Document:

agmt2nd_museterm.htm

 

Exhibit 10.5

 

 

SECOND ADDENDUM TO

SENIOR EXECUTIVE TERMINATION BENEFITS AGREEMENT

 

THIS SECOND ADDENDUM TO SENIOR EXECUTIVE TERMINATION BENEFITS AGREEMENT (this “Addendum”) dated as of December 7, 2010 is made and entered into by and between Darling International Inc., a Delaware corporation (the “Company”), and John O. Muse (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and the Executive entered into that certain Amended and Restated Senior Executive Termination Benefits Agreement dated as of January 15, 2009, as subsequently amended by that certain First Addendum to Senior Executive Termination Benefits Agreement dated as of December 8, 2009 (as so amended, the “Agreement”); and

WHEREAS, the Agreement terminates on December 31, 2010; and

WHEREAS, the Company and Executive desire to extend the term of the Agreement for an additional one year period and subject to additional one year automatic extensions and to amend the Agreement in certain other respects;

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive do hereby agree to the following:

A G R E E M E N T:

 

	
1.  

	
Amendment of Requirement to Execute General Release.  The following sentence shall be added to the end of Section 1 of the Agreement:

Notwithstanding the foregoing, the Executive must deliver to the Company the general release (as described above), for which the seven-day revocation period has expired, no later than thirty (30) days following the Termination Date.  Any payments that would be made pursuant to Section 3(a), Section 3(c) or Section 3(e) prior to the thirtieth (30th) day following the Termination Date shall be made on the first payroll date after the thirtieth (30th) day following the Termination Date.

	
2.  

	
Amendment of Welfare Continuation Benefits.  Section 3(c) of the Agreement shall be amended and restated in its entirety so that it now reads as follows:

(c)           Welfare Benefits, etc.  The Executive’s participation (including dependant coverage) in any life and disability plans, and other similar fringe benefits of the Company (except business travel accident insurance and continued contributions to qualified retirement plans) in effect immediately prior to the Termination Date shall be continued, or equivalent benefits provided by the Company, for a period of eighteen (18) months from the Termination Date, or thirty-six (36) months in the case of a Change in Control Termination, to the extent allowed under the policies or agreements pursuant to which the Company obtains and provides such benefits.  In addition, the Company shall pay an amount equal to the applicable COBRA premium rate, if any, for a period of eighteen (18) months from the Termination Date, or thirty-six (36) months in the case of a Change in Control Termination, for health, dental and other similar COBRA coverage for the Executive and Executive’s eligible dependants, and such payments shall be includible in the Executive’s gross income.

 

 

  1

  

  

 

	
3.  

	
Amendment of Termination Date.  Section 9 of the Agreement shall be amended and restated in its entirety so that it now reads as follows:

9.           Termination.

This Agreement shall terminate on December 31, 2011 (the “Term”); provided, however, that the Term shall automatically extend for successive one (1) year periods on December 31, 2011 and each anniversary thereof, unless the Executive’s employment is terminated prior thereto or the Company provides written notice to the Executive of the Company’s intention not to extend the Term at least six (6) months prior to the applicable extension date.

	
4.  

	
Amendment of Compliance with Code Section 409A.  The following sentence shall be added to the end of Section 11 of the Agreement:

A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A of the Code upon or following a termination of employment until such termination is also a “separation from service” within the meaning of Section 409A of the Code and for purposes of any such provision of this Agreement, references to a “resignation,” “termination,” “terminate,” “termination of employment” or like terms shall mean separation from service.

	
5.  

	
Defined Terms.  Capitalized terms used but not defined in this Addendum shall have the same meanings assigned to them in the Agreement.

	
6.  

	
No Other Amendment.  All other terms and conditions of the Agreement are ratified and remain in full force and effect.

 

2  

  

  

IN WITNESS WHEREOF, the Company and the Executive have executed this Addendum on the dates set forth below.

 

	 	
COMPANY:

	  	
EXECUTIVE:

	 	  	  	  
	 	
DARLING INTERNATIONAL INC.

	  	  
	 	  	  	  
	 	  	  	  
	 By:	
      /s/  Randall C. Stuewe                                           

	  	
    /s/ John O. Muse                                           

	 	
Randall C. Stuewe

	  	
John O. Muse

	 	
Chief Executive Officer

	  	  
	 	  	  	  
	 	
Date of Signing:  12/7/10

	  	
Date of Signing:  12/8/10

 

 

3Exhibit 4.1

AMENDED AND RESTATED TRUST AGREEMENT

OF

ETFS COLLATERALIZED COMMODITIES TRUST

ETF SECURITIES USA LLC

as Sponsor

and

WILMINGTON TRUST COMPANY,

as Trustee

Dated as of
[                           ]

Table of Contents

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Page 

 
	
  

 	
  

 	

 

 
	
 ARTICLE I DEFINITIONS; THE TRUST

 	
  

 	
 1

 
	
 Section 1.1. Definitions

 	
  

 	
 1

 
	
 Section 1.2. Name

 	
  

 	
 9

 
	
 Section 1.3. Delaware Trustee; Business
 Offices

 	
  

 	
 9

 
	
 Section 1.4. Declaration of Trust

 	
  

 	
 9

 
	
 Section 1.5. Purposes and Powers

 	
  

 	
 10

 
	
 Section 1.6. Tax Treatment

 	
  

 	
 10

 
	
 Section 1.7. Limited Liability of Sponsor

 	
  

 	
 11

 
	
 Section 1.8. Legal Title

 	
  

 	
 12

 
	
 Section 1.9. Series Trust

 	
  

 	
 12

 
	
 Section 1.10. Commencement of Business

 	
  

 	
 12

 
	
  

 	
  

 	
  

 
	
 ARTICLE II THE TRUSTEE

 	
  

 	
 12

 
	
 Section 2.1. Trustee Term; Resignation

 	
  

 	
 12

 
	
 Section 2.2. Powers of Trustee

 	
  

 	
 12

 
	
 Section 2.3. Compensation and Expenses of
 the Trustee

 	
  

 	
 13

 
	
 Section 2.4. Indemnification of the Trustee

 	
  

 	
 13

 
	
 Section 2.5. Successor Trustee

 	
  

 	
 13

 
	
 Section 2.6. Liability of Trustee

 	
  

 	
 14

 
	
 Section 2.7. Payments to the Trustee

 	
  

 	
 15

 
	
  

 	
  

 	
  

 
	
 ARTICLE III SHARES; SERIES; CAPITAL
 CONTRIBUTIONS

 	
  

 	
 15

 
	
 Section 3.1. General

 	
  

 	
 15

 
	
 Section 3.2. Establishment of Series, or
 Funds, of the Trust

 	
  

 	
 16

 
	
 Section 3.3. Establishment of Classes and
 Sub-Classes

 	
  

 	
 17

 
	
 Section 3.4. Offer of Shares, Procedures
 for Creation and Issuance of Creation Units

 	
  

 	
 18

 
	
 Section 3.5. Book-Entry-Only System, Fund
 Global Securities

 	
  

 	
 19

 
	
 Section 3.6. Assets

 	
  

 	
 22

 
	
 Section 3.7. Liabilities of the Funds

 	
  

 	
 22

 
	
 Section 3.8. Distributions

 	
  

 	
 24

 
	
  

 	
  

 	
  

 
	
 ARTICLE IV THE SPONSOR

 	
  

 	
 24

 
	
 Section 4.1. Management of the Trust

 	
  

 	
 24

 
	
 Section 4.2. Authority of Sponsor

 	
  

 	
 24

 
	
 Section 4.3. Expenses of the Trust

 	
  

 	
 27

 
	
 Section 4.4. Liability of Covered Persons

 	
  

 	
 28

 
	
 Section 4.5. Elimination and Limitation of
 Duties and Liabilities of the Sponsor

 	
  

 	
 28

 
	
 Section 4.6. Obligations of the Sponsor

 	
  

 	
 30

 
	
 Section 4.7. Delegation of Obligations of
 the Sponsor

 	
  

 	
 30

 
	
 Section 4.8. Compensation to the Sponsor

 	
  

 	
 30

 
	
 Section 4.9. Other Business of Shareholders

 	
  

 	
 30

 
	
 Section 4.10. Indemnification of Covered
 Persons

 	
  

 	
 30

 
	
 Section 4.11. Other Contractual Rights

 	
  

 	
 32

 

i

	
  

 	
  

 	
  

 
	
 ARTICLE V TRANSFERS OF SHARES

 	
  

 	
 32

 
	
 Section 5.1. General Prohibition

 	
  

 	
 32

 
	
 Section 5.2. Transfer of Shares

 	
  

 	
 32

 
	
  

 	
  

 	
  

 
	
 ARTICLE VI ALLOCATIONS

 	
  

 	
 32

 
	
 Section 6.1. Allocations for Capital
 Account Purposes

 	
  

 	
 32

 
	
 Section 6.2. Allocations for Tax Purposes

 	
  

 	
 35

 
	
  

 	
  

 	
  

 
	
 ARTICLE VII SHAREHOLDERS

 	
  

 	
 37

 
	
 Section 7.1. No Management or Control;
 Limited Liability; Exercise of Rights through DTC

 	
  

 	
 37

 
	
 Section 7.2. Rights and Duties

 	
  

 	
 37

 
	
 Section 7.3. Limitation on Shareholder
 Liability

 	
  

 	
 38

 
	
 Section 7.4. Voting Power and Meetings

 	
  

 	
 39

 
	
 Section 7.5. Notice of Shareholders’
 Meeting

 	
  

 	
 39

 
	
 Section 7.6. Voting Procedure

 	
  

 	
 40

 
	
 Section 7.7. Quorum and Required Vote

 	
  

 	
 40

 
	
 Section 7.8. Record Dates

 	
  

 	
 40

 
	
 Section 7.9. Waiver of Notice by Consent of
 Absent Shareholders

 	
  

 	
 41

 
	
 Section 7.10. Proxies

 	
  

 	
 41

 
	
  

 	
  

 	
  

 
	
 ARTICLE VIII RECORDS AND REPORTS

 	
  

 	
 41

 
	
 Section 8.1. Maintenance of Share Register

 	
  

 	
 41

 
	
 Section 8.2. Maintenance of Other Records

 	
  

 	
 41

 
	
  

 	
  

 	
  

 
	
 ARTICLE IX REDEMPTIONS

 	
  

 	
 42

 
	
 Section 9.1. Redemption of Redemption Units

 	
  

 	
 42

 
	
 Section 9.2. Other Redemption Procedures

 	
  

 	
 43

 
	
 Section 9.3. Mandatory Redemption by the
 Trust

 	
  

 	
 43

 
	
  

 	
  

 	
  

 
	
 ARTICLE X CUSTODY OF ASSETS

 	
  

 	
 44

 
	
 Section 10.1. Employment of a Custodian

 	
  

 	
 44

 
	
 Section 10.2. Other Arrangements

 	
  

 	
 44

 
	
  

 	
  

 	
  

 
	
 ARTICLE XI MISCELLANEOUS

 	
  

 	
 44

 
	
 Section 11.1. Termination of Trust, Series
 or Class

 	
  

 	
 44

 
	
 Section 11.2. Merger and Consolidation

 	
  

 	
 45

 
	
 Section 11.3. Filing of Copies

 	
  

 	
 45

 
	
 Section 11.4. Applicable Law

 	
  

 	
 46

 
	
 Section 11.5. Provisions in Conflict with
 Law or Regulations

 	
  

 	
 46

 
	
 Section 11.6. Contracts and Instruments;
 How Executed

 	
  

 	
 46

 
	
 Section 11.7. Fiscal Year

 	
  

 	
 46

 
	
 Section 11.8. Counterparts

 	
  

 	
 46

 
	
 Section 11.9. Internal References; Headings

 	
  

 	
 46

 
	
  

 	
  

 	
  

 
	
 ARTICLE XII AMENDMENT

 	
  

 	
 47

 
	
 Section 12.1. Amendment

 	
  

 	
 47

 

ii

          WHEREAS,
THIS AMENDED AND RESTATED TRUST AGREEMENT (this “Trust Agreement”) is made and
entered into as of, _________ __, 2010, by ETF SECURITIES USA LLC, a Delaware
limited liability company (the “Sponsor”), and WILMINGTON TRUST COMPANY, a
Delaware banking company, as trustee (the “Trustee”), for the purpose of
continuing a Delaware statutory trust in accordance with the provisions
hereinafter set forth; 

          WHEREAS,
the Sponsor and the Trustee have heretofore created the Trust pursuant to the
DSTA (as hereinafter defined) by entering into a trust agreement, dated as of
May 27, 2010 (the “Original Trust Agreement”), and by executing and filing with
the Secretary of State of the State of Delaware the Certificate of Trust; and 

          WHEREAS,
the parties hereto desire to amend and restate the Original Trust Agreement in
its entirety and to provide for the matters set forth herein; and 

          WHEREAS,
this Trust is authorized to issue its shares of beneficial interest in one or
more separate series, all in accordance with the provisions set forth in this
Trust Agreement. 

          NOW,
THEREFORE, in consideration of the agreements and obligations set forth herein
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and pursuant to Section 8 of the Original Trust
Agreement, the Sponsor and the Trustee hereby amend and restate the Original
Trust Agreement in its entirety and agree as follows: 

ARTICLE I 

DEFINITIONS; THE TRUST

          Section
1.1. Definitions.
Whenever used herein, unless otherwise defined or required by the context or
specifically provided: 

          “Adjusted
Capital Account” means with respect to any Shareholder, such Shareholder’s
Capital Account as of the end of the relevant fiscal year or other applicable
period after giving effect to the following adjustments: 

          (a)
Credit to such Capital Account any amounts which such Shareholder is obligated
to restore pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(c) or is
deemed to be obligated to restore to the Trust pursuant to the second to last
sentences of Treasury Regulation sections 1.704-2(g)(1) and 1.704-2(i)(5). 

          (b)
Debit to such Capital Account the items described in Treasury Regulation
sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6). 

The foregoing
definition of Adjusted Capital Account is intended to comply with the
provisions of Treasury Regulation section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith. The Adjusted Capital Account of a
Shareholder in respect of a Share shall be the 

amount that
such Adjusted Capital Account would be if such Share were the only interest in
the Trust held by such Shareholder from and after the date on which such Share
was first issued. 

          “Administrator”
means any Person from time to time engaged to provide administrative services
to the Trust pursuant to authority granted by the Sponsor. 

          “Affiliate”
of a Person means (i) any Person directly or indirectly owning, controlling or
holding with power to vote 5% or more of the outstanding voting securities of
such Person; (ii) any Person 5% or more of whose outstanding voting securities
are directly or indirectly owned, controlled or held with power to vote by such
Person; (iii) any Person, directly or indirectly, controlling, controlled by or
under common control of such Person; (iv) any employee, officer, director,
member, manager or partner of such Person; or (v) if such Person is an
employee, officer, director, member, manager or partner, any Person for which
such Person acts in any such capacity. 

          “Applicable
Series” shall have the meaning assigned to such term in Section 3.7(b). 

          “Authorized
Participant” means a Person who (1) is a registered broker-dealer or other
securities market Authorized Participant such as a bank or other financial
institution which is not required to register as a broker-dealer to engage in
securities transactions, (2) is a Authorized Participant in DTC, (3) has entered
into an Authorized Participant Agreement, which, at the relevant time, is in
full force and effect, with the Trust and the Sponsor, and (4) has entered into
a Direct Agreement with each of the Counterparties of the relevant Fund. Only
Authorized Participants may place orders to create or redeem one or more
Baskets of a Fund. 

          “Authorized
Participant Agreement” means an agreement entered into by each Authorized
Participant, the Sponsor, Administrator and the Trust on behalf of a Fund,
which sets forth the procedures for the creation and redemption of Baskets in a
Fund, which may be amended and supplemented from time to time in accordance
with its terms. 

          “Basket”
means a Creation Unit or Redemption Unit, as the context may require. 

          “Beneficial
Owners” shall have the meaning assigned to such term in Section 3.5(d). 

          “Business
Day” means any day (other than a Saturday or Sunday) on which the Exchange
is open for regular trading. 

          “Capital
Account” means the capital account maintained for a Shareholder. The
Capital Account of a Shareholder in respect of a Share shall be the amount that
such Capital Account would be if such Share were the only interest in a Fund
held by such Shareholder from and after the date on which such Share was first
issued. 

          “Capital
Contributions” means the amounts of cash or other consideration contributed
to a Fund by any Person. 

          “CEA”
means the Commodity Exchange Act, as amended. 

2

          “Certificate
of Trust” means the Certificate of Trust of the Trust in the form filed
with the Secretary of State of the State of Delaware pursuant to section 3810
of the DSTA, as amended or restated from time to time. 

          “Claims”
shall have the meaning assigned to such term in Section 3.7(b). 

          “Class”
means a class of Shares established pursuant to the terms of this Trust
Agreement. 

          “Code”
means the United States Internal Revenue Code of 1986, as amended. 

          “Corporate
Trust Office” means the principal office at which at any particular time
the corporate trust business of the Trustee is administered, which office at
the date hereof is located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, Attention: Corporate Trust Administration. 

          “Covered
Person” means the Trustee, the person acting as Trustee (in its individual
capacity), the Sponsor, and their respective Affiliates. 

          “Creation
Unit” means the minimum number of Shares of a Fund that may be created at
any one time, which shall be 50,000 or such greater or lesser number as the
Sponsor may determine from time to time for each Fund. 

          “Creation
Unit Capital Contribution” of a Fund means a Capital Contribution made by
an Authorized Participant when purchasing a Creation Unit of that Fund. 

          “Depreciation”
means, for each fiscal year of the Trust or other applicable period, an amount
equal to the U.S. federal income tax depreciation, amortization or other cost
recovery deduction allowable with respect to an asset for such year or other
period, except that if the Gross Asset Value of an asset differs from its
adjusted basis for U.S. federal income tax purposes at the beginning of such
year or period, Depreciation shall be in an amount that bears the same ratio to
such beginning Gross Asset Value as the U.S. federal income tax depreciation,
amortization or other cost recovery deduction for such year or other period
bears to such beginning adjusted tax basis; provided, however, that if the U.S.
federal income tax depreciation, amortization or other cost recovery deduction
for such year or period is zero, Depreciation shall be determined with
reference to such beginning Gross Asset Value using any reasonable method
selected by the Sponsor. 

          “Depository”
or “DTC” means The Depository Trust Company, New York, New York, or such
other depository of Shares as may be selected by the Sponsor as specified
herein. 

          “Depository
Agreement” means the Letter of Representations relating to each Fund from
the Sponsor to the Depository. 

          “DSTA”
means the Delaware Statutory Trust Act, Chapter 38 of Title 12 of the Delaware
Code, 12 Del. C. § 3801 et seq., as the same may be amended from time to time. 

          “DTC
Participants” shall have the meaning assigned to such term in Section
3.5(c). 

3

          “Exchange”
means the NYSE Arca or, if the Shares of any Fund shall cease to be listed on
the NYSE, the exchange on which the Shares of such Fund are principally traded,
as determined by the Sponsor. 

          “Expenses”
shall have the meaning assigned to such term in Section 2.4. 

          “Fund”
means an established and designated Series of the Trust. 

          “Fund
Minimum Gain” means, with respect to a Fund, that amount determined for a
Fund in accordance with the principles of Treasury Regulation section
1.704-2(d). 

          “Fund
Value” at any time means the total assets of a Fund including, but not
limited to, all financial instruments, cash and cash equivalents, securities or
other property less total liabilities of such Fund, determined on the basis of
generally accepted accounting principles in the U.S., consistently applied
under the accrual method of accounting. 

          “Global
Security” means the global certificate or certificates for each Fund issued
to the Depository as provided in the Depository Agreement. 

          “Gross
Asset Value” means, with respect to any asset, the asset’s adjusted basis
for U.S. federal income tax purposes, except as follows: 

          (a)
The initial Gross Asset Value of any asset contributed by a Shareholder to a
Fund shall be the gross fair market value of such asset as determined by the
Sponsor. 

          (b)
The Gross Asset Values of all Fund assets shall be adjusted to equal their
respective gross fair market values, as determined by the Sponsor using such
reasonable method of valuation as it may adopt, as of the following times: 

	
  

 	
  

 
	
  

 	
           (i)
 the acquisition of an additional interest in a Fund by a new or existing Shareholder
 in exchange for more than a de minimis
 Capital Contribution, if the Sponsor reasonably determines that such
 adjustment is necessary or appropriate to reflect the relative economic
 interests of the Shareholders in the Fund; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 the distribution by the Fund to a Shareholder of more than a de minimis amount of property as
 consideration for an interest in the Fund, if the Sponsor reasonably
 determines that such adjustment is necessary or appropriate to reflect the
 relative economic interests of the Shareholders in the Fund; 

 
	
  

 	
  

 
	
  

 	
           (iii)
 the liquidation of the Trust or of a Fund, as applicable, within the meaning
 of Treasury Regulation section 1.704-1(b)(2)(ii)(g); and 

 
	
  

 	
  

 
	
  

 	
           (iv)
 at such other times as the Sponsor shall reasonably determine necessary or
 advisable in order to comply with Treasury Regulation sections 1.704-1(b) and
 1.704-2. 

 

          (c)
The Gross Asset Value of any Fund asset distributed to a Shareholder shall be
the gross fair market value of such asset on the date of distribution. 

4

          (d)
The Gross Asset Values of Fund assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such assets pursuant to Code
section 734(b) or Code section 743(b), but only to the extent that such
adjustments are taken into account in determining Capital Accounts pursuant to
Treasury Regulation section 1.704-1(b)(2)(iv)(m); provided, however, that Gross
Asset Values shall not be adjusted pursuant to this subsection (d) to the extent
that the Sponsor reasonably determines that an adjustment pursuant to
subsection (b) above is necessary or appropriate in connection with a
transaction that would otherwise result in an adjustment pursuant to this
subsection (d). 

          (e)
If the Gross Asset Value of a Fund asset has been determined or adjusted
pursuant to subsection (a), subsection (b) or subsection (d) above, such Gross
Asset Value shall thereafter be adjusted by the Depreciation taken into account
with respect to such asset for purposes of computing Net Income and Net Losses.

          “Indirect
DTC Participants” shall have the meaning assigned to such term in Section
3.5(c). 

          “Initial
Funds” shall have the meaning assigned to such term in Section 3.2(a). 

          “Internal
Revenue Service” or “IRS” means the U.S. Internal Revenue Service or
any successor thereto. 

          “Liquidation
Date” means the date on which an event giving rise to the dissolution of
the Trust or a Fund, as applicable, occurs. 

          “Net
Income” and “Net Loss” mean for each fiscal year or other applicable
period, an amount equal to a Fund’s taxable income or loss for such fiscal year
or period, determined in accordance with Code section 703(a) (for this purpose,
all items of income, gain, loss, or deduction required to be stated separately
pursuant to Code section 703(a)(1) shall be included in taxable income or
loss), with the following adjustments: 

          (a)
Any income of the Fund that is exempt from U.S. federal income tax or excluded
from U.S. federal gross income and not otherwise taken into account in
computing Net Income or Net Loss pursuant to this definition shall be added to
such taxable income or loss; 

          (b)
Any expenditures of the Fund described in Code section 705(a)(2)(B) or treated
as section 705(a)(2)(B) expenditures pursuant to Treasury Regulation section
1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net
Income or Net Loss pursuant to this definition, shall be subtracted from such
taxable income or loss; 

          (c)
In the event the Gross Asset Value of any Fund asset is adjusted pursuant to
any provision of this Agreement in accordance with the definition of Gross
Asset Value, the amount of such adjustment shall be taken into account as gain
or loss from the disposition of such asset for purposes of computing Net Income
and Net Loss; 

          (d)
Gain or loss resulting from any disposition of any Fund asset with respect to
which gain or loss is recognized for U.S. federal income tax purposes shall be
computed by reference to 

5

the Gross
Asset Value of the property disposed of, notwithstanding that the adjusted tax
basis of such asset differs from its Gross Asset Value; 

          (e)
In lieu of the depreciation, amortization, and other cost recovery deductions
taken into account in computing such taxable income or loss, there shall be
taken into account Depreciation for such fiscal year or other applicable
period, computed in accordance with the definition of Depreciation; and 

          (f)
Notwithstanding any other provision of this definition, any items which are
allocated pursuant to Section 6.1(c) shall not be taken into account in
computing Net Income or Net Loss. 

          “Nonrecourse
Deductions” has the meaning given in Treasury Regulation section
1.704-2(b)(1). The amount of Nonrecourse Deductions for a fiscal year or other
applicable period equals the net increase, if any, in the amount of Fund
Minimum Gain during such fiscal year or period reduced by any distributions during
such fiscal year or period of proceeds of a Nonrecourse Liability that are
allocable to an increase in Fund Minimum Gain, determined according to the
provisions of Treasury Regulation sections 1.704-2(c) and 1.704-2(h). 

          “Nonrecourse
Liability” has the meaning set forth in Treasury Regulation section
1.704-2(b)(3). 

          “Original
Trust Agreement” means that certain trust agreement of the Trust, dated as
of May 27, 2010, between the Sponsor and the Trustee, which Original Trust
Agreement is amended and restated by this Trust Agreement. 

          “Outstanding”
means, with respect to Shares or any Class of Shares of a Fund, all Shares of
that Class that are issued by the Fund and reflected as outstanding on the
Fund’s books and records as of the date of determination. 

          “Percentage
Interest” means, as of any date of determination, as to any Shares, the
product obtained by multiplying (a) 100% by (b) the quotient obtained by
dividing (x) the number of such Shares by (y) the total number of all
Outstanding Shares. 

          “Person”
means any natural person, partnership, limited liability company, trust
(including a statutory trust), corporation, association or other entity. 

          “Prospectus”
means the final prospectus and disclosure document of the Trust with respect to
any Fund, constituting a part of a Registration Statement, as filed with the
SEC and declared effective thereby, as the same may at any time and from time
to time be amended or supplemented. 

          “Purchase
Order” shall have the meaning assigned thereto in Section 3.4(a)(i). 

          “Redemption
Distribution” means the cash or other assets to the extent permitted in the
Registration Statement or an Authorized Participant Agreement, to be delivered
in satisfaction of a redemption of a Redemption Unit as specified in Section
9.1. 

          “Redemption
Order” shall have the meaning assigned thereto in Section 9.1(a). 

6

          “Redemption
Order Date” shall have the meaning assigned thereto in Section 9.1(b). 

          “Redemption
Settlement Time” shall have the meaning assigned to such term in Section
9.1(d). 

          “Redemption
Unit” means the minimum number of Shares of a Fund that may be redeemed,
which shall be the number of Shares of such Fund constituting a Creation Unit
on the relevant Redemption Order Date. 

          “Registration
Statement” means an effective registration statement, as it may be amended
or supplemented from time to time, filed with the SEC pursuant to which the
Trust registered the offer and sale of the Shares of any Fund. 

          “Required
Allocations” means (i) any limitation imposed on any allocation of Net
Losses under Section 6.1(a) and (ii) any allocation of an item of income, gain,
loss or deduction pursuant to Sections 6(c)(i), 6(c)(ii), 6(c)(iii), 6(c)(vi)
or 6(c)(viii). 

          “SEC”
means the United States Securities and Exchange Commission. 

          “Series”
means a series of Shares established pursuant to the terms of this Trust
Agreement. 

          “Shareholders”
means the registered holders of Shares of a Fund. 

          “Shareholder
Minimum Gain” means an amount, with respect to each Shareholder Nonrecourse
Debt, that would result if such Shareholder Nonrecourse Debt were treated as a
Nonrecourse Liability, determined in accordance with Treasury Regulation
section 1.704-2(i)(3). 

          “Shareholder
Nonrecourse Debt” has the meaning given to the term “partner nonrecourse
debt” in Treasury Regulation section 1.704-2(b)(4). 

          “Shareholder
Nonrecourse Deductions” has the meaning given to the term “partner
nonrecourse deduction” in Treasury Regulation section 1.704-2(i)(2). The amount
of Shareholder Nonrecourse Deductions with respect to a Shareholder Nonrecourse
Debt for a fiscal year or other applicable period equals the net increase, if
any, in the amount of Shareholder Minimum Gain during such fiscal year or other
applicable period attributable to such Shareholder Nonrecourse Debt, reduced by
any distributions during that fiscal year or other applicable period to the
Shareholder that bears the economic risk of loss for such Shareholder
Nonrecourse Debt to the extent that such distributions are from the proceeds of
such Shareholder Nonrecourse Debt and are allocable to an increase in Shareholder
Minimum Gain attributable to such Shareholder Nonrecourse Debt, determined
according to the provisions of Treasury Regulation sections 1.704-2(h) and
1.704-2(i). 

          “Shares”
means the equal proportionate Shares of undivided beneficial interest in a Fund
and may include fractions of Shares. 

          “Sponsor”
means ETF Securities USA LLC, or any substitute or designee of the then Sponsor
therefor as provided herein, or any successor thereto by merger or operation of
law. The 

7

term “Sponsor”
shall also mean any person directly or indirectly instrumental in organizing
each Fund or any person who will manage or participate in the management of
each Fund any other person who regularly performs or selects the persons who
perform services for the Funds. The term “Sponsor” does not include wholly
independent third parties such as attorneys, accountants and underwriters whose
only compensation is for professional services rendered to the Trust or any
Fund. The term “Sponsor” shall be deemed to include Affiliates of the Sponsor. 

          “Sponsor
Agreement” means an agreement between the Trust and the Sponsor setting
forth, among other things, the Sponsor’s compensation and the amount to be
charged as a Transaction Fee, as it may be amended or supplemented from time to
time in accordance with its terms. 

          “Sponsor
Indemnified Parties” shall have the meaning assigned to such term in
Section 4.10. 

          “Subordinated
Claims” shall have the meaning assigned to such term in Section 3.7(b). 

          “Subsidiary”
means, with respect to any Person, as of any date of determination, any other
Person as to which such Person owns or otherwise controls, directly or
indirectly, more than 50% of the voting shares or other similar interests or a
sole general partner interest or managing member or similar interest of such
Person. 

          “Suspended
Redemption Order” shall have the meaning assigned to such term in Section
9.1(d). 

          “Tax
Matters Partner” means the “tax matters partner” as defined in the Code. 

          “Transaction
Fee” shall mean a non-refundable transaction fee to be payable by an
Authorized Participant to the Administrator in connection with each purchase or
redemption of a Creation Unit by an Authorized Participant. 

          “Treasury
Regulations” means regulations, including proposed or temporary
regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations. 

          “Trust”
means ETFS Collateralized Commodities Trust, the Delaware statutory trust
formed pursuant to the Certificate of Trust, the business and affairs of which
are governed by this Trust Agreement. 

          “Trust
Agreement” means this Amended and Restated Trust Agreement as the same may
at any time or from time to time be amended. 

          “Trustee”
means Wilmington Trust Company or any successor thereto as provided herein,
acting not in its individual capacity but solely as trustee of the Trust. 

          “Trustee
Indemnified Parties” shall have the meaning assigned to such term in
Section 2.4.

8

          “Trust
Estate” means, with respect to a Fund, all property and cash held by such
Fund, and all proceeds therefrom. 

          “U.S.”
means the United States of America. 

          “Value
per Creation Unit” means the product obtained by multiplying the Value per
Share of a Fund by the number of Shares comprising the Fund’s Creation Unit at
such time. 

          “Value
per Share” means, with respect to any Fund, the Fund Value divided by the
number of Outstanding Shares of the Fund as of the date of calculation. 

          Section
1.2. Name.
The name of the Trust is “ETFS Collateralized Commodities Trust” in which name
the the Sponsor may engage in the business of the Trust, make and execute
contracts and other instruments on behalf of the Trust and sue and be sued on
behalf of the Trust. 

          Section
1.3. Delaware
Trustee; Business Offices. 

          (a)
The sole Trustee of the Trust is Wilmington Trust Company, which is located at
the Corporate Trust Office or at such other address in the State of Delaware as
the Trustee may designate in writing to the Shareholders. The Trustee shall
receive service of process on the Trust in the State of Delaware at the
foregoing address. In the event Wilmington Trust Company resigns or is removed
as the Trustee, the Trustee of the Trust in the State of Delaware shall be the
successor Trustee. 

          (b)
The principal office of the Trust, and such additional offices as the Sponsor
may establish, shall be located at such place or places inside or outside the
State of Delaware as the Sponsor may designate from time to time in writing to
the Trustee and the Shareholders. Initially, the principal office of the Trust
shall be at c/o ETF Securities USA LLC, 48 Wall Street, 11th Floor,
New York, New York 10005. The office of the Trustee in the State of Delaware
shall be located at Wilmington Trust Company, Rodney Square North, 1100 North
Market Street, Wilmington, DE 19890. 

          Section
1.4. Declaration of
Trust. The Sponsor hereby acknowledges that the Trust has received
the sum of $[______] for each Fund in bank accounts in the name of each Fund
controlled by the Sponsor from the Sponsor, and hereby declares that it shall
hold such sum in trust, upon and subject to the conditions set forth herein for
the use and benefit of the Shareholders of each Fund. It is the intention of
the parties hereto that the Trust shall be a statutory trust organized in
series, or Funds, under the DSTA and that this Trust Agreement shall constitute
the governing instrument of the Trust. It is not the intention of the parties
hereto to create a general partnership, limited partnership, limited liability
company, joint stock association, corporation, bailment or any form of legal
relationship other than a Delaware statutory trust except to the extent that
each Fund is decreed to constitute a publicly traded partnership under the Code
and applicable state and local tax law. Nothing in this Trust Agreement shall
be construed to make the Shareholders partners or members of a joint stock
association. Neither the Sponsor nor the Trustee shall be liable to any person
for the failure of the Trust or any Fund to qualify as a publicly traded
partnership under the Code or any comparable provision of the laws of any state
or other jurisdiction where such treatment is sought. Effective as of the date
hereof, the Trustee and the Sponsor shall have all of the rights,

9

powers and
duties set forth herein and in the DSTA with respect to accomplishing the
purposes of the Trust. The Trustee has filed the Certificate of Trust required
by section 3810 of the DSTA in connection with the formation of the Trust under
the DSTA. 

          Section
1.5. Purposes and
Powers. The purposes of the Trust and each Fund shall be to enter
into any lawful transaction and engage in any lawful activities and engage in
any other lawful business activity for which a Delaware statutory trust may be
organized. 

          Section
1.6. Tax Treatment.

          (a)
By accepting Shares or interests therein, the Shareholders and/or Beneficial
Owners and, by entering into this Trust Agreement, the Trustee and Sponsor,
each (i) expresses its intention that the Shares of each Fund will qualify
under applicable tax law as interests in a publicly traded partnership (not
taxable as an association) which holds the Trust Estate of each Fund for their
benefit, (ii) agrees that it will file its own U.S. federal, state and local
income, franchise and other tax returns in a manner that is consistent with the
treatment of each Fund as a publicly traded partnership in which each of the
Shareholders thereof is a beneficiary and (iii) agrees to use reasonable
efforts to notify the Sponsor promptly upon a receipt of any notice from any
taxing authority having jurisdiction over such holders of Shares of each Fund
with respect to the treatment of the Shares of such Fund as anything other than
interests in a publicly traded partnership. 

          (b)
The Sponsor, at its expense together with any allowances provided by any Fund
for this purpose, shall prepare or cause to be prepared all U.S. federal,
state, and local tax returns of the Trust or each Fund for each year for which
such returns are required to be filed and shall file or cause such returns to
be timely filed and shall timely pay (or cause to be timely paid) any tax,
assessment or other governmental charge owing with respect to the Trust or the
Fund out of the Trust Estate. The Sponsor shall deliver or cause to be
delivered to each Beneficial Owner, and the broker or nominee through which a
Beneficial Owner owns its Shares, a Form K-1 and such other information, if
any, with respect to the Trust or applicable Fund as may be necessary for the
preparation of the U.S. federal income tax or information returns of such
Beneficial Owner including a statement showing each Beneficial Owner’s share of
income, gain, loss, expense, deductions and credits for such fiscal year for
U.S. federal income tax purposes as soon as practicable following each fiscal
year but generally not later than March 15. Subject to Section 4.10, the Trust
and each Fund hereby indemnifies, to the full extent permitted by law, the Sponsor
from and against any damages or losses (including attorneys’ fees) arising out
of or incurred in connection with any action taken or omitted to be taken by it
in carrying out its responsibilities under this Section 1.6(b); provided such
action taken or omitted to be taken does not constitute fraud, gross negligence
or willful misconduct. 

          (c)
Each Shareholder shall furnish the Sponsor with information necessary to enable
the Sponsor to comply with U.S. federal income tax information reporting
requirements in respect of such Shareholder’s Shares. 

          (d)
The Trust or the Funds, as the case may be, shall make the election under Code
section 754 in accordance with applicable regulations thereunder, subject to
the reservation of the right to seek to revoke any such election upon the
Sponsor’s determination that such 

10

revocation is
in the best interests of the Shareholders. Notwithstanding any other provision
herein contained, for the purposes of computing the adjustments under Code section
743(b), the Sponsor shall be authorized (but not required) to adopt a
convention whereby the price paid by a transferee of a Share will be deemed to
be the lowest quoted closing price of the Shares on any Exchange on which such
Shares are traded during the calendar month in which such transfer is deemed to
occur. 

          (e)
Except as otherwise provided herein, the Sponsor shall determine whether the
Trust or the Funds should make any other elections permitted by the Code. 

          (f)
The Sponsor is hereby designated the Tax Matters Partner (as defined in the
Code). The Tax Matters Partner is authorized and required to represent the
Trust (at the Trust’s expense) in connection with all examinations of the
Trust’s affairs by tax authorities, including resulting administrative and
judicial proceedings, and to expend Trust funds for professional services and
costs associated therewith. Each Shareholder agrees to cooperate with the Tax
Matters Partner and to do or refrain from doing any or all things reasonably
required by the Tax Matters Partner to conduct such proceedings. 

          (g)
Notwithstanding any other provision of this Agreement, the Sponsor is
authorized to take any action that may be required to cause the Trust, the
Funds and other Subsidiaries of the Trust or the Funds to comply with any
withholding requirements established under the Code or any other U.S. federal,
state, local or foreign law including pursuant to Code sections 1441, 1442,
1445 and 1446. To the extent that the Trust is required or elects to withhold
and pay over to any taxing authority any amount resulting from the allocation
or distribution of income to any Shareholder (including by reason of Code
section 1446), the Sponsor may treat the amount withheld as a distribution of
cash pursuant to Sections 3.8 or 9.1 hereof in the amount of such withholding
from such Shareholder. Any increase or decrease in withholding tax incurred by
the Trust, any Fund or any Subsidiary of the Trust or the Funds resulting from
the identity, nationality, residence or status of a Shareholder shall be
allocable to and reduce the distributions of such Shareholder. 

          Section
1.7. Limited
Liability of Sponsor. 

          (a)
Notwithstanding any other provision of this Trust Agreement, the Sponsor shall
not be considered, treated as or have the duties (at law or in equity) or the
liabilities of, a general partner if each Fund were considered a partnership
under Delaware law. All Shares held by the Sponsor shall have the same rights
and limited liabilities created or imposed hereunder as those issued to
Shareholders unaffiliated with the Sponsor. Notwithstanding anything in this
Trust Agreement to the contrary, Persons having any claim against the Trust or
any Fund by reason of the transactions contemplated by this Trust Agreement and
any other agreement, instrument, obligation or other undertaking to which the
Trust or a Fund is a party, shall look only to the appropriate Fund Trust
Estate for payment or satisfaction thereof. The ownership of Shares is not a
condition for any Person to serve as Sponsor. 

          (b)
Subject to Sections 7.1 and 7.3 hereof, no Shareholder, including the Sponsor,
shall have any personal liability for any liability or obligation of the Trust
or any Fund. 

11

          Section
1.8. Legal Title.
Legal title to all of the Trust Estate of each Fund shall be vested in the
Trust as a separate legal entity; provided, however, that where applicable law
in any jurisdiction requires any part of the Trust Estate to be vested
otherwise, the Sponsor may cause legal title to the Trust Estate or any portion
thereof to be held by or in the name of the Sponsor or any other Person (other
than a Shareholder) as nominee. 

          Section
1.9. Series Trust.
The Shares of the Trust shall be divided into Series, each a Fund, as provided
in section 3806(b)(2) of the DSTA. Accordingly, it is the intent of the parties
hereto that Articles IV, V, VII, VIII, IX, X and XI of this Trust Agreement
shall apply also with respect to each such Fund as if each such Fund were a
separate statutory trust under the DSTA, and each reference to the term “Trust”
in such Articles shall be deemed to be a reference to each Fund separately to
the extent necessary to give effect to the foregoing intent, as the context may
require. The use of the terms “Trust”, “Fund” or “Series” in this Trust
Agreement shall in no event alter the intent of the parties hereto that the
Trust receive the full benefit of the limitation on interseries liability as
set forth in section 3804 of the DSTA. 

          Section
1.10. Commencement
of Business. The commencement of the Trust’s business and the sale
of the Shares of each Fund to the respective Authorized Participants pursuant
to each Authorized Participant Agreement shall commence at such time as the
Sponsor shall determine. 

ARTICLE II

THE TRUSTEE

          Section
2.1. Trustee Term;
Resignation. 

          (a)
Wilmington Trust Company has been appointed and hereby agrees to serve as the
Trustee of the Trust solely for purposes of satisfying the requirements of
section 3807 of the DSTA. The Trust shall have only one trustee unless
otherwise determined by the Sponsor. The Trustee shall serve until such time as
the Sponsor removes the Trustee or the Trustee resigns and a successor Trustee
is appointed by the Sponsor in accordance with the terms of Section 2.5 hereof.

          (b)
The Trustee may resign at any time upon the giving of at least 60 days’ advance
written notice to the Trust; provided that such resignation shall not become
effective unless and until a successor Trustee shall have been appointed by the
Sponsor in accordance with Section 2.5 hereof. If the Sponsor does not act
within such 60 day period, the Trustee may apply, at the expense of the Trust,
to the Court of Chancery of the State of Delaware for the appointment of a
successor Trustee. 

          Section
2.2. Powers of
Trustee. Except as set forth in Section 1.3(a) and this Article II,
the duty and authority to manage the business and affairs of the Trust is directly
vested in the Sponsor, which duty and authority the Sponsor may further
delegate as provided herein, all pursuant to section 3806(b)(7) of the DSTA.
The Trustee shall not be entitled to exercise any of the powers, nor shall the
Trustee have the duty to monitor the Sponsor’s performance of its duties and
responsibilities and the Trustee shall not have any of the duties and
responsibilities, of the Sponsor described in this Trust Agreement. The Trustee
shall be a Trustee for the sole and limited purpose of fulfilling the
requirements of section 3807 of the DSTA. The Trustee shall 

12

have only the
rights, obligations and liabilities specifically provided for herein and shall
have no implied rights, duties (including fiduciary duties), obligations and liabilities
with respect to the business and affairs of the Trust or any Fund. The Trustee
shall have the power and authority to execute and file certificates as required
by the DSTA and to accept service of process on the Trust in the State of
Delaware. The Trustee shall provide prompt notice to the Sponsor of its
performance of any of the foregoing. The Sponsor shall reasonably keep the
Trustee informed of any actions taken by the Sponsor with respect to the Trust
that would reasonably be expected to affect the rights, obligations or
liabilities of the Trustee hereunder or under the DSTA. 

          Section
2.3. Compensation
and Expenses of the Trustee. The Trustee shall be entitled to
receive from the Sponsor or an Affiliate of the Sponsor (excluding the Trust)
reasonable compensation for its services hereunder as set forth in a separate
fee agreement and shall be entitled to be reimbursed by the Sponsor or an
Affiliate of the Sponsor (excluding the Trust) for reasonable out-of-pocket
expenses incurred by it in the performance of its duties hereunder, including
without limitation, the reasonable compensation, out-of-pocket expenses and
disbursements of counsel and such other agents as the Trustee may employ in
connection with the exercise and performance of its rights and duties
hereunder, all as set forth in a separate fee agreement. 

          Section
2.4. Indemnification
of the Trustee. The Sponsor agrees (and any additional Sponsor
admitted pursuant to Section 4.2(g) hereof will be deemed to agree), whether or
not any of the transactions contemplated hereby shall be consummated, to assume
liability for, and does hereby indemnify, protect, save and keep harmless
Wilmington Trust Company (in its capacity as Trustee and individually) and its
successors, assigns, legal representatives, officers, directors, employees,
agents and servants (the “Trustee Indemnified Parties”) from and against any
and all liabilities, obligations, losses, damages, penalties, taxes (excluding
any taxes payable by the Trustee on or measured by any compensation received by
the Trustee for its services hereunder or any indemnity payments received by
the Trustee pursuant to this Section 2.4), claims, actions, suits, costs,
expenses or disbursements (including legal fees and expenses) of any kind and
nature whatsoever (collectively, “Expenses”), which may be imposed on, incurred
by or asserted against the Trustee Indemnified Parties in any way relating to
or arising out of the formation, operation or termination of the Trust, the
execution, delivery and performance of any other agreements to which the Trust
is a party or the action or inaction of the Trustee hereunder or thereunder,
except for Expenses resulting from the gross negligence or willful misconduct
of the Trustee Indemnified Parties. The indemnities contained in this Section
2.4 shall survive the termination of this Trust Agreement or the removal or
resignation of the Trustee. The Trustee Indemnified Parties shall not be
entitled to indemnification from any Trust Estate. 

          Section
2.5. Successor
Trustee. Upon the resignation or removal of the Trustee, the Sponsor
shall appoint a successor Trustee by delivering a written instrument to the
outgoing Trustee. Any successor Trustee must satisfy the requirements of
section 3807 of the DSTA. Any resignation or removal of the Trustee and
appointment of a successor Trustee shall not become effective until a written
acceptance of appointment is delivered by the successor Trustee to the outgoing
Trustee and the Sponsor and any fees and expenses due to the outgoing Trustee
are paid or waived by the outgoing Trustee. Following compliance with the
preceding sentence, the successor Trustee shall become fully vested with all of
the rights, powers, duties and obligations of the outgoing Trustee under this
Trust Agreement, with like effect as if originally

13

named as
Trustee, and the outgoing Trustee shall be discharged of its duties and
obligations under this Trust Agreement. 

          Section
2.6. Liability of
Trustee. Except as otherwise provided in this Article II, in
accepting the trust continued hereby, Wilmington Trust Company acts solely as
Trustee hereunder and not in its individual capacity, and all Persons having
any claim against Wilmington Trust Company by reason of the transactions
contemplated by this Trust Agreement and any other agreement to which the Trust
or any Fund is a party shall look only to the appropriate Fund Trust Estate for
payment or satisfaction thereof. The Trustee shall not be liable or accountable
hereunder to the Trust or to any other Person or under any other agreement to
which the Trust or any Fund is a party, except for the Trustee’s own gross
negligence or willful misconduct. In particular, but not by way of limitation: 

          (a)
The Trustee shall have no liability or responsibility for the validity or
sufficiency of this Trust Agreement or for the form, character, genuineness,
sufficiency, value or validity of any Trust Estate. 

          (b)
The Trustee shall not be liable for any actions taken or omitted to be taken by
it in accordance with the instructions of the Sponsor. 

          (c)
The Trustee shall not have any liability for the acts or omissions of the
Sponsor or its delegatees. 

          (d)
The Trustee shall not have any duty or obligation to, or liability for its
failure to, supervise the performance of any obligations of the Sponsor or its
delegatees or any Authorized Participant. 

          (e)
No provision of this Trust Agreement shall require the Trustee to act or expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its rights or powers hereunder if the Trustee shall have
reasonable grounds for believing that such action, repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured or
provided to it. 

          (f)
Under no circumstances shall the Trustee be liable for indebtedness evidenced
by or other obligations of the Trust or any Fund arising under this Trust
Agreement or any other agreements to which the Trust is a party. 

          (g)
The Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Trust Agreement, or to appear in, institute,
conduct or defend any action or litigation under this Trust Agreement or any
other agreements to which the Trust or any Fund is a party, at the request,
order or direction of the Sponsor or any Shareholders unless the Sponsor or
such Shareholders have offered to Wilmington Trust Company (in its capacity as
Trustee and individually) security or indemnity satisfactory to it against the
costs, expenses and liabilities that may be incurred by Wilmington Trust
Company (including, without limitation, the reasonable fees and expenses of its
counsel) therein or thereby. 

          (h)
The Trustee shall not be required to take any action hereunder or otherwise if
the Trustee shall have reasonably determined, or shall have been advised by
counsel, that such action

14

is likely to
result in liability on the part of the Trustee or is contrary to the terms
hereof or is otherwise contrary to law. 

          (i)
Notwithstanding anything contained herein to the contrary, the Trustee shall
not be required to take any action in any jurisdiction other than in the State
of Delaware if the taking of such action will require the consent or approval
or authorization or order of or the giving of notice to, or the registration
with or taking of any action in respect of, any state or other governmental
authority or agency of any jurisdiction other than the State of Delaware,
result in any fee, tax or other governmental charge under the laws of any
jurisdiction or any political subdivision thereof in existence as of the date
hereof other than the State of Delaware becoming payable by the Trustee or
subject the Trustee to personal jurisdiction, other than in the State of
Delaware, for causes of action arising from personal acts unrelated to the
consummation of the transactions by the Trustee, as the case may be,
contemplated hereby; 

          (j)
To the extent that, at law or in equity, the Trustee has duties (including
fiduciary duties) and liabilities relating thereto to the Trust, the
Shareholders or to any other Person, the Trustee acting under this Trust
Agreement shall not be liable to the Trust, the Shareholders or to any other
Person for its good faith reliance on the provisions of this Trust Agreement.
The provisions of this Trust Agreement, to the extent that they restrict the
duties (including fiduciary duties) and liabilities of the Trustee otherwise
existing at law or in equity are agreed by the parties hereto to replace such
other duties and liabilities of the Trustee. 

          Section
2.7. Payments to
the Trustee. Any amounts paid to the Trustee pursuant to this
Article shall be deemed not to be a part of any Trust Estate immediately after
such payment. 

ARTICLE III 

SHARES; SERIES; CAPITAL CONTRIBUTIONS

          Section
3.1. General.

          (a)
The Sponsor shall have the power and authority, without Shareholder approval,
to issue Shares in one or more Series, or Funds, from time to time as it deems
necessary or desirable. Each Fund shall be separate from all other Funds
created as Series of the Trust in respect of the assets and liabilities
allocated to that Fund and shall represent a separate investment portfolio of
the Trust. The Sponsor shall have exclusive power without the requirement of
Shareholder approval to establish and designate such separate and distinct
Series, as set forth in Section 3.2 hereof, and to fix and determine the
relative rights and preferences as between the Shares of the Funds as to right
of redemption, special and relative rights as to dividends and other
distributions and on liquidation, conversion rights, and conditions under which
the Funds shall have separate voting rights or no voting rights. 

          (b)
The Sponsor may, without Shareholder approval, divide or subdivide Shares of
any Fund into two or more classes or subclasses (each, a “Class”), Shares of
each such Class or subclass having such preferences and special or relative
rights and privileges as the Sponsor may determine as provided in Section 3.3
hereof. The fact that a Fund shall have been initially established and
designated without any specific establishment or designation of Classes or 

15

subclasses,
shall not limit the authority of the Sponsor to divide a Fund and establish and
designate separate Classes or subclasses thereof. 

          (c)
The number of Fund Shares authorized shall be unlimited, without par value, and
the Shares so authorized may be represented in part by fractional Shares,
calculated to four decimal places. From time to time, the Sponsor may divide or
combine the Shares of any Fund or Class thereof into a greater or lesser number
without thereby changing the proportionate beneficial interests in the Fund or
Class thereof. The Sponsor may issue Shares of any Fund or Class thereof for
such consideration and on such terms as it may determine (or for no
consideration if pursuant to a Share dividend or split-up), all without action
or approval of the Shareholders thereof. All Shares when so issued on the terms
determined by the Sponsor shall be fully paid and non-assessable. The Sponsor
may classify or reclassify any unissued Shares or any Shares previously issued
and reacquired of any Fund or Class thereof into one or more Series or Classes
thereof that may be established and designated from time to time. The Sponsor
may hold as treasury Shares, reissue for such consideration and on such terms
as it may determine, or cancel, at its discretion from time to time, any Shares
of any Fund or Class thereof reacquired by the Trust. Unless otherwise
determined by the Sponsor, treasury Shares shall not be deemed cancelled. 

          (d)
No certificates or other evidence of beneficial ownership of the Shares will be
issued. 

          (e)
Every Shareholder, by virtue of having purchased or otherwise acquired a Share,
shall be deemed to have expressly consented and agreed to be bound by the terms
of this Trust Agreement. 

          (f)
Except to the extent otherwise provided in the instrument establishing such
Series, all the Shares of each particular Series shall represent an equal
proportionate interest in the assets held with respect to that Series (subject
to the liabilities held with respect to that Series and such rights and
preferences as may have been established and designated with respect to Classes
of Shares within such Series.) 

          (g)
Except to the extent otherwise provided in the instrument establishing such
Series, any fractional Share of a Series shall carry proportionately all the
rights and obligations of a whole Share of that Series, including rights with
respect to voting, receipt of dividends and distributions, redemption of Shares
and termination of the Trust. 

          (h)
The Sponsor shall have the authority to provide that the holders of Shares of
any Series shall have the right to exchange said Shares for Shares of one or
more other Series of Shares in conformity with such requirements and procedures
as may be established by the Sponsor. 

          Section
3.2. Establishment
of Series, or Funds, of the Trust. 

          (a)
Without limiting the authority of the Sponsor set forth in Section 3.2(b)
hereof to establish and designate any further Series, the Sponsor hereby
establishes and designates 18 initial Series (the “Initial Funds”) as follows: 

16

ETFS ex-U.S. Oil

ETFS Natural Gas

ETFS Copper

ETFS Wheat

ETFS Composite Agriculture

ETFS Composite Industrial Metals

ETFS Composite Energy

ETFS All Commodities

ETFS Short ex-U.S. Oil

ETFS Short Natural Gas

ETFS Short Copper

ETFS Short Wheat

ETFS Short Gold

ETFS Leveraged ex-U.S. Oil

ETFS Leveraged Natural Gas

ETFS Leveraged Copper
 ETFS Leveraged Wheat

ETFS Leveraged Gold

          The
provisions of this Article III shall be applicable to the above-designated
Funds and any further Fund that may from time to time be established and
designated by the Sponsor as provided in Section 3.2(b) hereof; provided,
however, that such provisions may be amended, varied or abrogated by the
Sponsor with respect to any Fund created after the initial formation of the
Trust in the written instrument creating such Fund. 

          (b)
The establishment and designation of any Series, or Funds, other than those set
forth above shall be effective upon the execution by the Sponsor of an
instrument setting forth such establishment and designation, whether directly
in such instrument or by reference to, or approval of, another document that
sets forth such Series including a Registration Statement, and the relative
rights and preferences of such series, or Funds, or as otherwise provided in
such instrument. At any time that there are no Shares outstanding of any
particular Series previously established and designated, the Sponsor may by an
instrument executed by it abolish that Series and the establishment and
designation thereof. Each instrument referred to in this paragraph shall have
the status of an amendment to this Trust Agreement. 

          (c)
The relative rights and preferences of the Initial Funds shall be as set forth
in the Registration Statement for such Funds. 

          Section
3.3. Establishment
of Classes and Sub-Classes. The division of any Series, or Funds,
into two or more Classes or subclasses and the establishment and designation of
such Classes or subclasses shall be effective upon the execution by the Sponsor
of an instrument setting forth such division, whether directly in such
instrument or by reference to, or approval of, another document that sets forth
such Series including a Registration Statement, and the establishment,
designation, and relative rights and preferences of such Classes, or as
otherwise provided in such instrument. The relative rights and preferences of
the Classes or subclasses of any Series may differ in such respects as the
Sponsor may determine to be appropriate, provided that such differences are set
forth in the aforementioned instrument. At any time that there are

17

no Shares
outstanding of any particular Class or subclass previously established and
designated, the Sponsor may by an instrument executed by it abolish that Class
or subclass and the establishment and designation thereof. Each instrument
referred to in this paragraph shall have the status of an amendment to this
Trust Agreement. The Shares of each Fund shall initially be a single Class. 

          Section
3.4. Offer of
Shares, Procedures for Creation and Issuance of Creation Units. 

          (a)
General. The procedures specified in the Authorized Participant
Agreement for each Fund, which may be amended from time to time in accordance
with the provisions of the Authorized Participant Agreement (and any such
amendment will not constitute an amendment of this Trust Agreement) will govern
the Trust with respect to the creation and issuance of additional Creation
Units. Subject to the limitations upon and requirements for issuance of
Creation Units stated herein and in such procedures, the number of Creation
Units which may be issued by each Fund is unlimited. 

          (b)
Deposit with the Depository. Upon issuing a Creation Unit for any Fund
pursuant to a purchase order to subscribe for and agree to purchase one or more
Creation Unit for the applicable Fund (such request by a Authorized
Participant, a “Purchase Order”), the Sponsor will cause the Trust to deposit
the Creation Unit with the Depository in accordance with the Depository’s
customary procedures, for credit to the account of the Fund Authorized
Participant that submitted the Purchase Order. 

          (c)
Rejection. For each Fund, the Sponsor shall have the absolute right, but
shall have no obligation, to reject any Purchase Order or Creation Unit Capital
Contribution: (i) determined by the Sponsor not to be in proper form; (ii) that
the Sponsor has determined would have adverse tax consequences to the Trust,
any Fund or to any Shareholders; (iii) the acceptance or receipt of which
would, in the opinion of counsel to the Sponsor, be unlawful; (iv) if
circumstances outside the control of the Sponsor make it for all practical
purposes not feasible to process creations of Creation Units or (v) for any
additional reasons as set forth in the Prospectus applicable to such Fund. The
Sponsor shall not be liable to any person by reason of the rejection of any
Purchase Order or Creation Unit Capital Contribution. 

          (d)
Transaction Fee. For each Fund, a non-refundable transaction fee will be
payable by an Authorized Participant to the Administrator for its own account
in connection with each Purchase Order pursuant to this Section 3.4 and in
connection with each Redemption Order of such Authorized Participant pursuant
to Section 9.1 hereof (each, a “Transaction Fee”). The Transaction Fee charged
in connection with each such creation and redemption shall be initially $[___],
but may be changed as provided below. Even though a single Purchase Order or
Redemption Order may relate to multiple Creation Units, only a single
Transaction Fee will be due for each Purchase Order or Redemption Order for a
Fund. The Transaction Fee may subsequently be waived, modified, reduced,
increased or otherwise changed by the Sponsor. The Sponsor shall notify the
Depository of any agreement to change the Transaction Fee and shall not
implement any increase for redemptions of outstanding Shares until 30 days
after the date of that notice. The amount of the Transaction Fee in effect at
any given time shall be made available by the Administrator upon request. 

18

          (e)
Global Certificate Only. Certificates for Creation Units will not be
issued, other than the applicable Global Security issued to the Depository. So
long as the Depository Agreement is in effect, Creation Units will be issued
and redeemed and Shares will be transferable solely through the book-entry
systems of the Depository and the DTC Participants and their Indirect DTC
Participants as more fully described in Section 3.5 hereof. The Depository may
determine to discontinue providing its service with respect to Creation Units
and Shares by giving notice to the Sponsor pursuant to and in conformity with
the provisions of the Depository Agreement and discharging its responsibilities
with respect thereto under applicable law. Under such circumstances, the
Sponsor shall take action either to find a replacement for the Depository to
perform its functions at a comparable cost and on terms acceptable to the
Sponsor or, if such a replacement is unavailable, to terminate the Trust or the
Funds, as applicable. 

          Section
3.5. Book-Entry-Only
System, Fund Global Securities. 

          (a)
Global Security. The Trust and the Sponsor will enter into the
Depository Agreement pursuant to which the Depository will act as securities
depository for Shares of each Fund. Shares of each Fund will be represented by
a Global Security (which may consist of one or more certificates as required by
the Depository), which will be registered, as the Depository shall direct, in
the name of Cede & Co., as nominee for the Depository and deposited with,
or on behalf of, the Depository. No other certificates evidencing Shares will
be issued. The Global Security for each Fund shall be in the form attached
hereto as Exhibit A or described therein and shall represent such Shares as
shall be specified therein, and may provide that it shall represent the
aggregate amount of outstanding Shares of a Fund from time to time endorsed
thereon and that the aggregate amount of outstanding Shares represented thereby
may from time to time be increased or decreased to reflect creations or
redemptions of Baskets. Any endorsement of a Global Security to reflect the
amount, or any increase or decrease in the amount, of outstanding Shares
represented thereby shall be made in such manner and upon instructions given by
the Sponsor on behalf of the Trust as specified in the Depository Agreement. 

          (b)
Legend. Any Global Security issued to DTC or its nominee shall bear a
legend substantially to the following effect: “Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such
other entity as is required by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has
an interest herein.” 

          (c)
The Depository. The Depository has advised the Trust and the Sponsor as
follows: The Depository is a limited-purpose trust company organized under the
laws of the State of New York, a member of the U.S. federal Reserve System, a
“clearing corporation” within the meaning of the New York Uniform Commercial
Code, and a “clearing agency” registered pursuant to the provisions of section
17A of the Securities Exchange Act of 1934, as amended. The Depository was
created to hold securities of its Authorized Participants (the “DTC
Participants”) and to facilitate the clearance and settlement of securities
transactions among the DTC Participants in such securities through electronic
book-entry changes in accounts of the DTC Participants,

19

thereby
eliminating the need for physical movement of securities certificates. DTC
Participants include securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations, some of whom (and/or
their representatives) own the Depository. Access to the Depository’s system is
also available to others such as banks, brokers, dealers and trust companies
that clear through or maintain a custodial relationship with a DTC Participant,
either directly or indirectly (“Indirect DTC Participants”). 

          (d)
Beneficial Owners. As provided in the Depository Agreement, upon the
settlement date of any creation, transfer or redemption of Shares of a Fund,
the Depository will credit or debit, on its book-entry registration and
transfer system, the number of Shares so created, transferred or redeemed to
the accounts of the appropriate DTC Participants. The accounts to be credited
and charged shall be designated by the Sponsor on behalf of each Fund and each
Authorized Participant, in the case of a creation or redemption of Baskets.
Ownership of beneficial interest in Shares will be limited to DTC Participants,
Indirect DTC Participants and persons holding interests through DTC
Participants and Indirect DTC Participants. Owners of beneficial interests in
Shares (“Beneficial Owners”) will be shown on, and the transfer of beneficial
ownership by Beneficial Owners will be effected only through, in the case of
DTC Participants, records maintained by the Depository and, in the case of
Indirect DTC Participants and Beneficial Owners holding through a DTC
Participant or an DTC Participant, through those records or the records of the
relevant DTC Participants. Beneficial Owners are expected to receive from or
through the broker or bank that maintains the account through which the
Beneficial Owner has purchased Shares a written confirmation relating to their
purchase of Shares. 

          (e)
Reliance on Procedures. So long as Cede & Co., as nominee of the
Depository, is the registered owner of Shares, references herein to the
registered or record owners of Shares shall mean Cede & Co. and shall not
mean the Beneficial Owners of Shares. Beneficial Owners of Shares will not be
entitled to have Shares registered in their names, will not receive or be
entitled to receive physical delivery of certificates in definitive form and
will not be considered the record or registered holder of Shares under this
Trust Agreement. Accordingly, to exercise any rights of a holder of Shares
under this Trust Agreement, a Beneficial Owner must rely on the procedures of
the Depository and, if such Beneficial Owner is not a DTC Participant, on the
procedures of each DTC Participant or DTC Participant through which such
Beneficial Owner holds its interests. The Trust and the Sponsor understand that
under existing industry practice, if the Trust or any Fund requests any action
of a Beneficial Owner, or a Beneficial Owner desires to take any action that
the Depository, as the record owner of all outstanding Shares of such Fund, is
entitled to take, in the case of a Trustee request, the Depository will notify
the DTC Participants regarding such request, such DTC Participants will in turn
notify each DTC Participant holding Shares through it, with each successive DTC
Participant continuing to notify each person holding Shares through it until
the request has reached the Beneficial Owner, and in the case of a request or
authorization to act being sought or given by a Beneficial Owner, such request
or authorization is given by the Beneficial Owner and relayed back to the Trust
or such Fund through each Indirect DTC Participant and DTC Participant through
which the Beneficial Owner’s interest in the Shares is held. 

          (f)
Communication between the Trust and the Beneficial Owners. As described
above, the Trust and the Funds will recognize the Depository or its nominee as
the owner of all Shares

20

for all
purposes except as expressly set forth in this Trust Agreement. Conveyance of
all notices, statements and other communications to Beneficial Owners will be
effected as follows. Pursuant to the Depository Agreement, the Depository is
required to make available to the Funds upon request and for a fee to be
charged to the Funds a listing of the Share holdings of each DTC Participant.
The Trust or the Funds shall inquire of each such DTC Participant as to the
number of Beneficial Owners holding Shares, directly or indirectly, through
such DTC Participant. The Trust or the Funds shall provide each such DTC
Participant with sufficient copies of such notice, statement or other
communication, in such form, number and at such place as such DTC Participant
may reasonably request, in order that such notice, statement or communication
may be transmitted by such DTC Participant, directly or indirectly, to such
Beneficial Owners. In addition, the Funds shall pay to each such DTC
Participant an amount as reimbursement for the expenses attendant to such
transmittal, all subject to applicable statutory and regulatory requirements. 

          (g)
Distributions. Distributions on Shares pursuant to Section 3.8 hereof
shall be made to the Depository or its nominee, Cede & Co., as the
registered owner of all Shares. The Trust and the Sponsor expect that the
Depository or its nominee, upon receipt of any payment of distributions in
respect of Shares, shall credit immediately DTC Participants’ accounts with
payments in amounts proportionate to their respective beneficial interests in
Shares as shown on the records of the Depository or its nominee. The Trust and
the Sponsor also expect that payments by DTC Participants to Indirect DTC
Participants and Beneficial Owners held through such DTC Participants and
Indirect DTC Participants will be governed by standing instructions and
customary practices, as is now the case with securities held for the accounts
of customers in bearer form or registered in a “street name,” and will be the
responsibility of such DTC Participants and Indirect DTC Participants. None of
the Trust, the Funds, the Trustee or the Sponsor will have any responsibility
or liability for any aspects of the records relating to or notices to
Beneficial Owners, or payments made on account of beneficial ownership
interests in Shares, or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests or for any other aspect of the
relationship between the Depository and the DTC Participants or the
relationship between such DTC Participants and the Indirect DTC Participants
and Beneficial Owners owning through such DTC Participants or Indirect DTC
Participants or between or among the Depository, any Beneficial Owner and any
person by or through which such Beneficial Owner is considered to own Shares. 

          (h)
Limitation of Liability. Each Global Security to be issued hereunder is
executed and delivered solely on behalf of the applicable Fund by the Sponsor,
as Sponsor, in the exercise of the powers and authority conferred and vested in
it by this Trust Agreement. The representations, undertakings and agreements
made on the part of the Fund in each Global Security are made and intended not
as personal representations, undertakings and agreements by the Sponsor or the
Trustee, but are made and intended for the purpose of binding only the Fund.
Nothing in the Global Security shall be construed as creating any liability on
the Sponsor or the Trustee, individually or personally, to fulfill any
representation, undertaking or agreement other than as provided in this Trust
Agreement. 

          (i)
Successor Depository. If a successor to DTC shall be employed as
Depository hereunder, the Trust and the Sponsor shall establish procedures
acceptable to such successor with respect to the matters addressed in this
Section 3.5.

21

          Section
3.6. Assets.
The Trust Estate of each Fund shall be held in separate and distinct accounts
(directly or indirectly, including through a nominee or otherwise) and
accounted for in such separate and distinct records separately from the other
assets of the Trust and every other Series and are referred to as “assets
belonging to” that Series. The assets belonging to a Series shall belong only
to that Series for all purposes, and to no other Series, and shall be subject
only to the rights of creditors of that Series. Any assets, income, earnings,
profits, and proceeds thereof, funds, or payments which are not readily
identifiable as belonging to any particular Series shall be allocated between
and among one or more Series as the Sponsor deems fair and equitable. Each such
allocation shall be conclusive and binding upon the Shareholders of all Series
for all purposes, and such assets, earnings, income, profits or funds, or
payments and proceeds thereof shall be referred to as assets belonging to that
Series. The assets belonging to a Series shall be so recorded upon the books of
the Trust, and shall be held in trust for the benefit of the Shareholders of
that Series. The assets belonging to a Series shall be charged with the
liabilities of that Series and all expenses, costs, charges, indemnities and
reserves attributable to that Series, except that liabilities, expenses, costs,
charges, indemnities and reserves allocated solely to a particular Class, if
any, shall be borne by that Class. 

          Section
3.7. Liabilities of
the Funds. 

          (a)
The debts, liabilities, obligations, expenses, costs, charges, indemnities and
reserves incurred, contracted for, attributable to or otherwise existing with
respect to a particular Series shall be enforceable against the assets of such
Series only, and not against the assets of the Trust generally or of any other
Series and, unless otherwise provided by the Sponsor, none of the debts,
liabilities, obligations, expenses, costs, charges, indemnities and reserves
incurred, contracted for, attributable to or otherwise existing with respect to
the Trust generally or any other Series shall be enforceable against the assets
of such Series. Any general liabilities, expenses, costs, charges, indemnities
or reserves of the Trust which are not readily identifiable as being held with
respect to any particular Series shall be allocated and charged by the Sponsor
to and among any one or more of the Series in such manner and on such basis as
the Sponsor in its sole discretion deems fair and equitable. Notice of the
contractual limitation on liabilities among Series described in the first
sentence of this paragraph shall be set forth in the Certificate of Trust of
the Trust (whether originally or by amendment) as filed or to be filed in the
Office of the Secretary of State of the State of Delaware pursuant to the DSTA,
and upon the giving of such notice in the certificate of trust, the statutory
provisions of section 3804 of the DSTA relating to limitations on liabilities
among Series (and the statutory effect under section 3804 of the DSTA of
setting forth such notice in the certificate of trust) shall become applicable
to the Trust and each Series. Any person extending credit to, contracting with
or having any claim against any Series may look only to the assets of that
Series to satisfy or enforce any debt, with respect to that Series. No
Shareholder or former Shareholder of any Series shall have a claim on or any
right to any assets allocated or belonging to any other Series, except to the
extent that such Shareholder or former Shareholder has such a claim or right
hereunder as a Shareholder or former Shareholder of such other Series. Every
Share, note, bond, contract, instrument, certificate or other undertaking made
or issued by or on behalf of a particular Series shall include a recitation
limiting the obligation on Shares represented thereby to that Series and its
assets. 

          (b)
Except as set forth below, any debts, liabilities, obligations, indebtedness,
expenses, interests and claims of any nature and all kinds and descriptions
(“Claims”), if any, of the

22

Sponsor and
the Trustee (the “Subordinated Claims”) incurred, contracted for or otherwise
existing, arising from, related to or in connection with all Series, any
combination of Series or one particular Series and their respective assets (the
“Applicable Series”) and the assets of the Trust shall be expressly subordinate
and junior in right of payment to any and all other Claims against the Trust
and any Series thereof, and any of their respective assets, which may arise as
a matter of law or pursuant to any contract, provided, however, that the Claims
of each of the Sponsor and the Trustee (if any) against the Applicable Series
shall not be considered Subordinated Claims with respect to enforcement against
and distribution and repayment from the Applicable Series and the Applicable
Series’ assets; and provided further that the valid Claims of either the
Sponsor or the Trustee, if any, against the Applicable Series shall be pari
passu and equal in right of repayment and distribution with all other valid
Claims against the Applicable Series. 

          (c)
The Sponsor and the Trustee will not take, demand or receive from any Fund or
the Trust or any of their respective assets (other than the Applicable Series
and the Applicable Series’ assets) any payment for the Subordinated Claims. 

          (d)
The Claims of each of the Sponsor and the Trustee with respect to the
Applicable Series shall only be asserted and enforceable against the Applicable
Series and the Applicable Series’ assets; and such Claims shall not be asserted
or enforceable for any reason whatsoever against any other Series, the Trust
generally, or any of their respective assets. 

          (e)
If the Claims of the Sponsor or the Trustee against the Applicable Series or
the Trust are secured in whole or in part, each of the Sponsor and the Trustee
hereby waives (under section 1111(b) of the Bankruptcy Code (11 U.S.C. §
1111(b)) any right to have any deficiency Claims (which deficiency Claims may
arise in the event such security is inadequate to satisfy such Claims) treated
as unsecured Claims against the Trust or any Series (other than the Applicable
Series), as the case may be. 

          (f)
In furtherance of the foregoing, if and to the extent that the Sponsor and the
Trustee receive monies in connection with the Subordinated Claims from a Fund
or the Trust (or their respective assets), other than the Applicable Series and
such Applicable Series’ assets, the Sponsor and the Trustee shall be deemed to
hold such monies in trust and shall promptly remit such monies to the Fund or
the Trust that paid such amounts for distribution by the Fund or the Trust in
accordance with the terms hereof. 

          (g)
The foregoing segregation of the liabilities and assets of and among the Series
shall apply at all times notwithstanding that the Claims are satisfied, and
notwithstanding that the agreements in respect of such Claims are terminated,
rescinded or canceled. 

          (h)
Any agreement entered into by the Trust, any Fund, or the Sponsor, on behalf of
the Trust generally or any Fund, including, without limitation, the Authorized
Participant Agreements entered into with each Authorized Participant, will
include language substantially similar to the language set forth in Section
3.7(a) hereof. 

23

          Section
3.8. Distributions.

          (a)
Distributions on Shares may be paid with such frequency as the Sponsor may
determine, which may be daily or otherwise, to the Shareholders, from such of
the income and capital gains, accrued or realized, from each Trust Estate,
after providing for actual and accrued liabilities. Except to the extent the
Sponsor otherwise determines, all distributions on Shares thereof shall be
distributed pro rata to the Shareholders in proportion to the total outstanding
Shares held by such Shareholders at the date and time of record established for
the payment of such distribution and in accordance with Section 3.5(g) hereof.
Such distributions may be made in cash or Shares as determined by the Sponsor
or pursuant to any program that the Sponsor may have in effect at the time for
the election by each Shareholder of the mode of the making of such distribution
to that Shareholder. Nothing in this Section 3.8 shall obligate the Sponsor to
cause the Trust to make any distributions. 

          (b)
The Shares shall represent shares of beneficial interest in each applicable
Fund Trust Estate. Each Shareholder shall be entitled to receive its pro rata
share of distributions of income and capital gains in accordance with Section
3.8(a) hereof. 

          (c)
Notwithstanding any other provisions of this Trust Agreement, no distribution
including, without limitation, any distribution paid upon termination of the
Trust or of any Series or Class with respect to, nor any redemption or repurchase
of, the Shares of any Series or Class shall be effected by the Trust other than
from the assets held with respect to such Series. The Sponsor shall have full
discretion to determine which items shall be treated as income and which items
as capital; and each such determination and allocation shall be conclusive and
binding upon the Shareholders. 

ARTICLE IV 

THE SPONSOR

          Section
4.1. Management of
the Trust. Pursuant to sections 3806(a) and 3806(b)(7) of the DSTA,
the business and affairs of the Trust and each Fund shall be managed by the
Sponsor in lieu of the Trustee with such powers of delegation as may be
permitted by law. The Sponsor shall have power to conduct the business of the
Trust and each Fund and carry on its operations in any and all of its branches
and maintain offices both within and without the State of Delaware, in any and
all states of the U.S., in the District of Columbia, in any and all
commonwealths, territories, dependencies, colonies, or possessions of the U.S.,
and in any foreign jurisdiction and to do all such other things and execute all
such instruments as it deems necessary, proper or desirable in order to promote
the interests of the Trust and the Funds although such things are not herein
specifically mentioned. Any determination as to what is in the interests of the
Trust or a Fund made by the Sponsor in good faith shall be conclusive. In
construing the provisions of this Trust Agreement, the presumption shall be in
favor of a grant of power to the Sponsor. The enumeration of any specific power
in this Trust Agreement shall not be construed as limiting the aforesaid power.
The powers of the Sponsor may be exercised without order of or resort to any
court. 

          Section
4.2. Authority of
Sponsor. In addition to and not in limitation of any rights and
powers conferred by law or other provisions of this Trust Agreement, the
Sponsor shall have and 

24

may exercise
on behalf of the Trust and each Fund, all powers and rights necessary, proper,
convenient or advisable to effectuate and carry out the purposes, business and
objectives of the Trust and each Fund, which shall include, without limitation,
the following: 

          (a)
To enter into, execute, deliver and maintain, and to cause the Trust, for
itself or on behalf of the Funds, to perform its obligations under, contracts,
agreements and any or all other documents and instruments, and to do and
perform all such things as may be in furtherance of Trust and Fund purposes or
necessary or appropriate for the offer and sale of the Shares and the conduct
of Trust and Fund activities. 

          (b)
To establish, maintain, deposit into, sign checks and/or otherwise draw upon
accounts on behalf of the Trust or the Funds with appropriate banking and
savings institutions, and execute and/or accept any instrument or agreement
incidental to the Trust’s business and in furtherance of its purposes, any such
instrument or agreement so executed or accepted by the Sponsor in the Sponsor’s
name shall be deemed executed and accepted on behalf of the Trust by the
Sponsor. 

          (c)
To deposit, withdraw, pay, retain and distribute each Trust Estate or any
portion thereof in any manner consistent with the provisions of this Trust
Agreement. 

          (d)
To supervise the preparation and filing of the Registration Statement, the
Prospectus and any supplements and amendments thereto. 

          (e)
To pay or authorize the payment of distributions to the Shareholders and
expenses of the Trust and each Fund. 

          (f)
To make any elections on behalf of the Trust or any Fund under the Code, or any
other applicable U.S. federal or state tax law as the Sponsor shall determine
to be in the best interests of the Trust. 

          (g)
In the sole discretion of the Sponsor, to admit an Affiliate or Affiliates of
the Sponsor as additional Sponsors. 

          (h)
To adopt disclosure and financial reporting information gathering and control
policies and procedures. 

          (i)
To make any necessary determination or decision in connection with the
preparation of each Fund’s financial statements and amendments thereto, and the
Prospectus. 

          (j)
To prepare, file and distribute, if applicable, any periodic reports or updates
that may be required under the Securities Exchange Act of 1934, the CEA, or the
rules and regulations thereunder. 

          (k)
Execute, file, record and/or publish all certificates, statements and other
documents and do any and all other things as may be appropriate for the
formation, qualification and operation of the Trust and for the conduct of its
business in all appropriate jurisdictions. 

          (l)
Appoint and remove independent public accountants to audit the accounts of the
Trust. 

25

          (m)
Employ attorneys to represent the Trust. 

          (n)
Adopt, implement or amend, from time to time, such disclosure and financial
reporting information gathering and control policies and procedures as are
necessary or desirable to ensure compliance with applicable disclosure and
financial reporting obligations under any applicable securities laws. 

          (o)
For any Fund, enter into an Authorized Participant Agreement for the Trust on
behalf of such Fund, the Administrator or any other Person and each Authorized
Participant and discharge the duties and responsibilities of the Fund
thereunder. 

          (p)
For each Fund, receive directly, or indirectly through the Administrator or
another Person, Purchase Orders and process or cause the Administrator to
process properly submitted Purchase Orders. 

          (q)
For each Fund, in connection with Purchase Orders, receive directly, or
indirectly through another Person, on behalf of such Fund, Creation Unit
Capital Contributions from Authorized Participants and thereupon issue or cause
to be issued to a purchasing Authorized Participant through the Depository the
Shares of such Fund to be purchased in connection with the Purchase Order. 

          (r)
For each Fund, receive directly, or indirectly through the Administrator or
another Person, Redemption Orders from Authorized Participants and process or
cause the Administrator to process properly submitted Redemption Orders. 

          (s)
For each Fund, receive directly, or indirectly through the Administrator or
another Person, the Shares subject to a Redemption Order from a redeeming
Authorized Participant through the Depository, and thereupon cancel or cause to
be cancelled the Shares so redeemed in connection with such Redemption Order. 

          (t)
Cause the Trust on behalf of each Fund to enter into one or more asset
custodial agreements and collateral maintenance or management agreements on
terms and conditions acceptable to the Sponsor. 

          (u)
Cause the Trust to borrow funds and to mortgage and pledge the assets of the
Trust or any Fund or any part thereof to secure obligations arising in
connection with such borrowing. 

          (v)
Cause the Trust to endorse or guarantee the payment of any notes or other
obligations of any person; to make contracts of guaranty or suretyship, or
otherwise assume liability for payment thereof; and to mortgage and pledge
Trust or Fund property or any part thereof to secure any of or all such
obligations. 

          (w)
Cause the Trust to purchase and pay for entirely out of Trust or Fund property
such insurance as the Sponsor may deem necessary or appropriate for the conduct
of the business, including, without limitation, insurance policies insuring the
assets of the Trust and payment of distributions and principal on its portfolio
investments, and insurance policies insuring the Shareholders, Trustee,
Sponsor, officers, employees, agents, consultants, investment advisers,
managers, administrators, distributors, principal underwriters, or independent
contractors, or any 

26

thereof (or
any person connected therewith), of the Trust individually against all claims
and liabilities of every nature arising by reason of holding, being or having
held any such office or position, or by reason of any action alleged to have
been taken or omitted by any such person in any such capacity, including any
action taken or omitted that may be determined to constitute negligence,
whether or not the Trust would have the power to indemnify such person against
such liability. 

          (x)
Authorize the Trust, for the Trust or any Fund, to enter into one or more
administration, transfer agency and accounting agreements and agreements for
such other services necessary or appropriate to carry out the business and
affairs of the Trust with any party or parties on terms and conditions acceptable
to the Sponsor, including but not limited to agreements with legal counsel and
an independent registered public accounting firm. 

          (y)
Interact with the Depository as required. 

          (z)
Enter into and perform, or cause the performance of, the Sponsor Agreement on
terms and conditions acceptable to the Sponsor. 

          (aa)
Prosecute, defend, settle or compromise actions or claims at law or in equity
as may be necessary or proper to enforce or protect the Trust’s interests. The
Sponsor shall satisfy any judgment, decree or decision of any court, board or
authority having jurisdiction or any settlement of any suit or claim prior to
judgment or final decision thereon, first, out of any insurance proceeds
available therefor, next, out of the Funds’ assets on a pro rata basis
according to the relative amount of assets of each Fund. 

          (bb)
Delegate those of its duties hereunder as it shall determine from time to time
to one or more officers of the Trust, the Administrator, or other Persons. 

          (cc)
In general, to carry on any other business in connection with or incidental to
any of the foregoing powers, to do everything necessary, suitable or proper for
the accomplishment of any purpose or the attainment of any object or the
furtherance of any power herein set forth, either alone or in association with
others, and to do every other act or thing incidental or appurtenant to or
growing out of or connected with the aforesaid business or purposes, objects or
powers. 

The
foregoing clauses shall be construed both as objects and powers, and the
foregoing enumeration of specific powers shall not be held to limit or restrict
in any manner the general powers of the Sponsor. Any action by one or more of
the Sponsor hereunder shall be deemed an action on behalf of the Trust or the
applicable Series or Class, and not an action in an individual capacity. 

          Section
4.3. Expenses of
the Trust. 

          (a)
Unless otherwise assumed by the Sponsor, the Sponsor is authorized to pay or
cause to be paid out of the Trust Estate of a Fund any fees and expenses of the
Fund that are extraordinary or non-recurring in nature, including (without
limitation) legal claims and liabilities, litigation costs or indemnification
or other unanticipated expenses. Extraordinary fees 

27

and expenses
affecting the Trust as a whole will be prorated to each Fund according to its
respective Fund Value. 

          (b)
The Sponsor shall be responsible for all organizational and offering expenses of
the Trust, and for the routine operational, administrative, and other ordinary
expenses of the Trust and each Fund, including (without limitation) fees for
the Trustee’s ordinary services and reimbursement of its out-of-pocket expenses
as provided in Section 2.3 hereof, the fees and expenses reimbursable to the
agency service provider, the Custodian, the Administrator and other service
providers of the Trust, listing fees of the Exchange, registration fees charged
by the Commission and other regulatory and self-regulatory organizations,
printing and mailing costs, audit fees and expenses and legal fees and expenses
not in excess of $100,000 per year. 

          Section
4.4. Liability of
Covered Persons. A Covered Person shall have no liability to the
Trust or to any Shareholder, Beneficial Owner, Authorized Participant or to any
other Covered Person for any loss suffered by the Trust that arises out of any
action or inaction of such Covered Person if such Covered Person, in good
faith, determined that such course of conduct was in the best interest of the
Trust and such course of conduct did not constitute gross negligence or bad
faith of such Covered Person. Subject to the foregoing, no Covered Person shall
be personally liable for the return or repayment of all or any portion of the
capital or profits of any Shareholder, Beneficial Owner, Authorized Participant
or assignee thereof, it being expressly agreed that any such return of capital
or profits made pursuant to this Agreement shall be made solely from the assets
of the Trust without any rights of contribution from any Covered Person. A
Covered Person shall not be liable for the conduct or misconduct of any
delegatee selected by the Sponsor pursuant to Section 4.7 hereof; provided,
however, that in the case of the Sponsor the foregoing shall only apply if the
Sponsor made such selection with reasonable care. 

          Section
4.5. Elimination
and Limitation of Duties and Liabilities of the Sponsor. 

          (a)
The parties hereto expressly agree to eliminate, to the fullest extent
permitted under Delaware law, any and all duties at law or in equity (including
fiduciary duties) that may be applicable to the Sponsor in the Sponsor’s
management of the Trust and performance under this Trust Agreement other than
any duties expressly imposed by the provisions of this Trust Agreement.
Pursuant to section 3806(e) of the DSTA, the Sponsor and its Affiliates shall
have no liabilities, at law or in equity, for breaches of duties (including
fiduciary duties) to the Trust, the Shareholders, the Beneficial Owners, the
Authorized Participants or any other Person under this Trust Agreement or
otherwise in its management of the Trust. To the fullest extent permitted by
section 3806(e) of the DSTA, the Sponsor acting under this Agreement shall not
be liable, at law or in equity, for breaches of this Trust Agreement to the
Trust, the Shareholders, the Beneficial Owners, the Authorized Participants or
any other Person for its management of the Trust and its performance under this
Trust Agreement, provided that such management and performance is within the
standard of care set forth in Section 4.4 hereof. The provisions of this Trust
Agreement, to the extent that they restrict the duties and liabilities of the
Sponsor otherwise existing at law or in equity are agreed by the parties hereto
to replace such other duties and liabilities of the Sponsor. 

          (b)
Unless otherwise expressly provided herein: 

28

	
  

 	
  

 
	
  

 	
           (i)
 whenever a conflict of interest exists or arises between the Sponsor or any
 of its Affiliates, on the one hand, and the Trust or any Shareholder,
 Beneficial Owner, Authorized Participant or other Person, on the other hand;
 or 

 
	
  

 	
  

 
	
  

 	
           (ii)
 whenever this Agreement or any other agreement contemplated herein provides
 that the Sponsor shall act in a manner that is, or provides terms that are,
 fair and reasonable to the Trust, any Shareholder, Beneficial Owner,
 Authorized Participant or other Person, 

 

the Sponsor
shall resolve such conflict of interest, take such action or provide such
terms, considering in each case the relative interest of each party (including
its own interest) to such conflict, agreement, transaction or situation and the
benefits and burdens relating to such interests, any customary or accepted
industry practices, and any applicable generally accepted accounting practices
or principles. In the absence of bad faith by the Sponsor, the resolution,
action or terms so made, taken or provided by the Sponsor shall not constitute
a breach of this Agreement or any other agreement contemplated herein or of any
duty or obligation of the Sponsor at law or in equity or otherwise. 

          (c)
Notwithstanding any other provision of this Agreement or of applicable law,
whenever in this Agreement the Sponsor is permitted or required to make a
decision 

	
  

 	
  

 
	
  

 	
           (i)
 in its “discretion” or under a grant of similar authority, the Sponsor shall
 be entitled to consider such interests and factors as it desires, including
 its own interests, and, to the fullest extent permitted by applicable law,
 shall have no duty or obligation to give any consideration to any interest of
 or factors affecting the Trust, any Shareholder, any Beneficial Owner, any
 Authorized Participant or any other Person; or 

 
	
  

 	
  

 
	
  

 	
           (ii)
 in its “good faith” or under another express standard, the Sponsor shall act
 under such express standard and shall not be subject to any other or
 different standard. 

 

          (d)
The Sponsor and any of its Affiliates may engage in or possess an interest in
other profit-seeking or business ventures of any nature or description,
independently or with others, whether or not such ventures are competitive with
the Trust, and the doctrine of corporate opportunity, or any analogous
doctrine, shall not apply to the Sponsor. If the Sponsor acquires knowledge of
a potential transaction, agreement, arrangement or other matter that may be an
opportunity for the Trust, it shall have no duty to communicate or offer such
opportunity to the Trust, and the Sponsor shall not be liable to the Trust or
to the Shareholders, the Beneficial Owners or the Authorized Participants for
breach of any fiduciary or other duty by reason of the fact that the Sponsor
pursues or acquires for, or directs such opportunity to, another Person or does
not communicate such opportunity or information to the Trust. Neither the Trust
nor any Shareholder, Beneficial Owner or Authorized Participant shall have any
rights or obligations by virtue of this Trust Agreement or the trust relationship
created hereby in or to such independent ventures or the income or profits or
losses derived therefrom, and the pursuit of such ventures, even if competitive
with the activities of the Trust, shall not be deemed to be wrongful or
improper. Except to the extent expressly provided herein, the Sponsor may
engage or be interested in any financial or other transaction with the Trust,
the Shareholders, the Beneficial Owners, the Authorized Participants or any
Affiliate of the Trust or the Beneficial Owners. 

29

          Section
4.6. Obligations of
the Sponsor. 

          (a)
The Sponsor does not assume any obligation nor shall it be subject to any
liability under this Trust Agreement to any Shareholder, Beneficial Owner or
Authorized Participant (including liability with respect to the worth of the
Trust Estate), except that it agrees to perform its obligations specifically
set forth in this Trust Agreement without gross negligence or bad faith. 

          (b)
The Sponsor shall not be under any obligation to prosecute any action, suit or
other proceeding in respect of any portion of the Trust Estate or in respect of
the Shares on behalf of a Shareholder, Beneficial Owner, Authorized Participant
or other Person. 

          (c)
The Sponsor shall not be liable for any action or non-action by it in reliance
upon the advice of or information from legal counsel, accountants, any
Authorized Participant, any Shareholder or any other Person believed by it in
good faith to be competent to give such advice or information. 

          (d)
The Sponsor shall not be liable for any acts or omissions made by a successor
Sponsor, whether in connection with a previous act or omission of the Sponsor
or in connection with any matter arising wholly after the resignation of the
Sponsor; provided that in connection with the issue out of which such potential
liability arises the Sponsor performed its obligations without negligence or
bad faith while it acted as Sponsor. 

          (e)
The Sponsor shall have no obligation to comply with any direction or
instruction from any Shareholder, Beneficial Owner or Authorized Participant
regarding Shares except to the extent specifically provided in this Trust
Agreement. 

          Section
4.7. Delegation of
Obligations of the Sponsor. The Sponsor may at any time delegate all
or a portion of its duties and obligations under this Trust Agreement to
another entity, including the Administrator, without the consent of the
Trustee, any Shareholder and any Beneficial Owner. The Sponsor may terminate the
delegation to such other entity at any time and is not required to appoint a
replacement therefor. 

          Section
4.8. Compensation
to the Sponsor. The Sponsor shall be entitled to compensation for
its services as Sponsor of the Trust and allowances for certain Fund
administrative expenses as set forth in the Sponsor Agreement. 

          Section
4.9. Other Business
of Shareholders. Except as otherwise specifically provided herein,
any of the Shareholders and any shareholder, officer, director, employee or
other person holding a legal or beneficial interest in an entity which is a
Shareholder, may engage in or possess an interest in other business ventures of
every nature and description, independently or with others, and the pursuit of
such ventures, even if competitive with the business of the Trust, shall not be
deemed wrongful or improper. 

          Section
4.10. Indemnification
of Sponsor. 

          (a)
The Trust (or, in furtherance on Section 3.7 hereof, any Fund separately to the
extent the matter in question relates to a single Fund or is otherwise
disproportionate) shall indemnify 

30

and hold
harmless to the fullest extent permitted by law the Sponsor and its Affiliates,
successors, assigns, legal representatives, officers, directors, employees,
agents and servants (each a “Sponsor Indemnified Party”) against all claims,
losses, liabilities and expenses, including but not limited to amounts paid in
satisfaction of judgments or settlements, in compromise or as fines and
penalties, and counsel fees reasonably incurred by any Sponsor Indemnified
Party, in connection with the defense or disposition of any action, suit or
other proceeding, whether civil or criminal, before any court or administrative
or legislative body, in which such Sponsor Indemnified Party may be or may have
been involved as a party or otherwise or with which such Sponsor Indemnified
Party may be or may have been threatened, while in office or thereafter, by
reason of any alleged act or omission as a Sponsor Indemnified Party or by
reason of his or her being or having been such a Sponsor Indemnified Party
except with respect to any matter as to which such Sponsor Indemnified Party
shall have been finally adjudicated in any such action, suit or other
proceeding not to have acted in good faith in the reasonable belief that such
Sponsor Indemnified Party’s action was in the best interests of the Trust and
except that no Sponsor Indemnified Party shall be indemnified against any
liability to the Trust or its Shareholders by reason of willful misconduct or
gross negligence of such Sponsor Indemnified Party, and provided further that
any such indemnification will only be recoverable from the applicable Trust
Estate or Trust Estates. All rights to indemnification permitted herein and payment
of associated expenses shall not be affected by the dissolution or other
cessation to exist of the Sponsor Indemnified Party, or the withdrawal,
adjudication of bankruptcy or insolvency of the Sponsor Indemnified Party, or
the filing of a voluntary or involuntary petition in bankruptcy under Title 11
of the Code by or against the Sponsor Indemnified Party. 

          (b)
Notwithstanding the provisions of Section 4.10(a) above, the Sponsor
Indemnified Party and any Person acting as broker-dealer for the Trust or any
Fund shall not be indemnified for any losses, liabilities or expenses arising
from or out of an alleged violation of U.S. federal or state securities laws
unless (i) there has been a successful adjudication on the merits of each count
involving alleged securities law violations as to the particular indemnitee and
the court approves the indemnification of such expenses (including, without
limitation, litigation costs), (ii) such claims have been dismissed with
prejudice on the merits by a court of competent jurisdiction as to the
particular indemnitee and the court approves the indemnification of such
expenses (including, without limitation, litigation costs) or (iii) a court of
competent jurisdiction approves a settlement of the claims against a particular
indemnitee and finds that indemnification of the settlement and related costs
should be made. 

          (c) The Trust
and the Funds shall not incur the cost of that portion of any insurance which
insures any party against any liability, the indemnification of which is herein
prohibited. 

          (d) The term
“Sponsor Indemnified Party” as used only in this Section 4.10 shall include, in
addition to the Sponsor, any other Sponsor Indemnified Party performing
services on behalf of the Trust and acting within the scope of the Sponsor’s
authority as set forth in this Trust Agreement. 

          (e) In the
event the Trust is made a party to any claim, dispute, demand or litigation or
otherwise incurs any loss, liability, damage, cost or expense as a result of or
in connection with any Limited Owner’s (or assignee’s) obligations or
liabilities unrelated to Trust business, such 

31

Limited Owner
(or assignees cumulatively) shall indemnify, defend, hold harmless, and
reimburse the Trust for all such loss, liability, damage, cost and expense
incurred, including attorneys’ and accountants’ fees. 

          (f)
The payment of any amount pursuant to this Section 4.10 shall be subject to
Section 3.7 hereof with respect to the allocation of liabilities and other
amount, as appropriate, among the Funds. 

          (g)
Expenses, including counsel fees, so incurred by any such Sponsor Indemnified
Party (but excluding amounts paid in satisfaction of judgments, in compromise
or as fines or penalties) shall be paid from time to time by the Trust in
advance of the final disposition of any such action, suit or proceeding upon
receipt of an undertaking by or on behalf of such Sponsor Indemnified Party to
repay amounts so paid to the Trust if it is ultimately determined that
indemnification of such expenses is not authorized under this Section 4.10. 

          Section
4.11. Other
Contractual Rights. Nothing contained in Section 4.10 hereof shall
affect any right to indemnification to which persons other than Sponsor and
officers of this Trust may be separately entitled by contract or otherwise. 

ARTICLE V 

TRANSFERS OF SHARES

          Section
5.1. General
Prohibition. A Shareholder may not sell, assign, transfer or
otherwise dispose of, or pledge, hypothecate or in any manner encumber any or
all of his Shares or any part of his right, title and interest in the capital
or profits in any Fund except as permitted in this Article V and any act in
violation of this Article V shall not be binding upon or recognized by the
Trust (regardless of whether the Sponsor shall have knowledge thereof), unless
approved in writing by the Sponsor. 

          Section
5.2. Transfer of
Shares. Beneficial Owners that are not DTC Participants may transfer
Shares by instructing the DTC Participant or DTC Participant holding the Shares
for such Beneficial Owner in accordance with standard securities industry
practice. Beneficial Owners that are DTC Participants may transfer Shares by
instructing the Depository in accordance with the rules of the Depository and
standard securities industry practice. 

ARTICLE VI 

ALLOCATIONS

          Section
6.1. Allocations
for Capital Account Purposes. For purposes of maintaining the
Capital Accounts and in determining the rights of the Shareholders among
themselves, the Trust’s Net Income and Net Loss shall be allocated among the
Shareholders in each fiscal year or other applicable period (or portion
thereof) as provided herein below. 

          (a)
Net Income and Net Loss. After giving effect to the allocations set
forth in this Section 6.1, Net Income or Net Loss for each fiscal year or other
applicable period shall be allocated to the Shareholders in accordance with
their respective Percentage Interests. 

32

          (b)
Allocation upon Termination. With respect to all Section 6.1(a) allocations
following a Liquidation Date, such allocations shall be made after Capital
Account balances have been adjusted by all other allocations provided under
this Section 6.1 and after giving effect to all distributions during such
fiscal year or other applicable period; provided, however, that solely for
purposes of this Section 6.1(b), Capital Accounts shall not be adjusted for
distributions made pursuant to Section 9.1 hereof. 

          (c)
Mandatory Allocations. Notwithstanding any other provision of this
Section 6.1, the following special allocations shall be made for such taxable
period: 

	
  

 	
  

 
	
  

 	
           (i)
 Fund Minimum Gain Chargeback. Notwithstanding any other provision of this
 Section 6.1, if there is a net decrease in Fund Minimum Gain during any Trust
 fiscal year or other applicable period, then, subject to the exceptions set
 forth in Treasury Regulation sections 1.704-2(f)(2), (3), (4) and (5), each
 Shareholder shall be allocated items of Trust income and gain for such period
 (and, if necessary, subsequent periods) in an amount equal to such
 Shareholder’s share of Fund Minimum Gain, as determined in accordance with
 Treasury Regulation section 1.704-2(g). This Section 6.1(c)(i) is intended to
 comply with the Fund Minimum Gain chargeback requirement in Treasury
 Regulation section 1.704-2(f) and shall be interpreted consistently
 therewith. 

 
	
  

 	
  

 
	
  

 	
           (ii)
 Chargeback of Shareholder Minimum Gain. Notwithstanding the other provisions
 of this Section 6.1 (other than Section 6.1(c)(i)), if there is a net
 decrease in Shareholder Minimum Gain attributable to a Shareholder
 Nonrecourse Debt during any Trust fiscal year or other applicable period,
 then, subject to the exception set forth in Treasury Regulation section
 1.704-2(i)(4), each Shareholder with a share of Shareholder Minimum Gain
 attributable to such Shareholder Nonrecourse Debt, determined in accordance
 with Treasury Regulation section 1.704-2(i)(5), shall be allocated items of
 Trust income and gain for such period (and, if necessary, subsequent periods)
 in the manner and amounts provided in Treasury Regulation section
 1.704-2(i)(4). This Section 6.1(c)(ii) is intended to comply with the
 chargeback of items of income and gain requirement in Treasury Regulation
 section 1.704-2(i)(4) and shall be interpreted consistently therewith. 

 
	
  

 	
  

 
	
  

 	
           (iii)
 Qualified Income Offset. Notwithstanding any other provision of this Section
 6.1 (other than Section 6.1(c)(i) and (ii)), in the event any Shareholder
 unexpectedly receives any adjustments, allocations or distributions described
 in Treasury Regulation sections 1.704-1(b)(2)(ii)(d)(4), (5), or (6) that
 cause an increase in an Adjusted Capital Account deficit of such Shareholder,
 items of Trust income and gain shall be specially allocated to such Shareholder
 in an amount and manner sufficient to eliminate, to the extent required by
 the Treasury Regulations promulgated under Code section 704(b), the deficit
 balance in its Adjusted Capital Account. This Section 6.1(c)(iii) is intended
 to qualify and be construed as a “qualified income offset” within the meaning
 of Treasury Regulation section 1.704-1(b)(2)(ii)(d) and shall be interpreted
 consistently therewith. 

 
	
  

 	
  

 
	
  

 	
           (iv)
 No Excess Deficit. To the extent that any Shareholder has or would have, as a
 result of an allocation of Net Loss (or item thereof), an Adjusted Capital
 Account

 

33

	
  

 	
  

 
	
  

 	
 deficit, such amount of Net Loss (or item thereof) shall be allocated
 to the other Shareholders
 in accordance with this Section 6.1, but in a manner which will not produce
 an Adjusted Capital Account deficit as to any such Shareholder. To the extent
 such allocation would result in all Shareholders having Adjusted Capital
 Account deficits, such Net Loss (or item thereof) shall be allocated in
 accordance with Section 6.1(a). Any allocations of Net Loss (or item thereof)
 pursuant to this Section 6.1(c)(iv) shall be reversed with a corresponding
 amount of Net Profits in subsequent years. 

 
	
  

 	
  

 
	
  

 	
           (v)
 Nonrecourse Deductions. Nonrecourse Deductions for any taxable period shall
 be allocated to the Shareholders in accordance with their respective
 Percentage Interests. If the Sponsor determines that the Trust’s Nonrecourse
 Deductions should be allocated in a different ratio to satisfy the safe
 harbor requirements of the Treasury Regulations promulgated under Code
 section 704(b), the Sponsor is authorized, upon notice to the other
 Shareholders, to revise the prescribed ratio to the numerically closest ratio
 that does satisfy such requirements. 

 
	
  

 	
  

 
	
  

 	
           (vi)
 Shareholder Nonrecourse Deductions. Shareholder Nonrecourse Deductions for
 any taxable period shall be allocated 100% to the Shareholder that bears the
 economic risk of loss with respect to the Shareholder Nonrecourse Debt to
 which such Shareholder Nonrecourse Deductions are attributable in accordance
 with Treasury Regulation section 1.704-2(i). 

 
	
  

 	
  

 
	
  

 	
           (vii)
 Nonrecourse Liabilities. Nonrecourse Liabilities of the Trust described in
 Treasury Regulation section 1.752-3(a)(3) shall be allocated among the
 Shareholders in a manner chosen by the Sponsor and consistent with such
 Treasury Regulation. 

 
	
  

 	
  

 
	
  

 	
           (viii)
 Code Section 754 Adjustments. To the extent an adjustment to the adjusted tax
 basis of any Trust asset pursuant to Code section 734(b) or Code section
 743(b) is required, pursuant to Treasury Regulation section
 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital
 Accounts, the amount of such adjustment to the Capital Accounts shall be
 treated as an item of gain (if the adjustment increases the basis of the
 asset) or loss (if the adjustment decreases such basis), and such item of
 gain or loss shall be specially allocated to the Shareholders in a manner
 consistent with the manner in which their Capital Accounts are required to be
 adjusted pursuant to such section of the Treasury Regulations. 

 
	
  

 	
  

 
	
  

 	
           (ix)
 Curative Allocation. 

 

	
  

 	
  

 
	
  

 	
           (A)
 The Required Allocations are intended to comply with certain requirements of
 the Treasury Regulations. It is the intent of the Shareholders that, to the
 extent possible, all Required Allocations shall be offset either with other
 Required Allocations or with special allocations of other items of Trust
 income, gain, loss or deduction pursuant to this Section 6.1(c)(ix). Therefore,
 notwithstanding any other provision of this Section 6.1 (other than the
 Required Allocations), the Sponsor shall make such offsetting special
 allocations of Trust income, gain, loss or deduction in whatever manner it
 determines appropriate so that, after such offsetting allocations are made,
 each Shareholder’s Capital

 

34

	
  

 	
  

 
	
  

 	
 Account balance is, to the extent possible, equal
 to the Capital Account
 balance such Shareholder would have had if the Required Allocations were not
 part of this Agreement and all Trust items were allocated pursuant to the
 economic agreement among the Shareholders. 

 
	
  

 	
  

 
	
  

 	
           (B)
 The Sponsor shall, with respect to each fiscal year or other applicable
 period, (1) apply the provisions of Section 6.1(c)(ix)(A) in whatever order is
 most likely to minimize the economic distortions that might otherwise result
 from the Required Allocations, and (2) divide all allocations pursuant to
 Section 6.1(c)(ix)(A) among the Shareholders in a manner that is likely to
 minimize such economic distortions. 

 

          Section
6.2. Allocations
for Tax Purposes. 

          (a)
Except as otherwise provided herein, for U.S. federal income tax purposes, each
item of income, gain, loss and deduction shall be allocated among the
Shareholders in the same manner as its correlative item of “book” income, gain,
loss or deduction is allocated pursuant to Section 6.1 hereof. 

          (b)
In accordance with Code sections 704(b) and 704(c) and the Treasury Regulations
thereunder, income, gain, loss and deduction with respect to any property
contributed to the Trust shall solely for U.S. federal income tax purposes, be
allocated among the Shareholders so as to take into account any variation
between the adjusted basis of such property to the Trust for U.S. federal income
tax purposes and the initial Gross Asset Value. If the Gross Asset Value of any
Trust asset is adjusted as described in the definition of Gross Asset Value,
subsequent allocations of income, gain, loss and deduction with respect to such
Trust asset shall take into account any variation between the adjusted basis of
such Trust Asset for U.S. federal income tax purposes and its Gross Asset Value
in the same manner as under Code section 704(c) and the Treasury Regulations
thereunder. In furtherance of the foregoing, the Trust shall employ any method
under Code section 704(c) selected by the Sponsor. The Sponsor, in an attempt
to eliminate book-tax disparities, expects items of income, gain, or loss will
be allocated for U.S. federal income tax purposes among the Members under the
principles of the remedial method of Treasury Regulations section 1.704-3(d).
Allocations pursuant to this Section 6.2(b) are solely for purposes of U.S.
federal, state, and local taxes and shall not affect, or in any way be taken
into account in computing, any Shareholder’s Capital Account or share of Net
Income, Net Loss, other items, or distributions pursuant to any provision of
this Agreement. 

          (c)
For the proper administration of the Trust and for the preservation of
uniformity of the Shares (or any Class or Classes thereof), the Sponsor shall
(i) adopt such conventions as it deems appropriate in determining the amount of
depreciation, amortization and cost recovery deductions; (ii) make special
allocations for U.S. federal income tax purposes of income (including gross
income) or deductions; (iii) amend the provisions of this Agreement as
appropriate (x) to reflect the proposal or promulgation of Treasury Regulations
under Code section 704(b) or Code section 704(c) or (y) otherwise to preserve
or achieve uniformity of the Shares (or any Class or Classes thereof); and (iv)
adopt and employ such methods for (A) the maintenance of Capital Accounts for
book and tax purposes, (B) the determination and allocation of adjustments
under Code sections 704(c), 734 and 743, (C) the determination and allocation
of 

35

taxable
income, tax loss and items thereof under this Agreement and pursuant to the
Code, (D) the determination of the identities and tax classification of
Shareholders, (E) the provision of tax information and reports to the
Shareholders, (F) the adoption of reasonable conventions and methods for the
valuation of assets and the determination of tax basis, (G) the allocation of
asset values and tax basis, (H) the adoption and maintenance of accounting
methods, (I) the recognition of the transfer of Shares, (J) tax compliance and
other tax-related requirements, including the use of computer software, and to
use filing and reporting procedures similar to those employed by
publicly-traded partnerships and limited liability companies, as it determines
in its sole discretion are necessary and appropriate to execute the provisions
of this Agreement and to comply with U.S. federal, state and local tax law, and
to achieve uniformity of Shares within a Class. The Sponsor may adopt such
conventions, make such allocations and make such amendments to this Agreement
as provided in this Section 6.2(c) only if such conventions, allocations or
amendments would not have a material adverse effect on the Shareholders, the
holders of any Class or Classes of Shares issued and Outstanding or the Trust,
and if such allocations are consistent with the principles of Code section 704.

          (d)
All items of income, gain, loss, deduction and credit recognized by the Trust
for U.S. federal income tax purposes and allocated to the Shareholders in
accordance with the provisions hereof shall be determined without regard to any
election under Code section 754 that may be made by the Trust; provided,
however, that such allocations, once made, shall be adjusted (in the manner
determined by the Sponsor) to take into account those adjustments permitted or
required by Code sections 734 and 743. 

          (e)
In the event the Trust becomes listed on the Exchange or other major exchange,
unless the Sponsor determines otherwise, each item of Trust income, gain, loss
and deduction shall, for U.S. federal income tax purposes, be determined on an
annual basis and prorated on a monthly basis and shall be allocated to the
Shareholders as of the opening of such Exchange on the first business day of
each month; provided, however, that such items for the period beginning on the
closing date and ending on the last day of the month in which the option
closing date or the expiration of the over-allotment option occurs shall be
allocated to the Shareholders as of the opening of such Exchange on the first
Business Day of the next succeeding month; and provided, further, that gain or
loss on a sale or other disposition of any assets of the Trust or any other
extraordinary item of income or loss realized and recognized other than in the
ordinary course of business, as determined by the Sponsor, shall be allocated
to the Shareholders as of the opening of the Exchange on the first business day
of the month in which such gain or loss is recognized for U.S. federal income
tax purposes. The Sponsor may revise, alter or otherwise modify such methods of
allocation to the extent permitted or required by Code section 706 and the regulations
or rulings promulgated thereunder. 

          (f)
Allocations that would otherwise be made to a Shareholder under the provisions
of this Article VI shall instead be made to the Beneficial Owner of Shares held
by a nominee in any case in which the nominee has furnished the identity of
such owner to the Trust in accordance with Code section 6031(c) or any other
method determined by the Sponsor. 

36

ARTICLE VII 

SHAREHOLDERS

          Section
7.1. No Management
or Control; Limited Liability; Exercise of Rights through DTC. The
Shareholders shall not participate in the management or control of the Trust’s
or the applicable Fund’s business nor shall they transact any business for the
Trust or any Fund or have the power to sign for or bind the Trust or any Fund,
said power being vested solely and exclusively in the Sponsor. Except as
provided in Section 7.3 hereof, no Shareholder shall be bound by, or be
personally liable for, the expenses, liabilities or obligations of the Trust or
any Fund in excess of his Capital Contribution plus his share of any Trust
Estate of a Fund in which such Shareholder owns a Share and profits remaining,
if any. Except as provided in Section 7.3 hereof, each Share owned by a
Shareholder shall be fully paid and no assessment shall be made against any
Shareholder. No salary shall be paid to any Shareholder in his capacity as a
Shareholder, nor shall any Shareholder have a drawing account or earn interest
on his contribution. By the purchase and acceptance or other lawful delivery and
acceptance of Shares, each Beneficial Owner shall be deemed to be a Shareholder
and beneficiary of the applicable Fund and vested with beneficial undivided
interest in such Fund to the extent of the Shares owned beneficially by such
Beneficial Owner, subject to the terms and conditions of this Trust Agreement.
The rights of Beneficial Owners under this Trust Agreement must be exercised by
DTC Participants acting on their behalf in accordance with the rules and
procedures of the Depository, as provided in Section 3.5 hereof. 

          Section
7.2. Rights and
Duties. The Shareholders shall have the following rights, powers,
privileges, duties and liabilities: 

          (a)
The Shareholders shall have the right to obtain from the Sponsor information of
all things affecting the Trust or the applicable Fund, provided that such is
for a purpose reasonably related to the Shareholder’s interest as a beneficial
owner of the Trust or the applicable Fund, including, without limitation, the
list of Authorized Participants contemplated by Section 3.4(a)(i) hereof. 

          (b)
The Shareholders shall receive the share of the distributions provided for in
this Trust Agreement in the manner and at the times provided for in this Trust
Agreement. 

          (c)
Except for the Shareholders’ redemption rights set forth in Article IX hereof,
Shareholders shall have the right to demand the return of their capital account
only upon the dissolution and winding up of the applicable Fund or the Trust
and only to the extent of funds available therefor. In no event shall a
Shareholder be entitled to demand or receive property other than cash. Except
as otherwise provided by the instrument establishing a Shareholder’s Series or
Class, no Shareholder shall have priority over any other Shareholder either as
to the return of capital or as to profits, losses or distributions. No
Shareholder shall have the right to bring an action for partition against the
Trust or a Fund. 

          (d)
Except as required under applicable U.S. federal law or under the rules or
regulations of an Exchange, the Shareholders shall have no voting rights
hereunder (including with respect to mergers, consolidations or conversions of
the Trust or transfers to or domestication in any jurisdiction by the Trust or
any other matters that under the DSTA default voting rights are 

37

provided to
holders of beneficial interests). The Shareholders shall have the right to vote
on other matters only as the Sponsor may consider desirable and so authorize in
its sole discretion. To the extent that U.S. federal or Delaware law is
amended, modified or interpreted by rule, regulation, order, or no-action
letter to (on a mandatory basis) expand, eliminate or limit Shareholders’ right
to vote on any specific matter, the Shareholders’ right to vote shall be deemed
to be amended, modified or interpreted in accordance therewith without further
approval by the Sponsor or the Shareholders. 

          (e)
No action may be brought by a Shareholder on behalf of the Trust unless
Shareholders owning no less than a majority of the then outstanding Shares of
the same Series or Class thereof, join in the bringing of such action. A
Shareholder of Shares in a particular Series or Class of the Trust shall not be
entitled to participate in a derivative or class action lawsuit on behalf of
any other Series or Class, as appropriate, or on behalf of the Shareholders in
any such other Series or Class of the Trust. 

Except as set
forth above, the Shareholders shall have no voting or other rights with respect
to the Trust or any Fund. 

          Section
7.3. Limitation on
Shareholder Liability. 

          (a)
Except as provided in Sections 4.10(e), and 6.2 hereof, and as otherwise
provided under Delaware law, the Shareholders shall be entitled to the same limitation
of personal liability extended to stockholders of private corporations for
profit organized under the general corporation law of Delaware and no
Shareholder shall be liable for claims against, or debts of the Trust or the
applicable Fund in excess of his Capital Contribution and his share of the
applicable Trust Estate of a Fund and undistributed profits. In addition, and
subject to the exceptions set forth in the immediately preceding sentence, the
Trust or the applicable Fund shall not make a claim against a Shareholder with
respect to amounts distributed to such Shareholder or amounts received by such
Shareholder upon redemption unless, under Delaware law, such Shareholder is
liable to repay such amount. 

          (b)
The Trust or the applicable Fund shall indemnify to the full extent permitted
by law and the other provisions of this Trust Agreement, and to the extent of
the applicable Trust Estate of a Fund, each Shareholder against any claims of
liability asserted against such Shareholder solely because he is a beneficial
owner of one or more Shares as a Shareholder (other than for taxes for which
such Shareholder is liable under Section 6.2 hereof). 

          (c)
Every written note, bond, contract, instrument, certificate or undertaking made
or issued by the Sponsor shall give notice to the effect that the same was
executed or made by or on behalf of the Trust or the applicable Fund and that
the obligations of such instrument are not binding upon the Shareholders
individually but are binding only upon the assets and property of the
applicable Fund, and no resort shall be had to the Shareholders’ personal
property for satisfaction of any obligation or claim thereunder, and
appropriate references may be made to this Trust Agreement and may contain any
further recital which the Sponsor deems appropriate, but the omission thereof
shall not operate to bind the Shareholders individually or otherwise invalidate
any such note, bond, contract, instrument, certificate or undertaking. Nothing 

38

contained in
this Section 7.3 shall diminish the limitation on the liability of the Trust to
the extent set forth in Sections 3.6 and 3.7 hereof. 

          Section
7.4. Voting Power
and Meetings. 

          (a)
Meetings of the Shareholders may be called by the Sponsor for such purposes as
may be prescribed by law or by this Trust Agreement. Except as required by law
or as provided for herein, there shall be no annual or regular Shareholders’
meetings. 

          (b)
On each matter, if any, submitted to a vote of Shareholders, unless the Sponsor
determines otherwise, all Shares of all Series and Classes shall vote together
as a single class; provided, however, that: (i) as to any matter with respect
to which a separate vote of any Series or Class is required by applicable law
or is required by attributes applicable to any Series or Class, such
requirements as to a separate vote by that Series or Class shall apply; (ii)
unless the Sponsor determine that this clause (ii) shall not apply in a
particular case, to the extent that a matter referred to in clause (i) above
affects more than one Series or Class and the interests of each such Series or
Class in the matter are identical, then the Shares of all such affected Series
or Classes shall vote together as a single class; and (iii) as to any matter
which does not affect the interests of a particular Series or Class, only the
holders of Shares of the one or more affected Series or Classes shall be
entitled to vote. As determined by the Sponsor, in its sole discretion, without
the vote or consent of Shareholders, on any matter submitted to a vote of
Shareholders either (i) each whole Share shall be entitled to one vote as to
any matter on which it is entitled to vote and each fractional Share shall be
entitled to a proportionate fractional vote or (ii) each dollar of Value
(number of Shares owned times Value per Share of such Series or Class, as
applicable) shall be entitled to one vote on any matter on which such Shares
are entitled to vote and each fractional dollar amount shall be entitled to a
proportionate fractional vote. The Sponsor hereby establishes that each whole
Share shall be entitled to one vote as to any matter on which it is entitled to
vote and each fractional Share shall be entitled to a proportionate fractional
vote. Shares may be voted in person or by proxy or in any manner determined by
the Sponsor. 

          (c)
A meeting of Shareholders shall be held at any place designated by the Sponsor.

          Section
7.5. Notice of
Shareholders’ Meeting. 

          (a)
All notices of meetings of Shareholders shall be sent or otherwise given to
each Shareholder of record not less than seven (7) nor more than one hundred
and twenty (120) days before the date of the meeting in the manner determined
by the Sponsor. The notice shall specify: (i) the place, date and hour of the
meeting; and (ii) the general nature of the business to be transacted. 

          (b)
Any Shareholders’ meeting, whether or not a quorum is present, may be adjourned
from time to time by the Sponsor or by the vote of a majority of the Shares of
the Class, Series or Trust, as the case may be, represented at that meeting,
either in person or by proxy. When any meeting of Shareholders is adjourned to
another time or place, notice need not be given of the adjourned meeting at
which the adjournment is taken, unless a new record date of the adjourned
meeting is fixed or unless the adjournment is for more than sixty (60) days
from the date set for 

39

the original
meeting, in which case the Sponsor shall set a new record date. Notice of any
such adjourned meeting shall be given to each Shareholder of record entitled to
vote at the adjourned meeting. At any adjourned meeting, the Trust may transact
any business which might have been transacted at the original meeting. 

          Section
7.6. Voting
Procedure. The Trust shall be authorized to solicit, and a Shareholder
shall be entitled to submit a proxy ballot containing the voting instructions
of such Shareholder, in person, or by U.S. mail, overnight mail, express mail,
telephone, electronic mail, telefacsimile, telegraph, internet or other
electronic media, provided however, that the Sponsor may limit or delineate the
types of media and methods by which a Shareholder may submit voting instructions.
On any matter any Shareholder may vote part of the Shares in favor of the
proposal and refrain from voting the remaining Shares or vote them against the
proposal, but if the Shareholder fails to specify the number of Shares which
the Shareholder is voting affirmatively, it will be conclusively presumed that
the Shareholder’s approving vote is with respect to the total Shares that the
Shareholder is entitled to vote on such proposal. 

          Section
7.7. Quorum and
Required Vote. 

          (a)
Except when a larger quorum is required by applicable law or by this Trust Agreement,
the presence (in person or by ballot) of thirty-three and one-third percent (33
1/3%) of the Shares entitled to vote shall constitute a quorum at a
Shareholders’ meeting. When any one or more Class or Series is to vote as a
single class separate from any other Shares, thirty-three and one-third percent
(33 1/3%) of the Shares of each such Class or Series entitled to vote shall
constitute a quorum at a Shareholder’s meeting of that Class or Series. Any
meeting of Shareholders may be adjourned consistent with the provisions of
Section 7.5 hereof, whether or not a quorum is present. When a quorum is
present at any meeting, a majority of the Shares represented at the meeting
shall decide any questions except when a different vote is required by any
provision of this Trust Agreement or by applicable law. 

          (b)
Any action taken by Shareholders may be taken without a meeting if Shareholders
holding a majority of the Shares entitled to vote on the matter (or such larger
proportion thereof as shall be required by any express provision of this Trust
Agreement or U.S. federal law) or holding a majority (or such larger proportion
as aforesaid) of the Shares of any Series or Class entitled to vote separately
on the matter consent to the action in writing or by other electronic means
(such as via telephone or the internet) and such written consent or a record of
such electronic consent is filed with the records of the meetings of
Shareholders. Such consent shall be treated for all purposes as a vote taken at
a meeting of Shareholders. 

          Section
7.8. Record Dates.
For the purpose of determining the Shareholders of any Series or Class who are
entitled to vote or act at any meeting or any adjournment thereof, the Sponsor
may from time to time fix a date, which shall be not more than one-hundred and
twenty (120) days before the date of any meeting of Shareholders, as the record
date for determining the Shareholders of such Series or Class having the right
to notice of and to vote at such meeting and any adjournment thereof, and in
such case only Shareholders of record on such record date shall have such
right, notwithstanding any transfer of Shares on the books of the Trust after
the record date. For the purpose of determining the Shareholders of any Series
or Class who are entitled to receive payment of any dividend or of any other
distribution, the Sponsor may from time to time 

40

fix a date,
which shall be before the date for the payment of such dividend or such other
payment, as the record date for determining the Shareholders of such Series or
Class having the right to receive such dividend or distribution. Without fixing
a record date the Sponsor may for voting and/or distribution purposes close the
register or transfer books for one or more Series for all or any part of the
period between a record date and a meeting of Shareholders or the payment of a
distribution. Nothing in this Section 7.8 shall be construed as precluding the
Sponsor from setting different record dates for different Series or Classes. 

          Section
7.9. Waiver of
Notice by Consent of Absent Shareholders. Any Shareholder may waive
notice, which waiver may be submitted by U.S. mail, overnight mail, express
mail, telephone, electronic mail, telefacsimile, telegraph, internet or other
electronic media. The waiver of notice need not specify either the business to
be transacted or the purpose of any meeting of Shareholders. Attendance by a
person at a meeting shall also constitute a waiver of notice of that meeting,
except when the person objects at the beginning of the meeting to the
transaction of any business because the meeting is not lawfully called or
convened and except that attendance at a meeting is not a waiver of any right
to object to the consideration of matters not included in the notice of the
meeting if that objection is expressly made at the beginning of the meeting. 

          Section
7.10. Proxies.
Every person entitled to vote on any matter shall have the right to do so
either in person or by one or more agents authorized by a written or electronic
proxy authorized by the person and filed with the Sponsor. A proxy shall be
deemed authorized if the Shareholder’s name is placed on the proxy (whether by
manual signature, typewriting, telephonic or internet transmission or
otherwise) by the Shareholder or the Shareholder’s attorney-in-fact. A validly
authorized proxy which does not state that it is irrevocable shall continue in
full force and effect unless (i) revoked by the person executing it before the
vote pursuant to that proxy by a writing delivered to the Trust stating that
the proxy is revoked or by a subsequent proxy executed by, or attendance at the
meeting and voting in person by, the person executing that proxy; or (ii)
written notice of the death or incapacity of the maker of that proxy is
received by the Trust before the vote pursuant to that proxy is counted;
provided however, that no proxy shall be valid after the expiration of eleven
months from the date of the proxy unless otherwise provided in the proxy. 

ARTICLE VIII 

RECORDS AND REPORTS

          Section
8.1. Maintenance of
Share Register. The Trust shall keep at its principal office or at
the office of its transfer agent or registrar, if either be appointed and as
determined by the Sponsor, a record of its Shareholders, containing the names
and addresses of all Shareholders and the number and Series of Shares held by
each Shareholder. 

          Section
8.2. Maintenance of
Other Records. The accounting books and records and minutes of
proceedings of the Shareholders and the Sponsor shall be kept at such place or
places designated by the Sponsor or, in the absence of such designation, at the
principal office of the Trust. The minutes shall be kept in written form and
the accounting books and records shall be kept either in written form or in any
other form capable of being converted into written form. 

41

ARTICLE IX 

REDEMPTIONS

          Section
9.1. Redemption of
Redemption Units. The following procedures, as supplemented by the
more detailed procedures specified in the attachment to the applicable
Authorized Participant Agreement, which may be amended from time to time in
accordance with the provisions of such Authorized Participant Agreement (and
any such amendment will not constitute an amendment of this Trust Agreement),
will govern the Trust and the Funds with respect to the redemption of
Redemption Units. 

          (a)
On any Business Day, an Authorized Participant with respect to which an
Authorized Participant Agreement is in full force and effect (as reflected on
the list maintained by the Sponsor pursuant to Section 3.4(a)(i)) may redeem
one or more Redemption Units standing to the credit of the Authorized Participant
on the records of the Depository by delivering a request for redemption to the
Sponsor (such request, a “Redemption Order”) in the manner specified in the
procedures specified in the attachment to the Authorized Participant Agreement,
as amended from time to time in accordance with the provisions of the
Authorized Participant Agreement (and any such amendment will not constitute an
amendment of this Trust Agreement). 

          (b)
To be effective, a Redemption Order must be submitted on a Business Day by the
Order Cut-Off Time in form satisfactory to the Sponsor (the Business Day on
which the Redemption Order is so submitted, the “Redemption Order Date”). The
Sponsor shall reject any Redemption Order the fulfillment of which its counsel
advises may be illegal under applicable laws and regulations, and the Sponsor
shall have no liability to any person for rejecting a Redemption Order in such
circumstances. 

          (c)
Subject to deduction of any tax or other governmental charges due thereon, the
redemption distribution (“Redemption Distribution”) shall consist of cash in an
amount equal to the product obtained by multiplying (i) the number of
Redemption Units set forth in the relevant Redemption Order by (ii) the Value
Per Creation Unit of a Fund as of the closing time of the Exchange or the last
to close of the Component Exchanges, as defined in the applicable Authorized
Participant Agreement, whichever is later, on the Redemption Order Date. 

          (d)
By noon, New York time, on the third Business Day immediately following the
Redemption Order Date (the “Redemption Settlement Time”), if the Sponsor’s
account at the Depository has by noon, New York time, on such day been credited
with the Redemption Units being tendered for redemption and the Administrator
has by such time received the Transaction Fee, the Sponsor shall cause the
delivery of the Redemption Distribution through the Depository to the account
of the Authorized Participant as recorded on the book entry system of the
Depository. If by such Redemption Settlement Time the Sponsor has not received
from a redeeming Authorized Participant all Redemption Units comprising the
Redemption Order, the Sponsor will (i) settle the Redemption Order to the
extent of whole Redemption Units received from the Authorized Participant and
(ii) keep the redeeming Authorized 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”). If the Redemption Unit(s) comprising the
Suspended Redemption Order are credited to the Sponsor’s account at the
Depository by noon, New York 

42

time, on such
following Business Day, the Redemption Distribution with respect to the
Suspended Redemption Order shall be paid in the manner provided in the second
preceding sentence. If by such Redemption Settlement Time the Sponsor has not
received from the redeeming Authorized Participant all Redemption Units
comprising the Suspended Redemption Order, the Sponsor will settle the
Suspended Redemption Order to the extent of whole Redemption Units then
received and any balance of the Suspended Redemption will be cancelled.
Notwithstanding the foregoing, when and under such conditions as the Sponsor
may from time to time determine, the Sponsor shall be authorized to cause the
delivery of the Redemption Distribution notwithstanding that a Redemption Unit
has not been credited to the Trust’s or the applicable Fund’s account at the Depository
if the Authorized Participant has collateralized its obligation to deliver the
Redemption Unit on such terms as the Sponsor may, in its sole discretion, from
time to time agree. 

          (e)
The Sponsor may, in its discretion, suspend the right of redemption, or
postpone the Redemption Settlement Date, (i) for any period during which the
Exchange or any other applicable exchange, including an applicable Component
Exchange, is closed other than 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 a
Fund’s assets is not reasonably practicable; (iii) for such other period as the
Sponsor determines to be necessary for the protection of Beneficial Owners; or
(iv) for any other period as specified in the applicable Authorized Participant
Agreement or Fund Prospectus. The Sponsor is not liable to any person or in any
way for any loss or damages that may result from any such suspension or
postponement. 

          (f)
Redemption Units effectively redeemed pursuant to the provisions of this
Section 9.1 shall be cancelled by the Trust or the applicable Fund in
accordance with the Depository’s procedures. 

          Section
9.2. Other
Redemption Procedures. The Sponsor from time to time may, but shall
have no obligation to, establish procedures with respect to redemption of
baskets of Shares in lot sizes smaller than the Redemption Unit and permitting
the Redemption Distribution to be in a form, and delivered in a manner, other
than that specified in Section 9.1. 

          Section
9.3. Mandatory
Redemption by the Trust. The Sponsor, for any reason or no reason at
all, may cause the Trust to redeem all or part of the Shares of any Series or
Class held by a Shareholder at the redemption price that would be applicable if
such Shares were then being redeemed by the Shareholder pursuant to Section 9.1
hereof upon such conditions and under such procedures as may from time to time
be determined by the Sponsor in its sole discretion. Upon redemption of Shares
pursuant to this Section 9.3, the Trust shall promptly cause payment of the
full redemption price to be made to such Shareholder for Shares so redeemed 

43

ARTICLE X 

CUSTODY OF ASSETS

          Section
10.1. Employment of
a Custodian. The Sponsor may enter into written contracts for the
placement and maintenance of all funds, securities and similar investments of a
Fund with a Custodian. Any such custodian shall be a bank or trust company
having an aggregate capital, surplus, and undivided profits of at least one
million dollars ($1,000,000). Upon termination of a custody agreement or
inability of the Trust’s Custodian to continue to serve, the Sponsor shall
promptly appoint a successor Custodian. 

          Section
10.2. Other
Arrangements. The Sponsor may make such other arrangements for the
custody of the Trust’s assets (including deposit arrangements) as may be
required by any applicable law, rule or regulation. 

ARTICLE XI 

MISCELLANEOUS

          Section
11.1. Termination
of Trust, Series or Class. 

          (a)
Unless terminated as provided herein, the Trust, and any Series or Class
thereof, shall continue without limitation of time. The Trust, or any Series or
Class thereof, may be dissolved at any time and for any reason, or no reason at
all, by the Sponsor. The Sponsor shall set a date on which the Trust, or any
Series or Class thereof, shall dissolve and mail notice of that dissolution to
the Shareholders. The Shareholders shall have no rights to terminate or revoke
the Trust, any Series or any Class. 

          (b)
On or after dissolution of the Trust (or any Series or Class, as the case may
be), after paying or making reasonable provision for all charges, taxes,
expenses, claims and liabilities of the Trust, or severally, with respect to
each Series or Class (or the applicable Series or Class, as the case may be),
whether due or accrued or anticipated as may be determined by the Sponsor and
otherwise complying with section 3808 of the DSTA, the Sponsor shall wind up
the business and affairs of the Trust (or Series or Class, as the case may be)
in accordance with section 3808 of the DSTA. Subject to the payment or the
reasonable provision of such payment by the Sponsor of the claims and
obligations of the Trust, Fund or Class, as the case may be, as required by
section 3808 of the DSTA, the Shareholders of the Trust or the dissolving
Series or Class, as the case may be, will, upon (i) surrender of their Shares,
(ii) payment of any Transaction Fee and (iii) payment of any applicable taxes
or other governmental charges, be entitled to delivery to them or upon their
order, of the amount of applicable Trust Estate represented by those Shares.
The Sponsor shall not accept any delivery of Baskets after the date of
dissolution. If any Shares remain outstanding after the date of dissolution of
the Trust or the dissolved Series or Class, as the case may be, the Sponsor
thereafter shall discontinue the registration of transfers of such Shares,
shall not make any distributions to Shareholders and shall not give any further
notices, except that the Sponsor shall continue to collect distributions
pertaining to applicable Trust Estate and hold the same uninvested and without
liability for interest, pay pursuant to section 3808 of the DSTA the Trust’s
expenses as set forth in this Trust Agreement and sell Trust, Fund or Class, as
the case may be, assets as necessary to meet those expenses and shall continue
to deliver applicable Trust Estate, together with any distributions received
with respect thereto and 

44

the net
proceeds of the sale of any other property, in exchange for Shares surrendered
to the Sponsor (after deducting or upon payment of, in each case, the
Transaction Fee for the surrender of Shares, any expenses for the account of
the Shareholder of such Shares in accordance with the terms and conditions of
this Trust Agreement and any applicable taxes or other governmental charges) or
otherwise under such other procedures the Sponsor deems, in its discretion to
be appropriate. At any time after the expiration of ninety (90) days following
the date of dissolution of the Trust or the dissolved Series or Class, as the
case may be, the Sponsor may sell, or cause the sale of, the applicable Trust
Estate then held under this Trust Agreement and may thereafter, after complying
with section 3808 of the DSTA, cause to be held with the Custodian uninvested
the net proceeds of any such sale and without liability for interest, for the
pro rata benefit of the Shareholders of the Shares that have not theretofore
been surrendered.  

          (c)
Upon the completion of the winding up of the Trust and all its Series in
accordance with the DSTA and this Trust Agreement, the Sponsor shall cause the
Trustee to file a certificate of cancellation with the Secretary of State of
the State of Delaware (at the expense of the Sponsor) in accordance with the
provisions of section 3810 of the Delaware Act and thereupon, the Trust and
this Trust Agreement (other than Section 2.4 hereof, shall terminate. The
provisions of Section 2.4 hereof shall survive the termination of the Trust.
After making such filing, the Trustee and the Sponsor shall be discharged from
all obligations under this Trust Agreement, except to account for such net
proceeds and other cash (after deducting, in each case, any fees, expenses,
taxes or other governmental charges payable by the Trust, the Transaction Fees
for the surrender of Shares and any expenses for the account of the Shareholder
of such Shares in accordance with the terms and conditions of this Trust
Agreement and any applicable taxes or other governmental charges). 

          Section
11.2. Merger and
Consolidation. 

          (a)
The Sponsor may cause (i) the Trust to be merged into or consolidated with,
converted to or to sell all or substantially all of its assets to, another
trust or entity; (ii) a Series of the Trust to be consolidated with, or to sell
all or substantially all of its assets to, another Series of the Trust or another
series of another Person; (iii) the Shares of a Class of a Series to be
converted into another Class of the same Series; (iv) the Shares of the Trust
or any Series to be converted into beneficial interests in another statutory
trust (or series thereof); or (v) the Shares of the Trust or any Series to be
exchanged for shares in another trust or company under or pursuant to any state
or U.S. federal statute to the extent permitted by law. 

          (b)
For the avoidance of doubt, the Sponsor, with written notice to the
Shareholders, may approve and effect any of the transactions contemplated under
Section 11.2(a)(i) – (v) above without any vote or other action of the
Shareholders. 

          (c)
In accordance with section 3815(f) of DSTA, an agreement of merger or
consolidation may effect any amendment to this Trust Agreement or effect the
adoption of a new trust agreement of the Trust if the Trust is the surviving or
resulting business trust following a merger or consolidation. 

          Section
11.3. Filing of
Copies. The original or a copy of this Trust Agreement and of each
restatement and/or amendment hereto shall be kept at the office of the Trust
where it may 

45

be inspected
by any Shareholder. Anyone dealing with the Trust may rely on a certificate by
the Sponsor as to whether or not any such restatements and/or amendments have
been made and as to any matters in connection with the Trust hereunder; and,
with the same effect as if it were the original, may rely on a copy certified
by the Sponsor to be a copy of this instrument or of any such restatements
and/or amendments. 

          Section
11.4. Applicable
Law. This Trust Agreement is created under and is to be governed by
and construed and administered according to the laws of the State of Delaware
and the DSTA. The Sponsor may construe any of the provisions of this Trust
Agreement insofar as the same may appear to be ambiguous or inconsistent with
any other provisions hereof, and any such construction hereof by the Sponsor in
good faith shall be conclusive as to the meaning to be given to such
provisions. In construing this Trust Agreement, the presumption shall be in
favor of a grant of power to the Sponsor. 

          Section
11.5. Provisions in
Conflict with Law or Regulations. 

          (a)
The provisions of this Trust Agreement are severable, and if the Sponsor
determines, with the advice of counsel, that any of such provisions are in
conflict with any other applicable laws and regulations, the conflicting
provision(s) shall be deemed never to have constituted a part of the Trust
Agreement; provided, however, that such determination shall not affect any of
the remaining provisions of the Trust Agreement or render invalid any action
taken or omitted prior to such determination. 

          (b)
If any provision of the Trust Agreement shall be held invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall attach only to
such provision in such jurisdiction and shall not in any manner affect such
provision in any other jurisdiction or any other provision of the Trust
Agreement in any jurisdiction. 

          Section
11.6. Contracts and
Instruments; How Executed. The Sponsor may authorize any officer or
officers, agent or agents, to enter into any contract or execute any instrument
in the name of and on behalf of the Trust and this authority may be general or
confined to specific instances; and unless so authorized or ratified by the
Sponsor or within the agency power of an officer, no officer, agent, or
employee shall have any power or authority to bind the Trust by any contract or
engagement or to pledge its credit or to render it liable for any purpose or
for any amount. 

          Section
11.7. Fiscal Year.
The fiscal year of the Trust and of each Series shall be fixed and refixed or
changed from time to time by resolution of the Sponsor. 

          Section
11.8. Counterparts.
The Trust Agreement may be simultaneously executed in several counterparts,
each of which shall be deemed to be an original, and such counterparts, together,
shall constitute one and the same instrument, which shall be sufficiently
evidenced by any such original counterpart. 

46

          Section
11.9. Internal
References; Headings. 

          (a)
In this Trust Agreement or in any such amendment, references to this Trust Agreement,
and all expressions such as “herein,” “hereof” and “hereunder,” shall be deemed
to refer to this Trust Agreement as a whole and as amended or affected by any
such amendment. 

          (b)
Headings are placed herein for convenience of reference only, and in case of
any conflict, the text of this instrument, rather than the headings, shall
control. 

          (c)
Whenever the singular number is used herein, the same shall include the plural;
and the neuter, masculine and feminine genders shall include each other, as
applicable. 

          Section
11.10. Limitations
on Liability. 

          (a)
The debts, liabilities, obligations, expenses, costs, charges, indemnities and
reserves incurred, contracted for, attributable to or otherwise existing with
respect to a particular Series shall be enforceable against the assets of such
Series only, and not against the assets of the Trust generally or of any other
Series and, unless otherwise provided by the Sponsor, none of the debts,
liabilities, obligations, expenses, costs, charges, indemnities and reserves
incurred, contracted for, attributable to or otherwise existing with respect to
the Trust generally or any other Series shall be enforceable against the assets
of such Series. Any general liabilities, expenses, costs, charges, indemnities
or reserves of the Trust which are not readily identifiable as being held with
respect to any particular Series shall be allocated and charged by the Sponsor
to and among any one or more of the Series in such manner and on such basis as
the Sponsor in its sole discretion deems fair and equitable. Pursuant to the
Delaware Statutory Trust Act and the Amended and Restated Trust Agreement of
the Trust, any party extending credit to, contracting with or having any claim
against any Series of the Trust may look only to the assets of such Series to
satisfy or enforce any debt with respect to that Series. 

          (b)
This Agreement has been entered into by the Trust and was executed and
delivered by an officer of its Sponsor, on behalf of the Trust, which officer
was acting solely in his capacity as an officer of the Sponsor and not in his
individual capacity and which Sponsor was acting solely in its capacity as
sponsor of the Trust and not in its individual capacity. The obligations of
this Agreement are not binding on such officer, the Sponsor or any shareholder
of the series of the Trust individually. The obligations of this Agreement are
binding only upon the assets and property of the Trust or belonging or
attributable to a Series thereof. 

ARTICLE XII 

AMENDMENT

          Section
12.1. Amendment.

          (a)
The Sponsor may amend any provisions of this Trust Agreement without the
consent of any Shareholder or Beneficial Owner. Any amendment that imposes or
increases any fees or charges (other than taxes and other governmental charges)
or prejudices a substantial existing right of the Shareholders will not become
effective until thirty (30) days after notice of such amendment is given, or caused
to be given, by the Sponsor to the Shareholders. Every Shareholder and
Beneficial Owner, at the time any such amendment becomes effective, shall be 

47

deemed, by
continuing to hold any Shares or an interest therein, to consent and agree to
such amendment and to be bound by this Trust Agreement as amended thereby. In
no event shall any amendment impair the right of a Shareholder to redeem
Baskets and receive therefor the amount of the Trust Estate of the applicable
Fund represented thereby, except in order to comply with mandatory provisions
of applicable law. Notwithstanding any other provision of this Trust Agreement,
no amendment to this Trust Agreement may be made if, as a result of such
amendment, it would cause the Trust to be taxable as an association taxable as
a corporation for U.S. federal income tax purposes. 

          (b)
No amendment shall be made to this Trust Agreement without the consent of the
Trustee if such amendment adversely affects any of its rights, duties or
liabilities. 

[SIGNATURE PAGE FOLLOWS]

48

          IN
WITNESS WHEREOF, the parties hereto do hereby make and enter into this Amended
and Restated Trust Agreement as of the date first-above written. 

	
  

 	
  

 	
  

 
	
  

 	
 ETF
 SECURITIES USA LLC

 
	
  

 	
 as Sponsor

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
    Name:

 
	
  

 	
    Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 WILMINGTON
 TRUST COMPANY,

 
	
  

 	
 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
    Name:

 
	
  

 	
    Title:

 

49

EXHIBIT A

FORM OF GLOBAL CERTIFICATE1

CERTIFICATE OF BENEFICIAL INTEREST 

-Evidencing- 

All Shares 

-in-

ETFS COLLATERALIZED COMMODITIES TRUST 

WITH RESPECT TO ONE OF ITS SERIES,

 [                    ]

	
  

 	
  

 
	
  

 	
 UNLESS THIS CERTIFICATE IS
 PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
 NEW YORK CORPORATION (“DTC”), TO THE TRUST WITH RESPECT TO THE FUND OR ITS
 AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
 ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
 IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
 TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
 REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
 OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
 HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

 

This is to certify that CEDE
& CO. is the owner and registered holder of this Certificate evidencing the
ownership of all issued and outstanding Shares (“Shares”), each of which
represents a fractional undivided Share of beneficial interest in
[          ] (the “Fund”),
established and designated as a series of ETFS Collateralized Commodities Trust
(the “Trust”), a Delaware statutory trust formed under the Delaware Statutory
Trust Act (12 Del. C. § 3801 et seq.)
pursuant to a Certificate of Trust, dated as of and filed in the offices of the
Secretary of State of the State of Delaware on May 27, 2010, and an Amended and
Restated Declaration of Trust and Trust Agreement, dated as of
[               ],
by and among ETFS Securities USA LLC, a Delaware limited liability company, as
Sponsor, Wilmington Trust Company, a Delaware banking company, as trustee, and
the Shareholders of each series from time to time thereunder (hereinafter
called the “Trust Agreement”), copies of which are available at the principal
offices of the Trust. 

          At
any given time this Certificate shall represent all Shares of beneficial
interest in the Fund, which shall be the total number of Shares that are
outstanding at such time. The Trust Agreement provides for the deposit of cash
with the Fund from time to time and the issuance by the Trust, with respect to
the Fund, of additional Creation Units representing the undivided Shares of
beneficial interest in the assets of the Fund. At the request of the registered
holder this Certificate may be exchanged for one or more Certificates issued to
the registered holder in such denominations as the registered holder may
request, provided, however, that, in the aggregate, the
Certificates issued to the registered holder hereof shall represent all Shares
outstanding at any given time. 

          Each
Authorized Participant hereby grants and conveys all of its rights, title and
interest in and to the Fund to the extent of the undivided interest represented
hereby to the registered holder of this Certificate subject to and in pursuance
of the Trust Agreement, all the terms, conditions and covenants of which are
incorporated herein as if fully set forth at length. 

	
  

 	
  

 
	

 

 
	
 1

 	
 Forms of Global
 Certificates of Beneficial Interest for each of ETFS ex-U.S. Oil, ETFS
 Natural Gas, ETFS Copper, ETFS Wheat, ETFS Composite Agriculture, ETFS
 Composite Industrial Metals, ETFS Composite Energy, ETFS All Commodities,
 ETFS Short ex-U.S. Oil, ETFS Short Natural Gas, ETFS Short Copper, ETFS Short
 Wheat, ETFS Short Gold, ETFS Leveraged ex-U.S. Oil, ETFS Leveraged Natural
 Gas, ETFS Leveraged Copper, ETFS Leveraged Wheat and ETFS Leveraged Gold
 shall be, except for the names of the Funds, substantially identical to this
 Form of Global Certificate. 

 

A-1

          The
registered holder of this Certificate is entitled at any time upon tender of
this Certificate to the Fund, endorsed in blank or accompanied by all necessary
instruments of assignment and transfer in proper form, at its principal office
in the State of New York and, upon payment of any tax or other governmental
charges, to receive at the time and in the manner provided in the Trust
Agreement, such holder’s ratable portion of the assets of the Fund for each
Redemption Unit tendered and evidenced by this Certificate. 

          The
holder of this Certificate, by virtue of the purchase and acceptance hereof,
assents to and shall be bound by the terms of the Trust Agreement, copies of
which are on file and available for inspection at reasonable times during
business hours at the principal office of the Trust, to which reference is made
for all the terms, conditions and covenants thereof. 

          The
Fund may deem and treat the person in whose name this Certificate is registered
upon the books of the Fund as the owner hereof for all purposes and the Fund
shall not be affected by any notice to the contrary. 

          The
Trust Agreement permits, with certain exceptions as therein provided, the
amendment thereof, by the Sponsor with the consent of the Beneficial Owners
holding Shares (excluding Shares held by the Sponsor and its Affiliates) equal
to at least a majority (over 50%) of the net asset value of the Fund and other
funds established as series of the Trust or such higher percentage as may be
required by applicable law, and upon receipt of an opinion of independent legal
counsel to the effect that the amendment is legal, valid and binding and will
not adversely affect the limitations on liability of the Beneficial Owners; provided,
however that the Sponsor may, without the approval of the Beneficial
Owners, make such amendments to the Trust Agreement which (i) are necessary to
add to the representations, duties or obligations of the Sponsor or surrender
any right or power granted to the Sponsor in the Trust Agreement, for the
benefit of the Beneficial Owners, (ii) are necessary to cure any ambiguity, to
correct or supplement any provision in the Trust Agreement which may be
inconsistent with any other provision in the Trust Agreement or in the
Prospectus, or to make any other provisions with respect to matters or
questions arising under the Trust Agreement or the Prospectus which will not be
inconsistent with the provisions of the Trust Agreement or the Prospectus, or
(iii) the Sponsor deems advisable, provided, however, that no
amendment shall be adopted pursuant to clause (iii) unless the adoption thereof
(A) is not adverse to the interests of the Beneficial Owners; (B) is consistent
with Sponsor’s control of and power to conduct the business of the Trust; (C)
with certain exceptions, does not affect the allocation of profits and losses
among the Beneficial Owners or between the Beneficial Owners and the Sponsor;
and (D) does not adversely affect the limitations on liability of the
Beneficial Owners or the status of the Trust or the Fund as a grantor trust for
U.S. federal income tax purposes. Any such consent or waiver by the holder of
Shares shall be conclusive and binding upon such holder of Shares and upon all
future holders of Shares, and shall be binding upon any Shares, whether
evidenced by a Certificate or held in uncertificated form, issued upon the
registration or transfer hereof whether or not notation of such consent or
waiver is made upon this Certificate and whether or not the Shares evidenced
hereby are at such time in uncertificated form. The Trust Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of any holders of Shares. 

          In
accordance with Section 3.7 of the Trust Agreement, the holder of this
Certificate agrees and consents (the “Consent”) to look solely to the assets
(the “Fund Assets”) of the Fund and to the Sponsor and its assets for payment
in respect of any claim against or obligation of the Fund. The Fund Assets
include only those funds and other assets that are paid, held or distributed to
the Trust on account of and for the benefit of the Fund, including, without
limitation, funds delivered to the Trust for the purchase of Shares in the
Fund. 

          In
furtherance of the Consent, the holder agrees that (i) any debts, liabilities,
obligations, indebtedness, expenses and claims of any nature and of all kinds
and descriptions (collectively, “Claims”) of the Fund incurred, contracted for
or otherwise existing and (ii) the Shares shall be subject to the following
limitations: 

          (a) (i) except as set forth below, the Claims
and Shares (collectively, the “Subordinated Claims and Shares”) shall be
expressly subordinate and junior in right of payment to any and all other
claims against and Shares in the Trust and any series thereof, pursuant to any
contract; provided, however, that the holder’s Claims (if any)
against and Shares shall not be considered Subordinated Claims and Shares with
respect to enforcement against and distribution and repayment from the Fund,
the Fund Assets and the Sponsor and its assets; and provided further that (1)
the holder’s valid Claims, if any, against the Fund shall be pari passu and
equal in right of repayment and distribution with all other valid Claims
against the Fund and (2) the holder’s Shares shall be pari passu and equal in
right of repayment and distribution with all other Shares in the Fund; and (ii)
the holder will not take, demand, or receive from any series or the Trust or
any of their respective assets (other than the Fund, the Fund Assets and the
Sponsor and its assets) any payment for the Subordinated Claims and Shares; 

A-2

          (b)
the Claims and Shares of the holder shall only be asserted and enforceable
against the Fund, the Fund Assets and the Sponsor and its assets and such
Claims and Shares shall not be asserted or enforceable for any reason
whatsoever against any other series, the Trust generally or any of their
respective assets; 

          (c)
If the Claims of the holder against the Fund or the Trust are secured in whole
or in part, the holder hereby waives (under section 1111(b) of the Bankruptcy
Code (11 U.S.C. § 1111(b)) any right to have any deficiency Claims (which
deficiency Claims may arise in the event such security is inadequate to satisfy
such Claims) treated as unsecured Claims against the Trust or any series (other
than the Fund), as the case may be; 

          (d)
in furtherance of the foregoing, if and to the extent that the holder receives
monies in connection with the Subordinated Claims and Shares from a series or
the Trust (or their respective assets), other than the Fund, the Fund Assets
and the Sponsor and its assets, the holder shall be deemed to hold such monies
in trust and shall promptly remit such monies to the series or the Trust that
paid such amounts for distribution by the series or the Trust in accordance
with the terms hereof; and 

          (e)
the foregoing Consent shall apply at all times notwithstanding that the Claims
are satisfied, the Shares represented by this Certificate are sold, transferred,
redeemed or in any way disposed of and notwithstanding that the agreements in
respect of such Claims and Shares are terminated, rescinded or canceled.

          The
Trust Agreement, and this Certificate, is executed and delivered by ETF Securities
USA LLC, as Sponsor, in the exercise of the powers and authority conferred and
vested in it by the Trust Agreement. The representations, undertakings and
agreements made on the part of the Trust in the Trust Agreement or the Fund in
this Certificate are made and intended not as personal representations,
undertakings and agreements by ETF Securities USA LLC but are made and intended
for the purpose of binding only the Trust and the Fund. Nothing in the Trust
Agreement or this Certificate shall be construed as creating any liability on
ETF Securities USA LLC, individually or personally, to fulfill any
representation, undertaking or agreement other than as provided in the Trust
Agreement or this Certificate. 

          This
Certificate shall not become valid or binding for any purpose until properly
executed by the Sponsor pursuant to the Trust Agreement. 

          Terms
not defined herein have the same meaning as in the Trust Agreement. 

          IN
WITNESS WHEREOF, ETF Securities USA LLC, as Sponsor, has caused this
Certificate to be executed in its name by the manual or facsimile signature of
one of its Authorized Officers. 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ETFS Collateralized
 Commodities Fund

 
	
  

 	
  

 	
 with respect to
 ____________________

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 ETF Securities USA LLC, as
 Sponsor

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Officer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Officer

 
	
  

 	
  

 	
  

 
	
  

 	
 Date: __________, ______

 

A-3

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