Document:

gbsn-ex108_197.htm

Exhibit 10.8

 

SUBORDINATION AND INTERCREDITOR AGREEMENT

This Subordination and Intercreditor Agreement is executed and delivered as of September 27, 2017 (this "Agreement"), by and between Utah Autism Foundation, a Utah non-profit corporation (the “Subordinated Creditor”), and Hudson Bay Master Fund Ltd., in its capacity as collateral agent for the Senior Creditors (as defined below) (together with its successors and assigns in such capacity, the "Senior Agent"), and is acknowledged by Great Basin Scientific, Inc., a Delaware corporation (the “Borrower”).

Recitals:

A.Borrower and the investors listed on a schedule to the Securities Purchase Agreements (collectively, the “Investors”; together with their respective successors and assigns and the Senior Agent, collectively, the "Senior Creditors"), are parties to one or more Securities Purchase Agreements, dated on or about September 27, 2017 (as amended, restated, replaced, supplemented or otherwise modified from time to time, each a “Securities Purchase Agreement” and, collectively, the “Securities Purchase Agreements”), pursuant to which, among other things, the Investors have agreed to purchase the Borrower’s senior secured notes in the aggregate principal amount of up to $2,772,541.54 (collectively, as such notes may be amended, restated, replaced or otherwise modified from time to time, the “Notes”).  

B.It is a condition precedent to the Investors consummating the transactions contemplated by the Securities Purchase Agreements that (i) the Borrower executes and delivers to the Senior Agent a Pledge and Security Agreement (the "Pledge and Security Agreement") providing for the grant to the Senior Agent for the benefit of the Investors of a security interest in all personal property of the Borrower to secure all of the Borrower's obligations under the Securities Purchase Agreements, the Notes and the other Transaction Documents (as defined in the Securities Purchase Agreements) (such Transaction Documents, together with the Securities Purchase Agreements, the Notes and the Pledge and Security Agreement are hereby referred to herein collectively as the "Senior Agreements") and (ii) the Subordinated Creditor executes and delivers this Agreement.

C.Borrower is obligated to the Subordinated Creditor under (a) a Purchase-Money Promissory Note, dated as of April 13, 2017, in the principal amount of $1,184,466.92 (as amended, restated, replaced, exchanged, supplemented or otherwise modified from time to time, the “UAF Note”) and (b) a Purchase-Money Security Agreement, dated as of April 13, 2017, by Borrower in favor of the Subordinated Creditor (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Subordinated Security Agreement” and together with the UAF Note and all other agreements, documents and instruments executed or delivered in connection therewith, including the Loan Documents (as defined in the Subordinated Security Agreement), collectively, the "Subordinated Agreements").  

NOW THEREFORE, in order to induce the Investors to extend or to continue to extend financial accommodations to Borrower from time to time under the Securities Purchase Agreements, the Notes and the other Senior Agreements executed in connection therewith, and in consideration of such financial accommodations, the Subordinated Creditor agrees as follows: 

	
1.
	
On the terms and subject to the conditions set forth in this Agreement, any and all indebtedness, obligations and liabilities of Borrower to the Subordinated Creditor, including, without limitation, principal, interest, costs, indemnities and other amounts due under the Subordinated Agreements, whether direct or indirect, absolute or contingent, joint or several, secured or unsecured, due or to become due, now existing or later arising and whatever the amount and however evidenced, together with all other sums due thereon and all costs of collecting the same (collectively, the "Subordinated Indebtedness"), are 

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subordinated, in right of payment to any and all indebtedness, obligations and liabilities of Borrower to the Senior Creditors, including, without limitation, principal, interest, costs, indemnities and other amounts due under the Senior Agreements, whether direct or indirect, absolute or contingent, joint or several, secured or unsecured, due or to become due, now existing or later arising and whatever the amount and however evidenced, together with all other sums due thereon and all costs of collecting the same (including, without limitation, reasonable attorney fees) for which Borrower is liable (collectively, the "Senior Indebtedness").

	
2.
	
The Subordinated Creditor will not ask for, demand, sue for, take or receive (by way of voluntary payment, acceleration, set-off or counterclaim, foreclosure or other realization on security, dividends in bankruptcy or otherwise), or offer to make any discharge or release of, any of the Subordinated Indebtedness.  Notwithstanding anything to the contrary, so long as the Senior Agent has not furnished written notice to the Subordinated Creditor and the Borrower that an “Event of Default” is continuing under the Senior Agreements and stating that further payments upon the Subordinated Indebtedness are thereafter prohibited, the Borrower may pay and the Subordinated Creditor may accept and apply payment of all regularly scheduled principal, accrued interest, fees and expenses payable pursuant to the terms of the UAF Note, in each case as in effect on the date hereof or as later amended in accordance with this Agreement (collectively, “Permitted Payments”).  The Subordinated Creditor shall not exercise any rights of subrogation or other similar rights with respect to the Senior Indebtedness.

	
3.
	
So long as any Senior Indebtedness remains unpaid or any commitment to extend credit in respect thereof remains outstanding, the Subordinated Creditor will not exercise any of the Subordinated Creditor's rights in any collateral securing the Subordinated Indebtedness that may at any time exist (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)). All liens, security interests and other rights of the Subordinated Creditor in any collateral securing the Subordinated Indebtedness (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)) are hereby subordinated to all liens, security interests and other rights of the Senior Creditors now or later existing in any of the same collateral securing the Senior Indebtedness. The Subordinated Creditor waives all rights to require the Senior Agent or the other Senior Creditors to marshal the collateral for the Senior Indebtedness or any other property the Senior Creditors may at any time have as security for the Senior Indebtedness and waives all rights to require the Senior Creditors to first proceed against any guarantor or other person before proceeding against such collateral. The Subordinated Creditor shall not contest the validity, priority or perfection of the Senior Agreements or the Senior Creditor's liens on or security interest in any collateral securing the Senior Indebtedness. The priorities of the Senior Creditors and the Subordinated Creditor in such collateral shall be in accordance with this Agreement, regardless of whether the Senior Creditors' security interest in or lien on such collateral is valid or perfected, and regardless of the time, manner or order of perfection of any such liens and security interests. The Senior Creditors may take action to foreclose or otherwise realize upon, or protect their interest in, the collateral (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)), in accordance with its agreements with the Borrower, at any time, without the consent of the Subordinated Creditor, and the Subordinated Creditor agrees not to interfere in a manner which would defeat or otherwise inhibit the purpose of this Agreement in connection therewith. So long as any part of the Senior Indebtedness is outstanding or any commitment to extend credit in respect thereof remains outstanding, if the Senior Creditors have agreed to release their security interest in any of the collateral (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)) in connection with the realization of any of its rights with respect to such collateral in any commercially reasonable disposition, the Senior Creditors are hereby authorized as the Subordinated Creditor’s attorney in fact to execute releases and discharges of the Subordinated Creditor’s liens and security interests in such collateral provided that the Senior Creditors are releasing or discharging the Senior Creditors' security interest in 

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such collateral as part of the same transaction and provided that the Senior Creditors give the Subordinated Creditor five (5) days prior written notice of such release during which such five (5) day period the Subordinated Creditor does not sign and deliver to the Senior Creditors any such releases and discharges. The subordination and postponement in priority, operation and effect of the security interests of the Subordinated Creditor shall have the same force and effect as though the security interests of the Senior Creditors had attached and were perfected by filing or otherwise prior to the time the security interests of the Subordinated Creditor attached and/or were perfected. 

	
4.
	
The Subordinated Creditor authorizes and empowers the Senior Creditors to demand, enforce payment by legal proceedings, receive and give acquittances for the Subordinated Indebtedness and to exercise all rights of the Subordinated Creditor in any security now or later held for the Subordinated Indebtedness (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)). The Subordinated Creditor hereby agrees to mark its books of account, the Collateral (as defined in the Subordinated Security Agreement) and the Subordinated Agreements in such a manner as shall be effective to give proper notice of the effect of this Agreement.

The Subordinated Creditor will at its expense and at any time and from time to time promptly execute and deliver all further instruments and documents and take all further action that are necessary or that the Senior Creditors may reasonably request in order to protect any right or interest granted or purported to be granted hereunder or to enable the Senior Creditors to exercise and enforce their rights and remedies hereunder and under the Senior Agreements. 

If, while any Senior Indebtedness is outstanding or any commitment to extend credit in respect thereof remains outstanding, any Insolvency Event involving the Borrower or any of its subsidiaries shall occur, the Subordinated Creditor shall duly and promptly take such action as the Senior Creditors may reasonably request to collect any payment with respect to the Subordinated Indebtedness and to file appropriate claims or proofs of claim in respect of the Subordinated Indebtedness.  Upon the failure of the Subordinated Creditor promptly to take any such action, which failure continues for a period in excess of three (3) days, the Senior Creditors are hereby irrevocably authorized and empowered (each in its own name or otherwise), but shall have no obligation, to demand, sue for, collect and receive every payment or distribution referred to in respect of the Subordinated Indebtedness and to file claims and proofs of claim and take such other action as it may deem necessary or advisable for the exercise or enforcement of any of the rights or interests of the Subordinated Creditor with respect to the Subordinated Indebtedness.  

“Insolvency Event” means the Borrower or any of its subsidiaries shall have:

(a)applied for, consented to, or acquiesced in, the appointment of a trustee, receiver, sequestrator or other custodian for it or any of its property, or made a general assignment for the benefit of creditors;

(b)in the absence of such application, consent or acquiescence, permitted or suffered to exist the appointment of a trustee, receiver, sequestrator or other custodian for it or for a substantial part of its property, and such trustee, receiver, sequestrator or other custodian shall not have been discharged within 30 days; or

(c)permitted or suffered to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, or any dissolution, winding up or liquidation proceeding, in respect of it, and, if any such case or proceeding was not commenced by it, such case or proceeding shall have been consented to or acquiesced in by it or shall have resulted in the entry of an order for relief or shall have remained for 30 days undismissed.

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5.
	
Except for Permitted Payments, should any payment, distribution or security or proceeds from any such payment, distribution or security be received by the Subordinated Creditor upon or with respect to the Subordinated Indebtedness prior to the satisfaction in full of the Senior Indebtedness and the termination of all commitments in respect thereof, the Subordinated Creditor shall immediately deliver same to the Senior Agent, in the form received (except for endorsement or assignment by the Subordinated Creditor where required by the Senior Agent), for application to the Senior Indebtedness (whether or not then due and in such order of maturity as the Senior Creditors elect) and, until so delivered, the same shall be held in trust by the Subordinated Creditor as the property of the Senior Creditors. 

	
6.
	
The Subordinated Creditor represents, warrants and agrees that it has not made or permitted to be made and shall not make or permit any assignment, transfer, pledge, or disposition for collateral purposes or otherwise, of all or any part of the Subordinated Indebtedness or any collateral or other security for the Subordinated Indebtedness (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)) so long as this Agreement remains in effect unless (a) the Senior Agent is given fifteen (15) business days' prior written notice of such transfer or other assignment, (b) such transfer or other assignment is made expressly subject to the terms of this Agreement and (c) the party that acquires such interest to the Subordinated Indebtedness or such collateral or other security executes and delivers a joinder to this Agreement in form and substance acceptable to the Senior Agent and otherwise agrees to be bound by the terms hereof. 

	
7.
	
This Agreement constitutes a continuing agreement of subordination until all Senior Indebtedness has been paid in full and all commitments of the Senior Creditors to extend credit have been terminated. The Senior Creditors may continue, in reliance on this Agreement, without notice to the Subordinated Creditor, to lend monies, extend credit, modify, renew or make other financial accommodations, to or for the account of Borrower.  This Agreement and the subordination of liens and indebtedness hereunder may not be revoked, rescinded, conditioned or otherwise modified without the prior written consent of the Senior Agent. 

	
8.
	
The Subordinated Creditor shall indemnify the Senior Creditors against all claims, damages, costs, and expenses, including, without limit, reasonable attorneys' fees, incurred by the Senior Creditors in connection with any suit, claim or action arising out this Agreement, except to the extent of the Senior Creditors' gross negligence or willful misconduct determined by a final non-appealable judgement of a court of competent jurisdiction.   

	
9.
	
The Subordinated Creditor delivers this Agreement based solely on the Subordinated Creditor's independent investigation of (or decision not to investigate) the financial condition of Borrower and is not relying on any information furnished by the Senior Creditors. The Subordinated Creditor assumes full responsibility for obtaining any further information concerning Borrower's financial condition, the status of the Senior Indebtedness or any other matter which the Subordinated Creditor may deem necessary or appropriate now or later.  The Subordinated Creditor waives any duty on the part of the Senior Creditors, and agrees that the Subordinated Creditor is not relying upon nor expecting the Senior Creditors to disclose to the Subordinated Creditor any fact now or later known by the Senior Creditors, whether relating to the operations or condition of Borrower, the existence, liabilities or financial condition of any guarantor of the Senior Indebtedness, the occurrence of any default with respect to the Senior Indebtedness, or otherwise, notwithstanding any effect such fact may have upon the Subordinated Creditor's risk or the Subordinated Creditor's rights against Borrower. The Subordinated Creditor knowingly accepts the full range of risk encompassed in this Agreement, which risk includes, without limit, the possibility that Borrower may incur additional Senior Indebtedness owing to the Senior Creditors after the financial condition of Borrower, or its ability to pay Borrower's debts as they mature, has deteriorated. The 

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Subordinated Creditor acknowledges and agrees that the Senior Creditors’ rights under this Agreement are not conditioned upon pursuit by the Senior Creditors of any remedy the Senior Creditors may have against Borrower or any other person or any other security. The absence of Borrower's signature at the end of this Agreement shall in no way impair or affect the validity of this Agreement. 

	
10.
	
The Senior Creditors, in their sole discretion, without notice to the Subordinated Creditor, may release, exchange, enforce and otherwise deal with any security now or later held by the Senior Creditors (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)) for payment of the Senior Indebtedness or release any party now or later liable for payment of the Senior Indebtedness without affecting in any manner the rights of the Senior Creditors under this Agreement. The Subordinated Creditor acknowledges and agrees that the Senior Creditors have no obligation to acquire or perfect any lien on or security interest in any asset(s) (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)), whether realty or personalty, to secure payment of the Senior Indebtedness, and the Subordinated Creditor is not relying upon assets in which the Senior Creditors have or may have a lien or security interest for payment of the Senior Indebtedness.  

	
11.
	
Notwithstanding any prior revocation, termination, surrender, or discharge of this Agreement in whole or in part, the effectiveness of this Agreement shall automatically continue or be reinstated in the event that any payment received or credit given by the Senior Creditors in respect of the Senior Indebtedness is returned, disgorged, or rescinded under any applicable state or federal law, including, without limitation, laws pertaining to bankruptcy or insolvency, in which case this Agreement, shall be enforceable against the Subordinated Creditor as if the returned, disgorged, or rescinded payment or credit had not been received or given by the Senior Creditors, and whether or not the Senior Creditors relied upon this payment or credit or changed its position as a consequence of it.  In the event of continuation or reinstatement of this Agreement, the Subordinated Creditor agrees upon demand by the Senior Creditors to execute and deliver to the Senior Creditors those documents which the Senior Creditors determine are appropriate to further evidence (in the public records or otherwise) this continuation or reinstatement, although the failure of the Subordinated Creditor to do so shall not affect in any way the reinstatement or continuation.    

	
12.
	
The Subordinated Creditor waives any right to require the Senior Creditors to: (a) proceed against any person or property; (b) give notice of the terms, time and place of any public or private sale of personal property security held from Borrower or any other person (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)), or otherwise comply with the provisions of Sections 9-611 or 9-621 of the New York or other applicable Uniform Commercial Code, as the same may be amended, revised or replaced from time to time; or (c) pursue any other remedy in the Senior Creditors' power.  The Subordinated Creditor waives notice of acceptance of this Agreement and presentment, demand, protest, notice of protest, dishonor, notice of dishonor, notice of default, notice of intent to accelerate or demand payment of any Senior Indebtedness, any and all other notices to which the Subordinated Creditor might otherwise be entitled, and diligence in collecting any Senior Indebtedness, and agrees that the Senior Creditors may, once or any number of times, modify the terms of any Senior Indebtedness, compromise, extend, increase, accelerate, renew or forbear to enforce payment of any or all Senior Indebtedness, or permit the Borrower to incur additional Senior Indebtedness, all without notice to the Subordinated Creditor and without affecting in any manner the subordination of the indebtedness and liens hereunder and the unconditional obligations of the Subordinated Creditor under this Agreement.  So long as any Senior Indebtedness remains unpaid or any commitment to extend credit in respect thereof remains outstanding, the Subordinated Creditor shall not, without the prior written consent of the Senior Agent, agree to any amendment, modification or supplement to the Subordinated Agreements.

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13.
	
The Subordinated Creditor acknowledges that the Senior Creditors have the right to sell, assign, transfer, negotiate or grant participations or any interest in, any or all of the Senior Indebtedness and any related obligations, including without limitation this Agreement. In connection with the above, but without limiting its ability to make other disclosures to the full extent allowable, the Senior Creditors may disclose all documents and information which the Senior Creditors now or later have or acquire relating to the Subordinated Creditor and this Agreement, however obtained. The Subordinated Creditor further agrees that the Senior Creditors may disclose such documents and information to the Borrower.  The Subordinated Creditor further agrees that each Senior Creditor may provide information relating to this Agreement or relating to the Subordinated Creditor to such Senior Creditor's parent, affiliates, subsidiaries, advisors and service providers (if any).

	
14.
	
No waiver or modification of any of its rights under this Agreement shall be effective unless the waiver or modification shall be in writing and signed by an authorized representative on behalf of each of the Senior Creditors and the Subordinated Creditor. Each waiver or modification shall be a waiver or modification only with respect to the specific matter to which the waiver or modification relates and shall in no way impair the rights or obligations of the Senior Creditors or the Subordinated Creditor in any other respect. 

	
15.
	
This Agreement shall bind and be for the benefit of the Subordinated Creditor, and the Senior Creditors and their respective successors and assigns, and shall be construed according to the laws of the State of New York, without regard to conflict of laws principles.  If this Agreement is executed by two or more persons, it shall bind each of them individually as well as jointly. 

	
16.
	
The term "Borrower", as used in this Agreement, includes any person, corporation, partnership or other entity which succeeds to the interests or business of Borrower named above, and the terms "Senior Indebtedness" and "Subordinated Indebtedness" include indebtedness of any successor Borrower to the Senior Creditors and the Subordinated Creditor.

	
17.
	
The Subordinated Creditor agrees to reimburse the Senior Creditors, upon demand for any and all costs and expenses (including, without limitation, court costs, legal fees, and reasonable attorney fees whether inside or outside counsel is used, whether or not suit is instituted and, if instituted, whether at the trial or appellate level, in a bankruptcy, probate or administrative proceeding, or otherwise) incurred in enforcing any of the duties and obligations of the Subordinated Creditor under this Agreement. 

	
18.
	
The Subordinated Creditor waives any defense against the enforceability of this Agreement based upon or arising by reason of the application by Borrower of the proceeds of any indebtedness for purposes other than the purposes represented by Borrower to any Senior Creditor or the Subordinated Creditor or intended or understood by the Senior Creditors or the Subordinated Creditor.

	
19.
	
The relative priorities of the security interests of the Senior Creditors and the Subordinated Creditor in the collateral (including, without limitation, the Collateral (as defined in the Subordinated Security Agreement)) as set forth in this Agreement control irrespective of the time, method or order of attachment or perfection of the liens and security interests acquired by the parties in the collateral and irrespective of the priorities as would otherwise be determined by reference to the Uniform Commercial Code or other applicable laws.  The Subordinated Creditor shall not contest the validity, priority or perfection of the Senior Creditors’ security interest in the collateral (regardless of whether the Senior Creditors’ security interest in the collateral is valid or perfected). The priorities of any liens or security interests of the parties in any property of the Borrower other than the collateral are not affected by this Agreement and shall be determined by reference to applicable law. The rights of the Senior Creditors under this Agreement are in 

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addition to, and not in substitution of, its rights under any other subordination agreement with the Subordinated Creditor.   

	
20.
	
THE SUBORDINATED CREDITOR AND THE SENIOR AGENT ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS AGREEMENT.

	
21.
	
EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL COURT OR NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND EACH PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH UNITED STATES FEDERAL COURT OR NEW YORK STATE COURT.  EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY COURT IN OR OF THE STATE OF NEW YORK BY THE DELIVERY OF COPIES OF SUCH PROCESS TO SUCH PARTY AT ITS ADDRESSES SPECIFIED ON THE SIGNATURE PAGES OR BY CERTIFIED MAIL DIRECTED TO SUCH ADDRESS OR SUCH OTHER ADDRESS AS MAY BE DESIGNATED BY SUCH PARTY IN A NOTICE TO THE OTHER PARTIES THAT COMPLIES AS TO DELIVERY WITH THE TERMS OF THE LAST PARAGRAPH OF THIS AGREEMENT. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF THE SENIOR CREDITORS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR LIMIT THE RIGHT OF ANY THE SENIOR CREDITORS TO BRING ANY SUCH ACTION OR PROCEEDING AGAINST THE SUBORDINATED CREDITOR IN THE COURTS WITH SUBJECT MATTER JURISDICTION OF ANY OTHER JURISDICTION.  SUBORDINATED CREDITOR IRREVOCABLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH SUIT OR PROCEEDING IN THE ABOVE DESCRIBED COURTS.

	
22.
	
Except as expressly provided otherwise in this Agreement, all notices and other communications provided to any party hereto under this Agreement shall be in writing and shall be given by personal delivery, by mail or by reputable overnight courier and addressed or delivered to it at its address set forth on signature pages hereto or at such other address as may be designated by such party in a notice to the other parties that complies as to delivery with the terms of this paragraph. Any notice, if personally delivered or if mailed and properly addressed with postage prepaid and sent by registered or certified mail, shall be deemed given when received or when delivery is refused; any notice, if given to a reputable overnight courier and properly addressed, shall be deemed given two (2) business days after the date on which it was sent, unless it is actually received sooner by the named addressee. 

	
23.
	
The Subordinated Creditor irrevocably consents to, and waives any default, event of default, mandatory prepayment or liquidity event arising from the execution, delivery and performance by the parties thereto of the Securities Purchase Agreements, the Notes and the other Senior Agreements, and any security interests and other transactions contemplated by any of the foregoing.  In addition, notwithstanding anything to the contrary in the Subordinated Agreements, the Subordinated Creditor hereby consents to 

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the grant by the Borrower of a security interest in, and lien on, the assets of the Borrower in favor of the Senior Agent and the other Senior Creditors.

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Subordinated Creditor and the Senior Agent have caused this Agreement to be executed as of the date first written above.

 

 

UTAH AUTISM FOUNDATIONSUBORDINATED CREDITOR'S ADDRESS:

 

 

11201 S Susan Drive

Name: David R. Spaffordstreet address

Title: President

SandyUtah84092           

citystatezip

 

 

	
 
	
 

[SIGNATURE PAGE TO SUBORDINATION AGREEMENT]

9

 

 

 

 

HUDSON BAY MASTER FUND LTD.,SENIOR AGENT'S ADDRESS:

as collateral agent

 

 

Name:street address

Title:

            

citystatezip

	
 
	
 

[SIGNATURE PAGE TO SUBORDINATION AGREEMENT]

10

 

BORROWER'S ACKNOWLEDGMENT

Great Basin Scientific, Inc. (the "Borrower") accepts notice of subordination created by this Agreement and agrees that it will take no action inconsistent with this Agreement and that, except with the prior written approval of the Senior Creditors in accordance with the terms of the Securities Purchase Agreements or otherwise as expressly permitted under the terms of the Agreement, no payment or distribution shall be made by Borrower on or with respect to the Subordinated Indebtedness, so long as this Agreement remains in effect.

GREAT BASIN SCIENTIFIC, INC.BORROWER'S ADDRESS

 

 

BY:2441 South 3850 West

Name: Ryan Ashtonstreet address

 

Title:PresidentSalt Lake CityUtah84120

citystatezip

 

 

 

 

Dated:  ______________________________, 2017

	
 
	
 

[SIGNATURE PAGE TO SUBORDINATION AGREEMENT]

11Exhibit 10.10

 

ESCROW
DEPOSIT AGREEMENT

 

This
ESCROW DEPOSIT AGREEMENT (this “Agreement”) dated as of this ___ day of _____________, 2017, by and
among AGM GROUP HOLDINGS, INC., a British Virgin Islands company (the “Company”), having an address
at 1 Jinghua South Road, Wangzuo Plaza East Tower, Room 2112, Beijing, People’s Republic of China 100020, NETWORK 1 FINANCIAL
SECURITIES INC. (the “Underwriter”), having an address at 2 Bridge Avenue, Suite 241, Red Bank, NJ 07701
and SIGNATURE BANK (the “Escrow Agent”), a New York State chartered bank, having an office at 950 Third
Ave, 9th Floor, New York, NY 10022. All capitalized terms not herein defined shall have the meaning ascribed to them in that certain
Prospectus, dated September 19, 2017, including all attachments, schedules and exhibits thereto (the “Prospectus”).

 

W 
I T N E S S E T H:

 

WHEREAS,
pursuant to the terms of the Memorandum the Company desires to sell (the “Offering”) a minimum of $5,000,000
(the “Minimum Amount”) and a maximum of $7,000,000 (the “Maximum Amount”) of its ordinary
shares (the “Shares”). Each Share is being sold at a price of $5.00 per Share, with a minimum investment of
$500.00 (which minimum investment may be waived by Company); and

 

WHEREAS,
unless the Minimum Amount is sold by 90 days from the effective date of the Registration Statement (the Termination Date”),
or up to 60 additional days if extended by agreement of the Company and the Underwriter (the “Final Termination Date”),
the Offering shall terminate and all funds shall be returned to the Investors in the Offering, and if the Minimum Amount is met,
the Offering may continue until the Termination Date or Final Termination Date as applicable; and

 

WHEREAS,
the Company and Underwriter desire to establish an escrow account with the Escrow 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 “Signature Bank as Escrow Agent for AGM Group Holdings,
Inc.,” and Escrow 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 Escrow 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 Escrow Agent that they have not stated to any individual or entity that
the Escrow Agent’s duties will include anything other than those duties stated in this Agreement; and

 

     

     

    

 

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

 

NOW,
THEREFORE, IT IS AGREED as follows:

 

1.           Delivery
of Escrow Funds.

 

(a)
       On or prior to the date of the commencement of the Offering, the parties shall establish
a non-interest bearing escrow account with the Escrow Agent, which escrow account shall be entitled “AGM Group Holdings,
Inc., Signature Bank, as Escrow Agent” (the “Escrow Account”). Underwriter and the Company shall instruct Investors
to deliver to Escrow Agent checks made payable to the order of “Signature Bank, as Escrow Agent for AGM Group Holdings,
Inc.,” or wire transfer to Signature Bank, 950 Third Ave, 9th Floor, New York, NY 10022, ABA No. 026013576 for credit to
Signature Bank, as Escrow Agent for AGM Group Holdings, Inc., Account No. _____________, in each case, with the name and address
of the individual or entity making payment. The Underwriter shall forward any and all checks, drafts, and money orders so received
by the Underwriter to the Escrow Agent by noon of the next business day following the receipt, together with a written account
of each purchaser which sets forth, among other things, the name and address of the purchaser, the number of securities purchased
and the amount paid therefor. Any checks received which are made payable to any party other than the Escrow Agent, shall be returned
to the Investor who submitted the check and not accepted. In the event any Investor’s address is not provided to Escrow
Agent by the Investor, then Underwriter and/or the Company agree to promptly provide Escrow Agent with such information in writing.
The checks or wire transfers shall be deposited into the Escrow Account.

 

(b)       The
Underwriter agrees that it shall promptly deliver all monies received from the Investors for the payment of the Shares to the
Escrow Agent for deposit in the Escrow Account together with a written account of each sale, which account shall set forth, among
other things, the Investor's name and address, the number of securities purchased, the amount paid therefor, and whether the consideration
received was in the form of a check, draft, or money order. The collected funds deposited into the Escrow Account are referred
to as the “Escrow Funds.”

 

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

 

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

 

(a)        In
the event that the Company and Underwriter advise the Escrow Agent in writing that the Offering has been terminated (the “Termination
Notice”), the Escrow Agent shall promptly return the funds paid by each Investor to said Investor without interest or
offset by noon of the next business day after the Termination Date.

 

    2

     

    

 

(b)        If prior to 3:00 P.M. Eastern time on the Termination Date, the Escrow 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 Termination Date has been
extended to the Final Termination Date (the “Extension Notice”), then the Termination Date shall be so extended.

 

(c)
       Provided that the Escrow Agent does not receive the Termination Notice in accordance
with Section 2(a) and there is the Minimum Amount deposited into the Escrow Account on or prior to later of the Termination Date
or the date stated in the Extension Notice, if any, received by the Escrow Agent in accordance with Section 2(b) above, the Escrow
Agent shall, upon receipt of written instructions, in the form of Exhibit B, attached hereto and made a part hereof, or in a form
and substance satisfactory to the Escrow Agent, received from the Company and Underwriter, pay the Escrow 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 Escrow Agent no later than 3:00 PM Eastern Time on a Banking
Day for the Escrow Agent to process such instructions that Banking Day. In no event will the escrow amount be released to the
Company until such amount is received by the Escrow Agent in the Escrow Funds.

 

(d)        If
by 3:00 P.M. Eastern time on the later of the Termination Date or the date stated in the Extension Notice, if any, that the Escrow
Agent has received in accordance with Section 2(b) above, the Escrow Agent has not received written instructions from the Company
and Underwriter regarding the disbursement of the Escrow Funds or the total amount of the Escrow Funds is less than the Minimum
Amount, then the Escrow Agent shall promptly return the Escrow Funds to the Investors without interest or offset by noon of the
next business day after the Termination Date, or the Final Termination as applicable. The Escrow Funds returned to each Investor
shall be free and clear of any and all claims of the Escrow Agent.

 

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

 

(f)        If
the Termination Date, Final Termination Date or any date that is a deadline under this Agreement for giving the Escrow Agent notice
or instructions or for the Escrow Agent to take action is not a Banking Day, then such date shall be the Banking Day that immediately
preceding that date. A “Banking Day” is any day other than a Saturday, Sunday or a day that a New York State
chartered bank is not legally obligated to be opened.

 

(g)        The
escrow period (“Escrow Period”) shall begin with the commencement of the Offering and shall terminate upon
the earlier to occur of the following dates:

 

A.
The date upon which the Escrow Agent confirms that it has received in the Escrow Account the Minimum Amount;

 

B.
The Termination Date or Final Termination Date as applicable;

 

C.
The date upon which a determination is made by the Company and the Underwriter to terminate the Offering prior to the sale of
the Minimum Amount.

 

    3

     

    

 

During
the Escrow Period, the Company is aware and understands that pursuant to the terms herein it is not entitled to any funds received
into escrow and no amounts deposited in the Escrow Accounts shall become property of the Company or any other entity, or be subject
to the debts of the Company or any other entity.

 

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

 

(a)        The
Escrow 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. Escrow 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 Escrow Agent of such change in accordance with this Agreement, which notice shall
include the true signature for any new authorized signatories.

 

(b)        The
Escrow Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith. The Escrow
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 Escrow 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 Escrow Agent arising out of or related, directly or indirectly, to this Escrow Agreement unless caused by the Escrow
Agent’s gross negligence or willful misconduct.

 

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

 

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

 

    4

     

    

 

4.           Escrow
Account Statements and Information. The Escrow Agent agrees to send to the Company and/or the Underwriter a copy of the Escrow
Account periodic statement, upon request in accordance with the Escrow Agent’s regular practices for providing account statements
to its non-escrow clients and to also provide the Company and/or Underwriter, or their designee, upon request other deposit account
information, including Escrow 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 Escrow Agent for that purpose. The Company
and Underwriter each consent to the Escrow Agent’s release of such Escrow 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 Escrow 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 Escrow Agent’s release of wire
transfer information to the designated e-mail address(es). The Escrow Agent’s liability for failure to comply with this
section shall not exceed the cost of providing such information.

 

5.           Resignation
and Termination of the Escrow Agent. The Escrow 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 Escrow Agent shall have no further obligation
hereunder except to hold as depositary the Escrow Funds that it receives until the end of such 30-day period. In such event, the
Escrow 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 Escrow Agent shall promptly deliver the Escrow
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 Escrow Agent may deposit the Escrow 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 Escrow Agent shall be relieved of all further obligations and released from all liability thereafter
arising with respect to the Escrow Funds.

 

6.           Term;
Termination. This Agreement shall terminate upon the disbursement of all Escrow Funds in the Escrow Account (except with respect
to provisions hereof which are specifically intended to survive such termination). The Company and Underwriter may terminate the
appointment of the Escrow 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 escrow agent and the Escrow Agent shall, upon receipt of written instructions
signed by the Company and Underwriter, turn over to such successor escrow agent all of the Escrow Funds; provided, however,
that if the Company and Underwriter fail to appoint a successor escrow agent within such 30-day period, such termination notice
shall be null and void and the Escrow Agent shall continue to be bound by all of the provisions hereof. Upon receipt of the Escrow
Funds, the successor escrow agent shall become the escrow agent hereunder and shall be bound by all of the provisions hereof and
Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the
Escrow Funds and under this Agreement.

 

    5

     

    

 

7.           Investment.
All funds received by the Escrow Agent shall be held only in non-interest bearing bank accounts at Signature Bank.

 

8.           Compensation.
Escrow Agent shall be entitled, for the duties to be performed by it hereunder, to a fee of $4,000.00, which fee shall be paid
by the Company upon the signing of this Agreement. In addition, the Company shall be obligated to reimburse Escrow Agent for all
fees, costs and expenses incurred or that become due in connection with this Agreement or the Escrow Account, including reasonable
attorney’s fees. Neither the modification, cancellation, termination or rescission of this Agreement nor the resignation
or termination of the Escrow Agent shall affect the right of Escrow 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 Escrow Agent has incurred any such expenses, or any such
fee becomes due, prior to any closing, the Escrow Agent shall advise the Company and the Company shall direct all such amounts
to be paid directly at any such closing. The Escrow Agent shall be entitled to a fee of $1,000 in the event the Agreement is amended
for any reason in accordance with Section 10(d).

 

9.           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:

 

Network
1 Financial Securities, Inc.

2
Bridge Avenue, Suite 241

Red
Bank, NJ 07701

Attention:
Damon D. Testaverde, CEO

Fax:
(732) 758-6671

 

With
copy to:

 

Mei & Mark LLP

818
18th Street NW, Suite 410

Washington,
D.C., 20006

Attention:
Fang Liu, Esq.

 

If
to the Company:

 

AGM
Group Holdings, Inc.

1
Jinghua South Road, Wangzuo Plaza East Tower

Room
2112

Beijing,
People’s Republic of China 100020

Attention:
Mr. Wenjie Tang, CEO

 

    6

     

    

 

With
copy to:

 

Ortoli
Rosenstadt LLP

501
Madison Avenue, 14th Floor

New
York, NY 10022

Attention:
William S. Rosenstadt, Esq.

Mr.
Mengyi “Jason” Ye, Esq.

 

If
to Escrow Agent:

 

Signature
Bank

950
Third Ave, 9th Floor

New
York, NY 10022

Attention:
John Gonzalez, Senior Vice President

Fax:
+1 646 822 1520

 

With
copy to:

 

Signature
Bank

565
Fifth Avenue, 8th Floor

New
York, New York 10017

Attention:
General Counsel

Fax:
+1 646 758-8188

 

10.         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 County 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.

 

    7

     

    

 

(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.

 

(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.

 

11.         Regulatory
Compliance.

 

(a)
       The Company and Underwriter agree to observe and comply, to the extent applicable, with
all anti-money laundering laws, rules and regulations including, without limitation, regulations issued by the Office of Foreign
Assets Control (“OFAC”) of the United States Department of Treasury and the Financial Crimes Enforcement Network
of the U.S. Department of Treasury. Company and Underwriter represent and warrant to Escrow Agent that (i) no Investor shall be
located in an OFAC sanctioned country; (ii) no Investor shall be a person listed on OFAC’s list of Specially Designated
Nationals and Blocked Persons, or other government sanctioned list; and (iii) except as otherwise specifically provided in this
Section, none of the escrow funds shall originate from an OFAC sanctioned country. Company and Underwriter acknowledge and agree
that if Escrow Agent receives a “hit” or “alert” in connection with a Investor, Company and/or Underwriter
shall provide Escrow Agent with the name, address and date of birth of such Investor or person within a timely manner. In the
event that the Escrow Agent is unable to clear the “hit” or “alert” using such information, Company and
Underwriter agree to reasonably cooperate with Escrow Agent and provide such additional information as Escrow Agent may reasonably
request in order to evaluate the subject transfer. Additionally, if Escrow Agent receives a funds transfer that originated from
an OFAC sanctioned country, Company and Underwriter shall provide Escrow Agent with evidence of OFAC approval, reasonably satisfactory
to Escrow Agent, appropriate for the specific sanctions program that permits the subject funds transfer (“OFAC Approval”).
Company and Underwriter further acknowledge and agree that Escrow Agent shall “block” or “reject” (as
the case may be) any monies or funds without liability hereunder, unless and until the “hit” or “alert”
is cleared, such Investor’s or person transferring funds on behalf of Investor’s identity has been verified to Escrow
Agent’s reasonable satisfaction, or the OFAC Approval has been provided to and verified by Escrow Agent. Funds rejected
by the Escrow Agent are returned to the Investor and will be rejected if required by the regulation or as Escrow Agent deems necessary.
Escrow Agent shall not be obligated to accept funds that are received from third parties on behalf of, or for the benefit of,
Investor.

 

    8

     

    

 

(b)       Company
and Underwriter shall provide to the Escrow Agent such information regarding the Company and Underwriter, any prospective or actual
Investor, or any person transferring funds on behalf of any prospective or actual Investor as the Escrow Agent may require to
enable the Escrow Agent to comply with its obligations under the Bank Secrecy Act of 1970, as amended (the “BSA”),
or any regulations enacted pursuant to the BSA or any regulations, guidance, supervisory directive or order of the New York State
Department of Financial Services or Federal Deposit Insurance Corporation. The Escrow Agent shall not make any payment of all
or any portion of the Escrow Funds to any person unless and until such person has provided to the Escrow Agent such documents
as the Escrow Agent may require to enable the Escrow Agent to comply with its obligations under the BSA.

 

(c)       To
help the United States government fight funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person who opens an account. When an account is opened,
and from time to time as may be required by the Escrow Agent’s internal policies and procedures, the Escrow Agent shall
be entitled to ask for information that will allow the Escrow Agent to identify relevant parties. For a non-individual person
such as a business entity, a charity, a trust, or other legal entity, the Escrow Agent may ask for documentation to verify its
formation and existence as a legal entity. The Escrow Agent may also ask to see financial statements, licenses, identification,
and authorization documents from individuals claiming authority to represent the entity or other relevant documentation. Company
and Underwriter acknowledge that a portion of the identifying information set forth herein is being requested by the Escrow Agent
in connection with Title III of the USA Patriot Act, Pub.L. 107-56 (the “Act”), and each party agrees to provide
any additional information requested by the Escrow Agent in its sole discretion in connection with the Act or any other legislation,
regulation, regulatory order or published guidance to which the Escrow Agent is subject, in a timely manner.

 

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.

 

    9

     

    

 

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

 

	AGM GROUP HOLDINGS, INC.	 	NETWORK 1 FINANCIAL SECURITIES INC.
	 	 	 	 	 	 	 
	By:	 	 	By:	 
	 	Name:	Wenjie Tang	 	 	Name:  	Damon D. Testaverde
	 	Title:  	CEO	 	 	Title:	CEO
	 	 	 	 	 	 	 
	SIGNATURE BANK	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 	 
	 	Name:	John Gonzalez	 	 	 	 
	 	Title:	Senior Vice President	 	 	 	 
	 	 	 	 	 	 	 
	By:	 	 	 	 	 
	 	Name:	Stephen Fay	 	 	 	 
	 	Title:   	Senior Client Associate Officer	 	 	 	 

 

    10

     

    

 

Schedule
I

 

OFFERING
DOCUMENTS

 

 

     

     

    

 

Schedule
II

 

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

 

AGM
Group Holdings, Inc.

 

	 	Name	 	True Signature	 
	 	 	 	 	 
	 	Wenjie Tang	 	 	 

 

Network
1 Financial Securities Inc.

 

	 	Name	 	True Signature	 
	 	 	 	 	 
	 	Damon D. Testaverde	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

     

     

    

 

Exhibit
A

 

FORM
OF ESCROW RELEASE NOTICE

 

Date:

 

Signature
Bank

950
Third Ave, 9th Floor

New
York, NY 10022

Attention:
John Gonzalez, Group Director & SVP

 

Dear
Mr. Gonzalez:

 

In
accordance with the terms of Section 2(c) of an Escrow Deposit Agreement dated as of ________ __, 20__ (the "Escrow Agreement"),
by and between AGM Group Holdings, Inc. (the "Company"), Signature Bank (the "Escrow Agent")
and Network 1 Financial Securities, Inc. ("Underwriter"), the Company and Underwriter hereby notify the Escrow
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,

 

AGM
Group Holdings, Inc.

 

	By:	       	 
	Name:	 	 
	Title:	 	 

 

Network
1 Financial Securities, Inc.

 

	By:	       	 
	Name:	 	 
	Title:

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