Document:

ex_140045.htm

ABRAXAS PETROLEUM CORPORATION.

RESTRICTED STOCK AWARD AGREEMENT

 

PERFORMANCE SHARES

 

This Restricted Stock Award Agreement (the “Agreement”), made as of the 1st day of April, 2019 (the “Grant Date”) by and between Abraxas Petroleum Corporation, a Nevada corporation (the “Company”), and _______ (the “Participant”), evidences the grant by the Company of an Award of Restricted Stock (the “Award”) to the Participant on such date and the Participant’s acceptance of the Award in accordance with the provisions of the Abraxas Petroleum Corporation 2005 Employee Long-Term Equity Incentive Plan, as amended or restated from time to time (the “Plan”). The Company and the Participant hereby agree as follows:

 

1.     Basis for Award. This Award is made under the Plan pursuant to Section 6 thereof.

 

2.     Stock Awarded.

 

(a)     The Company hereby awards to the Participant, in the aggregate, ________shares of Common Stock (“Restricted Stock”), which shall be subject to the restrictions and conditions set forth in the Plan and in this Agreement.

 

(b)     Each certificate issued in respect of the Restricted Stock shall be registered in the Participant’s name and contain the following legend:

 

“THE TRANSFERABILITY OF THIS CERTIFICATE AND THE COMMON STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE ABRAXAS PETROLEUM CORPORATION 2005 EMPLOYEE LONG-TERM EQUITY INCENTIVE PLAN AND THE RESTRICTED STOCK AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND ABRAXAS PETROLEUM CORPORATION IN RESPECT OF SUCH STOCK.”

 

(c)     No shares of Restricted Stock shall be transferred on the books of the Company nor shall any attempted sale, transfer, assignment, pledge or other disposition of any shares of Restricted Stock be effective unless and until the terms and provisions of this Agreement are first complied with. Any attempted sale, transfer, assignment, pledge or other disposition of any shares of Restricted Stock that does not comply with the provisions of this Agreement shall be invalid and of no effect.

 

(d)     Except as provided in the Plan or this Agreement, the restrictions on the Restricted Stock covered by this Agreement are that the stock will be forfeited by the Participant and all of the Participant’s rights to such stock shall immediately terminate without any payment or consideration by the Company, in the event of any sale, assignment, transfer, hypothecation, pledge or other alienation of such Restricted Stock made or attempted, whether voluntary or involuntary, and if involuntary whether by process of law in any civil or criminal suit, action or proceeding, whether in the nature of an insolvency or bankruptcy proceeding or otherwise, except that the Restricted Stock may be transferred by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant, unless the Committee permits further transferability, on a general or specific basis, in which case the Committee may impose conditions and limitations on any permitted transferability.

 

(e)     Subject to the terms of this Agreement and the Plan, upon termination of the Participant’s employment with the Company for any reason, all Restricted Stock may vest or be forfeited in accordance with the terms and conditions established by the Committee or as specified in this Agreement. Each Restricted Stock Award may, in the sole and absolute discretion of the Committee, have different forfeiture and vesting provisions.

 

3.     Vesting. The vesting of the Participant’s rights and interest in the shares of Restricted Stock shall be determined in accordance with this Section 3. The extent to which the Participant’s shares of Restricted Stock become vested and non-forfeitable shall be based upon the certification by the Compensation Committee that the performance goals specified in Exhibit A to this Agreement (the “Performance Goals”) have been satisfied  Except as set forth in Section 4, if the Participant ceases to be an employee of the Company for any reason, at any time prior to the vesting date, vesting of Restricted Stock shall cease and any unvested Restricted Stock shall automatically be forfeited upon cessation of Participant’s employment with the Company.

 

4.     Change of Control. In the event that (a) Participant’s employment is terminated by the Company (or a Subsidiary which is his or her employer) for reasons other than Misconduct (as defined in the Plan) or if a Participant voluntarily terminates his or her employment for Good Reason (as defined in the Plan) within 24 months following a Change of Control (as defined in the Plan), or (b) the Plan is terminated by the Company following a Change of Control without provision for the continuation of shares of Restricted Stock awarded hereby,the vesting of all shares of Restricted Stock which have not otherwise expired shall be Accelerated (as defined in the Plan). If, upon a Change of Control, awards in other shares or securities are substituted for the shares of Restricted Stock awarded hereby, and immediately following the Change of Control the Participant becomes employed (if the Participant was an employee immediately prior to the Change of Control) by the entity into which the Company merged, or the purchaser of all or substantially all of the assets of the Company, or a successor to such entity or purchaser, the Participant shall not be treated as having terminated employment or service for purposes of Section 3 or the Plan until such time as the Participant’s employment or service with the merged entity or purchaser (or successor), as applicable, is terminated.

 

5.     Beneficiary Designations. The Participant shall file with the Secretary of the Company a written designation of his beneficiary (“Designated Beneficiary”) to whom Restricted Stock otherwise due the Participant shall be distributed in the event of Participant’s death. The Participant shall have the right to change the Designated Beneficiary from time to time, provided, however, that any change shall not become effective until received in writing by the Secretary of the Company. If any Designated Beneficiary shall survive the Participant but shall die before receiving all of the Restricted Stock under the Plan, any remaining Restricted Stock due the Participant shall be distributed to the deceased Designated Beneficiary’s estate. If there is no Designated Beneficiary on file at the time of the Participant’s death, or if the Designated Beneficiary has predeceased such Participant, the payment of any remaining benefits shall be made to the Participant’s estate.

 

6.     Prerequisites to Benefits. Neither the Participant, nor any person claiming through the Participant, shall have any right or interest in the Restricted Stock awarded hereunder, unless and until all terms, conditions and provisions of this Agreement and the Plan which affect the Participant or such other person shall have been complied with as specified herein or in the Plan.

 

7.     Compliance with Laws and Regulations. The issuance and transfer of Restricted Stock shall be subject to compliance by the Company and the Participant with all applicable requirements of securities laws and with all applicable requirements of any stock exchange on which the Restricted Stock may be listed at the time of such issuance or transfer, and further subject to the approval of counsel for the Company with respect to such compliance. The Participant understands that the Company is under no obligation to register or qualify the Restricted Stock with the Securities and Exchange Commission (“SEC”), any state securities commission or any stock exchange to effect such compliance.

 

8.     Tax Withholding.

 

(a)     The Participant shall pay to the Company promptly upon request, and in any event at the time the Participant recognizes taxable income in respect of the Restricted Stock (whether in connection with the grant or vesting of the Restricted Stock, the making of an election under Section 83(b) of the Code in connection with the grant of the Restricted Stock as described in Section 2(a) or otherwise), an amount equal to the taxes the Company determines it is required to withhold under applicable tax laws with respect to the Restricted Stock. Such payment may be made by any of, or a combination of, the following methods: (i) cash or check; (ii) out of the Participant’s current compensation; (iii) if permitted by the Committee in its discretion, surrender of other shares of Common Stock of the Company which (a) in the case of shares initially acquired from the Company (upon exercise of a stock option or otherwise), have been owned by the Participant for such period (if any) as may be required to avoid a charge to the Company’s earnings, and (b) have a Fair Market Value on the date of surrender equal to the amount required to be withheld; or (iv) if permitted by the Committee in its discretion, by electing to have the Company withhold or otherwise reacquire from the Participant Shares of Restricted Stock that vest pursuant to the terms hereof having a Fair Market Value equal to the minimum statutory amount required to be withheld in connection with the vesting of such Shares. For these purposes, the Fair Market Value of the Shares to be withheld or repurchased, as applicable, shall be determined on the date that the amount of tax to be withheld is to be determined (the “Tax Date”).

 

(b)     All elections by the Participant to have shares of Restricted Stock withheld or repurchased to satisfy tax withholding obligations shall be made in writing in a form acceptable to the Committee and shall be subject to the following restrictions:

 

(i)     the election must be made on or prior to the applicable Tax Date;

 

(ii)     once made, the election shall be irrevocable as to the particular Shares as to which the election is made;

 

(iii)     all elections shall be subject to the consent or disapproval of the Committee; and

 

(iv)     if the Participant is subject to Section 16 of the Exchange Act, the election must comply with the applicable provisions of Rule 16b-3 promulgated under the Exchange Act and shall be subject to such additional conditions or restrictions as may be required thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions.

 

(c)     The Participant hereby acknowledges that he or she may file an election pursuant to Section 83(b) of the Code to be taxed currently on the fair market value of the shares of Restricted Stock (less any purchase price paid for the shares), provided that such election must be filed with the Internal Revenue Service no later than thirty (30) days after the grant of such Restricted Stock. The Participant will seek the advice of his or her own tax advisors as to the advisability of making such a Section 83(b) election, the potential consequences of making such an election, the requirements for making such an election, and the other tax consequences of the Restricted Stock award under federal, state, and any other laws that may be applicable. The Company and its affiliates and agents have not and are not providing any tax advice to the Participant.

 

9.     No Right to Continued Service. Nothing in this Agreement shall be deemed by implication or otherwise to confer upon the Participant the right to continue in the service of the Company, or impose any limitation on any right of the Company or any of its affiliates to terminate the Participant’s service at any time for any reason.

 

10.     Representations and Warranties of Participant. The Participant represents and warrants to the Company that:

 

(a)     The Participant has received a copy of the Plan and has read and understands the terms of the Plan and this Agreement,and agrees to be bound by their terms and conditions. The Participant acknowledges that there may be adverse tax consequences upon the vesting of Restricted Stock or disposition of the Restricted Stock once vested, and that the Participant should consult a tax adviser prior to such time.

 

(b)     The Participant agrees to sign such additional documentation as may reasonably be required from time to time by the Company.

 

(c)     The Participant represents and agrees the Restricted Stock is being acquired without a view to distribution thereof.

 

11.     Adjustments to Shares. Pursuant to Section 5 of the Plan, the Committee may make appropriate adjustments to the number and class of shares relating to Restricted Stock as it deems appropriate, in its sole discretion, to preserve the value of this Award. The Committee’s adjustment shall be made in accordance with the provisions of Section 5 of the Plan and shall be effective and final, binding and conclusive for all purposes of the Plan and this Agreement.

 

12.     Governing Law; Modification. This Agreement shall be governed by the laws of the State of Texas without regard to the conflict of law principles. The Agreement may not be modified except in writing signed by both parties.

 

13.     Defined Terms. Except as otherwise provided herein, or unless the context clearly indicates otherwise, capitalized terms used but not defined herein have the definitions as provided in the Plan. The terms and provisions of the Plan are incorporated herein by reference, and the Participant hereby acknowledges receiving a copy of the Plan. In the event of a conflict or inconsistency between the discretionary terms and provisions of the Plan and the provisions of this Agreement, this Agreement shall govern and control.

 

14.     Miscellaneous. The masculine pronoun shall be deemed to include the feminine, and the singular number shall be deemed to include the plural unless a different meaning is plainly required by the context.

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date first above written.

 

ABRAXAS PETROLEUM CORPORATION

 

 

 

By:

Name:

Title:

 

 

 

PARTICIPANT

 

 

Printed Name:

 

 

 

 

 

ABRAXAS PETROLEUM CORPORATION.

RESTRICTED STOCK AWARD AGREEMENT

 

Exhibit A

 

The shares of Restricted Stock granted pursuant to this Agreement (the “Performance Shares”) will vest on the third anniversary of the grant date set forth in the Agreement based on the Company’s achievement of performance goals. The performance goals for 2019 will be based on Relative Total Shareholder Return (“Relative TSR”) versus a group of seven comparable companies (“Peer Group”) over a three-year period starting on December 31, 2018. The Peer Group consists of the following companies for the 2019 Performance Share Awards: Approach Resources, Inc. (AREX), Contango Oil & Gas Company (MCF), Earthstone Energy, Inc. (ESTE), Halcon Resources (HK), Lilis Energy, Inc. (LLEX), Ring Energy, Inc. (REI) and Rosehill Resources Inc (ROSE).

 

Relative TSR will be calculated using each Peer Group company’s share price appreciation and dividends paid to show the total return to the shareholder expressed as an annualized percentage. The TSR for each of the peers and Abraxas will be ranked from the highest TSR to the lowest TSR. Participants will have the ability to earn a payout of the award versus the target using the following scale:

 

	
			Abraxas Relative TSR Performance

			
	
			Performance Payout

				
			Rank

				
			Payout vs. Target

			
	
			Maximum

				
			1

				
			200%

			
	 	
			2

				
			150%

			
	
			Target

				
			3

				
			100%

			
	 	
			4

				
			75%

			
	 	
			5

				
			50%

			
	
			Threshold

				
			6

				
			25%

			
	 	
			7

				
			0%

			
	 	
			8

				
			0%

			

 

 

 

Should Abraxas’ Total Shareholder Return be a negative percentage at the end of the three-year time period, none of the performance shares will vest. Vesting is accelerated as set forth in Section 4 of this Agreement Upon a Change of Control, the Performance Shares will vest in full (at a rate of no greater or less than 100% of the original award) in the event that on the effective date of the Change of Control the Absolute Total Shareholder Return between the Grant Date and the effective date of the Change of Control is a positive number.

 

The distribution of the Stock certificates, if performance goals are met, will be April 2022.MANAGEMENT AGREEMENT

    This AGREEMENT made as of the 1st day of April 2019 by and among CERES MANAGED FUTURES
        LLC, a Delaware limited liability company (“CMF”), CERES TACTICAL COMMODITY L.P., a New York limited partnership (the “Partnership”) and NORTHLANDER COMMODITY ADVISORS LLP, a limited liability partnership registered in England and Wales
        (“Northlander” or the “Advisor”).

    W I T N E S S E T H :

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

    WHEREAS, such trading is to be conducted directly or through investment in CMF NL
        Master Fund LLC (the “Master Fund”) of which CMF is the trading manager and Northlander is the advisor; and

    WHEREAS, the Fifth Amended and Restated Limited Partnership Agreement dated as of October 31, 2016,
        as amended (the “Partnership Agreement”) permits CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions for the Partnership, which advisors may or may not have any prior experience managing client funds;
        and

    WHEREAS, the Advisor claims an exemption from registration as a commodity trading advisor with the
        Commodity Futures Trading Commission (“CFTC”) pursuant to CFTC Rule 4.14(a)(10) and is authorized and regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom with firm reference number 587706; and

    WHEREAS, CMF is registered as a commodity pool operator with the CFTC and is a member of the National
        Futures Association (“NFA”); and

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

    NOW, THEREFORE, the parties agree as follows:

    1.          DUTIES OF THE ADVISOR.  (a) For the period and on the terms and conditions of this Agreement, effective April 1, 2019, the Advisor shall have sole authority and responsibility, as
        one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of the assets and funds of the Partnership, whether directly or indirectly through the Master Fund, allocated to it from time to time by CMF in
        commodity interests, including cleared commodity futures, cleared options on futures and exchange cleared swap transactions. All such trading on behalf of the Partnership shall be (i) in accordance with the trading policies set forth in Appendix B
        attached hereto as such trading policies may be changed from time to time upon receipt by the Advisor of prior written notice of such change (the “CMF Trading Policies”), and (ii) pursuant to the trading strategy selected by CMF to be utilized by the Advisor in managing the Partnership’s assets. 
          CMF has initially selected the Advisor’s Northlander Commodity Program (the “Program”), as described in Appendix A attached hereto, to manage the Partnership’s assets allocated to it.  Any open positions or other investments at the time of receipt of such notice of a
        change in CMF Trading Policy shall not be deemed to violate the changed CMF Trading Policy and shall be closed or sold in the ordinary course of trading.  The Advisor may not deviate from the CMF Trading Policies without the prior written consent
        of the Partnership given by CMF.  The Advisor makes no representation or warranty that the trading to be directed by it for the Partnership will be profitable or will not incur losses.

    
      1

      
        

    

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

    (c)          The initial allocation of
        the Partnership’s assets to the Advisor shall be made to the Program, as described in Appendix A. In the event the Advisor wishes to use a trading
        system or methodology other than or in addition to the Program in connection with its trading for the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF prior written notice of its intention to utilize such
        different trading system or methodology and CMF consents thereto in writing.  In addition, the Advisor will provide five days’ prior written notice to CMF of any change in the trading system or methodology to be utilized for the Partnership which
        the Advisor deems material.  If the Advisor deems such change in system or methodology or in markets traded to be material, the changed system or methodology or markets traded will not be utilized for the Partnership without the prior written
        consent of CMF.  In addition, the Advisor will notify CMF of any changes to the trading system or methodology that would require a change in the description of the trading strategy or methods described in Appendix A to be materially accurate.  

    
      2

      
        

    

    Further, the Advisor will provide the Partnership with a current list of all commodity interests to be traded for the Partnership’s account,
        which is attached as Appendix C to this Agreement, and the Advisor will not trade any additional commodity interests for such account without providing notice thereof to CMF and receiving CMF’s written approval.  The
        Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets under the Advisor’s management together with all other matters deemed by the Advisor to be material changes to its business not previously reported to CMF. 
        The Advisor shall provide periodic statements setting out certain details in relation to the activities undertaken and of the performance of the Partnership during the reporting period. The periodic statement shall include all information required
        by Directive 2014/65/EU on markets in financial instruments, Regulation (EU) No 600/2014 on markets in financial instruments, and any secondary legislation, rules, regulations and procedures made pursuant thereto (“MiFID”) to be provided in such
        statements, including a statement of the contents and the valuation of the Partnership, on a periodic basis which shall be at such frequency permitted by applicable regulation and agreed with CMF. The basis of all valuations will be as stated in
        the first periodic statement unless otherwise notified. Unless otherwise agreed, the Advisor will not provide information about executed transactions on a transaction-by-transaction basis. The Advisor further agrees that it will convert foreign
        currency balances (not required to margin positions denominated in a foreign currency) to U.S. dollars no less frequently than monthly.  U.S. dollar equivalents in individual foreign currencies of more than $100,000 will be converted to U.S.
        dollars within one business day after such funds are no longer needed to margin non-U.S. dollar based positions.

    (d)          The Advisor agrees to
        make all material disclosures to the Partnership regarding itself and its principals as defined in Part 4 of the CFTC’s regulations (“principals”), its manager(s), employees and member(s), their trading performance and general trading methods, its
        customer accounts (but not the identities of or identifying information with respect to its customers) and otherwise as are required in the reasonable judgment of CMF to be made in any filings required by federal or state law or NFA rule or order. 
        Notwithstanding Sections 1(d) and 4(d) of this Agreement, the Advisor is not required to disclose the actual trading results of proprietary accounts of the Advisor or its principals unless CMF reasonably determines that such disclosure is required
        in order to fulfill its fiduciary obligations to the Partnership or the reporting, filing or other obligations imposed on it by federal or state law or NFA rule or order.  The Partnership and CMF acknowledge that the trading advice to be provided
        by the Advisor is a property right belonging to the Advisor and that they will keep all such advice confidential. The Partnership and CMF further acknowledge that the Advisor may disclose any confidential information to a competent regulatory
        authority as may be required in order to assist the Partnership and CMF in complying with its obligations under applicable law in connection with the services provided under this Agreement; provided that the Advisor will (i) promptly, but at least
        within 48 hours, notify the Partnership and CMF of the intent to disclose such information, (ii) seek and obtain the Partnership’s and CMF’s consent to such disclosure and (iii) provide the Partnership and CMF with an opportunity to review the
        information to be disclosed and coordinate with the Advisor in drafting any related disclosure.

    
      3

      
        

    

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

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

    (g)          The
        Advisor shall assume financial responsibility for any errors committed or caused by it in transmitting orders for the purchase or sale of commodity interests for the Partnership’s account including payment to the brokers of the floor brokerage
        commissions, exchange, NFA fees, and other transaction charges and give-up charges incurred by the brokers on such trades.  The Advisor shall have an affirmative obligation to promptly notify CMF in accordance with the provisions of Section
        8(a)(iii) of any errors (as described above) with respect to the account, and the Advisor shall use its commercially reasonable efforts to identify and promptly notify CMF of any order or trade which the Advisor reasonably believes was not executed
        in accordance with its instructions to any broker utilized to execute orders for the Partnership.

    (h)          For the purposes of the
        rules and guidance contained in the Handbook issued by the FCA (“FCA Rules”) and based on information obtained in respect of CMF, the Advisor has categorized CMF, acting as agent for the Partnership, as a professional client in relation to the
        services provided under this Agreement. It is CMF’s sole responsibility to keep the Advisor informed about any change to CMF’s circumstances which could affect the Advisor’s categorization of CMF as a professional client. CMF acknowledges that it
        may request that the Advisor considers its re-categorization as a retail client, but it is not the Advisor’s policy to accept requests to be treated as a retail client for any service under this Agreement.

    (i)          Based on information
        provided by CMF, in providing the services, the Advisor shall be responsible for assessing the suitability of investments for CMF as required by the FCA Rules. The reason for assessing suitability is to enable the Advisor to act in CMF’s best
        interests. As CMF is a professional client, the Advisor is entitled to assume that CMF has the necessary level of experience and knowledge in order to understand the risks involved in the relevant transaction. CMF shall be responsible for ensuring
        that information provided to the Advisor is kept accurate, complete and up to date so as to enable the Advisor to assess suitability for CMF.

    
      4

      
        

    

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

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

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

    (c)          “New Trading Profits”
        shall mean the excess, if any, of Net Assets of the Partnership managed by the Advisor at the end of the fiscal period over Net Assets of the Partnership managed by the Advisor at the end of the highest previous fiscal period or Net Assets of the
        Partnership allocated to the Advisor at the date trading commences by the Advisor for the Partnership, whichever is higher, and as further adjusted to eliminate the effect on Net Assets of the Partnership resulting from new capital contributions,
        redemptions, reallocations or capital distributions, if any, made during the fiscal period decreased by interest or other income, not directly related to trading activity, earned on the Partnership’s assets during the fiscal period, whether the
        assets are held separately or in margin accounts.  Ongoing expenses shall be attributed to the Advisor based on the Advisor’s proportionate share of Net Assets of the Partnership.  Ongoing expenses shall not include expenses of litigation not
        involving the activities of the Advisor on behalf of the Partnership.  Ongoing expenses include offering and organizational expenses of the Partnership.  No Incentive Fee shall be paid to the Advisor until the end of the first calendar year of the
        Advisor’s trading for the Partnership, which fee shall be based on New Trading Profits (if any) earned from the commencement of trading by the Advisor on behalf of the Partnership through the end of the first calendar year of such trading (which
        for the avoidance of doubt, shall be December 31, 2019).  Interest income earned, if any, shall not be taken into account in computing New Trading Profits earned by the Advisor.  If Net Assets of the Partnership allocated to the Advisor are reduced
        due to redemptions, distributions or reallocations (net of additions), there shall be a corresponding proportional reduction in the related loss carryforward amount that must be recouped before the Advisor is eligible to receive another Incentive
        Fee.

    
      5

      
        

    

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

    (e)          The Advisor shall
        separately provide information on costs and associated charges to CMF including all information required by MiFID to be provided in such disclosures.

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

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

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

    
      6

      
        

    

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

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

    5.          TERM.  (a) This Agreement shall continue in effect until December 31, 2019 (the
        “Initial Termination Date”), unless otherwise terminated as set forth in this Section.  If this Agreement is not terminated on the Initial Termination Date, as provided for herein, then, this Agreement shall automatically renew for an additional
        one-year period and shall continue to renew for additional one-year periods until this Agreement is otherwise terminated, as provided for herein. At any time during the term of this Agreement, CMF may terminate this Agreement upon 30 days’ notice
        to the Advisor.  At any time during the term of this Agreement, CMF may elect to immediately terminate this Agreement if (i) the Net Asset Value per Unit of the Partnership shall decline as of the close of business on any day to $400 or less; (ii)
        the Net Assets of the Partnership allocated to the Advisor, either directly or indirectly through a master fund (adjusted for redemptions, distributions, withdrawals or reallocations, if any) decline by 30% or more as of the end of a trading day
        from such Net Assets of the Partnership’s previous highest value; (iii) limited partners owning at least 50% of the outstanding units of the Partnership (excluding interests owned by CMF, an affiliate of CMF other than the Partnership, or any of
        their employees) shall vote to require CMF to terminate this Agreement; (iv) the Advisor fails to comply with the material terms of this Agreement; (v) CMF, in good faith, reasonably determines that the performance of the Advisor has been such that
        CMF’s fiduciary duties to the Partnership require CMF to terminate this Agreement; (vi) CMF reasonably believes that the application of speculative position limits will substantially affect the performance of the Partnership; (vii) the Advisor
        fails to conform to the CMF Trading Policies, as they may be changed from time to time; (viii) the Advisor merges, consolidates with another entity, sells a substantial portion of its assets (in each case, to the extent that Ulf Torvald Ek would no
        longer be the controlling principal of Advisor), or the Advisor becomes bankrupt or insolvent, (ix) Ulf Torvald Ek dies, becomes incapacitated for a period of at least 20 consecutive business days, leaves the employ of the Advisor, ceases to
        control the Advisor or is otherwise not managing the trading programs or systems of the Advisor, (x) the Advisor fails to maintain its exemption from registration as a commodity trading advisor with the CFTC pursuant to CFTC Rule 4.14(a)(10)
        (unless the Advisor registers as a commodity trading advisor with the CFTC and becomes a member of NFA prior to losing such exemption), or its registration or authorization with any other regulatory authority (including the FCA) is terminated or
        suspended; or (xi) CMF reasonably believes in good faith that the Advisor has contributed or may contribute to any material operational, business or reputational risk to CMF or CMF’s affiliates.  This Agreement will immediately terminate upon
        dissolution of the Partnership or upon cessation of trading by the Partnership prior to dissolution.

    
      7

      
        

    

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

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

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

    
      8

      
        

    

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

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

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

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

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

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

    
      9

      
        

    

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

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

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

    7.          REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

    (a)          The Advisor represents
        and warrants that:

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

    (ii)          The information with
        respect to the Advisor set forth in the actual performance tables in the Memorandum, if any, is based on (a) all of the customer accounts managed on a discretionary basis by the Advisor’s principals and/or the Advisor during the period covered by
        such tables and required to be disclosed therein, or (b) with the written consent of CMF, a representative account of the Program.  Such performance has been prepared by the Advisor or its agents in accordance with applicable CFTC and NFA rules and
        guidance, including, but not limited to, CFTC Rule 4.25.  The annual financial statements of Northlander Commodity Master Fund, Ltd. for the period January 1, 2017 through December 31, 2017 have been examined by an independent certified public
        accountant and the report thereon has been provided to CMF.

    
      10

      
        

    

    (iii)          The Advisor will be
        acting as a commodity trading advisor with respect to the Partnership and not as a securities investment adviser and claims an exemption from registration as a commodity trading advisor pursuant to CFTC Rule 4.14(a)(10) and is in compliance with
        any other registration and licensing requirements as shall be necessary to enable it to perform its obligations hereunder.  The Advisor agrees to maintain such exemption from registration as a commodity trading advisor pursuant to CFTC Rule
        4.14(a)(10), or, in the alternative, to register as a commodity trading advisor with the CFTC and become a member of NFA, and maintain any other registrations and licenses during the term of this Agreement.

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

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

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

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

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

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

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

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

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

    
      11

      
        

    

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

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

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

    (viii)          Any restrictions to
        which CMF and the Partnership are subject relating to this Agreement or any transaction contemplated by this Agreement and the level of risk to be reflected in the Advisor’s exercise of discretion (whether as a matter of legislation, its governing
        documentation or otherwise), including their ability to bear losses and their risk tolerance, have been notified to the Advisor and the Advisor shall be entitled to assume that no restrictions other than those notified to it apply.

    (ix)          CMF has read and
        understood the risk disclosures that have been separately notified to CMF by the Advisor and which provide a description of the nature and risks of financial instruments including appropriate guidance on, and warnings of, the risks associated with
        investments in financial instruments or in respect of particular investment strategies.

    (x)          Information
        or documentation provided by CMF or its agents to the Advisor pursuant to this Agreement is accurate, complete, up-to-date and not misleading in any respect and CMF has notified the Advisor of all such information which is reasonably relevant to
        the performance of the Advisor’s duties under this Agreement.

    (xi)          CMF
        has received, read and fully understands a detailed description of the Advisor’s trading strategies, and it and its advisors have had the opportunity to ask questions of and receive answers from the Advisor and its principals concerning such
        strategies.

    (c)          All
        representations, warranties and covenants contained in this Agreement shall be continuing during the term of this Agreement and the provisions of this Agreement shall survive the termination of this Agreement with respect to any matter arising
        while this Agreement was in effect.  Each party hereby agrees that as of the date of this Agreement it is, and during its term shall be, in compliance with its representations, warranties and covenants herein contained.  In addition, if at any time
        any event occurs which would make any of such representations, warranties or covenants not true, the affected party will use its best efforts to promptly notify the other parties of such fact.

    
      	
              8.

            	
              COVENANTS
                      OF THE ADVISOR, CMF AND THE PARTNERSHIP.

            

    

    
      
        	

              	(a)	
                 The Advisor agrees as follows:

              

      

    

    
      12

      
        

    

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

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

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

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

    (v)          The Advisor will
        promptly notify CMF if it furnishes commodity trading advice to 12 persons located in the United States during the course of any preceding 12 month period.

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

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

    
      13

      
        

    

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

    (ix)          Subject to the receipt
        from CMF of specific instructions in relation to the execution of orders, the Advisor will at all times comply with its policy relating to the execution of orders and decisions to deal on behalf of clients as required by the FCA Rules and as
        amended by the Advisor from time to time (“Order Execution Policy”) and will act in the best interests of CMF.

    (x)          The Advisor will keep or
        cause to be kept records of investments, sales, disbursements and other transactions carried out by the Advisor under this Agreement in accordance with applicable law.

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

    (i)          CMF and the Partnership
        will comply with all applicable laws, including rules and regulations of the CFTC, NFA, swap execution facility and/or the commodity exchange on which any particular transaction is executed, to the extent that the failure to so comply would have a
        materially adverse effect on CMF’s ability to act as described herein, the Partnership Agreement and in the Memorandum.

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

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

     

      

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

    

    
      14

      
        

    

    (iv)          The Advisor and any
        affiliate may effect transactions in which the Advisor, any affiliate, another client of the Advisor or of an affiliate has, directly or indirectly, a material interest or a relationship of any description with another party, which involves or may
        involve a potential conflict with the Advisor’s duty to CMF. The Advisor will ensure that such transactions are effected on terms which are not materially less favorable to CMF than if the conflict or potential conflict had not existed. Any
        conflicts which the Advisor is not able to prevent or manage effectively shall be promptly disclosed by the Advisor to CMF. The Advisor’s policy relating to the identification of conflicts of interest that arise, or may arise, when providing
        services and whose existence may damage the interests of clients and that specifies procedures in order to prevent or manage such conflicts as required by the FCA Rules and as amended by the Advisor from time to time (“Conflicts of Interest
        Policy”) sets out types of actual or potential conflicts of interest which affect the Advisor’s business and provides details of how these are identified, prevented or managed. A summary of the Conflicts of Interest Policy has been separately
        notified to CMF. Further details of the Conflicts of Interest Policy are available to CMF on request.

    (v)          In respect of certain
        commodity derivative contracts, position limits may be imposed by an EEA regulator, including the FCA, and position management controls may be imposed by a trading venue. The Advisor shall not assume regulatory responsibility for ensuring that CMF
        complies with any position limit that an EEA regulator, including the FCA, might apply to any commodity derivatives held by the Partnership, provided, that the Advisor shall be responsible for ensuring that the Advisor complies with any position
        limit that an EEA regulator, including the FCA, might apply to any commodity derivatives traded by the Advisor, including any commodity derivatives traded for the Partnership’s account.  Subject to Section 4(b), the Advisor shall be expressly
        permitted to reduce or close out a position entered into on the Partnership’s behalf to the extent required by the trading venue or its rules or where the Advisor reasonably considers this necessary to comply with such rules. CMF acknowledges that
        the Advisor, when dealing with certain counterparties in providing the services under this Agreement, may be required to act in accordance with certain requirements, including any relevant rules and regulations of such counterparties, and, subject
        to Section 6(b), accepts any losses that may result from the Advisor so acting.

    
      15

      
        

    

    (vi)          Subject to Section
        1(b), CMF consents to the Order Execution Policy. In particular, CMF agrees that the Advisor may trade outside of a trading venue (within the meaning of the FCA Rules).

    (vii)          The Advisor may
        aggregate orders on behalf of CMF with those of its other clients and clients of its affiliates. The Advisor will allocate such orders in accordance with Section 4 and Section 8(b)(iii) of this Agreement, the requirements of the FCA Rules and the
        applicable rules and regulations of the CFTC, NFA and any swap execution facility or commodity exchange on which such order was executed. CMF acknowledges and agrees that aggregation may operate to the advantage or disadvantage of CMF and/or the
        Partnership.

    (viii)          CMF acknowledges that
        certain of its transactions may be subject to MiFID, which applies certain transaction and position reporting obligations in respect of assets in the Partnership, including, but without limitation, the procurement of a valid code made up of 20
        alphanumerical digits which is used to uniquely identify every legal entity or structure, in any jurisdiction that is party to a financial transaction (“Legal Entity Identifier”) for the Partnership. CMF undertakes to provide in timely fashion all
        such information (including, but not limited to, the Partnership’s Legal Entity Identifier) and documentation and to promptly take all such action as the Advisor may from time to time reasonably require in relation to the MiFID transaction and
        position reporting obligations.

    (ix)          CMF acknowledges that
        certain information about transactions the Advisor wishes to and does enter into on CMF’s behalf may be made public and that the Advisor will be required to report the details of certain transactions to the FCA, in some cases, via third parties, in
        accordance with applicable law.

    (x)          The Advisor may receive
        research materials or services in return for direct payments by the Advisor out of its own resources.

    9.          DATA PROTECTION.

    (a)          Each party will comply
        with all applicable statutes and regulations in any jurisdiction pertaining to the processing of any information relating to an identified or identifiable natural living person (“Personal Data”), including the privacy and security of Personal Data
        (“Data Protection Laws”).

    (b)          In order to provide the
        services the Advisor may need to:

    (i)          communicate with CMF’s
        owners, officers, and employees (“Client Contacts”) in relation to the services;

    (ii)          process identification
        details of Client Contacts in order to confirm their identities;

    (iii)          check such Personal
        Data to meet the Advisor’s compliance and regulatory duties; and/or

    
      16

      
        

    

    (iv)          transfer such Personal
        Data outside the EEA and the UK and disclose it to anti-fraud organizations and law enforcement or regulatory agencies anywhere in the world, and the Advisor will be acting as a data controller in respect of such processing.

    (c)          Where CMF provides the
        Advisor with Client Contact details or where requested to do so by the Advisor, CMF, on behalf of the Partnership, will notify such individuals that the Advisor may need to process their Personal Data for the purposes set out in Section 9(b).

    (d)          The Advisor will maintain
        a data protection fair processing notice on its website setting out the details of such processing and all other information required by, and in compliance with, Data Protection Laws, which CMF will also refer Client Contacts to when it makes a
        notification under Section 9(c).

    (e)          For the avoidance of
        doubt, except as set out above, the Advisor shall be responsible for providing notices and obtaining any consents in relation to the processing of Client Contacts’ Personal Data, including in relation to marketing.

    10.          COMMUNICATIONS AND TAPING.

    (a)          Subject
        to compliance with applicable law, any party may record telephone conversations with the other. The Advisor may record or monitor telephone conversations and other communications with or by CMF (including mails, emails or documentation of client
        orders made at meetings). CMF agrees that the Advisor may deliver copies or transcripts of such recordings to any court or competent authority; provided that the Advisor will (i) promptly, but at least within 48 hours, notify CMF of the intent to
        deliver such copies and recordings; (ii) seek and obtain CMF’s consent to such delivery and (iii) provide CMF with an opportunity to review such copies or transcripts and oppose such delivery. A copy of any such conversations with CMF and
        communications with CMF will be available on request for a period of five years (or, where requested by the FCA, for a period of up to seven years) from the date when the record is made.

    (b)          The
        Advisor will communicate with CMF and the Partnership in English and, subject to Section 15, will communicate with CMF and the Partnership as considered appropriate, including through the Advisor’s website, by email or otherwise.

    11.          COMPLAINTS AND COMPENSATION.

    (a)          All
        formal complaints by CMF relating to the services provided by the Advisor under this Agreement should in the first instance be made in writing to the compliance officer of the Advisor. Subsequently, CMF may have a right to complain directly to the
        UK Financial Ombudsman Service. A copy of the Advisor’s complaints management policy is available on request and will otherwise be provided in accordance with the FCA Rules.

    (b)          CMF
        may be entitled to compensation from the UK Financial Services Compensation Scheme if the Advisor cannot meet its obligations. This depends on the type of business and the circumstances of the claim. Generally, a professional client will not be
        eligible for compensation.

    
      17

      
        

    

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

    13.          ASSIGNMENT.  This Agreement may not be assigned by any party without the express written consent of the other parties. Notwithstanding the foregoing, the Advisor may, at any time
        prior to the date set for the UK to cease being a member of the European Union (“EU”) or  December 31, 2020 if the withdrawal agreement and transition period are agreed with 60 calendar days’ prior written notice to CMF and the Partnership,
        transfer its rights and obligations in this Agreement to an affiliate based within a member state of the EU (a “Transfer Affiliate”), which may then delegate the provision of some or all of the services to the Advisor; provided, however, that any
        Transfer Affiliate shall have all the necessary registrations, licenses or exemptions therefrom required to provide the services contemplated under this Agreement including, but not limited to, (i) registration or valid exemption from registration
        as a commodity trading advisor with the CFTC and (ii) NFA membership, if required.

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

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

    If to CMF or to the Partnership:

    Ceres Managed Futures LLC

        522 Fifth Avenue,

        New York, New York 10036

        Attention:  Patrick Egan

    Email:  patrick.egan@morganstanley.com

    If to the Advisor:

    Northlander Commodity Advisors LLP

    Shearwater House

    21 The Green

    Richmond

    London

    TW9 1PX

    Email:  ulf.ek@northlander-advisors.com

    nisha.arora@northlander-advisors.com

    
      18

      
        

    

    with a copy to:

    Eric Wagner

    Kleinberg, Kaplan, Wolff & Cohen, P.C.

    551 Fifth Avenue, 18th Floor

    New York, NY 10176

        

        

        Email:  ewagner@kkwc.com

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

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

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

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

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

    

    

    
      19

      
        

    

    

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

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

    	 	
            CERES MANAGED FUTURES LLC

             

              

          
	 	
            By

          	 /s/ Patrick T. Egan
	 	

          	
            Patrick T. Egan

          
	 	 	
            President and Director

          
	 	 	 
	

          	
            CERES TACTICAL COMMODITY L.P.

                

              

          
	

          	
            By:  Ceres Managed Futures LLC

          
	 	

          	
            (General Partner)

             

              

          
	 	
            By

          	/s/ Patrick T. Egan

          
	 	 	
            Patrick T. Egan

          
	 	 	
            President and Director

          
	 	 	 
	

          	
            NORTHLANDER COMMODITY ADVISORS LLP

                

              

          
	 	 	 
	 	
            By:

          	______________________________
	 	 	
            Name:

          
	 	 	
            Title:

          
	 	 	 
	

          	
            By:

          	
            ______________________________

          
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

    

    

    
      20

      
        

    

    APPENDIX A

    Description of Program

    Northlander Commodity Advisors LLP (“Northlander”) is a London, UK based investment firm which was launched in March
        2012 by founder and Chief Investment Officer, Ulf Ek. Northlander Commodity Program (the “Program”) is a commodity focused trading program which invests in energy products globally, but with an emphasis on European power, European gas, European
        emissions, and international coal markets. The Program is an absolute return strategy which seeks to identify value in mispriced markets through careful fundamental analysis by focusing on market dynamics and market structure and then expressing
        their thesis through their proprietary portfolio construction and risk management procedures.

    

    

    
      21

      
        

    

    APPENDIX B

    CMF Trading Policies

    
      	
              1.

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

            

    

    
      	
              2.

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

            

    

    
      	
              3.

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

            

    

    
      	
              4.

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

            

    

    
      	
              5.

            	
              The Partnership will not utilize borrowings except short‐term borrowings if the Partnership takes delivery of
                  any cash commodities.

            

    

    
      	
              6.

            	
              The Advisor may from time to time employ trading strategies such as spreads or straddles on behalf of the Partnership.  The term
                  “spread” or “straddle” describes a commodity futures trading strategy involving the simultaneous buying and selling of futures contracts on the same commodity but involving different delivery dates or markets and in which the trader
                  expects to earn a profit from a widening or narrowing of the difference between the prices of the two contracts.

            

    

    
      	

            	

            

    

    
      	
              7.

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

            

    

    

    

    

    

    
      22

      
        

    

    APPENDIX C

    List of Commodity Interests

    	
            Product Name

          	
            Ticker

          	
            Sector

          
	
            NYM API2 QTR

          	
            COA

          	
            Coal

          
	
            ICEEU NWCSTL Q

          	
            FK

          	
            Coal

          
	
            ICEEU NWCSTL Q

          	
            FK

          	
            Coal

          
	
            NYM API2 CAL

          	
            LWL

          	
            Coal

          
	
            NYM COAL API2

          	
            MFE

          	
            Coal

          
	
            NYM COAL API4

          	
            MFW

          	
            Coal

          
	
            ICEEU ROTTERDM

          	
            TM

          	
            Coal

          
	
            ICE RDAM COAL

          	
            XA

          	
            Coal

          
	
            NYM LLSARGCAL

          	
            XAA

          	
            Coal

          
	
            ICEEU RTTRDM Q

          	
            XE

          	
            Coal

          
	
            ICE RICH COAL

          	
            XO

          	
            Coal

          
	
            ICEEU RCHBAY Q

          	
            XS

          	
            Coal

          
	
            ICE NEWC COAL

          	
            XW

          	
            Coal

          
	
            ICEEU NEWCASTL

          	
            YJ

          	
            Coal

          
	
            EEX F7BY FR

          	
            FAA

          	
            European Power

          
	
            EEX F7BM FR

          	
            FAC

          	
            European Power

          
	
            EEX PHX BS MTH

          	
            GI

          	
            European Power

          
	
            EEX PHEL BS W3

          	
            GIB

          	
            European Power

          
	
            EEX PHEL BS W2

          	
            GIB

          	
            European Power

          
	
            EEX PHEL BS W5

          	
            GIB

          	
            European Power

          
	
            EEX PHX BS QTR

          	
            GT

          	
            European Power

          
	
            EEX PHX PK QTR

          	
            HI

          	
            European Power

          
	
            EEX PHX BS YR

          	
            HP

          	
            European Power

          
	
            NPL MTH FWD

          	
            NORM

          	
            Nordpool

          
	
            NPL QTR FWD

          	
            NORQ

          	
            Nordpool

          
	
            NPL YEAR FWD

          	
            NORY

          	
            Nordpool

          
	
            IPE GAS-NBP MO

          	
            FN

          	
            UK Gas

          

    

    

  

  23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]