Document:

Exhibit 10.5

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”), dated as of Column A (the “Effective Date”), is entered between Yintech Investment Holdings Limited, a company incorporated in the Cayman Islands (the “Company”) and Column B (the “Executive”).

 

WHEREAS, the Company and the Executive wish to enter into an employment agreement whereby the Executive will be employed by the Company in accordance with the terms and conditions stated below;

 

NOW, THEREFORE, the parties hereby agree as follows:

 

ARTICLE 1
 EMPLOYMENT, DUTIES AND RESPONSIBILITIES

 

Section 1.01.  Employment.  The Executive shall serve as the Column C of the Company.  The Executive hereby accepts such employment and agrees to devote substantially all of the Executive’s time and efforts to promoting the interests of the Company.

 

Section 1.02.  Duties and Responsibilities.  Subject to the supervision of and direction by the Board of Directors of the Company, the Executive shall perform such duties as are similar in nature to those duties and services customarily associated with the positions set forth above.

 

Section 1.03.  Base of Operation.  The Executive’s principal base of operation for the performance of his duties and responsibilities under this Agreement shall be the offices of the Company in Beijing, the People’s Republic of China (“PRC”), and at such other places as shall from time to time be reasonably necessary to fulfill the Executive’s obligations hereunder.

 

ARTICLE 2
 TERM

 

Section 2.01.  Term.  (a)  The term of this Agreement (the “Term”) shall commence on the Effective Date and shall continue for a period of two years from the Effective Date.  The Term and this Agreement will be renewed automatically thereafter for successive one-year terms unless a one-month notice of non-renewal is given by one party to the other.

 

(b)                                 The Executive represents and warrants to the Company that neither the execution and delivery of this Agreement nor the performance of the Executive’s duties hereunder violates or will violate the provisions of any other agreement to which the Executive is a party or by which the Executive is bound.

 

ARTICLE 3
 COMPENSATION AND EXPENSES

 

Section 3.01.  Salary And Benefits.  The Executive’s salary and benefits shall be determined by the Company and shall be specified in a separate agreement between the Executive and the Company’s designated subsidiary or affiliated entity. Unless otherwise provided in such separate agreement, the Executive’s salary and benefits are subject to annual review and adjustment by the Company.

 

 

Section 3.02  Expenses.  The Company will reimburse the Executive for reasonable documented business-related expenses incurred by the Executive in connection with the performance of the Executive’s duties hereunder during the Term, subject, however, to the Company’s policies relating to business-related expenses as in effect from time to time during the Term.

 

Section 3.03.  Stock Incentive Plan. The Executive shall be entitled to participate during the Term in the Amended and Restated 2013 Pre-IPO Option Scheme, Amended and Restated 2014 Pre-IPO Option Scheme and Amended and Restated Pre-IPO RSU Scheme of the Company, and any successors thereto, subject to the terms and provisions of such plans and the execution of the award agreements between the Company and the Executive.

 

Section 3.04  Payer of Compensation. All compensation, salary, benefits and remuneration in this Agreement may be paid by the Company or any of its subsidiaries or affiliated entities, as decided by the Company in its sole discretion.

 

ARTICLE 4
 EXCLUSIVITY, ETC.

 

Section 4.01.  Exclusivity.  The Executive agrees to perform his duties, responsibilities and obligations hereunder efficiently and to the best of his ability. The Executive agrees to devote substantially all of his working time, care and attention and best efforts to such duties, responsibilities and obligations throughout the Term. The Executive agrees that all of his activities as an employee of the Company shall be in conformity with all present and future policies, rules and regulations and directions of the Company not inconsistent with this Agreement.

 

Section 4.02. Intellectual Property. The Executive agrees that Intellectual Property under this Agreement is the sole and exclusive property of the Company and further agrees to assign to the Company the ownership of all right, title and interest in Intellectual Property, including any Intellectual Property conceived, created, and otherwise obtained by the Executive (i) during the term of this Agreement relating to the work he performs within the scope of such Executive’s employment with the Company, (ii) within twelve months after the Executive retires or ends employment with the Company under the circumstances that such Intellectual Property relates to such Executive’s employment scope with the Company, and (iii) by using the resources of the Company during the term of this Agreement. During the Executive’s employment with the Company and within twelve months after his employment with the Company terminates, the Executive has the obligation to inform the Company of any Intellectual Property within ten days of its creation and the Executive has the obligation to assist the Company in its patent, copyright or trademark application related to the Intellectual Property.

 

“Intellectual Property” under this Section 4.02 means any and all intellectual property in any form or stage of development, including but not limited to any idea, concept, design, invention, method, process, system, model, software, know-how and any other subject matter, material or information that qualifies and/or is considered by the Company to qualify for patent, copyright, trademark, trade secret, or any other protection under the laws of PRC or Cayman Islands providing or creating intellectual property rights.

 

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Section 4.03. Non-Competition and Confidentiality.

 

(a) Non-compete. During the Executive’s employment with the Company and for twelve months after his employment with the Company terminates for any reason, the Executive will not (i) directly or indirectly engage in (whether as an officer, principal, agent, director, employee, partner, affiliate, consultant or other participant), or hold an equity interest of 5% or more in, any business or activity that is in competition with the Company, its subsidiaries or affiliated entities (the “Group”), (ii) solicit, encourage or assist other employees of the Company to seek employment with any business or organization in competition with the Group, or (iii) engage in other activities that may cause conflicts with the interests of the Company during the term of the employment agreement.

 

(b) Confidentiality. Throughout the course of the Executive’s employment with the Company and thereafter, the Executive shall keep in strict confidence all non-public information relating to the business, financial condition and other aspects of the Company, including but not limited to trade secrets, business methods, products, processes, procedures, development or experimental projects, plans, service providers, customers and users, intellectual property, information technology and any other information which is material to the Company’s business operations, and except as authorized by the Company in writing, may not disclose or provide to any person, firm, corporation or entity such non-public information, and may not use such non-public information for any purpose other than to fulfill his responsibilities as the Column C in the best interest of the Company. The Executive shall also comply with the Company’s corporate policies and any other agreements on confidentiality that the Executive may enter into with the Company or any of its subsidiaries or affiliated entities. This provision and such other confidentiality policies and agreements are hereinafter collectively referred to as the “Confidentiality Terms.”

 

ARTICLE 5
 TERMINATION AND INDEMNIFICATION

 

Section 5.01.  Termination by Company.  The Company shall have the right to terminate the Executive’s employment at any time with or without “Cause” by giving a one-month advance notice in writing pursuant to the terms hereof. For purposes of this Agreement, “Cause” shall mean:  (i) the Executive’s willful and continued failure to substantially perform his duties hereunder (other than as a result of total or partial incapacity due to physical or mental illness), (ii) dishonesty in the performance of the Executive’s duties hereunder, (iii) an act or acts on the Executive’s part constituting a felony under the laws of the PRC or of the United States or any state thereof, (iv) any other act or omission which is materially injurious to the financial condition or business reputation of the Company or any of its subsidiaries or affiliates, or (v) the Executive’s breach of the non-compete and confidentiality clause hereof. For purposes of this Subsection, no act or failure to act, on the part of the Executive shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the act or omission of the Executive was in the best interest of the Company.

 

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Section 5.02.  Termination by The Executive.  The Executive shall have the right to terminate this Agreement at any time by giving a one-month advance notice in writing pursuant to the terms hereof.

 

Section 5.03.  Death.  In the event the Executive passes away during the Term, this Agreement shall automatically terminate, such termination to be effective on the date of the Executive’s death.

 

Section 5.04.  Disability.  In the event that the Executive shall suffer a disability which shall have prevented him or her from performing satisfactorily his obligations hereunder for a period of at least 120 consecutive days, the Company shall have the right to terminate this Agreement, such termination to be effective upon the giving of notice thereof to the Executive in accordance with Section 6.02 hereof.

 

Section 5.05.  Effect of Termination.  (a)  In the event of termination of the Executive’s employment, whether before or after the Term, by either party for any reason, or by reason of the Executive’s death or disability, the Company shall pay to the Executive (or his beneficiary in the event of his death) any base salary or other compensation earned but not paid to the Executive prior to the effective date of such termination. All other benefits due the Executive following his termination of employment shall be determined in accordance with the plans, policies and practices of the Company.

 

(b)                                 In the event of termination of the Executive’s employment by the Company other than for Cause, the Company shall pay to the Executive any additional amount as provided by applicable law.

 

ARTICLE 6
 MISCELLANEOUS

 

Section 6.01.  Benefit Assignment; Assignment; Beneficiary.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns, including, without limitation, any corporation or person which may acquire all or substantially all of the Company’s assets or business, or with or into which the Company may be consolidated or merged. This Agreement shall also inure to the benefit of, and be enforceable by, the Executive and his personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amount would still be payable to him or her hereunder if the Executive had continued to live, all such amounts shall be paid in accordance with the terms of this Agreement to the Executive’s beneficiary, devisee, legatee or other designee, or if there is no such designee, to the Executive’s estate.

 

Section 6.02.  Notices.  Any notice required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered or if sent by registered or certified mail, national overnight courier, or email. In the case of the Company, to the office or email account of the Human Resource Department; and in the case of the Executive, to the address or email account appearing on the employment records of the Company, from time to time. Any notice given hereunder shall be deemed to have been given at the time of receipt thereof by the person to whom such notice is given.

 

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Section 6.03.  Entire Agreement; Amendment.  This Agreement contains the entire agreement of the parties hereto with respect to the terms and conditions of the Executive’s employment during the Term and supersedes any and all prior agreements and understandings, whether written or oral, between the parties hereto with respect to compensation due for services rendered hereunder. This Agreement may not be changed or modified except by an instrument in writing signed by both of the parties hereto.

 

Section 6.04.  Waiver.  The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a continuing waiver or as a consent to or waiver of any subsequent breach hereof.

 

Section 6.05.  Headings.  The article and section headings herein are for convenience of reference only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

Section 6.06.  Governing Law.  This Agreement shall be governed by, and construed and interpreted in accordance with, the internal laws of the state of New York, United States, without reference to the principles of conflict of laws.

 

Section 6.07.  Agreement To Take Actions.  Each party hereto shall execute and deliver such documents, certificates, agreements and other instruments, and shall take such other actions, as may be reasonably necessary or desirable in order to perform his, her or its obligations under this Agreement or to effectuate the purposes hereof.

 

Section 6.08.  Arbitration.  Any dispute between the parties hereto respecting the meaning and intent of this Agreement or any of its terms and provisions shall be submitted to arbitration in Hong Kong, in accordance with the Hong Kong International Arbitration Centre Administered Arbitration Rules then in effect, and the arbitration determination resulting from any such submission shall be final and binding upon the parties hereto.  The arbitrator shall have no authority to award reasonable attorney’s fees to any party in any dispute subject to this Section 6.08.  Judgment upon any arbitration award may be entered in any court of competent jurisdiction.

 

Section 6.09.  Survivorship.  The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

 

Section 6.10.  Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect.

 

Section 6.11.  Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

Section 6.12.  Corporate Authorization.  The Company hereby represents that the execution, delivery and performance by the Company of this Agreement are within the corporate powers of the Company, and that the Chairman of its Board of Directors has the requisite authority to bind the Company hereby.

 

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Section 6.13.  Withholding.  All payments to the Executive hereunder shall be subject to withholding to the extent required by applicable law.

 

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IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date first above written.

 

	
 
    	
YINTECH INVESTMENT HOLDINGS   LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Wenbin Chen 
    
	
 
    	
 
    	
Name: Wenbin Chen 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title: Chairman of the Board and
    
	
 
    	
 
    	
 Chief Executive   Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Column B
    
	
 
    	
Name: Column B
    
	
 
    	
 
    
	
 
    	
Title: Column C
    

 

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Schedule A to the Employment Agreement

 

	
 
    	
 
    	
Column A
    	
 
    	
Column B
    	
 
    	
Column C
    
	
1
    	
 
    	
December 10, 2015
    	
 
    	
Wenbin Chen
    	
 
    	
Chief Executive Officer
    
	
2
    	
 
    	
December 10, 2015
    	
 
    	
Gang Xu
    	
 
    	
Vice President
    
	
3
    	
 
    	
December 10, 2015
    	
 
    	
Dikuo Bo
    	
 
    	
Vice President
    
	
4
    	
 
    	
December 10, 2015
    	
 
    	
Jigeng Chen
    	
 
    	
Vice President
    
	
5
    	
 
    	
December 10, 2015
    	
 
    	
Qi Feng
    	
 
    	
Vice President
    
	
6
    	
 
    	
December 10, 2015
    	
 
    	
Sheng Zhao
    	
 
    	
Vice President
    
	
7
    	
 
    	
December 10, 2015
    	
 
    	
Jingbo Wang
    	
 
    	
Chief Financial OfficerExhibit 10.6

 

Tianjin Precious Metals Exchange

 

Comprehensive Membership Agreement

 

Party A: Tianjin Precious Metals Exchange Co., Ltd.

Address: W28, Airport Business Park, 76 Huanhe North Road, Airport Economic Zone, Tianjin

Postal Code: 300300

Tel.: 022 - 58678141

Fax: 022 - 58678112

Legal representative:

Bank of Deposit:

Bank Account No.:

 

Party B: Tianjin Rong Jin Hui Yin Precious Metals Management Co., Ltd.

Address: Building #1, Dongfang Shangbo Industrial Park, 3539 Dongfang Road, Pudong New Area, Shanghai

Postal Code: 200125

Tel.: 021 - 20289105

Fax: 021 - 20289076

Legal Representative: Chen Wenbin

Name of Settlement Bank: Tianjin Airport Sub-branch, China Merchants Bank Company Limited

Account Number of Settlement Bank: 122903999110802

 

 

Whereas:

 

1. Party A , namely Tianjin Precious Metals Exchange Co., Ltd. is a market organization which provides trading platform and related services for the investors (i.e. the clients) and members to engage in spot trading of precious metals and deferred spot settlement business, safeguards the legal rights and interests of the parties concerned, regulates and supervises the trading behaviors of all parties involved. Party A has be under normal operation upon consent from Tianjin Municipal People’s Government.

 

2. Party B, namely Tianjin Rong Jin Hui Yin Precious Metals Management Co., Ltd. fully accepts and agrees to observe various systems, rules and methods formulated by party A, and intends to become a comprehensive member of party A and undertakes to conduct relevant business as required by party A.

 

In accordance with the laws including Contract Law of the People’s Republic of China and other regulations as well as party A’s rules, both parties enter into the following agreements for party B becoming a comprehensive member of party A, using the platform with services and management provided by party A to develop spot trading of precious metals and deferred spot settlement business.

 

Article 1 Confirmation and acceptance of party A’s systems, rules and methods

 

1. Party A and party B confirm that, Tianjin Precious Metals Exchange Trading Rules (for Silver), Tianjin Precious Metals Exchange Trading Rules (for Porpezite), Tianjin Precious Metals Exchange Trading Rules (for Platinum) and other trading rules formulated by the Exchange for relevant trading categories, Management Methods of Tianjin Precious Metals Exchange for Comprehensive Members, Management Methods of Tianjin Precious Metals Exchange for Risk Control, Tianjin Precious Metals Exchange Settlement Management Method, Management Method of Tianjin Precious Metals Exchange for Fund Difference between Settlement Bank and Deposit Bank, Management Methods for Trading Funds of Tianjin Precious Metals Exchange, Management Methods of Tianjin Precious Metals Exchange for Spot Delivery, Management Methods for Spot Delivery of Platinum and Porpezite at Tianjin Precious Metals Exchange, Trading Rules for Comprehensive Members and Special Members of Tianjin Precious Metals Exchange, Management Methods for Non-client Position Trading between Comprehensive Members and Special Members at Tianjin Precious Metals Exchange, Tianjin Precious Metals Exchange Member Unit Branch Methods, Methods for Propaganda and Management of Member Units at Tianjin Precious Metals Exchange, Tianjin Precious Metals Exchange Members Compliance Management Methods, Management Methods for Clients’ Account Data Preservation of Tianjin Precious Metals Exchange, Member Units Intermediary Management Methods of Tianjin Precious Metals Exchange, Management Methods for Investor Account Opening and Cancellation of Tianjin Precious Metals Exchange, Methods for Coping with Non-Trading Risks of Tianjin Precious Metals Exchange and other systems, rules and methods currently effective and to be formulated and amended from time to time are necessary for ensuring justice and fairness of trading and risk control, and party B is committed to observe and strictly execute these systems, rules and methods.

 

2. Party B confirms that, party B has carefully read various systems, rules and methods issued 

 

 

by party A before signing this Agreement, and has fully understood various obligations and responsibilities which shall be undertaken to engage in the precious metals trading business as a  comprehensive member of party A. Party B promises to accept and abide by all systems, rules and methods formulated by party A without preconditions (including but not limited to the systems, rules and methods mentioned in the preceding paragraph, modifications to the above mentioned systems, rules and methods made depending on the trading or market situations from time to time, and new systems, rules and methods formulated by party A in accordance with the trading or market situations), accepts their restrictions, voluntarily assumes all risks and legal responsibilities arsing from this, and accepts party A’s management, supervision and inspection.

 

Article 2 Agreement performance method and contents

 

(1) Contents of cooperation: party A provides trading platform and related services including quotation, consultation, training and coordinated management; party B becomes a member of party A, and utilizes the trading platform to complete the trading with investors, and shall pay the annual management fee to party A on an annual basis, and pay the training and consultation service fee to party A in a lump sum;

 

(2) Term of cooperation: the term of cooperation between party A and party B commences on the date of signature of this Agreement, and ends on the date when party B’s membership terminates;

 

(3) Party B’s member seat No.: 160

 

(4) Other contents to be defined: risk deposit paid by party B (including 5 million Yuan of minimum risk deposit at the beginning of the period, minimum risk deposit required for controlling the trading risks) are used as guarantees towards the trading risks and other risks associated with the trading, and such payment shall not be refunded during performance of this Contract. Upon termination of party B’s membership and after the procedures for termination of membership are handled, the residual parts can be refunded to party B.

 

Article 3 Rights and obligations of party A

 

1. Party A’s rights mainly include:

 

(1) Audit party B to decide whether party B is qualified to be party A’s member or can continue to be a member of party A, and suspend or terminate (cancel) party B’s membership;

 

(2) Collect the entrance training and consultation fee and annual management fee and other charges from party B, and adjust the above mentioned charging standards based on the market situations;

 

(3) Use hardware equipments deployed by party B;

 

(4) Require party B to withdraw, deposit and use risk reserves according to the systems and regulations regarding the member risk reserve management;

 

(5) Draft and amend relevant systems, rules and methods, regulate and check party B’s trading behaviors, propaganda and other behaviors;

 

(6) Take punitive measures in case party B violates party A’s systems, rules and methods;

 

(7) Collect the trading management fee in proportion to the sum of each trading; adjust such fee based on the market situation and trading scale;

 

(8) To control the risks of the whole trading system, when party A thinks that party B is exposed to the trading risk, party A has rights to (but is not obliged to) give risk warning to party 

 

 

B via telephone call, e-mail and trading system;

 

(9) Where party B suffers trading risks, but fails to replenish the risk deposit within a certain time limit according to party A’s regulations or requirements, party A shall have the right to take  measures including limitation on trading, cease of trading, suspension or cancellation of party B’s membership and other measures that can control risks.

 

(10) Adjust party B’s minimum risk deposit limit based on the market risk extent and trading scale;

 

(11) If party B suffers fund difference or other abnormal cases in the process of withdrawal and deposit, party A has the rights to deal with such fund difference according to Management Method of Tianjin Precious Metals Exchange for Fund Difference between Settlement Bank and Deposit Bank.

 

(12) Assist the public security organs, people’s courts and other judicial offices to handle preservation and compulsory execution, and party B shall be held liable for risk control and supplement the risk deposit as required by party A if party B’s risk deposit is frozen or reduced as party A assists the judicial offices for preservation and compulsory execution; party A is entitled to assist the judicial office for investigation and evidence collection.

 

(13) If party B is suspected of violation or suffers non-trading risks, before confirming such violation and non-trading risk, party A can limit party B to withdraw and trade and employ other restrictive measures for the purpose of controlling further expansion of consequences caused by such violation and non-trading risk;

 

(14) Where party B violates the national laws and regulations as well as party A’s management system, and non-trading risks that may influence normal operation exist, party A has the right to suspend or cancel party B’s membership depending on the extent of violation, breach and non-trading risks.

 

(15) In case party B’s membership is suspended or canceled, party A is entitled to dispose of party B’s clients and transfer relevant data, and party B shall have no objection but to cooperate.

 

(16) The disposal decisions, related notices and announcement made by party A take effect from the date when they are delivered by party A (sent to the  contact address provided by party B, served to the contact address provided by party B or sent via the trading system).

 

(17) When the membership of other members are suspended or terminated (canceled), party A has the right to designate party B as the receiving member.

 

(18) Where party B conducts serious breach and violates the Exchange’s management regulations or party A disqualifies party B to be a member of party A, party A has the right to terminate this Agreement.

 

(19) To properly safeguard the security of trading data, party A is entitled to require the members to sign a data custody agreement with a designated third party, and provide the trading data to such third party.

 

2. Party A’s obligations mainly include:

 

(1) Provide the trading platform for party B to trade with the investors as agreed;

 

(2) Provide services of consultation, training and coordinated management related with the trading;

 

(3) Maintain stable operation of the trading platform;

 

(4) Properly take care of the trading data;

 

(5) Manage the trading behaviors and safeguard the legal rights and interests of party B and

 

 

investors during trading.

 

Article 4 Rights and obligations of party B

 

1. Party B’s rights mainly include:

 

(1) Carry out propaganda and develop clients;

 

(2) Use the trading platform to carry out spot trading of precious metals and spot deferred settlement trading;

 

(3) Participate in various training activities organized by party A;

 

(4) Expand the market according to party A’s regulations.

 

2. Party B’s obligations mainly include:

 

(1) Party B shall accept party A’s management according to Management Methods for Comprehensive Member of Tianjin Precious Metals Exchange, and pay sufficient the entrance training and consultation service fee (RMB 2 million Yuan, which shall be paid in a lump sum and not be refunded in any cases) and annual management fee (RMB 100,000 Yuan/year), and handle annual review of membership qualification;

 

(2) Party B shall pay full amount of risk deposit to party A and the initial minimum reserve risk deposit shall be RMB 5 million Yuan;

 

(3) Party B shall not waive obtained membership without permission. It is prohibited to transfer the membership in any ways (including but not limited to contract, lease, mortgage and lend);

 

(4) Party B shall follow the Exchange’s regulations on management of member’s risk reserves to withdraw, deposit and use the risk reserves;

 

(5) Party B shall arrange production, trading, delivery and re-purchase of subject spot precious metals according to party A’s regulations;

 

(6) Party B shall strictly abide by the deposit system, position limit system, mandatory liquidation system, risk warning system and Management Methods for Risk Control of Tianjin Precious Metals Exchange or other regulations to control the trading risks.

 

(7) In case party B’s risk deposit becomes insufficient, party B shall replenish the risk deposit on a timely basis. If party B fails to replenish timely, all losses arising from this shall be at party B’s account.

 

(8) Party B shall evaluate, review and assume corresponding responsibilities for the legality, authenticity, investment capability and anti-risk capability of the investors i.e. clients;

 

(9) Party B shall deploy relevant software, hardware and communication equipments as required by party A and undertake corresponding charges, and agree party B to own the right to use the above mentioned equipments;

 

(10) Party B agrees to accept qualification review by party A; accept regular and irregular inspection and investigation by party A; accept party A’s regulation and management; in case of violation of party A’s regulations and this Agreement, party B agrees to assume responsibilities as required by party A.

 

(11) Party B shall pay the trading management fee in proportion to the sum of each trading with party B’s clients.

 

(12) If party B suffers fund difference or other abnormal cases in the process of withdrawal and deposit, party B is obliged to cooperate with party A to deal with such fund difference according to Management Method of Tianjin Precious Metals Exchange for Fund Difference 

 

 

between Settlement Bank and Deposit Bank.

 

(13) Party B shall be held liable for risk control and replenish the risk deposit as required by party A if party B suffers change in the risk conditions as party A assists the judicial offices for preservation and compulsory execution.

 

(14) Party B shall properly keep the trading account and all passwords, and independently undertake all consequences caused by improper keeping.

 

(15) When party B’s membership is suspended or terminated (canceled), party B shall properly arrange for the clients, transfer the client’s data to the receiving members as required by the Exchange, and shall properly dispose of the corporate creditor’s rights and liabilities.

 

(16) When the membership of other members is suspended or terminated (canceled), and party A assigns party B as the receiving member, party B shall take over the work as required by party A.

 

Article 5 Confidentiality

 

Both parties shall follow the principle of good faith and fulfill the obligation of confidentiality depending on the agreement’s property and purposes (party B shall sign a confidential agreement separately as required by party A). One party is not allowed to divulge or disclose the contents of this Agreement and other party’s trade secrets obtained during performance of this Agreement to a third party in any ways (except that party A submits related trading data to a third party for the purpose of investigating party B and shall require such third party to keep secret), and use such information improperly.

 

Article 6 Responsibilities of default

 

1. In case of failure in paying sufficient entrance training and consultation service fee, annual management fee or other fees to party A as scheduled, party B shall bear the responsibilities for default and pay a penalty to party A at the loan interest rate of the same period issued by the People’s Bank of China.

 

2. In case of violation of party A’s rules and methods, party B shall be punished by party A as per the regulations specified in the rules and methods.

 

3. If party A cancels party B’s membership according to party A’s rules and methods, then this Agreement shall terminate and party B shall compensate for the losses caused for party A due to termination of this Agreement.

 

Article 7 Force majeure and exceptions

 

Party A shall not be held liable for the losses caused by the force majeure events including but not limited to earthquake, flood, fire, riot, strike, war, government regulation, international or domestic ban or restriction and power failure, technical failure and other unforeseeable, unavoidable and insurmountable events and trading abnormalities specified in the Exchange’s rules.

 

Party A shall not be held liable for temporary or permanent shutdown of trading system caused by occurrence of force majeure events and change of national laws, rules, regulations and policies and release of emergency measures; party B shall explain to the investors and undertake the risks.

 

Party A can neither control the interruption and connection of the telecommunication signals 

 

 

and maintain the Internet unblocked nor ensure stability of party B’s network equipment and telecommunication devices, therefore party B shall independently cover the losses caused by interruption of quotation and trading, and party A is released from any responsibilities.

 

Article 8 Dispute settlement

 

Any disputes arising from performance of this Agreement shall be settled through friendly negotiations by both parties. If such negotiations fail, such dispute can be submitted to China  International Economic and Trade Arbitration Commission, Tianjin International Economic and Financial Arbitration Center for arbitration according to currently effective arbitration rules of the Center. The arbitration award is final and is binding to both parties hereof.

 

Article 9 Modification of agreement

 

For the unaccomplished matters hereof, party A and party B can sign a supplementary agreement or modification agreement through friendly negotiations. Such supplementary agreement or modification agreement is a constitute part of this Agreement and have same legal effect.

 

Article 10 Termination of agreement

 

If party A terminates (cancels) party B’s membership as per relevant regulations, this Agreement shall terminate accordingly.

 

Article 11 Supplementary provisions

 

1. From the date when this Agreement takes effect, if there is any conflict between the articles contained in the agreements signed by party A and party B previously and this Agreement, this Agreement shall prevail.

 

2. The appendixes hereto are constituent parts of this Agreement and have legal effects equal to this Agreement.

 

3. Party A has the rights to amend the relevant trading systems, rules and methods from time to time based on the trading or market situations, and formulate new systems, rules and methods based on the trading or market situations, and party A accepts this and promises to abide by and execute the amended or newly formulated systems, rules and methods without preconditions.

 

4. Party A has the rights to review party B’s clients and their trading data, and suspend the trading with any client at any time party A thinks necessary, and party B shall have no objection.

 

5. This Agreement comes into effect from the date when both parties sign and affix seals to it. It is made in duplicate and each party hods one copy. Both copies have the same legal effect.

 

(No text below)

 

	
Party A: Tianjin Precious Metals Exchange Co., Ltd.
    	
 
    	
Party B: Tianjin Rong   Jin Hui Yin Precious Metals Management Co., Ltd.
    
	
Seal: Tianjin Rong   Jin Hui Yin Precious Metal Management Co., Ltd.
    	
 
    	
Seal: Tianjin   Precious Metals Exchange
    
	
Signature of   Authorized Representative: /s/ Tianjin Rong Jin Hui Yin Precious Metal   Management Co., Ltd.
    	
 
    	
Signature of   Authorized Representative:
    	
/s/ Wenbin Chen
    
	
 
    	
 
    
	
Date:   February 12, 2014
    	
 
    	
Date:   February 12, 2014

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]