Document:

Exhibit 4.2

AUTHORIZED
PARTICIPANT AGREEMENT

FOR

AIRSHARESTM  EU CARBON ALLOWANCES FUND

This Authorized Participant Agreement (the “Agreement”),
dated as of                ,
is entered into by and between ALPS Distributor, Inc. (the “Distributor”) and                                        
(the “Authorized Participant”) and is subject to acceptance by [                ]
(the “Transfer Agent”).  The Transfer
Agent serves as the transfer agent for the AirSharesTM  EU Carbon Allowances Fund, a Delaware statutory
trust  (the “Fund” ).  The
Distributor, the Transfer Agent and the Authorized Participant acknowledge and
agree that the Fund and XShares Advisors LLC, a Delaware limited liability company
(the “Sponsor”) shall each be third party beneficiaries of this Agreement, and
shall receive the benefits contemplated by this Agreement, to the extent
specified herein.  The Distributor has
been retained to provide services as principal underwriter of the Fund acting
on an agency basis in connection with the sale and distribution of units of
beneficial interest (sometimes referred to as “Shares”) of the Fund.

SUMMARY

The Fund will engage in the business of investing and
reinvesting its assets as described in the prospectus (the “Prospectus”)
included as part of its registration statement, as amended, on Form S-1 (No.
333-              )
(“Registration Statement”).  References
to the Prospectus are to the then current Prospectus as it may be supplemented
or amended from time to time.  As
provided in the Declaration of Trust and Trust Agreement of the Fund (the “Trust
Agreement”) as currently in effect and as described in the Fund’s Prospectus,
units of beneficial interests of the Fund (the “Shares) may be created or
redeemed by the Sponsor for an Authorized Participant only in aggregations of a
specified number of Shares (referred to therein and herein as a “Basket”).  The number of Shares constituting a Basket is
set forth in the Fund’s Prospectus.  Baskets of Shares may be purchased
only by or through an Authorized Participant that has entered into an
Authorized Participant Agreement with the Distributor.  The Prospectus provides that Baskets
generally will be sold in exchange for a Capital Contribution (as defined in
Article 4 hereof) plus a purchase “Transaction Fee” as described in the
Prospectus, delivered to the Sponsor by the Authorized Participant for its own
account or acting on behalf of another party.

This Agreement is intended to set forth certain
premises and the procedures by which the Authorized Participant may purchase
and/or redeem Baskets of Shares.  The
procedures for processing an order to purchase Shares (each a “Purchase Order”)
and an order to redeem Shares (each a “Redemption Order”) are described in the
Fund’s Prospectus and in Annex I to this Agreement (the “Procedures”).  All Purchase and Redemption Orders must be
made pursuant to the procedures set forth in the Prospectus and Annex I
hereto, as each may be amended by the Fund from time to time.  An
Authorized Participant may not place a Purchase Order before the fifth (5th) Business Day (as defined
below) following execution and delivery to the Distributor of this Agreement
and notification by the Distributor of the Authorized Participant’s
status.  An Authorized Participant may
not cancel a Purchase Order or a Redemption Order after an order is placed by
the Authorized Participant.

Capitalized terms not otherwise defined herein are
used herein as defined in the Prospectus. All references to “cash” shall refer
to US Dollars (“USD”).  To the extent
there is a conflict between any provision of this Agreement and the provisions
of the Trust Agreement, the provisions of the Trust Agreement shall control.

 

The
parties hereto in consideration of the premises and of the mutual

agreements contained herein agree as
follows:

1.  STATUS OF AUTHORIZED PARTICIPANT.

The Authorized Participant hereby represents,
covenants and warrants the following:

(a) The Authorized Participant is a participant of the
Depository Trust Corporation, or DTC (a “DTC Participant”).  If the Authorized Person ceases to be a DTC
Participant, the Authorized Person shall give prompt written notice thereof to
the Distributor, the Fund and the Transfer Agent.  This Agreement shall terminate immediately as
of the date that the Authorized Participant ceased to be a DTC Participant.

(b) Unless the following Section 1(c) is applicable,
the Authorized Participant either (i) is registered as a broker-dealer under
the Securities Exchange Act of 1934, as amended the “1934 Act”), (ii) is qualified
to act as a broker or dealer in the states or other jurisdictions where it
transacts business, and (iii) is a member in good standing of the Financial
Industry Regulatory Authority (the “FINRA”), and the Authorized Participant
agrees that it will maintain such registrations, qualifications, and membership
in good standing and in full force and effect throughout the term of this
Agreement.  The Authorized Participant
agrees to comply with all applicable United States federal laws, the laws of
the states or other jurisdictions concerned, and the rules and regulations
promulgated thereunder and with the Constitution, By-Laws and Conduct Rules of
the FINRA, and that it will not offer or sell Shares of the Fund in any state
or jurisdiction where they may not lawfully be offered and/or sold.

(c) If the Authorized Participant is offering or
selling Shares of the Fund in jurisdictions outside the several states,
territories and possessions of the United States (“U.S.”) and is not otherwise
required to be registered, qualified, or a member of the FINRA as set forth in
Section 1(b), the Authorized Participant nevertheless agrees (i) to observe the
applicable laws of the jurisdiction in which such offer and/or sale is made,
(ii) to comply with the full disclosure requirements of the Securities Act of
1933, as amended (the “1933 Act”) and the regulations promulgated thereunder,
and (iii) to conduct its business in accordance with the spirit of the FINRA
Conduct Rules.

(d) The Authorized Participant represents, covenants
and warrants that it has established and presently maintains an anti-money
laundering program ( “AML Program”) reasonably designed to prevent the
Authorized Participant from being used as a conduit for money laundering or
other illicit purposes or the financing of terrorist activities, and is in
compliance with the AML Program and all anti-money laundering laws, regulations
and rules now or hereafter in effect that are applicable to it, including,
without limitation, the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the
“USA PATRIOT ACT”).

(e) The Authorized Participant understands and
acknowledges that the method by which Baskets of Shares will be created and
traded may raise certain issues under applicable securities laws.  For example, because new Baskets of Shares
may be issued and sold by the Fund on an ongoing basis, at any point a “distribution”,
as such term is used in the 1933 Act, may be occurring.  The Authorized Participant understands and
acknowledges that some activities on its part, depending on the circumstances,
may result in its being deemed a participant in a distribution in a manner
which could render it a statutory underwriter and subject it to the prospectus delivery
and liability provisions of the 1933 Act. 
The Authorized Participant should review the “Plan of Distribution”
portion of the Prospectus and consult with its own counsel in connection with
entering into this Agreement and submitting a Purchase Order.  The Authorized Participant also understands
and acknowledges that dealers who are not “underwriters” but are effecting
transactions in Shares, whether or not participating in the distribution of
Shares, are generally required to deliver a prospectus.

(f) With respect to 
each party for which the Authorized Participant is acting (whether such
party is a customer or otherwise) in connection with the creation of a Basket
and to whom the Authorized Participant delivers a Prospectus (each a “Prospective
Participant”), the Authorized Participant shall obtain from each Prospective
Participant an acknowledgment from such Prospective Participant of the receipt
of such Prospectus in accordance

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with
the Commodity and Futures Trading Commission Regulation 4.21(b), to the extent
applicable, prior to the submission of any Purchase Order Subscription
Agreement in respect of  such Basket.

(g) The Authorized Participant has the capability to
send and receive communications via authenticated telecommunication facility to
and from the Distributor, the Fund’s custodian (the “Custodian”) and the
Authorized Participant’s custodian.  The
Authorized Participant shall confirm such capability to the satisfaction of the
Distributor and the Custodian prior to placing its first Order with the
Transfer Agent (whether it is a Purchase Order or a Redemption Order).

2.  EXECUTION OF PURCHASE
ORDERS AND REDEMPTION ORDERS.

(a) All Purchase Orders or Redemption Orders shall be
made in accordance with the terms of the Prospectus and the procedures
described in Annex I hereto.  Each party
hereto agrees to comply with the provisions of such documents to the extent
applicable to it.  It is contemplated
that the telephone lines used by the Transfer Agent will be recorded, and the
Authorized Participant hereby consents to the recording of all calls with the
Transfer Agent.  The Fund reserves the
right to issue additional or other procedures relating to the manner of
purchasing or redeeming Baskets and the Authorized Participant agrees to comply
with such procedures as may be issued from time to time.

(b) Redemption Orders shall not be made or processed
during the Initial Offering Period.  The
Authorized Participant acknowledges and agrees that orders to create Baskets
submitted during the Initial Offering Period will be processed at the end of
the Initial Offering Period and that the Creation Basket Capital Contribution
amount in respect of such order during such period is $2,500,000 per Basket,
which shall be deposited in escrow in accordance with instructions from the
Sponsor as described in the Prospectus during the period from the Purchase
Order Subscription Date through the end of the Initial Offering Period or
earlier termination of the offering of Shares.

(c) The Authorized Participant acknowledges and agrees
on behalf of itself and any party for which it is acting (whether as a customer
or otherwise) that each Purchase Order and each Redemption Order shall be
irrevocable upon delivery to the Fund, provided that the Fund, the Sponsor, and
the Distributor on behalf of the Fund and the Sponsor reserve the right to
reject (i) any Purchase Order until the trade is released as “good” as
described in Annex I hereto and 
(ii) any Redemption Order that is not in “proper form” as defined in the
Prospectus.

(d) The Fund, the Sponsor, and the Distributor on
behalf of the Fund and the Sponsor reserve the absolute right to reject or
revoke acceptance of a Purchase Order Subscription Agreement if (i) the order
is not in proper form as determined by the Fund or Sponsor, (ii) the acceptance
of the Purchase Order would, in the opinion of counsel, be unlawful; or (iii)
circumstances outside the control of Fund or Sponsor make it for all practical
purposes impossible to process a Purchase Order or creation of Baskets.   The Fund or the Sponsor shall notify the
Authorized Purchaser of a rejection or revocation of any Purchase Order.

(e) The Fund or Sponsor shall reject any Redemption
Order the fulfillment of which its counsel advised would be illegal under
applicable laws and regulations, and neither the Fund, the Sponsor, nor the
Distributor shall have any liability to any person for rejecting a Redemption
Order in such circumstances.

(f) The Sponsor may, in its discretion, suspend the
right of redemption, or postpone the applicable Redemption Settlement Time, (i)
for any period during which the NYSE Arca or any exchange on which the Fund’s
assets are regularly traded is closed other than for customary weekend or
holiday closings, or trading is suspended or restricted; (ii) for any period
during which an emergency exists as a result of which delivery, disposal or
evaluation of the Fund’s assets are not reasonably practical; or (iii) for such
other periods as the Sponsor determines to be necessary for the protection of the
Beneficial Owners.  Neither the Fund, the
Sponsor, nor the Distributor shall be liable to any person in any way for any
loss or damages that may result from any such suspension or postponement.

3.  PROSPECTUS, MARKETING MATERIALS AND REPRESENTATIONS.

(a) The Distributor will provide to the Authorized
Participant copies of the then current Prospectus and any printed supplemental
information in reasonable quantities upon request.  The Distributor represents, warrants and

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agrees that it will notify the Authorized Participant
when a revised, supplemented or amended Prospectus for the Fund is available
and deliver or otherwise make available to the Authorized Participant copies of
such revised, supplemented or amended Prospectus at such time and in such numbers
as to enable the Authorized Participant to comply with any obligation it may
have to deliver such Prospectus to customers. 
The Distributor will make such revised, supplemented or amended
Prospectus available to the Authorized Participant no later than its effective
date.  The Distributor shall be deemed to
have complied with this Section 3 when the Authorized Participant has received
such revised, supplemented or amended prospectus by email at [insert e-mail address], in
printable form, with such number of hard copies as may be agreed from time to
time by the parties promptly thereafter.

(b) The Distributor represents and warrants that (i)
the Registration Statement and the Prospectus contained therein conforms in all
material respects to the requirements of the Securities Act of 1933, as
amended, and the rules and regulations of the Securities Exchange Commission
thereunder and do not and will not, as of the applicable effective date as to
the Registration Statement and any amendment thereto and as of the applicable
filing date as to the Prospectus and any amendment or supplement thereto,
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading; (ii) the sale and distribution of the Shares as contemplated herein
will not conflict with or result in a breach or violation of any statute or any
order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Fund or the Distributor; and (iii) no consent, approval,
authorization, order, registration or qualification of or with any such court
or governmental agency or body is required for the issuance and sale of the
Shares, except the registration under the Securities Act of 1933 Act of the
Shares.

(c) The Authorized Participant represents, warrants
and agrees that it will not make any representations concerning Shares other
than those contained in the Fund’s then current Prospectus or in any
promotional materials or sales literature furnished to the Authorized
Participant by the Distributor.  The
Authorized Participant agrees not to furnish or cause to be furnished to any
person or display or publish any information or materials relating to Shares
(including, without limitation, promotional materials and sales literature,
advertisements, press releases, announcements, statements, posters, signs or
other similar materials), except such information and materials as may be
furnished to the Authorized Participant by the Distributor and such other
information and materials as may be approved in writing by the
Distributor.  The Authorized Participant
understands that any advertising material that addresses redemptions of Shares,
including the Prospectus, will disclose that the owners of Shares may acquire
Shares and tender Shares for redemption to the Fund in whole Baskets only.

(d) Notwithstanding the foregoing, the Authorized
Participant may without the written approval of the Distributor prepare and
circulate in the regular course of its business research reports that include
information, opinions or recommendations relating to Shares (i) for public
dissemination, provided that such research reports compare the relative merits
and benefits of Shares with other products and are not used for purposes of
marketing Shares and (ii) for internal use by the Authorized Participant.

4.  CAPITAL
CONTRIBUTION AND FEES.

The Authorized Participant hereby agrees that as
between the Fund and itself or any party for which it acts in connection with a
Purchase Order, it will make available in same day funds for each purchase of
Shares an amount of cash due to the Fund in connection with the purchase of any
Basket of Shares (the “Capital Contribution”) which shall be made through DTC
to an account maintained by the Custodian and shall be provided in same day or
immediately available funds on or before the settlement date in accordance with
the Fund’s Prospectus (“Contractual Settlement Date”).  The Authorized Participant hereby agrees to
ensure that the Capital Contribution will be received by the Fund on or before
the Contractual Settlement Date, and in the event payment of such CaAmount has
not been made by such Contractual Settlement Date, the Authorized Participant
agrees on behalf of itself or any party for which it acts in connection with a
Purchase Order to pay the full cash amount, plus interest, computed at such
reasonable rate as may be specified by the Fund from time to time.  The Authorized Participant may require its
customer to enter into a written agreement with the Authorized Participant with
respect to such matters.

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5.  ROLE OF AUTHORIZED PARTICIPANT.

(a) The Authorized Participant acknowledges and agrees
that for all purposes of this Agreement, the Authorized Participant will be deemed
to be an independent contractor, and will have no authority to act as agent for
the Fund, the Distributor, the Sponsor or the Custodian in any matter or in any
respect.  The Authorized Participant
agrees to make itself and its employees available, upon request, during normal
business hours to consult with the Fund, the Distributor, the Sponsor, the
Custodian or the Authorized Participant’s custodian or their designees
concerning the performance of the Authorized Participant’s responsibilities
under this Agreement.

(b) The Authorized Participant agrees to maintain
records of all sales of Shares made by or through it and to furnish copies of
such records to the Fund or the Distributor upon the request of the Fund or the
Distributor.

6.  AUTHORIZED PERSONS
OF THE AUTHORIZED PARTICIPANT.

(a) Concurrently with the execution of this Agreement
and from time to time thereafter as may be requested by the Fund or the
Distributor, the Authorized Participant shall deliver to the Distributor and
the Fund, with copies to the Transfer Agent at the address specified below,
duly certified as appropriate by its Secretary or other duly authorized
official, a certificate in a form approved by the Fund setting forth the names
and signatures of all persons authorized to give instructions relating to any
activity contemplated hereby or any other notice, request or instruction on
behalf of the Authorized Participant (each such person an “Authorized Person”).   Such certificate may be accepted and relied
upon by the Distributor  and the Fund as
conclusive evidence of the facts set forth therein and shall be considered to
be in full force and effect until delivery to the Distributor and the Fund of a
superseding certificate in a form approved by the Fund bearing a subsequent
date.   Upon the termination or
revocation of authority of such Authorized Person by the Authorized
Participant, the Authorized Participant shall give immediate written notice of
such fact to the Distributor and the Fund and such notice shall be effective
upon receipt by both the Distributor and the Fund.

(b) The Distributor shall issue to each Authorized
Participant a unique personal identification number (“PIN Number”) by which
such Authorized Participant shall be identified and instructions issued by the
Authorized Participant hereunder shall be authenticated. The PIN Number shall
be kept confidential and only provided to Authorized Persons.  If after issuance, an Authorized Participant’s
PIN Number is changed, the new PIN Number will become effective on a date
mutually agreed upon by the Authorized Participant and the Distributor.

7.  REDEMPTION.

The Authorized Participant understands and agrees that
Redemption Orders may be submitted only on a Business Day.  A “Business Day” shall be any day other than
a day when banks in New York City or London are required or permitted to be
closed.  The Authorized Participant
represents and warrants that it will not attempt to place a Redemption Order
for the purpose of redeeming any Basket unless it first ascertains that, it or
its customer, as the case may be, owns outright or has full legal authority and
legal and beneficial right to tender for redemption the requisite number of
Shares of the Fund to be redeemed and to receive the entire proceeds of the
redemption, and that such Shares have not been loaned or pledged to another
party and are not the subject of a repurchase agreement, securities lending
agreement or any other arrangement that would preclude the delivery of such
Shares to the Transfer Agent, in accordance with the Prospectus or as otherwise
required by the Fund.

8.  INDEMNIFICATION.

This
Section 8 shall survive the termination of this Agreement.

(a)  The Authorized Participant hereby agrees to
indemnify and hold harmless the Distributor, the Fund, the Sponsor, the
Transfer Agent, and their respective subsidiaries, directors, officers,
employees and agents, and each person, if any, who controls such persons within
the meaning of Section 15 of the 1933 Act (each an “AP Indemnified Party”) from
and against any loss, liability, cost and expense (including attorneys’ fees)
incurred by such AP Indemnified Party as a result of (i) any breach by the
Authorized Participant of any provision of this Agreement, that relates to such
Authorized Participant; (ii) any failure on the part of the Authorized
Participant to

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perform
any of its obligations set forth in the Agreement; (iii) any failure by the
Authorized Participant to comply with applicable laws, including rules and
regulations of self-regulatory organizations; (iv) actions of such AP
Indemnified Party in reliance upon any instructions issued in accordance with
Annex I, II or III hereto (as each may be amended from time to time) reasonably
believed by the Distributor and/or Transfer Agent to be genuine and to have been
given by the Authorized Participant, or (v) (1) any representation by the
Authorized Participant, its employees or its agents or other representatives
about the Shares, any AP Indemnified Party or the Fund that is not consistent
with the Fund’s then-current Prospectus made in connection with the offer or
the solicitation of an offer to buy or sell Shares and (B) any untrue statement
or alleged untrue statement of a material fact contained in any research
reports, marketing material and sales literature described in Section 3 hereof
or any alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading to the
extent that such statement or omission relates to the Shares, any AP Indemnified
Party or the Fund, unless, in either case, such representation, statement or
omission was made or included by the Authorized Participant at the written
direction of the Fund or the Distributor or is based upon any omission or
alleged omission by the Fund or the Distributor to state a material fact in
connection with such representation, statement or omission necessary to make
such representation, statement or omission not misleading.  The Authorized
Participant and the Distributor understand and agree that the Fund and the
Sponsor, as third party beneficiaries to this Agreement, are entitled and
intend to proceed directly against the Authorized Participant in the event that
the Authorized Participant fails to honor any of its obligations pursuant to this
Agreement that benefit the Fund or the Sponsor. 
The Distributor shall not be liable to the Authorized Participant for
any damages arising out of mistakes or errors in data provided to the
Distributor, or out of interruptions or delays of communications with the
Indemnified Parties who are service providers to the Fund.

(b)  The Distributor hereby agrees to indemnify
and hold harmless the Authorized Participant, its respective subsidiaries,
affiliates, directors, officers, employees and agents, and each person, if any,
who controls such persons within the meaning of Section 15 of the 1933 Act
(each a “Distributor Indemnified Party”) from and against any loss, liability,
cost and expense (including attorneys’ fees) incurred by such Distributor
Indemnified Party as a result of (i) any breach by the Distributor of any
provision of this Agreement that relates to the Distributor; (ii) any failure
on the part of the Distributor to perform any of its obligations set forth in
this Agreement; (iii) any failure by the Distributor to comply with applicable
laws, including rules and regulations of self-regulatory organizations; (iv)
actions of such Distributor Indemnified Party in reliance upon any instructions
issued or representations made in accordance with Annex I, II, and III hereto
(as each may be amended from time to time) reasonably believed by the
Authorized Participant to be genuine and to have been given by the Distributor,
or (v) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement of the Fund as originally filed with
the Securities and Exchange Commission or in any amendment thereof, or in any
prospectus or any statement of additional information, or any amendment thereof
or supplement thereto, or arising out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading in connection with
the Authorized Participant’s acting in its capacity as an Authorized
Participant.  The Authorized Participant
shall not be liable to the Distributor for any damages arising out of mistakes
or errors in data provided to the Authorized Participant, or out of
interruptions or delays of communications with the Indemnified Parties who are
service providers to the Fund, nor is the Authorized Participant liable for any
action, representation, or solicitation made by the wholesalers of the Fund.

(c) This Section 8 shall not apply to the extent any
such losses, liabilities, damages, costs and expenses are incurred as a result
or in connection with any gross negligence, bad faith or willful misconduct on
the part of the AP Indemnified Party or the Distributor Indemnified Party, as
the case may be.  The term “affiliate” in
this Section 8 shall include, with respect to any person, entity or
organization, any other person, entity or organization which directly, or
indirectly through one or more intermediaries, controls, is controlled by or is
under common control with such person, entity or organization.

9.  LIMITATION OF
LIABILITY.

(a) The Distributor and the Transfer Agent  undertake to perform such duties and only
such duties as are expressly set forth herein, or expressly incorporated herein
by reference, and no implied covenants or obligations shall be read into this
Agreement against the Distributor or the Transfer Agent.

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(b) In the absence of bad faith, negligence or
willful misconduct on its part, neither the Distributor nor the Transfer Agent,
whether acting directly or through agents or attorneys as provided in paragraph
(d) below, shall be liable for any action taken, suffered or omitted or for any
error of judgment made by any of them in the performance of their duties
hereunder.  Neither the Distributor nor
the Transfer Agent shall be liable for any error of judgment made in good faith
unless the party exercising such shall have been negligent in ascertaining the
pertinent facts necessary to make such judgment.  In no event shall the
Distributor or the Transfer Agent be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profit), even if such parties have been advised of the likelihood of
such loss or damage and regardless of the form of action.  In no event
shall the Distributor or the Transfer Agent be liable for the acts or omissions
of DTC or any other securities depository.

(c) Neither the Distributor nor the Transfer
Agent shall be responsible or liable for any failure or delay in the performance
of their obligations under this Agreement arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including, without
limitation, acts of God; earthquakes; fires; floods; wars; civil or military
disturbances; terrorism; sabotage; epidemics; riots; interruptions; loss or
malfunction of utilities, computer (hardware or software) or communications
service; accidents; labor disputes; acts of civil or military authority or
governmental actions.

(d) The Distributor and the Transfer Agent may
conclusively rely upon, and shall be fully protected in acting or refraining
from acting upon, any communication authorized hereby and upon any written or
oral instruction, notice, request, direction or consent reasonably believed by
them to be genuine.

(e) The Transfer Agent shall not be required to
advance, expend or risk its own funds or otherwise incur or become exposed to
financial liability in the performance of its duties hereunder, except as may
be required as a result of its own gross negligence, willful misconduct or bad
faith.

(f) Tax Liability. To the extent any payment of
any transfer tax, sales or use tax, stamp tax, recording tax, value added tax
or any other similar tax or government charge applicable to the creation or
redemption of any Basket made pursuant to this Agreement is imposed, the
Authorized Participant shall be responsible for the payment of such tax or
government charge regardless of whether or not such tax or charge is imposed
directly on the Authorized Participant. 
To the extent the Fund or the Distributor is required by law to pay any
such tax or charge, the Authorized Participant agrees to promptly indemnify
such party for any such payment, together with any applicable penalties,
additions to tax or interest thereon.

10.  ACKNOWLEDGMENT.

The Authorized Participant acknowledges receipt of the
Prospectus and represents that it has reviewed and understands such documents.

11.  NOTICES.

Except as otherwise specifically provided in this
Agreement, all notices required or permitted to be given pursuant to this
Agreement shall be given in writing and delivered by personal delivery or by
postage prepaid registered or certified United States first class mail, return
receipt requested, or by telex, telegram or facsimile or similar means of same
day delivery (with a confirming copy by mail). 
Unless otherwise notified in writing, all notices to the Fund shall be
at the address or telephone, facsimile or telex numbers as follows:

	
  Attn:  

  	
  [  ]

  
	
   

  	
   

  
	
   

  	
  420 Lexington Ave, Suite 2550

  
	
   

  	
  New York, NY 10170

  
	
   

  	
  Attn:

  
	
   

  	
  P:
  (212)       -       ;
  F: (212)       -

  

 

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All
notices to the Authorized Participant, the Distributor and the Transfer Agent
shall be directed to the address or telephone, facsimile or telex numbers
indicated below the signature line of such party.

12.  EFFECTIVENESS, TERMINATION AND AMENDMENT.

(a) This Agreement shall become effective five (5)
Business Days after execution and delivery to the Distributor upon notice by
the Distributor to the Authorized Participant. 
This Agreement may be terminated at any time by any party upon sixty
(60) days prior written notice to the other parties and may be terminated
earlier by the Fund or the Distributor at any time in the event of a breach by
the Authorized Participant of any provision of this Agreement or the procedures
described or incorporated herein.  This
Agreement supersedes any prior such agreement between or among the parties.

(b) This Agreement may be amended by the Fund or the
Distributor from time to time without the consent of any Shareholder by the
following procedure.  The Fund or the
Distributor will mail a copy of the amendment to the Authorized Participant and
the Fund or Distributor, as applicable. 
For purposes of this Agreement, mail will be deemed received by the
recipient thereof on the fifth (5th) Business Day following the deposit of such
mail into the U.S. Postal system.  If
neither the Authorized Participant or the other party objects in writing to the
amendment within five (5) days after its receipt, the amendment will become
part of this Agreement in accordance with its terms.

13.  GOVERNING LAW; CONSENT
TO JURISDICTION.

This Agreement shall be governed by and construed in
accordance with the laws of the State of New York (regardless of the laws that
might otherwise govern under applicable New York conflict of laws principles)
as to all matters, including matters of validity, construction, effect,
performance and remedies.  Each party hereto
irrevocably consents to the jurisdiction of the courts of the State of New York
and of any federal court located in the Borough of Manhattan in such State in
connection with any action, suit or other proceeding arising out of or relating
to this Agreement or any action taken or omitted hereunder, and waives any
claim of forum non conveniens and any objections as to laying of venue.  Each party further waives personal service of
any summons, complaint or other process and agrees that service thereof may be
made by certified or registered mail directed to such party at such party’s
address for purposes of notices hereunder.  Each party hereto each hereby
irrevocably waives any and all rights to trial by jury in any legal proceeding
arising out of or relating to this Agreement.

14.  SUCCESSORS AND
ASSIGNS.

This Agreement and all of the provisions hereof shall
be binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns.

15.  ASSIGNMENT.

Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any party without the
prior written consent of the other parties, except that any entity into which a
party hereto may be merged or converted or with which it may be consolidated or
any entity resulting from any merger, conversion, or consolidation to which
such party hereunder shall be a party, or any entity succeeding to all or
substantially all of the business of the party, shall be the successor of the
party under this Agreement.  The party
resulting from any such merger, conversion, consolidation or succession shall
notify the other parties hereto of the change. 
Any purported assignment in violation of the provisions hereof shall be
null and void.

16.  INTERPRETATION.

The article and section headings contained in this
Agreement are solely for the purpose of reference, are not part of the
agreement of the parties and shall not in any way affect the meaning or
interpretation of this Agreement.

 8
 

 

17.  ENTIRE AGREEMENT.

This Agreement ,along with any other agreement or
instrument delivered pursuant to this Agreement, supersede all prior agreements
and understandings between the parties with respect to the subject matter
hereof.

18.  SEVERANCE.

If any provision of this Agreement is held by any
court or any act, regulation, rule or decision of any other governmental or
supra national body or authority or regulatory or self-regulatory organization
to be invalid, illegal or unenforceable for any reason, it shall be invalid,
illegal or unenforceable only to the extent so held and shall not affect the
validity, legality or enforceability of the other provisions of this Agreement
and this Agreement will be construed as if such invalid, illegal, or
unenforceable provision had never been contained herein, unless the Distributor
determines in its discretion, after consulting with the Fund, that the
provision of this Agreement that was held invalid, illegal or unenforceable
does affect the validity, legality or enforceability of one or more other
provisions of this Agreement, and that this Agreement should not be continued
without the provision that was held invalid, illegal or unenforceable, and in
that case, upon the Distributor’s notification of the Fund of such a
determination, this Agreement shall immediately terminate and the Distributor
will so notify the Authorized Participant immediately.

19.  NO STRICT CONSTRUCTION.

The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no
rule of strict construction will be applied against any party.

20.  SURVIVAL.

Section 8 (Indemnification) hereof shall survive the
termination of this Agreement.

21.  OTHER USAGES.

The following usages shall apply in interpreting this
Agreement: (i) references to a governmental or quasigovernmental agency,
authority or instrumentality shall also refer to a regulatory body that
succeeds to the functions of such agency, authority or instrumentality; and
(ii) “including” means “including, but not limited to.”

22.  COUNTERPARTS.

This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement.

[Signature Page Follows]

 9
 

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed and delivered as of the
day and year written below.

	
  DATED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALPS DISTRIBUTORS, INC.

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
  TITLE:

  	
   

  	
   

  
	
   

  	
  ADDRESS: 1625 Broadway, Suite 2200, Denver CO 80202

  
	
   

  	
  TELEPHONE: 303.623.2577

  
	
   

  	
  FACSIMILE: 303.623.7850

  
	
   

  	
  TELEX:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF AUTHORIZED PARTICIPANT]

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
  TITLE:

  	
   

  	
   

  
	
   

  	
  ADDRESS:

  	
   

  	
   

  
	
   

  	
  TELEPHONE:

  	
   

  	
   

  
	
   

  	
  FACSIMILE:

  	
   

  	
   

  
	
   

  	
  TELEX:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACCEPTED BY: [          ],
  AS TRANSFER AGENT

  
	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
  TITLE:

  	
   

  	
   

  
	
   

  	
  ADDRESS:

  	
   

  	
   

  
	
   

  	
  TELEPHONE:

  	
   

  	
   

  
	
   

  	
  FACSIMILE:

  	
   

  	
   

  
	
   

  	
  TELEX:

  	
   

  	
   

  
																

 

 10

 

ANNEX
I

TO

AUTHORIZED
PARTICIPANT AGREEMENT

FOR AIRSHARESTM  EU CARBON ALLOWANCES FUND

 

PROCEDURES
FOR PROCESSING

PURCHASE ORDERS AND REDEMPTION ORDERS

This Annex I to the Authorized Participant Agreement
supplements the Prospectus with respect to the procedures to be used in
processing (1) a Purchase Order for the purchase of Shares of AirSharesTM  EU Carbon Allowances Fund (the “Fund”) in
Baskets of the Fund and (2) a Redemption Order for the redemption of Shares in
Baskets of the Fund.  Capitalized terms, unless otherwise defined in this
Annex I, have the meanings attributed to them in the Authorized Participant
Agreement or the Prospectus.

An Authorized Participant is required to have signed
the Authorized Participant Agreement.  Upon acceptance of the Agreement
and execution thereof by the Fund and in connection with the initial Purchase
Order submitted by the Authorized Participant, the Distributor will assign a
PIN Number to each Authorized Person authorized to act for an Authorized
Participant.  This will allow an Authorized Participant through its
Authorized Person(s) to place a Purchase Order or Redemption Order with respect
to the purchase or redemption of Baskets of Shares of the Fund.

 11
 

 

ANNEX
I — PART A

TO

AUTHORIZED
PARTICIPANT AGREEMENT

FOR

AIRSHARESTM  EU CARBON ALLOWANCES FUND

 

TO PLACE A
PURCHASE ORDER FOR

BASKET(S) OF
SHARES OF

AIRSHARESTM  EU CARBON ALLOWANCES FUND

 

1. PLACING A PURCHASE ORDER.

Purchase Orders for Baskets of Shares of the Fund may
be initiated only on days that the Listing Exchange and the ICE Futures
Exchange are both open for trading (“Business Days”).  Purchase Orders may only be made in whole
Baskets of Shares of the Fund.

To begin a Purchase Order, the Authorized Participant
(“AP”) must telephone the Transfer Agent at [(  
)   —    ] or such other number as the Distributor
designates in writing to the AP.  This
telephone call must be made by an Authorized Person of the AP not later than
10:00 a.m. New York time on a Business Day (the “Order Cut-Off Time”).  Upon verifying the authenticity of the AP (as
determined by the use of the appropriate PIN Number), the Transfer Agent will
request that the AP place the Purchase Order. 
To do so, the AP must provide the appropriate ticker symbol for the
Fund.  After the AP has placed the Purchase
Order, the Transfer Agent will read the Purchase Order back to the AP. 
The AP then must affirm that the Purchase Order has been taken correctly by the
Transfer Agent.  If the AP affirms that
Purchase Order has been taken correctly, the Transfer Agent will issue a
Confirmation Number to the AP.

PLEASE
NOTE: A PURCHASE ORDER REQUEST IS NOT COMPLETE UNTIL THE CONFIRMATION NUMBER IS
ISSUED BY THE TRANSFER AGENT.  AN ORDER MAY NOT BE CANCELED BY THE AP
AFTER THE CONFIRMATION NUMBER IS ISSUED. 
INCOMING TELEPHONE CALLS ARE QUEUED AND WILL BE HANDLED IN THE SEQUENCE
RECEIVED.  CALLS PLACED BEFORE THE
LISTING EXCHANGE CLOSING TIME WILL BY PROCESSED EVEN IF THE CALL IS ANSWERED BY
THE TRANSFER AGENT AFTER THE LISTING EXCHANGE CLOSING TIME.  ACCORDINGLY, THE AP SHOULD NOT HANG UP AND
REDIAL.  INCOMING CALLS THAT ARE RECEIVED
AFTER THE LISTING EXCHANGE CLOSING TIME WILL NOT BE ANSWERED BY THE TRANSFER
AGENT.  ALL TELEPHONE CALLS WILL BE
RECORDED.

2. RECEIPT OF TRADE CONFIRMATION.

Subject to the conditions that a properly completed
telephone Purchase Order has been placed by the AP (either on its own or its
customer’s behalf) not later than the Order Cut-Off Time, the Distributor will
accept the Purchase Order on behalf of Fund and Distributor and will confirm in
writing to the AP that its Purchase Order has been accepted by 4:45  p.m.
Eastern Standard Time on the Business Day that the Purchase Order is received.

3. QUALITY ASSURANCE.

After a Confirmation Number is issued by Transfer
Agent to the AP, the Transfer Agent will either fax or email a written version
of the Purchase Order to the AP.  Upon
receipt, the AP should immediately telephone the Transfer Agent, if the
Participant believes that the Purchase Order has not been taken correctly by
the Transfer Agent. In addition, the Transfer Agent will telephone the AP
within 15 minutes of the fax or e-mail to corroborate the Purchase Order.

 12
 

 

4. REJECTING OR SUSPENDING PURCHASE ORDERS.

The Fund or Distributor reserves the absolute right to
reject or revoke acceptance of a Purchase Order if (i) the order is not in
proper form as determined by the Fund, the Transfer Agent or Distributor, (ii)
the acceptance of the Purchase Order would, in the opinion of counsel, be
unlawful; or (iii) circumstances outside the control of Fund, Distributor, the
Transfer Agent or the Fund’s commodity trading advisor make it for all
practical purposes impossible to process a Purchase Order or creation of
Baskets.  The Fund or the Distributor
shall notify the AP of a rejection or revocation of any Purchase Order.

Except as provided herein, all Purchase Orders for
Baskets of Shares of the Fund are irrevocable by the AP.

5. CONTRACTUAL SETTLEMENT

(a)           As promptly as practicable following
the publication of the net asset value of the Fund and the net asset value per
Share of the Shares on the Business Day that the Purchase Order is received
(the “Purchase Order Subscription Date”), the Distributor shall communicate to
the Authorized Participant the amount of cash necessary for the Capital
Contribution and details of the method of payment required for the Capital
Contribution.

(b)           If the Distributor rejects a Purchase
Order pursuant to the Participant Agreement, the Distributor will notify the
Participant whose Purchase Order was rejected.

(c)           At noon, New York time, on the
Business Day immediately following the Purchase Order Subscription Date, the
Fund, as requested by the Distributor through the Transfer Agent, shall issue
and cause the delivery of the Baskets ordered by each Participant on the Purchase
Order Subscription Date for which the Distributor has received confirmation of
receipt of (A) for its own account, the Transaction Fee, (B) for the account of
the Fund, the Capital Contribution due from the Participant submitting the
Purchase Order Subscription Agreement; and (C) a Purchase Order Subscription
Agreement duly executed by the Participant, substantially in the form attached
as Part D of this Annex I.

(d)           The Transfer Agent will cause the
Fund to deposit the Basket with the Depository in accordance with the
Depository’s customary procedures, for the credit of the account of the
Participant that placed the Purchase Order Subscription Agreement.

 13
 

 

ANNEX
I — PART B

TO

AUTHORIZED
PARTICIPANT AGREEMENT

FOR

AIRSHARESTM  EU CARBON ALLOWANCES FUND,

PROCEDURES TO PLACE A REDEMPTION ORDER FOR

BASKET(S) OF SHARES OF

AIRSHARESTM  EU CARBON ALLOWANCES FUND

1.  PLACING A
REDEMPTION ORDER

Redemption Orders for Baskets of Shares may be
initiated only on days that the Listing Exchange and the ICE Futures exchange
are  both  open
for trading.  Redemption Orders may only
be made in whole Baskets of the Fund.  To begin a Redemption Order, the AP
must telephone the Transfer Agent at [                   ].  This telephone call must be made by an
Authorized Person of the AP not later than 10:00 a.m. New York time on a
Business Day (the “Order Cut-Off Time”). 
Upon verifying the authenticity of the AP (as determined by the use of
the appropriate PIN Number), the Transfer Agent will request that the AP place
the Redemption Order.  To do so, the AP
must provide the appropriate ticker symbol for the Fund.  After the AP has
placed the Redemption Order, the Transfer Agent will read the Redemption Order
back to the AP.  The AP then must affirm that the Redemption Order has
been taken correctly by the Transfer Agent. 
If the AP affirms that Redemption Order has been taken correctly, the
Transfer Agent will issue a Confirmation Number to the AP.

PLEASE
NOTE: A REDEMPTION ORDER REQUEST IS NOT COMPLETE UNTIL THE CONFIRMATION NUMBER
IS ISSUED BY the TRANSFER AGENT.  AN ORDER MAY NOT BE CANCELED BY THE AP
AFTER THE CONFIRMATION NUMBER IS ISSUED. INCOMING TELEPHONE CALLS ARE QUEUED
AND WILL BE HANDLED IN THE SEQUENCE RECEIVED. 
CALLS PLACED BEFORE THE LISTING EXCHANGE CLOSING TIME WILL BY PROCESSED
EVEN IF THE CALL IS ANSWERED BY THE TRANSFER AGENT AFTER THE LISTING EXCHANGE
CLOSING TIME.  ACCORDINGLY, THE AP SHOULD
NOT HANG UP AND REDIAL.  INCOMING CALLS
THAT ARE RECEIVED AFTER THE LISTING EXCHANGE CLOSING TIME WILL NOT BE ANSWERED
BY THE TRANSFER AGENT.  ALL TELEPHONE
CALLS MAY BE RECORDED.

2.  RECEIPT OF
CONFIRMATION.

Subject to the conditions that a duly completed
Redemption Order is received by Distributor from the AP on behalf of itself or
another redeeming investor by the Order Cut-Off Time, the Distributor will
accept the Redemption Order on behalf of Fund and Distributor and will confirm
in writing to the AP that its Redemption Order has been accepted by 4:45 p.m.
Eastern Standard Time on the Business Day the Redemption Order is received (the
“Redemption Order Date”).

3.  QUALITY ASSURANCE.

After a Confirmation Number is issued by the Transfer
Agent to the AP, the Transfer Agent will either fax or email a copy of the
Redemption Order to the AP.  Upon
receipt, the AP should immediately telephone the Transfer Agent, if the AP
believes that the Redemption Order has not been taken correctly by the Transfer
Agent.  In addition, the Transfer Agent
will telephone the AP within 15 minutes of the fax or e-mail to corroborate the
Redemption Order.

 14
 

 

5.  CONTRACTUAL SETTLEMENT.

(a)           As promptly as practicable following
the publication of the net asset value of the Trust and the net asset value per
Share of the Shares on the Redemption Order Date, the Distributor shall
communicate to the Authorized Participant the amount of cash to be delivered in
the Redemption Distribution.

(b)           If the Distributor rejects a
Redemption Order pursuant to the Participant Agreement, the Distributor will
notify the Participant whose Redemption Order was rejected and the amount of
cash contained in the rejected Redemption Order.

(c)           By noon New York time, on the
Business Day immediately following the Redemption Order Date (the “Redemption
Settlement Time”), if the Distributor’s account at the Depository has by such
time been credited with the Redemption Baskets being tendered for redemption
and the Distributor has by such time received the Transaction Fee, the
Distributor shall deliver the Redemption Distribution through the Depository to
the account of the Participant as recorded on the book entry system of the
Depository.

(d)           If by the Redemption Settlement Time,
the Distributor has not received from a redeeming Participant all Redemption
Baskets comprising the Redemption Order, the Distributor will (i) settle the
Redemption Order to the extent of whole Redemption Baskets received from the
Participant and (ii) keep the redeeming Participant’s Redemption Order open
until noon, New York time, on the first Business Day following the Redemption
Settlement  Date as to the balance of the
Redemption Order (such balance, the “Suspended Redemption Order”).  For each day (whether or not a Business Day)
the Redemption Order is held open, the Participant will be charged by the
Distributor the greater of [$    ] or [$    ]
times the number of Redemption Baskets included in the Suspended Redemption
Order.

(e)           If the Redemption Basket(s)
comprising the Suspended Redemption Order are credited to the Distributor’s
account at the Depository by noon, New York time, on the first Business Day
following the Redemption Settlement Date, the Redemption Distribution with
respect to the Suspended Redemption Order shall be paid in the manner provided
in item (c) above.

(f)            If by noon, New York time, on the
first Business Day following the Redemption Settlement Date, the Distributor
has not received from the redeeming Participant all Redemption Baskets
comprising the Suspended Redemption Order, the Distributor will settle the
Suspended Redemption Order to the extent of whole Redemption Baskets then
received and any balance of the Suspended Redemption will be cancelled.

7.  STANDING REDEMPTION
INSTRUCTIONS.

Annex III hereto contains the AP’s Standing Redemption
Instructions, which includes information identifying the account(s) into which
redemption proceeds should be delivered by Fund pursuant to a Redemption Order.

 15
 

 

ANNEX I — PART C

TO

AUTHORIZED
PARTICIPANT AGREEMENT

FOR

AIRSHARESTM  EU CARBON ALLOWANCES FUND

AIRSHARES FUNDS FLOW PROCESS

This
Annex I-Part C supplements the Fund’s Prospectus with respect to the procedures
to be used by the Distributor and Transfer Agent in processing an order for the
creation or redemption of Shares of the Fund.

A. The AP is required to have (i) signed an
Authorized Participant Agreement for Fund and (ii)  assigned a personal
identification number to each Authorized Person that the AP has authorized to
act for such AP.  This will allow an AP through its Authorized Person(s)
to place a creation or redemption order with respect to Shares of the Fund.

B. The AP and Distributor shall implement
the “Funds Flow Process” as agreed to by the parties from time to time.

C. Note that trades placed through the DTC
may only occur on any day that DTC and ICE Futures are  open
for business (“DTC Business Day”) .

FUNDS FLOW PROCESS

	
  ORIGINATOR

  	
   

  	
  ACTIVITY

  
	
  1. The AP calls on the
  Transfer Agent recorded number to place a Share Creation and/or Redemption
  order. These trades are to be placed by 10:00 a.m. New York time on a
  Business Day (the “Order Cut-Off Time”).

  	
   

  	
  1. The Transfer Agent greets caller.

  
	
                                                                       

  	
   

  	
                                                                       

  
	
  2. AP identifies his/her
  name, the Institution he/she represents, and PIN #.

  	
   

  	
  2 The Transfer Agent will confirm the AP’s PIN #.

  
	
  

  	
   

  	
   

  
	
  The AP states the Fund name
  and relevant ticker symbol.

  	
   

  	
  The Transfer Agent records the PIN # and the order,
  and provides the AP with an order confirmation number. 

  
	
                                                                       

  	
   

  	
                                                                       

  
	
  

  	
   

  	
  The order confirmation constitutes a binding order,
  which may only be reversed by the Transfer Agent, the Distributor or the
  Fund.

  

 

 16
 

 

	
  3. AP will Fax a copy of the
  order form to the Transfer Agent within 15 minutes from the time the call is
  made.

  	
   

  	
  3. The Transfer Agent will receive a copy of the
  completed order form from the AP Faxed within 15 minutes from the time the
  order is placed.

  
	
  The counter-signed Order
  Form will be sent as the physical receipt

  	
   

  	
                                                                       

  
	
  for the AP that the order is
  confirmed.

  	
   

  	
  All orders received from the AP’s are time stamped
  by the Transfer Agent at the time the order is placed

  
	
  The above procedures will be
  repeated until all orders have been

  	
   

  	
                                                                       

  
	
  placed by the AP.

  	
   

  	
  The Distributor will verify that the appropriate
  disclaimers have been made by the AP and validate the disclaimer by
  calculating the AP’s position, including the subscriptions requested, to the
  total fund shares outstanding 

  
	
                                                                       

  	
   

  	
                                                                       

  
	
  

  	
   

  	
  The Distributor will sign the Order Form and the
  signed Order Form will be sent as the physical receipt for the AP that the
  order is confirmed.

  
	
                                                                       

  	
   

  	
                                                                       

  
	
  4. The AP receives the fax

  	
   

  	
  4. The AP will assume responsibility for an
  incorrect trade and contact the Transfer Agent if necessary.

  
	
  The AP will assume
  responsibility for an incorrect trade

  	
   

  	
                                                                       

  
	
  

  	
   

  	
  If trades are corrected, the Transfer Agent will
  delete the first trade and reenter the corrected trade. A second affirmation
  will be faxed to the AP with all trades placed that day. The corrected trade
  will be coded on the affirmation so that the AP can see the correction.

  
	
                                                                       

  	
   

  	
                                                                       

  
	
  

  	
   

  	
  No corrections will be permitted after 4 p.m.

  
	
                                                                       

  	
   

  	
                                                                       

  
	
                                                                       

  	
   

  	
                                                                       

  
	
                                                                       

  	
   

  	
                                                                       

  
	
  5. AP’s must deliver units
  for redemption orders no later than Trade Date Plus 1 in order to meet the
  affirmed order requirements placed the previous day.

  	
   

  	
   

  

 
*  Times may vary depending on the trade volume from APs.

 17
 

 

ANNEX I — PART D

TO

AUTHORIZED
PARTICIPANT AGREEMENT

FOR

AIRSHARESTM  EU CARBON ALLOWANCES FUND

FORM OF PURCHASE ORDER SUBSCRIPTION
AGREEMENT

	
  Authorized Participant:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
  PIN Number:

  	
   

  	
   

  
	
  Number of Shares to be
  Issued:

  	
   

  	
   

  
						

 

All Purchase Order Subscription Agreements are
subject to the terms and conditions of the Amended and Restated Declaration of
Trust and Trust Agreement (the “Trust Agreement”) of AirSharesTM EU
Carbon Allowances Fund (the “Trust”) as currently in effect and the AirSharesTM EU
Carbon Allowances Fund Authorized Participant Agreement among the Authorized
Participant and the Distributor.  All
representations and warranties of the Authorized Participant set forth in such
AirSharesTM EU Carbon Allowances Fund Authorized Participant
Agreement are incorporated herein by reference. 
Capitalized terms used but not defined herein have the meaning given in
the Trust Agreement.

The undersigned understands that by submitting this
Purchase Order Subscription Agreement he/she is making the representations and
warranties set forth in Exhibit A to this Purchase Order Subscription Agreement
and is also granting an irrevocable Power of Attorney.

The undersigned understands that its DTC account
will be charged the Transaction Fee as set forth in the currently effective
copy of the Prospectus.

The undersigned does hereby certify as of the date
set forth below that he/she is an Authorized Person under the AirSharesTM EU
Carbon Allowances Fund Authorized Participant Agreement and that he/she is
authorized to deliver this Purchase Order Subscription Agreement to the
Distributor on behalf of the Authorized Participant.

	
  Date:

  	
   

  	
   

  	
  [NAME OF AUTHORIZED PARTICIPANT]

  
	
   

  	
   

  
	
  Accepted by

  	
   

  
	
  AirSharesTM EU Carbon Allowances Fund

  	
  By:

  	
   

  	
   

  
	
  By: ALPS
  Distributors, Inc., as Distributor, on behalf of

  	
  Name:

  
	
  XShares Advisors
  LLC, as Sponsor

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 18

 

EXHIBIT A TO

PURCHASE ORDER SUBSCRIPTION
AGREEMENT

PURCHASER’S REPRESENTATIONS AND
WARRANTIES AND

POWER OF
ATTORNEY

1. CFTC
Registration Status. The Authorized Participant either is not required to
be registered with the Commodity Futures Trading Commission (“CFTC”) or to be a
member of the National Futures Association (“NFA”), or, if required to be so
registered, is duly registered with the CFTC and is a member in good standing
of the NFA.  The Authorized Participant
agrees to supply the Sponsor or Distributor with such information as the
Sponsor or Distributor may reasonably request in order to verify the foregoing
representation.  Vehicles for collective
investment which acquire Shares may, as a result, themselves become “commodity
pools” within the intent of applicable CFTC and NFA rules, and their sponsors,
accordingly, will be required to register as “commodity pool operators.”

2. Disclosure
Document. The Authorized Participant has received the Trust’s Prospectus
which constitutes its Commodity Futures Trading Commission (“CFTC”) Disclosure
Document.

3. Monthly
Report. If trading for the Trust has commenced, the Authorized Participant
has received a copy of its most recent monthly report as required by the CFTC.

4. Power of
Attorney. In connection with the Authorized Participant’s acceptance of an
interest in the Trust, the Authorized Participant does hereby irrevocably
constitute and appoint the Sponsor, and its successors and assigns, as its true
and lawful Attorney-in-Fact, with full power of substitution, in my name, place
and stead, in the execution, acknowledgment, filing and publishing of Trust
documents, including, but not limited to, the following: (i) Any certificates
and other instruments, including but not limited to, any applications for authority
to do business and amendments thereto, which the Sponsor deems appropriate to
qualify or continue the Trust as a business or statutory trust in the
jurisdictions in which the Trust may conduct business, so long as such
qualifications and continuations are in accordance with the terms of the
Amended and Restated Declaration of Trust and Trust Agreement of the Trust (the
“Trust Agreement”) or any amendment hereto, or which may be required to be
filed by the Trust or the Shareholders under the laws of any jurisdiction; (ii)
Any instrument which may be required to be filed by the Trust under the laws of
any state or by any governmental agency, or which the Sponsor deems advisable
to file; and (iii) The Trust Agreement and any documents which may be required
to effect an amendment to the Trust Agreement approved under the terms of the
Trust Agreement, and the continuation of the Trust, the admission of the signer
of the Power of Attorney as a Limited Owner or of others as additional or
substituted Limited Owners, or the termination of the Trust, provided such
continuation, admission or termination is in accordance with the terms of the
Trust Agreement.  The Power of Attorney
granted hereby shall be deemed to be coupled with an interest and shall be
irrevocable and shall survive, and shall not be affected by, the Authorized
Participant’s subsequent insolvency or dissolution or any delivery by the
Authorized Participant of an assignment of the whole or any portion of the
Authorized Participant’s Shares.

 19
 

 

ANNEX II

TO

AUTHORIZED
PARTICIPANT AGREEMENT

FOR

AIRSHARESTM  EU CARBON ALLOWANCES FUND

FORM OF CERTIFIED AUTHORIZED PERSONS OF AUTHORIZED
PARTICIPANT

The
following are the names, titles and signatures of all persons (each an “Authorized
Person”) authorized to give instructions relating to any activity contemplated
by this Agreement or any other notice, request or instruction on behalf of the
AP pursuant to this Agreement.

	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  
																	

 

The undersigned, [name], [title], [company], does
hereby certify that the persons listed above have been duly elected to the
offices set forth beneath their names, that they presently hold such offices,
that they have been duly authorized to act as Authorized Persons of this
Institution in its capacity as an Authorized Participant pursuant to the
Agreement by and between ALPS Distributor, Inc., as Distributor and [name of
the AP], dated [date] and that their signatures set forth above are their own
true and genuine signatures.

In
Witness Whereof, the undersigned has hereby set his/her hand and the seal of
[Company].

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  [name, title]

  	
   

  	
   

  

 

 20
 

 

ANNEX
III

TO

AUTHORIZED
PARTICIPANT AGREEMENT

FOR

AIRSHARESTM  EU CARBON ALLOWANCES FUND

THE
AP ACCOUNTS

FOR DELIVERY OF DEPOSIT SECURITIES

The
accounts into which AirSharesTM  EU Carbon
Allowances Fund should deposit the monies upon redemption by the AP are set
forth below:

	
  

  	
  Name of AP:

  
	
   

  	
  Account Name:

  
	
   

  	
  Account Number:

  
	
   

  	
  Other Reference Number:

  

 

 21Exhibit 10.1

SUBLEASE BETWEEN MAIJ AND ODETICS INC.

1. Basic Provisions (“Basic Provisions”).

1.1   Parties: This Sublease (“Sublease”), dated for reference
purposes only September 30, 2003, is made by and between Odetics, Inc, a
Delaware corporation (“Sublessor”) and Maij, Inc., a
California corporation (“Sublessee”),
(collectively the “Parties”,
or individually a “Party”).

1.2(a) Premises: That
certain portion of the Project (as defined below), known as 1515 S. Manchester
Ave., Anaheim, consisting of approximately 10,000 square feet, currently
occupied by Odetics, Inc. and MAXxess Inc. (“Premises”).
The Premises are located at: 1515 S. Manchester Ave., in the City of Anaheim,
County of Orange, State of California, with zip code 92802. In addition to
Lessee’s rights to use and occupy the Premises as hereinafter specified, Lessee
shall have nonexclusive rights to the Common Areas (as defined below) as
hereinafter specified, but shall not have any rights to the roof, the exterior
walls, or the utility raceways of the building containing the Premises (“Building”) or to any other buildings in the Project. The
Premises, the Building, the Common Areas, the land upon which they are located,
along with all other buildings and improvements thereon, are herein collectively
referred to as the “Project.”

1.2(b) Parking:  20
unreserved and 0 reserved vehicle parking spaces.

1.3   Term:
4
years and two months commencing
on September 24 , 2003 (“Commencement Date”)
and ending November 23, 2007 (“Expiration Date”);  provided, however, that
notwithstanding the preceding clause, if the exact location of the Premises is
not designated in writing and mutually acceptable to Sublessee and Sublessor as
evidenced by a written memorandum signed by Sublessor and Sublessee within 6
months after the Commencement Date, then the Term of this Sublease shall be
reduced from 4 years and two months to a Term of two years and the Term of this
Sublease shall commence on the Commencement
Date and end on September 23, 2005 (“Expiration Date”).

1.4   Early Possession:
n/a (“Early Possession Date”).

1.5   Base Rent:
$10,200 per month (“Base Rent)”, payable on the 1st day of each
month commencing October 1, 2003.

o    this
box is checked, there are provisions in this Lease for the Base Rent to be
adjusted.

1.6   Lessee’s Share of Operating Expenses:
(none (“Lessee’s Share”).

1.7   Base Rent and Other Monies Paid Upon
Execution:

(a)

Base Rent: $10,200
for the period October 1, 2003- October 31, 2003 (b)

Security Deposit: $0 (“Security
Deposit”).

(c)

Other: $ 0.

(d)

Total Due
Upon Execution of this Lease: $10,200,00.

1.8   Agreed Use: The design, manufacture, testing and
assembly of electrical components and related legal uses, and general offices.

1.9   Real Estate
Brokers: none

1.10 Guarantor:
none.

1.11 Attachments.
Attached hereto are the following, all of which constitute a part of this Sublease:

o    Addendum
consisting of Paragraphs;

o    a
plot plan depicting the Premises and/or Project;

o    a
current set of the Rules and Regulations;

o    a
Work Letter;

x   a copy
of the Master Lease;

o    other
(specify):

2.

Premises.

2.1   Letting. Sublessor hereby subleases to
Sublessee, and Sublessee hereby subleases from Sublessor, the Premises, for the
term, at the rental, and upon all of the terms, covenants and conditions set
forth in this Sublease. Unless otherwise provided herein, any statement of size
set forth in this Sublease, or that may have been used in calculating Rent, is
an approximation, which the Parties agree, is reasonable and any payments based
thereon are not subject to revision whether or not the actual size is more or
less.

2.2   Condition. Sublessor shall deliver
the Premises to Sublessee broom clean and free of debris on the Commencement
Date or the Early Possession Date, whichever first occurs (“Start Date”), and warrants that the existing electrical,
plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning
systems (“HVAC”), and shall be in good operating
condition on said date. If a noncompliance with such warranty exists as of the
Start Date, or if one of such systems or elements should malfunction or fail
within the appropriate warranty period, Sublessor shall, as Sublessor’s sole
obligation with respect to such matter, except as otherwise provided in this
Sublease, promptly after receipt of written notice from Sublessee setting forth
with specificity the nature and extent of such noncompliance, malfunction or
failure, rectify same at Sublessor’s expense. The warranty periods shall be as
follows: Coterminus with the term of this Sublease.

2.3   Compliance. Sublessor warrants
that any improvements, alterations or utility installations made or installed
by or on behalf of Sublessor to or on the Premises comply with all applicable
covenants or restrictions of record and applicable building codes, regulations
and ordinances (“Applicable Requirements”) in
effect on the date that they were made or installed. Sublessor makes no
warranty as to the use to which Sublessee will put the Premises or to
modifications which may be required by the Americans with Disabilities Act or
any similar laws as a result of Sublessee’s use. If the Premises do not comply
with said warranty, Sublessor shall, except as otherwise provided, promptly
after receipt of written notice from Sublessee setting forth with specificity
the nature and extent of such noncompliance, rectify the same.

2.4   Acknowledgements. Sublessee
acknowledges that: (a) it has been advised by Sublessor and/or Brokers to
satisfy itself with respect to the condition of the Premises (including but not
limited to the electrical, HVAC and fire sprinkler systems, security,
environmental aspects, and compliance with Applicable Requirements and the
Americans with Disabilities Act), and their suitability for Sublessee’s
intended use, (b) Except as specified herein, Sublessee has made such
investigation as it deems necessary with reference to such matters and assumes
all responsibility therefor as the same relate to its occupancy of the
Premises, and (c) neither Sublessor, Sublessor’s agents, nor Brokers have made
any oral or written representations or warranties with respect to said matters
other than as set forth in this Sublease. In addition, Sublessor acknowledges
that: (i) Brokers have made no representations, promises or warranties
concerning Sublessee’s ability to honor the Sublease or suitability to occupy
the Premises, and (ii) it is Sublessor’s sole responsibility to investigate the
financial capability and/or suitability of all proposed tenants.

2.5   Americans with Disabilities Act. In the event that as a result of
Sublessee’s use, or intended use, of the Premises the Americans with Disabilities
Act or any similar law requires modifications or the construction or
installation of improvements in or to the Premises, Building, Project and/or
Common Areas, the Parties agree that such modifications, construction or
improvements shall be made at: 

x  Sublessor’s expense   o  Sublessee’s expense.

2.6   Vehicle Parking. Sublessee shall
be entitled to use the number of Unreserved Parking Spaces and Reserved Parking
Spaces specified in Paragraph 1.2(b) on those portions of the Common Areas
designated from time to time for parking, Sublessee shall not use more parking spaces
man said number. Said parking spaces shall be used for parking by vehicles no
larger than full-size passenger automobiles or pickup trucks, herein called “Permitted Size Vehicles.” Sublessor may regulate the loading
and unloading of vehicles by adopting Rules and Regulations as provided in
Paragraph 2.9. No vehicles other than Permitted Size Vehicles may be parked in
the Common Area without the prior written permission of Sublessor.

(a)   Sublessee shall not permit or
allow any vehicles that belong to or are controlled by Sublessee or Sublessee’s
employees, suppliers, shippers, customers, contractors or invitees to be
loaded, unloaded, or parked in areas other than those designated by Sublessor
for such activities.

(b)   Sublessee shall not service
or store any vehicles in the Common Areas.

(c)   If Sublessee permits or
allows any of the prohibited activities described in this Paragraph 2.6, then
Sublessor shall have the right, without notice, in addition to such other
rights and remedies that it may have, to remove or tow away the vehicle
involved and charge the cost to Sublessee, which cost shall be immediately
payable upon demand by Sublessor.

2.7   Common Areas—Definition. The term “Common Areas” is defined as all areas and facilities outside
the Premises and within the exterior boundary line of the Project and interior
utility raceways and installations within the Premises that are provided and
designated by the Sublessor from time to time for the general nonexclusive use
of Sublessor, Sublessee and other tenants of the Project and their respective

employees, suppliers, shippers, customers,
contractors and invitees, including parking areas, loading and unloading areas,
trash areas, roadways, walkways, driveways and landscaped areas.

2.8   Common Areas—Sublessee’s Rights.
Sublessor grants to Sublessee, for the benefit of Sublessee and its employees,
suppliers, shippers, contractors, customers and invitees, during the term of
this Sublease, the nonexclusive right to use, in common with others entitled to
such use, the Common Areas as they exist from time to time, subject to any
rights, powers, and privileges reserved by Sublessor under the terms hereof or
under the terms of any rules and regulations or restrictions governing the use
of the Project. Under no circumstances shall the right herein granted to use
the Common Areas be deemed to include the right to store any property, temporarily
or permanently, in the Common Areas. Any such storage shall be permitted only
by the prior written consent of Sublessor or Sublessor’s designated agent,
which consent may be revoked at any time. In the event that any unauthorized
storage shall occur then Sublessor shall have the right, without notice, in
addition to such other rights and remedies that it may have, to remove the
property and charge the cost to Sublessee, which cost shall be immediately
payable upon demand by Sublessor.

2.9   Common Areas—Rules and Regulations.
Sublessor or such other person(s) as Sublessor may appoint shall have the
exclusive control and management of the Common Areas and shall have the right,
from time to time, to establish, modify, amend and enforce reasonable and
non-discriminatory rules and regulations (“Rules and Regulations”)
for the management, safety, care, and cleanliness of the grounds, the parking
and unloading of vehicles and the preservation of good order, as well as for
the convenience of other occupants or tenants of the Building and the Project
and their invitees. Sublessee agrees to abide by and conform to all such Rules
and Regulations, and to cause its employees, suppliers, shippers, customers,
contractors and invitees to so abide and conform. Sublessor shall not be
responsible to Sublessee for the noncompliance with said Rules and Regulations
by other tenants of the Project.

2.10 Common Areas—Changes. Sublessor
shall have the right, in Sublessor’s sole discretion, from time to time:

(a)   To make changes to the Common
Areas, including, without limitation, changes in the location, size, shape and
number of driveways, entrances, parking spaces, parking areas, loading and
unloading areas, ingress, egress, direction of traffic, landscaped areas,
walkways and utility raceways which does not impar in any material manner
Sublessee’s prior use;

(b)   To close temporarily any of
the Common Areas for maintenance purposes so long as reasonable access to the
Premises remains available;

(c)   To add additional buildings
and improvements to the Common Areas;

(d)   To use the Common Areas while
engaged in making additional improvements, repairs or alterations to the
Project, or any portion thereof; and

(e)   To do and perform such other
acts and make such other changes in, to or with respect to the Common Areas and
Project as Sublessor may, in the exercise of sound business judgment, deem to
be appropriate.

3.

Possession.

3.1   Early Possession. If Sublessee
totally or partially occupies the Premises prior to the Commencement Date, the
obligation to pay Base Rent shall be abated for the period of such early
possession. All other terms of this Sublease (including but not limited to the
obligations to pay Sublessee’s Share of Common Area Operating Expenses, Real
Property Taxes and insurance premiums and to maintain the Premises) shall,
however, be in effect during such period. Any such early possession shall not
affect the Expiration Date.

3.2   Delay in Commencement. Sublessor
shall deliver possession of the Premises by the Commencement Date.

3.4   Sublessee Compliance. Sublessor
shall not be required to tender possession of the Premises to Sublessee until
Sublessee complies with its obligation to provide evidence of insurance.
Pending delivery of such evidence, Sublessee shall be required to perform all
of its obligations under this Sublease from and after the Start Date, including
the payment of Rent, notwithstanding Sublessor’s election to withhold
possession pending receipt of such evidence of insurance. Further, if Sublessee
is required to perform any other conditions prior to or concurrent with the
Start Date, the Start Date shall occur but Sublessor may elect to withhold
possession until such conditions are satisfied.

4.

Rent and Other Charges.

4.1   Rent Defined. All monetary
obligations of Sublessee to Sublessor under the terms of this Sublease (except
for the Security Deposit) are deemed to be rent (“Rent”). Rent shall be payable
in lawful money of the United States to Sublessor at the address stated herein
or to such other persons or at such other places as Sublessor may designate in
writing.

4.3   Utilities. Sublessor shall pay for
all water, gas, heat, light, power, local telephone telephone services, trash
disposal and other utilities and services excluding janitorial and long
distance telephone services supplied to the Premises, together with any taxes
thereon.

5.

Security Deposit.    Not
applicable.

6.

Agreed Use. The Premises shall be used and occupied only
for the design, manufacture, testing and assembly of electrical components and
related legal uses and for no other purpose.

7.

Master Lease.

7.1   Sublessor is the lessee of the Premises by virtue of a lease,
hereinafter the “Master Lease”, wherein 1515 S.
Manchester, LLC is the lessor, hereinafter the “Master
Lessor”.

7.2   This Sublease is and shall be at all times subject and subordinate
to the Master Lease.

7.3   The terms, conditions and respective obligations of Sublessor and
Sublessee to each other under this Sublease shall be the terms and conditions
of the Master Lease except for those provisions of the Master Lease which are
directly contradicted by this Sublease in which event the terms of this
Sublease document shall control over the Master Lease. Therefore, for the
purposes of this Sublease, wherever in the Master Lease the word “Lessor” is
used it shall be deemed to mean the Sublessor herein and wherever in the Master
Lease the word “Lessee” is used it shall be deemed to mean the Sublessee
herein.

7.4   During the term of this Sublease and for all periods subsequent
for obligations which have arisen prior to the termination of this Sublease,
Sublessee does hereby expressly assume and agree to perform and comply with,
for the benefit of Sublessor and Master Lessor, each and every obligation of
Sublessor under the Master Lease, with respect to the Premises hereunder only,
except for the following paragraphs which are excluded therefrom: 1.3, 1.5,
3.1, 4.3, 6.2(e), 6.2(f), 7.1(b), 7.2, 7.4(b), the parenthetical clause in 7.4
(c), 8.2, 8.3, 11, 13.1(c)(ii), 20, 22, 25, 30, 42, 51.

7.5   The obligations that Sublessee has assumed under paragraph 7.4
hereof are hereinafter referred to as the “Sublessee’s Assumed
Obligations”. The obligations that sublessee has not assumed under
paragraph 7.4 hereof are hereinafter referred to as the “Sublessor’s
Remaining Obligations”.

7.6   Sublessee shall hold Sublessor free and harmless from all
liability, judgments, costs, damages, claims or demands, including reasonable
attorneys fees, arising out of Sublessee’s failure to comply with or perform
Sublessee’s Assumed Obligations.

7.7   Sublessor agrees to maintain the Master Lease during the entire
term of this Sublease, subject, however, to any earlier termination of the
Master Lease without the fault of the Sublessor, and to comply with or perform
Sublessor’s Remaining Obligations and to hold Sublessee free and harmless from
all liability, judgments, costs, damages, claims or demands arising out of
Sublessor’s failure to comply with or perform Sublessor’s Remaining
Obligations.

7.8   Sublessor represents to Sublessee that the Master Lease is in full
force and effect and that no default exists on the part of any Party to the
Master Lease.

8.

Assignment of Sublease and
Default.

8.1   Sublessor hereby assigns and transfers to Master Lessor the
Sublessor’s interest in this Sublease, subject however to the provisions of
Paragraph 8.2 hereof.

8.2   Master Lessor, by executing this document, agrees that until a
Default (as defined in the Master Lease) shall occur under the Master Lease,
that Sublessor may receive, collect and enjoy the Rent accruing under this
Sublease. However, if a Default (as defined in the Master Lease) shall occur in
the Master Lease then Master Lessor may, at its option, receive and collect,
directly from Sublessee, all Rent owing and to be owed under this Sublease,
Master Lessor shall not, by reason of this assignment of the Sublease nor by
reason of the collection of the Rent from the Sublessee, be deemed liable to
Sublessee for any failure of the Sublessor to perform and comply with Sublessor’s
Remaining Obligations.

8.3   Sublessor hereby irrevocably authorizes and directs Sublessee upon
receipt of any written notice from the Master Lessor stating that a Default
exists under the Master Lease, to pay to Master Lessor the Rent due and to
become due under the Sublease, Sublessor agrees that Sublessee shall have the
right to rely upon any such statement and request from Master Lessor, and that
Sublessee shall pay such Rent to Master Lessor without any obligation or right
to inquire as to whether such Default exists and notwithstanding any notice
from or claim from Sublessor to the contrary and Sublessor shall have no right
or claim against Sublessee for any such Rent so paid by Sublessee.

8.4   No changes or modifications shall be made to this Sublease without
the consent of Master Lessor.

9.

Consent of Master Lessor.

9.1   In the event that the Master Lease requires that Sublessor obtain
the consent of Master Lessor to any subletting by Sublessor then, this Sublease
shall not be effective unless, within 10 days of the date hereof, Master Lessor
signs this Sublease thereby giving its consent to this Subletting.

9.2   In the event that the obligations of the Sublessor under the
Master Lease have been guaranteed by third parties then neither this Sublease,
nor the Master Lessor’s consent, shall be effective unless, within 10 days of
the date hereof, said guarantors sign this Sublease thereby giving their
consent to this Sublease.

9.3   In the event that Master Lessor does give such consent then:

(a)   Such consent shall not release
Sublessor of its obligations or alter the primary liability of Sublessor to pay
the Rent and perform and comply with all of the obligations of Sublessor to be
performed under the Master Lease.

(b)   The acceptance of Rent by
Master Lessor from Sublessee or any one else liable under the Master Lease
shall not be deemed a waiver by Master Lessor of any provisions of the Master
Lease.

(c)   The consent to this Sublease
shall not constitute a consent to any subsequent subletting or assignment.

(d)   In the event of any Default
of Sublessor under the Master Lease, Master Lessor may proceed directly against
Sublessor, any guarantors or any one else liable under the Master Lease or this
Sublease without first exhausting Master Lessor’s remedies against any other person
or entity liable thereon to Master Lessor.

(e)   Master Lessor may consent to
subsequent sublettings and assignments of the Master Lease or this Sublease or
any amendments or modifications thereto without notifying Sublessor or any one
else liable under the Master Lease and without obtaining their consent and such
action shall not relieve such persons from liability,

(f)    In the event of a Default
(as defined in the Master Lease) under the Master Lease, then Master Lessor may
exercise any or all of its rights and remedies under the Master Lease without
regard to the existence of this Sublease or, at its option and without being
obligated to do so, may require Sublessee to attorn to Master Lessor on the
terms and conditions of this Sublease in which event Master Lessor shall
undertake the obligations of Sublessor under this Sublease from the time of the
exercise of said option to termination of this Sublease but Master Lessor shall
not be liable for any prepaid Rent nor any Security Deposit paid by Sublessee,
nor shall Master Lessor be liable for any other Defaults of the Sublessor under
the Sublease.

9.4   The signatures of the Master Lessor and any Guarantors of
Sublessor at the end of this document shall constitute their consent to the
terms of this Sublease.

9.5   Master Lessor acknowledges that, to the best of Master Lessor’s
knowledge, no Default presently exists under the Master Lease of obligations to
be performed by Sublessor and that the Master Lease is in full force and
effect.

9.6   Such consent, and this Sublease, shall not be construed to modify,
waive or affect any of the terms or provisions of the Master Lease, regardless
of any inconsistency between this Sublease and the Master Lease. Without
limiting the foregoing, this Sublease and Master Lessor’s consent to it do not
create any obligations of Master Lessor to Sublessee or any rights of Sublessee
enforceable against Master Lessor.

11.   Representations and Indemnities of Broker
Relationships. The Parties each represent and warrant to the other
that it has had no dealings with any person, firm, broker or finder (other than
the Brokers, if any) in connection with this Sublease, and that no one other
than said named Brokers is entitled to any commission or finder’s fee in
connection herewith. Sublessee and Sublessor do each hereby agree to indemnify,
protect, defend and hold the other harmless from and against liability for
compensation or charges which may be claimed by any such unnamed broker, finder
or other similar party by reason of any dealings or actions of the indemnifying
Party, including any costs, expenses, attorneys’ fees reasonably incurred with
respect thereto.

12.   Attorney’s fees. If any Party or
Broker brings an action or proceeding involving the Premises whether founded in
tort, contract or equity, or to declare rights hereunder, the Prevailing Party
(as hereafter defined) in any such proceeding, action, or appeal thereon, shall
be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same
suit or recovered in a separate suit, whether or not such action or proceeding
is pursued to decision or judgment. The term, “Prevailing
Party” shall include, without limitation, a Party or Broker who
substantially obtains or defeats the relief sought, as the case may be, whether
by compromise, settlement, judgment, or the abandonment by the other Party or
Broker of its claim or defense. The attorneys’ fees award shall not be computed
in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys’ fees reasonably incurred. In addition, Sublessor shall
be entitled to attorneys’ fees, costs and expenses incurred in the preparation
and service of notices of Default and consultations in connection therewith,
whether or not a legal action is subsequently commenced in connection with such
Default or resulting Breach ($200 is a reasonable minimum per occurrence for
such services and consultation).

13.   No Prior or Other Agreements; Broker
Disclaimer. This Sublease contains all agreements between the
Parties with respect to any matter mentioned herein, and no other prior or
contemporaneous agreement or understanding shall be effective.

14.   Not used.

15.   Sublessee and Sublessor acknowledge that Sublessee may be required
to move to new operating space within 1515 S. Manchester during the term
of the agreement contemplated by the Sublease. Sublessor and Sublessee agree to
cooperate with such move to achieve minimal business disruption to Sublessee
and Sublessor.

16.   Sublessee shall be granted access to the gymnasium and cafeteria
located in 1515 S. Manchester Ave., Anaheim.

17.   Security Deposit: not applicable

18.   Sublessee agrees to maintain reasonable liability coverage for
occurrence in its premises, and to name Master Lessor as an additional insured.

19.   Not used.

20.   Not used.

21.   Sublessee may sublet the premises with the prior consent of
Sublessor and Master Lessor, which consent shall not be unreasonably withheld.

ATTENTION: NO REPRESNTATION OR RECOMMENDATION IS MADE BY ANY
REAL ESTATE BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX
CONSEQUENCES OF THIS SUBLEASE OR THE TRANSACTION TO WHICH IT RELATES. THE
PARTIES ARE URGED TO:

1.                                      SEEK ADVICE OF COUNSEL AS TO
THE LEGAL AND TAX CONSEQUENCES OF THIS SUBLEASE.

2.                                      RETAIN APPROPRIATE
CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID
INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF
HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, THE STRUCTURAL INTEGRITY, THE
CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE
PREMISES FOR SUBLESSEE’S INTENDED USE.

	
  Executed at:

  	
   

  	
  Executed at:

  
	
  Anaheim CA.

  	
   

  	
  Anaheim CA.

  
	
  on:

  	
   

  	
  on:

  
	
  September 30,
  2003

  	
   

  	
  September 30,
  2003

  
	
   

  	
   

  	
   

  
	
  By SUBLESSOR:

  	
   

  	
  By SUBLESSEE:

  
	
  Odetics, Inc., a
  Delaware corporation

  	
   

  	
  Maij, Inc., a
  California Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  /s/ Gregory Miner

  	
   

  	
  /s/ Wesley R.
  Appleby

  
	
  Name Printed: Gregory Miner

  	
   

  	
  Name Printed: Wesley R. Appleby

  
	
   

  	
   

  	
   

  
	
  Title: Chief Executive Officer

  	
   

  	
  Title: President
  & CEO

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  /s/ Gary Smith

  	
   

  	
   

  
	
  Name Printed: Gary Smith

  	
   

  	
  Name Printed:

  

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: Secretary

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address: 1515 S. Manchester Ave.

  	
   

  	
  Address: 1515 S. Manchester Ave.

  
	
   

  	
   

  	
   

  
	
  Anaheim, CA 92802

  	
   

  	
  Anaheim, CA 92802

  
	
   

  	
   

  	
   

  
	
  Telephone/Facsimile:

  	
   

  	
  Telephone/Facsimile:

  
	
   

  	
   

  	
   

  
	
  Federal ID No.

  	
   

  	
  Federal ID No.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consent to the above Sublease is hereby given.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed at:

  	
   

  	
  Executed At:

  
	
   

  	
   

  	
   

  
	
  on:

  	
   

  	
  on:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By MASTER LESSOR:

  	
   

  	
  By GUARANTOR(S): none

  
	
  1515 S. Manchester, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name Printed:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  Address:

  
	
  /s/ William McFarland

  	
   

  	
   

  
	
  Name Printed: William
  McFarland

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  Name Printed:

  
	
   

  	
   

  	
   

  
	
  Name Printed:

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:18800 Von Karman Ave., Ste. 100

  Irvine, CA 92612

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone/Facsimile:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Federal
  ID No.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]