing notice thereof to Borrower from time to time.”

2.18    Exhibit B (Compliance Certificate).  The Compliance Certificate appearing as Exhibit B to the Loan Agreement is deleted in its entirety and replaced with the Compliance Statement attached as Schedule 1 attached hereto.
3.    Post-Closing Conditions.  Borrower hereby acknowledges and agrees that Borrower will deliver to Bank, on or before the date that is thirty (30) days from the date of this Amendment, each in form and substance satisfactory to Bank: (a) an Acord 25 insurance certificate with respect to Borrower’s general liability insurance policies; (b) an Acord 28 insurance certificate with respect to Borrower’s property insurance policies; (c) an endorsement to Borrower general liability insurance policy that names Bank as an additional insured; (d) an endorsement to Borrower’s property insurance policy that names Bank as the sole lender’s loss payee; and (e) an endorsement providing that the insurer will provide Bank with 30 days’ notice prior to Borrower’s property or general liability policies being cancelled.  Borrower acknowledges and agrees that the failure of Borrower to satisfy the requirements set forth in the immediately preceding sentence within thirty (30) days from the date of this Amendment shall result in an immediate Event of Default under the Loan Agreement for which there shall be no grace or cure period.
4.    Limitation of Amendments.

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4.1    The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.
4.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.
5.    Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:
5.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;
5.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
5.3    The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
5.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
5.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
5.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and
5.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except 

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as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
6.    Ratification of Perfection Certificate.  Except as set forth on Schedule 2 hereto, Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of November 2, 2015, and acknowledges, confirms and agrees that the disclosures and information Borrower provided to Bank in such Perfection Certificate have not changed, as of the date hereof.
7.    Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.
8.    Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
9.    Intentionally omitted.
10.    Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, and (b) Borrower’s payment to Bank of (i) a fully-earned, non-refundable amendment fee in an amount equal to Fifty Thousand Dollars ($50,000.00) and (ii) Bank’s legal fees and expenses incurred in connection with this Amendment.
[Signature page follows.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

	
		
	BANK
	BORROWER

	SILICON VALLEY BANK

By:      /s/ Kyle Larrabee             
Name: Kyle Larrabee                   
Title:   Senior Vice President
	LIMELIGHT NETWORKS, INC.

By:     /s/ Sajid Malhotra           
Name: Sajid Malhotra
Title:  Chief Financial Officer

The undersigned hereby certifies, to the best of his or her knowledge, that the information set out in the Perfection Certificate is true, complete and correct.
    
By:       /s/ Sajid Malhotra     
Name:  Sajid Malhotra    
Title:    Chief Financial Officer    
Email:  smalhotra@llnw.com
Phone:  +16028505778    

Schedule 1

EXHIBIT B
COMPLIANCE STATEMENT
TO:    SILICON VALLEY BANK                Date:                  
FROM:  LIMELIGHT NETWORKS, INC.

Under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (as amended, the “Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below.  Attached are the required documents evidencing such compliance, setting forth calculations prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.
	
			
	Please indicate compliance status by circling Yes/No under “Complies” column.

	 

	Reporting Covenant
	Required
	Complies

	 
	 
	 

	Financial statements
	Monthly within 30 days when Advances are outstanding or requested in said month
	Yes   No

	Compliance Statement
	Monthly within 30 days when Advances are outstanding or requested in said month;  otherwise, quarterly within 30 days
	Yes   No

	10‐Q, 10‐K (including opinion of auditors) and 8-K
	Within 5 days after filing with SEC
	Yes   No

	A/R & A/P Agings and Deferred Revenue 
Report
	Monthly within 30 days when Advances are outstanding or requested in said month;  otherwise, quarterly within 30 days
	Yes   No

	Borrowing Base Reports
	Monthly within 30 days when Advances are outstanding or requested in said month;  otherwise, quarterly within 30 days
	Yes   No

	Board-approved Projections
	FYE within 60 days and as updated or amended
	Yes   No

	
				
	Financial Covenant
	Required
	Actual
	Complies

	 
	 
	 
	 

	Maintain at all times:
	 
	 
	 

	Adjusted Quick Ratio (must include at least 
$5,000,000 in in accounts with Bank and 
Bank’s Affiliates) (tested monthly when Advances are outstanding or requested in said month; otherwise, quarterly)
	> 1.0 : 1.0

$5,000,000 in in accounts with 
Bank and 
Bank’s Affiliates
	____ : 1.0______

$_______ 
in in 
accounts with 
Bank and 
Bank’s Affiliates)

	Yes   No

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Compliance Statement.
	
				
	New Office, Business or Bailee Locations
	Borrower
	Collateral Description
	Value of Collateral

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

The following are the exceptions with respect to the statements above: (If no exceptions exist, state “No exceptions to note.”)
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SCHEDULE 1 TO COMPLIANCE STATEMENT 

FINANCIAL COVENANT OF BORROWER
In the event of a conflict between this Schedule and the Agreement, the terms of the Agreement shall govern.
Dated:    ____________________
I.    Adjusted Quick Ratio (Section 6.9(d))
Required: > 1.0 : 1.0

Actual:     _____ : 1:0

	
			
	A.
	Aggregate amount of Borrower’s unrestricted and unencumbered (other than Liens in favor of Bank pursuant to the general security interest granted in the Agreement) cash and Cash Equivalents held at such time by Borrower in Deposit Accounts or Securities Accounts maintained with Bank and, to the extent that they are subject to a fully-executed and enforceable Control Agreement in favor of Bank, Deposit Accounts or Securities Accounts maintained with Bank’s Affiliates and other financial institutions (provided that Borrower shall have at least Five Million Dollars ($5,000,000.00) in unrestricted and unencumbered (other than Liens in favor of Bank pursuant to the general security interest granted in the Agreement) cash and Cash Equivalents in Deposit Accounts or Securities Accounts in Borrower’s name maintained with Bank or Bank’s Affiliates)

	$   

	B.
	Aggregate value of Borrower’s net billed accounts receivable, determined according to GAAP

	$   

	C.
	Quick Assets (the sum of lines A and B)
	$   

	D.
	All obligations and liabilities of Borrower to Bank

	$   

	E.
	Aggregate value of liabilities that should, under GAAP, be classified as liabilities on Borrower’s balance sheet, including all Indebtedness, not otherwise reflected in line D above, that mature within one (1) year
	

$   

	F.
	Current Liabilities (the sum of lines D and E)
   
	$   

	G.
	Deferred Revenue
	$   

	H.
	Adjusted Quick Ratio ((i) line C divided by (ii) line F minus line G)

	   

Is line H equal to at least 1.0 : 1.0?

  No, not in compliance              Yes, in compliance

Schedule 2

Amendments to Perfection Certificate

The Perfection Certificate is amended by inserting the following text to appear as a new Section 14, immediately following Section 13 thereof:
14.    BENEFICIAL OWNERSHIP

		
	a.
	Is the Company any of the following:

		
	(i)
	a public company or an issuer of securities that are registered with the Securities and Exchange Commission under Section 12 of the Securities Exchange Act of 1934 or that is required to file reports under Section 15(d) of that Act; 

		
	(ii)
	an investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940;

		
	(iii)
	an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940; or 

		
	(iv)
	a pooled investment vehicle operated or advised by a regulated financial institution (including an SEC-registered investment adviser)?

Yes     S      No    £
If yes, no further information is required for Sections 14(b), 14(c) or 14(d) below. If no, continue to Section 14(b):
		
	b.
	Is the Company a pooled investment vehicle that is not operated or advised by a regulated financial institution?

Yes     £      No    £
If yes, skip to Section 14(d) below.  If no, continue to Section 14(c):
		
	c.
	Does any individual, directly or indirectly (for example, if applicable, through such individual’s equity interests in the Company’s parent entity), through any contract, arrangement, understanding, relationship or otherwise, own 25% or more of the equity interests of the Company:

Yes     £      No    £
If yes, complete the following information.  If no, continue to Section 14(d) below.
	
							
	 
	Name
	Date of birth
	Residential address
	For US Persons, Social Security Number:
(non-US persons should provide SSN if available)
	For Non-US Persons: Type of ID, ID number, country of issuance, expiration date
	Percentage of ownership
(if indirect ownership, explain structure)

	1
	 
	 
	 
	 
	 
	 

	2
	 
	 
	 
	 
	 
	 

	3
	 
	 
	 
	 
	 
	 

	4
	 
	 
	 
	 
	 
	 

		
	d.
	Identify one individual with significant responsibility for managing the Company, i.e., an executive officer or senior manager (e.g., Chief Executive Officer, President, Vice President, Chief Financial Officer, Treasurer, Chief Operating Officer, Managing Member or General Partner) or any other individual who regularly performs similar functions.  If appropriate, an individual listed in Section 14(c) above may also be listed here.

	
						
	 
	Name
	Date of birth
	Residential address
	For US Persons, Social Security Number:
(non-US persons should provide SSN if available)
	For Non-US Persons: Type of ID, ID number, country of issuance, expiration date

	1Exhibit
4.2

 

Office
Lease

 

The
original version in Chinese shall prevail. The English version just for reference only

 

Lessor:
Shanghai Ningsheng Enterprise Management Group Co., Ltd. (hereinafter referred to as Party A)

 

Lessee:
Fintech (Shanghai) Digital Technology Co., Ltd. (hereinafter referred to as Party B)

 

In
accordance with the provisions of the contract law of the people’s Republic of China, the regulations of Shanghai Municipality
on Housing leasing (hereinafter referred to as the regulations) and other laws and regulations, Party A and Party B, on the basis
of equality, voluntariness, fairness and good faith, have reached an agreement through consultation on the matters that Party
B rents the housing that Party A can legally rent

 

Article
1 rental housing

 

		l.	Basic
information of the house Location: building C9, No. 99, Danba Road, Putuo District, Shanghai Location of the rental house: on
the fourth and a half floors, the electricity and network shall be arranged for Party B (Note: ensure that the network cable port
from the desktop to the computer room is unobstructed), and Party B shall be responsible for the specific opening matters.

  

		2.	Party
A, as the other obligee stipulated by the law of the house, has established a lease relationship with Party B. before signing
this contract, Party A has told Party B to set up a mortgage for the house. Meanwhile, during the duration of the above lease
relationship, Party A is responsible for providing water and electricity, property and one open broadband during the use of the
house; Party B declares that it has fully understood the ownership, current situation and surrounding site of the house before
signing this contract, and is willing to bear all risks related to the house and the site.

  

		3.	the
use scope, conditions and requirements of the public or shared parts of the house, the existing decoration, auxiliary facilities
and equipment conditions, and the contents, standards and relevant matters to be agreed upon by Party A for Party B self decoration
and additional auxiliary facilities shall be listed by Party A and Party B respectively in Appendix I of this contract.

  

     

     

    

 

Article
2 purpose of lease

 

		1.	Party
B promises to Party A that it will rent the house for office use and abide by the laws and regulations of the state and this Municipality
on the use of the house and property management.

 

		2.	Party
B guarantees that it will not change the use purpose as agreed above without the written consent of Party A and the approval of
relevant departments as required.

 

Article
3 delivery date and lease term

 

		l.	Party
A and Party B agree that the lease term of the house shall be from May, 2009 to LQ, 2014, totaling months, and Party A shall deliver
the house to Party B for use on the date of destruction of the house.

 

		2.	upon
the expiration of the lease term, Party A has the right to recover the house, and Party B shall return it as scheduled. If Party
B wants to continue to lease the house, it shall inform Party A in writing one month before the expiration of the lease term,
and both parties shall sign a new lease contract with the consent of Party A.

 

Article
4 rent, payment method and time limit

 

		l.	Party
A and Party B agree that the monthly rent of the house is 80000 yuan (in words: only RMB ten thousand yuan); the monthly rent
includes the property fee, water and electricity fee, office equipment value-added tax invoice tax. If Party B needs a special
VAT invoice, other taxes incurred shall be borne by Party B.

 

		2.	From
October 20, 2021 to October 19, 2023, the rent increases by 5% on the basis of the previous standard, which is RMB 84000 / month
(in words: RMB four thousand only).

  

    2

     

    

 

		3.	Party
B shall pay Party A every month before. In case of overdue payment, Party B shall pay liquidated damages at 5% of the unpaid rent
for one day overdue.

 

		4.	Party
B shall pay the rent as follows: the rent shall be paid in advance, and the payment method shall be: monthly payment, bank transfer
or payment

 

Account
designated by Party A

Bank
of deposit of Party A: Industrial Bank Shanghai Peoples Square

Branch
Account Name: Shanghai Ningsheng Enterprise Management Group Co., Ltd

account
number: 216290100124723

 

Article
5 deposit and other expenses

 

		1.	Within
days after signing this contract, Party B shall pay Party A the rent of RMB 178707 equivalent to one month of the lease term of
this contract, and Party A shall issue a receipt to Party B after receiving the rent.

 

When
the lease relationship is terminated, the house rental deposit collected by Party A shall be used to offset the expenses agreed
in the contract to be borne by Party B, and the remaining part shall be returned to Party B without interest within seven legal
working days after the termination date of the lease relationship.

 

		2.	During
the lease period, Party B shall bear the parking fee, network and other expenses incurred in using the house.

 

Article
6 use requirements and maintenance responsibilities of the house

 

		l.	During
the lease period, Party B shall reasonably use and take good care of the house and its ancillary facilities. In case of any damage
or failure of the house and its ancillary facilities, Party B shall promptly notify Party A to repair them. Party A shall maintain
the house and its ancillary facilities within working days after receiving the notice from Party B

 

If
the repair is not carried out within the time limit, Party B may carry out the repair on behalf of Party A at the expense of Party
A.

  

    3

     

    

 

		2.	during
the lease period, if the house and its auxiliary facilities are damaged or malfunctioned due to Party B’s improper or unreasonable
use, Party B shall be responsible for the maintenance. If Party B refuses to repair, Party A may repair on behalf of Party B,
and the cost shall be borne by Party B.

 

		3.	During
the lease period, Party A shall guarantee the normal serviceable and safe condition of the house and its auxiliary facilities.
In case that Party A conducts inspection and maintenance of the house, it shall notify Party B in advance of working days, and
Party B shall cooperate in the inspection and maintenance. Party A shall reduce the impact on Party B’s use of the house.

 

		4.	in
addition to the appendix of this contract, if Party B needs to decorate or add additional auxiliary facilities and equipment,
it shall obtain the written consent of Party A in advance, and if it is approved by the relevant department according to the regulations,
it shall also be reported to the relevant department for approval according to the regulations before proceeding. Party B shall
be responsible for the additional auxiliary facilities and equipment and their maintenance responsibilities.

 

		5.	Party
B’s employees, agents, contractors, invitees, customers, visitors in the rental housing and the overall property 

Activities
within the enclosure shall comply with relevant laws and regulations and Party A’s property management regulations. The
appellant violated the law and arrow-

 

Party
A or any third party’s personal and property losses caused by laws and regulations, Party A’s property management
regulations and this contract

 

Party
B shall be liable for compensation. If Party B fails to make compensation or fails to make compensation in time and in full, it
shall be deemed as a breach of contract under this contract, and shall be liable for breach of contract and maintenance.

 

		6.	during
the lease term, without the written consent of Party A, Party B shall not install, transform or add water supply and drainage
equipment, wires or install any other equipment or devices, so as to require additional wires and water pipes, or within the lease
area (external doors, windows, walls, cabinets, public stairs, corridors, lobbies, bathrooms, etc.) post and issue advertisements
and signs, place, stack and hang any objects, strictly store inflammable and explosive dangerous goods, and strictly prevent fire.
Otherwise, Party A has the right to deal with these objects, unilaterally terminate the contract, and Party B shall be responsible
for compensation and maintenance of the losses caused to Party A or the third party.

  

    4

     

    

 

Article
7 state of the house at the time of return

 

		l.	In
addition to Party A’s consent to Party B’s renewal of the lease, Party B shall return the house on the day after the
expiration of the lease of this contract. In case of overdue return of the house without Party A’s consent, Party B shall
pay Party A the occupancy and use fee of the house at double daily rent for each overdue day.

 

		2.	Party
B shall return the leased house to Party A in good condition, and Party A and Party B shall jointly check the leased house and
its supporting facilities to ensure the state of the house delivered by Party A to Party B (except normal loss). When returning
the house, it shall be accepted by Party A, and each party shall settle its own expenses.

 

Article
8 sublease, transfer and exchange

 

		l.	During
the lease term, Party B shall not sublease, transfer, sublease, lend, associate, share or exchange with others.

 

		2.	during
the lease term, if Party B really needs to transfer the house to others for use, it must consult with Party A in advance

 

Party
B shall obtain Party A’s written consent, otherwise Party A shall have the right to take back the house immediately and
terminate this contract.

 

Article
9 change, cancellation and termination of the contract

 

		(1)	Party
A and Party B agree that in case of any of the following circumstances during the lease term, this contract shall be terminated
and both parties shall not be liable for each other:

 

		1.	the
land-use right within the occupied area of the house is recovered in advance according to law;

 

		2.	the
house is expropriated according to law due to the social and public interests;

 

		3.	the
house is listed in the scope of house demolition permit according to law due to the need of urban construction;

 

		4.	The
house is damaged, lost or identified as a dangerous house;

 

 

    5

     

    

 

		(2)	Both
parties agree that if one party has any of the following circumstances, it shall be deemed as a breach of contract. The observant
party may notify the breaching party in writing to terminate this contract. The breaching party shall bear the responsibility
according to law. The breaching party shall pay the other party the annual rent as liquidated damages. If the liquidated damages
are not enough to make up for the other party’s losses, it shall make up for them.

 

		l.	Party
B fails to or fails to pay Party A the initial rent, deposit or other initial expenses in full;

 

		2.	Party
B fails to deliver the house on time due to Party A’s own reasons and fails to deliver the house within 1 month after Party
B’s urging;

 

		3.	Party
B causes damage to the main structure of the house;

 

		4	Party
B fails to pay the rent for more than half a month (including half a month)

 

		5.	Party
B uses the house to store dangerous goods, carry out illegal criminal activities or operate projects that affect the surrounding
environment and damage the public interest without permission;

 

		6.	Party
B subleases, transfers, subleases, lends, associates, shares or exchanges with others without authorization;

 

Article
10 liability for breach of contract

 

		l.	During
the lease period, if Party A cancels this contract without authorization and takes back the house in advance, Party A shall pay
Party B the annual 3-month rent as liquidated damages.

 

		2.	during
the lease period, if Party B withdraws the lease without permission in the middle of the lease period, it shall compensate Party
B for such withdrawal

 

Cause Party A’s loss of all rents (the standard is the rent amount of this contract) during the empty
warehouse period. And pay Party A 3-month rent as liquidated damages.

 

		3.	if
Party B delays in paying the rent and the relevant fees stipulated in the contract, Party B shall pay Party A the late fee at
the rate of 0.5% of the total annual rent and other overdue fees per day for each day overdue.

 

		4.	if
the contract is terminated due to Party B’s breach of contract, Party A shall not be liable for any compensation and compensation
for the renovation, reconstruction, decoration and other investment.

 

Article
11 other provisions

 

		l.	During
the lease term, Party A shall only be responsible for the property insurance of the house and buildings, while Party B shall be
responsible for the insurance of its own equipment, property, storage goods and employees, including but not limited to the thousand
property all risks insurance and liability insurance. If Party A and Party B fail to purchase the above insurance, all compensation
and liability arising therefrom shall be borne by the buyer.

  

    6

     

    

 

		2.	during
the lease period, the contract is terminated due to force majeure, including but not limited to the relocation of thousands of
municipalities, state administrative intervention, demolition and construction of district and county governments and other reasons,
which cause the leased house unable to continue to be used. Party A and Party B shall return the corresponding deposit in accordance
with Clause 1 of Article 5 of this contract, and Party A shall not bear any liability and expenses for breach of contract.

 

		3.	for
matters not covered in this contract, both parties can reach an agreement through consultation and conclude a supplementary agreement,
which has the same effect as this contract.

 

		4.	When
                                         signing this contract, both parties shall clearly understand their respective responsibilities
                                         and rights, and are willing to strictly implement the contract. If one party violates
                                         the contract, the observant party has the right to claim for compensation or terminate
                                         the contract in accordance with the contract.

 

		5.	any
                                         dispute arising from the performance of this contract by both parties shall be settled
                                         through consultation; if the negotiation fails, a lawsuit may be brought to the local
                                         people’s court where the lease is located according to law.

 

		6.	Party
                                         B undertakes not to engage in any business in violation of national laws and regulations,
                                         otherwise it will be deemed as breach of contract, and all losses caused shall be borne
                                         by Party B itself, which has nothing to do with Party A. if any loss is caused to Party
                                         A, Party B shall make compensation.

 

		7.	during
                                         the lease term, Party B shall be fully responsible for all matters (including personal
                                         safety) occurring in the house, which has nothing to do with Party A.

 

		8.	opening
hours of Party A’s air conditioner: 9:00 a.m. to 18:00 p.m. Monday to Friday; Party A has the right to inspect before Party
B leaves work 

Check the switch of air conditioner;

 

		9	After
the expiration of the lease term, if the office furniture and auxiliary facilities provided by Party A are damaged artificially,
Party A has the right to recover from Party B, We have the right to deduct the loss from the rental deposit.

 

		10	This
contract is made in duplicate, with each party holding one copy. After being signed and sealed by Party A and Party B, this contract
shall come into force on the date of signing and sealing by both parties.

  

    7

     

    

 

 

  

    8

     

    

 

Enclosure:

  

Regulations
against commercial bribery

  

Party
A: Shanghai Ningsheng Enterprise Management Group Co., Ltd 

Address:
20, Lane 599, Yunling East Road, Putuo District, Shanghai No. 2 floor

 

Party
B: Van tilke (Shanghai) Investment Holding Co., Ltd 

Address:
Floor 2, No.20, Lane 599, Yunling East Road, Putuo District, Shanghai

  

    9

     

    

 

In
order to jointly stop commercial bribery and corruption, safeguard the common legal rights and interests of Party A and the units
and individuals with interest relationship with Party A and the legitimate rights and interests of Party B during the period of
cooperation with Party A, the following anti-commercial bribery and anti-corruption agreement has been reached through friendly
negotiation between Party a and Party B, so that both parties can abide by it That’s ok:

 

		l.	The
commercial bribery referred to in this agreement refers to “in order to obtain the benefits of cooperation and cooperation
with Party A, Party B or its staff give Party A’s employees, including but not limited to: money, kickbacks, material gifts,
services, pornographic bribery, tourism and other forms of good points.”.

 

		2.	Prohibition
of commercial bribery: in addition to strictly abiding by the Anti Unfair Competition Law of the people’s Republic of China,
the criminal law and other provisions concerning the prohibition of commercial bribery, Party A and Party B shall firmly refuse
the gifts of commercial bribery, bribery and other improper commercial behaviors agreed in this agreement.

 

		3.	Any
employee or department of Party A shall not take advantage of his position to embezzle, steal, cheat or seek personal interests
by other improper means, and shall not ask for or receive money, articles and gifts in any form from Party B in the name of Party
A.

 

		4.	Party
B or Party B’s staff shall not, in the name of Party B or an individual, directly or indirectly give gifts, articles, securities
or other disguised means to any employee or department of Party A, or violate the commercial bribery prohibition agreement. Otherwise,
it shall be deemed as a breach of contract against Party a’s interests, and Party B shall bear the liability for breach
of contract.

 

		5,	the
following are exceptions:

 

		5.1	Basic
business etiquette, small gifts with appropriate price, local specialties, etc;

 

		5.2	Jiqian
business reception etiquette, provide working meals, accommodation, transportation and other work convenience related to the performance
of the contract.

 

		6.	If
Party B violates the provisions of this agreement, Party A has the right to stop all cooperation contract business with Party
B, which is not considered as breach of contract, and take measures such as freezing all accounts payable to Party B in accordance
with the law, and file corresponding arbitration to Shanghai Arbitration Commission for corresponding legal liabilities. At the
same time, the Audit Department of Party A will make an internal announcement in Party A’s company The list of defaulting
parties will not allow any business cooperation with Party A and its affiliated companies in any form for not less than five thousand
years.

 

		7.	regardless
of whether the main contract signed by both parties is confirmed and protected by judicial or arbitration authorities, this Agreement
shall exist independently, and shall still have judicial binding force on both parties within 5 years after the end of the legal
effect of the main contract.

 

		8	This
agreement is made in two copies, one for each party, with the same legal effect.

  

    10

     

    

  

	 	 
	Party A (seal)	 
	 	 
	Date: next (?)?	 
	Party B (seal)	 
	 	 
	Date: mm / DD / yyyy	 

 

 

11

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