FX Prime Brokerage Agreement


 Exhibit 10.7 
 FX PRIME BROKERAGE AGREEMENT 
 This FX PRIME BROKERAGE AGREEMENT (“Agreement”), dated as of
November 29, 2005 by and between UBS AG (“UBS”) and WMT III Series G/J Trading Vehicle LLC (“Customer”), a Delaware limited liability company organized in series (“Company”), and
sets forth certain terms and conditions relating to the establishment of a facility (the “Facility”) through which the Customer, acting by and through Graham Capital Management L.P. a limited partnership organized under
the laws of the State of Delaware (“Trading Advisor”), except as otherwise indicated, who is acting as the agent of said Customer (and not in the Trading Advisor’s individual capacity) may trade foreign exchange
transactions with various Dealers. 
 Scope of Agreement. The parties explicitly acknowledge and agree that whilst this Agreement
contains provisions governing a wide range of foreign exchange transactions, Transactions and Authorized transactions (subject to any further limitations specified in any Dealer notice/authorization) shall be limited to the following types of
transactions only: 
 (i) FX Transactions; 
 (ii) Currency Option Transactions 
 (iii) Exotic Options 
 UBS may, at its absolute discretion, give notice to the Customer of any change, deletion or addition to this provision. 
  

	1.	Definitions Capitalized terms used herein but not defined herein shall have the meanings ascribed to them in the CP ISDA Master Agreement. 

 “Authorized Transactions” means foreign exchange transactions of a type that UBS has authorized the Customer to enter into with
Dealer. 
 “CP ISDA Master Agreement” means the ISDA Master Agreement dated as of November 29, 2005 by and
between Customer and UBS and the Credit Support Annex to the CP ISDA Master Agreement. 
 “Currency Option
Transaction” shall have the meaning ascribed in the 1998 FX and Currency Option Definitions, as amended from time to time (as published by the International Swaps and Derivatives Association, Inc., the Emerging Markets Traders
Association (“EMTA”) and The Foreign Exchange Committee) (“FX Definitions”) and for the avoidance of doubt, shall not include an option that would otherwise be deemed to be an Exotic Option. 
 “Dealer” means those banks and dealers authorized by UBS, pursuant to a Master FX Give-Up Agreement, with whom Customer can enter
into Authorized Transactions. Company shall be notified of such Dealers by UBS in writing from time to time, specifying the type of Authorized Transactions and limits therefore. 
 “Deliverable Currency Option Transaction” shall have the meaning ascribed in the FX Definitions. 
 “Deliverable FX Transaction” shall have the meaning ascribed in the FX Definitions. 
 “Delta” means, in respect of each Currency Option Transaction, the amount calculated by UBS to be the change in option price for a
change in the underlying price (as determined by UBS) for such Currency Option Transaction. 
 “Delta Equivalent
Position” means, for each Currency Option Transaction, the Delta multiplied by the U.S. dollar equivalent (as calculated by UBS in a commercially reasonable manner) of each currency to be received by UBS if such Currency Option
Transaction were exercised, as calculated by UBS. 
 “Exotics Net Open Position” shall be calculated in the manner
specified in Attachment 1. 
 “Exotic Notional Limit” means the maximum notional quantity (calculated in the manner
specified in Attachment 1) of Exotic Options that Customer can trade with each Dealer on a trade date, such limit to be advised to Customer by UBS from time to time. 
 “Exotic Options” means barrier options (and such other non-vanilla options as approved by UBS from time to time). 
 “FX Transaction” shall have the meaning ascribed in the FX Definitions. 
 “Master FX Give-Up Agreement” means an agreement by and between UBS and each of the various Dealers. 
 “Net Currency Position” means, for any value date, with respect to each currency of a FX Transaction, the net U.S. dollar equivalent (as calculated by UBS in a commercially reasonable manner based on prevailing rates
at the time) of the amount of such currency owed to UBS by the Customer as calculated by UBS in good faith and in a commercially reasonable manner. 
 “Net Open Position” means for the aggregate amount owed to UBS by Customer, as calculated by UBS in the manner specified in Attachment 1 hereto (which may be modified from time to time by UBS in its reasonable
discretion). 
  

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 “Net Open Position Limit” means, the maximum Net Open Position and Exotic Net
Open Position, as an aggregate across all Tiers, that a Customer is authorized to have outstanding at any time with UBS, as determined by UBS and advised to the Customer (such amount may be amended from time to time by UBS upon reasonable notice to
the Customer). 
 “Netted Option” means, a Currency Option Transaction sold by Prime Broker and owned by the Customer
which may be discharged and terminated together with a Currency Option Transaction sold by the Customer and owned by Prime Broker upon satisfying the following criteria: 
 (i) each Currency Option Transaction being with respect to the same Put Currency and Call Currency; 
 (ii)
each having the same Expiration Date and Expiration Time; 
 (iii) each being of the same style, i.e. either both being American Style Options
or both being European Style Options; 
 (iv) each having the same Strike Price; and 
 (v) neither of which shall have been exercised by delivery of a Notice of Exercise (as defined below); and 
 (vi) the case of a partial discharge and termination (i.e., where the relevant Currency Option Transactions are for different amounts of the Currency
Pair), only the portion discharged and terminated shall be considered a Netted Option. 
 “Non-Deliverable Currency Option
Transaction” shall have the meaning ascribed in the FX Definitions. 
 “Non-Deliverable FX Transaction”
shall have the meaning ascribed in the FX Definitions. 
 “Notice of Exercise” means telex, telephonic or other
electronic notification (excluding facsimile transmission), given by the owner of an Option prior to or at the Expiration Time on the Expiration Date as agreed to at the time the Option is entered into, as evidenced by the Confirmation. 

“Notice of Barrier Event” means telex, telephone or other electronic notification (excluding facsimile transmission) given by
the Dealer as the determination agent of an Exotic Option immediately following a barrier event as agreed to at the time the Exotic Option is entered into, as evidenced in a Confirmation. 
 “Options” includes Currency Option Transactions (Deliverable and Non-Deliverable) and Exotic Options. 
 “Risk Add-On” means, for Exotic Options, such amount as determined by UBS in a commercially reasonable manner taking each Currency
Pair and determining the close-out risk on such trade, in accordance with UBS’s internal model (based on the underlying volatility of Currency Pairs as determined by UBS, having aggregated offsetting transactions on a value date basis and
across value dates where possible, in UBS’s sole and absolute discretion). 
 “Tier I Currencies” means those
currencies determined by UBS, in its sole discretion, to be of low volatility (such currencies to be advised to Customer by UBS from time to time and subject to change by UBS at any time). 
 “Tier II Currencies” means those currencies determined by UBS, in its sole discretion, to be of medium volatility (such currencies
to be advised to Customer by UBS from time to time and subject to change by UBS at any time). 
 “Tier III Currencies”
means those currencies determined by UBS, in its sole discretion, to be of high volatility (such currencies to be advised to Customer by UBS from time to time and subject to change by UBS at any time). 
 “Tiers” means Tier I Currencies, Tier II Currencies and Tier III Currencies collectively. 
 “Transactions” means Deliverable and Non-Deliverable FX Transactions, Deliverable and Non-Deliverable Currency Options
Transactions and Exotic Options. 
  

	2.	The Facility 

  

	(a)	UBS may (in its sole discretion) establish and maintain dealing lines for use by Trading Advisor for and on behalf of Customer in trading Transactions in the name of UBS with one or
more Dealers. UBS will provide each Dealer with such authorization and other agreements and instruments as it deems appropriate in order to permit Trading Advisors for and on behalf of Customer to execute Authorized Transactions with the Dealers in
the name of UBS in accordance with the terms hereof. 

  

	(b)	Customer acknowledges and agrees that the establishment and maintenance of dealing lines by UBS under the Facility is subject to UBS’s sole discretion, including but not
limited to, discretion regarding credit, documentation, available currencies, size or tenor of lines (which may vary according to currency) and UBS’s line usage for business outside of the Facility. Company for and on behalf of Customer further
acknowledges and agrees that such dealing lines may be changed by UBS in its sole discretion at any time without prior notice; provided that such change in dealing lines will not affect any Transactions entered into prior to such change. UBS is not
and shall not be responsible for and does not warrant the sufficiency or availability of the dealing lines for any purpose. In the event that UBS does not establish or maintain adequate dealing lines for the Facility, Customer’s only remedy
shall be to terminate this Agreement. Solely with respect, to sufficiency or availability of dealing lines, Customer waives all other claims and remedies against UBS. 

  

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	(c)	UBS will establish trading limits for each Dealer, and advise Trading Advisor for and on behalf of Customer of those limits. Customer agrees to limit the Authorized Transactions
with each Dealer in such a manner as UBS may from time to time specify. Customer acknowledges and agrees that Transactions exceeding such limits shall not be binding on UBS unless and until UBS accepts such Transactions. UBS maintains the right to
refuse to accept any Transactions which exceed the Net Open Position Limit or Exotic Notional Limit and Customer will indemnify UBS for any claims by Dealer as a result of UBS’s exercise of its rights under this clause 2(c), except to the
extent that such claim results from the gross negligence, willful misconduct or fraud of UBS. In the event that UBS accepts a Transaction which exceeded the Net Open Position Limit or the Exotic Notional Limit, Company for and on behalf of Customer
agrees that UBS may, in its sole and absolute discretion and with two (2) hour prior notice, liquidate all or part of the corresponding Customer Contract (as defined below) for the account of the Customer, in order to reduce Customer’s Net
Open Position to below the agreed Net Open Position Limit or reduce Customer’s utilization of Exotic Notional Limit. 

  

	(d)	Customer agrees to promptly pay UBS such fees set forth in the attached Fee Schedule (as such Schedule may be amended from time to time by UBS and Customer).


  

	3.	Transaction Confirmations 

  

	(a)	When Customer enters into an Authorized Transaction with a Dealer in the name of UBS under the Master FX Give-up Agreement, Customer and UBS will be deemed to have automatically
entered into a Transaction (the “Customer Contract”) on identical terms, except that UBS’s position as buyer or seller of the Transaction will be the reverse of its position with Dealer. The foregoing is subject to
UBS’s right to refuse to accept a trade under the terms of this Agreement and any Master FX Give-Up Agreement. 

  

	(b)	The Customer Contracts shall be governed by the CP ISDA Master Agreement. 

  

	(c)	Throughout each New York business day, Trading Advisor, acting on behalf of Customer, will give electronic, telephone or other acceptable notice to UBS of all Authorized
Transactions entered into that day in the name of UBS or that no Authorized Transactions occurred on that day. 

  

	(d)	Except as otherwise provided in clause 3(f), once an Authorized Transaction with a Dealer is entered into in the name of UBS and accepted by UBS, Customer shall have no right to
amend, cancel or otherwise affect or interfere with any such Transactions, which shall be the sole responsibility of UBS. 

  

	(e)	Customer acknowledges and agrees that Dealer will be the calculation agent/determination agent for Exotic Options and any dispute that Customer may have as to the occurrence of a
barrier event (e.g. knock-out, kick-in, binary, however described,) shall be solely between Customer and Dealer and Customer acknowledges and agrees that Prime Broker shall have no role therein and shall be entitled to act, and Customer shall not
prevent in any way Prime Broker from taking any action, upon the Notice of Barrier Event as if no dispute existed. Solely for the purpose of calculation agent/determination agent as defined in a Confirmation for an Exotic Option transacted between
Customer and Dealer and given-up in accordance with this Agreement and notwithstanding anything to the contrary stated in such Confirmation, the calculation agent/determination agent shall be Dealer. 

  

	(f)	Notwithstanding any terms of a Confirmation or Master Agreement that may be to the contrary, if Customer has entered into a transaction on behalf of UBS in which UBS is the buyer of
an Option, such Option may be exercised by delivery of a Notice of Exercise by Customer to Dealer which executed such Option which shall constitute exercise by UBS. If Customer has entered into a transaction on behalf of UBS in which UBS is the
seller of an Option, such Option will only be exercised by the simultaneous delivery of a Notice of Exercise by Dealer which executed such Option to each of Customer and UBS. 

  

	(g)	For the purposes of Non-Deliverable FX Transactions and Non-Deliverable Currency Options Transactions, the calculation agent for the transaction between UBS and Customer shall be as
specified in the relevant Confirmation. 

  

	4.	Representations 

 Each party represents to
the other party (which representations will be deemed to be repeated by each party on each date on which a transaction is entered into) that: 
  

	 	(a)	It is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant under such laws, in good standing;


  

	 	(b)	 It has the power to execute this Agreement and any other documentation relating to this Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that is required by this Agreement to deliver and perform its obligations under this Agreement and has taken all necessary action to authorize such execution, delivery and performance; 



  

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	 	(c)	Such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court
or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets; 

  

	 	(d)	All governmental and other consents that are required to have been obtained by it with respect to this Agreement have been obtained and are in full force and effect and all
conditions of any such consents have been complied with; and 

  

	 	(e)	Its obligations under this Agreement constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy,
reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in
equity or at law)). 

  

	5.	Indemnification 

 Customer agrees to
indemnify, hold harmless and defend UBS, its affiliates and their respective officers, directors, employees, agents, successors and assigns, from and against any and all claims, damages, costs, losses and liabilities (including reasonable
attorneys’ fees), which may at any time be asserted against or incurred by UBS based upon, arising from or in connection with this Agreement, the Facility and any action or inaction on the part of Customer under this Agreement, including but
not limited to, (i) any material breach of any representation, warranty, covenant or agreement of Customer contained in this Agreement; (ii) any failure of Customer to comply with applicable law; (iii) Customer’s gross negligence
or willful misconduct; (iv) any claim by a Dealer in respect of an Authorized Transaction; and (v) any indemnification which UBS has given to a Dealer; except to the extent that the claim, damages, costs, losses and liabilities are due to
the gross negligence, wilful misconduct or fraud by UBS. 
  

	6.	General Provisions 

  

	(a)	This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment or performance of any liabilities is rescinded or must otherwise be
returned or unwound by UBS upon insolvency, bankruptcy, or reorganization of Customer, or otherwise, all as though such payment had not been made. 

  

	(b)	This Agreement may be terminated by either party without cause, upon thirty (30) days prior written notice; provide that UBS may terminate this Agreement with respect to any
Trading Advisor without prior notice (a “Termination Notice”). Termination will not affect any outstanding rights and obligations under this Agreement concerning any Transactions entered into prior to a Termination Notice, and such
rights and obligations shall continue to be governed by this Agreement and the particular terms agreed between UBS and Customer in relation to such Transactions until all obligations have been fully performed. 

  

	(c)	No indulgence or concession granted by either party and no omission or delay on the part of a party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

  

	(d)	The provisions of the FX Definitions are hereby incorporated in their entirety and shall apply to all Transactions entered into or deemed to be entered into between (i) UBS and
Dealers and (ii) UBS and Customer, whether or not so stated in a confirmation of any such Transaction. Authorized Transactions and Customer Contracts are Transactions under the relevant CP ISDA Master Agreements and any trade confirmation is a
Confirmation under such CP ISDA Master Agreements. 

  

	(e)	(i) Except as permitted in writing by Customer, UBS shall treat as confidential any non-public information about Company that it obtains from Company pursuant to this Agreement or
otherwise about Customer’s trades, investments or financial results; provided, that UBS may disclose the information (a) that it has developed independently of Customer, (b) where required by applicable law or regulation or
(c) (1) pursuant to any subpoena, civil investigative demand or similar demand or request of any court, regulatory authority, arbitrator or tribunal, or (2) for evidentiary purposes in any relevant action, proceeding or arbitration to
which UBS or any of its officer, directors or shareholders or any of its affiliates or officers, directors, or shareholders of any such affiliate is a party; provided, however, that in the case of any disclosure pursuant to this sentence, UBS will
give Customer at least five (5) day prior written notice of the information to be disclosed to the extent that such notice is reasonable, practical and permissible, and will seek to obtain confidential treatment of such information by the
person to whom it is disclosed. Notwithstanding the foregoing, UBS will be permitted to disclose the Confidential Information or any portion thereof upon the request of any government or regulatory body having or claiming to have authority to
regulate or oversee any aspect of UBS’s business or that of its affiliates, but UBS agrees to advise them of the confidential nature of such information and request confidential treatment of such information and will give Customer at least five
(5) day prior written notice of the information to be disclosed to the extent that such notice is reasonable, practical and permissible. This section is not intended to prevent UBS from disclosing its own investment performance or financial
results where that information is based in part on corresponding information about Customer, and the recipient of the disclosure would not reasonably be able to ascertain Customer’s investment performance or financial results from the
disclosure 

  

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 (ii) Customer hereby consents to UBS effecting such disclosure to third party dealers of Customer’s
identity and the identity of its Trading Advisor, as well as information concerning the types of Transactions UBS will agree to transact with Customer and any restrictions to such Transactions as UBS may deem appropriate, to enable UBS to transfer
Customer’s records and information, to process and execute Customer’s instructions. 
  

	(f)	In the event Customer is trading Non-Deliverable FX Transactions, Non-Deliverable Currency Option Transactions and/or Exotic Options, Customer consents to the use of confirms
substantially in the form of the confirmation template for each such transaction as published by The Foreign Exchange Committee (“FXC”), the Financial Markets Lawyers Group or EMTA, as appropriate. Customer also agrees,
hereby, to abide by such best practices as may be published by the FXC from time to time, and such recommended market practice as may be published by EMTA from time to time. 

  

	(g)	In the event any one or more of the provisions contained in this Agreement is held invalid, illegal, or unenforceable in any respect under the law of any jurisdiction, the validity,
legality, and enforceability of the remaining provisions under the law of such jurisdiction, and the validity, legality, and enforceability of such and any other provisions under the law of any other jurisdiction, shall not in any way be affected or
impaired thereby. 

  

	(h)	No amendment, modification, or waiver of this Agreement will be effective unless in writing executed by each of the parties. 

  

	(i)	The parties agree that each party may electronically record all telephonic conversations between them relating to the subject matter of this Agreement and that any such tape
recordings may be submitted in evidence in any suit, action, or other proceeding relating to this Agreement (“Proceedings”). 

  

	7.	Notices 

 Except as otherwise provided in
this Agreement, all notices, requests and other communications hereunder shall be delivered in accordance with the notice provisions in the CP ISDA Master Agreement. 
  

	8.	Governing Law and Jurisdiction 

  

	(a)	This Agreement and the rights and obligations of UBS and of Customer hereunder shall be governed by, and construed in accordance with the laws of the State of New York (without
reference to choice of law doctrine). 

  

	(b)	With respect to any suit, action or proceedings relating to this Agreement, each party irrevocably (i) submits to the non-exclusive jurisdiction of the State and Federal courts
located in New York City, Borough of Manhattan and (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an
inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have jurisdiction over such party. Nothing in this Agreement precludes either party from bringing Proceedings in any other
jurisdiction nor will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 

  

	(c)	Waiver of Jury Trial - Each party hereby irrevocably waives any and all right to trial by jury in any suit, action or Proceeding arising our of or relating to this Agreement or any
transaction and acknowledges that this waiver is a material inducement to the other party’s entering into this Agreement. 

  

	10.	Trading Advisor’s Authority. 

 Pursuant
to the terms of a separate written agreement titled Trading Advisory Agreement dated November 30, 2005, the Trading Advisor is duly authorized to take investment actions on Customer’s behalf, and unless UBS has received notice of
termination of such authority, UBS shall be entitled to rely upon any and all instructions or notices received from Trading Advisor with respect to the Transactions on behalf of Customer, and UBS shall be under no duty to determine whether the
giving of any notice or instruction, or the entry into any Transaction (including without limitation its nature and its amount), on behalf of Customer is within the authority of such Trading Advisor unless UBS has actual knowledge to the contrary.

  

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 IN WITNESS WHEREOF, the UBS and Customer have caused this Agreement to be duly executed by their respective authorized
officers as of the date first written above. 
  

							
	UBS AG	  	WMT III SERIES G/J TRADING VEHICLE LLC
				
		 		  	By:	 	World Monitor Trust III – Series G,
	By:	 	 /s/ Sandra M. Gutierrez
	  		 	Its Member
	Name:	 	Sandra M. Guttierrez	  		 	
	Title:	 	Director and Counsel	  	By:	 	Preferred Investment Solutions Corp.,
	Date:	 	November 29, 2005	  		 	Its Managing Owner
				
	By:	 	 /s/ Jennifer W. Gabrielson
	  	By:	 	 /s/ Kenneth A. Shewer

	Name:	 	Jennifer W. Gabrielson	  	Name:	 	Kenneth A. Shewer
	Title	 	Director	  	Title:	 	Co-Chief Executive Officer
	Date:	 	November 29, 2005	  	Date:	 	November 29, 2005
			
	And solely with respect to paragraph 3(c) of this Agreement:	  	By:	 	World Monitor Trust III – Series J,
	  		 	Its Member
			
	GRAHAM CAPITAL MANAGEMENT L.P.	  	By:	 	Preferred Investment Solutions Corp.,
		 		  		 	Its Managing Owner
				
	By:	 	 /s/ Paul Sedlack
	  	By:	 	 /s/ Kenneth A. Shewer

	Name:	 	Paul Sedlack	  	Name:	 	Kenneth A. Shewer
	Title	 		  	Title:	 	Co-Chief Executive Officer
	Date:	 		  	Date:	 	November 29, 2005

  

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 SCHEDULE 1 
 FEE SCHEDULE 
 From the Effective Date $8.00 per Million USD equivalent transacted with each Dealer will be charged.
Invoices will be sent to the Customer on a monthly basis. Payment is due 15 days after the end of the relevant month. 
 Payment to be made as agreed between
Customer and UBS. 
 No commission will be charged if Customer trades direct with UBS AG. 
 Effective Date: November 29, 2005. 
  

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 SCHEDULE 2 
 PROCEDURES FOR NOTIFYING TRADES 
  

	1.	Trade details to be communicated via Reuters; 

 UBPB - New
York time-zone, 7:30am-7pm 
 UBPB - Singapore time-zone, 7am-6pm 
 UBPB - Zurich time-zone, 8am-6pm 
  

	2.	If 1 is unavailable, trade details to be communicated via telephone; 

 + 203 719 4066 - New York time-zone, 7:30am-7pm 
 + 01 65 6836 5216 - Singapore time-zone, 7am-6pm

 + 41 1 239 5040 - Zurich time-zone, 8am-6pm 
  

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 Attachment 1 
 1) The Net Open Position shall be calculated by UBS in a commercially reasonable manner by determining the sum of the following: 
 (i) For Transactions involving Tier 1 Currencies, the aggregate of the Net Currency Position for each Tier 1 Currency, after making the following adjustments, to the extent applicable and to the extent feasible at any
time for UBS: 
  

	 	(A)	for each Tier 1 Currency, UBS shall identify Transactions that have the same value date, and: 

  

	 	(I)	for each Tier 1 Currency, UBS shall net (or aggregate, as the case may be) the Net Currency Position for FX Transactions and Delta Equivalent Position for Currency Option
Transactions (after giving effect to the netting provisions of the definition of “Netted Option”) for each value date, and determine the sum of such amounts for all value dates; 

  

	 	(II)	for each Tier 1 Currency, UBS shall determine the U.S. dollar equivalent (calculated by UBS in a commercially reasonable manner) of the amount calculated in clause (i)(A)(I); and


  

	 	(III)	UBS shall calculate the sum of the amounts determined for each Tier 1 Currency pursuant to clause (i)(A)(II). 

  

	 	(B)	for Transactions involving Tier 1 Currencies that do not have the same value date,: 

  

	 	(I)	for each Tier 1 Currency, UBS shall net (or aggregate, as the case may be) the Net Currency Position for FX Transactions and the Delta Equivalent Position for Currency Option
Transactions (after giving effect to the netting provisions of the definition of “Netted Option”) for all value dates for all such Transactions; 

  


	 	(II)	for each Tier 1 Currency, UBS shall determine the U.S. dollar equivalent (calculated by UBS in a commercially reasonable manner) of the amount calculated in clause (i)(B)(I); and


  

	 	(III)	UBS shall calculate the sum of the amounts determined for each Tier 1 Currency pursuant to clause (i)(B)(II). 

 (ii) for Transactions involving Tier 2 Currencies, UBS shall: 
  

	 	(A)	for each Tier 2 Currency, UBS shall determine the sum of: (x) the U.S. dollar equivalent (determined by UBS in a commercially reasonable manner) of the aggregate Net Currency
Position for all FX Transactions involving such Tier 2 Currency and (y) the U.S. dollar equivalent (determined by UBS in a commercially reasonable manner) of the Delta Equivalent Position (after giving effect to the netting provisions of the
definition of “Netted Option”); and 

  

	 	(B)	UBS shall aggregate the amounts calculated in clause (ii)(A). 

 (iii) for Transactions involving Tier 3 Currencies, UBS shall: 
  

	 	(A)	for each Tier 3 Currency, UBS shall determine the sum of: (x) the U.S. dollar equivalent (determined by UBS in a commercially reasonable manner) of the aggregate Net Currency
Position for all FX Transactions involving such Tier 3 Currency and (y) the U.S. dollar equivalent (determined by UBS in a commercially reasonable manner) of the Delta Equivalent Position (after giving effect to the netting provisions of the
definition of “Netted Option”); and 

  

	 	(B)	UBS shall aggregate the amounts calculated in clause (iii)(A). 

 2) Exotics Net Open Position shall be calculated by summing (i) and (ii) below: 
  

	 	(i)	On the trade date of an Exotic Option, the Exotics Net Open Position shall be calculated by UBS in a commercially reasonable manner as follows; UBS shall determine the U.S. dollar
equivalent (determined by UBS in a commercially reasonable manner) of the Delta Equivalent Position (after giving effect to the netting provisions of the definition of “Netted Option”) of each Exotic Option and summing together all such
amounts. 

  

	 	(ii)	On all subsequent days, the Exotics Net Open Position shall be calculated by UBS acting in a commercially reasonable manner, by dividing the Risk Add-On by a percentage amount as
determined by UBS in its sole discretion. 

 For the avoidance of doubt, 2(i) shall only apply on the trade date of an Exotic
Option, after trade date only 2(ii) will apply. 
 3) Maximum notional quantity for Exotic Notional Limit purposes shall be calculated as
below, for each trade date: 
  

	 	(i)	net the notional quantities in respect of those Exotic Options which are identical (requires same currency, expiration date, strike and barrier strike price);


  

	 	(ii)	convert any cross-currency Exotic Option to a US dollar equivalent (determined by UBS in a commercially reasonable manner) notional quantity based upon the then open-market value of
one of such currencies; and 

  

	 	(iii)	aggregate such notional quantities. 

  

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