Document:

Exhibit 10.1 

 

SUBSCRIPTION AGREEMENT

 

Ordinary Stock

of

ZK International Group Co., Ltd.

 

This subscription (this “Subscription”)
is dated  , 2017, by and between the investor identified on the signature page hereto (the “Investor”) and ZK
International Group Co., Ltd., a British Virgin Islands company (the “Company”), whereby the parties agree as follows:

 

1.       Subscription

 

Investor agrees to buy and the
Company agrees to sell and issue to Investor such number of shares (the “Shares”) of the Company’s
ordinary shares, no par value per share, as set forth on the signature page hereto, for an aggregate purchase price (the
“Purchase Price”) equal to the product of (x) the aggregate number of Shares the Investor has agreed to
purchase and (y) the purchase price per share (the “Purchase Price”) as set forth on the signature page
hereto. The Purchase Price is set forth on the signature page hereto.

 

The Shares are being offered pursuant to
a registration statement on Form F-1, File No. 333-218198 (the “Registration Statement”). The Registration Statement
will have been declared effective by the Securities and Exchange Commission (the “Commission”) prior to issuance
of any Shares and acceptance of Investor’s subscription. The offering prospectus (the “Prospectus”) which
forms a part of the Registration Statement, however, is subject to change. A final prospectus (the “Prospectus”) and/or
supplement to the Prospectus will be delivered to the Investor as required by law.

 

The Shares are being offered by Boustead
Securities, LLC (the “Underwriter”) as underwriter on a “best efforts, minimum/maximum” basis. The
completion of the purchase and sale of the Shares (the “Closing”) shall take place at a place and time (the
“Closing Date”) to be specified by the Company and Underwriters in accordance with Rule 15c6-1 promulgated under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Upon satisfaction or waiver of all the
conditions to closing set forth in the Underwriting Agreement and Registration Statement, at the Closing, (i) the Investor shall
pay the Purchase Price by check or by wire transfer of immediately available funds to the Company’s escrow account per wire
instructions as provided on the signature line below, and (ii) the Company shall cause the Shares to be delivered to the Investor
with the delivery of the Shares to be made through the facilities of The Depository Trust Company’s DWAC system in accordance
with the instructions set forth on the signature page attached hereto under the heading “DWAC Instructions” (or, if
requested by the Investor on the signature page hereto, through the issuance of an electronic certificate evidencing the Shares
being held by the Transfer Agent for the benefit of the Investor in Direct Registration Statement format “DRS”).

 

The Underwriters and any participating
broker dealers (the “Members”) shall confirm, via the selected dealer agreement or master selected dealer agreement
that it will comply with Exchange Act Rule 15c2-4. As per Exchange Act Rule 15c2-4 and FINRA Notice to Members Rule 84-7 (the “Rule”),
all checks that are accompanied by a subscription agreement will be promptly sent along with the subscription agreements to the
escrow account by noon the next business day. With regards to monies being wired from an investor’s bank account, the Members
shall request the investors send their wires by the next business day, however, the Company cannot insure the investors will forward
their respective monies as per the Rule. With regards to monies being sent from an investor’s account held at the participating
broker, the funds will be “promptly transmitted” to the escrow agent following the receipt of a completed subscription
document and completed wire instructions by the investor to send funds to the escrow account. Absent unusual circumstances, funds
in customer accounts will be transmitted by noon of the next business day. In the event that funds are sent in and the offering
does not close for any reason prior to the Termination Date set forth in the final Registration Statement, all funds will be returned
to investors promptly in accordance with the escrow agreement terms and applicable law.

 

2.       Miscellaneous

 

This Subscription Agreement may be executed
in any number of counterparts, all of which taken together shall constitute one and the same instrument and shall become effective
when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties
need not sign the same counterpart. Execution may be made by delivery by facsimile or via electronic format.

 

All communications hereunder, except as
may be otherwise specifically provided herein, shall be in writing and shall be mailed, hand delivered, sent by a recognized overnight
courier service such as FedEx, or sent via facsimile and confirmed by letter, to the party to whom it is addressed at the following
addresses or such other address as such party may advise the other in writing:

 

To the Company: as set forth on the signature page
hereto.

 

To the Investor: as set forth on the signature page
hereto.

 

All notices hereunder shall be effective upon receipt
by the party to which it is addressed.

 

If the foregoing correctly sets forth the
parties’ agreement, please confirm this by signing and returning to the Company the duplicate copy of this Subscription Agreement.

 

    	 	1	 

     

    

 

3.       FINRA
Rules 5130 and 5131

 

This rule states that "restricted persons" are prohibited
from participating in Syndicate or new issue offerings. Please review the following definition of a "restricted person"
on Schedule A prior to signing this form acknowledging you do not fall into '"restricted person" status.

 

The undersigned hereby represents and warrants as of the date
set forth below that:

		i.	The undersigned is the holder of the account identified below or is authorized to represent the beneficial holders of the account;

		ii.	Neither the undersigned nor any beneficial holder of the account is a "restricted person" as that term is described
in FINRA Rule 5130 (described in Schedule A); and

		iii.	The undersigned understands FINRA. Rule 5130 and the account is eligible to purchase new issues in compliance with such rule.

 

    	 	2	 

     

    

 

Please email back the completed Subscription
Agreement to angela@boustead1828.com or fax to +1(949) 266-5789

 

[Signature Page to Investor Subscription
Agreement for ZK International Group Co., Ltd.]

 

If the foregoing correctly sets forth the parties
agreement, please confirm this by signing and returning to us the duplicate copy of this Subscription Agreement.

 

	 	 	ZK International Group Co., Ltd. 
	Number of Shares:________________________	 	By:		 
	 	 	 	 
	Purchase Price per Share: $5.00 per share__________	 	Name:	 	 
	 	 	 	 
	Aggregate Purchase Price: $____________________	 	Title:	 	 
	 	 	 	 
	 	 	Address Notice:
	INVESTOR Name:__________________________	 	ZK International Group Co., Ltd.
    No. 678 Dingxiang Road, Binhai Industrial Park
	 	 	Economic & Technology Development Zone
	 	 	Wenzhou, Zhejiang Province, People’s Republic of China 325025
	 	 	 	 

 

	Signature:	 	 	Address:	 
	 	 	 	 	 
	Signor Name:	 	 	 	 
	 	 	 	 	 
	Title:	 	 	Phone: 	 
	 	 	 	 	 
	 	 	 	SSN or EIN: 	 

 

 ̈
Check Method of Payment: Check enclosed______ or

 

 ̈
Please wire $____________________from my account held at:________________________

 

Account Title:_______________________________; Account Number:_____________________

 

To the following instructions:

 

Signature Bank; 950 Third Avenue, 9th Floor New York,
New York 10022

ABA/Routing # 026013576

Swift #: SIGNUS33

Account #:

Account Title: Signature Bank as Escrow Agent for
ZK International Group Co., Ltd.

Telephone No. +1 (646) 822 1940

Fax No. +1 (646) 758 8372

 

	By:	 	 	Date:_______________ , 2017
	 	 	 	 
	Name:	 	 	 
	 	 	 	 
	Title:	 	 	 

 

Select method of delivery of Shares: DRS or DWAC

 

DWAC DELIVERY DWAC Instructions:

 

	 	1.	 
	 	 	Name of DTC Participant (broker dealer at which the account or accounts to be credited with the Shares are maintained)
	 	2.	 
	 	 	DTC Participant Number
	 	3.	 
	 	 	Name of Account at DTC Participant being credited with the Shares
	 	4.	 
	 	 	Account Number of DTC Participant being credited with the Shares

 

Or DRS Electronic Book Entry Delivery Instructions:

 

Name in which Shares should be issued:_______________________________________

 

	Address:	 	 	Telephone No.:	 

 

Please email back the completed Subscription
Agreement to angela@boustead1828.com or fax to +1(949) 266-5789

 

    	 	3	 

     

    

 

SCHEDULE
A

 

		a)	FINRA Member Firms or other Broker/Dealers

 

		b)	Broker-Dealer Personnel

 

 

		•	Any officer, director, General partner, associated person or employee of a member firm or any other Broker/dealer.

 

		•	Any agent of a member firm or any other Broker/dealer that is engaged in the investment banking or securities business

 

		•	Any immediate family member of a person specified above. Immediate family members include a person's parents, mother-in-law
or father-in-law, spouse, brother or sister, brother-in-law or sister-in-law, son-in-law or daughter-in law, and children.

 

		i.	Person that materially supports or receives material support from the immediate family member.

 

		ii.	Person employed by or associated with the member, or an affiliate of the member, selling the new issue to the immediate family
member.

  

		iii.	Person that has an ability to control the allocation of the new issue.

 

		c)	Finders and Fiduciaries. With respect to the security being offered, a finder or any person acting in a fiduciary capacity
to the managing underwriter, including, but not limited to, attorneys, accountants, and financial consultants; and any immediate
family members (or person(s) receiving material support or receives material support from the family member) of a person identified
as a Finder or Fiduciary.

 

		d)	Portfolio Managers

 

		a.	Any person who has authority to buy or sell securities for a bank, savings and loan institution, insurance company, investment
company, investment advisor, or collective investment account.

 

		b.	Any immediate family member of a person specified under portfolio Managers that materially supports, or receives material support
from such person.

 

		e)	Persons Owning a Broker/Dealer

 

		a.	Any person listed, or required to be listed, in Schedule
                                         A of a Form BD, except persons identified by ownership of less than 10%.

 

		b.	Any person listed, or required to be listed, in Schedule
                                         B of a Form BD, except persons identified by ownership of less than 10%.

  

		c.	Any person listed, or required to be listed, in Schedule
                                         C of a Form BD that meets the criteria of (e)(bullet point 1) or (e) (bullet point
                                         2) above.

 

		d.	Any person that directly or indirectly owns 10% or more
                                         of a public reporting company listed, or required to be listed, in Schedule B of a Form
                                         BD.

  

		e.	Any person that directly or indirectly owns 25% or more
                                         of a public reporting company listed, or required to be listed, in Schedule B of a Form
                                         BD.

 

		f.	Any immediate family member of a person specified in (5) (bullet points 1-5) unless the person owning the Broker/dealer:

  

		i.	Does not materially support, or receive material support from the immediate family member.

 

		ii.	Is not an owner of the member, or an affiliate of the member, selling the new issue to the immediate family member.

  

		iii.	Has no ability to control the allocation of the new issue.

 

    	 	4Exhibit 10.18

 

ESCROW DEPOSIT AGREEMENT

 

This
ESCROW DEPOSIT AGREEMENT (this “Agreement”) dated as of this 8th
day of June 2017, by and among ZK INTERNATIONAL GROUP CO., LTD., a British
Virgin Islands company (the “Company”), having an address at No. 678 Dingxiang Road, Binhai Industrial Park,
Wenzhou, Zheijiang Province, People’s Republic of China 325025 and BOUSTEAD SECURITIES, LLC (the “Underwriter”),
having an address at 6 Venture, Suite 325, Irvine, CA 92618, and SIGNATURE BANK (the “Escrow Agent”),
a New York State chartered bank, having an office at 950 Third Ave, 9th Floor, New York, NY 10022. All capitalized terms not herein
defined shall have the meaning ascribed to them in that certain prospectus to be filed with the United States Securities and Exchange
Commission (the “SEC”), on or about May 22,
2017, under File Number 333-218198 including all attachments, schedules and exhibits
thereto (the “Prospectus”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant
to the terms of the Prospectus the Company desires to sell (the “Offering”) a minimum of $5,000,000.00 (the
“Minimum Amount”) and a maximum of $7,500,000.00 (the “Maximum Amount”) of its ordinary shares
(the “Shares”). The Shares are being offered at a price of $5.00 per Share. The minimum investment per subscriber
is $500.00 (which minimum investment may be waived by Company); and

 

WHEREAS, unless
the Minimum Amount is sold by September 30, 2017 (the “Final Termination Date”), the Offering shall terminate
and all funds shall be returned to the subscribers in the Offering, and if the Minimum Amount is met, the Offering may continue
until the Final Termination Date; and

 

WHEREAS, the
Company and Underwriter desire to establish an escrow account with the Escrow Agent into which the Company and Underwriter shall
instruct investors introduced to the Company by Underwriter (the “Investors”) to deposit checks and other instruments
for the payment of money made payable to the order of “Signature Bank as Escrow Agent for ZK International Group Co., Ltd.,”
and Escrow Agent is willing to accept said checks and other instruments for the payment of money in accordance with the terms hereinafter
set forth; and

 

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

 

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

 

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

 

NOW, THEREFORE,
IT IS AGREED as follows:

 

1.       Delivery
of Escrow Funds.

 

(a)        Underwriter
and the Company shall instruct Investors to deliver to Escrow Agent checks made payable to the order of “Signature Bank,
as Escrow Agent for ZK International Group Co., Ltd.,” or wire transfer to Signature Bank, 950 Third Ave, 9th Floor, New
York, NY 10022, ABA No. 026013576, Attention: John Gonzalez, Senior Vice President, for credit to Signature Bank, as Escrow Agent
for ZK International Group Co., Ltd., Account No. 1502983322, in each case, with the name and address of the individual or entity
making payment. In the event any Investor’s address is not provided to Escrow Agent by the Investor, then Underwriter and/or
the Company agree to promptly provide Escrow Agent with such information in writing. The checks or wire transfers shall be deposited
into a non interest-bearing account at Signature Bank entitled “ZK International Group Co., Ltd., Signature Bank, as Escrow
Agent” (the “Escrow Account”).

 

     

     

    

 

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

 

(c)       On
or before the date of the initial deposit in the Escrow Account, the Underwriter shall notify the Escrow Agent in writing of the
Effective Date of the Registration Statement (the “Effective Date”), and the Escrow Agent shall not be required
to accept any amounts for credit to the Escrow Account prior to its receipt of such notification.

 

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

 

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

 

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

 

(b)       Reserved.

 

(c)        Provided
that the Escrow Agent does not receive the Termination Notice in accordance with Section 2(a) and the Minimum Amount deposited
into the Escrow Account on or prior to the Final Termination Date, the Escrow Agent shall, upon receipt of written instructions,
in the form of Exhibit A, attached hereto and made a part hereof, or in a form and substance satisfactory to the Escrow
Agent, received from the Company and Underwriter, pay the Escrow Funds in accordance with such written instructions, such payment
or payments to be made by wire transfer within one (1) business day of receipt of such written instructions. Such instructions
must be received by the Escrow Agent no later than 3:00 PM Eastern Time on a Banking Day for the Escrow Agent to process such instructions
that Banking Day. In no event will the escrow amount be released to the Company until such amount is received by the Escrow Agent
in collected funds. For purposes of this Agreement, the term “collected funds” shall mean all funds received by the
Escrow Agent which have cleared normal banking channels and are in the form of cash.

 

(d)       If
by 3:00 P.M. Eastern time on the Final Termination Date the Escrow Agent has not received written instructions from the Company
and Underwriter regarding the disbursement of the Escrow Funds or the total amount of the Escrow Funds is less than the Minimum
Amount, then the Escrow Agent shall promptly return the Escrow Funds to the Investors without interest or offset within five (5)
business days. The Escrow Funds returned to each Investor shall be free and clear of any and all claims of the Escrow Agent.

 

     

     

    

 

(e)       The
Escrow Agent shall not be required to pay any uncollected funds or any funds that are not available for withdrawal. Should any
party to this Agreement be a non-US entity, the Escrow Agent may require up to an additional five (5) Business Days to open the
Escrow Account.

 

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

 

(g) The Escrow Period
shall begin with the commencement of the Offering and shall terminate upon the earliest to occur of the following dates:

 

A. the date mutually
acceptable to the Company and Underwriter after which the Minimum Amount is sold;

 

B. Final Termination
Date;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

     

     

    

 

7.       Termination.
The Company and Underwriter may terminate the appointment of the Escrow Agent hereunder upon written notice specifying the date
upon which such termination shall take effect, which date shall be at least 30 days from the date of such notice. In the event
of such termination, the Company and Underwriter shall, within 30 days of such notice, appoint a successor escrow agent and the
Escrow Agent shall, upon receipt of written instructions signed by the Company and Underwriter, turn over to such successor escrow
agent all of the Escrow Funds; provided, however, that if the Company and Underwriter fail to appoint a successor
escrow agent within such 30-day period, such termination notice shall be null and void and the Escrow Agent shall continue to be
bound by all of the provisions hereof. Upon receipt of the Escrow Funds, the successor escrow agent shall become the escrow agent
hereunder and shall be bound by all of the provisions hereof and Escrow Agent shall be relieved of all further obligations and
released from all liability thereafter arising with respect to the Escrow Funds and under this Agreement.

 

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

 

9.       Compensation.
Escrow Agent shall be entitled, for the duties to be performed by it hereunder, to a fee of $4,000, which fee shall be paid by
the Company upon the signing of this Agreement. In addition, the Company shall be obligated to reimburse Escrow Agent for all fees,
costs and expenses incurred or that become due in connection with this Agreement or the Escrow Account. Neither the modification,
cancellation, termination or rescission of this Agreement nor the resignation or termination of the Escrow Agent shall affect the
right of Escrow Agent to retain the amount of any fee which has been paid, or to be reimbursed or paid any amount which has been
incurred or becomes due, prior to the effective date of any such modification, cancellation, termination, resignation or rescission.
To the extent the Escrow Agent has incurred any such expenses, or any such fee becomes due, prior to any closing, the Escrow Agent
shall advise the Company and the Company shall direct all such amounts to be paid directly at any such closing. The Escrow Agent
shall be entitled to a fee of $1,000 in the event the Agreement is amended for any reason in accordance with Section 11(d).

 

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

 

If to Underwriter:

 

Boustead Securities,
LLC

6 Venture,
Suite 325

Irvine, CA
92618

Attention:
Keith Moore, CEO

Fax: +1 815
301 8099

 

With copy to:

 

Hunter Taubman
Fischer & Li LLC

1450 Broadway,
26th Floor

New York,
NY 10018

Attention:
Louis Taubman, Esq.

Joan Wu,
Esq.

Fax: (212)
202-6380

 

     

     

    

 

If to the Company:

 

ZK International
Group Co., Ltd.

No. 678 Dingxiang Road, Binhai
Industrial Park

Wenzhou, Zheijiang Province

People’s Republic of China
325025

Attention:
Mr. Jiancong Huang, Chief Executive Officer

 

With copy to: 

 

Ortoli Rosenstadt
LLP

501 Madison
Avenue, 14th Floor

New York,
NY 10022

Attention:
William S. Rosenstadt, Esq.

Mr. Mengyi
“Jason” Ye, Esq.

Fax: (212)
826-9307

 

If to Escrow Agent:

 

Signature Bank

950 Third Ave, 9th Floor

New York, NY 10022

Attention: John Gonzalez,
Senior Vice President

Fax: +1 646 822 1520

 

11.       General.

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

12.       Regulatory
Compliance

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

 

     

     

    

 

 

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

 

	ZK INTERNATIONAL GROUP CO., LTD.	 	BOUSTEAD SECURITIES, LLC	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By: 	/s/ Jiancong Huang	 	By: 	/s/ Keith Moore	 
	 	Name: 	Mr. Jiancong Huang	 	Name: 	Keith Moore	 
	 	Title: 	CEO	 	Title: 	CEO	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	SIGNATURE BANK	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By: 	/s/ John Gonzalez	 	 	 	 
	 	Name:	John Gonzalez	 	 	 	 
	 	Title:	Senior Vice President	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By: 	/s/ Stephen Fay	 	 	 	 
	 	Name: 	Stephen Fay	 	 	 	 
	 	Title: 	Senior Client Associate Officer	 	 	 	 
	 	 	 	 	 	 	 

 

 

 

     

     

    

 

 

Schedule I

 

OFFERING DOCUMENTS

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

Schedule II

 

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

 

 

 

ZK International Group Co., Ltd.

 

Name: Jiancong Huang

 

 

True Signature: /s/ Jiancong
Huang_________

 

Date: __________________________________

 

 

 

Boustead Securities, LLC

 

Name: Keith Moore

 

 

True Signature: /s/ Keith Moore____________

 

Date: __________________________________

 

 

Name: Daniel McClory

 

 

True Signature: _______________________

 

Date: __________________________________

 

 

 

 

     

     

    

 

Exhibit A

 

FORM OF ESCROW RELEASE NOTICE

 

Date:

 

950 Third Ave, 9th Floor

New York, NY 10022

Attention: [name & title
of Group Director]

 

Dear [name of Group Director]:

 

In accordance with the terms of Section
2(c) of an Escrow Deposit Agreement dated as of __________, 2017 (the "Escrow Agreement"), by and among ZK INTERNATIONAL
GROUP CO., LTD. (the “Company”), BOUSTEAD SECURITIES, LLC (the “Underwriter”),
and SIGNATURE BANK (the “Escrow Agent”), the Company and Underwriter hereby notify the Escrow Agent that
the closing will be held on ___________ for gross proceeds of $_________.

 

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

 

	________________________:	$
	 	 
	________________________:	$
	 	 
	________________________:	$

 

Very truly yours,

 

ZK INTERNATIONAL GROUP CO., LTD. 

 

By:_____________

Name:__________

Title:____________

 

BOUSTEAD SECURITIES, LLC

 

By:_____________

Name:___________

Title:____________

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