Document:

Exhibit

Exhibit 10.84

	
		
	Managed Services Agreement Number
	#1766

Private Cloud Services Agreement

	
		
	Date:
	December  10, 2015

	
				
	NACR:
	North American Communications Resource, Inc.
	CUSTOMER:
	Bridgepoint Education, Inc.

	 
	3344 Hwy 149
	 
	13500 Evening Creek Drive North

	 
	Eagan, MN  55121
	 
	San Diego, CA 92128

	 
	(800) 431-1333
	 
	     

	 
	FAX 651-994-6801
	 
	 

This PRIVATE CLOUD SERVICES AGREEMENT (“Agreement”) is made and entered into on the date indicated above (“Effective Date”) by and between NACR and Customer.  NACR and Customer are each a “Party” to this Agreement and may collectively be referred to herein as the “Parties.”  

In consideration of the mutual undertakings herein contained, the Parties agree as follows:

		
	1.
	This Agreement shall apply to:  

		
	A)
	“Equipment,” as fully described on a Statement of Work (“Statement of Work”, “Scope of Work”, or “SOW”), owned by NACR, access to which is to be supplied to Customer by NACR as a private cloud service for Customer’s use;

		
	B)
	“Managed Services” (services ordered by Customer from NACR to improve the productivity and efficiency of the Equipment) shall be provided on the basis of the quantity and type of user. Such Managed Services shall be described in detail on an SOW.  NACR will perform a true-up on a quarterly basis to reconcile future billing on any items that have been added (activated) or removed (deactivated) during the previous quarter.  Additional user fees will be added to the Total Minimum Monthly Fees as set forth on an SOW, trued-up quarterly, and will co-term at the end of the Initial Term of this Agreement; and

		
	C)
	“Maintenance Services” (services ordered by Customer from NACR to maintain and service the Equipment to ensure that it operates in conformance with all applicable documentation and specifications).  Such Maintenance Services shall be described in detail in an SOW.

NACR’s provision of access to the Equipment, along with NACR’s provision of the Managed Services, Maintenance Services, and any other professional services that relate to the Equipment as outlined in the pertinent SOW, shall collectively be referred to herein as the “Services.”

In the event of a conflict between the terms and provisions of the SOW and the terms and provisions of this Agreement, the terms and provisions of this Agreement will control.  NACR will provide the Services to Customer at times upon which Customer and NACR agree. Customer will arrange for the delivery of the Equipment to its designated facility. Upon delivery, Customer agrees to inspect the Equipment to determine if the packing appears to be intact and not damaged. The Services will be deemed accepted by Customer upon the delivery to NACR or its assignee of a signed acceptance certificate.

		
	2.
	Customer may issue to NACR a purchase order to order the Services from NACR, but no terms or provisions of the purchase order shall apply.  Rather, only the terms and provisions of this Agreement shall apply to the Services.  If Customer submits a purchase order to order the Services hereunder, the purchase order must contain the following language: “THE TERMS AND PROVISIONS OF THE PRIVATE CLOUD SERVICES 

 
AGREEMENT                   DATED DECEMBER ___, 2015                    BY AND BETWEEN NACR AND                                             BRIDGEPOINT EDUCATION, INC. APPLY TO THIS PURCHASE ORDER.”  

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	3.
	FEES.  The minimum price to be charged for the Services (“Total Minimum Monthly Fees”) is specified in the SOW.    Customer shall pay to NACR or its assignee the Total Minimum Monthly Fees, together with any other itemized charges, taxes, and costs (“Amount Due”), in the manner described in the SOW.  The currency to be used for payment of the Amount Due is the United States Dollar.   If any Total Minimum Monthly Fee or other amount payable to NACR or its assignee is not paid within 10 days of its due date, Customer shall, to the extent permitted by law, pay on demand, as a late charge, an amount equal to the greater of $25.00 or 2% of the amount then due for each 30 days or portion thereof that said overdue payments are not made (but in no event to exceed the highest late charge permitted by applicable law); provided, however that interest and late charges shall not be applied to any portion of a payment for items outside of the Total Minimum Monthly Fees, which portion is the subject of a good faith dispute raised by Customer and which is resolved in favor of Customer..

		
	4.
	INVOICING AND PAYMENT.  NACR or its assignee will invoice Customer the Total Minimum Monthly Fees and any other amounts due as set forth in the SOW, on a monthly basis in advance.  Payment is due thirty (30) days after the invoice date. Customer will pay all bank charges, taxes, duties, levies, and other costs and commissions associated with any wire transfer or other means of payment.  Customer is not responsible for any income tax assessed on the net income of NACR or its assignee. Customer shall be responsible for the timely payment, reporting and/or discharge of all sales and use taxes, rental taxes, and personal property taxes and agrees to reimburse NACR or its assignee for all taxes assessed against the Equipment during the term of this Agreement that are paid by NACR or its assignee on behalf of Customer.

Payment of  the Total Minimum Monthly Fees specified in the SOW is not conditioned upon NACR’s performance under this Agreement, or Customer’s receipt of moneys or services from any other person.  All of the Total Minimum Monthly Fees are non-cancelable and are the absolute and unconditional obligations of Customer. Customer is not entitled to abate or reduce any Total Minimum Monthly Fee or the Termination Amount (as defined in Section 7) or set-off any other amounts against Total Minimum Monthly Fees or the Termination Amount.

4.1 Benchmarking Right.  Beginning no sooner than twelve (12) months following the commencement of the Services, Customer, no more than once annually, may, at its own expense, engage the services of an independent third party (a “Benchmarker”) to compare the quality and cost of the Services against the quality and cost of other leading providers of reasonably comparable services that share substantially similar attributes with respect to scope and nature of overall services or components of the services, geographic scope of overall services or components of the services, quality standards and service levels, technology, contract terms (e.g., contract duration, risk allocation, and special terms) and, payment terms for the Services current within the six (6) months prior to the benchmarking (the “Benchmark Standard”) to ensure that Customer is receiving from NACR pricing and levels of service that are competitive with market rates, prices and service levels, given the nature, quality, and volumes where the Services are received and type of Services provided by NACR.

The Benchmarker shall determine a range of prices for Comparable Services (as defined in the Statement of Work) on the basis of a sampling, selected in accordance with the Benchmarking Process, of (1) the prices charged by other Avaya authorized Platinum Business Partners in respect of a bundle of managed services similar in nature, type, quality (as measured by the Service Levels) and volume to the Service Delivery Contract, and (2) the costs plus a reasonable margin for performing comparable services.

The Benchmarker shall create a report outlining its findings with the aforementioned requirements (“Benchmark Report”) and shall provide a copy of the Benchmark Report to Customer and NACR and each party shall have sixty (60) calendar days from the issuance of the Benchmark Report to review the Benchmark Report and to raise objections to the results outlined in the Benchmark Report on the basis of concerns such as, but not limited to, (1) an identified and material deviation by the Benchmarker from the agreed upon benchmarking process, or (2) a material error in the sampling data, or (3) insufficiency of comparable data on which to base results (“Benchmark Review”).  Any such notice of objection shall include a description of the nature of such objection in sufficient detail to enable the Benchmarker and the non-objecting Party to assess the merit of the objection.  Upon the expiration of the Benchmark Review Period, Customer and NACR shall request the Benchmarker to issue a written response addressing any objections made.

If, after the parties agree upon the accuracy of the findings in the Benchmark Report, the Benchmark Report finds that the difference in the charges paid by Customer for all Services is greater than fifteen percent (15%) of the prices charged by other leading providers of comparable services according to the Benchmark Standard, the Parties shall meet and negotiate in good faith to (1) reduce the fees, in each case, as reasonably supported by the Benchmarker’s final report, (2) increase the volume of designated Services or add new Services without an 

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increase in the fees payable by Customer, or (3) adjust the service levels. Under no circumstances will Customers purchase obligation with regard to the Bill of Sale be modified as a result of this benchmarking process.   
 

		
	5.
	CUSTOMER RESPONSIBILITIES.

5.1 General.  Customer will cooperate with NACR as reasonably necessary for NACR’s performance of its obligations under this Agreement, including things such as (i) providing NACR with full, free, and safe access to Customer’s facilities; (ii) providing telephone numbers, network addresses, and passwords necessary for remote access; and (iii) providing interface information and necessary third party consents and licenses.  The foregoing three (3) items will be provided by Customer at Customer’s expense.  If NACR provides an Update or other new release of software as part of the Managed Services or Maintenance Services, Customer will allow NACR to implement it promptly.

5.2 Vendor Management.  If as part of the Services NACR is to instruct or request products or services on Customer’s behalf from third party vendors under Customer’s supply contracts with the third party vendors (“Vendor Management”), Customer will provide NACR with a letter of agency or similar document, in a form that is reasonably satisfactory to NACR, that authorizes NACR to perform the Vendor Management.  Where the third party vendor’s consent is required for NACR to be able to perform the Vendor Management in a timely manner, Customer will obtain the written consent of the third party vendor and will provide NACR with a copy of such written consent.

5.3 Third Party Hosting.  For Managed Services and Maintenance Services that include monitoring, if one (1) or more network address(es) to be monitored by NACR are associated with systems owned, managed, and/or hosted by a third party service provider (“Host”), Customer will (i) notify NACR of the Host prior to commencement of the Managed Services and Maintenance Services; (ii) obtain Host’s advance written consent for NACR to perform the Managed Services and Maintenance Services on Host’s computer systems on the form provided by NACR, and will provide NACR with a copy of such signed consent; and (iii) facilitate necessary communications between NACR and Host in connection with the Managed Services and Maintenance Services.

		
	5.4
	Access to Personal Data.  If Customer expressly instructs NACR in writing either to access personal data of any employee, customer, or other individual (“Personal Data”), or to provide Customer or a third party identified by Customer with access to such Personal Data, Customer will indemnify NACR and its owners, officers, directors, employees, agents, assignee, and affiliates against, and will hold each of them harmless from, any and all liabilities, costs, damages, judgments, and expenses (including costs and reasonable attorneys’ fees) arising out of NACR’s accessing or providing access in accordance with Customer’s written instructions.

		
	5.5
	NACR is the owner of the Equipment. Customer shall keep all Equipment free and clear of all liens and encumbrances arising by or through Customer and that it shall provide such additional assurances as NACR or its assignee shall request to perfect and protect its rights and interest in the Equipment and under this Agreement, including providing waivers of interest by third party landlords or property owners, and grants of access, to inspect or remove the Equipment as provided herein and authorizes NACR or its assignee to record UCC financing statements to indicate its interest in the Equipment. 

		
	5.6
	When Customer seeks to move any Equipment, Customer will notify NACR.  Only NACR or its authorized agent may move Equipment.  If Equipment is moved by a party other than NACR or its authorized agent, NACR may charge Customer additional amounts as reimbursement for any additional costs incurred by NACR in providing the Managed Services and Maintenance Services as a result of such move.

		
	5.7
	Customer shall designate a coordinator at Customer’s site with the knowledge and authority to make decisions with respect to all of Customer’s operations in order for NACR to meet its obligations hereunder.

		
	5.8
	Customer shall make available such data as is necessary to adequately test the Equipment and/or Service(s).

		
	6.
	CONFIDENTIAL INFORMATION.  “Confidential Information” means either Party’s business and/or technical information (including, but not limited to, information concerning any pricing and discounts), information concerning employees, and any other information or data, regardless of whether such information is in tangible, electronic, or other form, if it is marked or otherwise identified in writing as confidential or proprietary. Information communicated verbally will qualify as Confidential Information if it is designated as confidential or proprietary at the time of disclosure and summarized in writing within thirty (30) days after verbal disclosure.  Confidential Information does not include materials or information that (i) is generally known by third parties as a result of no act or omission of the receiving Party; (ii) subsequent to its disclosure, it was lawfully received from a third party having the right to disseminate the information without restriction on disclosure; (iii) was already known by the receiving Party prior to receiving it from the other Party and it was not 

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received from a third party in breach of that third party’s obligations of confidentiality; (iv) was independently developed by the receiving Party without use of Confidential Information of the disclosing Party; or (v) is required to be disclosed by court order or other lawful government action, but only to the extent ordered, and provided that the receiving Party promptly provides to the disclosing Party written notice of the pending disclosure so that the disclosing Party may attempt to obtain a protective order.  In the event of a potential disclosure pursuant to subsection (v) above, the receiving Party will provide reasonable assistance to the disclosing Party where the disclosing Party attempts to obtain a protective order.  Each Party will protect the confidentiality of all Confidential Information received from the other Party with the same degree of care as it uses to protect its own Confidential Information, but in no event with less than a reasonable degree of care.  Except as permitted in this Section or for the purpose of performing its obligations under the terms and provisions of this Agreement, neither Party will use or disclose the other Party’s Confidential Information.   The confidentiality obligations of each Party will survive the termination of this Agreement. Upon termination of this Agreement, each Party will cease all use of the other Party’s Confidential Information and will promptly return (or, at the other Party’s request, destroy) all Confidential Information in tangible form and all copies of Confidential Information in that Party’s possession or under its control.  In addition, each Party will destroy all copies of the other Party’s Confidential Information that it has on its computers, disks, and other digital storage devices.  Upon request, a Party will certify in writing its compliance with the terms and provisions of this Section.

7.    TERM AND TERMINATION.  Unless otherwise specified in the applicable SOW, the Agreement will commence as of the Effective Date and continue for the number of months specified on the SOW (“Initial Term”) and for any successive Renewal Term.  Unless otherwise specified in the applicable SOW, Customer may terminate Services, in whole, upon providing to NACR thirty (30) days advance written notice; provided, however, that Customer shall be liable for the Termination Amount described below.  NACR may terminate this Agreement by providing written notice to Customer if an Event of Default (as defined in Section 13) occurs. If the Agreement ends or is terminated by either party, Customer and Vendor shall work in good faith to develop a mutually agreed upon transition schedule and fee schedule for up to ninety (90) days from the Termination Date (defined below) to support moving the Managed Services and Maintenance Services in-house or to alternative service provider(s).  

 Termination for Cause.  Either Party may terminate this Agreement by giving written notice of termination (i) in the event of a material breach (which for purposes of this Agreement means a breach that significantly and negatively impacts the ability of the non-breaching party to realize the benefits of the Agreement) of this Agreement which is not substantially cured within sixty (60) days after written notice is given to the breaching Party specifying the breach; or (ii) in the event of (A) the liquidation or insolvency of a Party; (B) the appointment of a receiver or similar officer for a Party; (C) an assignment by a Party for the benefit of all or substantially all of its obligations; or (D) the filing of a meritorious petition in bankruptcy by or against a Party under any bankruptcy or debtors’ law for its relief or reorganization. Any such termination shall not relieve Customer of its obligations to pay the remaining unpaid Total Minimum Monthly Fees (“Termination Amount”); provided, however that (i) following the second full year of the Services, the Termination Amount shall be one hundred percent (100%) of the remaining Total Minimum Monthly Fees, (ii) following the third full year of the Services, the Termination Amount shall be reduced to ninety percent (90%) of the remaining Total Minimum Monthly Fees, and (iii) following the fourth full year of the Services, the Termination Amount shall be reduced to eighty percent (80%) of the remaining Total Minimum Monthly Fees.  In order to exercise such termination rights, Customer must notify NACR in writing no more than 90 days and no less than 60 days prior to the one year anniversary date of the end of the second, third, and fourth full years of Services of Customer’s election to terminate this Agreement and remit the related Termination Amount.   

Notwithstanding the foregoing, in the event of a Severity One (S1) issue that severely affects Customer’s ability to perform normal business operations for thirty (30) or more contiguous days, excluding failures caused by any of the Service Level Exceptions as defined in Appendix B of the SOW, Customer may elect to provide NACR with written notice of Customer’s intent to terminate the Agreement if service is not restored within another thirty (30) contiguous days from the date NACR receives such written notification.  In the event of a termination under such circumstances, the amount payable to NACR for such termination shall be limited to the actual and reasonable transition and wind down costs, to be negotiated in good faith by the parties. 

The Parties acknowledge that (i) the failure of NACR to meet any SLA as set forth on an SOW shall not constitute a “material breach” for purposes of the Termination for Cause provisions of the Agreement, and (ii) the sole remedy of Customer with respect to the failure of NACR to meet an SLA shall be the payment by NACR to Customer of the applicable performance credits set forth on the SOW; provided, however, that failure to meet two (2) or more SLAs in the same service level category, resulting in performance credits, for a continuous period of three (3) months, shall constitute a material breach of this Agreement.

Effect of Termination - Termination of this Agreement or any SOW shall not limit the right of either Party to pursue other remedies available to it, including injunctive relief, nor shall such termination relieve Customer of its obligation to pay all of the Total Minimum Monthly Fees that have accrued or have not yet been paid by Customer to NACR or its assignee 

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under any SOW. At the end of the Initial Term, the licenses may be assigned to Customer and the system can be managed and maintained by Customer. There will be reasonable transition costs and a negotiated value to buy out the Equipment (determined fair market value). 

		
	8.
	REPRESENTATIONS AND WARRANTIES.  NACR represents and warrants to Customer that the Managed Services and Maintenance Services will be performed in a professional and workmanlike manner by qualified personnel and in accordance with the terms and provisions of this Agreement. If the Managed Services or Maintenance Services have not been so performed and if within thirty (30) days after the performance of the applicable Managed Service or Maintenance Service Customer provides to NACR written notice of such non-compliance, then NACR, at its option, will re-perform the Managed Service or Maintenance Service, correct the deficiencies, or render a prorated refund based on the original charge for the deficient Managed Service or Maintenance Service.  

The warranty remedies expressly provided in this Section will be Customer’s sole and exclusive remedies for breach of warranty claims only.  EXCEPT AS REFERENCED AND LIMITED IN THIS AGREEMENT, NACR NOR ITS LICENSORS, ASSIGNEE, OR SUPPLIERS MAKE ANY OTHER EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE EQUIPMENT OR THE MANAGED SERVICES OR MAINTENANCE SERVICES.  IN PARTICULAR, THERE IS NO WARRANTY THAT ALL SECURITY THREATS AND VULNERABILITIES WILL BE DETECTED, OR THAT THE MANAGED SERVICES OR MAINTENANCE SERVICES WILL RENDER ANY PRODUCT OR EQUIPMENT SAFE FROM SECURITY BREACHES.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NACR DISCLAIMS ALL OTHER EXPRESS, IMPLIED, AND STATUTORY WARRANTIES, INCLUDING, BUT NOT LIMITED TO, NON-INFRINGEMENT AND THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 

		
	9.
	LIMITATION OF LIABILITY.  EXCEPT FOR THE TERMINATION AMOUNT AND THE DAMAGES OR LIABILITY ARISING OUT OF A PARTY’S FAILURE TO COMPLY WITH ITS OBLIGATIONS UNDER SECTIONS 6 (CONFIDENTIAL INFORMATION), AND SECTION 12 (INTELLECTUAL PROPERTY), IN NO EVENT WILL EITHER PARTY OR ITS RESPECTIVE LICENSORS OR SUPPLIERS OR NACR’S ASSIGNEE HAVE ANY LIABILITY FOR ANY INCIDENTAL, SPECIAL, STATUTORY, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOST SAVINGS, OR LOST REVENUES OF ANY KIND; LOST, CORRUPTED, MISDIRECTED, OR MISAPPROPRIATED DATA; CHARGES FOR COMMON CARRIER TELECOMMUNICATIONS SERVICES; CHARGES FOR FACILITIES ACCESSED THROUGH OR CONNECTED TO THE PRODUCTS THAT THE MANAGED SERVICES ARE PERFORMED ON (“TOLL FRAUD”); NETWORK DOWNTIME; INTERRUPTION OF BUSINESS ARISING OUT OF OR IN CONNECTION WITH PERFORMANCE OR NON-PERFORMANCE OF THE PRODUCTS THAT THE MANAGED SERVICES ARE PERFORMED ON OR USE BY CUSTOMER; OR  COST OF COVER).  

EACH PARTY’S LIABILITY FOR ANY CLAIM ARISING OUT OF OR IN CONNECTION WITH THE TERMS AND PROVISIONS OF THIS AGREEMENT WILL NOT EXCEED (A) IN THE CASE OF CUSTOMER, THE TOTAL AMOUNT PAYABLE TO NACR UNDER THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THE SOW WITH RESPECT TO WHICH SUCH CLAIM ARISES, AND (B) IN THE CASE OF NACR, THE TOTAL AMOUNT ACTUALLY PAID BY CUSTOMER TO NACR UNDER THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THE SOW WITH RESPECT TO WHICH SUCH CLAIM ARISES.  THE LIMITATIONS OF LIABILITY IN THIS SECTION WILL APPLY TO ANY DAMAGES, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY (WHETHER IN CONTRACT, TORT, OR OTHERWISE), AND REGARDLESS OF WHETHER (1) EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; OR (2) THE LIMITED REMEDIES AVAILABLE TO THE PARTIES FAIL OF THEIR ESSENTIAL PURPOSE.  THE LIMITATIONS OF LIABILITY PROVISIONS IN THIS SECTION ALSO WILL APPLY TO ANY LIABILITY OF OWNERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS, AND AFFILIATES.  THE LIMITATIONS OF LIABILITY PROVISIONS IN THIS SECTION, HOWEVER, WILL NOT APPLY IN CASES OF INTENTIONAL (WILLFUL) MISCONDUCT OR GROSS NEGLIGENCE, PERSONAL INJURY OR DEATH, OR DAMAGES TO PROPERTY.

		
	10.
	DISPUTE RESOLUTION   If a dispute arises that cannot be resolved by the personnel directly involved, the dispute shall be referred jointly to the responsible area senior management for NACR and Customer.  The senior management shall exercise good faith efforts to settle the dispute within thirty (30) days (or an extended period, if they so agree).  In the event that the dispute is not resolved within such a period, the Parties reserve the right to seek other relief as the Party deems appropriate.   

		
	11.
	NON-SOLICITATION OF EMPLOYMENT.

11.1    NACR agrees that it will not solicit for employment, or employ directly or indirectly, Customer’s personnel during the term of this Agreement or for a period of twelve (12) months thereafter except as may be mutually agreed by the Parties; provided, however, that NACR may hire Customer’s personnel if Customer’s personnel initiate contact with NACR (e.g., a response to NACR’s general recruiting initiatives).  If NACR violates this provision, NACR will 

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pay to Customer an amount equal to the amount of the total potential compensation for the first twelve (12) months for the Customer employee that has been hired.  NACR shall pay such amount to Customer on the date that is thirty (30) days after the person accepts NACR’s offer of employment.

11.2.    Customer agrees that it will not solicit for employment, or employ directly or indirectly, NACR’s personnel during the term of this Agreement or for a period of twelve (12) months thereafter; provided, however, that Customer may hire NACR’s personnel if NACR’s personnel initiate contact with Customer (e.g., a response to Customer’s general recruiting initiatives).  If Customer violates this provision, Customer will pay to NACR an amount equal to the amount of total potential compensation for the first twelve (12) months for the NACR employee that has been hired.  Customer shall pay such amount to NACR on the date that is thirty (30) days after the person accepts Customer’s offer of employment.

		
	12.
	INTELLECTUAL PROPERTY.

12.1    NACR and Customer shall each retain all right, title, and interest in and to their respective pre-existing intellectual property and no license therein, whether express or implied, is granted by this Agreement or as a result of the Services performed hereunder.  To the extent that the Parties wish to grant to the other rights or interests in pre-existing intellectual property, separate license agreements on mutually acceptable terms will be executed.  

12.2    NACR may perform the same or similar Services for others.

12.3    As used herein, “Intellectual Property” shall mean inventions (whether or not patentable), works of authorship, trade secrets, techniques, know-how, ideas, concepts, algorithms, and other intellectual property incorporated in any deliverable and first created or developed by NACR in providing the Services.

12.4    Intellectual Property Infringement Indemnification - With respect to Equipment that NACR provides to Customer hereunder, NACR will provide to Customer an intellectual property infringement indemnity to the extent, and only to the extent, that NACR receives an intellectual property infringement indemnity from the respective manufacturer for such Equipment.  The terms and provisions of each intellectual property infringement indemnity that apply to the respective Equipment that NACR provides to Customer hereunder are available at www.nacr.com. Because NACR is not the manufacturer of any of the Equipment, NACR provides no indemnity with respect to any claim that arises from a combination of (i) Equipment manufactured by one (1) manufacturer with Equipment manufactured by a different manufacturer; or (ii) Equipment that NACR provides to Customer with any product that NACR has not provided to Customer.  Notwithstanding the preceding sentence, however, with respect to each individual item of Equipment involved in the aforementioned combinations, NACR will still provide to Customer the intellectual property infringement indemnity to the extent, and only to the extent, that NACR receives an intellectual property infringement indemnity from the respective manufacturer for the respective Equipment.

		
	13.
	EVENTS OF DEFAULT.

		
	13.1.
	Events of default (“Events of Default”) under this Agreement shall include, but not be limited to, the following:

		
	13.1.1.
	Customer fails to pay any Total Minimum Monthly Fee or any other amount payable to NACR under this Agreement within ten (10) days after its due date; or

		
	13.1.2.
	Customer fails to perform or observe any other representation, warranty, covenant, condition or agreement to be performed or observed by Customer under this Agreement, and Customer fails to cure any such breach within thirty (30) days after notice thereof; or

		
	13.1.3.
	any representation or warranty made by Customer under this Agreement, or in any other instrument provided to NACR by Customer proves to be incorrect in any material respect when made; or

		
	13.1.4.
	Customer makes an assignment for the benefit of creditors, whether voluntary or involuntary; or

		
	13.1.5.
	a proceeding under any bankruptcy, reorganization, arrangement of debts, insolvency or receivership law is filed by or against Customer or Customer takes any action to authorize any of the foregoing matters; or

		
	13.1.6.
	Customer becomes insolvent or fails generally to pay its debts as they become due, the Equipment is levied against, seized or attached, or Customer seeks to effectuate a bulk of sale of Customer’s inventory or assets; or

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	13.1.7.
	Customer voluntarily or involuntarily dissolves or is dissolved.

		
	13.2.
	If an Event of Default occurs, NACR or its assignee may, in its sole discretion, exercise one or more of the following remedies:

		
	13.2.1.
	terminate this Agreement; 

		
	13.2.2.
	take possession of, or render unusable the Equipment without demand or notice, without any court order or other process of law, and without liability to Customer for any damages occasioned by such action, and no such action shall constitute a termination of this Agreement; 

		
	13.2.3.
	require Customer to deliver the Equipment to a location designated by NACR or its assignee in the country where such item is located in the same condition as when originally delivered to Customer’s site, reasonable wear and tear excepted, at no cost to NACR or its assignee;

13.2.4 declare the Termination Amount (as calculated by NACR or its assignee as of the date of the Event of Default) due and payable as liquidated damages for loss of a bargain and not as a penalty and in lieu of any further Total Minimum Monthly Fees under this Agreement; 

		
	13.2.4.
	proceed by court action to enforce performance by Customer of obligations under this Agreement and/or to recover all damages and expenses incurred by NACR or its assignee by reason of any Event of Default; 

		
	13.2.5.
	terminate any other agreement that NACR or its assignee may have with Customer; or

		
	13.2.6.
	exercise any other right or remedy available to NACR and its assignee at law or in equity.

These remedies are cumulative of every other right or remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise, and may be enforced concurrently therewith or from time to time. Customer will reimburse NACR and/or its assignee for all costs of collection, including but not limited to reasonable attorneys fees, incurred by NACR and/or its assignee in any action to enforce its rights under this Agreement.

14.    RETURN OF EQUIPMENT.

Customer will not make any alterations, additions, or replacements to the Equipment without the prior written consent of NACR or its assignee.  All  alterations, additions and replacements will become part of the Equipment and the property of NACR or its assignee, at no cost or expense to NACR or its assignee.  NACR or its assignee may inspect the Equipment upon reasonable advance notice to Customer.  Unless Customer and NACR enter into a separate agreement to purchase the Equipment, upon expiration of this Agreement, Customer will immediately deliver the Equipment to NACR or its assignee in good condition and repair, except for ordinary wear and tear, to the location designated by NACR or its assignee. Customer's obligation to pay the Total Minimum Monthly Fee will continue until the Equipment is returned to NACR's designated return location.  Customer will pay all expenses for deinstalling, crating, and shipping the Equipment, and insure the Equipment for its full replacement value during shipping. Unless NACR or its assignee requests return to either of them, Customer must retain physical possession of the Equipment through the end of the Initial Term or any Renewal Term.

15.    END OF TERM.

Customer must give NACR or its assignee prior written notice of at least ninety (90) days before the end of the Initial Term or any Renewal Term that Customer will either purchase the Equipment or return the Equipment to NACR or its assignee. If Customer does not give NACR or its assignee such written notice or, having given such notice, if Customer does not purchase or deliver the Equipment in accordance with the terms of this Agreement, this Agreement will automatically renew for an additional twelve (12) months (the "Renewal Term") and thereafter for successive one month terms unless and until Customer gives NACR or its assignee the required 30 day notice and either purchase or deliver the Equipment to NACR or its assignee. Each month during such Renewal Term(s) the Total Minimum Monthly Fee will remain the same. NACR or its assignee may cancel an automatic Renewal Term by sending Customer ten (10) days prior written notice.  

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15.1.    If this Agreement is terminated before the end of the Initial Term (or, if the contemplated Term is for a period longer than the  Minimum Number of Periods, before such Minimum Number of Periods expires), Customer shall pay NACR or its assignee, the Termination Amount.

15.2.    If Customer elects to, but does not return all of the Equipment (or pay the applicable purchase price for the Equipment) within thirty (30) days after the acceleration of the Total Minimum Monthly Fees or the termination of this Agreement (whether at the originally anticipated end of Term or earlier termination thereof), Customer shall permit NACR or its assignee access to Customer’s premises for the purpose of taking possession of the Equipment at Customer’s expense.

		
	16.
	SERVICES AND TIMING.

Services not specifically itemized in an SOW or Order Form are not provided.  CUSTOMER IS SOLELY RESPONSIBLE FOR SYSTEM BACK-UP PRIOR TO COMMENCEMENT OF SERVICES.

		
	17.
	MAINTENANCE SERVICES.

		
	a.
	ORDER FORM; PROVISION AND SCOPE OF MAINTENANCE SERVICES.

		
	i.
	Order Form and Provision of Maintenance Services.  NACR will provide the Maintenance Services for Supported Products (as hereinafter defined) as described further in this Agreement and in the pertinent SOW.  In the event of a conflict between the terms and provisions of the SOW and the terms and provisions of this Agreement, the terms and provisions of this Agreement will control.  “Supported Products” are the Equipment as identified in the SOW  

		
	ii.
	Monitoring.  NACR may electronically monitor Supported Products for the following purposes:  (i) to perform and analyze diagnostics from a remote location and to take corrective actions, if necessary; (ii) to determine system configuration and applicable charges; (iii) to verify compliance with applicable software license terms and restrictions; (iv) to assess Customer needs for additional products and/or Maintenance Services; and (v) as otherwise provided in the SOW.

		
	iii.
	Error Correction.  Some Maintenance Services options may include correction of Errors.  An “Error” means a failure of a Supported Product to conform in all material respects to the manufacturer’s specifications that were applicable when the Supported Product was originally purchased or originally licensed, as the case may be.

		
	iv.
	Help Line Support.  Where the Maintenance Services include help line support, NACR will provide such help line support (e.g., service hours and target response intervals) in accordance with that which is indicated in the SOW.

		
	v.
	Updates.  NACR will implement Updates as the manufacturer makes such Updates available to NACR.  An “Update” is a change in software that typically provides maintenance correction only.  

		
	vi.
	End of Support.  NACR may discontinue or limit the scope of Maintenance Services for Supported Products that the manufacturer of the respective Supported Product has declared “end of life,” “end of service,” “end of support,” “manufacture discontinue,” or any similar designation (“End of Support”).  End of Support will be effective as of the date indicated in the End of Support notice.  If Maintenance Services are discontinued for a Supported Product, the Supported Product will be removed from the Order Form and the Fees will be adjusted accordingly.  For certain Supported Products subject to End of Support, NACR may continue to offer a limited set of Maintenance Services (“Extended Support”).  Where NACR chooses to provide such Extended Support, the description of such Extended Support and the Fees associated therewith will be available at the time of NACR's notice.  These notices will communicate information such as Extended Support eligibility, Extended Support alerts related to parts shortages, and end of Maintenance Services (including Extended Support) eligibility.

		
	vii.
	Replacement Hardware.  Hardware that NACR will provide as part of the Maintenance Services (“Replacement Hardware”) may be new, factory reconditioned, refurbished, re-manufactured, or functionally equivalent.  Replacement Hardware, if not new, will be warranted the same as new hardware and will be equivalent to new in its performance.  Replacement Hardware will be furnished only on an exchange basis.  Returned hardware that has been replaced by NACR will become NACR’s property.  NACR represents and warrants that all Replacement Hardware will be free of defects in design, materials, and workmanship.  

		
	viii.
	Added Products.  If Customer acquires additional products of the same type and manufacturer(s) as the existing Supported Products (“Added Products”) and locates such Added Products with existing Supported Products, the Added Products will be covered under Maintenance Services automatically at NACR’s then current fees as of the date on which the Added Products are first co-located with the Supported Products and for the remainder of the Term of the SOW.  Added Products purchased from a party other than NACR are subject to certification by NACR at NACR’s then current 

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certification rates.  If an Added Product fails certification, NACR may choose not to add such Added Product as a Supported Product.
		
	ix.
	General Limitations.  Unless the SOW provides otherwise, NACR will provide Maintenance Services for software for only the unaltered current release of such software and the prior release of such software.  The following items are included in the Maintenance Services only if the SOW specifically includes them: (i) support of user-defined applications; (ii) support of Supported Products that have been modified by a party other than NACR (except for installation of standard, self-installed Updates provided by the manufacturer); (iii) making corrections to user-defined reports; (iv) data recovery services; (v) services associated with relocation of Supported Products; (vi) correction of Errors arising from causes external to the Supported Products (such as power failures or power surges); (vii) Maintenance Services for Supported Products that have been misused, used in breach of the terms and provisions of their respective license, improperly installed or configured, or that have had their serial numbers altered, defaced, or deleted; and (viii) correction of Errors, the cause of which occurred prior to the date of commencement of the pertinent Order Form.

		
	x.
	SOFTWARE LICENSE.  Where the Maintenance Services include providing patches, Updates, or feature upgrades for Supported Products (“New Software”), New Software will be provided subject to the license grant and restrictions contained in the original agreement under which Customer licensed the original software for which the patch, Update, or feature upgrade is provided.  Where there is no existing license for the original software, New Software will be provided subject to the manufacturer’s then current license terms and restrictions for the New Software.  New Software may include components provided by third party suppliers that are subject to their own end user license agreements.  Customer may install and use these components in accordance with the terms and conditions of the end user license agreement accompanying such components, whether the terms and conditions of the end user license be in “shrinkwrap,” “clickwrap,” or some other form.

		
	xi.
	

		
	18.
	MISCELLANEOUS. 

		
	18.1
	Merger - This Agreement constitutes the entire agreement between NACR and Customer with respect to the subject matter described herein, superseding all prior and contemporaneous correspondence and understandings between the Parties, whether written or verbal.    No provision of this Agreement shall be deemed waived, amended, or modified by either Party unless such waiver, amendment, or modification is in writing that is signed by the Party against whom enforcement is sought. 

		
	18.2
	Assignment - 

		
	(i)
	Except as set forth in subparagraph (ii) below, this Agreement shall not be assignable by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld; provided, however, that in any assignment of this Agreement, both the assignor and the assignee are jointly and severally liable under this Agreement for any outstanding obligations of the assignor that are due as of the date of the assignment. 

 
(ii) Notwithstanding the foregoing, NACR shall have the unqualified right without notice to or the consent of Customer (i) to assign, pledge, transfer or otherwise convey any or all of NACR’s right, title and interest in and to the Equipment but none of its obligations; and (ii) to assign its rights to receive payment of all or any portion of the Total Minimum Monthly Fees due and payable under the terms of this Agreement.   For the avoidance of doubt, this subparagraph (ii) does not permit NACR to assign NACR’s obligations under the Agreement without the prior written consent of Customer. This paragraph only applies to NACR’s right, title, and interest to the Equipment, and NACR’s right to receive and collect any payments due and owing under the terms of this Agreement.  Customer acknowledges and agrees that Customer shall not assert against any assignee of NACR any claim or defense Customer may have against NACR.

		
	18.3
	Notices - All notices issued under the terms and provisions of this Agreement shall be in writing and shall be delivered in person, sent by facsimile, sent by overnight courier, or sent by certified U.S. Mail, postage prepaid, to the address of the other Party as set forth in this Agreement or to such other address as a Party shall designate by like notice.  In addition, copies of all notices to NACR shall be delivered to  Mark L. Geier, General Counsel, North American Communications Resource, Inc., 3344 Highway 149, Eagan, MN 55121.

		
	18.4
	Acknowledgment and Authority - By execution hereof, the signer hereby certifies that he/she has read this Agreement and these terms, understands them, and agrees to all terms and provisions stated 

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herein.  In addition, NACR and Customer represent and warrant to each other that each respective Party has the full right, power, and authority to execute this Agreement.

		
	18.5
	Publicity - Neither Party shall use the name(s), trademark(s), or trade name(s), whether registered or not, of the other Party in publicity releases or advertising or in any other manner without the prior written consent of such other Party. Each Party agrees that it will not, without the prior written consent of the other Party, make any public statement regarding this Agreement, any of its provisions, or the fact that this Agreement exists.

		
	18.6
	Independent Contractors – The Parties acknowledge that Customer is a Party independent from NACR and that nothing in this Agreement will be construed or deemed to create a relationship of employer and employee, principal and agent, or any relationship other than that of independent entities contracting with each other solely for the purpose of carrying out the terms and provisions of this Agreement.

		
	18.7
	Waiver - If either Party fails to enforce any right or remedy available under this Agreement, that failure shall not be construed as a waiver of any right or remedy with respect to any other breach or failure by the other Party.

		
	18.8
	Force Majeure – NACR shall not be liable for any loss, failure, or delay in furnishing Services resulting from any of the following:  fires; explosions; floods; storms; acts of God; governmental acts, orders, or regulations; hostilities; civil disturbances; strikes; labor difficulties; machinery breakdowns; transportation contingencies; difficulty in obtaining parts, supplies, or shipping facilities; delays of carriers; or any other cause beyond the control of NACR.  If a Force Majeure event prevents NACR from providing Services for a period of seventy-two (72) or more consecutive hours in whole or in part, Customer may thereafter, upon notice to NACR, terminate the affected Services with no penalty or, may, at its discretion, obtain substitute service from an alternate vendor with no penalty or further obligation to NACR.

		
	18.9
	Title and Risk of Loss; Insurance – NACR will retain all title and ownership to the Equipment unless Customer and NACR agree that Customer will purchase the Equipment in accordance with this Agreement, in which case title will pass to Customer upon full payment of the fair market value of the Equipment.  Customer is responsible for any loss, theft or destruction of, or damage to the Equipment (collectively “Loss”) to Equipment located on Customer premises from any cause at all, whether or not insured, until it is delivered to NACR or its assignee at the end of this Agreement. Customer is required to make all Total Minimum Monthly Fees even if there is a Loss. Customer must notify NACR or its assignee in writing immediately of any Loss. Then, at NACR’s or its assignee’s option, Customer will either (a) repair the Equipment so that it is in good condition and working order, eligible for any manufacturer’s certification, or (b) pay the Termination Amount. 

Customer is responsible for installing and keeping the Equipment in good working order. Except for ordinary wear and tear, Customer is responsible for protecting the Equipment located on Customer’s premises from damage and loss of any kind. If the Equipment is damaged or lost, Customer agrees to continue to pay the amounts due and to become due hereunder without setoff or defense. During the term of this  Agreement, Customer agrees that it will (1) insure the Equipment against all loss or damage naming  NACR and its assignee as loss payee; (2) obtain liability and third party property damage insurance naming NACR and its assignee as an  additional  insured;  and  (3)  deliver  satisfactory  evidence  of  such  coverage  with  carriers,  policy  forms and amounts acceptable to NACR or its assignee. All policies must provide that NACR or its assignee be given thirty (30) days written notice of any material change or cancellation. Customer agrees to consent to the filing of financing statements, public notice or other records by the owner of the Equipment to give notice of its interests in the Equipment.

		
	18.10
	Software License – Customer understands that NACR licenses software from a third party to provide a portion of the Managed Services. The terms and provisions of the End User License Agreement (“EULA”) applicable to such third party software are attached hereto as Attachment A and are hereby incorporated herein by this reference and Customer agrees to the terms and conditions of such EULA. 

		
	18.11
	    Indemnity - Customer is responsible for any personal injury, death or property damage (collectively “Claims”), whether based on a theory of strict liability or otherwise caused by or related to 

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or in any manner arising from the Equipment. Customer agrees to reimburse NACR or its assignee for and if NACR or its assignee requests, to defend NACR or its assignee against, any Claims, except Claims caused by NACR’s or its assignee’s willful misconduct.  Customer agrees that its obligations under this section shall survive the termination of this Agreement for Claims arising during the term of this Agreement.

		
	18.12
	Credit Information -  CUSTOMER AUTHORIZES NACR OR ITS ASSIGNEE  TO  OBTAIN  CREDIT  BUREAU  REPORTS,  AND  MAKE  OTHER  CREDIT   INQUIRIES THAT NACR OR ITS ASSIGNEE DETERMINE ARE NECESSARY.  Customer agrees to provide copies of its balance sheet, income statement and other financial reports as NACR or its assignee may reasonably request.

		
	18.13
	Severability – In the event that any term or provision of this Agreement is held to be illegal, unenforceable, or invalid, the remaining terms and provisions hereof shall remain in full force and effect.

		
	18.14
	Survival of Terms – Notwithstanding any termination or expiration of this Agreement, all rights and remedies available to the Parties and all terms and provisions of this Agreement that are not performed or cannot be performed during the term of this Agreement shall survive the termination or expiration of this Agreement.

		
	18.15
	Governing Law – The laws of the State of New York (including, but not limited to, the Uniform Commercial Code as adopted) apply to all Services and/or Equipment provided under the terms and provisions of this Agreement, without reference to such jurisdiction’s conflicts of law principles.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and do each hereby warrant and represent that their respective signatory whose signature appears below has been and is on the date of this Agreement duly authorized by all necessary and appropriate corporate action to execute this Agreement.

	
					
	SELLER:
	North American Communications Resource, Inc.
	 
	CUSTOMER:
	Bridgepoint Education, Inc.

	BY:
	Scott Ford
	 
	BY:
	Chris Henn

	SIGNATURE:
	/s/ Scott Ford
	 
	SIGNATURE:
	/s/ Chris Henn

	TITLE:
	VP
	 
	TITLE:
	COO

	DATE:
	12/10/2015
	 
	DATE:
	12/10/15

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Attachment A

Customer understands that NACR licenses software from a third party to provide the Service Desk, Proactive Monitoring, and Incident Management elements (“Service”) of the Managed Services and this EULA shall apply only to those specific elements. 

A.    LIMITATION OF LIABILITY.  Customer acknowledges that Vendor’s licensor has no control over how a foreign administration or third party carrier establishes its rules and conditions pertaining to international telecommunications services and acknowledges that any inability or failure by Vendor’s licensor to perform any of its obligations hereunder as a result of such rules and conditions shall be excused.  Under no circumstances and under no legal theory, whether in contract, tort (including negligence), strict liability or any other theory whatsoever, shall Vendor’s licensor be liable for any damages that Customer may suffer from or in connection with Customer’s use of, or inability to use, Vendor’s equipment, or the Services. This limitation includes, but is not limited to, damages resulting from loss or theft of data; transmission delays or failures; service interruptions; unauthorized access or damage to records, software programs, or other information or property; loss of profits; loss of goodwill; cost of cover; or any other special, incidental, consequential, direct, indirect, or punitive damages, however caused.  This limitation will apply even if Vendor’s licensor has been advised of, or is aware of, the possibility of such damages.  Because some states or other jurisdictions may not allow the exclusion of certain warranties or certain forms of liability, some or all of the exclusions set forth in this EULA may not apply.  If any of such exclusions are not allowed under the laws of a particular state or other jurisdiction for any reason, then Vendor’s licensor’s maximum liability for any type of damages with respect to Vendor’s licensor’s network, equipment, or Services shall be limited to the amount of the monthly service charges paid by Customer to Vendor for the Services hereunder, for the twelve (12)-month period prior to the occurrence of the event giving rise to such liability.  Such limit shall apply to the aggregate of all claims with regard to such Services.  Vendor’s licensor does not and cannot control the quality of other parties’ networks to which Vendor or its licensor must interconnect.  Therefore, Vendor’s licensor disclaims any and all liability that may arise from the performance, including failure, of other parties’ networks. In no event shall Vendor’s licensor be liable for the fraudulent or illegal use of the Services by any of Customer’s officers, employees, agents, clients, or any other person using the Services through Customer.  

B.    CERTAIN RULES AND LIMITATION OF USE. Customer agrees to comply at all times with any and all applicable local, state, and federal law, or the law of any country that may assert jurisdiction over the activity involved.  Any content, material, message, or data made available or transmitted through the Service, (regardless of where it is sent, viewed, received, or retrieved) that is in violation of any applicable law or regulation is strictly prohibited.  Through the implementation of its own internal use policy and procedure, Customer shall use its best efforts to safeguard the Services provided hereunder to prevent use of the Services (i) to breach a computer security system without the consent of the owner, or to gain access to a system (protected or otherwise) without the consent of its owner; (ii) to intercept or cause the interception of, or to disclose, electronic communications, including e-mails; (iii) to post or transmit data that is threatening, obscene, indecent, or defamatory; (iv) to post or transmit any data that violates export control laws; or (v) to commit fraud or any other illegal activity. Furthermore, under no circumstances will Customer take any action that could result in any harm or damage to (a) Vendor’s licensor’s network; (b) any other network(s); (c) Vendor’s licensor’s premises; (d) Vendor’s or its licensor’s equipment or software; or (e) any other customer of either Vendor or licensor.  In no event shall Vendor’s licensor be responsible for either the misappropriation or illegal use of the Services by Customer.  Customer must, at all times, conform to Vendor’s licensor’s Certain Rules and Limitations of Use (“Rules”), which are set forth above as well as the Software Use Restrictions which are set forth below. It is important that Customer review these Rules regularly to ensure that it complies with them.  If, for any reason, Vendor or its licensor learns of or suspects inappropriate or illegal use of Vendor’s or its licensor’s facilities, network, Service, or other networks accessed through Vendor’s or its licensor’s network, or any other violation of the Rules, then Customer agrees that it will cooperate in any resulting investigation by Vendor or the appropriate authorities. If any inappropriate or illegal use is found, and if Customer fails to cooperate with any investigation of such use, or if Vendor’s licensor, in its sole discretion, deems such action necessary to prevent imminent harm to the network or facilities of Vendor’s licensor or any third party or disruption to Vendor’s or its licensor’s services, Vendor’s licensor may require Vendor to immediately suspend or terminate the Service.  Furthermore, upon written notice to Customer, Vendor’s licensor may modify or suspend the Service, as necessary, to comply with any law or regulation, as reasonably determined by Vendor’s licensor.  Customer, on behalf of itself, its affiliates, successors, assigns, officers, directors, employees, and agents, agrees to indemnify, defend, and hold harmless Vendor’s licensor, successors, assigns, officers, directors, employees, and agents (“Vendor Indemnified Parties”) from and against any and all liabilities, losses, expenses and claims for personal injury or property damage arising from or relating to (i) any content used or transmitted by Customer or any users over the Services made against any of the Vendor Indemnified Parties by any users taking through Customer, or (ii) Customer’s or any such user’s negligent acts or omissions, willful misconduct or breach of any of Customer’s representations or obligations under this EULA. 

C.    SOFTWARE LICENSE; SOFTWARE USE RESTRICTIONS; NO RESALE; ALL RIGHTS RESERVED. Vendor’s licensor grants to Customer a non-licensable, non-exclusive, and non-transferable license to use the software as a Service provided for under this EULA. Customer shall not, in any way, re-sell, license, or allow any third party to use the Service 

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and its software without receiving Vendor’s licensor’s prior written consent.  Except for the limited license rights granted in this Section C, Vendor’s licensor reserves all rights in the software and the Services, and any modifications made thereto, including all title, ownership rights, intellectual property rights, trademark rights, copyrights, and software rights (“Proprietary Rights”), and it shall have the exclusive right to protect and enforce its Proprietary Rights in its products and Services. In furtherance thereof, to the fullest extent possible under applicable law, Customer agrees that it will not (i) make any copies or duplicates of any software without the prior written consent of Vendor’s licensor; (ii) disassemble, reverse assemble, decompile, reverse engineer, or otherwise attempt to decipher or reconstruct any source code (or the underlying ideas, algorithms, structure, or organization) from the software; (iii) modify or create any derivative works of the software (including, without limitation, translations, transformations, adaptations, or other recast or altered version); (iv) use, copy, sell, lease, sub-lease, rent, loan, assign, convey, or otherwise transfer the software, except as expressly authorized under this EULA; (v) distribute, disclose, or allow use of the software, in any format, through any time-sharing service, service bureau, network, or by any other means, to or by any third parties; (vi) violate any obligations of the Confidentiality provisions contained below; (vii) delete, alter, add to, or fail to reproduce in and on any product, Service, or software any trademark or copyright or other notices appearing in or on any copy, media, or package materials provided by Vendor’s licensor directly or through Vendor; or (viii) permit or encourage any third party to do any of the foregoing.  In the event that Customer breaches any of the software license restrictions and limitations set forth above, Vendor’s licensor may provide written notice to Customer directly or through Vendor that if within ten (10) business days of Customer’s receipt of a reasonably detailed written request to cure said breach, Customer fails to comply and cure said breach, then Vendor’s licensor may terminate, effective immediately, the software license granted hereunder, and shall be entitled to exercise all available and permitted rights hereunder.  Upon such termination, Customer shall immediately pay all outstanding licensing and Service fees and termination charges, and it shall cease use of the software and Services.  Vendor’s licensor shall have the right to monitor Customer locations to confirm compliance with the foregoing and to ensure that Customer is not using the software and/or Services in excess of the quantities authorized, or at locations other than those authorized.  In the event such monitoring determines that Customer is using software and/or Services in excess of the quantities authorized, Vendor and/or its licensor may bill Customer, and Customer will be required to pay, applicable charges for the excess quantities (which may be billed retroactively to the time of first use as reasonably determined by Vendor and/or its licensor).  In the event that such monitoring determines that Customer is using software and/or Services at locations other than those authorized, Vendor and/or its licensor may require Customer to immediately cease such use or (at Vendor’s and/or its licensor’s option) to execute a proper order for Services at such location and to pay any applicable charges arising therefrom (which may include retroactive charges to the time of first use as reasonably determined by Vendor and/or its licensor).   

D.    CONFIDENTIALITY.  Vendor and Customer shall maintain the confidentiality of all information or data of any nature (“Information”) provided to it by the other party hereto, provided that such Information contains a conspicuous marking identifying it as “Confidential” or “Proprietary” or is inherently of a confidential nature (i.e., customer, customer pricing, or cost data) (“Confidential Information”).  For purposes of this Section, this EULA shall be considered “Confidential Information”.  Vendor and Customer shall use the same efforts (but in no case less than reasonable efforts) to protect the Information it receives hereunder as it accords to its own Information.  The above requirements shall not apply to Confidential Information which is already in the possession of the receiving party through no breach of an obligation of confidentiality to the disclosing party or any third party; is already publicly available through no breach of this EULA; or has been previously independently developed and documented by the receiving party.  This EULA shall not prevent any disclosure of Confidential Information pursuant to applicable law or regulation, provided that prior to making such disclosure, the receiving party shall use reasonable efforts to notify the disclosing party of this required disclosure.  Vendor and Customer acknowledge that its breach or threatened breach of this Section may cause the disclosing party irreparable harm, which would not be adequately compensated by monetary damages.  Accordingly, in the event of any such breach or threatened breach, the receiving party agrees that equitable relief, including temporary or permanent injunctions, is an available remedy in addition to any legal remedies to which the disclosing party may be entitled.  At the request of the disclosing party at any time or from time to time, the receiving party shall, as promptly as practicable and in all cases within thirty (30) days of such request, deliver to the disclosing party all proprietary information of the disclosing party then in the receiving party’s possession or under the receiving party’s control or, in lieu thereof, receiving party may destroy all of receiving party’s copies of such proprietary information and certify to the disclosing party in writing that such destruction has been accomplished.

E.    NO WARRANTY. The Service is provided on an "AS IS" basis, and Customer’s use of the Service is at Customer’s own risk.  Vendor’s licensor does not make, and hereby disclaims any and all warranties of any kind, whether express or implied (including, but not limited to, any warranty of fitness for a particular purpose, merchantability, title or non-infringement, or any warranty arising from any course of dealing, usage or trade practice). Without limiting the foregoing, Vendor’s licensor does not warrant that the Service will be uninterrupted, error-free or completely secure.

                                                      Managed Services Agreement 4-6-10 Edition            
Page 13 of 13AMENDED AND RESTATED ALTERNATIVE INVESTMENT

SELLING AGENT AGREEMENT

This Amended and Restated Alternative Investment Selling Agent Agreement (“Agreement”) is dated as of March 3, 2016, by and among each of the limited partnerships listed on Schedule 1 hereto (each, a “Partnership,” and together, the “Partnerships”), Ceres Managed Futures LLC, a Delaware limited liability company (the “General Partner”), and Morgan Stanley Smith Barney LLC, a Delaware limited liability company, currently doing business as Morgan Stanley Wealth Management (“MSSB” or “Placement Agent”).  Partnerships may be added to this Agreement upon the agreement of the General Partner and MSSB, pursuant to the form of joinder attached as Appendix B to this Agreement.  The listing of such partnership on Schedule 1 hereto shall be evidence of such agreement.  This Agreement supersedes all prior agreements between each Partnership, MSSB and the General Partner.

WHEREAS, the offering and sale of units of limited partnership or other interests in the Partnerships (“Interests” or “Units”) in accordance with the terms of each Partnership’s private placement offering memorandum and disclosure document, including any supplements thereto approved by the applicable Partnership (each, a “Memorandum”), each Partnership’s subscription/exchange agreements (the “Subscription Agreements”) and certain other investor materials or supplements approved for use or prepared by each Partnership, including without limitation the summary information contained in certain related marketing materials, all as amended from time to time (collectively, the “Offering Documents”), and each Partnership’s organizational documents (as amended or supplemented from time to time, “Organizational Documents”) (collectively, “Offering Materials”) is exempt from the registration requirements of the Securities Act of 1933, as amended (“Securities Act”), pursuant to Section 4(a)(2) and Rule 506 of Regulation D promulgated thereunder;

WHEREAS, the parties hereto previously entered into an Alternative Investment Selling Agent Agreement, dated as of November 12, 2013, as amended (the “Prior Agreement”) and now wish to amend and restate the Prior Agreement in its entirety;

WHEREAS, the Partnerships desire to retain MSSB as a selling agent and to permit it to serve as an investment advisor to its customers investing in one or more of the Partnerships;

WHEREAS, MSSB (in its capacity as an investment advisor, the “Investment Advisor”; provided, that other than with respect to Sections 1 and 3, references to “Placement Agent” in this Agreement shall be deemed to include the Investment Advisor) is an investment advisor providing investment advisory and discretionary investment management services to its customers and it desires to have the right but not the obligation to promote and market, and to introduce prospective investors to the Partnership(s) subject to the provisions below; and

 

WHEREAS, the Partnership desires to grant such a right to the Investment Advisor.

            NOW, THEREFORE, in consideration of the promises and the mutual agreements hereinafter contained and other good and valuable consideration the value of which is hereby acknowledged, the parties hereto hereby agree as follows:

1.            Appointment of MSSB.

a.          MSSB is hereby appointed as a non-exclusive selling agent of the Partnerships during the term of this Agreement for the purpose of finding eligible investors for Interests through offerings that are exempt from registration under the Securities Act, pursuant to Section 4(a)(2) thereof and Rule 506 of Regulation D promulgated thereunder.

b.          In the case of any Partnership formed after the date of this agreement, Units initially shall be offered at $1,000 per Unit or as otherwise determined by the General Partner, and thereafter shall be offered on a continuous basis as of the first day of each month at the final Net Asset Value per Unit (as defined in each Partnership’s Limited Partnership Agreement) as of the last day of the immediately preceding month.  For all other Partnerships, Units are being offered on a continuous basis as of the first day of each month at the final Net Asset Value per Unit (as defined in each Partnership’s Limited Partnership Agreement) as of the last day of the immediately preceding month.  The General Partner in its sole discretion may terminate at any time the continuous offering period of one or more of the Partnerships and may at any time in its sole discretion, terminate, discontinue or resume the continuous offering of any class of Units in any of the Partnerships.

c.          Subject to the right of the General Partner to reject any subscription in whole or in part at any time prior to acceptance, the General Partner shall accept subscriptions for Units properly made and shall cause proper entries to be made in the books and records of the relevant Partnership.  No certificate evidencing Interests shall be issued to any limited partner, although limited partners shall receive confirmations of purchase from the General Partner in its customary form.  Payment for the Interests shall be made as described in the Offering Documents at such time on such date as may be agreed to by the General Partner.  Payment shall be made against issuance of the Interests in the name of the limited partners.

d.          Subject to the performance by the Partnership(s) and the General Partner of their respective obligations hereunder, Placement Agent hereby accepts such appointment and agrees on the terms and conditions set forth herein to find eligible investors for Interests during the term hereof and to use reasonable efforts to assist the Partnership(s) and the General Partner in communicating with investors that have been introduced to the Partnership(s) by the Placement Agent (each a “Placement Agent Client” and collectively “Placement Agent Clients”) with respect to consent solicitations and limited partner votes and other items requiring actions of the limited partners with respect to the Partnership(s), at the reasonable request of the General Partner.  Placement Agent will have no obligation to offer or sell any Interests.

e.          Subject to the performance by the Partnership(s) and the General Partner of their obligations hereunder, the Investment Advisor hereby agrees on the terms and conditions set forth herein to use such efforts, as it deems appropriate in its sole discretion, to refer its customers for investment in the Interests during the term hereof.  The Investment Advisor will have no obligation to offer or sell any Interests.

f.          Placement Agent or Investment Advisor may, without notice to the Partnership or the General Partner, assign or delegate its rights and obligations to its affiliates, or otherwise retain affiliates to act as sub-selling agents, in connection with the solicitation of investors and

 

2

otherwise to assist Placement Agent or Investment Advisor in performing its obligations under this Agreement to the extent Placement Agent or Investment Advisor deems appropriate, subject to compliance with applicable laws, rules or regulations; provided however, that each such sub-selling agent shall execute a sub-agent agreement substantially in the form of this Agreement.  MSSB may compensate any such sub-selling agent by paying the sub-selling agent from MSSB’s own funds.

2.            Offering and Sale of Interests.

a.          MSSB shall deliver to each person to whom MSSB makes an offer of an Interest, the Offering Documents, as amended as of such time.

b.          MSSB shall not make any offer of Interests on the basis of any communications or documents relating to any of the Partnerships or the Interests, except the Offering Materials, any other documents supplied or prepared by the General Partner on behalf of the Partnerships and delivered to MSSB by the General Partner for use in making an offer of Interests, or any other materials expressly approved for such use by the General Partner in writing (which shall include electronic mail).  Subject to Section 8, the Partnerships and the General Partner shall provide MSSB copies of any Offering Documents for MSSB’s review and approval a commercially reasonable time prior to providing such Offering Documents to any limited partner, which such approval shall not be unreasonably withheld.

c.          The Partnership(s) and the General Partner agree that the Partnership(s) will rely on Rule 506(b) under Regulation D as a safe harbor from registration under Securities Act. The Placement Agent will not use any form of “general solicitation” or “general advertising” (within the meaning of Rule 502(c) of Regulation D under the Securities Act) in making offers of Interests, including any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by general solicitation or advertising.

d.          Placement Agent will not make any offer of Interests on the basis of any communications or documents relating to the Partnership(s) or the Interests, except the Offering Materials, any other documents supplied or prepared by the Partnership(s) or the General Partner and delivered to Placement Agent by the Partnership(s) or the General Partner for use in making an offer of Interests, or any other materials expressly approved for such use by the Partnership(s) or the General Partner.  Notwithstanding the foregoing, the Partnership(s) or the General Partner consent to the delivery of diligence reports that include, inter alia, information provided to and/or accurately derived from information provided by the General Partner, the Partnership(s) or its affiliates to the Placement Agent and are prepared by MSSB, its affiliates or a third party (“Manager Profiles”) to Placement Agent Clients without the review or approval of such Manager Profiles by the Partnership(s) or the General Partner.  The Partnership(s) or the General Partner shall not provide to any Placement Agent Client any Offering Materials that have not been reviewed and approved by Placement Agent in writing.

e.          MSSB shall, in accordance with requirements of Regulation D under the Securities Act, reasonably believe immediately prior to making any offer or sale of Interests that any prospective investor solicited by MSSB is an “accredited investor,” as that term is defined in

 

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Rule 501(a) of Regulation D under the Securities Act, and meets such other eligibility criteria as are set forth in the Offering Documents.  The Partnerships shall be responsible for the timely filing with the U.S. Securities and Exchange Commission (“SEC”) of any notices required by Rule 503 of Regulation D under the Securities Act.  MSSB shall only solicit prospective investors in any jurisdiction in compliance with the marketing rules and private placement rules of such jurisdiction.

f.          MSSB represents and warrants that it has policies and procedures reasonably designed to comply with applicable anti-money laundering and anti-terrorist financing laws, rules and regulations.  Additionally, MSSB represents and warrants that it has policies and procedures reasonably designed to ensure that it does not offer or sell investments in the Partnerships, directly or indirectly, to any person, government, organization or entity in violation  of any sanctions program administered by the U.S. Office of Foreign Assets Control.

g.          MSSB represents to the Partnerships as of the date hereof that MSSB is subject to the anti-money laundering regime of the United States and maintains anti-money laundering policies and procedures in compliance with applicable anti-money laundering legislation and regulations, as amended from time to time (the “Anti-Money Laundering Regime”). MSSB’s Anti-Money Laundering Regime includes a Customer Identification Program (“CIP”), which requires the performance of CIP due diligence in accordance with applicable Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “USA PATRIOT Act”) requirements and regulatory guidance.  MSSB represents that it shall be responsible for maintaining and performing anti-money laundering procedures in connection with the onboarding of Placement Agent Clients, which procedures shall, at a minimum, (1) identify and verify all potential investors, (2) require maintenance of records in relation to the verification of the identity of all potential investors and (3) provide for ongoing monitoring of all Placement Agent Clients.

h.          MSSB shall be responsible for ensuring that any activities taken in connection with the sale of Interests in any jurisdiction outside of the United States shall be conducted in compliance with the private placement or other applicable offering rules of such jurisdiction; provided, however, that, the Partnerships and the General Partner agree to coordinate with MSSB in respect of determining the number of offers made to prospective investors in any particular jurisdiction and such other relevant information in respect of offerings of Interests made by any party other than MSSB, which would reasonably be deemed to affect MSSB’s compliance with applicable offering rules.  MSSB shall make no offer or sale of any Interest in any foreign jurisdiction, or to any prospective investor located in any foreign jurisdiction, where there is a prohibition on the sale of securities such as the Interests.

i.          The General Partner shall be responsible for any applicable registration or qualification of the Interests under all applicable laws, rules or regulations of the United States and the states therein.  The General Partner on behalf of the Partnerships acknowledges that MSSB intends to offer the Interests in each state within the United States.  The General Partner, at the applicable Partnership’s expense, shall use reasonable efforts to register or qualify the Interests, if required, in each jurisdiction within the United States that the Interests are offered by MSSB or to make any filings required by applicable law in each jurisdiction within the United States in which the Interests are sold by MSSB.  If the Interests may not be offered in any

 

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particular jurisdiction in the United States, the applicable Partnership and the General Partner shall promptly notify MSSB.

j.          As a condition to the General Partner’s acceptance of a subscription by a Placement Agent Client, each Placement Agent Client will be required to agree to maintain an account with MSSB (each, an “MSSB Client Account”).  MSSB agrees to (i) debit from each MSSB Client Account an amount necessary to satisfy each such Placement Agent Client’s obligation to fund any amount to be paid by the Placement Agent Client with respect to its Interest in the Partnership(s), as and when requested by the Partnership(s) or the General Partner, (ii) to pay or transfer such debited amounts to the Partnership(s) or the General Partner (as provided by the General Partner, except that MSSB shall pay or transfer to itself or any of its affiliates an amount required to pay the upfront placement fee, if any); and (iii) credit or distribute to each MSSB Client Account the amount that is distributed to MSSB by the Partnership(s) or the General Partner in respect of such Placement Agent Client’s investment.  The Partnership(s) and the General Partner agree to pay all distribution and withdrawal/redemption amounts to MSSB for further credit to each MSSB Client Account for which MSSB shall provide the appropriate wire instructions.  For the avoidance of doubt, the foregoing provisions shall not limit any right of the Partnership(s) or the General Partner  to seek payment directly from any Placement Agent Client in the event of the failure of such Placement Agent Client to make any contribution or other payment required pursuant to the Partnership(s)’s Offering Materials and the parties hereto agree that MSSB shall not be liable or responsible, as principal, guarantor or otherwise, to make any payments, cover any default or extend any credit, in the event of any such late payment or non-payment by a Placement Agent Client due to the Partnership(s), the General Partner or to any other party to which such payment may become due.

k.          The Partnerships shall provide a reasonable quantity of copies of the Offering Materials and such other documents as MSSB is required to provide to prospective investors under this Agreement.  If any Offering Materials are amended or supplemented, the General Partner shall promptly notify MSSB, and provide copies of such amendments or supplements in accordance with the preceding sentence.

l.          All subscriptions for Interests submitted by or through MSSB shall be subject to the General Partner’s approval, in its sole discretion.  The General Partner and MSSB agree that the General Partner has the ultimate responsibility to determine whether a prospective investor meets all applicable private placement accreditation, minimum investment, and other regulatory requirements necessary to invest in a Partnership, provided, however, it is acknowledged by MSSB that the General Partner shall reasonably rely upon due diligence conducted by MSSB on each prospective investor.

3.            Fees and Expenses. 

a.          Each Partnership listed in Schedule 2 shall pay MSSB a monthly ongoing selling agent fee equal to the amount described for each Partnership in Schedule 2 (“Ongoing Selling Agent Fee”) relating to each Placement Agent Client who is not a Consulting Client (as defined below)(each a “Non-Consulting Client”).  Net Assets shall have the meaning set forth in the respective Partnership’s Limited Partnership Agreement.  The fee shall be payable monthly beginning with the first month that a Unit is issued.

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b.          Notwithstanding anything to the contrary in Section 3(a) above, Placement Agent, the Partnership(s), and the General Partner agree that Placement Agent shall not be entitled to receive an  Ongoing Selling Agent Fee with respect to Placement Agent Clients that participate in MSSB’s advisory program (each a “Consulting Client”) and such Consulting Clients shall be entitled to invest in the Partnership(s) on the following terms:

(i)          The Partnership(s) and the General Partner acknowledge that each Consulting Client shall be permitted to acquire lower fee, Class Z Units (as defined in the applicable Partnership’s Memorandum).

(ii)          Neither the Partnership(s) nor the General Partner shall pay any compensation to MSSB in respect of any Consulting Client and MSSB shall not charge Ongoing Selling Agent Fee with respect to such Consulting Clients.

(iii)          If a Consulting Client ceases to participate in an MSSB advisory program, such Consulting Client shall become a Non-Consulting Client if it remains a limited partner.  The Units of such Non-Consulting Client will, beginning on the first day of the month following the date that such Consulting Client becomes a Non-Consulting Client, (i) convert to the appropriate class of Units based on the aggregate capital contributions made by such limited partner, adjusted for additional subscriptions, redemptions and exchanges and (ii) become subject to the applicable Ongoing Selling Agent Fee.  While any such limited partner will have the right to redeem its Units, such redemption rights may be limited, requiring such limited partner to bear the Ongoing Selling Agent Fee in respect of any such Units for an extended period of time. MSSB shall notify the General Partner that such Consulting Client has become a Non-Consulting Client and be entitled to an Ongoing Selling Agent Fee for such Non-Consulting Client thereafter pursuant to the terms hereof. Notwithstanding the foregoing, if any such non-Consulting Client is an employee of Placement Agent or an affiliate and remains a limited partner, such employee may retain ownership of such Class Z Units (as defined in the applicable Partnership’s Memorandum) and shall not be subject to the Ongoing Selling Agent Fee.

c.          Placement Agent will designate each prospective investor it introduces to the Partnership(s) as either a Consulting Client or a Non-Consulting Client.  Each Partnership and the General Partner acknowledges that each Consulting Client shall be permitted to acquire Class Z Units (as defined in the applicable Partnership’s Memorandum.

d.          MSSB may, without notice, allocate all or a portion of its fees to its affiliates and may also allocate all or a portion of its fees to non-affiliates upon written notice to the General Partner.  The Partnerships and the General Partner agree that MSSB, including any applicable affiliate of MSSB, reserves the sole right to reduce or waive the Ongoing Selling Agent Fee in whole or in part.  The General Partner agrees to reduce or waive the Ongoing Selling Agent Fee described herein for any limited partner in accordance with written instructions provided by MSSB to the General Partner.  MSSB agrees that neither the Partnerships nor the General Partner shall have any additional responsibility or liability to MSSB or any other party for complying with the written instructions provided by MSSB relating to this Section 3(c) beyond making payments in accordance with such written instructions.

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e.          If MSSB becomes aware that a limited partner is no longer a client of MSSB, it shall promptly inform the General Partner and if the General Partner becomes aware that a limited partner is no longer a client of MSSB, the General Partner shall promptly notify MSSB.  Once a limited partner is no longer a client of MSSB, the Partnership will no longer be obligated to pay the Ongoing Selling Agent Fee attributable to such limited partner.  Notwithstanding the foregoing, a limited partner may be a client of MSSB and another broker-dealer at the same time, and the fact that such limited partner is a client of another broker-dealer may not, by itself, serve as evidence that such limited partner is not a client of MSSB.

f.          The Partnerships and MSSB shall each bear their own expenses in connection with the solicitation of prospective investors, including expenses of preparing, reproducing, mailing and/or delivering offering and sales materials.

4.            Representations, Warranties and Agreements of the Partnerships and the General Partner.  Each Partnership and the General Partner (for purposes of this Section 4 only, each a “Party”) severally, and not jointly, represent and warrant to MSSB and agree with MSSB as follows:

a.          It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation or organization, and it has full power and authority under applicable laws, rules or regulations to conduct its business as contemplated by the Offering Materials.

b.          The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of each Party, and upon the execution and delivery hereof, this Agreement shall constitute a valid, binding and enforceable obligation of such Party.

c.          The execution, delivery and performance of this Agreement, the incurrence of the obligations set forth herein and the consummation of the transactions contemplated herein and in the Offering Materials, including the issuance and sale of the Interests, shall not constitute a breach of or default under any agreement or instrument by which such Party is bound, or to which any of its assets is subject, or any order, rule or regulation applicable to it of any court or any governmental body or administrative agency having jurisdiction over it.

d.          There is not pending or, to the best knowledge of such Party, threatened any action, suit or proceeding before or by any court or other governmental body to which such Party is a party, or to which any of its assets is subject, which might reasonably be expected to result in any material adverse change in the condition, financial or otherwise, business or prospects of such Party.  Such Party has not received any notice of an investigation regarding non-compliance by such Party with applicable laws, rules or regulations.

e.          The Offering Materials, as of the date hereof and at any subsequent time during the term of this Agreement, do not and shall not contain any untrue statement of a material fact, or omit to state any material fact required to be stated therein or necessary in order to make the statements contained therein, in light of the circumstances under which they are made, not misleading.  If any statement were to become untrue or if an omission of a material fact is discovered, the General Partner shall promptly supplement the Offering Materials to remove such untrue statement or to disclose such material fact.

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f.          At all times during which MSSB client(s) own(s) an Interest, the General Partner shall, as soon as commercially practical, notify and update in writing such MSSB client(s) of any material changes or developments relating to the applicable Partnership or their Interests.

g.          The Interests have been duly authorized for issuance and sale, and, when issued and subscribed for in the amounts and for the consideration described in the Offering Materials, shall be entitled to the rights and subject to the restrictions and conditions contained in the Organizational Documents; no limited partner shall be personally liable for the debts of and claims against the Partnership in which it is invested by the mere reason of being a limited partner; and all necessary action required to be taken for authorization, issue and sale of the Interests has been validly and sufficiently taken.

h.          It is not necessary in connection with the offer, sale and delivery of the Interests in the manner contemplated by this Agreement to register the Interests under the Securities Act or, to the best knowledge of such Party, the laws of any other jurisdiction where it is being offered.  Each Party shall conduct itself, and ensure that its agents conduct themselves, in a manner consistent with the exemption from registration under Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder and, without limitation, shall not use, or permit any other person to use, any form of prohibited solicitation or advertising in making offers of Interests.

i.          The General Partner will promptly notify MSSB in the event that a Partnership is no longer able to rely on the private placement exemption under Rule 506(d).

j.          The General Partner is registered as a commodity pool operator under the Commodity Exchange Act with respect to the Partnerships.

k.          Each Partnership and the General Partner each represent that it is aware of the United States and applicable laws and regulations relating to currency reporting and money laundering, including, but not limited to (i) the United States Bank Secrecy Act and implementing regulations; and (ii) the USA PATRIOT Act and implementing regulations. To ensure compliance with those laws, rules and regulations, in addition to periodic monitoring of MSSB’s Anti-Money Laundering Regime, the General Partner for itself and on behalf of the Partnerships, represents that for as long as the General Partner is a subsidiary of Morgan Stanley (x) it will comply with the Morgan Stanley Global Money Laundering Prevention Policy, the Morgan Stanley Global AML Policy and Compliance Program and the Morgan Stanley Investment Management Anti-Money Laundering Policy.

l.          If, at any time, the assets of any Partnership are determined by the General Partner’s legal counsel to constitute "plan assets" within the meaning of the U.S. Department of Labor’s (the “Department”) “plan asset” regulations, Section 2510.3-101, as modified by Section 3(42) of the Employee Retirement Income Security Act of 1974 (the “Plan Asset Regulation”)(“ERISA”), the General Partner represents and warrant that at such time, it shall be, and shall remain through the duration of such Partnership for as long as the assets of such Partnership remain “plan assets”, an "investment manager" and a "fiduciary" (as defined in Sections 3(38) and 3(21) of ERISA, respectively).

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m.          The General Partner has sole discretion and ultimate responsibility over the investment model/portfolio of the Partnership.  Accordingly, any decision to invest in a vehicle managed by the Placement Agent or any of its affiliates, or by an entity in which Placement Agent or any of its affiliates owns a material interest, is the General Partner’s alone, and shall be based solely on appropriate independent research and diligence.

n.          Each Party acknowledges that in performing the services contemplated hereby, MSSB shall be entitled to rely upon and assume, without independent verification, the accuracy and completeness of all information that is available from public sources and all information that has been provided to it by, or on behalf of, the Partnerships or the General Partner, and that MSSB has no obligation to verify the accuracy or completeness of any such information and shall have no liability to the Partnerships, the General Partner or any third party for any information contained in the Offering Materials.

o.          The representations and warranties set forth in this Agreement are continuing during the term of this Agreement and each Party agrees to notify MSSB promptly in writing if at any time during the term of this Agreement, any such representation or warranty becomes materially inaccurate or untrue and of the facts related thereto.

p.          Each Party acknowledges that MSSB enters into this Agreement in reliance on the representations, warranties and agreements of the Partnerships and the General Partner contained herein.

5.            Representations, Warranties and Agreements of MSSB.  MSSB represents and warrants to and agrees with, the Partnerships and the General Partner as follows:

a.          MSSB is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and MSSB has full power and authority under applicable laws, rules or regulations to engage in the activities contemplated under this Agreement.

b.          The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of MSSB, and upon the execution and delivery hereof, this Agreement shall constitute a valid, binding and enforceable obligation of MSSB.

c.          The execution, delivery and performance of this Agreement, the incurrence of the obligations set forth herein and the consummation of the transactions contemplated herein shall not constitute a breach of or default under any agreement or instrument by which MSSB is bound, or to which any of its assets is subject, or any order, rule or regulation applicable to it or of any court or any governmental body or administrative agency having jurisdiction over it.

d.          MSSB (or any designee to which it delegates its right and obligations hereunder pursuant to Section 1(f)) has and shall maintain all licenses and registrations necessary under applicable federal and state laws, rules and regulations, including the rules and regulation of any self-regulatory organization with competent jurisdiction, to provide the services required to be provided by MSSB (or such designee) hereunder. To the reasonable knowledge of MSSB, MSSB has not solicited and shall not solicit any offer to buy or offer to sell Interests in any manner that would be inconsistent with applicable laws and regulations, or in any manner that would be inconsistent with the solicitation and advertising limitations of Regulation D under the Securities Act or any state securities laws.  MSSB shall conduct itself and take reasonable measures to ensure that its respective agents conduct themselves, in a manner consistent with (i) the exemption from registration under Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder, including, without limitation the requirements of Regulation D under the Securities Act, and (ii) any applicable state law exemptions from registration.

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e.          MSSB shall furnish to each prospective investor it solicits the most current copy of the applicable Partnership’s Memorandum provided to it by the General Partner prior to that person’s admission as a limited partner.

f.          MSSB shall furnish to the Partnerships a description of all material pending and prior litigation and regulatory actions involving MSSB and its subsidiaries, required to be disclosed in the Memorandums during the term of this Agreement.

g.          MSSB has and maintains policies, procedures, and internal controls that are reasonably designed to ensure that no Covered Person identified in Appendix A subject to disqualification is permitted to participate in any of a Partnership’s offerings pursuant to Rule 506 of Regulation D under the Securities Act (“Rule 506”).  MSSB represents that it has exercised reasonable care, in accordance with section (e) of Rule 506 in making a factual inquiry into whether any Covered Person is the subject of any of the acts enumerated in Rule 506(d)(1)(i) through (viii) or that would cause a Partnership to be unable to rely upon Rule 506 (each a “Disqualifying Event”).  MSSB agrees that each Partnership may disclose any Disqualifying Event involving a Covered Person that occurred prior to September 23, 2013, in accordance with the method of disclosure under Rule 506(e).

h.          The representations and warranties set forth in this Agreement are continuing during the term of this Agreement and MSSB agrees to notify each of the Partnerships and the General Partner promptly in writing if at any time during the term of this Agreement, any such representation or warranty becomes materially inaccurate or untrue and of the facts related thereto.

i.          MSSB acknowledges that each of the Partnerships and the General Partner enter into this Agreement in reliance on the representations, warranties and agreements of MSSB contained herein.

6.            Covenants of the Parties.

a.          MSSB will promptly notify the Partnerships and the General Partner if it becomes aware of any Covered Person who is or becomes the subject of a Disqualifying Event.

b.          MSSB shall, to the extent practicable and reasonable, make available personnel to the General Partner to respond to reasonable queries about its processes directly related to identifying Covered Persons and Disqualifying Events under Rule 506(d) and confirm that the representations made in Section 5(g) are accurate and complete.

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7.            Indemnification.

a.          Except as otherwise provided herein, the General Partner and each Partnership shall jointly and severally indemnify, hold harmless, and defend MSSB, each person who controls MSSB within the meaning of Section 15 of the Securities Act or Section 20(a) of the Securities Exchange Act of 1934, and their respective officers, directors, partners, members, shareholders, employees and agents from and against any losses, claims, damages or liabilities (or actions in respect thereof) (“Covered Claims”) arising out of or relating to (i) the offer or sale of the Interests or the management or affairs of the applicable Partnership; (ii) any untrue statement or alleged untrue statement of material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading in any Offering Materials or in any advertising or promotional material approved, published or provided to MSSB by or on behalf of the applicable Partnership or the General Partner or accurately derived from information approved, published or provided to MSSB by or on behalf of the applicable Partnership (iii) any violation of any law, rule or regulation relating to the registration or qualification of Interests or the applicable Partnership, (iv) any breach by the applicable Partnership or the General Partner of any representation, warranty or agreement contained in this Agreement, (v) any violation of any law, rule or regulation relating to the operation of the applicable Partnership or (vi) any willful misconduct or gross negligence by the applicable Partnership or the General Partner or their respective affiliates in the performance of, or failure to perform, its obligations under this Agreement, except to the extent that any such Covered Claim is caused by breach of this Agreement by MSSB or its affiliates, directors, members, employees, agents and affiliates or the willful misconduct or gross negligence of any of the foregoing in the performance of, or failure to perform, their obligations under this Agreement.  Notwithstanding anything to the contrary contained herein, in no event shall any Partnership be jointly liable on the indemnity set forth in this Section 7(a) with any other Partnership.

b.            MSSB shall indemnify, hold harmless, and defend each of the Partnerships and the General Partner, each person who controls any of the foregoing within the meaning of Section 15 of the Securities Act or Section 20(a) of the Securities Exchange Act of 1934, and their officers, directors, partners, members, shareholders, employees, and agents from and against any Covered Claims arising out of or relating to (i) any breach by MSSB of any representation, warranty or agreement contained in this Agreement, (ii) failure of MSSB to comply with marketing rules or private placement rules in any jurisdiction, (iii) any untrue statement, or alleged untrue statement of a material fact, made by MSSB in connection with MSSB’s placement of the Interests that is not in reliance on or in conformity with the Offering Materials, or (iv) willful misconduct or gross negligence by MSSB in the performance of, or failure to perform, its obligations under this Agreement, except in each case to the extent that any Covered Claim is caused by breach of this Agreement by any of the Partnerships or the General Partner or their officers, directors, partners, members, shareholders, employees, agents and affiliates or the willful misconduct or gross negligence of any of the foregoing in the performance of, or failure to perform, their obligations under this Agreement.

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c.           Promptly after receipt of notice of any claim or complaint or the commencement of any action or proceeding with respect to which an indemnified party is entitled to seek indemnification hereunder, the indemnified party shall notify the indemnifying party in writing of such claim or complaint or the commencement of such action or proceeding.  The indemnifying party shall be entitled to participate at its own expense in the defense or, if it so elects within a reasonable time after receipt of such notice, to assume the defense of any suit so brought, which defense shall be conducted by counsel chosen by it and satisfactory to the indemnified party or parties.  In the event that the indemnifying party elects to assume the defense of any such suit and retain such counsel, the indemnified party or parties shall bear the fees and expenses of any additional counsel thereafter retained by it or them.

d.          If the foregoing indemnification is for any reason unavailable to an indemnified party (other than by reason of the terms thereof), the indemnifying party shall contribute to the Covered Claims that are paid or payable by the indemnified party in such proportion as is appropriate to reflect the relative economic interests of the indemnifying party, on the one hand, and the indemnified party, on the other hand, in the transactions contemplated by this Agreement (whether or not consummated) and any other relevant equitable considerations.  For purposes of this paragraph, the relative interests of the applicable Partnership and the General Partner, on the one hand, and MSSB, on the other hand, in the transactions contemplated by this Agreement, shall be deemed to be in the same proportion as (i) the total proceeds received or contemplated to be received by the applicable Partnership and the General Partner in the transactions contemplated by this Agreement (whether or not any such transaction is consummated) bears to (ii) the fees paid or to be paid to MSSB under the Agreement; provided however, that to the extent permitted by applicable law, in no event shall the applicable Partnership and the General Partner contribute less than the amount necessary to ensure that all indemnified parties, in the aggregate, are not liable in excess of the amount of fees actually received by MSSB pursuant to this Agreement.

e.          The foregoing indemnity shall be in addition to any liabilities that the parties may otherwise have incurred hereunder.

8.            Confidentiality.

a.          Each Partnership and the General Partner hereby acknowledge that they have received or will receive written and/or oral information from Placement Agent that the Placement Agent considers confidential and/or proprietary (such information being referred to in this Section 8 as “MS Confidential Information”).  For the purposes of this Agreement, MS Confidential Information means any information relating to or disclosed by Placement Agent to one or more Partnerships or the General Partner that is confidential or proprietary to Placement Agent, including but not limited to information about Placement Agent Clients.  All such MS Confidential Information has been or will be furnished to the Partnerships or the General Partner subject to the provisions of this Section 8.  The Partnerships and the General Partner agree that they will use, and that they will ensure that all of their employees, officers, directors, representatives and agents and other entities providing services with respect to the Partnerships or the General Partner use, the MS Confidential Information solely in connection with the subscription for Interests by each

 

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Placement Agent Client, the booking of such Interests, communicating with such Placement Agent Clients, the administration of the Partnerships and the performance of their respective roles with respect to the Partnership and the Interests, and for no other purpose whatsoever.  Furthermore, except as otherwise provided herein, the General Partner agrees that it will not disclose or make available, and will ensure that none of its employees, officers, directors, representatives or agents or other entities providing services with respect to a Partnership discloses or makes available, any MS Confidential Information to any person or entity that does not have a need to know such MS Confidential Information in connection with the foregoing.

b.          Notwithstanding the foregoing, Placement Agent acknowledges and agrees that the General Partner, the Partnerships, the Partnership’s administrator and their respective officers or directors may disclose MS Confidential Information or portions thereof (i) to each other; (ii) at the request of or as required by a government, regulatory or tax agency (including any self-regulatory agency) or in connection with an examination of the General Partner, the Partnerships or an affiliate thereof by regulatory examiners; (iii) to its internal or external attorneys or auditors; and (iv) as required by law, regulation or court order (whether by oral question, interrogatory, subpoena, civil or regulatory investigative demand, examination or similar process).  In any of the circumstances mentioned in clauses (ii) or (iv), the General Partner and the Partnerships shall (to the extent permitted by law) give Placement Agent reasonable prior notice of any such disclosure and shall, in any event, advise Placement Agent (to the extent not prohibited by law or regulation) of any such disclosure promptly after it is made.

c.          Placement Agent hereby acknowledges that it has received or will receive written and/or oral information from one or more of the Partnerships and/or the General Partner that the Partnership(s) and/or the General Partner consider confidential and/or proprietary (such information being referred to in this Section 8 as “Partnership Confidential Information”).  For purposes of this Agreement, Partnership Confidential Information means any information relating to or disclosed by the Partnership(s) or the General Partner to Placement Agent that is confidential or proprietary to the General Partner of a Partnership including, but not limited to, information about the Partnership(’s)(s’) or the General Partner’s actual or potential portfolio holdings and investments, investment and/or risk management techniques and the amount of assets under management by the General Partner.  All such Partnership Confidential Information that has been furnished prior to the execution of this Agreement or will be furnished to the Placement Agent is subject to the provisions of this Section 8. Placement Agent agrees that it will use any Partnership Confidential Information solely in connection with its obligations, duties and undertakings pursuant to this Agreement or for the benefit of Placement Agent Clients and for no other purpose whatsoever. Furthermore, except as otherwise provided herein, the Placement Agent agrees that it will not disclose or make available, and will ensure that none of its employees, officers, directors, representatives or agents discloses or makes available, any Partnership Confidential Information to any person or entity that does not have a need to know such Partnership Confidential Information in connection with the foregoing.

d.          Notwithstanding the foregoing, the Partnerships and the General Partner acknowledge and agree that Placement Agent and its affiliates may disclose Partnership

 

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Confidential Information or portions thereof (i) to each other; (ii) at the request of or as required by a government, regulatory or tax agency (including any self-regulatory agency) or in connection with an examination of Placement Agent or affiliate by regulatory examiners; (iii) to its internal or external attorneys or auditors; or (iv) as required by law, regulation or court order (whether by oral question, interrogatory, subpoena, civil or regulatory investigative demand, examination or similar process).  In any of the circumstances mentioned in clauses (ii) or (iv), Placement Agent or the applicable affiliate shall (to the extent permitted by law) give the Partnerships and the General Partner reasonable prior notice of any such disclosure and shall, in any event, advise the Partnerships and the General Partner (to the extent permitted by law) of any such disclosure promptly after it is made.

e.          For purposes of this Agreement, the term MS Confidential Information shall not include information that (i) is or becomes generally available to the public other than as a result of a disclosure in connection with the performance of this Agreement;  or (ii) becomes available to the General Partner or a Partnership on a non-confidential basis from a source other than the Placement Agent any of its representatives; provided, that such source is not bound, to the General Partner’s reasonable knowledge, by a confidentiality agreement with or other legally enforceable obligation of secrecy to or for the benefit of the Placement Agent, or any of its representatives. Notwithstanding the foregoing, this Section 8(e) shall not apply to any MS Confidential Information that is comprised of the personal information of any Placement Agent Client.

f.          For purposes of this Agreement, the term Partnership Confidential Information shall not include information that (i) is or becomes generally available to the public other than as a result of a disclosure in connection with the performance of this Agreement; or (ii) becomes available to the Placement Agent on a non-confidential basis from a source other than the General Partner  or any of its respective representatives; provided, that such source is not bound, to the Placement Agent’s  reasonable knowledge, by a confidentiality agreement with or other legally enforceable obligation of secrecy to or for the benefit of the General Partner, a Partnership, or any of their respective representatives.

g.         In the event of a breach or threatened breach by any party of the provisions of this Section 8 of this Agreement, the parties agree that a remedy at law to the aggrieved party may be inadequate and that the aggrieved party shall be entitled to seek an injunction or another appropriate remedy in equity restraining the breaching party from disclosing or using either the MS Confidential Information or Partnership Confidential Information, as the case may be, in whole or in part. Nothing herein shall be construed as limiting or prohibiting the aggrieved party from pursuing any other remedies in addition to injunctive relief available hereunder for such breach or threatened breach, including the recovery of damages and reasonable attorney fees.

h.         Upon written request or on the expiration or termination of this Agreement, each party shall use commercially reasonable efforts to return to the other parties or destroy MS Confidential Information or Partnership Confidential Information (as appropriate) in its possession or control, provided that each party may retain archival copies of any document

 

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or information that such party is obligated to maintain pursuant to recordkeeping requirements to which it is subject under applicable laws, rules, regulations or internal policies, but for only so long as such records are required to be maintained.

9.            Data Privacy

a.            The Partnerships and the General Partner acknowledge that, as a result of this Agreement, they may receive PII about Placement Agent Clients and Placement Agent employees.  For the purposes of this Agreement, “PII” includes “Nonpublic Personal Information” as that term is defined in Title V of the Gramm-Leach-Bliley Act of 1999 or any successor federal statute, and the rules and regulations thereunder, all as may be amended or supplemented from time to time (“GLBA”) and personally identifiable information and other data protected under any other applicable laws, rule or regulation of any jurisdiction relating to disclosure or use of personal information (“Privacy Laws”), including, without limitation, the name and account number of – and any other personally identifiable information.  The General Partner agrees that it shall not knowingly do or omit to do anything which would cause the Placement Agent or any of its affiliates to be in breach of any Privacy Laws.  The General Partner shall, and shall cause its representatives to, (i) keep PII confidential, use and disclose PII only as necessary for the purchase of Interests in the Partnership for which the PII was disclosed to the General Partner and in accordance with this Agreement, GLBA and Privacy Laws, (ii) implement and maintain an appropriate written information security program, the terms of which shall meet or exceed the requirements for financial institutions under 17 CFR 248.30, if applicable to (A) ensure the security and confidentiality of PII, (B) protect against any threats or hazards to the security or integrity of PII, and (C) prevent unauthorized access to, use of or disclosure of PII.  The Placement Agent reserves the right to review the General Partner’s policies and procedures used to maintain the security and confidentiality of PII and the General Partner shall, and cause its Representatives to, comply with all reasonable requests or directions from the Placement Agent to enable the Placement Agent to verify and/or procure that the General Partner is in full compliance with its obligations under this Agreement in relation to PII.

b.         The General Partner shall promptly notify the Placement Agent (i) of any disclosure or use of any PII by the General Partner or any of their Representatives in breach of this Agreement and (ii) of any disclosure of any PII to the General Partner or their Representatives where the purpose of such disclosure is not known to the General Partner or their Representatives.  In the event that the General Partner learns or has reason to believe that there (i) has been a breach of its security standards, or (ii) is a weakness in the General Partner’s security practices or systems, in each instance irrespective of cause, to the extent such breach or weakness could reasonably be expected to (y) allow unauthorized access to PII or the Partnership’s facilities associated with such PII or (z) adversely impact the facilities the Partnership(s) will promptly give notice of such event to the Placement Agent.

c.          Furthermore, the General Partner acknowledges that upon unauthorized access to or acquisition of PII within the General Partner’s custody or control (a “Security Event”), the law may require that the General Partner notify the individuals whose information was accessed or disclosed that a Security Event has occurred.  The General

 

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Partner must notify the Placement Agent immediately if the General Partner learns or has reason to believe a Security Event has occurred. Except to the extent prohibited by mandatory applicable law, the General Partner agrees that it will not notify any Placement Agent Client or Placement Agent employee until the General Partner first consult with the Placement Agent and the Placement Agent has had an opportunity to review the notification the General Partner proposes to issue to the affected individuals and given its express consent to the same.

10.            Client Communications.  Each Partnership and the General Partner severally agree to provide to MSSB copies of any communications to limited partners with respect to the operation and performance of the applicable Partnership.  Communications that are provided on a regular basis such as monthly account statements, shall be distributed to MSSB when such communications are distributed to MSSB clients.  The General Partner shall use its commercially reasonable efforts to distribute to MSSB all communications that require any action by limited partners such as limited partner consent or vote prior to the distribution of such communication to limited partners.  Each Partnership and the General Partner agree that MSSB may use such communications in connection with reports issued by MSSB to the applicable limited partners to which such communications were directed.  Each Partnership and the General Partner severally agree to respond as soon as practicable to inquiries of MSSB investors as communicated by MSSB and shall endeavor to copy MSSB on all such communications.

11.            Injunctive Relief.  Each party agrees that certain breaches of this Agreement with respect to confidentiality (Section 8), data privacy (Section 9) may cause potentially irreparable harm, and that monetary damages would not be sufficient to compensate the non-breaching party for such harm.  In the event of a breach of these provisions by a party, the non-breaching parties may seek temporary and permanent injunctive relief (without the necessity of proving actual damages or the posting of a bond) as well as other equitable relief, and will be entitled to commence an action for any such relief in any court pursuant to Section 14.

12.            Term and Termination.

a.          This Agreement shall remain in full force and effect until terminated by a party on thirty days’ prior written notice to the other parties.

b.          This Agreement may be terminated immediately on written notice to the other parties hereto on the dissolution, insolvency or bankruptcy of any party or upon a material breach of any condition, warranty, representation or other term of this Agreement by the other party.  Notwithstanding the foregoing, if this Agreement relates to more than one Partnership, the termination of the Agreement with respect to any one Partnership shall not result in the termination of the Agreement with respect to the other parties thereto.  Notwithstanding Section 12(b), upon becoming aware of a Disqualifying Event occurring on or after September 23, 2013 with respect to MSSB or any of its Covered Persons, a Partnership may, in its sole discretion, terminate this Agreement which shall be effective immediately or on such future date as indicated by such Partnership in a notice to MSSB relating to such termination.

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c.          On termination of this Agreement, the General Partner shall continue to pay MSSB the compensation set forth in Section 3 for so long as each limited partner introduced to the Partnerships by MSSB remains a limited partner and MSSB (and its applicable employees) maintains all necessary licenses and regulations required to receive such compensation.  For purposes of the foregoing, MSSB shall be entitled to the compensation set forth in Section 3 with respect to any person introduced by MSSB to the General Partner prior to termination whose subscription is accepted by the applicable Partnership within sixty days following such termination.

13.            Notices.  Any notice required or desired to be delivered under this Agreement shall be effective on actual receipt and shall be in writing and (i) delivered personally; (ii) sent by first class mail or overnight delivery, postage prepaid; (iii) transmitted by electronic mail (with confirmation of delivery and receipt); or (iv) transmitted by fax (with confirmation by first class mail, postage prepaid) to the parties at the following address or such other address as the parties from time to time specify in writing:

	 	
If to the Partnership or the General Partner:

 

[Name of Partnership]

c/o Ceres Managed Futures LLC

522 5th Avenue,

New York, NY  10036

Fax: 212-507-2065

Email: Patrick.Egan@morganstanley.com

Attention: Patrick Egan, President

 

With a copy to:

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Email:  RMolesworth@willkie.com

Attention: Rita Molesworth

 

	
If to MSSB:

 

Morgan Stanley Smith Barney LLC

522 5th Avenue, 13th Floor

New York, NY  10036

Fax: 212 905-2750

Email: Jeremy.Beal@morganstanley.com

Attention:  Jeremy Beal, Managing Director

 

 

 

14.            Status of Parties.  In selling the Interests, MSSB shall be an independent contractor (rather than employee, agent or representative) of any Partnership or the General Partner, and MSSB shall not have the right, power or authority to enter into any contract or to create any obligation on behalf of any Partnership or the General Partner or otherwise bind any Partnership or the General Partner in any way.  Nothing in this Agreement shall create a partnership, joint venture, agency, association, syndicate, unincorporated business or any other similar relationship between the parties.  Nothing in this Agreement shall be construed to imply that MSSB is a partner, shareholder, manager, managing member or member of any Partnership or the General Partner.

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15.            Miscellaneous.

a.            Headings.  Headings to sections and subsections in this Agreement are for the convenience of the parties only and are not intended to be a part of or affect the meaning or interpretation hereof.

b.            Entire Agreement.  This Agreement embodies the entire agreement and understanding of the parties with respect to the subject matter hereof, and supersedes all other agreements and understandings, including the Prior Agreement, whether written or oral, between the parties relating to the subject matter hereof entered into prior to this Agreement.

c.          Amendments.  This Agreement shall not be amended except by a writing signed by all parties hereto.  Notwithstanding the previous sentence, Partnerships may be added to this Agreement upon the agreement of the General Partner and MSSB.  The listing of such Partnership on Schedule 1 hereto shall be evidence of such agreement.

d.          Waiver.  No waiver of any provision of this Agreement shall be implied from any course of dealing between the parties hereto either before or after the effective date of this Agreement or from any failure by any party hereto to assert its rights hereunder on any occasion or series of occasions.

e.          Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York.  The provisions of Sections 3, 7 (including with respect to breaches of Section 4 or 5), 8, 9, 11(c), and this Section 14 shall survive termination of this Agreement.  If any provision of this Agreement is or should become inconsistent with any present or future law, rule, or regulation of any governmental or regulatory authority having jurisdiction over the subject matter of this Agreement, such provision shall be deemed rescinded or modified in accordance with any such law, rule or regulation.  In all other respects, this Agreement shall continue and remain in full force and effect.

f.          Successors and Assigns.  This Agreement shall inure to the benefit of and be binding on the parties hereto and such parties’ respective successors and permitted assigns.

g.          Assignment.  No party may assign this Agreement without the prior written consent of the other parties, except as otherwise provided herein.  Any purported assignment in violation of this Section 14 shall be void.

h.          Jurisdiction and Consent.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, ONLY IF THAT COURT LACKS SUBJECT MATTER JURISDICTION, TO THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, COMMERCIAL DIVISION OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND, WHETHER IN DISTRICT COURT OR SUPREME COURT OF THE STATE OF NEW YORK, WAIVE TRIAL BY JURY.  EACH OF THE PARTIES IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY

 

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OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  EACH OF THE PARTIES AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND BINDING UPON THE PARTIES AND MAY BE ENFORCED IN ANY OTHER COURTS TO WHOSE JURISDICTION A PARTY IS OR MAY BE SUBJECT, BY SUIT UPON SUCH JUDGMENT.  EACH PARTNERSHIP AND THE GENERAL PARTNER EACH HEREBY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT BY MEANS OF PERSONAL DELIVERY OR COURIER SERVICE, ADDRESSED TO ITS ADDRESS PROVIDED ABOVE AND TO THE ATTENTION OF ANY SECRETARY, ASSISTANT SECRETARY OR ANY OTHER OFFICER, DIRECTOR, MANAGING AGENT OR GENERAL AGENT OF SUCH PARTY, AND SUCH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE UNDER NEW YORK LAW OR UNDER ANY LAW OF ANY STATE OF THE UNITED STATES OR OF ANY OTHER JURISDICTION OR OTHERWISE TO SERVICE OF PROCESS IN SUCH MANNER.

i.          Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  Facsimiles (including facsimiles of the signature pages of this Agreement) shall have the same legal effect hereunder as originals.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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

	
THE PARTNERSHIPS LISTED ON SCHEDULE 1 HERETO

 

By: Ceres Managed Futures LLC

 

Name: /s/ Patrick T. Egan               

           Patrick T. Egan

Title:  President

	
Morgan Stanley Smith Barney LLC

 

Name: /s/ Michael Korn                 

             Michael Korn

Title:  Executive Director

	 	
Ceres Managed Futures LLC

 

Name:  /s/ Patrick T. Egan            

             Patrick T. Egan

Title:  President

 

 

 

	 	 

20

Schedule 1

 

	
PARTNERSHIP

	
STATE AND DATE OF ORGANIZATION

	
EFFECTIVE DATE

	
Commodity Advisors Fund L.P.

	
Delaware; January 30, 2006

	
March 1, 2014

Schedule 2

	
PARTNERSHIP

	
ONGOING SELLING AGENT FEE

	
Commodity Advisors Fund L.P.

	
2.00% per year of the adjusted net assets of Class A Units and 0.75% per year of the adjusted net assets of Class D Units (computed monthly by multiplying the adjusted net assets of the Class A Units by 2.00% and the adjusted net assets of the Class D Units by 0.75% and dividing the result thereof by 12) 1 

1                    Adjusted net assets are month-end Net Assets increased by the current month’s incentive fee accrual, the monthly management fee, the general partner’s management fee, the ongoing selling agent fee and any redemptions or distributions as of the end of such month.

Appendix A

Covered Persons:

		(i)	MSSB and its executive officers and directors and officers participating in the offering of any of the Partnerships;

		(ii)	Morgan Stanley Financial Advisors soliciting investors for the Partnerships on September 23, 2013 and thereafter who receive compensation with respect to such solicitation; and

		(iii)	MSSB’s managing member, Morgan Stanley Smith Barney Holdings LLC (the “Managing Member”) and the Managing Member’s executive officers and directors and officers participating in the offering of any of the Partnerships.

APPENDIX B: FORM OF JOINDER

TO THE AMENDED AND RESTATEDALTERNATIVE INVESTMENT SELLING AGENT AGREEMENT

This joinder (the “Joinder”) is to the Amended and Restated Alternative Investment Selling Agent Agreement, dated as of March 3, 2016, by and among Morgan Stanley Smith Barney LLC (“MSSB”), Ceres Managed Futures LLC (the “General Partner”) and each of the Partnerships listed on Schedules 1 and 2 thereto (the “Schedules”), as amended from time to time (the “Agreement”).  The undersigned (“Authorized Agent”) is acting on behalf of each Partnership (each, a “Joining Partnership”) set forth on the schedule of Joining Partnerships (“Schedule of Joining Partnerships”) attached hereto pursuant to authority and a power of attorney devolved upon Authorized Agent by each such Joining Partnership, for the purpose of joining each such Joining Partnership to the Agreement.  Pursuant to the terms of the Agreement, Partnerships may be added to the Agreement upon the agreement of the General Partner and MSSB.  The Schedules shall be amended by adding thereto the Joining Partnerships.  Unless otherwise indicated herein, capitalized terms used in this Joinder shall have the meanings set forth in the Agreement.

The execution of this Joinder by Authorized Agent on behalf of each Joining Partnership shall be deemed to be an agreement by MSSB and each Joining Partnership to be bound by all of the terms and conditions set forth in the Agreement, effective with respect to each Joining Partnership as of the date listed under the heading “Date of Joinder to the Agreement” on the schedule attached hereto.  By the execution of this Joinder by Authorized Agent, each Joining Partnership also agrees and represents that all of such Joining Partnership’s information in the Schedule of Joining Partnerships hereto provided by Authorized Agent on behalf of such Joining Partnership in connection with this Joinder (which Schedule of Joining Partnerships is hereby incorporated into the Agreement) is true and correct and such Joining Partnership, by Authorized Agent, shall promptly notify MSSB of any material change in such information.

IN WITNESS WHEREOF, Joining Partnership, by Authorized Agent, has executed this Agreement on the date indicated below.

Joining Partnership:  Each Partnership set forth on the attached schedule, in its individual capacity

By:        Authorized Agent

By:                                                                                                                                                                                                                                                                                                                                                           

		(Please Print Name and Title)	(Date)

SCHEDULE OF JOINING PARTNERSHIPS

	
PARTNERSHIP

	
STATE AND DATE OF ORGANIZATION

	
ONGOING SELLING AGENT FEE

	
DATE OF JOINDER TO THE AGREEMENT

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