Document:

Exhibit 10.2

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the "Agreement") is made and entered into as of this 31st day of December, 2018 (the "Commencement Date"), by and between FIRST FINANCIAL NORTHWEST BANK (which, together with any successor thereto which executes and delivers the assumption agreement provided for in Section 6(a) hereof or which otherwise becomes bound by all of the terms and provisions of this Agreement by operation of law, is hereinafter referred to as the "Bank"), and Randy T. Riffle (the "Employee").

WHEREAS, the Employee is currently serving as Executive Vice President and Chief Credit Officer of the Bank: and

WHEREAS, the board of directors of the Bank (the "Board") recognizes that the possibility of a change in control of the Bank or of its holding company, First Financial Northwest, Inc. (the "Company"), may exist and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of key management to the detriment of the Bank, the Company and its stockholders; and

WHEREAS, the Board believes it is in the best interests of the Bank to enter into this Agreement with the Employee in order to assure continuity of management of the Bank and to reinforce and encourage the continued attention and dedication of the Employee to the Employee's assigned duties without distraction in the face of potentially disruptive circumstances arising from the possibility of a change in control of the Company and/or the Bank, although no such change is now contemplated; and

WHEREAS, the Board has approved and authorized the execution of this Agreement with the Employee;

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements of the parties herein, it is AGREED as follows:

1.            Certain Definitions.

(a)      The term "Agreement Renewal Date" shall mean the December 31 next following the Commencement Date and each anniversary thereof.

(b)      The term "Change in Control" means (1) an offeror other than the Company purchases shares of stock of the Company or the Bank pursuant to a tender or exchange offer for such shares; (2) an event of a nature that results in the acquisition of control of the Company or the Bank within the meaning of the Savings and Loan Holding Company Act under 12 U.S.C. Section 1467a (or any successor statute) and applicable regulations or requires the filing of a notice with the Federal Reserve Board or the Federal Deposit Insurance Corporation ("FDIC"); (3) any person (as the term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 ("Exchange Act")) that is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly of securities of the Company or the Bank representing 25% or more of the combined voting power of the Company's or the Bank's outstanding securities; (4) individuals who are members of the board of directors of the Company immediately following the Commencement Date or who are members of the Board immediately following the Commencement Date (in each case, the "Incumbent Board") cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the Commencement Date whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board or whose nomination for election by the Company's stockholders was approved by the nominating committee serving under an Incumbent Board, shall be considered a member of the Incumbent Board; or (5) consummation of a plan of reorganization, merger, acquisition, consolidation, sale of all or 

 

substantially all of the assets of the Company or a similar transaction in which the Company is not the resulting entity, provided that the term "Change in Control" shall not include an acquisition of securities by an employee benefit plan of the Bank or the Company.

(c)      The term "Commencement Date" means the date of this Agreement.

(d)      The term "Consolidated Subsidiaries" means any subsidiary or subsidiaries of the Company (or its successors) that are part of the affiliated group (as defined in Section 1504 of the Internal Revenue Code of 1986, as amended (the "Code"), without regard to subsection (b) thereof) that includes the Bank, including but not limited to the Company.

(e)      The term "Date of Termination" means the date upon which the Employee ceases to serve as an employee of the Bank.

(f)      The term "Involuntary Termination" means the termination of the employment of Employee (i) by the Bank, without his express written consent; or (ii) by the Employee by reason of a material diminution of or interference with his duties, responsibilities or benefits, including (without limitation) any of the following actions unless consented to in writing by the Employee: (1) a requirement that the Employee be based at any place other than Renton, Washington, or within a radius of 35 miles from the location of the Bank's administrative offices as of the Commencement Date, except for reasonable travel on Company or Bank business; (2) a material demotion of the Employee; (3) a material reduction in the number or seniority of personnel reporting to the Employee or a material reduction in the frequency with which, or in the nature of the matters with respect to which such personnel are to report to the Employee, other than as part of a Bank- or Company-wide reduction in staff; (4) a reduction in the Employee's salary other than as part of an overall program applied uniformly and with equitable effect to all members of the senior management of the Bank; (5) a material permanent increase in the required hours of work or the workload of the Employee; or (6) any purported termination of the Employee's employment, except for Termination for Cause (and, if applicable, the requirements of Section 1(i) hereof), which purported termination shall not be effective for purposes of this Agreement. The term "Involuntary Termination" does not include Termination for Cause, retirement or suspension or temporary or permanent prohibition from participation in the conduct of the Bank's affairs under Section 8 of the Federal Deposit Insurance Act.

(g)      The term "Restriction Period" shall mean the one-year period commencing on the date of the Employee's Date of Termination.

(h)      The term "Section 409A" shall mean Section 409A of the Code and the regulations and guidance of general applicability issued thereunder.

(i)      The terms "Termination for Cause" and "Terminated for Cause" mean termination of the employment of the Employee because of the Employee's personal dishonesty, willful misconduct, breach of a fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule, or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or (except as provided below) material breach of any provision of this Agreement. No act or failure to act by the Employee shall be considered willful unless the Employee acted or failed to act with an absence of good faith and without a reasonable belief that his action or failure to act was in the best interest of the Company or the Bank. The Employee shall not be deemed to have been Terminated for Cause unless and until there shall have been delivered to the Employee a copy of a resolution, duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board of Directors at a meeting of the Board duly called and held for such purpose (after reasonable notice to the Employee and an 

 

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opportunity for the Employee, together with the Employee's counsel, to be heard before the Board), stating that in the good faith opinion of the Board of Directors the Employee has engaged in conduct described in the preceding sentence and specifying the particulars thereof in detail.

2.        Term. The term of this Agreement shall be a period of three years beginning on the Commencement Date, subject to earlier termination as provided herein. Beginning on the Agreement Renewal Date, and on each subsequent Agreement Renewal Date, the term of this Agreement shall be extended for a period of one year in addition to the then-remaining term, provided that within the 90 day period ending on such Agreement Renewal Date, the Board of Directors does not inform the Employee in writing that the Agreement will not be extended. Reference herein to the term of this Agreement shall refer to both such initial term and such extended terms.  Notwithstanding anything herein to the contrary, this Agreement shall immediately terminate, and no payments shall be due hereunder, if: (a) either the Bank terminates the Employee's employment (other than on account of Termination for Cause) or the Employee's employment is terminated in the event of Involuntary Termination by the Employee, prior to the effective date of a Change in Control, (b) the Employee becomes entitled to receive payments from the Bank on account of Involuntary Termination under any other agreement, or (c) the Employee voluntarily terminates employment with the Bank for any reason that does not constitute an Involuntary Termination.

3.         Severance Benefits.

(a)      If after a Change in Control, the Bank shall terminate the Employee's employment (other than on account of Termination for Cause), or employment is terminated in the event of Involuntary Termination by the Employee, within 12 months following a Change in Control, the Bank shall (i) pay the Employee his base salary through the Date of Termination; (ii) pay the Employee an amount equal to one times his base salary (determined as of the Date of Termination, and disregarding any incentive or other extraordinary compensation, such amount being referred to herein as "Base Salary"), with such amount being paid ratably over a period of one year, commencing on the Employee's Date of Termination (the "One-Year Period"); (iii)  pay the Employee's prorated portion of any incentive or bonus payments, with such payments being made ratably over the One-Year Period; (iv) continue to provide, at the Bank's expense, for the One-Year Period, the medical, dental, vision and disability insurance coverage that would have been provided to the Employee had he remained employed with the Bank (subject to the availability of such insurance to the Employee, and if such insurance is not available to the Employee, a cash equivalent benefit shall be provided, which shall be paid ratably over the One-Year Period); and (v) pay to the Employee in a lump sum in cash, within 25 days after the later of the date of such Change in Control or the Date of Termination, an amount equal to 0.99 times the Employee's Base Salary.  Notwithstanding the foregoing, if the Bank's providing continuing health insurance benefits under this Section 3(a) would violate the nondiscrimination requirements under the Patient Protection and Affordable Care Act and the regulations and guidance of general applicability issued thereunder ("PPACA"), so as to result in the imposition of penalties under the PPACA, then the Bank shall revise this Section 3(a) in such manner as is necessary to comply with the PPACA, provided that such reformation provides the Employee with an equivalent economic benefit had this sentence not applied (determined without regard to tax consequences) and does not result in a violation of Section 409A.  All payments due hereunder shall be subject to applicable tax and other withholdings.  No payment shall be made under this Section 3 unless the Employee timely executes a release substantially in the form attached as Exhibit A hereto. Payments under this Section 3 are subject to the restrictions and conditions set forth in this Agreement.

(b)     The Employee shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Agreement be reduced by any compensation earned by the Employee as the result of employment by another employer, by retirement benefits after the Date of 

 

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Termination or otherwise. This Agreement does not constitute a contract of employment or impose on the Company or the Bank any obligation to retain the Employee, to change the status of the Employee's employment, or to change the Company's or the Bank's policies regarding termination of employment.

(c)      If and to the extent that the compensation provided for under this Agreement is subject to Section 409A, then notwithstanding the provisions of Section 3(a) to the contrary, the payment of such compensation that is subject to Section 409A:

(i)      shall be payable only if the Employee's termination of employment also constitutes a "separation from service" within the meaning of Section 409A, taking into account the relevant rules and presumptions in the Section 409A regulations;

(ii)      shall be considered made under a "separation pay plan" (within the meaning of Section 409A) to the extent such payment may be treated as made under a separation pay plan. Any additional amounts that may be due the Employee under Section 3(a)(iii) shall be (A) considered deferred compensation for purposes of Section 409A, (B) treated as paid after all separation pay plan payments are made, and (C) subject to subparagraph (iii) below; and

(iii)      if this subparagraph (iii) applies, then amounts that are considered to be deferred compensation under Section 409A shall not be paid earlier than six months after the Employee's separation from service (as defined in Section 3(c)(i) above), if the Employee is a "specified employee" (within the meaning of Section 409A). The payment that is delayed on account of the preceding sentence shall be made on the 185th day following the date of the Employee's separation from service, as herein defined.

The purpose of this Section 3(c) is to cause the Agreement to comply with Section 409A, and these provisions (and the Agreement) shall be administered and interpreted accordingly.

(d)      Temporary Suspension or Prohibition.  If the Employee is suspended and/or temporarily prohibited from participating in the conduct of the Bank's affairs by a notice served under Section 8(e)(3) or (g)(1) of the FDIA, 12 U.S.C. Section 1818(e)(3) and (g)(1), or pursuant to Section 30.12.040 of the Revised Code of Washington (R.C.W.), the Bank's obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, the Bank may in its discretion (i) pay the Employee all or part of the compensation withheld while its obligations under this Agreement were suspended, and (ii) reinstate in whole or in part any of its obligations which were suspended, all in a manner that does not violate Section 409A.

(e)      Permanent Suspension or Prohibition.  If the Employee is removed and/or permanently prohibited from participating in the conduct of the Bank's affairs by an order issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C. Section 1818(e)(4) and (g)(1), or pursuant to R.C.W. Section 30.12.040, all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.

(f)      Default of the Bank.  If the Bank is in default (as defined in Section 3(x)(1) of the FDIA), all obligations under this Agreement shall terminate as of the date of default, but this provision shall not affect any vested rights of the contracting parties.

(g)      Termination by Regulators.  All obligations under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary for the continued operation of the Bank: (1) at the time the FDIC enters into an agreement to provide assistance to 

 

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or on behalf of the Bank under the authority contained in Section 13(c) of the FDIA; or (2) by the FDIC, at the time it approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Director to be in an unsafe or unsound condition.  Any rights of the parties that have already vested, however, shall not be affected by any such action.

(h)      Reductions of Benefits. Notwithstanding any other provision of this Agreement, if payments and the value of benefits received or to be received under this Agreement, together with any other amounts and the value of benefits received or to be received by the Employee, would cause any amount to be nondeductible by the Company or any of the Consolidated Subsidiaries for federal income tax purposes pursuant to or by reason of Code Section 280G, then payments and benefits under this Agreement shall be reduced (not less than zero) to the extent necessary so as to maximize the economic present value of benefits to be received by the Employee, as determined by the Compensation Committee of the Company Board of Directors as of the date of the Change in Control using the discount rate required by Code Section 280G(d)(4), without causing any amount to become nondeductible pursuant to or by reason of Code Section 280G.

(i)      Further Reductions.  Any payments made to the Employee pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. Section 1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.  Any payments made to the Employee pursuant to this Agreement also are subject to the Employee complying with the requirements of Section 4.  If those requirements are not met, then amounts payable under this Section 3 are subject to reduction or reimbursement as provided for in Section 4.

(j)      No Duplicative Payments.   Any amount that may be payable hereunder, of whatever nature, shall be reduced on a dollar for dollar basis by any amount received by the Employee from the Bank on account of his Involuntary Termination under any other agreement.

4.            Nonsolicitation; Nonraiding; Nondisclosure.

(a)     During the Restriction Period, the Employee shall not solicit any Customers for services or products then provided by the Company, the Bank or the Consolidated Subsidiaries.  For purpose of this Section, "Customers" are defined as (1) all customers serviced by the Company, the Bank, or any of the Consolidated Subsidiaries as of the Employee's Date of Termination, (2) all potential customers whom the Company, the Bank or any of the Consolidated Subsidiaries actively solicited at any time during the 12-month period ending on the Employee's Date of Termination, and (3) all successors, owners, directors, partners and management personnel of the Customers described in (1) or (2).

 (b)    The Employee recognizes that the workforce of the Company and the Bank is a vital part of their businesses; therefore, during the Restriction Period, the Employee shall not directly or indirectly recruit or solicit any Employee (as defined below) to leave his or her employment with the Company, the Bank or any of the Consolidated Subsidiaries. Without limiting the foregoing, this includes that the Employee shall not (1) disclose to any third party the names, backgrounds, or qualifications of any of the Employees or otherwise identify them as potential candidates for employment, or (2) personally or through any other person approach, recruit, interview or otherwise solicit Employees to work for any other employer.  For purposes of this Section, "Employees" means all employees working for the Company, the Bank or any of the Consolidated Subsidiaries at the time of the Employee's Date of Termination.

(c)      In the course of employment, the Employee may have access to confidential information and trade secrets relating to the business of the Bank or the Company. Except as required in 

 

 

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the course of employment by the Bank, the Employee shall not, without the prior written consent of the Board of Directors, directly or indirectly disclose to anyone any confidential information relating to the Bank, the Company or any financial information, trade secrets or "know-how" that is germane to the Bank's or the Company's business and operations. The Employee recognizes and acknowledges that any financial information concerning any of the customers of the Bank, the Company or any affiliated entity, as may exist from time to time, is strictly confidential and is a valuable, special and unique asset of their businesses.  The Employee shall not, either before or after termination of this Agreement, disclose to anyone said financial information, or any part thereof, for any reason or purposes whatsoever.

NOTICE:  Notwithstanding the foregoing nondisclosure obligations, pursuant to 18 USC Section 1833(b), the Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Additionally, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual: (a) files any document containing the trade secret under seal; and (b) does not disclose the trade secret, except pursuant to court order. 

(d)      In the event the Employee violates any provision in this Section 4, the Employee will be subject to damages and because of the relationship of employer and employee, it is hereby agreed injunctive relief is necessary for the Company and the Bank to enforce these provisions of the Agreement to protect its business and good will.  The Bank may reduce or eliminate payments due under this Agreement, or seek reimbursement of such payments, as necessary to mitigate such damages.

5.           Attorneys' Fees. If the Employee is purportedly Terminated for Cause and the Bank denies payments and/or benefits under Section 3(a) of this Agreement on the basis that the Employee experienced Termination for Cause, but it is determined by a court of competent jurisdiction or by an arbitrator pursuant to Section 13 that cause as contemplated by Section 1(i) of this Agreement did not exist for termination of the Employee's employment, or if in any event it is determined by any such court or arbitrator that the Bank has failed to make timely payment of any amounts or provision of any benefits owed to the Employee under this Agreement, the Employee shall be entitled to reimbursement for all reasonable costs, including attorneys' fees, incurred in challenging such termination of employment or collecting such amounts or benefits. Such reimbursement shall be in addition to all rights to which the Employee is otherwise entitled under this Agreement.

6.            No Assignments.

(a)      This Agreement is personal to each of the parties hereto, and neither party may assign or delegate any of its rights or obligations hereunder without first obtaining the written consent of the other party; provided, however, that the Bank shall require any successor or assign (whether direct or indirect, by purchase, merger, consolidation, operation of law or otherwise) to all or substantially all of the business and/or assets of the Bank, by an assumption agreement in form and substance satisfactory to the Employee, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform it if no such succession or assignment had taken place. Failure of the Bank to obtain such an assumption agreement prior to the effectiveness of any such succession 

 

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or assignment shall be a breach of this Agreement and shall entitle the Employee to compensation and benefits from the Bank in the same amount and on the same terms that Employee would be entitled to hereunder if an event of Involuntary Termination occurred, in addition to any payments and benefits to which the Employee is entitled under Section 3 hereof. For purposes of implementing the provisions of this Section 6(a), the date on which any such succession becomes effective shall be deemed the Date of Termination.

(b)      This Agreement and all rights of the Employee hereunder shall inure to the benefit of and be enforceable by the Employee's personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. In the event of the death of the Employee, unless otherwise provided herein, all amounts payable hereunder shall be paid to the Employee's devisee, legatee, or other designee or, if there be no such designee, to the Employee's estate.

7.           Deferred Payments. If following a termination of the Employee, the aggregate payments to be made by the Bank under this Agreement and all other plans or arrangements maintained by the Company or any of the Consolidated Subsidiaries would exceed the limitation on deductible compensation contained in Section 162(m) of the Code in any calendar year, any such amounts in excess of such limitation shall be mandatorily deferred with interest thereon at 4.0% per annum to a calendar year such that the amount to be paid to the Employee in such calendar year, including deferred amounts, does not exceed such limitation, provided, however, that such deferral shall not extend past when the deferred amount must be paid pursuant to Section 409A.

8.            Delivery of Notices. For the purposes of this Agreement, all notices and other communications to any party hereto shall be in writing and shall be deemed to have been duly given when delivered or sent by certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Employee:                           Randy T. Riffle

 At the address last appearing

 on the personnel records of

 the Employee

If to the Bank:                                    First Financial Northwest Bank

 201 Wells Avenue South

 Renton, Washington 98057

 Attention: Secretary

or to such other address as such party may have furnished to the other in writing in accordance herewith, except that a notice of change of address shall be effective only upon receipt.

9.         Amendments. No amendments or additions to this Agreement shall be binding unless in writing and signed by both parties, except as herein otherwise provided or as necessary to avoid a violation of Section 409A, in which case the amendment may be made by the Bank or its delegate.

10.       Headings. The headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement.

11.       Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

 

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12.            Governing Law. This Agreement shall be governed by the laws of the State of Washington to the extent that federal law does not govern.

13.            Arbitration. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by binding arbitration, conducted before a panel of three arbitrators in a location selected by the Employee within 100 miles of such Employee's job location with the Bank, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrators' award in any court having jurisdiction.

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

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

	Attest:	
FIRST FINANCIAL NORTHWEST BANK

	
 

	
 

	
/s/Joann E. Lee                                           

	
/s/Joseph W. Kiley III                                       

	
Joann E. Lee, Secretary

	
By:   Joseph W. Kiley III

	
 

	Its:   President and Chief Executive Officer
	
 

	
 

	
 

	
 

	
 

	
EMPLOYEE

	
 

	
 

	
 

	
/s/Randy T. Riffle                                

	
 

	
Name:  Randy T. Riffle

	
 

	
 

	
 

	
 

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EXHIBIT A

Form of General Release

This General Release ("Agreement") is between ______________ ("Employee") and FIRST FINANCIAL NORTHWEST BANK (the "Company"), collectively, the "Parties".  The Employee acknowledges that this Agreement is being executed in accordance with Section 3(a) of the Change in Control Severance Agreement dated _________, 201_ (the "Source Agreement").

Both Employee and the Company desire to resolve all matters, known or unknown, arising out of Employee's employment with and separation from the Company according to the terms, conditions and consideration included in this Agreement.

This Agreement is dated ______________ for reference purposes, which is the date that the Company delivered this Agreement to the Employee for consideration.

Based on the above recitals, the Parties agree that the following terms will apply only if all conditions of this Agreement are met:

	
1.1

	
Release.

(a) Employee hereby releases and forever discharges any and all of the "Released Parties" (defined below) from any and all claims of any kind, known or unknown, which Employee ever had, now has, or hereafter may have, that arose on or before the date that he signed this Agreement, including without limitation, claims for:

		•	
wrongful termination or constructive discharge, including claims based on violation of public policy; breach of agreements, representations, policies or practices related to Employee's relationship with any Released Party; or based on any legal obligation owed by any Released Party;

		•	
violation of federal, state, or local laws, ordinances, or executive orders prohibiting discrimination, harassment or retaliation, or requiring accommodation, on the basis of race, ancestry, creed, color, religion, national origin, pregnancy, childbirth or related medical conditions, families with children, sex, genetic information, marital status, sexual orientation, gender expression or gender identity, political ideology, age, honorably discharged veteran or military status, sensory, physical, or mental impairment or other legally protected characteristic or activity;

		•	
wages (including overtime pay) or compensation of any kind (including attorney's fees or costs) to the fullest extent permitted by law;

		•	
tortious interference with contract or expectancy; fraud or negligent misrepresentation; breach of privacy, defamation or libel; intentional or negligent infliction of emotional distress; unfair labor practices; breach of fiduciary duty; or any other tort;

		•	
violation of the Washington Law Against Discrimination; the Washington Prohibited Employment Practices Law; the Washington Minimum Wage Act; Washington's Little Norris-LaGuardia Act; the Washington Family Leave Act; the Washington Family Care Act; the Washington Military Family Leave Act; the Washington law permitting leave for victims of domestic violence, sexual assault or stalking; the Washington Fair Credit 

 

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Reporting Act; the retaliation provisions of the Washington Workers' Compensation Act; the Washington Industrial Safety and Health Act (WISHA), including any and all amendments to the above, to the fullest extent permitted by law;

		•	
violation of the Consolidated Omnibus Budget and Reconciliation Act of 1985 (COBRA); the Fair Labor Standards Act (FLSA); the Labor Management Relations Act (LMRA); the Employee Polygraph Protection Act; the Racketeer Influenced and Corrupt Organizations Act (RICO); the Electronic Communications Privacy Act; the Uniform Services Employment and Re-Employment Rights Act (USERRA); the Sarbanes-Oxley Act; the Civil Rights Act of 1964; Title VII; Sections 1981 through 1988 of Title 42 of the United States Code; the Civil Rights Act of 1991; the Equal Pay Act of 1963; the Lilly Ledbetter Fair Pay Act; the Genetic Information Nondiscrimination Act of 2008 (GINA); the Americans with Disabilities Act of 1990 (ADA); the federal Family and Medical Leave Act of 1993 (FMLA); the Worker Adjustment and Retraining Notification Act (WARN); the Occupational Safety and Health Act (OSHA); the Sarbanes-Oxley Act of 2002; the Employee Retirement Income Security Act of 1974 (ERISA); the National Labor Relations Act (NLRA); the Immigration Reform and Control Act (IRCA); including any and all amendments to the above, to the fullest extent permitted by law;

		•	
the Age Discrimination in Employment Act of 1967 (ADEA); the Older Workers Benefit Protection Act (OWBPA); and

		•	
violations of all similar federal, state and local laws, to the fullest extent permitted by law.

(b)      "Released Party" or "Released Parties" includes First Financial Northwest, Inc., First Financial Northwest Bank (as the successor to First Savings Bank Northwest), First Financial Diversified Corporation, and all current and former parents, subsidiaries, related companies and affiliates (including any partnerships or joint ventures), and the benefit plans of each such entity; and with respect to each such entity, all past, present and future employees, supervisors, managers, fiduciaries, directors, officers, owners, shareholders, representatives, agents, attorneys, assigns, insurers, whether acting in their individual or official capacities, and any other persons acting by, through, under, or in concert with any of the persons or entities listed in this paragraph; and with respect to each such entity and individual, all predecessors, successors and assigns.

(c)      Employee agrees that, except as may be required by subpoena, court order, or other force of law, Employee will not in any way assist any individual or entity in commencing or prosecuting any action or proceeding against any Released Party connected to any and all matters arising from any event that has occurred up to the date of the Employee's separation from service with the Company (the "Separation Date").

(d)      Employee understands that he is releasing potentially unknown claims, and that Employee has limited knowledge with respect to some of the claims being released.  Employee acknowledges that there is a risk that, after signing this Agreement, he may learn information that might have affected Employee's decision to enter into this Agreement.  Employee assumes this risk and all other risks of any mistake in entering into this Agreement.  Employee acknowledges that this Agreement and the release and discharge contained herein is fairly and knowingly made.  Employee is giving up all rights and claims of any kind, known or unknown, except for the rights specifically given in this Agreement.

(e)      This Agreement does not in any way affect: (1) the Employee's rights of indemnification to which the Employee was entitled immediately prior to the Separation Date (as an employee or director of any of the Released Parties); (2) any rights the Employee may have as a shareholder 

 

 

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of a Released Party; (3) the Employee's vested rights under any tax-qualified retirement plan or stock compensation plan maintained by a Released Party; (4) any right the Employee may have to obtain contribution in the event of an entry of judgment against the Employee as a result of any act or failure to act for which the Employee and any of the Released Parties are jointly responsible; and (5) the right of the Employee to take whatever steps may be necessary to enforce the terms of the Source Agreement.

1.2.       Indemnification.  Employee agrees to indemnify and hold Released Parties harmless from and against all losses, costs, damages or expenses, including, without limitation, reasonable attorney's fees incurred, arising out of a breach of this Agreement.  As a material part of this Agreement, Employee represents and warrants that there are presently no claims or potential claims that are capable of being asserted against the Released Parties which he has not asserted or which could be asserted on his behalf or on behalf of his marital community.

1.3         Affirmations.

(a)      Employee affirms that he has disclosed any workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under federal, state, or local laws, including family or medical leave, paid sick or safe leave, or any other leave mandated by law.

(b)      Employee affirms that he has not and will not initiate any suit, action, or arbitration before any federal, state or local judicial, administrative or other forum with respect to any matter arising out of or connected with his employment with the Company and/or the termination of that employment; and that, without subpoena, he will not, except at the Company's request, testify in any judicial or administrative proceedings to which any Released Party is a party regarding any matter involving the affairs of any Released Party of which Employee has knowledge.  Nothing in this Agreement precludes Employee from filing a charge or complaint with an appropriate administrative agency.  However, Employee agrees that he is not entitled to and will not accept any monetary recovery directly from the Company as a result of filing such charge or complaint.  Employee affirms that he has not transferred or assigned any claims or rights to claims to any other person or entity.

(c)      Nothing in this Agreement prohibits Employee from reporting possible violations of federal, state or local laws or regulations to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the United States Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal, state or local laws or regulations. Employee does not need prior authorization of any kind to make any such reports or disclosures and Employee is not required to notify the Company that Employee has made such reports or disclosures.  The provisions of this Section 1.3(c) shall apply only to the extent required by the Defend Trade Secrets Act of 2016.

1.4         Older Workers' Benefit Protection Act Provisions.  In accordance with the requirements of the Older Workers' Benefit Protection Act, Employee expressly acknowledges the following:

(a)      Independent Legal Counsel.  Employee is advised and encouraged to consult with an attorney before signing this Agreement.  Employee acknowledges that, if he desired to consult an attorney, he had an adequate opportunity to do so.

(b)     Consideration Period.  Employee has twenty-one (21) calendar days from the date this Agreement was given to him (______________) to consider this Agreement before signing it.  Employee agrees that any modifications, material or otherwise, made to this Agreement do not restart or affect in any manner the original twenty-one (21) calendar day consideration period.  The twenty-one (21) 

 

12

day period expires on ______________.  Employee may use as much or as little of this twenty-one (21) day period as he wishes before signing.  If Employee does not sign and return this Agreement within this twenty-one (21) day period, it will not become effective or enforceable, and Employee will not receive the benefits described in the Source Agreement.

(c)       Revocation Period and Effective Date.  Employee has seven (7) calendar days after signing this Agreement to revoke it.  To revoke this Agreement after signing it, Employee must deliver a written notice of revocation to the Company's Chief Executive Officer before the seven (7) day period expires.  This Agreement shall not become effective until the eighth (8th) calendar day after Employee signs it ("Effective Date").  If Employee revokes this Agreement, it will not become effective or enforceable, and he will not receive the benefits described in the Source Agreement.

(d)      Acceptance.  Employee agrees and accepts this Agreement.  Employee acknowledges that he has not signed this Agreement relying on anything not set out herein.  Employee acknowledges that if he is signing this before ____________, he has decided not to wait for the full twenty-one (21) day period, even though he has the right to do so.

1.5          Non-Admission.  This Agreement shall not be construed as an admission by Employee or any Released Party of any liability, breach of any agreement, or violation of any statute, law or regulation, nor shall it be construed as an admission of any deficient performance or breach of any professional obligation.

1.6          Governing Law.  This Agreement is governed by the laws of the State of Washington that apply to contracts executed and to be performed entirely within the State of Washington without giving effect to the rules governing the conflicts of laws, and without the aid of any canon, custom, or rule of law requiring construction against the drafter, and regardless of whether a party changes domicile or residence.

1.7          Successors and Assigns.  Employee's obligations will bind his heirs, successors, and assigns, to the benefit of the Company.  The Company shall have the right to assign this Agreement to any of the Company's successors, assigns, or affiliates or to any entity that, directly or indirectly, is in control of, is controlled by, or is under common control with the Company.  This Agreement shall be binding upon the successors and permitted assigns of the Company.

1.8          Headings; Definitions.  The headings in the Agreement are for convenience only and shall not affect the meaning of the terms as set out in the text.  Any capitalized terms not defined in this Agreement will have the meaning assigned to those terms in the Employment Agreement.

1.9          Attorney's Fees.  In any dispute involving this Agreement, each Party shall be responsible for their own attorney's fees and costs.

1.10       Severability.  It is further understood and agreed that if any of the provisions of this Agreement are held to be invalid or unenforceable, the remaining provisions shall nevertheless continue to be valid and enforceable.

1.11       Complete Agreement.  This Agreement represents and contains the entire understanding between the Parties in connection with the subject matter of this Agreement.  It is expressly acknowledged and recognized by all Parties that there are no oral or written collateral agreements, understandings or representations between the Parties other than as contained in this document.  Any modifications to this Agreement must be in writing and signed by both Parties to be effective.

13

1.12       Counterparts.  This Agreement may be executed in duplicate originals, each of which is equally admissible in evidence, and each original shall fully bind each party who executed it.  An e-mailed or facsimile copy of the signature may be submitted as proof of execution; however, Employee shall send the original executed agreement by U.S. Mail to the Company's Chief Executive Officer no later than three (3) days after signature.

This Agreement consists of ______ pages, not including any exhibits.

 

	
_____________________________

	
______________________________

	
 

	
Date

	
 

	
 

	
Agreed by FIRST FINANCIAL NORTHWEST BANK

	
 

	
 

	
 

	
_____________________________

	
_____________________________

	
By: __________________________

	Date
	Its:  __________________________	 

 

  

14Exhibit 10.8

 

OFFERING DEPOSIT ACCOUNT AGENCY AGREEMENT

 

This OFFERING DEPOSIT
ACCOUNT AGENCY AGREEMENT (this “Agreement”) dated as of this __________, 201__, by and among HITEK GLOBAL
INC., a Cayman Islands exempted company (the “Company”), having an address at Unit 304, No. 30 Guanri Road,
Siming District, Xiamen City, Fujian Province, People’s Republic of China and BOUSTEAD SECURITIES, LLC, serving as
the representative of the underwriters (the “Underwriter”), having an address at 6 Venture, Suite 265, Irvine,
CA 92618 USA, and FinTech Clearing, LLC (the “Deposit Account Agent”), a broker-dealer registered with
the Securities and Exchange Commission (“SEC”), having an office at 6 Venture, Suite 265, Irvine, CA 92618 USA.
All capitalized terms not herein defined shall have the meaning ascribed to them in that certain prospectus filed with the United
States SEC dated [_____], 2018, under File Number 333-[________], including all attachments, schedules and exhibits thereto, as
amended from time to time (the “Registration Statement”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant
to the terms of the Registration Statement, the Company desires to sell (the “Offering”) a minimum of $6,000,000.00
(the “Minimum Amount”) and a maximum of $10,000,000.00 (the “Maximum Amount”) of its ordinary
shares (the “Shares”). The minimum investment per subscriber is $500.00 (which minimum investment may be waived
by Company). In addition, the Underwriter has been granted an over-subscription option (the “Over-Subscription Option”)
pursuant to which the Company may sell up to an additional 375,000 Shares for additional investment proceeds of up to $1,500,000;
and

 

WHEREAS, unless
the Minimum Amount is sold by 90 days of the effective date of the Registration Statement (the “Final Termination Date”),
unless extended by an Extension Notice (defined below in Section 2(b)), the Offering shall terminate, and all funds shall be returned
to the subscribers in the Offering, and if the Minimum Amount is met, the Offering may continue until the Final Termination Date,
and one or more closings may be conducted on or prior to the Final Termination Date; and

 

WHEREAS, in
the event that the Maximum Amount is sold by the Final Termination Date (including any extension thereof), and the Underwriter
exercises the Over-Subscription Option by such date, the Underwriter may extend the Offering for an additional 45 days past the
date of exercise of the Over-Subscription Option (the “Option Termination Date”); and

 

WHEREAS, the
Company and Underwriter desire to establish a deposit account with the Deposit Account Agent into which the Company and Underwriter
shall instruct investors introduced to the Company by Underwriter (the “Investors”) to deposit checks and other
instruments for the payment of money made payable to the order of “FinTech Clearing as Deposit Account Agent for the Investors
in Hitek Global Inc.” and Deposit Account Agent is willing to accept said checks and other instruments for the payment of
money in accordance with the terms hereinafter set forth; and

 

WHEREAS, the
Company, as issuer, and Underwriter, as an introducing broker-dealer, represent and warrant to the Deposit Account Agent that they
will comply with all of their respective obligations under applicable state and federal securities laws and regulations with respect
to sale of the Offering; and

 

     

     

    

 

WHEREAS, the
Company and Underwriter represent and warrant to the Deposit Account Agent that they have not stated to any individual or entity
that the Deposit Account Agent’s duties will include anything other than those duties stated in this Agreement; and

 

WHEREAS, the
Company and Underwriter warrant to the Deposit Account Agent that a copy of each document that has been delivered to Investors
and third parties that include Deposit Account Agent’s name and duties, has been attached hereto as Schedule I.

 

NOW, THEREFORE, IT
IS AGREED as follows:

 

1. Delivery of Deposit Funds.

 

(a) Underwriter and
the Company shall instruct Investors to deliver to Deposit Account Agent checks made payable to the order of “FinTech Clearing,
as Deposit Account Agent for the Investors in Hitek Global Inc.,” or wire transfer to FinTech Clearing, 6 Venture, Suite
265, Irvine, CA 92618, ABA No. 122242869, Attention: Brian Park, President, for credit to FinTech Clearing, as Deposit Account
Agent for the Investors in Hitek Global Inc. Account No. [____________], in each case, with the name and address of the individual
or entity making payment. In the event any Investor’s address is not provided to Deposit Account Agent by the Investor, then
Underwriter and/or the Company agree to promptly provide Deposit Account Agent with such information in writing. The checks or
wire transfers shall be deposited into a non-interest-bearing account at Pacific Mercantile Bank entitled “FinTech Clearing,
as Deposit Account Agent for the Investors in Hitek Global Inc.” (the “Deposit Account”).

 

(b) The collected funds
deposited into the Deposit Account are referred to as the “Deposit Funds.”

 

(c) The Deposit Account
Agent shall have no duty or responsibility to enforce the collection or demand payment of any funds deposited into the Deposit
Account. If, for any reason, any check deposited into the Deposit Account shall be returned unpaid to the Deposit Account Agent,
the sole duty of the Deposit Account Agent shall be to return the check to the Investor and advise the Company and Underwriter
promptly thereof.

 

2. Release of Deposit Funds. The
Deposit Funds shall be paid by the Deposit Account Agent in accordance with the following:

 

(a) In the event that
the Company and Underwriter advise the Deposit Account Agent in writing that the Offering has been terminated (the “Termination
Notice”), the Deposit Account Agent shall promptly return the funds paid by each Investor to said Investor without interest
or offset within five (5) business days.

 

(b) If prior to 3:00
P.M. Eastern time on the Final Termination Date, the Deposit Account Agent receives written notice, in the form of Exhibit A,
attached hereto and made a part hereof, and signed by the Company and Underwriter, stating that the Final Termination Date has
been extended (the “Extension Notice”), then the Final Termination Date shall be so extended and such date shall
be the new “Final Termination Date”.

 

    2

     

    

 

(c)        If
at any time prior to 3:00 P.M. Eastern Time on the Final Termination Date (including any extension thereof), the Escrow Agent receives
written notice, in the form of Exhibit B, attached hereto and made a part hereof, and signed by the Underwriter, stating
that the Final Termination Date (including any extension thereof) has been extended to the Option Termination Date (the “Over-Subscription
Extension Notice”), then the Final Termination Date (including any extension thereof) shall be extended to the Option
Termination Date.

 

(d) Provided that the
Deposit Account Agent does not receive the Termination Notice in accordance with Section 2(a) and there is the Minimum Amount deposited
into the Deposit Account on or prior to the Final Termination Date or the date stated in the Extension Notice, if any, received
by the Deposit Account Agent in accordance with Section 2(b) above, or the date stated in the Over-Subscription Extension Notice,
if any, received by the Deposit Account Agent in accordance with Section 2(c) above, the Deposit Account Agent shall, upon
receipt of written instructions, in the form of Exhibit C, attached hereto and made a part hereof, or in a form and substance
satisfactory to the Deposit Account Agent, received from the Company and Underwriter, pay the Deposit Funds in accordance with
such written instructions, such payment or payments to be made by wire transfer within one (1) business day of receipt of such
written instructions. Such instructions must be received by the Deposit Account Agent no later than 3:00 PM Pacific Time on a Business
Day for the Deposit Account Agent to process such instructions that Business Day.

 

(e) If by 3:00 P.M.
Pacific time on the later of the Final Termination Date or the date stated in the Extension Notice, if any, that the Deposit Account
Agent has received in accordance with Section 2(b) above, or the date stated in the Over-Subscription Extension Notice, if any,
received by the Deposit Account Agent in accordance with Section 2(c) above, the Deposit Account Agent has not received written
instructions from the Company and Underwriter regarding the disbursement of the Deposit Funds or the total amount of the Deposit
Funds is less than the Minimum Amount, then the Deposit Account Agent shall promptly return the Deposit Funds to the Investors
without interest or offset within five (5) business days. The Deposit Funds returned to each Investor shall be free and clear of
any and all claims of the Deposit Account Agent.

 

(f) The Deposit Account
Agent shall not be required to pay any uncollected funds or any funds that are not available for withdrawal.

 

(g) If the Final Termination
Date, Option Termination Date or any date that is a deadline under this Agreement for giving the Deposit Account Agent notice or
instructions or for the Deposit Account Agent to take action is not a Business Day, then such date shall be the Business Day that
immediately preceding that date. A “Business Day” is any day other than a Saturday, Sunday or a day that a SEC-registered
broker-dealer is not legally obligated to be opened.

 

    3

     

    

 

3. Acceptance by Deposit Account Agent.
The Deposit Account Agent hereby accepts and agrees to perform its obligations hereunder, provided that:

 

(a) The Deposit Account
Agent may act in reliance upon any signature believed by it to be genuine and may assume that any person who has been designated
by Underwriter or the Company to give any written instructions, notice or receipt, or make any statements in connection with the
provisions hereof has been duly authorized to do so. Deposit Account Agent shall have no duty to make inquiry as to the genuineness,
accuracy or validity of any statements or instructions or any signatures on statements or instructions. The names and true signatures
of each individual authorized to act singly on behalf of the Company and Underwriter are stated in Schedule II, which is
attached hereto and made a part hereof. The Company and Underwriter may each remove or add one or more of its authorized signers
stated on Schedule II by notifying the Deposit Account Agent of such change in accordance with this Agreement, which notice
shall include the true signature for any new authorized signatories.

 

(b) The Deposit Account
Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith. The Deposit Account
Agent shall not be liable for any mistake of fact or error of judgment or law, or for any acts or omissions of any kind, unless
caused by its willful misconduct or gross negligence.

 

(c) Underwriter and
the Company agree to indemnify and hold the Deposit Account Agent harmless from and against any and all claims, losses, costs,
liabilities, damages, suits, demands, judgments or expenses (including but not limited to reasonable attorney’s fees) claimed
against or incurred by Deposit Account Agent arising out of or related, directly or indirectly, to this Agreement unless caused
by the Deposit Account Agent’s gross negligence or willful misconduct.

 

(d) In the event that
the Deposit Account Agent shall be uncertain as to its duties or rights hereunder, the Deposit Account Agent shall be entitled
to (i) refrain from taking any action other than to keep safely the Deposit Funds until it shall be directed otherwise by a court
of competent jurisdiction, or (ii) deliver the Deposit Funds to a court of competent jurisdiction.

 

(e) The Deposit Account
Agent shall have no duty, responsibility or obligation to interpret or enforce the terms of any agreement other than Deposit Account
Agent’s obligations hereunder, and the Deposit Account Agent shall not be required to make a request that any monies be delivered
to the Deposit Account, it being agreed that the sole duties and responsibilities of the Deposit Account Agent shall be to the
extent not prohibited by applicable law (i) to accept checks or other instruments for the payment of money and wire transfers delivered
to the Deposit Account Agent for the Deposit Account and deposit said checks and wire transfers into the non-interest bearing Deposit
Account, and (ii) to disburse or refrain from disbursing the Deposit Funds as stated above, provided that the checks received by
the Deposit Account Agent have been collected and are available for withdrawal.

 

4. Term of Deposits. This Agreement
shall terminate upon the disbursement of all Deposit Funds in the Deposit Account pursuant to Section 2(c), Section 2(d), Section
6 or Section 7 (except with respect to provisions hereof which are specifically intended to survive such termination).

 

    4

     

    

 

5. Deposit Account Statements and Information.
The Deposit Account Agent agrees to send to the Company and/or the Underwriter a copy of the Deposit Account periodic statement,
upon request and to also provide the Company and/or Underwriter, or their designee, upon request other deposit account information,
including Deposit Account balances, by telephone or by computer communication, to the extent practicable. The Company and Underwriter
agree to complete and sign all forms or agreements required by the Deposit Account Agent for that purpose. The Company and Underwriter
each consent to the Deposit Account Agent’s release of such Deposit Account information to any of the individuals designated
by Company or Underwriter, which designation has been signed in accordance with Section 3(a) by any of the persons in Schedule
II.  Further, the Company and Underwriter have an option to receive e-mail notification of incoming and outgoing wire
transfers. If this e-mail notification service is requested and subsequently approved by the Deposit Account Agent, the Company
and Underwriter agrees to provide a valid e-mail address and other information necessary to set-up this service and sign all forms
and agreements required for such service. The Company and Underwriter each consent to the Deposit Account Agent’s release
of wire transfer information to the designated e-mail address(es). The Deposit Account Agent’s liability for failure to comply
with this section shall not exceed the cost of providing such information.

 

6. Resignation and Termination of the
Deposit Account Agent. The Deposit Account Agent may resign at any time by giving 30 days’ prior written notice of such
resignation to Underwriter and the Company. Upon providing such notice, the Deposit Account Agent shall have no further obligation
hereunder except to hold as depositary the Deposit Funds that it receives until the end of such 30-day period. In such event, the
Deposit Account Agent shall not take any action, other than receiving and depositing Investors’ checks and wire transfers
in accordance with this Agreement, until the Company has designated a banking corporation, trust company, attorney or other person
as successor. Upon receipt of such written designation signed by Underwriter and the Company, the Deposit Account Agent shall promptly
deliver the Deposit Funds to such successor and shall thereafter have no further obligations hereunder. If such instructions are
not received within 30 days following the effective date of such resignation, then the Deposit Account Agent may deposit the Deposit
Funds held by it pursuant to this Agreement with a clerk of a court of competent jurisdiction pending the appointment of a successor.
In either case provided for in this Section, the Deposit Account Agent shall be relieved of all further obligations and released
from all liability thereafter arising with respect to the Deposit Funds.

 

7. Termination. Except as otherwise
specifically provided herein, this Agreement shall terminate on the later of the final closing date of the Offering, the Final
Termination Date, or the Option Termination Date, as applicable (except with respect to provisions hereof which are specially intended
to survive such termination). The Company and Underwriter may terminate the appointment of the Deposit Account Agent hereunder
upon written notice specifying the date upon which such termination shall take effect, which date shall be at least 30 days from
the date of such notice. In the event of such termination, the Company and Underwriter shall, within 30 days of such notice, appoint
a successor deposit account agent and the Deposit Account Agent shall, upon receipt of written instructions signed by the Company
and Underwriter, turn over to such successor deposit account agent all of the Deposit Funds; provided, however, that
if the Company and Underwriter fail to appoint a successor deposit account agent within such 30-day period, such termination notice
shall be null and void and the Deposit Account Agent shall continue to be bound by all of the provisions hereof. Upon receipt of
the Deposit Funds, the successor deposit account agent shall become the deposit account agent hereunder and shall be bound by all
of the provisions hereof and Deposit Account Agent shall be relieved of all further obligations and released from all liability
thereafter arising with respect to the Deposit Funds and under this Agreement.

 

    5

     

    

 

8. Investment. All funds received
by the Deposit Account Agent shall be held only in non-interest-bearing accounts at Pacific Mercantile Bank.

 

9. Compensation. Deposit Account
Agent shall be entitled, for the duties to be performed by it hereunder, to a fee as set forth on Schedule III. In addition, the
Company shall be obligated to reimburse Deposit Account Agent for all fees, costs and expenses incurred or that become due in connection
with this Agreement or the Deposit Account, including reasonable attorney’s fees. Neither the modification, cancellation,
termination or rescission of this Agreement nor the resignation or termination of the Deposit Account Agent shall affect the right
of Deposit Account Agent to retain the amount of any fee which has been paid, or to be reimbursed or paid any amount which has
been incurred or becomes due, prior to the effective date of any such modification, cancellation, termination, resignation or rescission.
To the extent the Deposit Account Agent has incurred any such expenses, or any such fee becomes due, prior to any closing, the
Deposit Account Agent shall advise the Company and the Company shall direct all such amounts to be paid directly at any such closing.

 

10. Notices. All notices, requests,
demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been
duly given if sent by hand-delivery, by facsimile (followed by first-class mail), by nationally recognized overnight courier service
or by prepaid registered or certified mail, return receipt requested, to the addresses set forth below:

 

If to Underwriter:

 

Boustead Securities, LLC

6 Venture,
Suite 265

Irvine, CA
92618

Attention:
Keith Moore, CEO

Fax: +1 815
301 8099

 

With copy to:

 

Ortoli Rosenstadt
LLP

366 Madison
Avenue, 3rd Floor

New York, NY
10017

Attention:
William S. Rosenstadt, Esq.

                    Mengyi “Jason”
Ye, Esq.

Fax: (212)
826-9307

 

If to the Company:

 

Hitek Global
Inc.

Unit 304, No.
30 Guanri Road, Siming District,

Xiamen City,
Fujian Province, People’s Republic of China

Attn: Xiaoyang
Huang, Chief Executive Officer

 

    6

     

    

 

With copy to: 

 

Hunter Taubman
Fischer & Li, LLC

1450 Broadway,
26th Floor

New York, NY
10018

Attn: Joan
Wu, Esq.

Attn: Ying
Li, Esq.

Fax No.: [*]

 

If to Deposit Account
Agent:

 

FinTech Clearing, LLC

6 Venture,
Suite 265

Irvine, CA
92618

Attention:
Brian Park, President

Fax: +1 310
504 3704

 

11. General.

 

(a) This Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of New York applicable to agreements made and
to be entirely performed within such State, without regard to choice of law principles and any action brought hereunder shall be
brought in the courts of the State of New York, located in the City of New York. Each party hereto irrevocably waives any objection
on the grounds of venue, forum nonconveniens or any similar grounds and irrevocably consents to service of process by mail or in
any manner permitted by applicable law and consents to the jurisdiction of said courts. EACH OF THE PARTIES HERETO HEREBY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

(b) This Agreement sets
forth the entire agreement and understanding of the parties with
respect to the matters contained herein and supersedes all prior agreements, arrangements and understandings relating thereto.

 

(c) All of the terms
and conditions of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the parties hereto,
as well as their respective successors and assigns.

 

    7

     

    

 

(d) This Agreement may
be amended, modified, superseded or canceled, and any of the terms or conditions hereof may be waived, only by a written instrument
executed by each party hereto or, in the case of a waiver, by the party waiving compliance. The failure of any party at any time
or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same.
No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise,
in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach
or a waiver of any other condition or of the breach of any other term of this Agreement. No party may assign any rights, duties
or obligations hereunder unless all other parties have given their prior written consent.

 

(e) If any provision
included in this Agreement proves to be invalid or unenforceable, it shall not affect the validity of the remaining provisions.

 

(f) This Agreement and
any modification or amendment of this Agreement may be executed in several counterparts or by separate instruments and all of such
counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

 

12. Form of Signature. The parties
hereto agree to accept a facsimile transmission copy of their respective actual signatures as evidence of their actual signatures
to this Agreement and any modification or amendment of this Agreement; provided, however, that each party who produces
a facsimile signature agrees, by the express terms hereof, to place, promptly after transmission of his or her signature by fax,
a true and correct original copy of his or her signature in overnight mail to the address of the other party.

 

13. No Third-Party Beneficiaries.  This
Agreement is solely for the benefit of the parties and their respective successors and permitted assigns, and no other person has
any right, benefit, priority, or interest under or because of the existence of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

    8

     

    

 

IN WITNESS WHEREOF, the parties
have duly executed this Agreement as of the date first set forth above.

 

	Hitek Global, Inc.	 	Boustead Securities, LLC
	 	 	 	 
	By:	 	 	By:	 
	 	Name:	Xingliang Li	 	Name:	Keith Moore 
	 	Title:	CEO	 	Title:	CEO

 

	FinTech Clearing, LLC	 
	 	 	 
	By:	 	 
	 	Name: Brian Park	 
	 	Title: President	 

 

    9

     

    

 

Schedule
I

 

OFFERING DOCUMENTS

 

As attached.

 

    10

     

    

 

Schedule
II

 

The Deposit Account
Agent is authorized to accept instructions signed or believed by the Deposit Account Agent to be signed by any one of the following
on behalf of the Company and Underwriter.

 

Hitek Global Limited

 

	
        Name
	 	True Signature
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

Boustead Securities, LLC

 

 

	Name	 	True Signature
	 	 	 
	Keith Moore, CEO	 	 
	 	 	 
	Dan McClory, Managing Director	 	

 

    11

     

    

 

Schedule
III

 

Fee Schedule

 

	Service	 	Fee	 
	Cash Management Fee (one-time fee)	 	$	4,500.00	 

 

    12

     

    

 

Exhibit A

 

EXTENSION NOTICE

 

Date:

 

FinTech Clearing, LLC

6 Venture, Suite 265 Irvine, CA 92618

Attention: Brian Park, President

 

Dear Mr. Park:

 

In accordance with the terms of Section
2(b) of a Deposit Account Agreement dated ___ _______, by and among Hitek Global Inc. (the “Company”), Boustead Securities,
LLC (the “Underwriter”), and FinTech Clearing, LLC (the “Deposit Account Agent”), the Company and Underwriter
hereby notifies the Deposit Account Agent that the Termination Date has been extended to ____________, 201__, the Final Termination
Date.

 

Very truly yours,

 

	Hitek Global Inc.	 
	 	 
	By:	 	 
	Name:	 
	Title:	 
	 	 
	Boustead Securities, LLC	 
	 	 
	By:	                   	 
	Name: Keith Moore	 
	Title: CEO	 

    A-1

     

    

 

Exhibit B

 

OVER-SUBSCRIPTION EXTENSION NOTICE

 

Date:

 

FinTech Clearing, LLC

6 Venture, Suite 265 Irvine, CA 92618

Attention: Brian Park, President

 

Dear Mr. Park:

 

In accordance with the terms of Section
2(c) of an Offering Deposit Account Agency Agreement dated ___ _______, by and among Hitek Global Inc. (the “Company”),
Boustead Securities, LLC (“Underwriter”), and Fintech Clearing LLC (the “Deposit Account Agent”), the Underwriter
hereby notifies the Deposit Account Agent that the Final Termination Date has been extended to __________ __, 20__, the Option
Termination Date.

 

Very truly yours,

 

	Boustead Securities, LLC	 
	 	 
	By:		 
	Name:	 Keith Moore	 
	Title:	CEO	 

 

 

    B-1

     

    

 

Exhibit C

 

FORM OF DEPOSIT RELEASE NOTICE

 

Date:

 

FinTech Clearing, LLC

6 Venture, Suite 265

Irvine, CA 92618Attention: Brian
Park, President

 

Dear Mr. Park:

 

In accordance with the terms of Section
2(c) of a Deposit Account Agreement dated as of __________, 2018 (the “Deposit Account Agreement”), by and between Hitek
Global Inc. (the “Company”), FinTech Clearing, LLC (the “Deposit Account Agent”) and Boustead Securities, LLC
(the “Underwriter”), the Company and Underwriter hereby notify the Deposit Account Agent that the ________ closing will
be held on ___________ for gross proceeds of $_________.

 

PLEASE DISTRIBUTE FUNDS BY WIRE TRANSFER
AS FOLLOWS (wire instructions attached):

 

________________________: $

 

________________________: $

 

________________________: $

 

 

	Very truly yours,	 
	 	 
	Hitek Global Inc.	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 
	Boustead Securities, LLC	 
	 	 
	By:	 	 
	Name: Keith Moore	 
	Title: CEO	 

 

    C-1

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