Document:

CYBERDEFENDER
CORPORATION

    

    INDEMNIFICATION
AGREEMENT

    

    This
Indemnification Agreement (“Agreement”) is made as of January 1, 2010 by and
between CyberDefender Corporation, a
California corporation (the “Company”), and Luc Vanhal
(“Indemnitee”).

    

    WHEREAS, the Company desires
to attract and retain the services of highly qualified individuals, such as
Indemnitee, to serve as officers and directors of the Company and to indemnify
its officers and directors so as to provide them with the maximum protection
permitted by law; and

    

    WHEREAS, the Company is
required to enter into an indemnification agreement with the Indemnitee pursuant
to that certain Media and Marketing Services Agreement (the “Media Services
Agreement”), dated as of March 24, 2009, between the Company and GR Match,
LLC;

    

    NOW, THEREFORE, the Company
and Indemnitee hereby agree as follows:

    

    1. Indemnification.

    

    (a) Third Party Proceedings. The
Company shall indemnify Indemnitee if Indemnitee is or was a party to or witness
or other participant in or is threatened to be made a party to or witness or
other participant in any threatened, pending or completed action or proceeding,
whether civil, criminal, administrative or investigative (other than an action
by or in the right of the Company) by reason of the fact that Indemnitee is or
was a director, officer, employee or agent of the Company, or any subsidiary of
the Company, by reason of any action or inaction on the part of Indemnitee while
an officer or director or by reason of the fact that Indemnitee is or was
serving at the request of the Company as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys’ fees, expert fees,
other professional fees and court costs, and fees and expenses incurred in
connection with any appeals) (“Expenses”), judgments (including punitive and
exemplary damages), penalties, fines and amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be
unreasonably withheld) actually and reasonably incurred by Indemnitee in
connection with such action or proceeding if Indemnitee acted in good faith and
in a manner Indemnitee reasonably believed to be in the best interests of the
Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe Indemnitee’s conduct was unlawful. The termination
of any action or proceeding by judgment, order, settlement, conviction, or upon
a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that (i) Indemnitee did not act in good faith,
(ii) Indemnitee did not act in a manner which Indemnitee reasonably
believed to be in the best interests of the Company, or (iii) with respect
to any criminal action or proceeding, Indemnitee had reasonable cause to believe
that Indemnitee’s conduct was unlawful.

    

    (b) Proceedings By or in the Right of
the Company. The Company shall indemnify Indemnitee if Indemnitee was or
is a party to or witness or other participant in or is threatened to be made a
party to or witness or other participant in any threatened, pending or completed
action or proceeding by or in the right of the Company or any subsidiary of the
Company to procure a judgment in its favor by reason of the fact that Indemnitee
is or was a director, officer, employee or agent of the Company, or any
subsidiary of the Company, by reason of any action or inaction on the part of
Indemnitee while an officer or director or by reason of the fact that Indemnitee
is or was serving at the request of the Company as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise, against Expenses and, to the fullest extent permitted by law,
amounts paid in settlement, in each case to the extent actually and reasonably
incurred by Indemnitee in connection with the defense or settlement of such
action or proceeding if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in the best interests of the Company and
its shareholders, except that no indemnification shall be made in respect of any
claim, issue or matter as to which Indemnitee shall have been adjudged to be
liable to the Company in the performance of Indemnitee’s duty to the Company and
its shareholders unless and only to the extent that the court in which such
action or proceeding is or was pending shall determine upon application that, in
view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnity for expenses and then only to the extent that the court
shall determine.

    

    2. Expenses; Indemnification
Procedure.

    

    (a) Advancement of Expenses. The
Company shall advance all Expenses incurred by Indemnitee in connection with the
investigation, defense, settlement or appeal of any civil or criminal action or
proceeding referenced in Section 1(a) or (b) hereof (but not amounts
actually paid in settlement of any such action or proceeding). Indemnitee hereby
undertakes promptly to repay such amounts advanced only if, and to the extent
that, it shall ultimately be determined by the court (as to which all rights of
appeal therefrom have been exhausted or lapsed) that Indemnitee is not entitled
to be indemnified by the Company as authorized hereby. Indemnitee’s obligation
to repay the Company for any such amounts shall be unsecured
and no interest shall be charged thereon. The advances to be made hereunder
shall be paid by the Company to Indemnitee within five (5) days following
delivery of a written request therefor by Indemnitee to the
Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Notice/Cooperation by
Indemnitee. Indemnitee shall give the Company notice in writing as soon
as practicable of any claim made against Indemnitee for which indemnification
will or could be sought under this Agreement; provided, however, that no failure
to provide or delay in giving such notice shall be deemed to reduce or limit the
Company’s obligations under this Agreement unless (and only to the extent) such
failure or delay materially prejudices the Company. Notice to the Company shall
be directed to the Chief Executive Officer of the Company at the address shown
on the signature page of this Agreement (or such other address as the Company
shall designate in writing to Indemnitee). Notice shall be deemed received three
business days after the date postmarked if sent by domestic certified or
registered mail, properly addressed; otherwise notice shall be deemed received
when such notice shall actually be received by the Company. In addition,
Indemnitee shall give the Company such information and cooperation as it may
reasonably require and as shall be within Indemnitee’s reasonable
control.

    

    (c) Procedure. Any
indemnification provided for in Section 1 shall be paid no later than five
(5) days after receipt of the written request of Indemnitee. If a claim
under this Agreement, under any statute, or under any provision of the Company’s
Articles of Incorporation or Bylaws providing for indemnification, is not paid
in full by the Company within five (5) days after a written request for
payment thereof has first been received by the Company, Indemnitee may, but need
not, at any time thereafter bring an action against the Company to recover the
unpaid amount of the claim and, subject to Section 14 of this Agreement,
Indemnitee shall also be entitled to be paid for the Expenses of bringing such
action irrespective of the ultimate determination as to Indemnitee’s entitlement
to indemnification. It shall be a defense to any such action that Indemnitee has
not met the standards of conduct which make it permissible under applicable law
for the Company to indemnify Indemnitee for the amount claimed, but the burden
of proving such defense shall be on the Company, and Indemnitee shall be
entitled to receive interim payments of Expenses pursuant to Subsection 2(a)
unless and until such defense may be finally adjudicated by court order or
judgment from which no further right of appeal exists. It is the parties’
intention that if the Company contests Indemnitee’s right to indemnification,
the question of Indemnitee’s right to indemnification shall be for the court to
decide, and neither the failure of the Company (including its Board of
Directors, any committee or subgroup of the Board of Directors, independent
legal counsel, or its shareholders) to have made a determination that
indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct required by applicable law, nor an
actual determination by the Company (including its Board of Directors, any
committee or subgroup of the Board of Directors, independent legal counsel, or
its shareholders) that Indemnitee has not met such applicable standard of
conduct, shall create a presumption that Indemnitee has or has not met the
applicable standard of conduct.

    

    (d) Notice to Insurers. If, at
the time of the receipt of a notice of a claim pursuant to Section 2(b)
hereof, the Company has director and officer liability insurance in effect, the
Company shall give notice of such claim to the insurers under any applicable
policies in accordance with the procedures set forth in those policies. The
Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of
such claim in accordance with the terms of such policies.

    

    (e) Selection of Counsel. In the
event the Company shall be obligated under Section 2(a) hereof to pay the
expenses of any proceeding against Indemnitee, the Company, if appropriate,
shall be entitled to assume the defense of such proceeding, with counsel
approved in writing by Indemnitee, which approval shall not be unreasonably
withheld, upon the delivery to Indemnitee of written notice of its election so
to do. After delivery of such notice, written approval of such counsel by
Indemnitee and the retention of such counsel by the Company, the Company will
not be liable to Indemnitee under this Agreement for any fees of counsel
subsequently incurred by Indemnitee with respect to the same proceeding (other
than the fees of Indemnitee’s counsel in connection with transitioning the
defense of such proceeding to counsel employed by the Company), provided that
(i) Indemnitee shall have the right to employ his counsel in any such
proceeding at Indemnitee’s expense; and (ii) if (A) the employment of
counsel by Indemnitee has been previously authorized by the Company,
(B) Indemnitee shall have reasonably concluded that there may be a conflict
of interest between the Company and Indemnitee in the conduct of any such
defense or (C) the Company shall not, in fact, have employed or shall have
ceased to employ counsel in the defense of such proceeding, then the fees and
expenses of Indemnitee’s counsel shall be at the expense of the Company. Neither
the Company nor the Indemnitee will settle any matter the subject of this
Agreement without the written consent of the other, which will not be
unreasonably withheld.

    

    3. Additional Indemnification Rights;
Nonexclusivity.

    

    (a) Scope. Subject to
Section 9 of this Agreement and any other provision of this Agreement that
expressly prohibits, limits or conditions indemnification by the Company, the
Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company’s Articles of
Incorporation, the Company’s Bylaws or by statute. In the event of any change,
after the date of this Agreement, in any applicable law, statute or rule which
expands the right of a California corporation to indemnify a member of its board
of directors or an officer, such changes shall be, ipso facto, within the
purview of Indemnitee’s rights and Company’s obligations, under this Agreement.
In the event of any change in any applicable law, statute or rule which narrows
the right of a California corporation to indemnify a member of its Board of
Directors or an officer, such changes, to the extent not otherwise required by
such law, statute or rule to be applied to this Agreement shall have no effect
on this Agreement or the parties’ rights and obligations hereunder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b) Nonexclusivity. The
indemnification provided by this Agreement shall not be deemed exclusive of any
rights to which Indemnitee may be entitled under the Company’s Articles of
Incorporation, its Bylaws, any agreement, any vote of shareholders or
disinterested directors, the General Corporation Law of the State of California,
or otherwise, both as to action in Indemnitee’s official capacity and as to
action in another capacity while holding such office. The indemnification
provided under this Agreement shall continue as to Indemnitee for any action
taken or not taken while serving in an indemnified capacity even though he may
have ceased to serve in such capacity at the time of any action or other covered
proceeding.

    

    4. Partial Indemnification. If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for some or a portion of the Expenses, judgments, fines or
penalties actually or reasonably incurred by him in the investigation, defense,
appeal or settlement of any civil or criminal action or proceeding, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion of such Expenses, judgments, fines or penalties to
which Indemnitee is entitled.

    

    5. Contribution. If the
indemnification provided for in this Agreement is unavailable to Indemnitee for
any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall
contribute to the amount incurred by Indemnitee, whether for judgments, fines,
penalties, excise taxes, amounts paid or to be paid in settlement and/or for
Expenses, in connection with any claim relating to an indemnifiable event, in
such proportion as is deemed fair and reasonable in light of all circumstances
of such action by the court before which such action was brought in order to
reflect (i) the relative benefits received by the Company and Indemnitee as
a result of the event(s) and/or transaction(s) giving cause to such action;
and/or (ii) the relative fault of the Company (and its other directors,
officers, employees and agents) and Indemnitee in connection with such event(s)
and/or transaction(s). Indemnitee’s right to contribution under this
Section 5 shall be determined in accordance with, pursuant to and in the
same manner as, the provisions in Section 1 hereof relating to Indemnitee’s
right to indemnification under this Agreement.

    

    6. Mutual Acknowledgment. Both
the Company and Indemnitee acknowledge that in certain instances, Federal law or
applicable public policy may prohibit the Company from indemnifying its
directors and officers under this Agreement or otherwise. Indemnitee understands
and acknowledges that the Company may be required in the future to undertake
with the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee.

    

    7. Directors’ and Officers’ Liability
Insurance. The Company agrees to maintain director’s and officer’s
liability insurance to the extent required pursuant to Section 9 of the Media
Services Agreement.  In all policies of directors’ and officers’
liability insurance, Indemnitee shall be named as an insured in such a manner as
to provide Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company’s directors or officers if Indemnitee is a
director; or of the Company’s officers, if Indemnitee is an officer; or of the
Company’s key employees, if Indemnitee is not an officer or director but is a
key employee.

    

    8. Severability. Nothing in this
Agreement is intended to require or shall be construed as requiring the Company
to do or fail to do any act in violation of applicable law. If any term or
provision of the Agreement is determined to be invalid, illegal or unenforceable
in whole or in part for any reason, such illegal, unenforceable, or invalid
provisions or part thereof shall be stricken from this Agreement, and such
provision shall not affect the legality, enforceability, or validity of the
remainder of this Agreement. If any provision or part of this Agreement is
stricken in accordance with the provisions of this section, then this stricken
provision shall be replaced, to the extent possible, with a legal, enforceable,
and valid provision that is as similar in tenor to the stricken provision as is
legally possible.

    

    9. Exceptions. Any other
provision herein to the contrary notwithstanding, the Company shall not be
obligated pursuant to the terms of this Agreement:

    

    (a) Excluded Acts. To indemnify
Indemnitee for (i) any acts or omissions or transactions from which a
director may not be relieved of liability under the California Corporations
Code; or (ii) for breach of any duty to the Company or its shareholders as
to circumstances in which indemnity is expressly prohibited by Section 317
of the California Corporations Code; or

    

    (b) Claims Initiated by
Indemnitee. To indemnify or advance Expenses to Indemnitee with respect
to proceedings or claims initiated or brought voluntarily by Indemnitee and not
by way of defense, except with respect to proceedings or claims brought to
establish or enforce a right to indemnification under this Agreement or under
any other statute or law or otherwise as required under Section 317 of the
California Corporations Code, but such indemnification or advancement of
Expenses may be provided by the Company in specific cases if the Board of
Directors has approved the initiation or bringing of such proceeding or claim;
or

    

    (c) Lack of Good Faith. To
indemnify Indemnitee for any Expenses incurred by the Indemnitee with respect to
any proceeding instituted by Indemnitee to enforce or interpret this Agreement,
if a court of competent jurisdiction determines that each of the material
assertions made by the Indemnitee in such proceeding was not made in good faith
or was frivolous; or

    

    (d) Insured Claims. To indemnify
Indemnitee for Expenses or liabilities of any type whatsoever (including, but
not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts
paid in settlement) which have been paid directly to Indemnitee by an insurance
carrier under a policy of directors’ and officers’ liability insurance
maintained by the Company; or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e) Claims Under
Section 16(b). To indemnify Indemnitee for Expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as
amended, or any similar successor statute.

    

    10. Effectiveness of Agreement.
To the extent that the indemnification permitted under the terms of certain
provisions of this Agreement exceeds the scope of the indemnification provided
for in the California Corporations Code, such provisions shall not be effective
unless and until the Company’s Articles of Incorporation authorize such
additional rights of indemnification. In all other respects, the balance of this
Agreement shall be effective as of the date set forth on the first page and may
apply to acts or omissions of Indemnitee which occurred prior to such date if
Indemnitee was an officer, director, employee or other agent of the Company, or
was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, at the time such act or omission occurred. All of the Company’s
obligations under this Agreement will continue as long as Indemnitee is subject
to any actual or possible matter which is the subject of this Agreement,
notwithstanding Indemnitee’s termination of service as an officer or director of
the Company.

    

    11. Construction of Certain
Phrases.

    

    (a) For
purposes of this Agreement, references to the “Company” shall include, in
addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which,
if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, employees or agents, so that if Indemnitee is
or was a director, officer, employee or agent of such constituent corporation,
or is or was serving at the request of such constituent corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, Indemnitee shall stand in the same position
under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

    

    (b) For
purposes of this Agreement, references to “other enterprises” shall include
employee benefit plans; references to “fines” shall include any excise taxes
assessed on Indemnitee with respect to an employee benefit plan; and references
to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company which imposes duties on, or
involves services by, such director, officer, employee or agent with respect to
an employee benefit plan, its participants, or beneficiaries.

    

    12. Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall constitute an
original.

    

    13. Successors and Assigns. This
Agreement shall be binding upon the Company and its successors (whether direct
or indirect, voluntary or involuntary by purchase, merger or otherwise) and
assigns, and shall inure to the benefit of Indemnitee and Indemnitee’s estate,
heirs, legal representatives and assigns. Any such assumption will not release
the Company from its obligations under this Agreement.

    

    14. Attorneys’ Fees. In the event
that any action is instituted or any mediation is commenced by Indemnitee under
this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall
be entitled to be paid all costs and expenses, including reasonable attorneys’
fees, incurred by Indemnitee with respect to such action or mediation, unless as
a part of such action or mediation, the court of competent jurisdiction or
mediator determines (as to which all rights of appeal therefrom have been
exhausted or lapsed) that each of the material assertions made by Indemnitee as
a basis for such action or mediation was not made in good faith or was
frivolous. In the event of an action instituted or mediation commenced by or in
the name of the Company under this Agreement or to enforce or interpret any of
the terms of this Agreement, Indemnitee shall be entitled to be paid all costs
and expenses, including attorneys’ fees, incurred by Indemnitee in defense of
such action or mediation (including with respect to Indemnitee’s counterclaims
and cross-claims made in such action or mediation), unless as a part of such
action or mediation the court or mediator determines (as to which all rights of
appeal therefrom have been exhausted or lapsed) that each of Indemnitee’s
material defenses to such action or mediation was made in bad faith or were
frivolous.

    

    15. Notice. All notices,
requests, demands and other communications under this Agreement shall be in
writing and shall be deemed duly given (i) if delivered by hand and
receipted for by the party addressee, on the date of such receipt, or
(ii) if mailed by domestic certified or registered mail with postage
prepaid, on the third business day after the date postmarked, or (iii) if
delivered by a nationally recognized overnight courier service, such as FedEx or
DHL, on the date of delivery. Addresses for notice to either party are as shown
on the signature page of this Agreement, or as subsequently modified by written
notice.

    

    16. Consent to Jurisdiction,
Venue.

    

    A dispute
or claim arising out of or relating to this Agreement (“Dispute”) shall be
resolved in the following manner:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (a) A
Dispute may be submitted to JAMS for non-binding mediation either prior to or at
the same time that any civil action with respect to such Dispute is commenced.
Either party may commence mediation by providing to JAMS and the other party a
written request for mediation, setting forth the subject of the dispute and the
relief requested. The parties will cooperate with JAMS and with one another in
selecting a mediator from JAMS panel of neutrals, and in scheduling the
mediation proceedings. The parties covenant that they will participate in the
mediation in good faith. All offers, promises, conduct and statements, whether
oral or written, made in the course of the mediation by any of the parties,
their agents, employees, experts and attorneys, and by the mediator and any JAMS
employees, are confidential, privileged and inadmissible for any purpose,
including impeachment, in any litigation or other proceeding involving the
parties, provided that evidence that is otherwise admissible or discoverable
shall not be rendered inadmissible or non-discoverable as a result of its use in
the mediation. The provisions of this Section may be enforced by any court of
competent jurisdiction.

    

    (b) Any
civil action with respect to a Dispute may be brought only in the United States
District Court for the Central District of California (Western Division) or in
any court of the State of California sitting in the City of Los Angeles. Each
party waives, to the fullest extent permitted by law, any objection which such
party may now or later have to the laying of venue of any legal action or
proceeding arising out of or relating to this Agreement as described in this
Section, and any claim that any action or proceeding brought in any such court
has been brought in an inconvenient forum. Both parties hereby authorize and
accept service of process sufficient for personal jurisdiction in any action
against such party as contemplated by this Section by registered or certified
mail, return receipt requested, postage prepaid, to the party’s address for the
giving of notices as set forth in this Agreement. Any final judgment rendered
against either party in any action or proceeding shall be conclusive as to the
subject of such final judgment and may be enforced in other jurisdictions in any
manner provided by law.

    

    17. Amendments. Any repeal or
modification of Company’s Articles of Incorporation or Bylaws or any repeal or
modification of the relevant provisions of any applicable law will not in any
way diminish any of Indemnitee’s rights or the Company’s obligations under this
Agreement. This Agreement cannot be amended except with the written consent of
the Company and Indemnitee. No waiver of any provision of this Agreement shall
be binding on either party unless it is in writing and signed by both the
Company and Indemnitee.

    

    18. Choice of Law. This Agreement
shall be governed by and its provisions construed in accordance with the laws of
the State of California as applied to contracts between California residents
entered into and to be performed entirely within California.

    

    19. Subrogation. In the event of
payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnitee, who shall execute
all documents required and shall do all acts that may be necessary to secure
such rights and to enable the Company effectively to bring suit to enforce such
rights.

    

    20. Integration and Entire
Agreement. This Agreement (i) sets forth the entire understanding
between the parties in respect to the subject matter hereof,
(ii) supersedes all previous written or oral negotiations, commitments,
understandings, and agreements relating to the subject matter hereof and
(iii) merges all prior and contemporaneous discussion between the
parties.

    

    [SIGNATURES
FOLLOW]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Indemnification Agreement as of the date first
above written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          CyberDefender
      Corporation

                                        	 
	 
      	 	 
      	 
	
                                          By:

                                        	/s/
      Gary Guseinov	 
	 
      	
                                          Gary
      Guseinov

                                        	 
	
                                          Its:

                                        	
                                          Chief
      Executive Officer

                                        
	 
      	 	 
      	 
	
                                          Address:

                                        	 	
                                          617
      West 7th
      Street, Suite 401

                                        	 
	 
      	 	
                                          Los
      Angeles, CA 90017

                                        	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                AGREED TO AND ACCEPTED BY
    INDEMNITEE:

                                              	 
	 	 	 
	

                                                /s/
      Luc Vanhal

                                              	 
	  	 
	

                                                Luc
      Vanhal

                                              	 	 
	 
      	 
      	 
	
                                                Address:

                                              	
                                                c/o
      Guthy-Renker

                                              	 
	 
      	
                                                3340
      Ocean Park Blvd.

                                              	 
	 
      	
                                                Suite
      3000

                                              	 
	 
      	
                                                Santa
      Monica, CA 90405Unassociated Document

    ESCROW AGREEMENT FOR
DISBURSEMENT

     

    This
ESCROW AGREEMENT (the “Agreement”) is made as of October 22, 2009 by and
between Emerald Acquisition Corporation, an exempted company incorporated with
limited liability in the Cayman Islands (the “Company”), with a mailing address
of No. 48 South Qingshui Road, Laiyang City, Shandong 265200 P.R. China, Anslow
& Jaclin, LLP, 195 Route 9 South, 2nd Floor,
Manalapan, NJ 07726 (the “Escrow Agent”), Grandview Capital, Inc. (the
“Placement Agent”) and Access America Investments, LLC (the “Investor Representative”).

    

    WITNESETH:

     

    WHEREAS,
the Company is offering to certain investors (the “Investors”), on a “best
efforts” basis, investment units (“Units”), each Unit consisting of (i) Fifty
Thousand (50,000) of the Company’s ordinary shares, par value $0.001 per share
(the “Ordinary Shares”) and (ii) warrants to purchase Twenty Five Thousand
(25,000) of the Company’s Ordinary Shares, at an exercise price of $6.00 per
share (the “Warrants” and collectively with the Ordinary Shares, the
“Securities”), for aggregate gross proceeds of a minimum of $15,000,000 and up
to a maximum of $20,000,000 (the “Offering”), in reliance upon an exemption
from securities registration afforded by the provisions of Section 4(2), Section
4(6), Regulation D and/or Regulation S as promulgated by the United States
Securities and Exchange Commission  under the Securities Act of 1933,
as amended;

     

    WHEREAS, such Offering is in connection with the
combination (the “Combination”) of Emerald and Merit Times International Limited, a company incorporated under
the laws of the British Virgin Islands (“Merit Times”).  The closing of the Combination is
conditioned upon all of the conditions of the Offering being met, and the
Offering is conditioned upon the closing of the
Combination (the “Closing”). Merit Times owns 100% of the issued and outstanding
capital stock of Shandong MeKeFuBang Food Limited (“MeKeFuBang”), a
company incorporated under the laws of the People’s Republic of
China (“China” or the “PRC”). Shandong Longkang
Juice Co., Ltd. (“Longkang
Juice”), a company incorporated under the
laws of the PRC is a wholly-owned subsidiary of MeKeFuBang. Pursuant to the
Combination, Merit Times will become a wholly-owned subsidiary of
Emerald.  Therefore, Emerald, Merit Times,
MeKeFuBang, and Longkang Juice are collectively referred to herein as
“Emerald” or the “Company”;

     

    WHEREAS,
the Company proposes to establish an escrow account (the “Escrow Account”),
which shall include One Million Dollars ($1,000,000) of the Offering proceeds
(the “Escrow Amount”) to be used for the payment of fees and expenses related to
becoming a public company
and listing the Company’s Ordinary Shares on a senior
exchange; and the Escrow Agent is willing to establish the Escrow Account
on the terms and subject to the conditions hereinafter set forth;

     

    WHEREAS,
the Investors have appointed Access America Investments, LLC as such Investor’s
representative (the “Investor Representative”) to act on their collective behalf
with respect to this Agreement and all amendments thereto.

     

    NOW,
THEREFORE, in consideration of the premises and mutual covenants herein
contained, the parties hereto hereby agree as follows:

     

    1.             Appointment of Escrow
Agent.  The Company, Placement Agent and Investor
Representative hereby appoint Escrow Agent as escrow agent to act in accordance
with the terms and conditions set forth in this Agreement, and the Escrow Agent
hereby accepts such appointment and agrees to establish the Bank Account on the
terms and subject to the conditions hereinafter set forth.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.             Establishment of the Bank
Account.  The Escrow Agent shall establish a
non-interest-bearing bank account at the branch of the Bank selected by the
Escrow Agent (heretofore defined as the “Bank Account”).  The purpose
of the Bank Account is for (a) the deposit of the Escrow Funds by the Company,
and (b) the disbursement of collected funds, all as described
herein.

     

    3.             Delivery of the Escrow
Amount.  The Company hereby directs the Escrow Agent to
allocate the Escrow Amount separately from the proceeds of the Offering at the
closing, to be held and disbursed by the Escrow Agent as provided in this
Agreement.  The Escrow Amount shall be held by the Escrow Agent in the
Bank Account as follows:

     

    Bank
Address:                    Wachovia
Bank NA

    800 West Main Street

    Freehold, New Jersey
07726

    ABA
No.:  031201467

    Account:
Anslow & Jaclin LLP Attorney Trust Account

    Account
No.:  2000013292968

    Attn:
Richard I. Anslow, Esq.

    Reference:
Emerald Acquisition Corporation Disbursement Escrow

     

    4.             Disbursements from the Bank
Account. The
Escrow Agent shall release the Escrow Amount in incremental amounts pursuant to
written instructions provided by the Company and the Placement Agent in
accordance with the Disbursement Schedule set forth in Schedule A hereto. If
the entire Escrow Amount is not disbursed within two (2) years from the date
hereof, the balance of the Escrow Amount shall be returned to the
Company

     

    5.             Duration. This
Agreement shall terminate upon the disbursement of 100% of the Escrow Amount in
accordance with Section
4.

     

    6.             Interpleader.  Should
any controversy arise among the parties hereto with respect to this Agreement or
with respect to the right to receive the Escrow Amount, the Escrow Agent shall
have the right to consult counsel and/or to institute an appropriate
interpleader action to determine the rights of the parties.  The
Escrow Agent is also hereby authorized to institute an appropriate interpleader
action upon receipt of a written letter of direction executed by the parties so
directing Escrow Agent.  If the Escrow Agent is directed to institute
an appropriate interpleader action, it shall institute such action not prior to
thirty (30) days after receipt of such letter of direction and not later than
sixty (60) days after such date.  Any interpleader action instituted
in accordance with this Section 6 shall be
filed in any court of competent jurisdiction in New York, New York, and the
Escrow Amount in dispute shall be deposited with the court and in such event
Escrow Agent shall be relieved of and discharged from any and all obligations
and liabilities under and pursuant to this Agreement with respect to the Escrow
Amount.

     

    7.             Exculpation and
Indemnification of Escrow Agent.

     

    7.1           The
Escrow Agent is not a party to, and is not bound by or charged with notice of
any agreement out of which this escrow may arise. The Escrow Agent acts under
this Agreement as a depositary only and is not responsible or liable in any
manner whatsoever for the sufficiency, correctness, genuineness or validity of
the subject matter of the escrow, or any part thereof, or for the form or
execution of any notice given by any other party hereunder, or for the identity
or authority of any person executing any such notice. The Escrow Agent will have
no duties or responsibilities other than those expressly set forth in this
Agreement.  The Escrow Agent will be under no liability to anyone by
reason of any failure on the part of any party hereto (other than the Escrow
Agent) or any maker, endorser or other signatory of any document to perform such
person’s or entity’s obligations hereunder or under any such
document.  Except for this Agreement and instructions to the Escrow
Agent pursuant to the terms of this Agreement, the Escrow Agent will not be
obligated to recognize any agreement between or among any or all of the persons
or entities referred to herein, notwithstanding its knowledge
thereof.

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    7.2           The
Escrow Agent will not be liable for any action taken or omitted by it, or any
action suffered by it to be taken or omitted, in good faith and in the exercise
of its own best judgment, and may rely conclusively on, and will be protected in
acting upon, any order, notice, demand, certificate, or opinion or advice of
counsel (including counsel chosen by the Escrow Agent), statement, instrument,
report or other paper or document (not only as to its due execution and the
validity and effectiveness of its provisions, but also as to the truth and
acceptability of any information therein contained) which is reasonably believed
by Escrow Agent to be genuine and to be signed or presented by the proper person
or persons. The duties and responsibilities of the Escrow Agent hereunder shall
be determined solely by the express provisions of this Agreement and no other or
further duties or responsibilities shall be implied, including, but not limited
to, any obligation under or imposed by any laws of the State of New York upon
fiduciaries.

     

    7.3           The
Escrow Agent will be indemnified and held harmless, jointly and severally, by
the Company from and against any expenses, including reasonable attorneys’ fees
and disbursements, damages or losses suffered by the Escrow Agent in connection
with any claim or demand, which, in any way, directly or indirectly, arises out
of or relates to this Agreement or the services of Escrow Agent hereunder;
except, that if the Escrow Agent is guilty of willful misconduct, fraud or gross
negligence under this Agreement, then the Escrow Agent will bear all losses,
damages and expenses arising as a result of such willful misconduct, fraud or
gross negligence. Promptly after the receipt by the Escrow Agent of notice of
any such demand or claim or the commencement of any action, suit or proceeding
relating to such demand or claim, the Escrow Agent will notify the other parties
hereto in writing.  For the purposes hereof, the terms “expense” and
“loss” will include all amounts paid or payable to satisfy any such claim or
demand, or in settlement of any such claim, demand, action, suit or proceeding
settled with the express written consent of the parties hereto, and all costs
and expenses, including, but not limited to, reasonable attorneys’ fees and
disbursements, paid or incurred in investigating or defending against any such
claim, demand, action, suit or proceeding.  The provisions of this
Section 7 shall
survive the termination of this Agreement.

     

    7.4           The
Escrow Agent has acted as legal counsel for the Company and may continue to act
as legal counsel for the Company from time to time, notwithstanding its duties
as the Escrow Agent hereunder. Investor Representative and the Investors consent
to the Escrow Agent in such capacity as legal counsel for the Company and waive
any claim that such representation represents a conflict of interest on the part
of the Escrow Agent. Investors Representative and the Investors understand that
the Escrow Agent is relying explicitly on the foregoing provision in entering
into this Escrow Agreement.

     

    8.             Fees and Expenses.
The Company agrees to pay the Escrow Agent’s costs and expenses including
reasonable attorney’s fees in the event of any dispute or litigation threatened
or commenced which requires the Escrow Agent in its opinion to refer such matter
to its attorneys.  Escrow Agent will incur no liability for any delay
reasonably required to obtain such advice of counsel.

     

    9.             Resignation of Escrow
Agent.  At any time, upon five (5) days’ written notice to the
Company, the Escrow Agent may resign and be discharged from its duties as escrow
agent hereunder.  As soon as practicable after its resignation, the
Escrow Agent will promptly turn over to a successor escrow agent appointed by
the Company the Escrow Amount held hereunder upon presentation of a document
appointing the new escrow agent and evidencing its acceptance
thereof.  If, by the end of the 5-day period following the giving of
notice of resignation by the Escrow Agent, the Company shall have failed to
appoint a successor escrow agent, the Escrow Agent may interplead the Escrow
Amount into the registry of any court having jurisdiction.

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

     

    10.           Records.  The
Escrow Agent shall maintain accurate records of all transactions
hereunder.  Promptly after the termination of this Agreement or as may
reasonably be requested by the parties hereto from time to time before such
termination, the Escrow Agent shall provide the parties hereto, as the case may
be, with a complete copy of such records, certified by the Escrow Agent to be a
complete and accurate account of all such transactions.  The
authorized representatives of each of the parties hereto shall have access to
such books and records at all reasonable times during normal business hours upon
reasonable notice to the Escrow Agent.

     

    11.           Notice.  All
notices, communications and instructions required or desired to be given under
this Agreement must be in writing and shall be deemed to be duly given if sent
by registered or certified mail, return receipt requested, or overnight courier
to the following addresses:

     

      If
to Escrow Agent:

    

    Anslow + Jaclin, LLP

    195 Route 9 South, 2nd
Floor

    Manalapan, New Jersey
07726

    Attention: Richard I. Anslow,
Esq.

    

      If to the
Company:

    

    Emerald Acquisition
Corporation

    No. 48 South Qingshui
Road

    Laiyang City, Shandong
265200

    P.R. China

    Attention: Zhide Jiang, Chief
Executive Officer

    

      If
to the Investor Representative:

    

    Access America Investments,
LLC

    11200 Westheimer Rd., Suite
508

    Houston, Texas 77042

    Attention: Christopher Efird,
President

    

      If to the Placement
Agent:

    

    Grandview Capital, Inc.

    8201 Peters Road, Suite
1000

    Plantation,
Florida  33324

    

    or to
such other address and to the attention of such other person as any of the above
may have furnished to the other parties in writing and delivered in accordance
with the provisions set forth above.

     

    12.           Execution in
Counterparts.  This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Facsimile execution and delivery of this
Agreement is legal, valid and binding for all purposes.

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

     

    13.           Assignment and
Modification.  This Agreement and the rights and obligations
hereunder of any of the parties hereto may not be assigned without the prior
written consent of the other parties hereto. Subject to the foregoing, this
Agreement will be binding upon and inure to the benefit of each of the parties
hereto and their respective successors and permitted assigns. No other person
will acquire or have any rights under, or by virtue of, this
Agreement.  No portion of the Escrow Amount shall be subject to
interference or control by any creditor of any party hereto, or be subject to
being taken or reached by any legal or equitable process in satisfaction of any
debt or other liability of any such party hereto prior to the disbursement
thereof to such party hereto in accordance with the provisions of this
Agreement. This Agreement may be changed or modified only in writing signed by
all of the parties hereto. No waiver of any right
or remedy hereunder shall be valid unless the same shall be in writing and
signed by the party giving such waiver.  No waiver by any party with
respect to any condition, default or breach of covenant hereunder shall be
deemed to extend to any prior or subsequent condition, default or breach of
covenant hereunder or affect in any way any rights arising by virtue of any
prior or subsequent such occurrence.

     

    14.           Applicable Law. This
Agreement shall be governed by and construed with the laws of the State of
Delaware applicable to contracts made and to be performed
therein.  Any litigation concerning the subject matter of this
Agreement shall be exclusively prosecuted in the state or federal courts located
in New York, New York, and all parties consent to the exclusive jurisdiction and
venue of those courts.

     

    15.           Headings. The
headings contained in this Agreement are for convenience of reference only and
shall not affect the construction of this Agreement.

     

    16.           Attorneys’ Fees. If
any action at law or in equity, including an action for declaratory relief, is
brought to enforce or interpret the provisions of this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys’ fees from the other
party (unless such other party is the Escrow Agent), which fees may be set by
the court in the trial of such action or may be enforced in a separate action
brought for that purpose, and which fees shall be in addition to any other
relief that may be awarded.

     

    [Signatures
Page Follows]

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

    

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

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        ANSLOW & JACLIN, LLP

                                      
	 
      	 
      	 
	
                                        By:

                                      	      
                                        /s/
      Richard I. Anslow

                                      	 
	 
      	
                                        Name:
      Richard I. Anslow

                                      	 
	 
      	
                                        Title:
      Managing Partner

                                      	 
	 
      	 
      	 
	
                                        EMERALD
      ACQUISITION CORPORATION

                                      
	 
      	 
      	 
	
                                        By:

                                      	/s/
      Zhide Jiang	 
	 
      	
                                        Name:
      Zhide Jiang

                                      	 
	 
      	
                                        Title:
      President

                                      	 
	 
      	 
      	 
	
                                        ACCESS
      AMERICA INVESTMENTS, LLC

                                      
	 
      	 
      	 
	
                                        By:

                                      	/s/
      Christopher Efird	 
	 
      	
                                        Name:
      Christopher Efird

                                      	 
	 
      	
                                        Title:
      President

                                      	 
	 
      	 
      	 
	
                                        GRANDVIEW
      CAPITAL, INC.

                                      
	 
      	 
      	 
	
                                        By:

                                      	/s/
      Peter Goldstein	 
	 
      	
                                        Name:
      Peter Goldstein

                                      	 
	 
      	
                                        Title: Chairman

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

     

    SCHEDULE
A:  Form of Disbursement Schedule

     

    Emerald
Acquisition Corporation

    No.
48 South Qingshui Road

    Laiyang
City, Shandong 265200

    People’s
Republic of China

    

    _________,
2010

    

    Anslow
& Jaclin, LLP

    195 Route
9 South, Suite 204

    Manalapan,
NJ 07726

    Attention:
Kristina L. Trauger

    

    Re:           Emerald
Acquisition Corporation

    

    Dear
Sir/Madam:

    

    These instructions are being delivered
to you pursuant to Section 4 of the Escrow Agreement for Disbursement, dated as
of October 22, 2009 (the “Escrow Agreement”), by and among Emerald Acquisition
Corporation (the “Company”), Anslow & Jaclin, LLP (the “Escrow Agent”),
Grandview Capital, Inc. (the “Placement Agent”) and Access America Investments,
LLC (the “Investor Representative”), pursuant to which a total of $1,000,000
(the “Escrow Proceeds”) was deposited in the escrow account set up by the Escrow
Agent to be distributed in connection with certain Company costs associated with
going public.  We, the undersigned representatives, acknowledge that
the Escrow Proceeds have been received in the escrow account and are eligible
for distribution on this date.

    

    The Company and the Placement Agent are
satisfied that all requirements to effect a distribution of the Escrow Proceeds
have been met and desire to disburse certain of the Escrow
Proceeds.  You are hereby directed to disburse a total of ____________
as set forth below with the wire transfer instructions attached
thereto.

    

    [Signature
Page Follows]

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
undersigned hereto have caused this written instruction to be executed by their
respective officers, hereunto duly authorized, as of the date first-above
written.

     

    
      
        
          
            
              
                	
                        Emerald Acquisition Corporation

                      
	 
      	 
      
	
                        By:

                      	 
      
	 
      	
                        Name:
      Zhide Jiang

                      
	 
      	
                        Title:   Chief
      Executive Officer

                      
	 
	
                        Grandview
      capital, inc.

                      
	 
      	 
      
	
                        By:

                      	 
      
	 
      	
                        Name:
      Peter Goldstein

                        Title:   Chairman
      & Registered
Principal

                      

              

            

          

        

      

    

     

    
      
         

      

      
        -2-

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