Document:

Lease [10.8] (00519898-2).DOCX

(何南清)">

Shanghai Municipal Contract of Property Lease

(Contract number: 20151205001)  

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Parties of this Contract:

Lessor (Party A): Xinjiang Dushanzi Tianli Technology Co., Ltd. 

Lessee (Party B): Shanghai DianNiu Internet Financial Information Service Co., Ltd.

This Contract is executed by, and as agreed, negotiations between both parties in accordance with the provisions of the Contract Law of the People's Republic of China and Shanghai Municipal Ordinance on Property Lease (hereafter referred to as “Ordinance”) on the basis of being equal, voluntary, fair and honest with respect to Party B’s lease of Party A’s legally leasable property. 

I. Details of Property for Lease

1.1 Party A’s property for lease to Party B is located on the entire 35th floor of the Sino Life Tower, No.707 Zhangyang Road, Pudong New District, and Shanghai (hereafter referred to as “the Property”). The construction floorage of the Property measures at 1,034.28m2, (to be specifically based on the ownership certificate); the Property is for office space, located in an office building, and the structure is steel bar reinforced concrete. Party A has displayed to Party B four certificates of real estate ownership in total including certificates HFD(P)Z (2005) No.113654, HFD(P)Z (2005) No.113655, HFD(P)Z (2005) No.113091 and HFD(P)Z (2005) No.113092.

1.2 Party A, as the owner of the Property, agrees to lease the Property to Party B. Before this Contract is executed, Party A has informed Party B that the Property had been mortgaged.

II. Purpose of Lease 

2.1 Party B promises to Party A that the Property will be leased for office use in compliance with applicable national and municipal provisions on property use and property management.

2.2 Party B guarantees that within the term of the lease, without prior written consent from Party A or prior approval from the competent authority, the aforesaid agreed upon purpose of use will not be changed.

III. Delivery Date and Lease Period

3.1 Both parties agree that the Property be delivered by Party A to Party B on or before December 18, 2015; the lease term for the Property is two years, from January 18, 2016 to January 17, 2018; and that the designated rent-free period is from December 18, 2015 to January 17, 2017.

3.2 When the lease period expires, Party A shall be entitled to take back the Property while Party B shall return on time. If Party B needs to renew lease of the Property, it shall submit a written request of renewal to Party A 6 months before such expiration date and after such request is agreed by Party A, another lease contract shall be executed. If both parties fail to execute another contract within 6 months of such expiry, Party B will be deemed to have given up its renewal request and preemptive right of lease under the same conditions, in which case, it shall return the Property to Party A when the lease period expires.

IV. Rent, Payment Terms and Deadline 

4.1 Both parties agree that the rent for the Property is RMB 6.0 Yuan per square meter of construction floorage per day; the monthly rent is rated at RMB 188,756.00 Yuan (hundred eighty-eight thousand seven hundred fifty-six Yuan flat) (invoice should be provided); and within the rent-free period, Party B does not have to pay rent to Party A.

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4.2 The first installment of rent is payable by Party B in 3-month installments beginning on January 18, 2016 to April 17, 2016 for 566,268.00 Yuan (five hundred sixty-six thousand two hundred sixty-eight Yuan flat); from the second installment on, each rent is payable quarterly, the same rule applies; and the rent shall not be increased within the 2-year term.

4.3 The rent shall be paid by Party B in the following terms: see supplementary articles.

V. Deposit and Other Expenses 

5.1 Both parties agree that Party B shall pay deposit to Party A when it delivers the Property, in the amount of two months’ rent, RMB 377,512.00 Yuan (three hundred seventy-seven thousand five hundred twelve Yuan flat); the deposit shall not be used as rent payment.

  

Upon receipt of deposit, Party A shall issue a voucher of payment receipt to Party B.

      

When the lease is terminated, the deposit received by Party A, barring any deduction of the expense contracted as borne by Party B, shall be refunded to Party B without interests.

5.2 During the term of the lease and the rent-free period, the expenses incurred from the Property such as charges for water, electricity, telecommunication, equipment or property management, parking fee, etc. shall be borne by Party B. Any other relevant expenses shall also be borne by Party B.

VI. Requirements for Use of Property and Repair Liability

6.1 During the term of the lease, upon identification of any damage to or malfunction of the Property or its accessory facilities, Party B shall timely notify Party A to repair, while Party A shall repair within 3 days from the date it is notified by Party B. If it fails to repair within such period, Party B may repair on behalf of and at the expense borne by Party A.

6.2 During the term of the lease, Party B shall reasonably use and protect the Property and its accessory facilities. When any damage or malfunction occurs to the Property or its accessory facilities due to Party B’s improper or unreasonable use, it shall be responsible for repair; if Party B refuses to repair, Party A may repair on behalf of and at the expense borne by Party B.

6.3 During the term of the lease, Party A shall guarantee that the Property and its accessory facilities are safe and can be used for office space. For inspection on and maintenance to the Property, Party A shall notify Party B 3 days in advance. During inspection and maintenance, Party B shall cooperate, and Party A shall reduce the influence on Party B’s use of the Property.

6.4 Where Party B needs to make additional renovations or facilitate additional accessory facilities and equipment, it shall obtain the prior consent in writing from Party A; where an approval by the competent authority is required, Party B shall apply with the competent authority for prior approval.

VII. Property Conditions upon Return 

7.1 Unless Party A agrees Party B’s lease renewal, Party B shall return the Property within the same day when the contracted lease period expires; if return of the Property is delayed without prior consent from Party A, Party B shall pay Party A an occupancy fee for the Property twice of the current rent each day of delay.

7.2 The Property returned by Party B shall be normally usable. When returned, the Property shall be inspected by Party A as acceptable; and expenses respectively payable shall be settled mutually.

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VIII. Sublease, Assignment and Exchange 

8.1 Within the term of the lease, Party B shall not assign, under lease or sublease, the Property or any of its right to any third person.

8.2 Within the term of the lease, Party B shall not assign its rights or obligations under this Contract to others, nor exchange the Property with another property leased to others.

8.3 Within the term of the lease, if any change occurs to the ownership of the Property, Party A shall ensure that the transferee of the Property performs this Contract; however, Party A is not obligated to compensate Party B.

IX. Conditions for Termination of Lease  

9.1 Both parties agree that within the term of the lease, this Contract is terminated on occurrence of any of the following without liabilities borne by either party to the other party.

(I) The right of use for the land occupied by the Property is legally recovered in advance;

(II) The Property is legally requisitioned for the interest of social public;

(III) The Property is legally listed as property to be demolished demanded for urban construction;

(IV) The Property is damaged, lost or assessed as being dangerous;

(V) The Property is now disposed due to its pre-lease mortgage as disclosed by Party A to Party B.

9.2 Both parties agree that on occurrence of any of the following, either party may cancel this Contract by notifying the other party in writing. The contract defaulting party shall pay the other party a default penalty in the amount of six times of the monthly rent; if a loss is incurred by the defaulting party to the other party and the paid default penalty becomes insufficient for compensation of such loss, the balance shall also be compensated if

(I) Party A fails to deliver the Property on time and further fails even within 30 days from when it is urged by Party B;

(II) The Property delivered by Party A is incompliant with this Contract and consequently fails realization of the lease purpose; or such property is defective and endangering Party A’s safety;

(III) The Property is damaged due to Party B’s change of property use without  prior consent from Party A;

(IV) The main structure of the Property is damaged due to Party B’s fault;

(V) Party B presumptuously subleases, assigns the right of lease for, or mutually exchanges the Property with the Property leased to others;

(VI) Party B delays the payment for rent by over one month cumulatively.

X. Default Liability 

10.1 If the Property is defective at the time of delivery, Party A shall repair within 30 days from the day of delivery; and if it fails to repair as deadline, it agrees to reduce rent and change relevant rent articles.

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10.2 During the term of the lease, if Party A fails to perform the contracted repair, maintenance liabilities, causes any damage to the Property, and causes Party B’s property loss or bodily injury, the indemnity liability shall be borne by Party A.

10.3 During the term of the lease, in the absence of any contracted circumstance, if Party A requires to cancel this Contract and take back the Property in advance, it shall notify Party B in writing by 6 months in advance; in addition to refund of the deposit for this lease paid by Party B and subtracted of the expenses payable by Party B (if any) to Party B, it shall also pay Party B an amount of three months’ rent as a default penalty. If Party A’s aforesaid prior written notice for cancellation of contract is given less than 6 months in advance, in addition to the aforesaid default penalty, Party A shall also pay Party B an amount equal to the Property rent for the period whereby such advancement is less than 6 months, as a default penalty.

10.4 If Party B decorates the Property or adds accessory facilities without  prior written consent from Party A or beyond the scope or requirement agreed by Party A in writing, Party A may require Party B to restitute the Property to original conditions and indemnify loss.

10.5 During the term of the lease, in the absence of any contracted circumstance, if Party B requires to cancel this Contract and terminate lease in advance, it shall notify Party A in writing by 6 months in advance; in addition to no refund of the deposit paid by Party B, it shall also pay Party A an amount of 3 months’ rent as a default penalty. 

XI. Other Provisions 

11.1 For other matters related to this Contract, the parties can enter into supplementary provisions. Supplementary provisions of and annexes to this Contract shall be integrate part of this Contract. All characters, handwritten or typed, shall have the same legal effect.  

11.2 When signing this Contract, both parties are fully aware of their respective rights, obligations and responsibilities thereunder and agree to comply with provisions thereof.  If one Party breaches this Contract, the other Party are entitled to damages pursuant to this Contract. 

11.3 Both parties shall resolve any disputes resulting from performance of this Contract through negotiation.  If negotiation did not resolve such dispute, both parties agree to submit the dispute to the Shanghai Arbitration Commission for arbitration. 

11.4 This Contract is executed in four copies with equal legal effects and each Party shall hold two copies. 

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Supplementary Articles

      These supplementary articles supplement the Shanghai Municipal Contract of Property Lease executed by both parties thereof for lease of the Property to Party B (hereafter referred to as “Main Text of this Contract”) and are collectively referred to as “this Contract” with Main Text of this Contract, all schedules and appendixes. If Main Text of this Contract disagrees with these supplementary articles, schedules or appendixes, these supplementary articles and schedules shall prevail.

12.1 Article 1.1 of this Contract is supplemented as follows:

(1)

The Property leased by Party B from Party A under this Contract is located on the entire 35th floor, No.707 Zhangyang Road, Pudong New District, Shanghai (hereafter referred to as “the Building”). 

Before this Contract is executed, Party A has displayed to Party B the four certificates of real estate ownership that are necessary for leasing the Property. The respectively number of these certificates is: HFD(P)Z (2005) No.113654, HFD(P)Z (2005) No.113655, HFD(P)Z (2005) No.113091, and HFD(P)Z (2005) No.113092.

12.2 Article 1.2 of this Contract is supplemented as follows:

      

Before this Contract is executed, Party A has fully advised Party B that the Property has been mortgaged; Party B has admitted its awareness of such fact, and expressed that it will not claim any type of indemnification by Party A or have any other right based on such fact. At any time within the term of the lease, Party A shall be entitled to mortgage the Property, if necessary, without prior consent of Party B who shall actively cooperate with Party A in undertaking corresponding formalities.

12.3 Supplementation of Property Condition under this Contract: 

Party B states that it has visited the Property before this Contract is executed, is adequately acquainted with  the conditions of existing property decorations and facilities, and it agrees with the existing property delivery standard for Party A’s property delivery.

12.4 Articles 4.3 and 5.2 of this Contract are supplemented as follows:

(1) Within the term of the lease and the rent-free period, Party B shall pay Party A or the property management company the rent for the Property, the property management fee, electricity bill, parking fee and other relevant expenses on time and in full. Party B agrees that within the term of the lease and the rent-free period, if Party A or the property management company uniformly increases the property management fee or other expenses for all properties in the Building and notify Party B one month in advance, such increase shall be payable by Party B upon expiry of such one month notice period.

(2) If Party B delays the payment for any amount under this Contract to Party A, including but not limited to rent, property management fee, electricity bill and other expenses; per each day of delay, it shall pay Party A a default penalty at 50% of the accumulated overdue amount. If the payment for rent is delayed by over 10 days, Party A shall be entitled to cancel this Contract.

12.5 Articles 6.1 and 6.3 of this Contract are supplemented as follows:

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(1) Party A’s liability for repairing the Property is limited within the structure of the Property, but such liability excludes any damage due to Party B’s fault.

(2) When Party A repairs, it shall notify Party B in writing by a reasonable period in advance, while Party B shall actively cooperate. Any consequence incurred from Party B’s hindrance of Party A’s repair shall be borne by Party B.

(3) In the event of an emergency (including but not limited to fire, flood, robbery, causality, etc.), Party A or its authorized representative may enter the Property without prior notice. If such emergency is not caused by Party A, it shall not be liable to compensate the damage caused by such entry for the purpose to eliminate dangers and within the reasonable scope, provided that Party A shall explain in writing to Party B in detail after the event.

12.6 Article 6.4 of this Contract is supplemented as follows:

(1) As approved by the competent government authority and consented in writing by Party A or property management company, Party B may decorate or add or reconstruct the Property and/or the facilities, equipment provided by Party A. 

With prior written consent from Party A and filing required, Party B may engage a qualified construction contractor to be responsible for decoration, addition or reconstruction engineering. Party B and the construction contractor engaged shall abide by the applicable provisions, standards and related amendments from time to time promulgated by Party A and the property management company. Party B agrees that, during the decoration, addition or reconstruction engineering, all of the liabilities caused by either Party B or such construction contractor shall be borne by Party B.

(2) All expenses incurred from clause (1), including but not limited to decoration, addition or reconstruction expenses, equipment and material expenses, the taxes and government fees incurred accordingly shall be borne by Party B. Party B shall be responsible for repairing and maintaining the facilities, equipment decorated, added or reconstructed as stipulated under clause (1), while such responsibility does not rest on Party A.

12.7 Both parties agree specifically on the insurance for the Property within the term of the lease as follows: Party B shall not act in any way nullifying the insurance for the Building or any part thereof against fire or others; and Party B shall not act or allow others to act in any way that may increase the premium for such insurance. If such premium is increased due to Party B’s fault, Party A shall be entitled to recover the insurance premiums increased accordingly from Party B without prejudicing its own entitlement to a right or remedy.

     

 If the water or power supply to or the air-conditioning service for the Property is stopped at any time due to any reason not attributable to Party A or any public facility in the Building is stopped of operation, Party A does not have to bear the corresponding indemnity liability to Party B or reduce or exempt Party B’s rent, property management fee or other expenses.

12.8

Both parties agree that:

(1)  Party A is not responsible for security, nor the custody of belongings in the Property;

(2) The provision of security enforcement personnel, management personnel, mechanical or electronic theft proof system of any nature by Party A to the Building or the Property does not obligate Party A to be responsible for security, custody of the Property or belongings therein. Party B shall be solely responsible at any time for the Property or belongings therein; and

(3) Party B shall not reduce or stop the payment for rent or other expenses contracted as payable on 

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account of any issue relevant to security enforcement.

12.9 Rights and Obligations of Party A

(1) Party A’s request or receipt of a default penalty from Party B as contracted does not prejudice or affect Party A’s exercise of any other right or remedy vested under this Contract, including but not limited to the right of taking the Property back.

(2) Party A’s acceptance of Party B’s rent, property management fee and other expenses shall not be deemed as Party A’s waiver of its right to prosecute Party B of the liabilities borne by it due to its default of any provision under this Contract.

(3) Party A’s forbearance for one or several times of Party B’s any default under this Contract does not constitute as a basis for Party A to waive prosecution of Party B’s any continuous, future defaults or impair or affect in any way Party A’s right or remedy to prosecute Party B’s any continuous, future defaults, unless Party A clearly expresses in writing its waiver of prosecuting Party B.

(4) Upon a reasonable prior notice, Party A shall be entitled to bring any future lessee of the Property or relevant personnel to visit the Property at any time reasonable within three months before the lease period is ended or terminated.

(5) Within the term of the lease, Party A shall keep the public areas and facilities in the Building (including roof, main structure, wall, main water pipeline tunnel, main cable, wiring, elevator, escalator, fireproof, security enforcement equipment, air-conditioning equipment) in good use.

12.10 Rights and Obligations of Party B 

(1) Party B shall strictly follow all of the regulations and management rules for the Building.

(2) Within the term of the lease, Party B shall not authorize others to use of occupy the Property or any part therein.

(3) Party B shall cause its employee, contractor, agent (hereafter referred to as “such Personnel”) to abide by and perform all of the articles under this Contract to be abided or performed by Party B. If any loss is incurred by Party A or any third person from any default by such Personnel of this Contract, Party B shall be indemnify.

(4) Before engagement or operation of its business in the Property, Party B shall obtain all licenses, approvals or permits (if required) necessary for opening and operating business from the competent government authorities. Party B shall ensure that such licenses, approvals or permits are fully effective within the term of the lease and compliant with the requirements for such licenses, approvals or permits in every aspect. Furthermore, Party B shall ensure that the business operation activity in the Property is free of violation of applicable laws and regulations; otherwise, all of the liabilities and consequences incurred from its unlawful business operations shall be solely borne by it.

(5) Within the term of the lease, Party B shall not offset or refuse, due to any reason, the payment for the rent, property management fee or other expenses under this Contract payable by it to Party A.

(6) With prior approval from Party A or the property management company, Party B shall be entitled to display its name at the direction signage (if any) in the Building by the fonts and in the way uniformed by Party A. Such fonts will be uniformed through negotiations; Party A has the full right to arrange manufacture and placement at relevant expense borne by Party B.

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(7) Party B shall be entitled to arrange at its own cost in the format approved by Party A or the property management company at the entrance to the Property or on the door; any signage not approved by Party A or the property management company shall not be arranged.

(8) Party B shall not peddle or solicit in any way at any place outside the Property but in the Building.

(9) If goods need to be loaded or unloaded, Party B shall use the goods’ loading or unloading area, entrance or exit and goods’ elevator designated by Party A or the property management company, and such goods shall be loaded or unloaded only within the hours specified by Party A and the property management company. In no event shall Party B move goods with a passenger elevator or escalator. 

12.11 The execution, effectiveness, interpretation, performance of and the resolution of disputes over this Contract shall be governed by the laws of the People's Republic of China. 

12.12 The content listed in a schedule of or appendix to this Contract is intended by both parties to supplement and revise the content of relevant articles of this Contract; if any other article of this Contract is inconsistent with relevant contents of schedule or appendix, the provisions of such schedule or appendix shall prevail.

12.13 Article 11.4 of this Contract is supplemented as follows:

This Contract, including supplementary articles, all appendixes and schedules, are made in four copies, two of which shall be kept respectively by each party with equal legal effects.

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Schedule 1

Part I. 

Delivery day: December 18, 2015

Rent Due Date: January 17, 2016

Lease Term: from January 18, 2016 to January 17, 2018

Rent-Free Period: from December 18, 2015 to January 17, 2016

Part II. 

Leased floorage: The construction floorage of the Property measures about 1,034.28m2.

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Schedule 2

Part I.

Rent: within the term of the lease, Party B shall pay Party A the rent for the Property in every three months as an installment; the rent for the first installment shall be paid together with the deposit for lease to Party A within 7 working days from the execution date of this Contract. Thereafter, 

the rent for each installment shall be paid  at least 10 days before each payment period begins.

The rent for the Property is RMB 6.0 Yuan per square meter of construction floorage per day.  The monthly rent is RMB 188,756.00 Yuan (or one hundred eighty-eight thousand seven hundred fifty-six Yuan flat).

The rent for the first installment is payable quarterly from January 18, 2016 to April 17, 2016 at 566,268.00 Yuan (in words: five hundred sixty-six thousand two hundred sixty-eight Yuan flat). 

For all subsequent payments, rent is payable for every 3 months and the same rule applies. The rent shall not be increased for two years.

Part II.

Property management fee: the current property management fee for the Property is rated at monthly RMB 25.0 Yuan per square meter of construction floorage and totaled at monthly RMB 25,857.00 Yuan (or twenty-five thousand eight hundred fifty-seven Yuan flat).

Part III.

Deposit for lease: the Property rent for two months (RMB 377,512.00 Yuan or  three hundred seventy-seven thousand five hundred twelve Yuan flat).

Part IV.

Payment terms: All amounts payable by Party B to Party A under this Contract shall be paid in RMB to Party A’s bank account as follows, or in any other way separately notified by Party A in writing. Any bank fee incurred by Party B shall be borne by Party B.

Account name: Xinjiang Dushanzi Tianli Technology Co., Ltd.

Account bank: Dushanzi Subbranch of Xinjiang Kelamayi Oil Branch of Industrial and Commercial Bank of China

Account number at account bank: 

Bank number of account bank: 

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Schedule 3

Detailed Information of Both Parties

Party A: Xinjiang Dushanzi Tianli High/new-tech Joint Stock Co., Ltd.

Registered address: No.2 East Daqing Road, Dushanzi District, Xinjiang

Mailing address: No.2 East Daqing Road, Dushanzi District, Xinjiang

Legal representative: Chen Junhao

Tel.: 0992-3658058

Fax: 0992-3659999

Party B: Shanghai DianNiu Internet Finance Information Service Co., Ltd.

Registered address: Rooms 102-34, Floor 1, Building 1, No.38 Debao Road, Shanghai Free Trade Zone

Mailing address: No.1980 Luoxiu Road, Minhang District, Shanghai

Legal representative: Zeng Erxin

Tel.: 15988179261

Fax:

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	Lessor (Party A): Xinjiang Dushanzi Tianli  Technology Co., Ltd.

Nationality: Chinese

Legal representative: Chen Junhao

Registration certification /number of identity card: 

(Seal)

	Lessee (Party B): Shanghai DianNiu Internet Finance Information Service Co., Ltd.

Nationality: Chinese

Legal representative: Zeng Erxin

Registration certification /number of identity card:

(Seal)

	

Address: No.2 East Daqing Road, Dushanzi District, Xinjiang

Postcode: 833699

Tel.: 0992-3658058

Signed on: December 11, 2015

Signed in: Shanghai

	

Address: No.1980 Luoxiu Road, Minhang District, Shanghai

Postcode: 201100

Tel.: 15988179261

Signed on: December 11, 2015

Signed in: Shanghai

  Name of brokerage provider: Shanghai Shengbang House Property Brokerage Co., Ltd. 

  Name of broker: Yuan Zhigang

13Converted by EDGARwiz

INDEMNIFICATION ESCROW AGREEMENT

 

This INDEMNIFICATION ESCROW AGREEMENT (this “Agreement”) dated as of [●], 2018 is entered into by and among Golden Bull Limited (the “Company”), ViewTrade Securities, Inc. (the “Underwriter”), and Pearlman Law Group LLP (the “Escrow Agent”).

 

WITNESSETH:

 

WHEREAS, the Company is offering (the “Offering”) on a firm commitment basis up to 2,300,000 ordinary shares of the Company, par value $0.01 (including up to 300,000 ordinary shares that the underwriters in the offering have the option to purchase) (the “Shares”), at an offering price of $[●] per share;

 

WHEREAS, the Company and Underwriter expect that the Offering will close on or before the close of business on [●], 2018 (the “Closing Date”);

 

WHEREAS, upon the closing of the Offering, the Company has agreed to deposit an aggregate amount of Five Hundred Thousand Dollars ($600,000)(the “Escrowed Funds”) from the proceeds of the Offering to be received by the Company with the Escrow Agent in a non-interest bearing escrow account, to be held, invested and disbursed by the Escrow Agent pursuant to the terms and conditions of this Agreement;

 

WHEREAS, the Escrow Agent is willing to hold the Escrowed Funds and Investment Gain Funds (as such term is defined below) in escrow pursuant to and subject to the terms and conditions of this Agreement; and

 

NOW, THEREFORE, in consideration of the mutual promises herein contained and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

1. 

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

2. 

Delivery of the Escrowed Funds. Upon the closing of the Offering, the Escrowed Funds shall be delivered on behalf of the Company to the Escrow Agent, as escrow agent, into a non-interest bearing escrow account maintained by the Escrow Agent (the “Escrow Account”) by wire transfer in accordance with the wire transfer instructions set forth on Schedule A hereto. In no event shall the aggregate amount of Escrowed Funds delivered to the Escrow Account be less than Five Hundred Thousand Dollars ($600,000).

 

3.

Escrow Agent to Hold and Disburse the Escrowed Funds and Investment Gain Funds. The Escrow Agent will retain the Escrowed Funds and Investment Gain Funds in an escrow account and disburse the Escrowed Funds and Investment Gain Funds pursuant to the terms of this Agreement, as follows:

 

a.

The Escrowed Funds shall be held by the Escrow Agent for the purpose of satisfying the initial $600,000 of the indemnification obligations of the Company, with respect to the Escrowed Funds, pursuant to Section 2 of the Underwriting Agreement dated [●], 2018 by and between the Company and the Underwriter, for a period of two (2) years from the closing of the Offering. Disbursement of such Escrowed Funds and Investment Gain Funds shall be determined by an independent third-party trustee, to be chosen by mutual consent of the Company and the Underwriter.

 

b.

Notwithstanding the last sentence of the prior paragraph, in the event that any litigation or proceeding arising out of any matter in connection with the Offering in connection to the Underwriter acting in its capacity as underwriter within two (2) years following the Closing Date and in which the Company, the Underwriter, the Escrow Agent or the Escrowed Funds becomes the subject of such litigation or proceeding, the Underwriter and the Company hereby 

authorize the Escrow Agent, at the Underwriter’s sole instruction upon Underwriter’s written notice to the Escrow Agent if not otherwise so required, to release and deposit the Escrowed Funds with the clerk of the court in which the litigation is pending for the purpose of indemnifying and defending the Underwriter such litigation and proceeding, and thereupon the Escrow Agent shall be relieved and discharged of any further responsibility with regard thereto to the extent determined by any such court. The Company and the Underwriter further hereby authorize the Escrow Agent, if it receives conflicting claims to any of the Escrowed Funds, is threatened with litigation in its capacity as escrow agent under this Agreement, or if the Escrow Agent determines it is necessary to do so for any other reason relating to this Agreement or the Offering, to interplead all interested parties in any court of competent jurisdiction and to deposit the Escrowed Funds with the clerk of that court and thereupon the Escrow Agent shall be relieved and discharged of any further responsibility hereunder to the parties from which they were received to the extent determined by such court.

 

c.

Upon written instruction of the Company, with a copy to the Underwriter the Escrow Agent may invest the Escrowed Funds during the term of the Agreement as follows:

 

i.

The Escrowed Funds may be invested in issuers listed on U.S. national securities exchanges; provided that (1) no investments may be made in the Company’s securities; (2) no more than 20% of the Escrowed Funds may be invested in one issuer; (3) no more than 50% of the Escrowed Funds may be invested in issuers that have; (A) a market capitalization of less than $1.0 billion; (B) been public for less than two years; and (C) less than $1.0 million in average daily volume for last 30 days.

ii.

In the event the aggregate value of the Escrowed Funds plus the Investment Gain Funds in the Escrow Account decreases to less than 81% of the original amount ($600,000) of Escrowed Funds (“Minimum Equity”) for more than 20 consecutive trading days the Company shall promptly (but no later than 10 calendar days following the 20 consecutive trading days following the decrease of less than 81%) add funds to the Escrow Account to maintain the Minimum Equity.

 

iii.

Upon the account reaching Minimum Equity, the Company may not open any additional positions until the account is above the Minimum Equity.

 

iv.

As soon as possible after the Closing, the Escrow Agent shall establish a brokerage account in the Company’s name with a FINRA registered broker-dealer chosen by the Company and reasonably satisfactory to the Underwriter (the “Escrow Broker”). All proposed transactions will be submitted by the Company in writing to the Underwriter with a confirmation by the Company that such transaction(s) meet the criteria set forth in Sections 3(c)(i)-(iii). The Underwriter will have two business days after receipt to review the submission. Unless the Underwriter disagrees in writing that the transaction(s) meet the criteria set forth in Section 3(c)(i)-(iii) prior to the end of the second business day after receipt of the written submission by the Company, the Company may submit the transaction request to the Escrow Agent for submission to the Escrow Broker with a copy to the Underwriter. The Escrow Agent shall instruct the Escrow Broker to submit confirmations of all transactions to the Escrow Agent, the Company and the Underwriter.

 

v.

All income derived from the investments pursuant to this Section 3(c) in excess of the Escrowed Funds (“Investment Gain Funds”) shall be disbursed to the Company provided in the manner of Section 3(a) of this Agreement, provided that to the extent Investment Gain Funds exceed $50,000 in excess of the Minimum Equity, the Company shall be permitted to request a disbursement of such excess funds in an amount of no less than $50,000 on March 31, June 30, September 30 or December 31 of any year during the term of this Agreement prior to the two year period set forth in Section 3(a).

 

4.

Exculpation and Indemnification of Escrow Agent.

 

a.

The Escrow Agent shall have no duties or responsibilities other than those expressly set forth herein. The 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 other than as set forth herein, or to enforce any obligation of any person to perform any other act. The Escrow Agent shall be under no liability to the other parties hereto or anyone else, by reason of any failure, on the part of any party hereto or any maker, guarantor, endorser or other signatory of a document or any other person, to perform such person’s obligations under any such document. Except for amendments to this Agreement referenced below, and except for written instructions given to the Escrow Agent by the Company and the Underwriter relating to the Escrowed Funds, the Escrow Agent shall not be obligated to recognize any agreement between or among any of the Company and the Underwriter, notwithstanding that references thereto may be made herein and the Escrow Agent has knowledge thereof.

 

b.

The Escrow Agent shall not be liable to the Company, the Underwriter, or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report, or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained), which is reasonably believed by the Escrow Agent to be genuine and to be signed or presented by the proper party or parties hereunder. The Escrow Agent shall not be bound by any of the terms thereof, unless evidenced by written notice delivered to the Escrow Agent signed by the proper party or parties hereunder and, if the duties or rights of the Escrow Agent are affected, unless it shall give its prior written consent thereto.

 

c.

The Escrow Agent shall not be responsible for the sufficiency or accuracy of the form, or of the execution, validity, value or genuineness of, any document or property received, held or delivered to it hereunder, or of any signature or endorsement thereon, or for any lack of endorsement thereon, or for any description therein; nor shall the Escrow Agent be responsible or liable to the Company, the Underwriter, or to anyone else in any respect on account of the identity, authority or rights, of the person executing or delivering or purporting to execute or deliver any document or property or this Agreement. Except as otherwise set forth herein, the Escrow Agent shall have no responsibility with respect to the use or application of the Escrowed Funds pursuant to the provisions hereof.

 

d.

The Escrow Agent shall have the right to assume, in the absence of written notice to the contrary from the proper party or parties hereunder, that a fact or an event, by reason of which an action would or might be taken by the Escrow Agent, does not exist or has not occurred, without incurring liability to the Company, the Underwriter, or to anyone else for any action taken or omitted to be taken or omitted, in good faith and in the exercise of its own best judgment, in reliance upon such assumption.

 

e.

To the extent that the Escrow Agent becomes liable for the payment of taxes, including withholding taxes, in respect of the Investment Gain Funds, or any payment made hereunder, the Escrow Agent may pay such taxes from the Escrowed Funds; and the Escrow Agent may withhold from any payment of the Escrowed Funds and Investment Gain Funds such amount as the Escrow Agent estimates to be sufficient to provide for the payment of such taxes not yet paid, and may use the sum withheld for that purpose. The Escrow Agent shall be indemnified and held harmless against any liability for taxes and for any penalties in respect of taxes, on such investment income or payments in the manner provided in Section 4(f).

 

f.

The Escrow Agent will be indemnified and held harmless by the Company and Underwriter from and against all expenses, including all counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or proceeding involving any 

claim, or in connection with any claim or demand, which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, except for claims relating to gross negligence or reckless misconduct by the Escrow Agent or breach of this Agreement by the Escrow Agent, or the monies or other property held by it hereunder. Promptly, but no later than ten (10) business days, after the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall, if a claim in respect thereof is to be made by the Escrow Agent against the Company, notify the Company in writing, but the failure by the Escrow Agent to give such notice shall not relieve the Company from any liability which the Company may have to the Escrow Agent hereunder, unless the failure of the Escrow Agent to give such notice prejudices or otherwise impairs the Company’s ability to defend any demand, claim, action suit or proceeding. Notwithstanding any obligation to make payments and deliveries hereunder, the Escrow Agent may retain and hold for such time as it deems necessary such amount of monies or property as it shall, from time to time, reasonably deem sufficient to indemnify itself for any such loss or expense.

 

g.

For purposes hereof, the term “expense or loss” shall include all amounts paid or payable to satisfy any claim, demand or liability, or in settlement of any claim, demand, action, suit or proceeding settled with the express written consent of the Escrow Agent, and all costs and expenses, including, but not limited to, counsel fees and disbursements, paid or incurred in investigating or defending against any such claim, demand, action, suit or proceeding.

 

5.

Indemnification by the Company. The indemnification provisions subject to this Agreement are set forth in Section 6 of the Underwriting Agreement dated [●], 2018 by and between the Company and the Underwriter, which Section 6 shall be deemed to be a part of this Agreement.

 

6. 

Termination of Agreement and Resignation of Escrow Agent.

 

a.

This Agreement shall terminate upon disbursement of all of the Escrowed Funds and Investment Gain Funds provided that the rights of the Escrow Agent and the obligations of the Company and the Underwriter under Section 4 shall survive the termination hereof.

 

b.

The 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 fifteen (15) business days’ written notice thereof (the “Notice Period”). As soon as practicable after its resignation, the Escrow Agent shall, if it receives notice from the Company and the Underwriter within the Notice Period, turn over to a successor escrow agent appointed by the Company and the Underwriter all Escrowed Funds and Investment Gain Funds (less such amount as the Escrow Agent is entitled to continue to retain and hold in escrow pursuant to Section 4(f) and to retain pursuant to Section 7) upon presentation of the document appointing the new escrow agent and its acceptance thereof. If no new agent is so appointed within the Notice Period, the Escrow Agent shall return the Escrowed Funds and Investment Gain Funds to the Company without interest or deduction.

 

7.

Form of Payments by Escrow Agent.

 

a.

Any payments of the Escrowed Funds by the Escrow Agent pursuant to the terms of this Agreement shall be made by wire transfer unless directed to be made by check by the Underwriter and/or Company.

 

b.

All amounts referred to herein are expressed in United States Dollars and all payments by the Escrow Agent shall be made in such dollars.

 

8.

Compensation. Escrow Agent shall be entitled to $12,500 as compensation for its services rendered under this Agreement, which amount shall be delivered by the Company to an account designated by the Escrow Agent on the same date when the Escrowed Funds are delivered into the Escrow Account.

 

9.

Notices. All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, on the business day of such delivery (as evidenced by the signed certified mail card), (iii) if delivered by overnight courier (with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 6:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation of delivery generated by the sending party’s telecopier machine), or (v) if delivered by email on the business day of such delivery (as evidenced by delivery confirmation). If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 9), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender). All such notices, demands, consents, requests, instructions and other communications will be sent to addresses or facsimile numbers as applicable set forth hereunder.

 

If to the Company, to: 

 

Golden Bull Limited

707 Zhang Yang Road, Sino Life Tower, F35,

Pudong, Shanghai, China 200120

 

with a copy to (which shall not constitute notice):

 

Ellenoff Grossman & Schole LLP

Attention: Ari Edelman, Esq.

1345 Avenue of the Americas, 11th Floor

New York, New York 10105

 

If to the Underwriter, to:

 

ViewTrade Securities, Inc.

Attention: Doug K. Aguililla

7280 West Palmetto Park Road, Suite 310

Boca Raton, FL 33433

 

with a copy to (which shall not constitute notice):

 

Kaufman & Canoles, P.C.

Attention: Anthony W. Basch, Esq.

Two James Center, 14th Floor

1021 E. Cary St.

Richmond, VA 23219

 

If to the Escrow Agent, to: 

 

Pearlman Law Group LLP

200 South Andrews Avenue, Suite 901

Fort Lauderdale, FL 33301

Attn: Charles Pearlman

 

10.

Further Assurances. From time to time on and after the date hereof, the Company and the Underwriter shall deliver or cause to be delivered to the Escrow Agent such further documents and 

instruments and shall do and cause to be done such further acts as the Escrow Agent shall reasonably request (it being understood that the Escrow Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

 

11.

Consent to Service of Process. The Company, the Underwriter and the Escrow Agent hereby irrevocably consent to the jurisdiction of the courts of the State of Florida and of any Federal court located in such state in connection with any action, suit or proceedings arising out of or relating to this Agreement or any action taken or omitted hereunder, and waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by certified or registered mail directed to it at the address listed hereto.

  

12.

Miscellaneous.

 

a.

This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing such instrument to be drafted. The terms “hereby,” “hereof,” “hereunder,” and any similar terms, as used in this Agreement, refer to the Escrow Agreement in its entirety and not only to the particular portion of this Agreement where the term is used. The word “person” shall mean any natural person, partnership, corporation, government and any other form of business of legal entity. All words or terms used in this Agreement, regardless of the number or gender in which they were used, shall be deemed to include any other number and any other gender as the context may require. This Agreement shall not be admissible in evidence to construe the provisions of any prior agreement.

 

b.

This Agreement and the rights and obligations hereunder of the Company and the Underwriter may not be assigned without the consent of the Escrow Agent, other than by laws of descent or operation of law. This Agreement and the rights and obligations hereunder of the Escrow Agent may be assigned by the Escrow Agent, with the prior consent of the Company. This Agreement shall be binding upon and inure to the benefit of each party’s respective successors, heirs and permitted assigns. No other person shall acquire or have any rights under or by virtue of this Agreement. This Agreement may not be changed orally or modified, amended or supplemented without an express written agreement executed by the Escrow Agent, the Company and the Underwriter, which consent shall not be unreasonably withheld. This Agreement is intended to be for the sole benefit of the parties hereto and their respective successors, heirs and permitted assigns, and none of the provisions of this Agreement are intended to be, nor shall they be construed to be, for the benefit of any third person.

 

c.

This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Florida. The representations and warranties contained in this Agreement shall survive the execution and delivery hereof and any investigations made by any party. The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect any of the terms thereof.

  

13.

Execution of Counterparts. This Agreement may be executed in any number of counterparts, by facsimile or other form of electronic transmission, each of which shall be deemed to be an original as of those whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more of the counterparts hereof, individually or taken together, are signed by all parties hereto.

 

[THE REMAINDER OF THE PAGE IS INTENTIONALLY LEFT BLANK]

 

 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the day and year first above written.

  

				
	ESCROW AGENT: 

	 

	 

	 

	 

	PEARLMAN LAW GROUP LLP

	 

	 

	 

	 

	By:

	 

	 

	Name: 

	 
	 

	Title:

	            

	 

  

COMPANY:

 

GOLDEN BULL LIMITED

  

			
	By: 

	 

	 

	Name: 

	Erxin Zeng

	 

	Title: 

	Chief Executive Officer

	 

 

UNDERWRITER:

 

VIEWTRADE SECURITIES, INC.

  

			
	By: 

	 

	 

	Name: 

	Douglas K. Aguililla

	 

	Title: 

	Director, Investment Banking

	 

 

Indemnification Escrow Agreement

 

Schedule A

  

ACCOUNT NAME:                                           TRUST ACCOUNT

ACCOUNT NO.:

ABA ROUTING NO.:

SWIFT CODE: 

BANK:

REFERENCE: ATTN:

 

TO BE WIRED IN U.S. DOLLARS

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