Document:

Exhibit 4.44

 

 

EQUITY TRANSFER AGREEMENT

 

 

Regarding

 

Shanghai De Yin De Run Industry Development Co., Ltd. (the Proposed Name)

 

among

 

Shanghai De Yin Investment Holding Co., Ltd

 

and

 

Chen Dejun

 

and

 

Chen Xiaoying

 

and

 

Alibaba (China) Technology Co., Ltd.

 

Date: March 26, 2019

 

 

TABLE OF CONTENTS

 

	
RECITALS
    	
 
    	
1
    
	
ARTICLE I
    	
DEFINITIONS
    	
 
    	
1
    
	
ARTICLE II
    	
EQUITY TRANSFER
    	
 
    	
2
    
	
 
    	
SECTION 2.01
    	
Equity Transfer
    	
 
    	
2
    
	
 
    	
SECTION 2.02
    	
Transfer Price
    	
 
    	
2
    
	
 
    	
SECTION 2.03
    	
Payment of Transfer Price
    	
 
    	
2
    
	
ARTICLE III
    	
CLOSING
    	
 
    	
2
    
	
 
    	
SECTION 3.01
    	
Conditions to Closing Obligations of De Yin   Investment
    	
 
    	
2
    
	
 
    	
SECTION 3.02
    	
Conditions to Closing Obligations of Transferee
    	
 
    	
3
    
	
 
    	
SECTION 3.03
    	
Closing
    	
 
    	
5
    
	
 
    	
SECTION 3.04
    	
Closing Deliverables by the Warrantors as of the   Closing
    	
 
    	
5
    
	
 
    	
SECTION 3.05
    	
Closing Deliverables by the Transferee as of the   Closing
    	
 
    	
6
    
	
 
    	
SECTION 3.06
    	
Post-Closing Covenants
    	
 
    	
6
    
	
ARTICLE IV
    	
REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS
    	
 
    	
6
    
	
 
    	
SECTION 4.01
    	
Representations and Warranties of the Warrantors
    	
 
    	
6
    
	
ARTICLE V
    	
REPRESENTATIONS AND WARRANTIES OF THE TRANSFEREES
    	
 
    	
6
    
	
 
    	
SECTION 5.01
    	
Representations and Warranties of Transferees
    	
 
    	
6
    
	
ARTICLE VI
    	
COVENANTS
    	
 
    	
7
    
	
 
    	
SECTION 6.01
    	
Conduct of Business
    	
 
    	
7
    
	
 
    	
SECTION 6.02
    	
Existence of the Newco
    	
 
    	
8
    
	
 
    	
SECTION 6.03
    	
Access to Information and Supplemental Due Diligence
    	
 
    	
9
    
	
 
    	
SECTION 6.04
    	
Notification of Certain Matters
    	
 
    	
9
    
	
 
    	
SECTION 6.05
    	
Tax Cooperation and Information Exchange
    	
 
    	
9
    
	
 
    	
SECTION 6.06
    	
No Solicitation or Negotiation
    	
 
    	
10
    
	
 
    	
SECTION 6.07
    	
Confidentiality
    	
 
    	
10
    
	
 
    	
SECTION 6.08
    	
Public Reporting
    	
 
    	
11
    
	
 
    	
SECTION 6.09
    	
Use of Names
    	
 
    	
11
    
	
 
    	
SECTION 6.10
    	
Non-Compete
    	
 
    	
12
    
	
 
    	
SECTION 6.11
    	
Further Actions
    	
 
    	
13
    
	
 
    	
SECTION 6.12
    	
Post-Closing Covenants
    	
 
    	
13
    
	
ARTICLE VII
    	
TAX MATTERS
    	
 
    	
14
    
	
 
    	
SECTION 7.01
    	
Indemnification
    	
 
    	
14
    
	
 
    	
SECTION 7.02
    	
Transaction Taxes
    	
 
    	
15
    
	
ARTICLE VIII
    	
INDEMNIFICATION
    	
 
    	
15
    
	
 
    	
SECTION 8.01
    	
Survival of Representations and Warranties
    	
 
    	
15
    
	
 
    	
SECTION 8.02
    	
Indemnification by the Warrantors
    	
 
    	
15
    
	
 
    	
SECTION 8.03
    	
Indemnification by the Transferee
    	
 
    	
18
    
	
ARTICLE IX
    	
TERMINATION
    	
 
    	
19
    
	
 
    	
SECTION 9.01
    	
Termination
    	
 
    	
19
    
						

 

i

 

	
 
    	
SECTION 9.02
    	
Survival
    	
 
    	
19
    
	
ARTICLE X
    	
MISCELLANEOUS
    	
 
    	
20
    
	
 
    	
SECTION 10.01
    	
Expenses
    	
 
    	
20
    
	
 
    	
SECTION 10.02
    	
Assignment
    	
 
    	
20
    
	
 
    	
SECTION 10.03
    	
Newco Shares
    	
 
    	
20
    
	
 
    	
SECTION 10.04
    	
Entire Agreement
    	
 
    	
20
    
	
 
    	
SECTION 10.05
    	
Severability
    	
 
    	
20
    
	
 
    	
SECTION 10.06
    	
Waiver
    	
 
    	
21
    
	
 
    	
SECTION 10.07
    	
Effectiveness and Amendment
    	
 
    	
21
    
	
 
    	
SECTION 10.08
    	
Notices
    	
 
    	
21
    
	
 
    	
SECTION 10.09
    	
Identical Versions
    	
 
    	
21
    
	
 
    	
SECTION 10.10
    	
Governing Law; Arbitration
    	
 
    	
21
    
	
 
    	
SECTION 10.11
    	
Language
    	
 
    	
22
    
						

 

ii

 

EQUITY TRANSFER AGREEMENT

 

This Equity Transfer Agreement (this “Agreement”) is entered into on March 26, 2019 in Shanghai, the PRC by and among:

 

(A)         Shanghai De Yin Investment Holding Co., Ltd (上海德殷投资控股有限公司), a company organized and existing under the PRC Laws (“De Yin Investment”);

 

(B)         Chen Dejun, a individual, with an ID number of        ;

 

(C)         Chen Xiaoying, a individual, with an ID number of            (together with Chen Dejun, the “Actual Controllers”); and

 

(D)         Alibaba (China) Technology Co., Ltd., a company organized and existing under the PRC Laws (the “Transferee”).

 

The foregoing parties are referred to collectively in this Agreement as the “Parties” and each individually as a “Party”.

 

RECITALS

 

WHEREAS, as of the date hereof, De Yin Investment holds a total of 822,884,966 shares of STO Express Co., Ltd (Stock Code: 002468) (the “ListCo”), representing 53.76% of the total share capital of the ListCo; De Yin Investment is wholly-owned by the Actual Controllers.

 

WHEREAS, the ListCo is mainly engaged in the business of express delivery and logistics (the “Existing Business”), and the Transferee intends to indirectly acquire shares of the ListCo (the “Equity Transfer”) by purchasing the equity interest in a Newco (as defined below), and both De Yin Investment and the Actual Controllers intend to conduct the Equity Transfer.

 

NOW, THEREFORE, in consideration of the mutual agreements and covenants hereinafter set forth, the Parties agree as follows:

 

ARTICLE I      DEFINITIONS

 

SECTION 1.01              Defined Terms

 

The meanings of the terms in this Agreement are set forth below in Exhibit 1.01.

 

SECTION 1.02              Interpretative Provisions

 

(a)             “Hereof”, “herein”, “hereunder” and similar terms shall mean the entirety of this Agreement rather than any specific provision of this Agreement; any reference to any section and sub-section shall mean the section and sub-section of this Agreement, unless otherwise indicated;

 

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(b)             The term “include” is not meant to be restrictive, and shall mean “include without limitation”;

 

(c)              The title and headings used in this Agreement are inserted for convenience of reference only, and shall not in any way affect the interpretation of this Agreement.

 

(d)             All terms defined in this Agreement have the defined meanings when used in any certificate or other document prepared pursuant to hereto, unless otherwise defined therein;

 

(e)              Any Laws referred to herein or in any agreements, instruments or other documents that is referred to herein means such Laws, agreements, instruments or other documents as amended, supplemented or modified from time to time;

 

(f)              “Writing”, “written” and comparable terms refer to printing, typing or other means of visible reproduction (including electronic media); and

 

(g)              References to a Person are also to the successors and permitted assigns of such Person.

 

ARTICLE II  EQUITY TRANSFER

 

SECTION 2.01           Equity Transfer

 

Pursuant to the terms and conditions of this Agreement, as of the Closing:

 

(a)             De Yin Investment shall transfer 49% of the equity interest of the Newco to the Transferee (the “Sale Equity”).

 

(b)             The Transferee becomes the sole owner of the Sale Equity.

 

SECTION 2.02           Transfer Price

 

In consideration of the Sale Equity, the Transferee shall pay RMB4,664,978,770 (the “Transfer Price”) in total to De Yin Investment.  For the avoidance of doubt, the Transfer Price shall be a tax inclusive price, including without limitation the enterprise income tax and stamp duty payable by De Yin Investment as a party to the transaction hereunder.

 

SECTION 2.03           Payment of Transfer Price

 

Subject to Section 8.02(e) of this Agreement, the Transferee shall remit the Transfer Price in immediately available funds in RMB by wire transfer to the account designated by De Yin Investment on the Closing Date.

 

ARTICLE III  CLOSING

 

SECTION 3.01           Conditions to Closing Obligations of De Yin Investment

 

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The obligations of De Yin Investment to consummate the Closing under this Agreement shall be subject to the satisfaction or written waiver, as of or prior to the Closing, of each of the following conditions:

 

(a)             Representations, Warranties and Covenants.  The representations and warranties of the Transferee in this Agreement shall have been true and accurate in all respects as of the date hereof and the Closing Date (for representations and warranties expressly stated to be made as of another specific date, as of such specific date), and the covenants and agreements required to be performed by the Transferee as of or prior to the Closing Date hereunder shall have been performed;

 

(b)             Transaction Documents.  The Transferee has executed all of the Transaction Documents to which it is a party and delivered the same to De Yin Investment; and

 

(c)              No Certain Governmental Order.  No Governmental Authority has formulated, issued, promulgated, implemented or adopted any Law or Governmental Order that would render the transaction contemplated under any Transaction Document unlawful, or restrict or prohibit the transaction contemplated under the Transaction Documents.

 

SECTION 3.02           Conditions to Closing Obligations of Transferee

 

The obligations of Transferee to consummate the Closing under this Agreement shall be subject to the satisfaction or written waiver, as of or prior to the Closing, of each of the following conditions:

 

(a)             Representations, Warranties and Covenants.  The representations and warranties of the Warrantors under this Agreement shall have been true, accurate, complete and not misleading in all respects as of the date hereof and the Closing Date (for representations and warranties expressly stated to be made as of another specific date, as of such specific date), and the covenants and agreements required to be performed by the Warrantors as of or prior to the Closing Date hereunder shall have been performed;

 

(b)             Transaction Documents.  The Warrantors have executed all of the Transaction Documents to which they are a party and delivered the same to the Transferee;

 

(c)              No Certain Governmental Order.  No Governmental Authority has formulated, issued, promulgated, implemented or adopted any Law or Governmental Order that would render the transaction contemplated under any Transaction Document unlawful, or restrict or prohibit the transaction contemplated under the Transaction Documents.

 

(d)             No Legal Proceeding or Litigation.  No Claim shall have been commenced or threatened against the Group Members or any Warrantor or the Business, and such Claim seeks to restrict or materially alter the terms of the

 

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transaction contemplated under the Transaction Documents, or which, in the reasonable and good faith determination of the Transferee, is likely to render it impossible or unlawful to consummate such transaction or inadvisable to proceed with such transaction or which could have a Material Adverse Effect on the Group Members, the Warrantors or the Business;

 

(e)              Due Diligence.  The Transferee has completed all business, financial, legal and tax due diligence in respect of the Business and the Group Members (including Supplemental Due Diligence) and has confirmed to the Warrantors that it is reasonably satisfied with the results thereof;

 

(f)              Approvals and Consents.  The Transferee and the Warrantors have received all authorizations, approvals and filings with Governmental Authorities and all relevant third parties consents necessary for the completion of the transactions contemplated under the Transaction Documents; and such consents and approvals have not substantially changed the commercial terms under the Transaction Documents and remain in full force and effect as of the Closing;

 

(g)              No Material Adverse Effect.  No event or events shall have occurred, or are reasonably expected to occur, which, individually or in the aggregate, may have a Material Adverse Effect;

 

(h)             Approval by the Shareholders’ Meeting.  Shareholders’ meeting of De Yin Investment has adopted the resolution approving the execution and performance of the Transaction Documents to which it is a party (including but not limited to the transfer of the 49% equity in the Newco to the Transferee at the Transfer Price);

 

(i)               Further Cooperation.  The relevant Parties have entered into written agreement on further cooperation arrangement;

 

(j)              Closing Certificate.  The Transferee shall have received a closing certificate duly executed by each Warrantor, in the form of Exhibit 3.02 (j), evidencing the satisfaction of all items under this Section 3.02;

 

(k)             Capital Contribution/Share Transfer by Agreement.  De Yin Investment has established Shanghai De Yin De Run Industry Development Co., Ltd. (上海德殷德润实业发展有限公司) (the proposed name) (the “Newco”) and holds 100% of the equity in the Newco, and De Yin Investment has contributed 457,709,848 shares of the ListCo to the Newco as capital contribution, representing 29.9% of the total share capital of the ListCo (the “Newco Shares”), and each Newco Share will be valued at RMB20.8 as of contribution, or the Newco Shares will be transferred by De Yin Investment to the Newco by agreement.  De Yin Investment, the Newco, the ListCo and the Actual Controllers have completed any approval, registration and disclosure procedures related to the capital contribution of the Newco or share transfer by agreement in accordance with the requirements of applicable Laws, the Newco Shares have been registered under the name of the Newco and the

 

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Newco shall not need to pay any fund to De Yin Investment for the acquisition of Newco Shares; De Yin Investment shall have provided the Transferee with tax-related application documents and tax payment receipts (if any);

 

(l)               Industry and Commercial Registration.  After the completion of the paragraph (k) above, De Yin Investment and the Newco shall have completed the registration for the change of the Equity Transfer, and the filing of the updated articles of association and the list of the members of the board of the Newco, and obtained the business license of the Newco and the relevant approval and filing certificates newly issued by the Administration for Market Regulation.

 

SECTION 3.03           Closing

 

Subject to the terms and conditions of this Agreement, the Closing hereunder shall take place at the date five (5) Business Days after the satisfaction or waiver of the conditions precedent for the Parties to perform the Closing obligations set forth in Sections 3.01 and 3.02, or any other time or date as the Transferee and De Yin Investment have mutually agreed in writing (the date of Closing referred to as “Closing Date”), at the Shanghai Office of Fangda Partners or at any other place as the Transferee and De Yin Investment have mutually agreed in writing (the “Closing”).  De Yin Investment shall deliver a written notice to the Transferee within two (2) Business Days after the satisfaction of the Closing conditions set forth in Section 3.02, notifying the satisfaction of such conditions and providing all supporting documents (a form of closing payment notice is set forth in Exhibit 3.03).

 

SECTION 3.04           Closing Deliverables by the Warrantors as of the Closing

 

At the Closing, the Warrantors shall deliver or cause the relevant parties to deliver the following to the Transferee:

 

(a)             The register of members of the Newco, on which the Transferee has been recorded as a holder of 49% equity interest in the Newco, in the form of Exhibit 3.04(a);

 

(b)             An original capital contribution certificate evidencing the Transferee as the shareholder holding 49% equity interest in the Newco, in the form of Exhibit 3.04(b);

 

(c)              A true and complete copy of the resolutions duly and validly adopted by the shareholders’ meeting of De Yin Investment, evidencing its approval and authorization of the entry into the Transaction Documents and the consummation of the transaction contemplated thereunder, which shall be executed and certified by the legal representative of De Yin Investment and affixed with the common seal of De Yin Investment;

 

(d)             A closing certificate duly executed by the Warrantors, evidencing the fully satisfaction of the items set forth in Section 3.02;

 

(e)              Other approvals, certificates and documents evidencing the satisfaction of Section 3.02.

 

5

 

SECTION 3.05           Closing Deliverables by the Transferee as of the Closing

 

At the Closing, the Transferee shall deliver or cause the relevant parties to deliver the following item to De Yin Investment:

 

(a)             Copy of the bank transfer certificate evidencing the payment of the Transfer Price by the Transferee in accordance with Section 2.03.

 

SECTION 3.06           Post-Closing Covenants

 

After the Closing, the Parties shall complete or cause the relevant parties to complete the following steps as soon as practicable:

 

(a)             Subject to compliance with the provisions of Laws, upon request by the Transferee, De Yin Investment shall or shall cause its Affiliates and persons acting in concert to nominate one (1) director nominee designated by the Transferee to the ListCo and cause the board of directors of the ListCo to agree to submit the director nominee designated by the Transferee to the first shareholders’ meeting held after the request by the Transferee for voting and, upon approval, to become a non-independent director of the ListCo; the Actual Controllers shall or shall cause its Affiliates to vote in favor of the election of the aforementioned director.  After the director nominee designated by the Transferee becomes a director of the ListCo, he or she may not be removed without statutory reasons.  If a director designated by the Transferee resigns or is removed for any reason, the Transferee shall have the right to nominate one (1) replacement, and De Yin Investment and its Affiliates and persons acting in concert shall or shall cause the replacement to be appointed as the director of the ListCo.

 

(b)             If any tax-related application document and tax payment receipt with respect to the transaction set forth in Section 3.02(k) has not been obtained by De Yin Investment prior to the Closing, De Yin Investment shall make tax declarations and provide the Transferee with the tax-related application document and tax payment receipt with respect to such transaction within the period prescribed by applicable tax regulations after the Closing.

 

ARTICLE IV   REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS

 

SECTION 4.01           Representations and Warranties of the Warrantors

 

The Warrantors jointly and severally make the representations and warranties to the Transferee in Exhibit IV on the date hereof and on the Closing Date.

 

ARTICLE V    REPRESENTATIONS AND WARRANTIES OF THE TRANSFEREES

 

SECTION 5.01           Representations and Warranties of Transferees

 

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The Transferee makes the representations and warranties to the Warrantors in Exhibit V on the date hereof and on the Closing Date.

 

ARTICLE VI   COVENANTS

 

SECTION 6.01           Conduct of Business

 

The Warrantors hereby jointly and severally covenant to the Transferee that, except as expressly provided herein or otherwise agreed by relevant parties, from the execution date hereof to the Closing Date, the Warrantors shall cause each Group Member to (a) conduct the Business in the ordinary course of business consistent with past practice; (b) use its best efforts to preserve the Business intact in all material respects; and (c) refrain from the following activities without the prior written consent of the Transferee:

 

(i)                       merger, division, liquidation, dissolution, change of corporate form or entry into certain transaction which could be defined as a “Sale Event” (a Sale Event means a change in control of any Group Member, sale of all or most of its major assets, license of its material intellectual properties to a third party, being merged or acquired);

 

(ii)                    to amend or delete any provision of the articles of association of the Group Members (including without limitation, amendment of the provisions on increase, decrease, election or remove of directors or supervisors) or any provision of the shareholders’ agreement (if any);

 

(iii)                 to increase or decrease the share capital or registered capital of the Group Members;

 

(iv)                to distribute profits and recover losses of the Group Members (excluding distribution by ListCo of the profits in the year of 2018);

 

(v)                   to change the equity structure of the Group Members;

 

(vi)                to create, authorize the creation or issuance of any equity securities, or any options, warrants or securities convertible into the equity interest in the Group Members; or accept any investment;

 

(vii)             to purchase, redeem any type of equity securities of Group Members or payment of any dividend on any such equity securities (excluding any repurchase of shares of ListCo held by former employees or consultants pursuant to employee stock option plans or other schemes disclosed in accordance with law prior to the execution of this Agreement as a result of their termination of employment/service);

 

(viii)          to approve, extend or modify (x) the transactions and agreements with shareholders holding more than 5% equity interest in, and directors, managers and employees of, the Group Members

 

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and the individuals or entities affiliated therewith (excluding the transactions or agreements under the employee stock option plans that have been disclosed in accordance with law and agreements entered into in accordance with the past practice in the ordinary course of the Business of the Group Members prior to this Agreement); or (y) any transaction involving the granting of exclusive rights or any material right to a third party;

 

(ix)                to modify and approve any equity/share-based award plan, any bonus and any other incentive plan;

 

(x)                   outside the ordinary course of business, any sale, mortgage, pledge, lease, transfer or disposal of any asset, the book value of which reaches or exceeds 5% of the total assets of the Group shown by the consolidated statements of the Group as of December 31, 2018, or which, although the book value of which does not reach 5% of the total assets of the Group as of December 31, 2018, is material to the Group and its Business or the absence of which would have a Material Adverse Effect on the Group and its Business, or grant an operation right to such asset to a third party;

 

(xi)                to sell, transfer, grant license of any technology or Intellectual Properties or create pledge or other Encumbrance on it (excluding in the case of licenses granted in the ordinary course of Business);

 

(xii)             to enter into joint ventures, partnerships or strategic alliances with any person;

 

(xiii)          to initiate, close or settle any material litigation or arbitration, or release or otherwise waive any claims with respect to any Indebtedness in excess of RMB10,000,000 or give up any material rights (including without limitation, any material Claims);

 

(xiv)         to select or change the external auditor of the ListCo, substantially change any accounting policy of the Group Members or change the financial year of the Group Members;

 

(xv)            to restructure or make any major changes;

 

(xvi)         to grant any loans to, or provide security or guarantee for the debts of, a third Person (including the non-wholly owned Group Members and Affiliates of the Group Members) other than any wholly owned Group Member, where the amount of the debts involved exceeds 5% of the total assets of the Group; or

 

(xvii)      to actively initiate to do any of the matters specified in Section 4.18 of Exhibit IV hereto.

 

SECTION 6.02           Existence of the Newco

 

The Warrantors hereby jointly and severally undertake to the

 

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Transferee that from the date hereof until the Expiration Date of the Agreed Period, (a) the Newco shall not carry out any business operation or incur any Indebtedness, and shall be a shell company existing only for the purpose of holding shares of the ListCo, and the Newco shall pay no fund to De Yin Investment for its acquisition of Newco Shares after the Closing; (b) the Warrantors shall maintain the Newco’s legal status of valid establishment and legitimate existence; (c) except for exercising its rights as a shareholder of the ListCo, the internal organ of authority of the Newco shall not adopt any resolution or make any decision without the prior written consent of the Transferee or for the purpose of the transaction contemplated under the Transaction Documents; (d) except for the transaction agreed under the Transaction Documents, De Yin Investment shall not transfer any share held by it in the Newco, nor shall it create any Encumbrance on such shares.

 

SECTION 6.03           Access to Information and Supplemental Due Diligence

 

From the date hereof until the Expiration Date of the Agreed Period, the Warrantors shall cause each Group Member to, to the extent permitted by Laws and subject to the reasonable notice received from the Transferee, (a) provide the Transferee and its Representatives with reasonable access to the offices, properties and books and records of the Group Members to the extent reasonable, and (b) furnish to the Transferee and its Representatives any financial and operating data and other information concerning the Group Members and the Business as the Transferee and its Representatives may from time to time reasonably request, and arrange for their respective management personnel to explain, communicate or otherwise discuss any issues identified by the Transferee and its Representatives upon request.  The Warrantors agree that after the execution of this Agreement, the Transferee will conduct Supplemental Due Diligence and the Warrantors undertake to use their best efforts to actively cooperate with the conduct of Supplemental Due Diligence to the extent permitted by Laws and provide any documents and information required by the Transferee and its Representatives.

 

SECTION 6.04           Notification of Certain Matters

 

Before the Expiration Date of the Agreed Period, the Warrantors shall timely notify the Transferee in writing of (a) all events, circumstances or facts which could result in any breach of their representations, warranties or covenants under the relevant Transaction Documents or which could have the effect of making any of their representations or warranties under the Transaction Documents untrue or inaccurate in any respect; (b) any fact, change, condition or circumstance to their knowledge that will or would reasonably be expected to cause any condition set forth in Article III hereof unable to be satisfied; and (c) all other material developments that have material impact on the assets, Indebtedness, business, financial condition, operations, results of operations, customer or supplier relations, employee relations, projections or prospects of the Group Members.

 

SECTION 6.05           Tax Cooperation and Information Exchange

 

When the Transferee or its Affiliates submit relevant Tax Certificates

 

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or participates in or conducts relevant audit or other tax-related procedures, the Warrantors shall cooperate with the Transferee and provide the Transferee with such information as the Transferee may reasonably request, including copies of the relevant Tax Certificates, relevant working papers and other documents relating to the decisions or rulings made by Tax Authority.  The Warrantors shall, and shall procure that the relevant employees will, at the reasonable request of the Transferee, to explain any documents or information provided by it under this Section 6.05.  The Transferee shall keep all information received in accordance with this Section 6.05 confidential, except for the information required to be disclosed when submitting the Tax Certificates or applying for tax refund or conducting audit or other procedures.

 

SECTION 6.06           No Solicitation or Negotiation

 

The Warrantors hereby undertake to the Transferee that unless with the prior written consent of the Transferee, from the date hereof and the earlier of (a) the Expiration Date of the Agreed Period, or (b) the termination of this Agreement, none of the Warrantors or their respective Affiliates or Representatives will (i) solicit, initiate, consider, encourage or accept any other proposals or offers from any Person: (A) relating to any acquisition or purchase of all or any portion of the equity interest in any Group Member, De Yin Investment or the Newco or assets of any Group Member (excluding Inventories to be sold in the ordinary course of Business consistent with past practice), (B) to enter into any merger, consolidation or other business combination with any Group Member, De Yin Investment or the Newco, (C) to enter into recapitalization, restructuring or any other business transaction that is not required to carry out its operations in a manner consistent with past practice with any Group Member or (ii) participate in any business operation relating thereto discuss, talk, negotiate or otherwise communicate, or furnish to any other Person any information with respect to, or otherwise cooperate in any way, assist or participate in or encourage any effort or attempt by any other Person to seek to do any of the foregoing.  The Warrantors shall immediately cease and cause to be terminated all discussions, conversations, negotiations or other communications with respect to any of the foregoing that have been initiated prior to the execution of this Agreement.  The Warrantors shall notify the Transferee promptly if any Person makes any proposal or offer for, or any inquiry or other approach with respect thereto.

 

SECTION 6.07           Confidentiality

 

Except with prior written consent of the party providing the Confidential Information, the other Parties shall not, and the Warrantors shall cause the Group Members not to, disclose or permit the disclosure of the Confidential Information in any manner.  “Confidential Information” means (a) the existence and contents of the transaction contemplated under this Agreement and other Transaction Documents, (b) any terms, conditions or other aspects of this Agreement and the other Transaction Documents, (c) negotiations of the transaction contemplated under this Agreement and other Transaction Documents, and (d) any confidential or proprietary information relating to its business, financial condition, information of

 

10

 

customers and other confidential matters that has been disclosed or may be disclosed by a Party to the other parties under the Transaction Documents.

 

Notwithstanding the foregoing, (a) the Parties may disclose (i) the Confidential Information only for their own use to their Affiliates and their employees, officers, directors, bankers, lenders, accountants, legal counsels, business partners, representatives or advisors (the “Representatives”) who need to know the Confidential Information, in each case only where such Persons are aware of the confidentiality of the Confidential Information and are under substantially similar obligations as set forth in this Section 6.07; (ii) the disclosure is required pursuant to any applicable Law; and (iii) the disclosure is required by any competent Governmental Authority; and (b) the Transferee is required to disclose the Confidential Information to its existing or potential partners, investors or transferees who need to know the Confidential Information, provided that such Persons shall have become aware of the confidentiality of the Confidential Information and are under substantially similar obligations as set forth in this Section 6.07.

 

SECTION 6.08            Public Reporting

 

Without the prior written consent of the Transferee, the other Parties shall not, and shall cause relevant parties not to, release reports, make public announcements or otherwise communicate with any media in respect of the Transaction Documents or the transaction contemplated thereunder.  If the Warrantors or the Group Members are required to make an announcement or disclose information in any form in accordance with applicable Laws or requirements of competent Governmental Authorities, the Warrantors and the Group Members shall, to the extent permitted by Laws, provide the draft announcement to the Transferee in advance and determine the content of the announcement through consultation with the Transferee.

 

SECTION 6.09            Use of Names

 

Without the prior written consent of the Transferee or its Affiliates, the Warrantors shall not and cause the Group Members not to use, publish or copy for marketing, advertising, promotional or other purposes, the name of the Transferee or its Affiliates, either alone or in combination of, including without limitation “阿里巴巴”, “淘宝”, “天猫”, “1688”, “聚划算”,”全球速卖通”, “飞猪”, “阿里妈妈”, “阿里云”, “阿里通信”, “一达通”, “友盟”, “盒马”, “闲鱼”, “优酷”, “土豆”, “优视”, “阿里游戏”, “九游”, “阿里文学”, “书旗小说”, “大麦”, “虾米”, “高德地图”, “阿里”, “淘”, “钉钉”, “口碑”, “饿了么”, “蚂蚁金服”, “蚂蚁”, “支付宝”, “余额宝”, “芝麻信用”, “网商银行”, “花呗”, “Alibaba”, “Taobao”, “Tmall”, “Juhuasuan”, “AliExpress”,

 

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“Fliggy”, “Alimama”, “Alibaba Cloud”, “AliOS”, “AliTelecom”, “OneTouch”, “Umeng”, “Freshippo”, “YOUKU”, “TUDOO”, “UC”, “UCWeb”, “Alibaba Games”, “9Game”, “Alibaba Literature”, “Shuqi”, “Damai”, “Xiami”, “AMAP”, “Ali”, “Tao”, “DingTalk”, “Koubei”, “Eleme”, “Ant Financial”, “Ant”, “Alipay”, “Yu’eBao”, “Zhima Credit”, “MYbank”, “HUABEI”, the associated devices and logos of the above brands (including but not limited to the smiling face device of Alibaba Group, cow device of Alibaba.com, ant device of Taobao, Tao doll device of Taobao, cat device of Tmall, Ju doll device of Juhuasuan, pig device of Fliggy, calculation frame device of Ali Yun, hippo device of Hema, fish device of Xianyu, Doughnut device of YOUKU, smiling face device of TUDOO, device of 9Game, flag device of Shuqi, small hand device of Damai, shrimp device of Xiami, Gaoxiaode and paper plane devices of AMAP, wing devices of DingTalk, ant device of Ant Financial, Zhi device of Alipay, sesame device of Zhima Credit, etc.), or any similar company name, trade name, trademark, product or service name, domain name, device, design, symbol or any specific description to enable any third party to identify the Transferee or any of its Affiliates.

 

Without the prior written consent of the Warrantors or the Group Members, the Transferee shall not use, publish or copy for marketing, advertising, promotional or other purposes, the name of the Warrantors and the Group Members, either alone or in combination of, including without limitation “申通快递”, “申通国际”, “申通快运”, “申通云仓”, “易物流”, “eLogistics”, “STO”, “申雪冷链” and “申鲜生活”, the associated devices and logos of the above brands (including, without limitation, the courier device of STO Group, STO letter flag device, STO Yuncang device, etc.) or any similar company name, trade name, trademark, product or service name, domain name, device, design, symbol or any specific description to enable any third party to identify the Warrantors or the Group Members.

 

SECTION 6.10            Non-Compete

 

From the date hereof, the Actual Controllers shall not, and shall ensure its and their respective Affiliates will not, and shall use its best efforts to procure the Key Employees not to, without the prior consent of the Transferee, prior to the Expiration Date of the Agreed Period or for the period in which it is an officer, shareholder or a member of the board of directors and for two (2) years thereafter, whichever ends later, (a) engage in any activities the same as, similar to, or directly or indirectly in competition with the Business (the “Competing Business”); (b) be employed by any enterprise or entity engaged or about to become engaged in the Competing Business in the PRC (the “Competitor”, excluding the Group Members) (including participating in the operation of such Competitor as partners, consultants or otherwise); (c) make any form of investment in, or manage, operate, join, control, enter into any agreement, undertakings or make any other arrangement with, any Competitor (including becoming the owner, shareholder, actual controller or creditor

 

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of such Competitor); (d) conduct any business with such Competitor (including becoming a business agent, supplier or distributor of such Competitor); (e) provide any form of consultation, opinions, financial assistance or other assistance to a Competitor; (f) execute any agreement, make any undertakings or any other arrangement, if such agreement, undertaking or arrangement restricts, prejudices or may restrict or impair the carrying on of the Existing Business of the Group Members; or (g) recruit, solicit or approach (or attempts to recruit, solicit or approach) any of the existing or potential customers, agents, suppliers and/or independent contractors of the Group Members as far as it is aware or any person employed by the Group Members or their Affiliates (in whatever capacity and whether or not his or her removal would constitute a breach of contract).

 

SECTION 6.11            Further Actions

 

The Parties shall use all reasonable efforts to take, or cause to be taken, all necessary actions, do or cause to be done all things necessary, proper or advisable under applicable Law, and to execute and deliver such documents and other papers as may be required to satisfy all conditions set forth in Article III, perform the obligations under this Agreement and the other Transaction Documents and consummate the transaction contemplated hereby and thereby.

 

After the execution of this Agreement, De Yin Investment shall pledge 315,929,898 shares of the ListCo under the Share Pledge Agreement to the Transferee and complete the registration of pledge within six (6) Business Days after the release of the pledge of the ListCo shares held by it in accordance with the relevant agreement.

 

SECTION 6.12            Post-Closing Covenants

 

(a)             The Warrantors shall procure that, after the Closing, each Group Member will:

 

(i)                 fully comply with and continuously perfect the corporate governance rules of the Group Members in all respects, including without limitation, management, environment, health, safety, finance, tax and labor;

 

(ii)              conduct the Business at any time in accordance with applicable Laws and good business practice;

 

(iii)           take all necessary steps to protect their respective Intellectual Properties and use the Intellectual Properties (including office software) in a lawful manner;

 

(iv)          hire the employees with professional expertise, management capabilities and work experience in accordance with the development of the Business; and enter into written labor contracts with all employees as required by the PRC Laws, and enter into Intellectual Property transfer, confidentiality and non-compete

 

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agreements with all of the Key Employees;

 

(v)             file and pay, in a timely manner, Social Security contributions for all applicable employees, and withhold and pay the employees’ individual portion of Social Security contributions in accordance with the applicable policies and the PRC Laws;

 

(vi)          file and withhold all relevant Taxes in a timely manner and in full amount for and on behalf of all employees, independent contractors, creditors, shareholders or other Group Members obligated to withhold Taxes in accordance with the PRC Laws in respect of any amounts payable or repayable to such Group Member; and

 

(vii)       gradually settle borrowings or Accounts Receivable (if any) with Affiliates and partners in accordance with the specified financial requirements.

 

(b)              If the Transferee waives any of the conditions to the Closing set forth in Section 3.02 based on the undertakings of the Warrantors, the Warrantors shall comply with such undertakings and complete the relevant matters within the time period agreed by the Transferee.

 

(c)              The Warrantors shall ensure that the Group Members strictly comply with Anti-corruption Laws in their operations and ensure that each Group Member, their shareholders and Key Employees and the Affiliates of the foregoing will not offer, pay, promise to pay or authorize the payment of any money or give anything of value to any Governmental Authority or Government Official for any Governmental Authority (including knowing that all or part of such money or thing of value is likely to be offered, given or promised to be given, directly or indirectly, to any Government Official) for the purpose of: (i) influencing any act or decision of such Government Official in his or her official capacity; (ii) inducing such Government Official to take any actions or omissions in relation to his or her lawful duties; (iii) securing any improper advantage; (iv) inducing such Government Official to influence or affect any act or decision of any Governmental Authority; or (v) assisting the Group Members in obtaining or retaining Business for or with, or directing business to the Group Members.

 

ARTICLE VII  TAX MATTERS

 

SECTION 7.01            Indemnification

 

Notwithstanding anything to the contrary of this Section 7.01, the Warrantors hereby undertake that the Warrantors shall indemnify the Group Members against all the Group Members’ Losses caused by any Tax liabilities of the Group Members already existing or incurred prior to the Closing (including the breach of the representations and warranties under Section 4.15 of Exhibit IV hereto, regardless of whether such Tax liabilities have been disclosed to or known to the Transferee or any Party hereto) to the Group Members and arising from the resolution or other

 

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procedures with respect to any such Tax liabilities, and after the Warrantors indemnify all the Group Members’ Losses against the Group Members, the Transferee Indemnified Parties shall not claim indemnification against the Warrantors again in respect of the same event.  If the Warrantors fail to indemnify the Group Members in full within a reasonable time, the Transferee Indemnified Parties shall have the right to request the Warrantors to jointly and severally indemnify the Transferee Indemnified Parties for all Transferee’s Losses (under this Section 7.01, the Transferee’s Losses of the Transferee Indemnified Parties shall be equal to the total amount of the Group Members’ Losses multiplied by 14.65%).

 

The Parties hereby agree that, for the purpose of the indemnification liabilities under this Section 7.01, unless the amount of the Group Members’ Losses exceeds RMB5,000,000, the Warrantors shall have no indemnification liability under this Section to the Group Members or the Transferee Indemnified Parties.  For the avoidance of doubt, the foregoing amount shall be the threshold amount that each Warrantor shall indemnify the Group Members or the Transferee Indemnified Parties, and once such threshold amount is reached, each Warrantor shall be fully liable for the Group Members’ Losses or Transferee’s Losses suffered by the Group Members or the Transferee Indemnified Parties.

 

SECTION 7.02            Transaction Taxes

 

Each Party shall be responsible for paying Taxes assessed against such Party, respectively, arising from or in connection with the transaction contemplated under the Transaction Documents pursuant to all applicable Laws.

 

ARTICLE VIII  INDEMNIFICATION

 

SECTION 8.01            Survival of Representations and Warranties

 

The representations and warranties made by the Warrantors under the Transaction Documents and Deliverables shall survive the Closing Date and the Transferee shall be entitled to claim for the breach of representations and warranties under this Article VIII after the completion of the Closing hereunder.  In the case of Section 8.02 hereof, the liabilities of the Warrantors shall not be mitigated or released by any investigation made at any time by or on behalf of the Transferee into, or the knowledge of any event before the Closing, unless otherwise disclosed in writing to the Transferee by the Warrantors and the disclosure is sufficient, specific and accepted by the Transferee.

 

SECTION 8.02            Indemnification by the Warrantors

 

(a)              Subject to the provisions of paragraph (c) below, the Warrantors shall, jointly and severally, indemnify and hold harmless the Transferee, its Affiliates, and their respective Representatives, successors and assigns (collectively, the “Transferee Indemnified Parties”) from and against the losses of the Transferee or its respective Affiliates and their respective Representatives, successors and assigns, suffered or incurred by any of the aforementioned Persons,

 

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directly or indirectly, by reason of or in connection with all liabilities, losses, damages, claims, costs and expenses, interest, awards, judgments and penalties (including reasonable attorneys’ and consultants’ fees and expenses, any Claims brought or otherwise initiated by any Person, losses caused to the Transferee by the Group Members’ losses and loss or impairment of any obtainable interests) (the “Transferee’s Losses”), regardless of whether the Transferee’s Losses have occurred before or after the Closing, arising out of or resulting from :

 

(i)                 the Warrantors’ breach of any statement, representation or warranty made by each of them under the Transaction Documents or the Deliverables;

 

(ii)              the Warrantors’ breach of any undertakings, covenants or agreements respectively made by them under the Transaction Documents; or

 

(iii)           all losses suffered or incurred by the Transferee Indemnified Parties by reason of any Claim, to the extent arising out of any act, omission, condition or Indebtedness of any Group Member or Warrantor occurring or existing prior to the Closing.

 

(b)              Subject to paragraph (c) below, the Warrantors shall, jointly and severally, indemnify and hold harmless the Transferee Indemnified Parties from and against the Losses (whether occurring before or after the Closing), caused to the Transferee Indemnified Parties, arising from, or caused by, the following matters existing before the Closing, whether disclosed or not:

 

(i)                 any Group Member or major franchisee fails to obtain the approvals or permits or complete registrations necessary for its Business; or fails to conduct the Business in accordance with all Laws or Governmental Orders applicable to it;

 

(ii)              the conduct of the Business or the use of the Intellectual Properties by any Group Member conflicts with any third party’s Intellectual Properties, or any Group Member infringes upon or misappropriates any third party’s Intellectual Properties, or any liabilities arising from data and network security defects of the Group Members;

 

(iii)           default on payment of wages or Social Security or other violation of the PRC labor Laws by the Group Members (including work hours arrangement of the Employee);

 

(iv)          indemnification liability arising from any material litigation or arbitration in relation to the Group Members;

 

(v)             any indemnification liability arising from insufficient insurance coverage of the Group Members;

 

(vi)          any losses arising from the Group Members’ violation of Anti-corruption Laws;

 

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(vii)       any Indebtedness incurred by the Newco.

 

(c)              Notwithstanding the provisions of paragraphs (a) and (b) above, the Warrantors shall fully indemnify the Group Members against all liabilities, losses, damages, claims, costs and expenses, interest, awards, judgments and penalties (including the reasonable fees and expenses of attorneys and consultants, any Claims brought or otherwise initiated by any Person, and any loss or impairment of obtainable interest) (the “Group Members’ Losses”) incurred due to the Warrantors’ breach of the provisions of Section 8.02 (a) and (b), after the Warrantors indemnify the Group Members for the Group Members’ Losses, the Transferee Indemnified Parties shall not claim indemnification from the Warrantors in accordance with this Section 8.02 again in respect of the same event.  If the Warrantors fail to indemnify all of the Group Members within a reasonable time, the Transferee Indemnified Parties shall continue to have the right to request the Warrantors to indemnify all of its Transferee’s Losses in accordance with the provisions of this Section 8.02 (in such case, the Transferee’s Losses of the Transferee Indemnified Parties shall be equal to the aggregate amount of the Losses Group Members multiplied by 14.65%).  However, with respect to the Warrantors’ breach of the provisions of Section 8.02 (a) and (b) resulting in Transferee Losses but not resulting in the Group Members Losses (for instance, the Warrantors’ breach of its Closing obligations), the Warrantors shall still indemnify the Transferee Indemnified Parties for the Transferee Losses in accordance with the provisions of this Section 8.02.

 

(d)              The Warrantors shall jointly and severally fully indemnify and hold harmless the Transferee Indemnified Parties from and against all Transferee’s Losses incurred by the Transferee Indemnified Parties due to their violation of the provisions of Section (a) and (b) of Section 8.02 under this Section 8.02.

 

(e)              The Parties hereby agree that the Transferee shall have the right to deduct any amount of indemnification payable by the Warrantors to the Transferee Indemnified Parties under this Agreement from the Transfer Price payable to De Yin Investment (unless the circumstance of indemnification only occurs under the circumstances set forth in this Section 8.02(c) and the Warrantors have already indemnified all Group Members’ Losses in accordance with this Agreement.

 

(f)               The Parties hereby acknowledge and agree that the indemnification provisions of Sections 8.02 shall be the sole and exclusive remedy of the Transferee for any breach by any other Party of the representations and warranties in the Transaction Documents or for any failure by any other Party to perform and comply with any covenants and agreements in the Transaction Documents.  However, if the Warrantors fail to perform their obligations hereunder with respect to the delivery of the equity interest (including without limitation, failure to perform the Closing obligations or willfully cause the Closing conditions set forth in Section 3.02 not to be satisfied for the purpose of not performing of the Closing obligations, in addition to the indemnification specified in Section 8.02, the Transferee may seek any and all other rights or remedies available under any other Transaction Documents or

 

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applicable Laws, including but not limited to specific performance.

 

(g)              The Parties hereby agree that, for the purpose of the indemnification liabilities under this Section 8.02, (A) unless the Group Members’ Losses or the Transferee’s Losses exceed RMB1,000,000 due to a single breach of this Agreement by the Warrantors; or (B) unless the Group Members’ Losses or the Transferee’s Losses exceed RMB5,000,000 due to a specific type of breach of this Agreement by the Warrantors (for the avoidance of doubt, the amounts of losses arising from identical or similar matters, facts or circumstances shall be aggregated, for instance, each sub-section under Section 8.02(b) is treated as a separate type) or (C) unless the amount of the Group Members’ Losses or the Transferee’s Losses exceeds RMB50,000,000 due to the breach of this Agreement by the Warrantors, the Warrantors shall not be liable to the Group Members or the Transferee Indemnified Parties for this Section 8.02.  For the avoidance of doubt, the foregoing amount is the threshold amount that each Warrantor shall indemnify the Group Members or Transferee Indemnified Parties, and once such threshold amount is reached, each Warrantor shall be fully liable for indemnifying the Group Members’ Losses or Transferee’s Losses suffered by the Group Members or the Transferee Indemnified Parties.

 

SECTION 8.03            Indemnification by the Transferee

 

(a) The Transferee shall indemnify and hold harmless the Warrantors, their Affiliates, and their respective Representatives, successors and assigns (collectively, the “Warrantors Indemnified Parties”) from and against all liabilities, losses, damages, claims, costs and expenses, interest, rulings, judgments and penalties suffered or incurred, directly or indirectly, by the abovementioned Persons (including reasonable fees and expenses of attorneys and consultants, any Claim brought or otherwise initiated by any Person, and any loss or impairment of obtainable interests, whether before or after the Closing) (the “Warrantors’ Losses”), arising out of or resulting from:

 

(i)                 the Transferee’s breach of any statement, representation or warranty made by it under the Transaction Documents; or

 

(ii)              the Transferee’s breach of any undertaking, covenant or agreement under the Transaction Documents made by it;

 

(b) If the Transferee fails to pay the Transfer Price on time in accordance with this Agreement and the payment is overdue for more than three (3) Business Days, the Transferee shall pay De Yin Investment the penalty interests equal to 0.1% of the outstanding amount for each day of overdue payment.

 

(c) The Parties hereby agree that, for the purpose of indemnification liabilities under this Section 8.03, (A) unless the amount of the Group Members’ Losses or the Transferee’s Losses exceeds RMB1,000,000 due to a single breach of this Agreement by the Warrantors, (B) unless the amount of the Warrantors’ Losses exceeds RMB5,000,000 due to a specific type of breach of this Agreement by the

 

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Transferee (for the avoidance of doubt, the amount of the Warrantors’ Losses arising from the same or similar matters, facts or circumstances shall be calculated in the aggregate), or (C) unless the amount of the Warrantors’ Losses suffered by the Warrantors Indemnified Parties in aggregate from a breach of this Agreement by the Transferee exceeds RMB50,000,000, the Transferee shall not be liable to the Warrantors Indemnified Parties for indemnification under this Section 8.03.  For the avoidance of doubt, the foregoing amount is the threshold amount for indemnification by the Transferee to the Warrantors Indemnified Parties, and once such threshold amount is reached, the Transferee shall be fully liable for indemnifying all Warrantors’ Losses suffered by such Warrantors Indemnified Parties.

 

ARTICLE IX  TERMINATION

 

SECTION 9.01            Termination

 

This Agreement may be terminated at any time prior to the Closing Date under any of the following circumstances:

 

(a)   by the Transferee if (i) an event or condition occurs that has resulted in or may reasonably be expected to result in a Material Adverse Effect or renders it impossible to fulfill any condition to the Closing under Article III, (ii) there is any Material Breach by the Warrantors, or (iii) the Group makes a general asset transfer for the benefit of creditors, or any legal proceeding is instituted by or against the ListCo seeking to adjudicate entry into criminal procedures or bankruptcy or insolvency by or against the ListCo, or the bankruptcy, insolvency, liquidation, cancellation, bankruptcy reorganization (including composition of debts) of the ListCo;

 

(b)   by either the Warrantors or the Transferee if the Closing shall not have occurred within six (6) months from the date hereof; provided, however, that the right to terminate this Agreement under this Section 9.01 (b) shall not be available to any Party whose failure to perform any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date;

 

(c)   by either the Warrantors or the Transferee in the event that any Governmental Authority shall have issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transaction contemplated by this Agreement and such order, decree, ruling or other action shall have become final and non-appealable; or

 

(d)   by the mutual written consent of the Parties.

 

When any Warrantor exercises the termination right under this Section 9.01, its termination decision shall be binding upon the other Warrantors.

 

SECTION 9.02            Survival

 

In the event of termination of this Agreement as provided for in

 

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Section 9.01, this Agreement shall forthwith become void and there shall be no liability on the part of any Party (unless otherwise provided for herein), provided that (a) Section 6.07 (Confidentiality), Section 6.08 (Public Reporting), Section 6.09 (Use of Names), Section 6.10 (Non-Compete), Section 9.02 (Survival) and Article X shall survive the termination of this Agreement, and (b) nothing herein shall relieve any Party from liability for any breach of this Agreement prior to the termination of this Agreement.

 

ARTICLE X  MISCELLANEOUS

 

SECTION 10.01     Expenses

 

All reasonable fees and expenses incurred by the Parties in connection with the Transaction Documents or the transaction contemplated thereby (including without limitation, fees of attorneys, financial advisors and auditors) (the “Transaction Expenses”) shall be borne by the Party incurring such expenses.

 

SECTION 10.02     Assignment

 

This Agreement shall be binding upon and inure to the benefit of the successors and assigns of each Party.  This Agreement may not be assigned by any Party without the prior written consent of the other Parties, except for the transfer by the Transferee to its Affiliates.  For the purpose of this Section, the aforementioned Transferee Affiliates shall not include the following competitors of the ListCo: ZTO Express, BEST Inc., YTO Express, SF Holdings, and YUNDA Holdings.

 

SECTION 10.03     Newco Shares

 

The Parties hereby agree that if due to regulatory reasons, the manner of contribution of Newco Shares by De Yin Investment into the Newco by way of capital contribution in shares or transfer by agreement needs to be adjusted, the Parties may negotiate further and enter into a supplementary agreement.

 

SECTION 10.04     Entire Agreement

 

The Transaction Documents and other documents delivered in accordance therewith (including any related appendixes, exhibits and schedules) constitute the entire agreement and understanding of the Parties with respect to the subject matter of the Transaction Documents and supersede all prior agreements and undertakings, both written and oral, among the Parties with respect to such subject matter.

 

SECTION 10.05     Severability

 

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transaction contemplated hereby is not affected in any manner materially adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the

 

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Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of this Agreement as closely as possible in an acceptable manner in order that the transaction contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

SECTION 10.06  Waiver

 

Any Party to this Agreement may (a) extend the time for the performance of any of the obligations or other acts of the other Parties, (b) waive any liabilities for inaccuracies in the representations and warranties of the other Parties herein or in any document delivered by the other Parties pursuant hereto, or (c) waive compliance with any of the provisions hereof by the other Parties or conditions precedent to its performance of the obligations herein.  Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the Parties to be bound thereby.  Any waiver of any term or condition hereof shall not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement.  The failure of any Party hereto to assert any of its rights hereunder shall not constitute a waiver of any of such rights.  All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

SECTION 10.07  Effectiveness and Amendment

 

This Agreement shall become effective upon due execution or seal by the Parties.  No amendment to this Agreement shall be effective unless it is in writing and executed or sealed by the Parties.

 

SECTION 10.08  Notices

 

All notices required or permitted hereunder shall be in writing and shall be deemed to have been effectively given:

 

(a)   upon delivery to the receiving party, if personally delivered;

 

(b)   deemed to have been delivered when reaching the mailbox of the receiving party if sent by email;

 

(c)    the third (3rd) day after the delivery to a nationally recognized express courier service company.

 

All communications shall be sent to the addresses provided in Exhibit 10.07 (or other address as a Party may have specified in a ten (10) day written notice given to the other Parties).

 

SECTION 10.09  Identical Versions

 

This Agreement may be executed and delivered in more than one (1) counterpart, each of which shall be deemed to be an original, but all executed copies shall constitute one and the same agreement.

 

SECTION 10.10  Governing Law; Arbitration

 

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(a)    This Agreement shall be governed by, and construed in accordance with, the PRC Laws.

 

(b)    Any dispute arising out of or in connection with the execution of, or in connection with, this Agreement (“Dispute”) shall be resolved through friendly consultation among the Parties.  The claiming Party shall promptly notify the other Parties in a dated notice that a Dispute has arisen and describe the nature of the Dispute.  If the Dispute cannot be resolved by the Parties within forty-five (45) days after the date of such notice of Dispute, any Party may submit the Dispute to China International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in Shanghai in accordance with its arbitration rules then in effect.  The arbitration tribunal shall consist of three (3) arbitrators.  Each of the claimant and the respondent shall appoint one (1) arbitrator.  The third arbitrator shall act as the presiding arbitrator and shall be appointed by the chairman of CIETAC.  The arbitral award shall be final and binding upon the Parties.

 

SECTION 10.11  Language

 

This Agreement is entered into in Chinese language.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

 

	
 
    	
Shanghai De Yin   Investment Holding Co., Ltd
    
	
 
    	
(Official Seal)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Equity Transfer Agreement

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

 

	
 
    	
Chen Dejun
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    

 

Signature Page to Equity Transfer Agreement

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

 

	
 
    	
Chen Xiaoying
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    

 

Signature Page to Equity Transfer Agreement

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

 

	
 
    	
Alibaba (China) Technology Co., Ltd.
    
	
 
    	
 
    
	
 
    	
   (Official Seal)
    

 

Signature Page to Equity Transfer Agreement

 

 

EXHIBIT 1.01

 

DEFINITIONS

 

 

EXHIBIT A

 

ARTICLES OF ASSOCIATION

 

 

EXHIBIT B

 

BUSINESS COOPERATION AGREEMENT

 

 

EXHIBIT C

 

SHARE PLEDGE AGREEMENT

 

 

EXHIBIT 3.02(j)

 

CLOSING CERTIFICATE

 

 

EXHIBIT 3.03

 

FORM OF CLOSING PAYMENT NOTICE

 

 

EXHIBIT 3.04(a)

 

FORM OF REGISTERD OF MEMBERS OF THE NEWCO

 

 

EXHIBIT 3.04(b)

 

FORM OF NEWCO CAPITAL CONTRIBUTION CERTIFICATE

 

 

EXHIBIT IV

 

REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS

 

 

EXHIBIT V

 

REPRESENTATIONS AND WARRANTIES OF THE TRANSFEREE

 

 

EXHIBIT 10.07

 

NOTICE INFORMATIONExhibit 10.1

  

   

  

   

  

   

  

  
    MANAGEMENT AGREEMENT

    This AGREEMENT made as of the 1st day of June, 2019 by and among CERES MANAGED FUTURES LLC, a
        Delaware limited liability company (“CMF”), CERES TACTICAL SYSTEMATIC L.P., a New York limited partnership (the “Partnership”) and AQUANTUM GmbH, a German limited liability company (“Aquantum” or the “Advisor”).

    W I T N E S S E T H :

    WHEREAS, CMF is the general partner of the Partnership, a limited partnership organized for the
        purpose of speculative trading of commodity interests, including futures contracts, options, forward contracts, swaps and other derivative instruments with the objective of achieving capital appreciation; and

    WHEREAS, such trading is to be conducted directly or through investment in CMF
        Aquantum Master Fund LLC, a Delaware limited liability company (the “Master Fund”) of which CMF is the trading manager and Aquantum is the advisor; and

    WHEREAS, the Amended and Restated Limited Partnership Agreement dated as of November 22, 2017 (the
        “Partnership Agreement”) permits CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions for the Partnership; and

    WHEREAS, the Advisor is registered as a commodity trading advisor with the Commodity Futures Trading
        Commission (“CFTC”) and is a member of the National Futures Association (“NFA”); and

    WHEREAS, CMF is registered as a commodity pool operator with the CFTC and is a member of NFA; and

    WHEREAS, CMF, the Partnership and the Advisor wish to enter into this Agreement in order to set forth
        the terms and conditions upon which the Advisor will render and implement advisory services in connection with the conduct by the Partnership of its commodity interest trading activities during the term of this Agreement.

    NOW, THEREFORE, the parties agree as follows:

    1. DUTIES OF THE ADVISOR.  (a) For the period and on
        the terms and conditions of this Agreement, the Advisor shall have sole authority and responsibility, as one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of the assets and funds of the
        Partnership, whether directly or indirectly through the Master Fund, allocated to it from time to time by CMF in commodity interests, including commodity futures and options on futures.  The Advisor may also engage in swap and other derivative
        transactions on behalf of the Partnership with the prior written approval of CMF.  All such trading on behalf of the Partnership shall be i) in accordance with the trading strategies and trading policies set forth in Appendix B, and ii) pursuant to the trading strategy selected by CMF
          to be utilized by the Advisor in managing the Partnership’s assets.  CMF has initially selected the Advisor’s Aquantum Commodity Spread (ACS) Program (the “Program”), as described in Appendix A attached hereto, to manage the Partnership’s assets allocated to it.  Any
        open positions or other investments at the time of receipt of such notice of a change in trading policy shall not be deemed to violate the changed policy and shall be closed or sold in the ordinary course of trading.  The Advisor may not deviate
        from the trading policies set forth in Appendix B without the prior written consent of the Partnership given by CMF.  The Advisor makes no representation or warranty that the trading to be directed by it for the Partnership will be profitable or
        will not incur losses.

     

      

    
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    (b) CMF acknowledges receipt of the description of the Advisor’s Program, attached hereto as Appendix A.  All trades made by the Advisor for the
        account of the Partnership, whether directly or indirectly through the Master Fund, shall be made through such commodity broker or brokers as CMF
        shall direct, and the Advisor shall have no authority or responsibility for selecting or supervising any such broker in connection with the execution, clearance or confirmation of transactions for the Partnership or for the negotiation of brokerage
        rates charged therefor.  However, the Advisor, with the prior written permission (by original, fax copy or email copy) of CMF, may direct any and all trades in commodity futures and options to a futures commission merchant or independent floor
        broker it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the futures commission merchant or independent floor broker and any give-up or floor brokerage fees are approved in advance by
        CMF.  The Advisor, with the prior written permission (by original, fax copy or email copy) of CMF, may enter into swaps and other derivative transactions with any swap dealer it chooses for execution with instructions to give-up the trades to the
        broker designated by CMF, provided that the swap dealer and any give-up or other fees are approved in advance by CMF.  All give-up or similar fees relating to the foregoing shall be paid by the Partnership after all parties have executed the
        relevant give-up agreements (via EGUS or by original, fax copy or email copy).

    (c) The initial allocation of the Partnership’s assets to the Advisor shall be made to the Program, as described in Appendix A. In the event the Advisor wishes to use a trading system or methodology other than or in addition to the Program in connection with its trading for
        the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF prior written notice of its intention to utilize such different trading system or methodology and CMF consents thereto in writing.  In addition, the Advisor
        will provide five days’ prior written notice to CMF of any change in the trading system or methodology to be utilized for the Partnership which the Advisor deems material.  If the Advisor deems such change in system or methodology or in markets
        traded to be material, the changed system or methodology or markets traded will not be utilized for the Partnership without the prior written consent of CMF.  In addition, the Advisor will notify CMF of any changes to the trading system or
        methodology that would require a change in the description of the trading strategy or methods described in Appendix A to be materially accurate.  Further, the Advisor will provide the Partnership with a current list of all commodity interests to be
        traded for the Partnership’s account, which is attached as Appendix C to this Agreement, and the Advisor will not trade any additional commodity interests for such account without providing notice thereof to CMF and receiving CMF’s written
        approval.  The Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets under the Advisor’s management together with all other matters deemed by the Advisor to be material changes to its business not previously
        reported to CMF.  The Advisor further agrees that it will convert foreign currency balances (not required to margin positions denominated in a foreign currency) to U.S. dollars no less frequently than monthly.  U.S. dollar equivalents in individual
        foreign currencies of more than $100,000 will be converted to U.S. dollars within one business day after such funds are no longer needed to margin foreign positions.

     

      

     

      

    
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    (d) The Advisor agrees to make all material disclosures to the Partnership regarding itself and its principals as defined in Part 4 of the CFTC’s
        regulations (“principals”), its manager(s), employees and member(s), their trading performance and general trading methods, its customer accounts (but not the identities of or identifying information with respect to its customers) and otherwise as
        are required in the reasonable judgment of CMF to be made in any filings required by federal or state law or NFA rule or order.  Notwithstanding Sections 1(d) and 4(d) of this Agreement, the Advisor is not required to disclose the actual trading
        results of proprietary accounts of the Advisor or its principals unless CMF reasonably determines that such disclosure is required in order to fulfill its fiduciary obligations to the Partnership or the reporting, filing or other obligations
        imposed on it by federal or state law or NFA rule or order.  The Partnership and CMF acknowledge that the trading advice to be provided by the Advisor is a property right belonging to the Advisor and that they will keep all such advice
        confidential.

    (e) The Advisor understands and agrees that CMF may designate other trading advisors for the Partnership and apportion or reapportion to such
        other trading advisors the management of an amount of Net Assets of the Partnership (as defined in Section 3(b) hereof) as it shall determine in its absolute discretion.  The designation of other trading advisors and the apportionment or
        reapportionment of Net Assets of the Partnership to any such trading advisors pursuant to this Section 1 shall neither terminate this Agreement nor modify in any regard the respective rights and obligations of the parties hereunder.

    (f) CMF may, from time to time, in its absolute discretion, select additional trading advisors and reapportion funds among the trading advisors
        for the Partnership as it deems appropriate.  CMF shall use its best efforts to make reapportionments, if any, as of the first day of a calendar month.  The Advisor agrees that it may be called upon at any time promptly to liquidate positions in
        CMF’s sole discretion so that CMF may reallocate the Partnership’s assets, meet margin calls on the Partnership’s account, fund redemptions, or for any other reason, except that CMF will not require the liquidation of specific positions by the
        Advisor.  CMF will use its best efforts to give two days’ prior notice to the Advisor of any reallocations or liquidations.

    (g) The Advisor shall assume financial responsibility for any errors committed or caused by the Advisor in transmitting orders for the purchase
        or sale of commodity interests for the Partnership’s account including payment to the brokers of the floor brokerage commissions, exchange, NFA fees, and other transaction charges and give-up charges incurred by the brokers on such trades.  The Advisor shall have an affirmative obligation to promptly notify CMF in accordance with the provisions of Section 8(a)(iii) of any errors (as described
          above) and any failures, errors or omissions by any broker (“Broker Errors”) used by the Advisor on behalf of the account that, either individually or collectively, have an adverse effect on the account.  In the event of a Broker Error, the
          Advisor agrees to use best efforts to pursue an appropriate financial remedy on CMF’s and the Partnership’s behalf with the relevant broker.

     

        

     

        

    
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    2. INDEPENDENCE OF THE ADVISOR.  For all purposes
        herein, the Advisor shall be deemed to be an independent contractor and, unless otherwise expressly provided or authorized, shall have no authority to act for or represent the Partnership in any way and shall not be deemed an agent, promoter or
        sponsor of the Partnership, CMF, or any other trading advisor.  The Advisor shall not be responsible to the Partnership, CMF, any trading advisor or any limited partners for any acts or omissions of any other trading advisor to the Partnership.

    3. COMPENSATION.  (a) In consideration of and as
        compensation for all of the services to be rendered by the Advisor to the Partnership under this Agreement, the Partnership shall pay the Advisor (i) an incentive fee (“Incentive Fee”) payable semi-annually equal to 20% of New Trading Profits (as
        such term is defined below) earned by the Advisor for the Partnership and (ii) a monthly fee for professional management services (“Management Fee”) equal to 1/12 of 1.25% (1.25% per year) of the month-end Net Assets of the Partnership allocated to
        the Advisor (computed monthly by multiplying the Net Assets of the Partnership allocated to the Advisor as of the last business day of each month by 1.25% and dividing the result thereof by 12).

    (b) “Net Assets of the Partnership” shall have the meaning set forth in Section 7(d)(2) of the Partnership Agreement and without regard to
        further amendments thereto, provided that in determining the Net Assets of the Partnership on any date, no adjustment shall be made to reflect any distributions, redemptions, management fees, administrative fees, ongoing selling agent fees or
        Incentive Fees payable as of the date of such determination.

    (c) “New Trading Profits” shall mean the excess, if any, of Net Assets of the Partnership managed by the Advisor at the end of the fiscal period
        over Net Assets of the Partnership managed by the Advisor at the end of the highest previous fiscal period or Net Assets of the Partnership allocated to the Advisor at the date trading commences by the Advisor for the Partnership, whichever is
        higher, and as further adjusted to eliminate the effect on Net Assets of the Partnership resulting from new capital contributions, redemptions, reallocations or capital distributions, if any, made during the fiscal period decreased by interest or
        other income, not directly related to trading activity, earned on the Partnership’s assets during the fiscal period, whether the assets are held separately or in margin accounts.  Ongoing expenses shall be attributed to the Advisor based on the
        Advisor’s proportionate share of Net Assets of the Partnership.  Ongoing expenses shall not include expenses of litigation not involving the activities of the Advisor on behalf of the Partnership.  Ongoing expenses include offering and
        organizational expenses of the Partnership.  No Incentive Fee shall be paid to the Advisor until the end of the first calendar semi-annual period of the Advisor’s trading for the Partnership, which fee shall be based on New Trading Profits (if any)
        earned from the commencement of trading by the Advisor on behalf of the Partnership through the end of the first calendar semi-annual period of such trading (which for the avoidance of doubt, shall be June 30, 2019).  Interest income earned, if
        any, shall not be taken into account in computing New Trading Profits earned by the Advisor.  If Net Assets of the Partnership allocated to the Advisor are reduced due to redemptions, distributions or reallocations (net of additions), there shall
        be a corresponding proportional reduction in the related loss carryforward amount that must be recouped before the Advisor is eligible to receive another Incentive Fee.

     

      

    
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    (d) Semi-annual Incentive Fees and monthly Management Fees shall be paid within twenty (20) business days following the end of the period for
        which such fee is payable.  In the event of the termination of this Agreement as of any date which shall not be the end of a calendar semi-annual period or a calendar month, as the case may be, the semi-annual Incentive Fee shall be computed as if
        the effective date of termination were the last day of the then current semi-annual period and the monthly Management Fee shall be prorated to the effective date of termination.  If, during any month, the Partnership does not conduct business
        operations or the Advisor is unable to provide the services contemplated herein for more than two successive business days, the monthly Management Fee shall be prorated by the ratio which the number of business days during which CMF conducted the
        Partnership’s business operations or utilized the Advisor’s services bears in the month to the total number of business days in such month.

    (e) The provisions of this Section 3 shall survive the termination of this Agreement.

    4. RIGHT TO ENGAGE IN OTHER ACTIVITIES.  (a) The
        services provided by the Advisor hereunder are not to be deemed exclusive.  CMF on its own behalf and on behalf of the Partnership acknowledges that, subject to the terms of this Agreement, the Advisor and its officers, manager(s), employees and
        member(s) may render advisory, consulting and management services to other clients and accounts. The Advisor and its officers, manager(s), employees and member(s) shall be free to trade for their own accounts and to advise other investors and
        manage other commodity accounts during the term of this Agreement and to use the same information, computer programs and trading strategies, programs or formulas which they obtain, produce or utilize in the performance of services to CMF for the
        Partnership.  However, the Advisor represents, warrants and agrees that it believes the rendering of such consulting, advisory and management services to other accounts and entities will not require any material change in the Advisor’s basic
        trading strategies for the Partnership and will not affect the capacity of the Advisor to continue to render services to CMF for the Partnership of the quality and nature contemplated by this Agreement.

    (b) If, at any time during the term of this Agreement, the Advisor is required to aggregate the Partnership’s commodity positions with the
        positions of any other person for purposes of applying CFTC‐ or exchange‐imposed speculative position limits, the Advisor agrees that it will promptly notify CMF in writing if the Partnership’s positions are included in an aggregate amount which
        exceeds the applicable speculative position limit.  The Advisor agrees that, if its trading recommendations are altered because of the application of any speculative position limits, it will not modify the trading instructions with respect to the
        Partnership’s account in such manner as to affect the Partnership substantially disproportionately as compared with the Advisor’s other accounts.  The Advisor further represents, warrants and agrees that under no circumstances will it knowingly or
        deliberately use trading programs, strategies or methods for the Partnership that are inferior to strategies or methods employed for any other client or account and that it will not knowingly or deliberately favor any client or account managed by
        it over any other client or account in any manner, it being acknowledged, however, that different trading programs, strategies or methods may be utilized for differing sizes of accounts, accounts with different trading policies or risk parameters,
        accounts experiencing differing inflows or outflows of equity, accounts that commence trading at different times, accounts that have different portfolios or different fiscal years, accounts utilizing different executing brokers and accounts with
        other differences, and that such differences may cause divergent trading results.

     

      

    
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    (c) It is acknowledged that the Advisor and/or its officers, manager(s), employees and member(s) presently act, and it is agreed that they may
        continue to act, as advisor for other accounts managed by them, and may continue to receive compensation with respect to services for such accounts in amounts which may be more or less than the amounts received from the Partnership.

    (d) The Advisor agrees that it shall make such information available to CMF respecting the performance of the Partnership’s account as compared
        to the performance of other accounts managed by the Advisor or its principals, if any, as shall be reasonably requested by CMF.  The Advisor presently believes and represents that existing speculative position limits will not materially adversely
        affect its ability to manage the Partnership’s account given the potential size of the Partnership’s account and the Advisor’s and its principals’ current accounts and all proposed accounts for which they have contracted to act as trading advisor.

    5. TERM.  (a) This Agreement shall continue in effect
        until December 31st, 2019 (the “Initial Termination Date”).  If this Agreement is not terminated on the Initial Termination Date, as provided for herein, then, this Agreement shall automatically renew for an additional one-year period and
        shall continue to renew for additional one-year periods until this Agreement is otherwise terminated, as provided for herein. At any time during the term of this Agreement, CMF may terminate this Agreement upon 5 days’ notice to the Advisor.  At
        any time during the term of this Agreement, CMF may elect to immediately terminate this Agreement if (i) the Net Asset Value per Unit of the Partnership shall decline as of the close of business on any day to $400 or less; (ii) the Net Assets of
        the Partnership allocated to the Advisor, either directly or indirectly through the Master Fund (adjusted for redemptions, distributions, withdrawals or reallocations, if any) decline by 30% or more as of the end of a trading day from such Net
        Assets of the Partnership’s previous highest value; (iii) limited partners owning at least 50% of the outstanding units of the Partnership (excluding interests owned by CMF, an affiliate of CMF other than the Partnership, or any of their employees)
        shall vote to require CMF to terminate this Agreement; (iv) the Advisor fails to comply with the terms of this Agreement; (v) CMF, in good faith, reasonably determines that the performance of the Advisor has been such that CMF’s fiduciary duties to
        the Partnership require CMF to terminate this Agreement; (vi) CMF reasonably believes that the application of speculative position limits will substantially affect the performance of the Partnership; (vii) the Advisor fails to conform to the
        trading policies set forth in the Partnership Agreement or Appendix B, as they may be changed from time to time; (viii) the Advisor merges, consolidates with another entity, sells a substantial portion of its assets, or becomes bankrupt or
        insolvent, (ix) Thomas P. Morrow dies, becomes incapacitated, leaves the employ of the Advisor, ceases to control the Advisor or is otherwise not managing the trading programs or systems of the Advisor, (x) the Advisor’s registration as a commodity
        trading advisor with the CFTC or its membership in NFA or any other regulatory authority, is terminated or suspended; or (xi) CMF reasonably believes that the Advisor has contributed or may contribute to any material operational, business or
        reputational risk to CMF or CMF’s affiliates.  This Agreement will immediately terminate upon dissolution of the Partnership or upon cessation of trading by the Partnership prior to dissolution.

    (b) The Advisor may terminate this Agreement by giving not less than 30 days’ written notice to CMF (i) in the event that the trading policies of
        the Partnership as set forth in Appendix B are changed in such manner that the Advisor reasonably believes will adversely affect the performance of its trading strategies; (ii) at any time after the Initial Termination Date; or (iii) in the event
        that CMF or the Partnership fails to comply with the terms of this Agreement.  The Advisor may immediately terminate this Agreement if CMF’s registration as a commodity pool operator or its membership in NFA is terminated or suspended.

     

      

    
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    (c) Except as otherwise provided in this Agreement, any termination of this Agreement in accordance with this Section 5 shall be without penalty
        or liability to any party, except for any fees due to the Advisor pursuant to Section 3 hereof.

    6. INDEMNIFICATION.  (a)(i) In any threatened,
        pending or completed action, suit, or proceeding to which the Advisor was or is a party or is threatened to be made a party arising out of or in connection with this Agreement or the management of the Partnership’s assets by the Advisor or the
        offering and sale of units in the Partnership, CMF shall, subject to subsection (a)(iii) of this Section 6, indemnify and hold harmless the Advisor against any loss, liability, damage, fine, penalty, obligation, cost, expense (including, without
        limitation, attorneys’ and accountants’ fees, collection fees, court costs and other legal expenses), judgments and awards and amounts paid in settlement actually and reasonably incurred by it in connection with such action, suit, or proceeding if
        the Advisor acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership, and provided that its conduct did not constitute negligence, bad faith, recklessness, intentional misconduct, or a
        breach of its fiduciary obligations to the Partnership as a commodity trading advisor, unless and only to the extent that the court or administrative forum in which such action or suit was brought shall determine upon application that, despite the
        adjudication of liability but in view of all circumstances of the case, the Advisor is fairly and reasonably entitled to indemnity for such expenses which such court or administrative forum shall deem proper; and further provided that no
        indemnification shall be available from the Partnership if such indemnification is prohibited by Section 16 of the Partnership Agreement.  The termination of any action, suit or proceeding by judgment, order or settlement shall not, of itself,
        create a presumption that the Advisor did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership.

    (ii) Without limiting subsection (i) above, to the extent that the Advisor has been successful on the merits or otherwise in defense of any
        action, suit or proceeding referred to in subsection (i) above, or in defense of any claim, issue or matter therein, CMF shall indemnify the Advisor against the expenses (including, without limitation, attorneys’ and accountants’ fees) actually and
        reasonably incurred by it in connection therewith.

    (iii) Any indemnification under subsection (i) above, unless ordered by a court or administrative forum, shall be made by CMF only as authorized in
        the specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is proper in the circumstances because the Advisor has met the applicable standard of conduct set forth in subsection (i)
        above.  Such independent legal counsel shall be selected by CMF in a timely manner, subject to the Advisor’s approval, which approval shall not be unreasonably withheld.  The Advisor will be deemed to have approved CMF’s selection unless the
        Advisor notifies CMF in writing, received by CMF within five days of CMF’s telecopying to the Advisor of the notice of CMF’s selection, that the Advisor does not approve the selection.

     

      

    
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    (iv) In the event the Advisor is made a party to any claim, dispute or litigation or otherwise incurs any loss or expense as a result of, or in
        connection with, the Partnership’s or CMF’s activities or claimed activities unrelated to the Advisor, CMF shall indemnify, defend and hold harmless the Advisor against any loss, liability, damage, fine, penalty, obligation, cost or expense
        (including, without limitation, attorneys’ and accountants’ fees, court costs and other legal expenses) incurred in connection therewith.

    (v) As used in this Section 6(a), the term “Advisor” shall include the Advisor, its affiliates, principals, officers, manager(s), employees and
        member(s) and the term “CMF” shall include the Partnership.

    (b) (i) The Advisor agrees to indemnify, defend and hold harmless CMF, the Partnership and their affiliates against any loss, liability, damage,
        fine, penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and other legal expenses), judgments and awards and amounts paid in settlement reasonably incurred by them (A)
        as a result of the breach of any representations and warranties or covenants made by the Advisor in this Agreement, or (B) as a result of any act or omission of the Advisor relating to the Partnership if (i) there has been a final judicial or regulatory determination or a written opinion of an arbitrator pursuant to Section 14 hereof, to the effect that such acts or omissions violated
        the terms of this Agreement in any material respect or involved negligence, bad faith, recklessness or intentional misconduct on the part of the Advisor (except as otherwise provided in Section 1(g)), or (ii) there has been a settlement of any action or proceeding with the Advisor’s prior written consent.

      (ii) In the event CMF, the Partnership or any of their affiliates is made a party to any claim, dispute or litigation or otherwise incurs any loss
        or expense as a result of, or in connection with, the activities or claimed activities of the Advisor or its principals, officers, manager(s), employees and member(s) unrelated to CMF’s or the Partnership’s business, the Advisor shall indemnify,
        defend and hold harmless CMF, the Partnership or any of their affiliates against any loss, liability, damage, fine, penalty, obligation cost or expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs
        and other legal expenses) judgments, awards and amounts including amounts paid in settlement incurred in connection therewith.

    (c) In the event that a person entitled to indemnification under this Section 6 is made a party to an action, suit or proceeding alleging both
        matters for which indemnification can be made hereunder and matters for which indemnification may not be made hereunder, such person shall be indemnified only for that portion of the loss, liability, damage, cost or expense incurred in such action,
        suit or proceeding which relates to the matters for which indemnification can be made.

    (d) None of the indemnifications contained in this Section 6 shall be applicable with respect to default judgments, confessions of judgment or
        settlements entered into by the party claiming indemnification without the prior written consent, which shall not be unreasonably withheld or delayed, of the party obligated to indemnify such party.

     

      

    
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    (e) The provisions of this Section 6 shall survive the termination of this Agreement.

    7. REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

    (a) The Advisor represents and warrants that:

    (i) All information with respect to the Advisor and its principals and the trading performance of any of them that has been provided to CMF,
        including, without limitation, the description of the Program contained in Appendix A, is complete and accurate in all material respects and such information does not contain any untrue statement of a material fact or omit to state a material fact
        that is necessary to make such statements and information therein not misleading.  All references to the Advisor and its principals, if any, in the Partnership’s current Private Placement Offering Memorandum and Disclosure Document (the
        “Memorandum”) or a supplement thereto will, after review and approval of such references by the Advisor prior to the use of such Memorandum in connection with the offering of Partnership units, be accurate in all material respects, except that with
        respect to pro forma or hypothetical performance information in such Memorandum, if any, this representation and warranty extends only to any underlying data made available by the Advisor for the preparation thereof and not to any hypothetical or
        pro forma adjustments.

    (ii) The information with respect to the Advisor set forth in the actual performance tables in the Memorandum, if any, is based on all of the
        customer accounts managed on a discretionary basis by the Advisor’s principals and/or the Advisor during the period covered by such tables and required to be disclosed therein, and such tables have been prepared by the Advisor or its agents in
        accordance with applicable CFTC and NFA rules and guidance, including, but not limited to, CFTC Rule 4.25.  The annual financial statements of Aquantum Commodity Spread FCP-SIF for the period October 1, 2017 through September 30, 2018 have been
        examined by an independent certified public accountant and a copy of the report thereon has been provided to CMF.

    (iii) The Advisor will be acting as a commodity trading advisor with respect to the Partnership and not as a securities investment adviser and is
        duly registered with the CFTC as a commodity trading advisor, is a member of NFA, and is in compliance with any such other registration and licensing requirements as shall be necessary to enable it to perform its obligations hereunder.  The Advisor
        agrees to maintain and renew such registrations and licenses during the term of this Agreement including, without limitation, registration as a commodity trading advisor with the CFTC and membership in NFA.

    (iv) The Advisor is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has full
        limited liability company power and authority to enter into this Agreement and to provide the services required of it hereunder.

    (v) The Advisor will not, by acting as a commodity trading advisor to the Partnership, breach or cause to be breached any undertaking, agreement,
        contract, statute, rule or regulation to which it is a party or by which it is bound.

     

      

    
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    (vi) This Agreement has been duly and validly authorized, executed and delivered by the Advisor and is a valid and binding agreement enforceable
        in accordance with its terms.

    (vii) At any time during the term of this Agreement that an offering memorandum or a prospectus relating to the Partnership units is required to be
        delivered in connection with the offer and sale thereof, the Advisor agrees upon the request of CMF to promptly provide the Partnership with such information as shall be necessary so that, as to the Advisor and its principals, such offering
        memorandum or prospectus is accurate.

    (b) CMF represents and warrants for itself and the Partnership that:

    (i) CMF is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has full
        limited liability company power and authority to perform its obligations under this Agreement.

    (ii) CMF and the Partnership have the capacity and authority to enter into this Agreement on behalf of the Partnership.

    (iii) This Agreement has been duly and validly authorized, executed and delivered on CMF’s and the Partnership’s behalf and is a valid and binding
        agreement of CMF and the Partnership enforceable in accordance with its terms.

    (iv) CMF will not, by acting as the general partner to the Partnership and the Partnership will not, breach or cause to be breached any
        undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound which would materially limit or affect the performance of its duties under this Agreement.

    (v) CMF is registered as a commodity pool operator and is a member of NFA, and it will maintain and renew such registration and membership during
        the term of this Agreement.

    (vi) The Partnership is a limited partnership duly organized and validly existing under the laws of the State of New York and has full limited
        partnership power and authority to enter into this Agreement and to perform its obligations under this Agreement.

    (vii) The Partnership is a qualified eligible person as defined in CFTC Rule 4.7.

    8. COVENANTS OF THE ADVISOR, CMF AND THE PARTNERSHIP.

    
      
        	

              	(a)	
                 The Advisor agrees as follows:

              

      

    

    (i) In connection with its activities on behalf of the Partnership, the Advisor will comply with all applicable laws, including rules and
        regulations of the CFTC, NFA, swap execution facility and/or the commodity exchange on which any particular transaction is executed.

     

      

    
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    (ii) The Advisor will promptly notify CMF of the commencement of any investigation, suit, action or proceeding involving the Advisor or any of its
        affiliates, officers, manager(s), employees and member(s), agents or representatives, regardless of whether such investigation, suit, action or proceeding also involves CMF.  The Advisor will provide CMF with copies of any correspondence
        (including, but not limited to, any notice or correspondence regarding the violation, or potential violation, of position limits) from or to the CFTC, NFA or any commodity exchange in connection with an investigation or audit of the Advisor’s
        business activities. This paragraph shall not require the Advisor to provide all correspondence with the NFA during the course of a routine compliance examination. The Advisor will provide NFA’s customary report of findings at the conclusion of a
        routine compliance examination.

    (iii) In the placement of orders for the Partnership’s account and for the accounts of any other client, the Advisor will utilize a pre-determined,
        systematic, fair and reasonable order entry system, which shall, on an overall basis, be no less favorable to the Partnership than to any other account managed by the Advisor.  The Advisor acknowledges its obligation to review and reconcile the
        Partnership’s positions, prices and equity in the account managed by the Advisor daily and, within two business days, to notify, in writing, the broker and CMF and the Partnership’s brokers of (A) any error committed by the Advisor or its
        principals or employees; (B) any trade which the Advisor believes was not executed in accordance with its instructions; and (C) any discrepancy with a value of $10,000 or more (due to differences in the positions, prices or equity in the account)
        between its records and the information reported on the account’s daily and monthly broker statements.

    (iv) The Advisor will maintain a net worth of not less than $250,000 during the term of this Agreement.

    (v) CMF shall have the right, from the date of this Agreement until December 31, 2019, to allocate up to $75 million in assets to the Advisor’s
        Program on behalf of any collective investment vehicle or account operated or managed by CMF and the Advisor represents that such allocations will not exceed the capacity limits of the Program.

    (vi) The Advisor will use its best efforts to close out all futures positions prior to any applicable delivery period, and will use its best
        efforts to avoid causing the Partnership to take delivery of any commodity.

    (vii) The Advisor will update any information previously provided to CMF under the Agreement, including, without limitation, information referenced
        in Section 7(a)(i) hereof

    (viii) The Advisor shall promptly notify CMF when the Advisor’s open positions maintained by the Advisor exceed the Advisor’s applicable speculative
        position limits.

    (b) CMF agrees for itself and the Partnership that:

    (i) CMF and the Partnership will comply with all applicable laws, including rules and regulations of the CFTC, NFA, swap execution facility
        and/or the commodity exchange on which any particular transaction is executed.

     

      

    
      11

      
        

    

    (ii) CMF will promptly notify the Advisor of the commencement of any material suit, action or proceeding involving it or the Partnership, whether
        or not such suit, action or proceeding also involves the Advisor.

    (iii) CMF or the selling agents for the Partnership have policies, procedures, and internal controls in place that are reasonably designed to
        comply with applicable anti-money laundering laws, rules and regulations, including applicable provisions of the USA PATRIOT Act.  CMF or the selling agents for the Partnership have Customer Identification Programs (“CIP”), which require the
        performance of CIP due diligence in accordance with applicable USA PATRIOT Act requirements and regulatory guidance.  CMF or the selling agents for the Partnership also have policies, procedures, and internal controls in place that are reasonably
        designed to comply with regulations and economic sanctions programs administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control. CMF or the selling agents for the Partnership has policies and procedures in place
        reasonably designed to comply with Section 312 of the USA PATRIOT Act, including processes reasonably designed to identify clients that may be senior foreign political figures1, in accordance with applicable requirements and regulatory
        guidance, and to conduct enhanced scrutiny on such clients where required under applicable law.  In addition, CMF or the selling agents for the Partnership has policies and procedures in place reasonably designed to prohibit accounts for foreign
        shell banks2 in compliance with Sections 313 & 319 of the USA PATRIOT Act.

      9.       COMPLETE AGREEMENT.  This Agreement
        constitutes the entire agreement between the parties pertaining to the subject matter hereof.

    10. ASSIGNMENT.  This Agreement may not be assigned by
        any party without the express written consent of the other parties.

    11. AMENDMENT.  This Agreement may not be amended
        except by the written consent of the parties.

    12. NOTICES.  All notices, demands or requests
        required to be made or delivered under this Agreement shall be effective upon actual receipt and shall be made either by electronic (email) copy or in writing and delivered personally or by registered or certified mail, return receipt requested,
        postage prepaid, or by expedited courier to the addresses below or to such other addresses as may be designated by the party entitled to receive the same by notice similarly given:

     

      

     

      

     ________________

      

    1 A "senior foreign political figure" is defined as a current or former senior official in the executive, legislative, administrative, military or judicial branches of a non-U.S.
        government (whether elected or not), a current or former senior official of a major non-U.S. political party, or a current or former senior executive of a non-U.S. government-owned commercial enterprise.  In addition, a "senior foreign political
        figure" includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure.  For purposes of this definition, a "senior official" or "senior executive" means an individual with
        substantial authority over policy, operations, or the use of government-owned resources. An "immediate family member" of a senior foreign political figure means spouses, parents, siblings, children and a spouse's parents and siblings. A "close
        associate" of a senior foreign political figure means a person who is widely and publicly known (or is actually known) to be a close associate of a senior foreign political figure.

    2 The term shell bank means a bank that does not maintain a physical presence in any country and is not subject to inspection by a banking authority.  In addition, a shell bank
        generally does not employ individuals or maintain operating records. 

     

      

     

      

    
      12

      
        

    

    If to CMF or to the Partnership:

    Ceres Managed Futures LLC

        522 Fifth Avenue,

        New York, New York  10036

        Attention:  Patrick Egan

    Email:  patrick.egan@morganstanley.com

    with a copy to:

    Rita M. Molesworth

    Willkie, Farr & Gallagher LLP

    787 Seventh Avenue

    New York, 10019

    

    

    If to the Advisor:

    Aquantum GmbH

    Josephspitalstrasse 15

        80331 Munich, Germany

        Attention: Christian Schneider

    Email:  christian.schneider@aquantumgroup.com

    with a copy to:

    William J. Bolotin

        Funkhouser Vegosen Liebman & Dunn LTD.

        55 West Monroe Street

        Chicago, Illinois 60603

        

        

        Email:  wbolotin@fvldlaw.com

    13. GOVERNING LAW.  This Agreement shall be governed
        by and construed in accordance with the laws of the State of New York.

    14. ARBITRATION.  The parties agree that any dispute
        or controversy arising out of or relating to this Agreement or the interpretation thereof, shall be settled by arbitration in accordance with the rules, then in effect, of NFA or, if NFA shall refuse jurisdiction, then in accordance with the rules,
        then in effect, of the American Arbitration Association; provided, however,
        that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator shall state in writing his reasons for his award, and further provided, that any such arbitration shall occur within the Borough of
        Manhattan in New York City.  Judgment upon any award made by the arbitrator may be entered in any court of competent jurisdiction.

    
      13

      
        

    

    15. NO THIRD PARTY BENEFICIARIES.  There are no third 
        party beneficiaries to this Agreement, except that certain persons not party to this Agreement may have rights under Section 6 hereof.

    16. COUNTERPARTS.  This Agreement may be executed in
        any number of counterparts, including via facsimile or email, each of which is an original and all of which when taken together evidence the same agreement.

    

    

    THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

    

    

    

    

    
      14

      
        

    

    

    

    PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN
        CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION.  THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING
        IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE.  CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT.

    YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY ENGAGE IN TRADING
        FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION. FURTHER,
        UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR TRANSACTIONS MAY BE EFFECTED.

    IN WITNESS WHEREOF, this Agreement has been executed for and on behalf of the undersigned as of the day
        and year first above written.

    
      	 	
              CERES MANAGED FUTURES LLC

            
	 	 
	 	 
	 	
              By:

            	
              /s/ Patrick T. Egan                                  

                  

            
	 	 	
              Patrick T. Egan

            
	 	 	
              President and Director

            
	 	 
	 	
              CERES TACTICAL SYSTEMATIC L.P.

            
	 	 
	 	 
	 	
              By:

            	
              Ceres Managed Futures LLC

            
	 	 	
              (General Partner)

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/ Patrick T. Egan                                  

                  

            
	 	 	
              Patrick T. Egan

            
	 	 	
              President and Director

            
	 	 

    

    

    

    

    

    
      15

      
        

    

    
      	 	 
	 	
              AQUANTUM GmbH

            
	 	 
	 	 
	 	
              By:

            	
              /s/ Thomas Morrow                                

                  

            
	 	 	
              Thomas Morrow

            
	 	 	
              Partner

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/ Christian Schneider                           

                  

            
	 	 	
              Christian Schneider

            
	 	 	
              Partner

            
	 	 

    

    

    

    

    

    

    

    

    

    
      16

      
        

    

    APPENDIX A

    Description of Program

    The Program is a systematic commodity market-neutral trading program. It is statistical arbitrage in nature, by
        calculating and identifying statistical mispricing in the forward curve of numerous commodity futures markets. It seeks to benefit from price dislocations in the forward structure of a universe of approximately 30 different commodity futures
        markets across the energy, soft commodity, grains, livestock, and metals asset classes. Trading signals are primarily a function of supply and demand dislocations driven by seasonality and weather conditions, implied storage or feed costs, trends
        in consumption, idiosyncratic events and increasing/realizing convenience yields. The Program seeks to extract seasonal patterns via market neutral intra-market spreads which are placed according to a 100% systematic methodology.

    

    

    

    

    

    

    

    

    

    

    

    

    
      17

      
        

    

    

    

    APPENDIX B

    Trading Policies of Ceres Tactical Systematic L.P.

    
      
        	

              	1.	
                The Partnership will invest its assets only in commodity interests that an advisor believes are traded in sufficient volume to permit ease of taking and
                    liquidating positions.  Sufficient volume, in this context, refers to a level of liquidity that an advisor believes will permit it to enter and exit trades without noticeably moving the market.

              

      

    

    
      
        	

              	2.	
                The Adviser will not initiate additional positions in any commodity interest if these positions would result in aggregate positions requiring margin of more
                    than 66 2/3% of the Partnership’s net assets allocated to that advisor.  To the extent the CFTC and/or exchanges have not otherwise established margin requirements with respect to particular contracts, (i) forward contracts in
                    currencies will be deemed to have approximately the same margin requirements as the same or similar futures contracts traded on the Chicago Mercantile Exchange and (ii) swap contracts will be deemed to have margin requirements
                    equivalent to the collateral deposits, if any, made with swap counterparties.

              

      

    

    
      
        	

              	3.	
                The Partnership may occasionally accept delivery of a commodity.  Unless such delivery is disposed of promptly by retendering the warehouse receipt
                    representing the delivery to the appropriate clearinghouse, the physical commodity position will be fully hedged.

              

      

    

    
      
        	

              	4.	
                The Partnership will not employ the trading technique commonly known as “pyramiding,” in which the speculator uses unrealized profits on existing positions as
                    margin for the purchase or sale of additional positions in the same or related commodities.

              

      

    

    
      
        	

              	5.	
                The Partnership will not utilize borrowings except if the Partnership purchases or takes delivery of commodities. If the Partnership borrows money from CMF or
                    any affiliate thereof to the extent permitted by NFA Rule 2-45, the lending entity in such case may not receive interest in excess of its interest costs, nor may the lender receive interest in excess of the amounts which would be
                    charged the Partnership (without reference to CMF’s financial abilities or guarantees) by unrelated banks on comparable loans for the same purpose, nor may the lender or any affiliate thereof receive any points or other financing
                    charges or fees regardless of the amount. Use of lines of credit in connection with its forward trading does not, however, constitute borrowing for purposes of this trading limitation.

              

      

    

    
      
        	

              	6.	
                From time to time, trading strategies such as spreads or straddles may be employed on behalf of the Partnership. “Spreads” or “straddles” include the
                    simultaneous holding of contracts on the same commodity but with different delivery dates or markets. The trader of these contracts expects to earn a profit from a widening or narrowing of the difference between the prices of the two
                    contracts

                    

              

      

    

    
      
        	

              	7.	
                The Partnership will not permit the churning of its commodity trading accounts.  The term “churning” refers to the practice of entering and exiting trades
                    with a frequency unwarranted by legitimate efforts to profit from the trades, driven by the desire to generate commission income.

              

      

    

    
      
        	

              	8.	
                The Partnership will not purchase, sell, or trade securities (except securities approved by the CFTC for investment of customer funds).

              

      

    

    
      
        	

              	9.	
                The Advisor will trade only in those futures interests that have been approved by CMF. The Partnership normally will not establish new positions in a futures
                    interest for any one contract month or option if such additional positions would result in a net long or short position for that futures interest requiring as margin or premium more than 15% of the Partnership’s net assets.

              

      

    

    
      
        	

              	10.	
                In addition, the Partnership will, except under extraordinary circumstances, maintain positions in futures interests in at least two market segments (i.e., agricultural items, industrial items (including energies), metals, currencies, and financial instruments (including stock,
                    financial, and economic indexes)) at any one time.

              

      

    

    
      
        	

              	11.	
                The Advisor will not generally take a position after the first notice day in any futures interest during the delivery month of that futures interest, except
                    to match trades to close out a position on the interbank foreign currency or other forward markets or liquidate trades in a limit market.

              

      

    

    

    

    

    

    
      18

      
        

    

    APPENDIX C

    List of Commodity Interests

    

    

    NYM WTI CRUDE OIL

    NYM HEATING OIL

    NYM RBOB GASOLINE

    NYM NATURAL GAS

    ICE BRENT CRUDE OIL

    ICE GAS OIL

    CME COMEX COPPER

    CBT CORN

    CBT CHICAGO WHEAT

    KBT KANSAS WHEAT

    CBT SOYBEANS,

    CBT SOYBEAN OIL

    CBT SOYBEAN MEAL

    NYC COCOA

    NYC COFFEE

    NYC SUGAR

    NYB COTTON

    CME FEEDER CATTLE

    CME LIVE CATTLE

    CME LEAN HOGS

    

    

  

  19

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