Document:

Exhibit 10.5

 Exhibit 10.5 
 Form of Futures Account Agreement 
  
  

			
	Prudential Bache Commodities, LLC	 	

 Futures Account Agreement 
 In consideration of Prudential Bache Commodities, LLC (“Prudential”) agreeing to act as broker or principal, as applicable, in connection with the undersigned’s (hereinafter, “Customer”)
transactions in domestic and foreign futures contracts, physical commodities, exchanges for physical commodities (“EFP”), options on domestic and foreign futures contracts and physical commodities, foreign exchange instruments and
contracts, spot contracts, swaps, swap options, or other derivatives on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, economic indices or measures of economic
risk or value or other benchmarks against which payments or deliveries are to be made (hereinafter, collectively referred to as “Contracts”), all for the account and risk of Customer, Customer hereby agrees and consents as follows:

  

	1.	APPLICABLE LAW 

 All accounts maintained by
Customer with Prudential (hereinafter, the “Accounts”), and all Contracts and agreements in respect of such Accounts shall be subject to: (a) the terms and conditions of this Futures Account Agreement (hereinafter, the
“Agreement”); (b) the laws, regulations, rules and interpretations of any applicable governmental, regulatory or self-regulatory authority, exchange or clearing house; and (c) the custom and usage of trade, as in force from time
to time (hereinafter, collectively referred to as “Applicable Law”). 
  

	2.	CUSTOMER’S REPRESENTATIONS AND WARRANTIES 

 Customer represents and warrants that: 
  

	 	a.	Customer is authorized and empowered to enter into this Agreement and to engage in and effectuate transactions in Contracts as contemplated hereby by its: (i) enabling
documents; (ii) internal policies and procedures; and (iii) Applicable Law. 

  

	 	b.	Customer, after due consideration, has determined that conducting transactions in Contracts is a prudent and appropriate activity in light of Customer’s financial status and
investment objectives, and that all Contracts entered into will be in compliance with Customer’s; (i) enabling documents; (ii) internal policies and procedures; and (iii) Applicable Law. 

  

	 	c.	Prudential will not be acting as a fiduciary with respect to Customer, its Accounts, or its transactions. Neither Prudential nor any of Prudential’s employees shall have
discretionary control or authority over any decisions made by or on behalf of Customer (except as may be provided by a power of attorney separately executed by Customer and delivered to Prudential). Moreover, the research, analyses and investment
advice that Customer may from time to time receive from Prudential will not serve as a primary basis for any investment or trading decision by Customer. All such investment and trading decisions will be made independently by Customer and/or
Customer’s duly appointed commodity trading advisor or investment adviser (hereinafter. “Advisor”), if any 

  

	 	d.	Prudential will be entitled to rely on any instructions, notices and communications that it reasonably believes to have originated with Customer or an individual authorized to act
on behalf of Customer, including but not limited to Customer’s Advisor if any, or any individual identified in writing by Customer as authorized to act on its behalf, and Customer shall be bound thereby. Where Customer has executed a Power of
Attorney, Prudential shall not be held responsible for any of Customer’s instructions until or unless Customer effectively revokes any power of attorney granting the Advisor authority to purchase or sell Contracts. 

  

	 	e.	Customer will not, either alone or in combination with others, violate any position or exercise limit. Customer will immediately notify Prudential of any positions for which
Customer is required to file any position or large trader reports under Applicable Law. 

  

	 	f.	Customer will promptly review any and all statements, reports, confirmations and other notices and communications received from Prudential upon receipt thereof and promptly notify
Prudential of any objection thereto. Verbal objection shall be confirmed promptly in writing. 

  

	 	g.	If Customer is an entity subject to the registration requirements of the Commodity Futures Trading Commission (“CFTC”) and National Futures Association (“NFA”),
Customer has reviewed the pertinent registration regulations and determined that Customer and its Advisor(s), if any, are in compliance with such regulations. 

  

			
		  	1

	 	h.	If Customer is an employee benefit plan or other entity that is subject to the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated
thereunder (“ERISA”), or is an entity subject to similar state laws and the regulations promulgated thereunder (“Benefit Plan”), Customer represents and warrants that: (i) neither Prudential nor any of its agents, employees
or affiliates have been given any discretionary authority or control regarding the management or disposition of the assets of the Benefit Plan or the Accounts; (ii) neither Prudential nor any of its agents, employees or affiliates exercise any
authority or control regarding management or disposition of the assets of the Benefit Plan or Accounts; and (iii) neither Prudential nor any of its agents, employees, or affiliates are fiduciaries, as that term is defined in ERISA or similar
state laws, as to the Benefit Plan (It Accounts with respect to the transactions contemplated by this Agreement or in any other capacity. Customer shall immediately notify Prudential of the termination of the Benefit Plan, or the filing by customer
or any governmental body or agency of a notice of intent to terminate, or the inability of Customer to pay benefits under the Benefit Plan when due. 

  

	 	i.	If Customer is not a citizen or resident of the United States, Customer has been informed by Prudential of the CFTC’s regulations concerning the designation of a futures
commission merchant as the agent of foreign brokers, customers of foreign brokers and foreign traders for certain purposes as set forth in CFTC Regulation § 15.05 and concerning special calls for information from futures commission merchants,
foreign brokers and members of contract markets as set forth in CFTC Regulation § 21.03. 

  

	 	j.	The information provided by Customer in the accompanying Account Information and Application form and any financial statements submitted to Prudential are true, complete and
correct. Customer shall immediately notify Prudential in writing if any such information changes in any material respect or if any of the foregoing representations and warranties ceases to be true, complete and correct. 

  

	3.	ORDER ENTRY AND PROCESSING 

  

	 	a.	Acceptance of Orders and Carrying of Positions. Prudential shall have the right to limit the size and number of open Contracts (net or gross) that Prudential will at any time
execute, clear and/or carry for Customer to require Customer to reduce open Contracts carried with Prudential, and to refuse acceptance of orders to establish new Contracts. Any action referred to above may be taken only after Prudential has made
reasonable efforts, if practicable, to give Customer (or its Advisor) reasonable notice under the circumstances. Unless specified by Customer, Prudential may designate the exchange or other contract markets (including without limitation, any
designated contract markets, electronic trading facilities or derivatives transaction execution facilities) on which it will attempt to execute orders. 

  

	 	b.	Transmission of Orders to Prudential Foreign Affiliates. If Customer has been approved by Prudential for the transmission of orders directly to affiliates of Prudential
located outside the United States (the “Prudential Foreign Affiliates”), for execution and clearance on non-U.S. exchanges, Customer acknowledges and agrees that: (i) it will transmit orders directly to Prudential Foreign Affiliates
identified by Prudential only in accordance with any conditions or instructions furnished by Prudential and solely for Customer’s Accounts; (ii) any orders transmitted by Customer to a Prudential Foreign Affiliate will be executed and
cleared through omnibus accounts maintained by the appropriate Prudential Foreign Affiliate in the name of Prudential and not for an account of Customer with the Prudential Foreign Affiliates; and (iii) notwithstanding its transmission of
orders to the Prudential Foreign Affiliates, Customer will continue to be a customer of Prudential and will not be a customer of the Prudential Foreign Affiliate. 

  

	 	c.	Give-Ups. Absent a separate written agreement with Customer, or with any Advisor on behalf of Customer regarding give-ups, Prudential, in its sole discretion, may but small
not be obligated to accept Contracts from other brokers executed for clearance and carrying in the Accounts. If Prudential and Customer enter into a separate written give-up agreement, this Agreement will control in the event of a conflict between
this Agreement and such give-up agreement. 

  

	 	d.	Introduced Accounts. In the event that Customer’s account has been introduced to Prudential by another futures commission merchant, introducing broker or foreign broker
(“Broker”), that Broker is acting as Customer’s agent and is not an agent of Prudential’s. Unless and until Prudential receives prior written notice from Customer, Customer hereby authorizes Prudential to accept orders for
execution and trades for clearance or any other directions associated with the Customer’s property in its Accounts(s) as effected by Broker. Customer explicitly agrees that Prudential is not responsible for inquiring into the circumstances
surrounding any transactions in Customer’s account and Customer agrees to look solely to the Broker for any damages claimed by the Customer, other than those directly caused by Prudential’s gross negligence or willful misconduct. Customer
further acknowledges that Prudential pays a portion of its fees and commissions to the Broker. 

  

	4.	RESEARCH, ANALYSES AND INVESTMENT ADVICE 

 If
Customer receives any research, analyses or investment advice (collectively, “Advice”) from Prudential, Customer hereby 

  

			
		  	2

 
acknowledges and agrees: (a) Prudential will be providing such Advice incidentally to its business as a futures commission merchant; (b) although
such Advice will be based upon information obtained from sources which Prudential believes to be reliable, that information may nonetheless be incomplete and/or unverified, and hence Prudential can make no representation, nor provide any assurance,
as to the accuracy or completeness of its Advice; (c) both Prudential’s Advice and the information upon which it is based may change without notice to Customer; and (d) Prudential and its directors, officers, employees, agents and
affiliates may take or hold positions in, or advise other customers concerning Contracts that are the subject of Prudential’s Advice to Customer, and such Positions and advice may be inconsistent with, or contrary to, the Advice given by
Prudential to Customer. 
  

	5.	MARGIN REQUIREMENTS 

 Customer agrees to
deposit and maintain with Prudential initial and variation margin, premiums or other collateral, in such form and amount as Prudential, in its reasonable discretion, may from time to time require. Margin requirements established by Prudential may
exceed applicable exchange minimum requirements. Additionally, should Prudential change the margin requirements applicable to Customer’s Accounts and/or the Contracts being maintained therein, such change may apply to existing Contract
positions as well as new positions. Any action referred to above may be taken only after Prudential has made reasonable efforts, if practicable, to give Customer (or its Advisor) reasonable notice under the circumstances. 
  

	6.	PRUDENTIAL’S SECURITY INTEREST 

 Any and
all Contracts, securities, cash, foreign currency, documents of title, investment property, financial assets, securities or commodities accounts, and/or tangible or intangible property of Customer, including all proceeds of the foregoing
(collectively, the “Collateral”) held by Prudential or its agents or affiliates, including among other, Bache Commodities Ltd, PB Financial Services, Inc., or Prudential Bache Securities, LLC on behalf of Customer, are hereby pledged to
Prudential and shall be subject to a general lien and security interest in Prudential’s favor to secure Customer’s indebtedness and obligations to Prudential, wherever and however arising, without regard to whether Prudential has made any
advances with respect to such Collateral. Customer hereby irrevocably appoints Prudential, as its attorney-in-fact with power of substitution to execute any documents required for the perfection or registration of such general lien and security
interest. Customer will not cause or allow any of the Collateral held in its Accounts, whether now owned or hereafter acquired, to become subject to any other liens or security interest of any kind, except for the security interest or lien of such
Prudential affiliate, without the express written approval of Prudential. Except as may be restricted by Applicable Law, Customer grants Prudential the right to borrow, pledge, repledge, hypothecate, rehypothecate, loan or invest any of the
Collateral with the understanding that any interest, income or benefit that may be derived therefrom, will be apportioned between the parties as separately agreed to by Prudential and Customer. Prudential shall be under no obligation to deliver to
Customer the identical Collateral in the Accounts but shall only be obligated to deliver to Customer Collateral of like or equivalent kind and amount. The rights of Prudential set forth above shall be qualified by any applicable requirement for
segregation of Customer’s property under Applicable Law. 
  

	7.	EVENTS OF DEFAULT; PRUDENTIAL’S REMEDIES 

 Prudential shall have the right (in addition to any other right or remedy it may have at law, in equity or under this Agreement), in the event: (a) Customer fails to meet initial or maintenance margin, or collateral or premium
requirements when due; (b) Customer fails to perform its obligations respecting delivery, exercise or a notice of allocation of exercise, payment for delivery or settlement under the Contracts held in its Accounts; (c) Customer is in material
breach of any of its other material Obligations hereunder; (d) there is material adverse change in Customer’s financial condition; (e) Customer files or has filed against it a petition for liquidation, reorganization or the
appointment of a receiver for a substantial portion of Customer’s assets under any bankruptcy, insolvency or other similar law; (f) Customer fails to pay its debts generally as they become due or Customer makes an assignment for the
benefit of creditors; and (g) if Customer is a Benefit Plan, Customer files a notice of intent to terminate with the Pension Benefit Guaranty Corporation (or other similar governmental agency), or receives a notice of intent to terminate from
the Pension Benefit Guaranty Corporation (or other similar governmental agency), or is unable to pay benefits under the relevant Benefit Plan when due, to: as applicable, sell, exercise, offset, buy-in or liquidate, as agent or for Prudential’s
own account and risk, any or all Contracts and other Collateral maintained in Customer’s Accounts, whether long or short, and to apply the proceeds thereof toward any and all amounts payable by Customer to Prudential hereunder, borrow or buy
any Contracts or other property for the Accounts, and to cancel any orders for Customer’s Accounts then outstanding. Any such liquidation, sale, purchase, borrowing or cancellation shall be made in the discretion of Prudential through any
commercially reasonable means whether by public auction, private transaction or otherwise. 
 Any action referred to above may be taken only
after Prudential has made reasonable efforts, under the circumstances, to contact Customer (or its Advisor if applicable) provided that Prudential’s position would not be adversely affected thereby; it being understood that no prior demand,
margin call or notice of any kind from Prudential shall be considered a waiver of Prudential’s right to take any subsequent action without providing such prior demand, margin call or notice. In the event that any action referred to above shall
be taken, Prudential shall then make reasonable efforts to notify Customer, if practicable, of such action. Upon Customer’s express request, Prudential, if practicable, will reasonably cooperate with providing information as is needed to permit
the Customer to reasonably determine the current state of the Account and all Contracts and Collateral related thereto. In all cases, Customer shall remain liable for and shall pay to Prudential on demand the amount of any deficiency in
Customer’s Accounts, and Customer shall reimburse, compensate and indemnify Prudential for any and all costs, losses, penalties, fines, taxes and damages that Prudential may incur in collecting such deficiency or otherwise exercising its rights
and remedies hereunder. 
  

	8.	ACCOUNT CHARGES 

 With respect to every
Contract purchased, sold or cleared for the Accounts Customer shall pay Prudential upon demand and Prudential hereby is authorized to charge Customer’s Accounts for: (a) all brokerage charges, give up fees, commissions and service fees as
Prudential may from time to time charge (regardless of whether other customers pay lower commissions fees or charges); (b) all contract market, clearing house, clearing member, NFA and CFTC fees or charges, fines or penalties; (iii) any
tax imposed on such transactions by any competent taxing authority; (c) the amount of any trading losses in the Accounts; (d) any debit balance or deficiency in the Accounts together with costs and reasonable attorneys’ fees incurred
in collecting any such deficit; (e) interest and service 
  

			
		  	3

 charges on any debit balances or deficiencies in the Accounts at the rate customarily charged by
Prudential (which may be at the prevailing and/or allowable rates according to the State of New York; (f) all storage and delivery service fees; and (g) any other amounts owed by Customer to Prudential with respect to the Accounts or any
transactions therein. Unless otherwise separately agreed to by Prudential and Customer, all payment obligations incurred by Customer hereunder must be satisfied in U.S. dollars. 
 Any Collateral may at any time or from time to time be applied by Prudential against any and all payment obligations of Customer to Prudential or its
affiliates in such manner as Prudential in its reasonable discretion may determine. 
  

	9.	FOREIGN CURRENCY TRANSACTIONS 

 In the event
that the Customer directs Prudential to enter into any Contract on an exchange on which such transactions are effected in a currency other than the U.S. dollar, any profit or loss arising as a result of a fluctuation in the exchange rate affecting
such currency will be entirely for the account and risk of the Customer. All initial and subsequent deposits for margin purposes, and the return to the Customer of any funds, are expected to be made in the currency of contract settlement. Should the
Customer elect to deposit funds other than the currency of settlement or instruct Prudential to convert funds that are already on deposit in another currency, Prudential shall debit or credit the Accounts of Customer at a rate of exchange determined
by Prudential in its sole discretion on the basis of the then prevailing market rate of exchange for such foreign currency. In the event that Customer carries a foreign currency denominated deficit, that deficit will be marked-to-market versus the
United States Dollar on a daily basis at Prudential’s reasonable discretion. Customer may also be charged interest on such deficit at either the prevailing rate applicable to the foreign currency, or the prevailing United States dollar interest
rate, plus additional interest consistent with section 8 of this Agreement. 
  

	10.	DELIVERY AND OPTION EXERCISE PROCEDURES 

 At
least five business days prior to last trading day or first notice day in any given Contract, or at such earlier time as Prudential may reasonably require, Customer agrees that it will: (a) provide Prudential with instructions to liquidate or
make or take delivery under such Contract, or in the case of an options position, provide Prudential with instructions to liquidate, exercise or allow the expiration of such options position; (b) deliver to Prudential sufficient funds and
documents required to effectuate the desired closing transaction. Additionally, Customer understands and acknowledges that short options positions are subject to random exercise procedures and may be assigned a notice of exercise at any time.

 If Customer fails to comply with any of the foregoing obligations, Prudential may, in its reasonable discretion, liquidate any open
positions, make or receive delivery of any commodities or instruments, or exercise as appropriate. Customer shall remain fully liable for all costs, losses, expenses, liabilities and damages that Prudential may incur in connection with such
transactions and for any remaining debit balance in the Accounts. 
  

	11.	PRUDENTIAL’S RESPONSIBILITIES, LIMITS ON 

 Prudential shall not be liable for any losses or damages sustained by Customer other than as a result of Prudential’s material breach of Agreement, gross negligence or willful misconduct If Customer’s Accounts have been introduced
to Prudential by an agent other than Prudential, or executed at the direction of a third party and is carried by Prudential only as a clearing broker, Customer agrees that Prudential is not responsible for the conduct of the introducing broker,
executing broker or Advisor and Prudential’s sole responsibilities relate to the execution, clearing and bookkeeping of transactions in Accounts, to the extent of Prudential’s actual involvement therewith. 
 EXCEPT AS REQUIRED BY APPLICABLE LAW, PRUDENTIAL SHALL NOT BE LIABLE FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES OF ANY KIND
WHATSOEVER, EVEN IF ADVISED OF THE POSSIBILITY THEREOF. 
 Prudential acts as agent, and not as principal, for Customer’s futures and
commodity options transactions which are effected on exchanges. Additionally, Prudential may utilize third party brokers to assist in the execution and clearance of certain Contracts on certain exchanges. In these circumstances, Prudential does not
guarantee the performance or obligations of any third party to Customer’s exchange-traded contract transactions. Moreover, Prudential shall have no responsibility or liability to Customer: (a) in connection with the performance or
non-performance by any contract market, clearing, house, clearing firm or other third party (including custodians and banks) of such entity’s obligations in respect of any Contract or other property of Customer’s; or (b) as a result
of any delay in the performance or non-performance of any of Prudential’s obligations hereunder caused directly or indirectly by the occurrence of any contingency beyond the control of Prudential including, but not limited to, the unscheduled
closure of any exchange or contract market or any delay in the transmission of any orders due to breakdowns or failures of any transmission, trading or communication system. 
  

	12.	INDEMNIFICATION 

 A Party (“Party
X”) shall indemnify and hold harmless the other Party (“Party Y”), its directors, officers, employees, agents and affiliates from and against all claims, damages, losses and costs (including reasonable attorneys’ fees) incurred
by Party Y in connection with: (a) any failure by Party X to perform its obligations under this Agreement and any exercise by Party Y of its rights and remedies hereunder; (b) any failure by Party X to comply with Applicable Law;
(c) any action reasonably taken by Party Y or its affiliates or agents to comply with Applicable Law; and (d) any reliance by Party Y on any instruction, notice or communication that Party Y reasonably believes to originate from a person
authorized to act on behalf of Party X. 
  

			
		  	4

	13.	LIQUIDATION OF OFFSETTING POSITIONS 

 Prudential shall liquidate any Contract for which an offsetting order is entered by Customer, unless Customer instructs Prudential not to liquidate such Contract and to maintain the offsetting Contracts as open positions; provided,
that Prudential shall not be obligated to comply with any such instructions given by Customer if Customer fails to provide Prudential with any representations, documentation or other information reasonably requested by Prudential, or if, in
Prudential’s reasonable judgment, any failure to liquidate such offsetting Contracts against each other could result in a violation of Applicable Law. 
  

	14.	REPORTS AND OBJECTIONS 

 All written and oral
reports related to the Accounts, including but not limited to confirmations and purchase and sale statements, provided to Customer shall be conclusive and binding on Customer unless Customer notifies Prudential of any objection as follows:
(a) in the case of any oral communication, at the time such report is given to Customer; and (b) in the case of any written communication, before the opening of trading on the business day following the day on which Customer received such
communication; provided that with respect to monthly statements Customer may notify Prudential of any objection thereto within five business days after receipt of such statement. 
  

	15.	TERMINATION 

 This Agreement may be
terminated at any time by Customer or Prudential by written notice to the other; provided, however, that any such termination shall not affect any rights, liabilities or obligations already in existence at the time of such notice. In the event that
such notice is provided, Customer shall either close out open positions in the Accounts or arrange for such open positions to be transferred to another futures commission merchant. Upon satisfaction by Customer of all of Customer’s obligations
and debts to Prudential, Prudential shall transfer to another futures commission merchant all Contracts, if any, then held in the Accounts, and shall transfer to Customer or to another futures commission merchant, as Customer may instruct, all cash,
securities and other property held in the Accounts. In the event of a transfer of positions, Customer may be responsible for half turn commissions in Prudential’s sole discretion. 
  

	16.	RECORDING 

 Customer and Prudential
understand that telephone conversations between Customer and Prudential may, in Prudential’s or Customer’s discretion, be recorded. Customer and Prudential hereby agree and consent to such recording, with or without the use of an automatic
tonal warning device, and waives any right Customer or Prudential may have to object to the recording. Each of Customer and Prudential agree that in the event of any dispute between the parties, each party will make available a copy of any relevant
recording between the two parties upon request to the other. 
  

	17.	INSTRUCTIONS, NOTICES AND OTHER COMMUNICATIONS 

 All instructions, notices and other communications permitted hereunder may be oral unless required to be in writing by this Agreement. Customer authorizes Prudential to purchase and sell Contracts in accordance with Customer’s oral and
written instructions. Customer hereby waives any defense that such instructions were not in writing, even if a writing may be required under Applicable Law. All instructions, notices and other communications, other than instructions to purchase or
sell Contracts, shall be addressed as follows: (a) if to Prudential: to the office manager of the Prudential office where Customer’s Accounts are located; (b) if to Customer, at the address indicated on the Account Application and
Information form accompanying this Agreement. 
  

			
		  	5

	18.	NO WAIVER 

 No failure on the part of
Prudential to exercise, and no delay in exercising, any contractual right will operate as a waiver thereof, nor will any single or partial exercise by Prudential of any of its rights and remedies hereunder preclude any other or future exercise
thereof or the exercise of any other partial right. 
  

	19.	GOVERNING LAW 

 The interpretation and
enforcement of this agreement and the rights, obligations and remedies of the parties shall be governed by and construed in accordance with the laws of the state of New York, without regard to principles of choice of law. 
  

	20.	CONSENT TO JURISDICTION, WAIVER OF JURY TRIAL AND STATUTE OF LIMITATIONS 

 Customer submits to the exclusive jurisdiction of the courts of the State of New York and the United States District Court for the Southern District of New York with respect to any proceeding arising out of or
relating to this Agreement or any transaction in connection herewith. Customer consents to the service of process by the mailing to Customer of copies of such court filing by certified mail to the address of Customer as it appears on the books and
records of Prudential, such service to be effective ten days after mailing. 
 CUSTOMER IRREVOCABLY WAIVES ANY RIGHT THAT IT MAY HAVE TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 ANY ACTION ARRISING OUT OF OR
RELATING TO THIS AGREEMENT MUST BE BROUGHT BY CUSTOMER WITHIN ONE YEAR OF THE CAUSE OF ACTION ARISING, PROVIDED HOWEVER, THAT ANY ACTION BROUGHT UNDER THE PROVISION OF SECTION 14 OF THE COMMODITY EXCHANGE ACT BY A PERSON WHO WAS NOT AT THE TIME OF
THE ANIVERSARY OF THE CAUSE OF ACTION OR EARLIER, AN ELIGIBLE CONTRACT PARTICIPANT PERSUANT TO SECTION la(12) OF THE COMMODITY EXCHANGE ACT, MAY BE BROUGHT AT ANY TIME WITHIN TWO YEARS AFTER THE CAUSE OF ACTION ACCRUES. 
  

	21.	SEVERABILITY 

 If any provision of this
Agreement, is or at any time becomes inconsistent with any present or future Applicable Law, the inconsistent provision shall be deemed superseded or modified to confirm with such law, rule or regulation but in all other respects this Agreement
shall continue and remain in full force and effect. 
  

	22.	BINDING EFFECT 

 This Agreement shall be
binding on and inure to the benefit of the parties, their successors and permitted assigns. This Agreement and the obligations of the Customer may not be assigned by Customer without the prior written consent of Prudential and any such attempt at
assignment without such consent of Prudential shall be ineffective. Prudential shall have the right to transfer or assign this Agreement (and thereby the Accounts) to any successor entity or to another properly registered futures commission merchant
provided Prudential has given customer written notice of such proposed transfer or assignment and Customer does not, within three business days of receipt of such notice, give Prudential other instructions as to the disposition of the Accounts.

  

	23.	ENTIRE AGREEMENT 

 This Agreement contains
the entire agreement between the parties and supersedes any prior agreements between the parties as to the subject matter hereof. No provision of this Agreement shall in any respect be waived, altered, modified, or amended unless such waiver,
alteration, modification or amendment is signed by the party against whom such waiver, alteration, modification or amendment is to be enforced. Capitalized terms appearing in ancillary documents such as the Authorization to Transfer Funds, Cross
Trade Consent, Arbitration Agreement, Partnership Account Authorization, Certified Customer Resolutions, Hedge Account Agreement or Limited Power of Attorney, shall have the meanings ascribed herein. 
  

	24.	MODIFICATIONS 

 Any modifications to this
Agreement must be in writing and accepted by Prudential in writing and no officer or employee of Prudential is authorized to make any representation contrary to, or inconsistent with, this Agreement. 
  

	25	MULTIPLE, SEPARATE ACCOUNTS 

 Customer, being
a trust (“Trust”) organized in distinct separate series, is hereby opening a separate Account for each series of the Trust 

  

			
		  	6

 
(each, a “Fund” and collectively, the “Funds”). A list of each Fund is attached as Appendix A to this Agreement. For avoidance of doubt,
notwithstanding any other provision of this Agreement, the parties hereto agree that by executing this Agreement a separate Account is created with respect to each Fund, unless as otherwise indicated in Appendix A, and Prudential without the need
for execution of separate documentation by the parties. The Account of each Fund shall be entirely distinct and separate from the Account of each other Fund, and the contracts, Funds or other assets attributable to each Fund shall not be subject to
any netting or set-off in respect of the Account of any other Fund. Nor shall any Event of Default or other breach of agreement in respect of any Account constitute an Event of Default or other breach of any other Account. Each Fund shall be solely
responsible for the performance of the obligations under this Agreement in respect of its Account and no other Fund shall guarantee or be subject to any liability with regards to the performance or non-performance or any other action of any other
Fund. 
  

			
		  	7

			
		 	Doc. ID 10

 CUSTOMER ACKNOWLEDGEMENTS 
 (Please Check The Appropriate Boxes with an “X” Where Applicable): 
  

							
	I.	 	Acknowledgement of Risk Disclosure    	 	 Doc. ID
 28
	  	
		
	 ̈	 	 Customer hereby acknowledges and represents that it received, read and understood the Risk Disclosure Statement for Futures and Options
in the form prescribed by the CFTC.
  

							
	II.	 	Authorization to Transfer Funds    	 	 Doc. ID
 32
	  	
		
	 ̈	 	Within Customer’s Account, are several types of sub accounts established for regulatory purposes relating to customer protection. Customer’s assets may be maintained in
either a “Segregated Account”, or a “Separate” or a “Non-Segregated Account”. Customer’s Segregated Account is utilized for all customer assets deposited by Customer with Prudential for margin related to futures
contracts transactions on U.S. Exchanges. Customer’s Separate and Non-Segregated Accounts are utilized for all customer assets deposited by Customer with Prudential for margin related to futures contracts transactions on non-U.S. Exchanges or
for obligations associated with over-the-counter transactions involving Prudential Bache Commodities, LLC.
		
		 	 CUSTOMER HEREBY AUTHORIZES PRUDENTlAL, AT ANY TIME AND FROM TIME TO TIME, WITHOUT PRIOR NOTICE, TO TRANSFER BETWEEN CUSTOMER’S
SEGREGATED ACCOUNT, OR CUSTOMER’S SEPARATE OR NON-SEGREGATED ACCOUNT SUCH FUNDS, EQUITIES, SECURITIES, AND/OR OTHER PROPERTY AS IN PRUDENTIAL’S JUDGMENT MAY BE REQUIRED FOR MARGIN, OR TO REDUCE OR PAY IN FULL ANY DEBIT BALANCE AND/OR TO
REDUCE OR SATISFY DEFICITS IN ANY OTHER ACCOUNTS. PRUDENTIAL AGREES, HOWEVER, THAT WITHIN A REASONABLE TIME AFTER MAKING ANY SUCH TRANSFER, PRUDENTIAL WILL CONFIRM THE SAME IN WRITING TO THE UNDERSIGNED.
  

							
	III.	 	Consumer Credit Information for Customers who are Natural Persons    	 	 Doc. ID
 5A
	  	
		
	 ̈	 	I understand that, in connection with the execution of this Agreement, Prudential may obtain a consumer report to assess and verify my profile information, and to comply with
relevant federal and state statutes and regulations.
		
		 	By signing below, I am authorizing Prudential to obtain a consumer report about me for the purposes of assessing my profile information, and complying with any applicable laws and
regulations. I also authorize Prudential to obtain additional consumer reports about me for these purposes at any time during the term of the Agreement. Accordingly, I authorize any consumer reporting agency acting on Prudential’s behalf to
furnish any consumer report that Prudential requests. I agree that a facsimile or photographic copy of this authorization shall be valid as the original.
	
	IN WITNESS WHEREOF, ProShare Capital Management LLC (as Customer’s Sponsor) has executed this Agreement on the date indicated below. 
	
	Customer Name: PROSHARES TRUST II, a Trust organized in the following fourteen distinct Funds:
	  
 ProShares Ultra DJ-AIG
Commodity
 ProShares UltraShort DJ-AIG Commodity
 ProShares Ultra DJ-AIG Agriculture
 ProShares UltraShort DJ-AIG Agriculture
 ProShares Ultra DJ-AIG Crude Oil
 ProShares UltraShort DJ-AIG Crude Oil
 ProShares Ultra Gold
 ProShares UltraShort Gold
 ProShares Ultra Silver
 ProShares UltraShort Silver
 ProShares Ultra Euro
 ProShares UltraShort Euro
 ProShares Ultra Yen
 ProShares UltraShort Yen

 
  

			
	By: ProShare Capital Management LLC
		
	By:	 	  

	Name:	 	
	Title:	 	
	Date:	 	

  

			
		  	8

 APPENDIX A 
 ProShares Trust II is Delaware Statutory Trust comprised of the following Funds: 
 ProShares Ultra DJ-AIG Commodity 
 ProShares UltraShort DJ-AIG Commodity 
 ProShares Ultra DJ-AIG Agriculture*

 ProShares UltraShort DJ-AIG Agriculture* 
 ProShares Ultra
DJ-AIG Crude Oil 
 ProShares UltraShort DJ-AIG Crude Oil 
 ProShares Ultra Gold 
 ProShares UltraShort Gold 
 ProShares Ultra Silver 
 ProShares UltraShort Silver 
 ProShares Ultra Euro 
 ProShares UltraShort Euro 
 ProShares Ultra Yen 
 ProShares UltraShort Yen 
  

	*	Upon execution of this Agreement a separate Account will not initially be created for each denoted Fund above. The Customer or Sponsor may at a future date request the opening of an
Account for such Funds. 

  

			
		  	9China Security & Surveillance Technology, Inc.: Exhibit 10.1 - Prepared
by TNT Filings Inc.

  

 

Exhibit 10.1

(English Translation)

 

November 10, 2008

 

 

 

 

The Transferor:

LI Junhua  

 

The Transferee:

CHINA SAFETECH HOLDINGS LIMITED

 

Party C:

CHINA SECURITY & SURVEILLANCE TECHNOLOGY, INC.

 

 

	

 

Equity Transfer Agreement

of

All Issued Shares  

of  

DIT INDUSTRY (H.K.) LIMITED

 

 

 

 
This Equity Transfer Agreement (the “Agreement”) is entered into by and among the following parties on November 10, 2008:

 

(1)

LI Junhua whose address is Unit B1, 9/F., Loyong Court Commercial Building, 212-220 Lockhart Road, Wanchai, Hong Kong, with the number of the Identity Card of Hong Kong Special Administrative Region of the People’s Republic of China: A 233039(6) (hereinafter referred to as “Transferor”);

 

(2)

CHINA SAFETECH HOLDINGS LIMITED, a company duly incorporated according to the law of British Virgin Islands, whose address is F13, Press Plaza, Shennan Avenue Special Zone, Futian District, Shenzhen (hereinafter referred to as  “Transferee”);

 

(3)

CHINA SECURITY & SURVEILLANCE TECHNOLOGY, INC., a company duly incorporated according to the law of Delaware, United States, whose address is F13, Press Plaza, Shennan Avenue Special Zone, Futian District, Shenzhen (hereinafter referred to as “Party C”);

 

The Transferor, the Transferee and Party C above shall be individually referred to as a “Party” and collectively referred to as the “Parties”.

 

WHEREAS

DIT INDUSTRY (HK) LIMITED, a limited liability company legally organized and validly existing under the Company Ordinance of Hong Kong, whose information is listed as Exhibit I (hereinafter referred to as “DIT Industry”), and whose all issued shares are beneficially held by the Transferor.

 

WHEREAS

The Transferee desires to purchase from the Transferor and the Transferor desires to transfer to the Transferee 100% issued shares of DIT Industry.

 

NOW, THEREFORE, the Parties hereby agree as follows:

 

 

Article 1  Definitions

 

1.1

Unless otherwise defined in this Agreement, the following terms shall have the meanings indicated as follow:

 

  
	
  
  “Company Ordinance”

	
  
  means Chapter 32 Company Ordinance of the laws of Hong Kong;

	
   	
   
	
  
  “Shares for Transfer”

	
  
  means 10,000 common share of DIT Industry owned by the Transferor to be transferred from the Transferor to the Transferee under this Agreement, constituting 100% issued and outstanding stock of DIT Industry (for details please refer to Exhibit II - Part A);

	 	 
	
  
  “Share Transfer”

	
  
  means 100% issued shares of DIT Industry to be transferred from the Transferor to the Transferee under Article 2.1 hereof;

	 	 
	
  
  “Balance”

	
  
  shall have the meaning specified under Article 3.2.1 (1) hereof;

	 	 
	
  
  “Total Transfer Price”

	
  
  means total price to be paid to the Transferor by the Transferee under Article 3.1 hereof;

	 	 
	
  
  “Closing Date”

	
  
  November 10, 2008;

	 	 
	
  
  “Accounts of DIT Industry”

	
  
  means management financial statements of DIT Industry as of September 30, 2008, the copies of which are attached as Exhibit A hereof;

	 	 
	
  
  “Business Day and Working Hours”

	
  
  means the days when banks in Hong Kong normally provide general bank services (excluding Saturday, Sunday and other Hong Kong public holidays) and general working hours;

	 	 
	
  
  “Hong Kong”

	
  
  means Hong Kong Special Administrative Region of the People’s Republic of China;

	 	 
	
  
  “HKD”

	
  
  means legal currency of Hong Kong;

	
   	
   
	
  
  “USD”

	
  
  means legal currency of United States;

  

 

1.2

In this Agreement:

 

(i)

Any rule or law involved herein shall include any and all amendments, supplements or reenactments hereof from time to time;

 

(ii)

Words and terms contained in Companies Ordinance shall be interpreted according to definitions stipulated in Companies Ordinance except as otherwise defined or stated in this Agreement, however, any amendment or change to Companies Ordinance shall be excluded which is not enforced before or on the date to execute this Agreement.

 

2

 

 

(iii)

Single word also includes plural meaning; word referred to any gender also includes the other gender and neuter, word referred to person also includes groups (legal person or non-legal person) and (under every circumstance), vice versa;

 

(iv)

Hereabove mentioned the parties, descriptions, exhibits, appendices and terms and conditions shall be respectively referred to the parties, descriptions, exhibits, appendices and terms and conditions hereof; and

 

(v)

The headings and table of contents in this Agreement are provided for reference only and will not affect its construction or interpretation.

 

 

Article 2  Share Transfer

 

2.1

As per stipulations in this Agreement, the Transferor, as the owner of all issued and outstanding shares of DIT Industry (for more details please refer to Part A, Exhibit II), will transfer such Shares for Transfer to the Transferee (for more details please refer to Part B, Exhibit II). After such transfer, the Transferee will own 100% issued and outstanding shares of DIT Industry.

 

2.2

Upon the completion of transaction hereunder, Shares for Transfer shall not be attached with any mortgage, lien or property encumbrances of any form, and Shares for Transfer shall be transferred with all rights attached or accumulated thereto, including all dividends, profits, and relevant benefits accumulated and distributed from the completion date.

 

 

Article 3 Transfer Price

 

3.1

Transfer Price

 

The Transferor and the Transferee agree, the Transferor shall transfer to the Transferee Shares for Transfer. In return, the Transferee shall pay to the Transferor Total Transfer Price of RMB23,680,032, consisting of RMB 13,800,000 in cash and shares of Party C with a value of RMB 9,880,032.
 

 

3.2

Method of Payment

 

3.2.1

The Transferee shall pay the Total Transfer Price to the Transferor as follows:

 

(1)

The Transferee (through its parent company, Party C) has paid to the Transferor RMB2,760,000 before the Closing Date. The Balance in RMB 11,040,000 will be paid by the Transferee to the Transferor according to Article 5.2 hereof.

 

3

 

 

(2)

The Transferee (through its parent company, Party C) shall issue restricted shares with a value equal to RMB9,880,032 to the Transferor or its designees within ninety days after the execution date of this Agreement, and the share value shall be calculated based on the average closing price (USD10.3715/share) of twenty trading days before the execution date of this Agreement, which means that the Transferee shall issue 139,573 shares to the Transferor, among which 27,915 shares with a value equal to RMB1,976,035 shall be released to the Transferor within ninety days after the execution date of this Agreement. If the shares are issued to TONG Xiaosheng, the lock-up period for sales of those shares is two years after the execution date of this Agreement.  The Transferor shall pledge certain shares to the Transferee as provided under Article 5.2 hereof.

 

3.2.2

The Transferee shall remit the Balance of the cash amounts to the bank account designated by Transferor in accordance with the stipulations by Article 5.2 hereof.  The bank account information will be provided by the Transferor separately.

 

 

Article 4  Closing

 

4.1

The Share Transfer shall be completed on the Closing Date at the place stipulated by both parties in accordance with Exhibit V.

 

4.2

Terms and conditions to be performed hereof shall remain in force after the Closing Date.

 

4.3

From the Closing Date, debts and credits and all risks of DIT Industry shall be promptly borne by the Transferee (except otherwise undertaken by the Transferor in Exhibit IV).

 

4.4

From the Closing Date, the Transferee shall have the right to consolidate profits of DIT Industry with the Transferee group. At the meantime, the Transferee shall have the right to appoint management and financial personnel, or appoint existing personnel of DIT Industry to take charge of management and operation of DIT Industry as well as all files, materials, financial documents and so on.  The Transferor shall have no right and/or interest as shareholder of DIT Industry from the Closing Date due to such Share Transfer, except any relevant obligations required to be borne by the Transferor under applicable laws and regulations and this Agreement.

 

4

 

 

Article 5  Representations, Warranties and Covenants of the Transferor

 

5.1

In addition to the information disclosed in this Agreement, the Transferor shall represent and covenant to the Transferee under terms and conditions stipulated in Exhibit IV, which also constitute the base for the Transferee to accept such shares for transfer.

 

5.2

The Transferor covenants that the Transferee’s after-tax profits as audited by US Auditors in 2007 shall be no less than RMB3,800,000.  If DIT Industry’s after-tax profits are no less than RMB3,800,000, the Transferee shall pay RMB 4,140,000 to the shareholders of DIT Industry or its designees and release 41,872 shares of the pledged shares to the Transferor.  The Transferor covenants that the Transferee’s after-tax profits in 2008 as audited by US Auditors shall be no less than RMB 4,500,000.  If DIT Industry’s after-tax profits are no less than RMB4,500,000, the Transferee shall pay RMB 4,140,000 to the shareholders of DIT Industry or its designees and release 41,872 shares of the pledge shares to the Transferor.  The Transferor covenants that the Transferee’s after-tax profits in 2009 as audited by US Auditors shall be no less than RMB 6,400,000.  If DIT Industry’s after-tax profits are no less than RMB 6,400,000, the Transferee shall pay RMB 2,760,000 to the shareholders of DIT Industry or its designees and release the 27,914 shares of the pledge shares to the Transferor.
 

 

Article 6  Representations, Warranties and Covenants of the Transferee and Party C

 

6.1

The Transferee covenants to keep the organization structure of DIT Industry after the Share Transfer, expand its brand influence, fully support business development of DIT Industry.  The Transferee shall also provide financial support as required by business.

 

6.2

The Transferee undertakes that existing employees of DIT Industry shall remain employed given that they are willing to stay and their stay will not impede development of companies after Share Transfer; arrangement of senior management and technical staff and the operation rights and benefits of such persons shall be governed by separate agreements to be entered after the Share Transfer. In addition, the Transferee covenants that benefits of such persons shall not be lower than their previous benefits.

 

6.3

The Transferee shall provide appropriate operation funds to DIT Industry in order to support the Transferor to realize profits after tax for 2007, 2008 and 2009, dates and amounts of providing such funds shall be otherwise stipulated.

 

6.4

Party C shall file relevant reports with the U.S. Securities and Exchange Committee (“SEC”) according to the applicable laws and issue shares to the Transferor under Article 3.2.1(2) hereof after the execution of this Agreement.

 

5

 

 

Article 7 Governing Law

 

This Agreement shall be governed and construed by rules and laws of Hong Kong.

 

 

Article 8  Settlement of Disputes and Agent of  Receiving Legal Procedure Documents

 

8.1

Any dispute arising out of or relating to this Agreement shall be settled by friendly negotiation and discussion. If no agreement is reached through friendly negotiation and discussion, such dispute shall be finally arbitrated by Hong Kong International Arbitration Center (HKIAC) in accordance with HKIAC Arbitration Rules then in effect. Unless otherwise provided in the arbitration rules of HKIAC then in effect, the arbitration shall be the sole and exclusive method and procedure of any dispute arising out of or relating to this Agreement.

 

8.2

The Parties to this Agreement agree that unless not permitted by the applicable laws and rules, the arbitration terms hereto shall be interpreted as and constitute the currently effective arbitration agreement in writing with legal effect, and shall be granted with such effect.  The Parties to this Agreement hereby expressly waive any right of possibly requested local administrative, judicial or alternative dispute settlement methods, as the conditions of any settlement procedure which arising our of this Agreement.

 

8.3

The Parties to this Agreement expressly represent that the award made according to Article 8 hereof shall be final award binding upon the Parties.  In addition, the Parties to this Agreement hereby waive the right to appeal the award made according to Article 8 hereof.  The Article 8 shall constitute the most comprehensive exclusive agreement to the extent permitted by the applicable laws.

 

8.4

(1)

The Transferee irrevocably entrusts BOYU ENTERPRISE CONSULTING CO., LIMITED, whose address is Unit B1, 9/F, Loyong Court Commercial Building, 212-220 Lockhart Road, Wanchai, Hong Kong (“Agent”), to receive legal procedure documents and to be on behalf of the Transferee to receive claims arising out of or relevant to the Agreement or the legal procedures in Hong Kong (including but not limited to, claims for reimbursement, summons, arbitration application and arbitration award) (“Legal Procedure Documents”).

 

(2)

Transferee undertakes to consecutively entrust the Agent as the agent of receiving Legal Procedure Documents, in order to on behalf of the Transferee receive Legal Procedure Documents in Hong Kong and immediately notify the Transferor in writing if the Agent or its address is modified.

 

6

 

 

(3)

The Transferee agrees and confirms that Legal Procedure Documents which have been sent to its Agent shall be deemed as having been sent to any Transferee.

 

 

Article 9  Liabilities for Breach of Contract

 

9.1

If any statement or warrants made by any Party in this Agreement is untrue or false, it shall be deemed as breach of contract by the Party.

 

9.2

Any Party to this Agreement changes minds on purpose and cause the failure of the share transfer, it shall be deemed as breach of contract by the Party.

 

9.3

The breaching party shall, in addition to performance of other obligations under this Agreement, compensate the observant party all losses, damages, expenses suffered by the observant party due to breach of contract caused by breaching party.

 

9.4

If the Transferor changes minds on purpose and cause that the shares can not be transferred to the Transferee or the shares is forfeited after transfer, the Transferee shall have the right to terminate the Agreement, and the Transferor shall return the share transfer price or the shares and assume liabilities under Article 9.3 of this Agreement.

 

 

Article 10  Force Majeure and Change of Circumstances

 

10.1  

If any Party to this Agreement can not perform any part or all of the terms hereto directly or indirectly because of events such as fire, flood, earthquake or other unforeseeable, unavoidable and/or uncontrollable events, the Party shall be exempted from liabilities to the extent as affected by force majeure.

 

10.2  

If any Party or Parties lose(s) its/their interests under this Agreement because of legislation, or administration order or specific administration act of government, any Party shall have the right to terminate this Agreement and to restore to the conditions before the execution of this Agreement.

 

10.3  

Any Party affected by force majeure shall deliver the other Party the written notice regarding the occurrence of force majeure within 12 days after the occurrence of the force majeure event.

 

10.4  

After the occurrence of force majeure event, the Parties to this Agreement shall immediately consultant and decide whether to delay the performance of this Agreement to a day in the future agreed by the Parties or to terminate this Agreement.

 

10.5  

If any Party delays or unable to perform all or part of the terms of this Agreement for more than 30 days as a result of force majeure, the other Party shall have the right to rescind this Agreement, and the Parties shall take all necessary actions to restore the rights and obligations of all Parties to their respective original positions.

 

7

 

 

Article 11  Miscellaneous

 

11.1

This Agreement and its involved relevant documents constitute the full understanding of the Parties regarding the share transfer, and replace any previous intention, expression and understanding of the Parties.

 

11.2

If any term of this Agreement is regarded as illegal, invalid or unenforceable at any time, the validity, effectiveness and enforceability of other terms of this Agreement shall not affected or impaired in any way and shall remain the full validity.

 

11.3

This Agreement shall bind the Parties and their respective successors and assignees. The interests of this Agreement shall be assigned to the Parties hereto and their respective successors and assignees. Without the permission of the Parties in writing, any Party shall not amend, modify or revise this Agreement.

 

11.4

This Agreement shall be effective upon signing.

 

11.5

Without the permission of the Parties in writing (the relevant permission shall not be withheld without reasonable reasons), the Parties hereto shall not transfer any rights or obligations under this Agreement.

 

11.6

The Parties agree to bear all the cost and expense in respect of the negotiation, preparation, execution and performance of the Agreement and the taxes arising from the transfer of Shares for Transfer.  The stamp tax and all other tax and expenses arising out of the transfer of Shares for Transfer (including but not limited to, arising out of  in China or in any other areas), shall be borne and paid by the Transferor.

 

11.7

Unless provided and required by laws, regulations, order or judgments by the competent authorities or courts (including, but not limited to, applicable regulation of security exchanges), without the previous permission of the other Party in writing (the relevant permission shall not be withheld without reasonable reasons), any Party shall not make or distribute any related press statement or announcement.

 

11.8

Without the prior permission of the other Party in writing, any Party shall not disclose the Agreement or any content or material in connection with any transaction of this Agreement, excluding the following disclosure:

 

(1)

the disclosure is made according to the provisions of applicable laws, regulations and rules (including, but not limited to,  regulations of security exchanges) or requirements of relevant government authorities or supervision authorities, or court orders;

 

(2)

the disclosure is made to DIT Industry, or its higher competent authorities or approval and examination authorities, or to contacted bank or professional consultant of the disclosing Party;

 

8

 

 

(3)

the disclosure is made by the Transferor to the company of its company group or senior management thereof.

 

11.9

If any term of this Agreement is or becomes illegal, invalid or unenforceable at any time in any respect, other terms of this Agreement shall not be affected or impaired.

 

11.10

Any notice required to be sent under this Agreement shall be sent in writing. The notice shall be delivered to the following address or fax number or other address or fax number that the recipient designates according to this Agreement:

 

(1)

The Transferor:

LI Junhua

Address:

  Unit B1, 9/F., Loyong Court Commercial Building, 212-220 Lockhart Road, Wanchai, Hong Kong

Telephone:     (852) 2116-1199

Fax:

  (852) 2116-1199

 

(2)

The Transferee:    CHINA SAFETECH HOLDINGS LIMITED

Address:Floor 13, Press Plaza, Shennan Avenue Special Zone, Futian District, Shenzhen

Telephone:      (86-755) 8351 0888

Fax:

  (86-755) 8351 0815

 

(3)

Party C:

CHINA SECURITY & SURVEILLANCE TECHNOLOGY, INC.

Address:Floor 13, Press Plaza, Shennan Avenue Special Zone, Futian District, Shenzhen

Telephone:      (86-755) 8351 0888

Fax:

  (86-755) 8351 0815

 

11.11

Any notice can be sent by mail with postage pre-paid, personal delivery, courier with good reputation or by facsimile, and shall be deemed as delivered at the following time:

 

(1)

two days (seven days if sending by airmail with postage prepaid) after post (the date of postmark is the posting date) for those sent by mail with postage prepaid;

 

(2)

the next business day for those sent by fax;

 

(3)

the receiving time for those sent by courier or personal delivery.

 

9

 

 

Any notice to the Transferee, when properly delivered to any Transferee, shall be regarded as delivered to the other Transferee.

 

11.12

This Agreement shall be written in Chinese in three copies with each Party holding one copy.

 
 

10

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties on the date first above written and the Parties confirm that the Parties have carefully reviewed and fully understand all the provisions of the Agreement.

 

	

The Transferor

LI Junhua

	 	 
	
  
  Signature:/s/ LI Junhua

	 	 
	
  
  Place of Signature:Shenzhen

	
  
   

	 

 

 

Witness:PENG Yaoguang

 

The Transferee

 

	
  
  TU Guoshen for and on behalf of

CHINA SAFETECH HOLDINGS  

	
   	 
	
  
  LIMITED       

	 	 
	
  
  Signature:  /s/ Tu Guoshen

Place of Signature:Shenzhen

	
   	 
	
  
   

  
   

Witness:LUO Ganqi

 

 

Party C

To execute, chop and deliver

TU Guoshen for and on behalf of

CHINA SECURITY & SURVEILLANCE TECHNOLOGY,  INC.

	
   	 
	 	 	 
	
  
  Place of Signature:Shenzhen

 

 

Witness:LUO Ganqi

	
   	 

 
11

 

 

Exhibit I

Information of DIT Industry

 

 

Name in Chinese

:迪特实业(香港)有限公司

 

Name in English

:DIT INDUSTRY (HK) LIMITED

 

Place of Registration

:Hong Kong

 

Registered Address

:Unit 503, 5/FL., Silvercord Tower 2, 30 Canton Road, TST, Kowloon, Hong Kong

 

Date of Registration and Establishment:August 17, 2005

 

Company Form

:Limited Liability Company

 

Registered No.

:990410

 

Director

:LI Junhua

 

Company Secretary

:JPS CONSULTING LIMITED

 

Shares

: Authorized: HKD10,000, divided into 10,000 shares with par value of HKD1.00 per share

Issued and fully paid:HKD10,000, divided into 10,000 share with par value of HKD1.00 per share

 

12

 

Exhibit II

Part A

Information of Share for Transfer

	 	 	 	 	Percent of
	Company	Registered Shareholder	Quantity of Common
    Shares	Face Value Per Share	issued Shares
	 	 	 	 	 
	 	 	 	 	 
	DIT Industry 	LI Junhua	10,000	HKD 1 yuan	100%

 

Part B

 
Information of the Recipient of Share for Transfer

 

	The
    Transferee	
    Amount of Share to Be Transferred
	 	 
	
    CHINA SAFETECH HOLDINGS LIMITED	10,000

13

 

 

Exhibit III

Representations and Warranties

 

1.

DIT Industry is a company legally established and validly existing under the laws of their respective places of establishment.

 

2.

DIT Industry has been authorized and qualified to conduct business within the jurisdiction of their existing businesses.

 

3.

The operation businesses and their operation of DIT Industry have been in compliance with the relevant laws in all material respects.

 

4.

Accounts of DIT Industry have been properly recorded in accordance with the account categories and the generally accepted account principles, standards and laws of their establishment place, which have truly represented and reflected the status of DIT Industry for the fiscal year or the period ending on the date of the relevant book account.

 

5.

(a)

Exhibit I has listed all the directors and company secretaries of DIT Industry before the completion of the transaction as of the Closing Date.

 

(b)

There has not been any shareholder resolution adopted to liquidate DIT Industry before the completion of the transaction as of the Closing Date.

 

6.

The register of shareholders of DIT Industry has truly and correctly recorded the date and the changes of shareholders from the establishment to the completion date and before the completion of the transition.

 

7.

Any share warrant has not been sent or given to any person in respect of any share of DIT Industry by the Transferor and DIT Industry.

 

8.

Articles of associations of DIT Industry have been delivered to Transferee, which shall be true and complete.

 

9.

If any thing conflicts or is inconsistent with foregoing warrants before the Closing Date, the Transferee agrees to immediately notify the Transferor in writing.

 

10.

DIT Industry has fully paid the issued shares.

 

11.

The Transferor shall be the solely and legal beneficial owner of the shares for transfer.  The shares for transfer shall not be imposed of any mortgage, lien or property encumbrances.

 

12.

The Transferor shall have the authority to execute the Agreement and can sell any shares for transfer without any third party’s permission. The Agreement shall be legally binding on the Transferor.

 

14

 

 

13.

Except for the ongoing litigations disclosed to the Transferee, DIT Industry has not currently been involved in any material litigation or a party to any litigation and/or any unexecuted verdict, and has not been subject to any ongoing material injunction or order.

 

14.

Up to the Closing Date, all or part of the assets or businesses of DIT Industry have not been entrusted to take over by any person, and there are not any orders or applications before court or adopted solutions to close down DIT Industry.

 

15.

Except for debts (including the outstanding tax fees)disclosed by the Transferor, the Agreement or accounts of DIT Industry, DIT Industry shall not have any other debts and/or outstanding tax fees as of the Closing Date, which shall be assumed by the Transferor (if any).

 

16.

Except for the information disclosed by the Transferor, the Agreement or accounts of DIT Industry, DIT Industry shall not have other unperformed material contracts.

 

17.

The net assets in 2007 audited by the US auditor and verified by a third party appraiser shall exceed RMB 3,930,000.

 

18.

The shareholders and the meeting of board of directors of DIT Industry according to the Company Law, have adopted a resolution to approve the Share Transfer under the Agreement.

 

19.

The existing and outstanding legal liabilities of DIT Industry before the Closing Date, such as labor compensation disputes, bad debts and losses of bad assets, debt disputes and/or risks of contingent debts shall be borne by the Transferor. For the losses which can be calculated into money, if it causes the net assets to be less than RMB3,930,000, the Transferor shall be obliged to make it up to RMB3,930,000.

 

20.

The Transferor shall be fully responsible for all civil and criminal liabilities of DIT Industry before and on the Closing Date.

 

21.

The Transferor shall not make any adverse change to the operations of DIT Industry on purpose (excluding the normal operation and force majeure) after the execution of this Agreement.  The Transferor shall immediately inform the Transferee if there is anything causing the material change to the operation of DIT Industry.

 

22.

TONG Xiaosheng undertakes to continue to act as executive officer of DIT Industry for five years and maintain the stability of DIT Industry.

 

23.

TONG Xiaosheng undertakes that he and his direct relatives (parents, spouse or children) shall not engage in security and protection industry or operation in similar industry in five years.

 

15

 

Exhibit V

Provisions for the Closing

1.

Responsibilities of the Transferee

 

(i)

The Transferee shall pay the Balance of the Total Transfer Price in accordance with the stipulations by Article 3.2.2 and submit the proof document of payment to the Transferor.

 

(ii)

The Transferee shall provide a consent letter executed by two persons to be the directors of DIT Industry.

 

2.

Responsibilities of the Transferor

 

After the Transferor confirms that its bank account specified by Article 3.2.2 hereof has received all the payment by the Transferee under Article 3.2.1, the Transferor shall deliver and arrange the following to the Transferee:

 

(i)

The transfer documents (subject to official execution by the registered shareholders of DIT Industry) and instruments for sale along with shares in connection with the Shares for Transfer;
 

 

(ii)

All account books, registration certificates, business registration certificates, articles of association, meeting records, statutory books, application forms, seals, offset printing, steel seals and all documents relevant to the company businesses (if any) of DIT Industry controlled by the Transferor;

 

(iii)

The Transferor shall cause DIT Industry to hold a board meeting to approve (1) the transfer of the Shares for Transfer relevant to DIT Industry, and registration after payment of appropriate stamp taxes; (2) appointment of the persons nominated by the Transferee according to law and who are qualified to be directors of company under laws as the two new directors of DIT Industry under the written instruction of the Transferee; and (3) suspension and change of the operation of the bank accounts of DIT Industry, and appointment of the person nominated by the Transferee as the authorized person to execute the bank accounts of DIT Industry under the written instruction of the Transferee at least before two business days;

 

16

 

 

(iv)

The original copy of records of the board meeting held for the issue of the above (iii) executed and confirmed by the directors of DIT Industry;

 

(v)

Legal opinion reports issued by Hong Kong law firm.

 
 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]