Document:

EX-10.2 FORM OF CUSTOMER AGREEMENT

 

EXHIBIT 10.2

CUSTOMER AGREEMENT

In consideration of the acceptance by Fimat USA, LLC (“FIMAT”) of one or more accounts (the
“Account(s)”) of the undersigned (“Customer”), and of FIMAT acting as broker for Customer, the
Customer agrees as follows:

	I.	 	RISKS AND AUTHORITY

	 	A.	 	Risks of Commodity Trading. In addition to the Commodity Futures Trading
Commission (“CFTC”) mandated Risk Disclosure Statement attached hereto, Customer
understands that (i) Customer may be trading in commodity futures contracts, options
on commodity futures contracts, foreign futures contracts and options on foreign
futures contracts (collectively, “Commodity Futures Contracts”), securities and
securities options (collectively, “Securities”), derivative instruments, spot and
forward contracts, physical commodities, cash and other properties and options thereon
(collectively, “Other Account Instruments”) and/or currencies and foreign exchange
contracts and options thereon (“Forex,“and together with Commodity Futures Contracts,
Securities, Other Account Instruments and Forex being herein collectively defined as
“Commodities”), and such trading is highly speculative, (ii) prices are subject to
sharp upward and downward movements, (iii) price fluctuations may result in losses
which substantially exceed the capital in Customer’s Account(s), (iv) on trading days
on which the subject of Customer’s trading reaches its permissible exchange price
limit, trading may cease, as a result of which Customer may be locked into substantial
losses, and (v) in transactions on exchanges on which foreign currency is used, any
profit or loss may be affected by exchange rate fluctuations. Customer is willing and
able, financially and otherwise, to assume the risks of such trading. Customer
recognizes that assurance of profit or freedom from loss is impossible to guaranty.
Customer has received no assurance and will place no orders in reliance on any such
assurance or similar representations. Customer understands that FIMAT may without
notice to Customer exercise any of the remedies listed in Sections III.O and IV hereof
if Customer fails to maintain adequate margin or if any other event of default occurs.
Customer agrees to review carefully each confirmation statement FIMAT sends Customer
and notify FIMAT immediately in accordance with Section III.F hereof.
	 
	 	B.	 	FIMAT’s Authority and Responsibility. Customer authorizes FIMAT to purchase
and sell Commodities, as agent for Customer’s Account(s) in accordance with the oral
or written instructions of Customer or persons authorized in writing to act, or
persons reasonably believed by FIMAT to be acting, on Customer’s behalf. Unless
Customer specifies to the contrary, FIMAT is authorized to execute all orders on any
exchange or other market where such business is conducted which may be deemed by
FIMAT, in its sole discretion, to be appropriate. Customer hereby waives any defense
that any such instruction was not in writing, as may be required by any law, rule or
regulation. FIMAT agrees to provide the services contemplated hereunder in any
commercially reasonable manner.
	 
	 	 	 	Customer authorizes FIMAT or its agents to investigate Customer’s credit standing
and in connection therewith to contact such banks (including, without limitation,
any of FIMAT’s Affiliates, such as Societe Generale), financial institutions and
credit agencies, as FIMAT shall deem appropriate to verify information regarding
Customer. Customer authorizes FIMAT, in its sole discretion, to provide and/or
exchange any financial information with respect to Customer with any of FIMAT’s
Affiliates.
	 
	 	C.	 	Introduced Accounts (Only if applicable). Customer understands that
Customer’s Account(s) with FIMAT was introduced to FIMAT by an Intermediary (as
defined in Section II.F below), and that, except for companies which are members of
the FIMAT Group, the Intermediary is an independent business entity which is not in
any way affiliated with or an agent of FIMAT. Customer hereby authorizes FIMAT to
accept all orders and instructions from its Intermediary and hereby ratifies all
orders and instructions, which

 

 

	 	 	 	FIMAT believes in good faith to have been transmitted by its Intermediary on
Customer’s behalf, which FIMAT is authorized to act upon. If Customer is dealing
with an Intermediary, make all checks payable to, and wire all funds directly to
“Fimat USA, LLC”. FIMAT INTERMEDIARIES DO NOT HANDLE CUSTOMER FUNDS, EXCEPT TO
FORWARD TO FIMAT CHECKS MADE OUT TO FIMAT.

	 	D.	 	Customer Representations and Warranties. Except as disclosed in writing to
FIMAT prior to execution and delivery of this Agreement or in a subsequent written
notice from Customer to FIMAT, Customer represents and warrants as follows: (1)
Customer is not (a) a general partner, officer, director, more than ten percent owner,
correspondent, agent (or person associated with an agent), associated person, or
employee of a futures commission merchant, commodity trading advisor, commodity pool
operator, or an introducing broker, (b) a relative, spouse, or relative of a spouse of
any of the foregoing persons who shares the same home with any such person, (c) a
member of an exchange or a director or employee of an exchange, bank, trust company,
insurance company, or regulatory or self-regulatory organization, or (d) engaged
individually or as an employee in the business of dealing, as broker or principal, in
Commodities other items, documents of title relating to Commodities, bills of
exchange, acceptances, or other forms of commercial paper, and if Customer becomes so
employed or engaged Customer will promptly notify FIMAT in writing; (2) Customer, if
applicable, (a) is duly organized and in good standing under the laws of the
jurisdiction in which it was organized and in all jurisdictions where it is qualified
to do business; (b) has the requisite capacity, power and authority to execute,
deliver and perform its obligations under this Agreement and such Other Agreement,
including without limitation, the granting of any security interests in the Collateral
as contemplated hereby and thereby; (c) none of the execution, delivery or performance
by Customer of its obligations under this Agreement or such Other Agreement conflict
with the provisions of any material contract, agreement or instrument binding upon you
or your properties, or the provisions of any law, statute, rule, regulation or decree,
order or determination of any court of law applicable to Customer; and (d) no consent,
authorization, permit or filing is required in connection with the execution, delivery
and performance by Customer of this Agreement or such Other Agreement, except those
that have been obtained or made and filings necessary to create, perfect and retain
any security interest in, or lien upon, any Collateral for any of Customer’s
obligations to FIMAT; (3) Customer, if an individual, is of sound mind, legal age and
legal competence; (4) no person other than Customer has or will have an interest in
Customer’s Account(s) except as otherwise disclosed in writing to FIMAT; and (5) all
the information provided in the Customer Application is true, correct and complete as
of the date hereof and that Customer will promptly notify FIMAT of any material
changes in such information.
	 
	 	E.	 	Customer is Principal. Unless Customer has advised FIMAT in writing
otherwise prior to execution and delivery of this Agreement, Customer is acting for
Customer’s Account(s) as principal and not as agent in transactions under this
Agreement. Customer will give written notice to FIMAT before granting any person or
entity any interest in Customer’s Account(s) or undertaking to act as agent for any
party with respect to Customer’s Account(s).

	II.	 	DEFINITIONS (As used in the singular or plural)

	 	A.	 	Affiliate. “Affiliate” includes Societe Generale, Fimat International
Banque, SA, Fimat Americas SAS and SG Tandem, Inc. and any of their affiliates or
subsidiaries.
	 
	 	B.	 	Agreed by FIMAT. “Agreed by FIMAT” means an agreement in writing under the
hand of a person whose name and signature at the material time appear on a list of
authorized signatories maintained by FIMAT at its offices. A copy of the list is
available for inspection upon reasonable notice at FIMAT’s offices during usual
business hours.

 

 

	 	C.	 	Applicable Law. “Applicable Law” shall have the meaning set forth in Section
III.A.3 below.
	 
	 	D.	 	Collateral. “Collateral” means all of Customer’s right, title and interest
in and to all goods and other property, including without limitation, Commodities, the
Account(s), inventory, documents, accounts, general intangibles, chattel paper and all
proceeds of such property including but not limited to interest on or profits from the
Account(s). Any property en route to or allocated by any third party to FIMAT and/or
any Affiliate shall be deemed “Collateral” for purposes of this Agreement.
	 
	 	E.	 	Commodity Exchange. “Commodity Exchange” means any exchange, association,
contract market or clearing association, whether incorporated or unincorporated, or
persons who are engaged in the business of buying or selling any commodity or
receiving the same for sale on consignment.
	 
	 	F.	 	Intermediary. “Intermediary” includes an introducing broker, fully disclosed
futures commission merchant, foreign broker, or any other person or entity acting in a
similar capacity.
	 
	 	G.	 	Liability. “Liability” means all Customer’s obligations direct or indirect
to FIMAT or its Affiliates of whatever form and however arising, including any
indebtedness now or hereafter existing under this Agreement or any Other Agreement or
any debit balances in the Account(s).
	 
	 	H.	 	Other Agreement. “Other Agreement” means any and all agreements, documents
and instruments (including, without limitation, promissory note(s), security
agreement(s), pledge agreement(s) and guaranty(s)) executed by or on behalf of
Customer in favor of FIMAT and/or an Affiliate, as such agreements, documents and
instruments may be amended, supplemented or otherwise modified from time to time in
accordance with their respective terms.

	III.	 	TERMS OF TRANSACTIONS

	 	A.	 	Applicable Rules and Terms. The Account(s) and all transactions and
agreements in respect of the Account(s) shall be subject to:

	 	1.	 	the terms of this Agreement and any other terms Agreed by
FIMAT and Customer;
	 
	 	2.	 	FIMAT’s terms from time to time in effect with respect to the
specific type of transaction and the terms of FIMAT’s confirmation of the
transaction, except to the extent specifically inconsistent with Subsection
III.A.1 above;
	 
	 	3.	 	the regulations of all applicable Federal, state and
self-regulatory agencies or authorities, including but not limited to: (i)
the provisions of the Commodity Exchange Act, as amended, and any rules,
regulations, orders and interpretations promulgated thereunder by the CFTC;
and (ii) the constitution, by-laws, rules, regulations, orders and
interpretations of the Commodity Exchange (and its clearing house, if any) on
which such transactions are executed and cleared, and any relevant registered
futures association, including, without limitation, the National Futures
Association (“NFA”), except to the extent Subsections III.A.1 or

 

 

	 	 	 	III.A.2 above provide more specific restrictions. All such provisions,
rules, regulations, orders, interpretations, constitution, by-laws, custom
and usage are hereinafter collectively referred to as “Applicable Law;”
and

	 	4.	 	customary practice in the trade, except to the extent
specifically inconsistent with Subsections III.A.1, III.A.2, or III.A.3 above.

	 	B.	 	Margin. Customer will pay to FIMAT (and only to FIMAT) all amounts FIMAT
requires as margin or to satisfy any other of Customer’s obligations under this
Agreement in U.S. Dollars in immediately available funds, unless otherwise agreed, as
FIMAT requires. FIMAT at any time may change the margin requirements with respect to
Customer’s Account(s) for existing positions as well as for new positions. The
required margin may exceed the margin required by the Commodity Exchange (and its
clearing house, if any) on which trades are cleared on behalf of Customer.
	 
	 	 	 	FIMAT has no obligation to notify Customer of any insufficiency of margin in
Customer’s Account(s) prior to exercising rights and remedies under Section IV of
this Agreement.
	 
	 	C.	 	Fees and Commissions. Customer will pay the fees and commissions FIMAT
charges from time to time. FIMAT may share its fees, commissions and amounts accruing
on Customer’s Account(s) with persons that introduce Customer to FIMAT or provide
other services to FIMAT.
	 
	 	D.	 	Interest. If Customer fails to pay FIMAT in immediately available funds any
sum when due, then unless otherwise provided in any Other Agreement, Customer will pay
interest to FIMAT on the unpaid sum, while outstanding, at the lesser of (i) the
maximum legal rate or (ii) 150% of the publicly announced prime lending rate of
Societe Generale New York Branch as in effect from time to time while the unpaid sum
is outstanding, compounded monthly. Customer acknowledges that FIMAT may receive and
retain as its own any increment or interest accruing from any of the funds FIMAT
receives from Customer.
	 
	 	E.	 	No Standard Requirement. FIMAT has no obligation to impose uniform margin
requirements, to publish details of fees or commissions, or to charge uniform fees,
commissions or interest rates.
	 
	 	F.	 	Confirmations and Statements. FIMAT will promptly confirm in writing all
transactions undertaken for Customer’s Account(s). Customer shall timely review all
confirmations received from FIMAT to check that the description of the transactions is
accurate and that no transaction is omitted. Customer is conclusively bound by
FIMAT’s confirmations and statements of Customer’s Account(s) if Customer does not
object in writing before the earlier of ten days following transmission to Customer or
by market opening on the day following Customer’s actual receipt of such confirmation
statements. With respect to transactions, which Customer authorizes but for which no
confirmation is received, Customer shall be deemed to have waived all objections
unless FIMAT has received Customer’s written request for a copy of the confirmation
within five days of the transaction date. Customer understands that Customer should
direct inquiries to FIMAT at 630 Fifth Avenue, Suite 500, New York, New York 10111,
Attention: Compliance Department, or such other address as FIMAT may hereafter
provide Customer. For the reporting of any alleged unauthorized trades or other trade
improprieties, FIMAT authorizes and will accept “collect” telephone calls to the
Compliance Department at (212) 504-7446. FIMAT is not bound by prices or transactions
reported in error on confirmations and statements of Customer’s Account(s).
	 
	 	 	 	Customer hereby authorizes FIMAT to transmit to it all confirmation and other
statements of account activity, funds and positions by facsimile transmission or
through

 

 

	 	 	 	the Internet to such address as Customer designates on the Customer Application, or
as Customer designates from time in a writing addressed to the Compliance
Department, as set forth in this paragraph. FIMAT reserves the right to assess its
standard charge from time to time in effect for confirmation and other statements
of account activity, funds and positions provided to customer through any other
medium, as well as for duplicate statements of any kind. This authorization shall
be perpetual, unless revoked in writing by Customer in a writing addressed to the
Compliance Department, as set forth in this paragraph.

	 	G.	 	Capacity of FIMAT; Floor Brokers and Others; Indemnification. FIMAT will
execute Customer’s transactions solely as agent of Customer. In executing
transactions on a Commodity Exchange, FIMAT may utilize floor brokers (who may be
employees or other agents of FIMAT), and will be responsible for reasonable care in
the selection of such brokers, but will not be responsible to Customer for negligence
or misconduct of an independent floor broker if, at the time the floor broker was
selected, the floor broker was authorized to act as such under the rules of the
relevant Commodity Exchange and the appropriate regulatory agency. FIMAT will not be
responsible to Customer in the event of error, failure, negligence, or misconduct on
the part of any Intermediary, commodity trading advisor, or other person acting on
Customer’s behalf and, without limiting the foregoing, FIMAT has no obligation to
investigate the facts surrounding any transaction in Customer’s Account(s) which is
introduced by such Intermediary, commodity trading advisor, or other person. Customer
will indemnify FIMAT and hold it harmless from and against any and all liabilities,
penalties, losses, and expenses, including legal expenses, incurred by FIMAT as a
result of any error, failure, negligence, or misconduct on the part of any such
Intermediary, commodity trading advisor, or other person acting on Customer’s behalf.
FIMAT shall not be responsible for any loss or damage caused, directly or indirectly,
from any delays or inaccuracies in the transmission of orders, including but not
limited to our automated order routing systems, or other information due to a
breakdown in or failure of any transmission or communication facilities for any reason
including those reasons described in Section V.D. hereof. FIMAT shall only be liable
for actions or inactions by FIMAT which amount to gross negligence or fraud. Customer
also agrees that FIMAT shall not be liable to Customer for any losses, costs,
expenses, or other damages sustained by Customer in the event of any failure or delay
by any exchange, market, clearing house, bank or other depository institution where
any of Customer’s funds or other assets are maintained, or a failure or delay by any
member, bank or agent of any of the foregoing, or a failure or delay by any of the
foregoing to enforce its rules, to fulfill its obligations, or to make any payment,
for any reason whatsoever. Customer waives any claim, cause of action or right as
against FIMAT, its employees or agents which may arise or occur as a result thereof.
	 
	 	H.	 	Transaction Limits; Acceptance of Orders. FIMAT, solely for its own benefit
and the benefit of other customers, may limit the number of transactions FIMAT
executes, and the open positions FIMAT maintains or acquires, for Customer. Customer,
acting alone or in concert with others, will not make any trade through FIMAT which
would have the effect of exceeding the lower of limits imposed by FIMAT, the Commodity
Exchange on which the transactions are executed, or any regulatory agency. If
Customer exceeds its limit, FIMAT may require the transfer of Customer’s positions to
another firm, or FIMAT may liquidate some or all of the Customer’s positions as FIMAT
elects in its sole discretion. Customer agrees to promptly advise FIMAT if Customer
is required to file reports of its positions to the CFTC or any Commodity Exchange.
	 
	 	I.	 	Liquidation of Offsetting Positions. FIMAT shall liquidate any contract for
which an offsetting order is entered by Customer on a first in, first out (“FIFO”)
basis, unless Customer instructs FIMAT not to liquidate such contract and to maintain
the offsetting contracts as open positions; provided, that FIMAT shall not be
obligated to comply with any such instructions given by Customer if Customer fails to
provide FIMAT with any

 

 

	 	 	 	representations, documentation or information reasonably requested by FIMAT or if
in FIMAT’s reasonable judgment, any failure to liquidate such offsetting contracts
against each other on a FIFO basis would result in a violation of Applicable Law.

	 	J.	 	Separate Accounts. Pursuant to CFTC Rule 1.46(e)(1), if FIMAT maintains or
directs the trading for more than one account for Customer then, if held open,
offsetting long and short positions in the separate accounts may result in the
charging of additional fees and commissions and the payment of additional margin,
although offsetting positions will result in no additional market gain or loss.
	 
	 	K.	 	Failure of Delivery. At least five business days prior to the earlier of
first notice or last trading day of the delivery month, Customer must advise FIMAT
whether Customer intends to take or make delivery, as the case may be, of items
purchased and sold by FIMAT at Customer’s direction, and, if delivery is intended,
Customer must demonstrate to FIMAT’s satisfaction Customer’s ability to perform
Customer’s delivery obligations, in any manner required by FIMAT including, without
limitation, by depositing with FIMAT the funds or documents necessary for delivery.
If Customer fails to so advise FIMAT or to demonstrate satisfactorily Customer’s
ability to perform, then without notice or demand to Customer, FIMAT may, but shall
have no duty to, liquidate such positions on terms FIMAT deems reasonable, or take any
other action FIMAT deems reasonable, including taking or making delivery as the case
may be. If Customer fails to supply FIMAT, in a timely manner, with any item FIMAT
has sold at Customer’s direction, FIMAT may borrow or purchase the item from any
party, including an Affiliate, to make the delivery. FIMAT has no duty to borrow or
purchase the item. Customer shall comply fully with Applicable Law relating to taking
or making any delivery, and shall, if taking delivery, take all steps as provided
thereunder to ensure that all items to be delivered are in compliance with Applicable
Law. Customer will hold harmless and indemnify FIMAT for all liabilities, penalties,
losses, and expenses, including any legal expenses and any penalties imposed by any
Commodity Exchange, FIMAT incurs or reasonably anticipates incurring if Customer fails
timely (1) to take good delivery of any item FIMAT has purchased at Customer’s
direction, (2) to supply FIMAT with or otherwise make good delivery of any item FIMAT
has sold at Customer’s direction, or otherwise, in connection with a delivery, or (3)
to comply with Applicable Law, and FIMAT may in the event of any such failure,
apparent failure, or otherwise withhold from Customer’s Account(s) with FIMAT or any
Affiliates the amount (however denominated) estimated by FIMAT as sufficient to
satisfy the above indemnity, for application as FIMAT deems appropriate.
	 
	 	L.	 	Forwarding and Storage of Material. If FIMAT on Customer’s behalf arranges
for packaging, shipping, storage, or insurance, FIMAT’s only liability will be for
gross negligence or willful misconduct in the making of the arrangements.
	 
	 	M.	 	Reimbursement for Taxes, Etc. Customer will indemnify FIMAT for all taxes,
levies, imposts, duties, charges, and fees (including legal expenses) incurred in
connection with any sale, purchase, forwarding or storage.
	 
	 	N.	 	Payment. Customer’s payments must be in freely transferable and immediately
available funds to FIMAT’s account at a bank designated by FIMAT and without deduction
for any taxes, imposts, duties, charges, or fees and free and clear of any
withholding, restrictions, or conditions of any nature when received by FIMAT.
Payments may not be effected by the delivery of bank notes or other legal tender
unless Agreed by FIMAT. FIMAT may withhold any delivery until it receives payment in
the foregoing manner.
	 
	 	O.	 	Closeout. Whenever FIMAT, in its sole discretion, considers it necessary for
Customer’s protection or for FIMAT’s protection, FIMAT may, but is not obligated to,
refuse to accept new positions and/or close out or otherwise liquidate Customer’s
positions, and Customer will be liable for any deficiency in Customer’s Account(s)
that may result therefrom.

 

 

	 	P.	 	Options Exercise. Customer agrees that if Customer has a commodity option
position with FIMAT and does not provide timely instructions regarding the exercise of
a commodity option on the last day of trading in that option, FIMAT, in its sole
discretion and without prior notice to Customer, is authorized to exercise or abandon
(i.e., let expire) the option. Customer further agrees that any exercise or
abandonment of an option by FIMAT pursuant to this Agreement shall be for Customer’s
sole account and risk and FIMAT shall have no liability with respect thereto, and
FIMAT shall have no duty to exercise such authority. Customer further agrees that,
without FIMAT’s written consent, Customer may not, on any day, exercise more than 20
options contracts with FIMAT unless Customer has margin with FIMAT in excess of the
amount of margin FIMAT requires for the futures contracts Customer would be assigned
as a result of such exercise.
	 
	 	 	 	Customer acknowledges that FIMAT’s confirmation of purchase and sale statements
will reflect option expiration dates that FIMAT obtains from sources generally
believed to be reliable, and FIMAT will be responsible only for gross negligence,
willful misconduct or fraud in connection therewith. If Customer holds options
with a Friday expiration date, it is possible that, if a grantor, Customer could be
assigned a futures position after the expiration of the option on Friday, and on
some exchanges, as late as Saturday morning.
	 
	 	Q.	 	Adjustments. On rare occasion FIMAT may, in error, not fill Customer’s order
or fill Customer’s order at a price which is less favorable than the price which could
have been obtained if the error had not occurred. In these circumstances, FIMAT will
give Customer the filled order and cash adjust Customer’s Account(s) so as to reflect
the price at which the order could have been executed had the error not occurred.
Customer agrees however that, if when correcting its error, FIMAT obtains a position
at a better price than Customer’s order could have been filled at, Customer will only
receive the fill Customer could have obtained if Customer’s orders had been executed
without error (and FIMAT will receive any difference).
	 
	 	R.	 	Exchange of Physical for Futures Transaction. Customer agrees to create,
retain, and produce, upon request of a Commodity Exchange, the CFTC, or the United
States Department of Justice, documentation of cash transactions underlying exchanges
of futures for cash commodities or exchanges of futures in connection with cash
commodity transactions in accordance with Applicable Law. Documentation means those
documents customarily generated in accordance with cash market practices and/or
required by the relevant Commodity Exchange or regulatory authority which demonstrate
the existence and nature of the underlying cash transactions, including, but not
limited to, contracts, confirmation statements, telex printouts, invoices, and
warehouse receipts or other documents of title.
	 
	 	S.	 	Direct Order Transmittal Client Disclosure. On occasion, when FIMAT’s
offices are closed, Customer may request that FIMAT grant it authority to place orders
directly with one or more of FIMAT’s non-U.S. Affiliates for execution on non-U.S.
exchanges, or for transactions on U.S. exchanges to be executed on GLOBEX, NYMEX
ACCESS or other electronic trading systems. If FIMAT grants Customer such authority,
the following conditions shall apply: (1) the order(s) Customer places with FIMAT’s
non-U.S. Affiliate will be for FIMAT’s omnibus account maintained directly or
indirectly with FIMAT’s non-U.S. Affiliate; (2) Customer will be a client of FIMAT and
not of the non-U.S. Affiliate; (3) all monies, securities and property of Customer
will be maintained by FIMAT; and (4) unless Customer objects within five days after
receipt of this Agreement, FIMAT may assume Customer consents to these conditions.

	IV.	 	SECURITY AGREEMENT AND DEFAULT PROVISIONS

 

 

	 	A.	 	Security Interest. Customer hereby grants FIMAT a security interest in the
Collateral and proceeds thereof, as security for the prompt payment and performance of
any and all Liabilities.
	 
	 	B.	 	FIMAT’s Rights Respecting Collateral. Customer will sign and deliver all
agreements, instruments, certificates and documents FIMAT requests to create, perfect,
preserve and protect the security interest in any of the Collateral, accompanied by
such instruments of assignment and transfer and in such form as FIMAT shall reasonably
request. Customer appoints FIMAT as Customer’s agent to sign, deliver, complete and
file any such agreements, instruments, certificates and documents on Customer’s
behalf. FIMAT has no obligation to return an identical item of Collateral, but only
to replace the item with property of like kind and substantially similar quantity,
subject to adjustment for quantity variations at then prevailing market prices. FIMAT
may, at any time and without limitations except those imposed by law, pledge,
re-pledge, hypothecate, loan or invest any Collateral without notice to Customer or
the obligation to account to Customer for any interest, income, or other benefit from
any of the Collateral. Customer agrees to permit FIMAT and/or its agents and
representatives at any time to inspect any of the Collateral and make abstracts or
copies from any of Customer’s books and records pertaining to the Collateral. The
right is expressly granted to FIMAT, in its sole discretion, to notify warehousemen,
consignees, bailees or any other persons in possession of Collateral of FIMAT’s
security interest therein. Unless Agreed by FIMAT, the undersigned will not file or
authorize or permit to be filed in any jurisdiction any such financing or like
statement in which FIMAT is not named as the sole secured party. Upon the request of
FIMAT, Customer shall, at Customer’s expense, keep insured all Collateral which is
tangible property for full value, with such coverage as FIMAT may approve, and the
policies shall be duly endorsed in FIMAT’s favor and delivered to FIMAT.
	 
	 	C.	 	Events of Default. In addition to any “Event of Default” which may be
defined in any Other Agreement, and not by way of limitation of any right FIMAT
otherwise has to demand payment at any time of any of the Liabilities, the following
events shall constitute an “Event of Default”: (1) Customer breaches, repudiates, or
defaults in any way on any agreement with FIMAT or any Affiliate (including Customer’s
agreement to provide margin) or with any third party; or (2) FIMAT, in its sole
discretion, determines that it has sufficient grounds for insecurity with respect to
Customer’s performance of any obligation to any person and Customer fails to provide
assurance of performance of the obligation satisfactory to FIMAT; or (3) any
proceeding is commenced by or against Customer under any bankruptcy, insolvency,
relief of debtor, or similar law, or Customer makes an assignment for the benefit of
creditors, a receiver, trustee, conservator, liquidator or similar officer is
appointed for Customer or any of Customer’s property; or (4) Customer’s Account(s) are
attached or levied against; or (5) any of Customer’s representations to FIMAT or any
Affiliate, whenever or wherever made, were misleading when made or deemed made or
later becomes untrue; or (6) Customer dies, is disabled or becomes legally
incompetent; or (7) Customer or any organization of which Customer is a member
suspends or threatens to suspend the transaction of its usual business, or any
proceeding is commenced with respect to any of Customer’s property or any such
organization; or (8) Customer is a party to any merger, consolidation or sale of all
or substantially all of its assets unless Agreed by FIMAT prior thereto; or (9) FIMAT
has reason to believe that any of the foregoing is likely to occur imminently.
	 
	 	D.	 	FIMAT’s Remedies Upon Default.

	 	1.	 	Customer absolutely and unconditionally agrees that upon the
occurrence of an Event of Default, FIMAT, on behalf of itself and as agent for
any Affiliate, may exercise any one or more of the following remedies (except
that, upon the occurrence of any Event of Default set forth in Section
IV.C.(3) above, the remedies specified in subparagraphs a, b, c, and g below
shall thereupon be

 

 

	 	 	 	deemed for all purposes to have been exercised, immediately and without
action by FIMAT), with only such notice as is required by Applicable Law
and cannot be waived, without prejudice to any other remedies:

	 	a.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may terminate any or all of FIMAT’s and/or
any Affiliates obligations to Customer for future performance;
	 
	 	b.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may treat any or all of Customer’s
Liabilities and/or Customer’s obligations to any Affiliates,
including credit or debit balances, as immediately due, and may treat
all limits, margin facilities and call tolerance facilities in place
as revoked;
	 
	 	c.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may consolidate Customer’s Account(s) or
any of them at FIMAT and/or any Affiliates;
	 
	 	d.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may sell any or all non-cash Collateral
held long by FIMAT and/or any Affiliates;
	 
	 	e.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may close out or hedge for Customer’s
Account(s) any or all open positions in Customer’s Account(s) at
FIMAT and/or any Affiliates pursuant to Section III.O above or
otherwise, in any manner it deems reasonable under the circumstances;
	 
	 	f.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may borrow, lend, sell or buy from any
party, including itself and/or any Affiliates, any property necessary
to cover or hedge any or all positions in Customer’s Account(s) at
FIMAT and/or any Affiliates; and
	 
	 	g.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may offset the proceeds of the sale of
non-cash Collateral, cash Collateral, and sums owing Customer by
FIMAT and/or Affiliates (including any sums arising from the
operation of this Section D), against Customer’s Liabilities and
Customer’s obligations to any Affiliates, without prejudice to
FIMAT’s right to recover the balance of Customer’s Liabilities and
any Affiliates’ right to recover the balance of Customer’s
obligations to them.

	 	 	 	Customer appoints FIMAT as Customer’s agent to sign, complete, and deliver
any and all documents necessary or desirable to carry out the foregoing.
None of FIMAT nor any of its Affiliates, nor any of its agents or
representatives will be responsible for losses or lost profits, accrued or
anticipated, resulting from any position or transaction entered to enforce
the foregoing remedies. Customer waives the right of set off in any action
brought by FIMAT to collect amounts owned by Customer to FIMAT.
	 
	 	 	 	Customer will indemnify and hold harmless FIMAT and its Affiliates, and
their respective agents and representatives from any liabilities,
penalties, losses, costs and expenses, including but not limited to
reasonable attorney fees (whether the reasonable fees and charges of
external legal counsel and/or the costs and charges, if any, allocated by
internal legal department), which FIMAT and/or any Affiliates incur in
connection with (i) the exercise of any remedy hereunder or under any
Other Agreement, (ii) the care or custody of the Collateral and defending
or

 

 

	 	 	 	asserting the rights and claims of FIMAT and/or any Affiliates in respect
thereof, and (iii) meeting any obligation of FIMAT and/or any Affiliates
which would otherwise fail to be performed by reason of an Event of
Default.

	V.	 	MISCELLANEOUS

	 	A.	 	Governing Law and Submission to Jurisdiction.
	 
	 	 	 	All disputes between FIMAT and Customer including, but not limited to, disputes
arising directly or indirectly as a result of, or the relationship established as a
result of, this Agreement, shall be governed by the substantive laws of the State
of New York, without regard to principles of choice of law. Notwithstanding any
provision of Applicable Law, Customer agrees to commence all actions of any kind
against FIMAT within one year of the event giving rise to any dispute. Customer
irrevocably submits to the jurisdiction of the courts of New York and of the
Federal Courts of the Southern District of New York with respect to litigation
relating to all such disputes, including, but not limited to, disputes arising
directly or indirectly as a result of or the relationship established as a result
of this Agreement and transactions subject to this Agreement, agrees to commence
actions and proceedings and assert claims for relief involving them only in such
courts (unless Customer has otherwise agreed to arbitrate all disputes against
FIMAT, in which case such arbitration shall be held only in New York City), and
consents to service of process by the mailing of copies to Customer by certified
mail to Customer’s address as it appears on the books of FIMAT. Such service shall
be effective ten days after mailing.
	 
	 	B.	 	Waiver of Jury Trial. CUSTOMER HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO, BUT NOT LIMITED TO, DISPUTES ARISING
DIRECTLY OR INDIRECTLY AS A RESULT OF, OR THE RELATIONSHIP ESTABLISHED AS A RESULT OF,
THIS AGREEMENT OR ANY TRANSACTION IN CONNECTION THEREWITH. CUSTOMER’S WAIVER OF TRIAL
BY JURY IS A PREREQUISITE TO, AND INDUCEMENT OF FIMAT TO OFFER, THE OPENING OF
CUSTOMER’S ACCOUNT(S).
	 
	 	C.	 	Applicable Law and Notes for German Clients. Contrary to German Law, the
substantive law of New York does not distinguish between binding and non-binding
terminal (futures) transactions (see paragraph 53 of the German Börsengesetz). All
trades under this Agreement are therefore binding market transactions. Customer
acknowledges that under German Law futures trading gives rise to an imperfect
obligation (as provided in paragraphs 762 and 764 of the Burgerliches Gesetzbuch
(“BGB”) and paragraph 58 of the German Börsengesetz). Customer also acknowledges that
under paragraph 814 of the BGB disclosure of this fact removes any and all rights
Customer might otherwise have as a result of the “Differenzeinwand” (paragraph 812 of
the BGB). Customer credit balance held by FIMAT will be applied to fulfill, discharge
and perform the transaction(s) and as an advance performance or down payment to cover
any transaction(s) trading costs.
	 
	 	D.	 	Force Majeure; Warranty and Disclaimer of Warranties. FIMAT shall not be
liable for any delay in performance or for non-performance of its obligations caused
by any event beyond the reasonable control of FIMAT. FIMAT may, without liability,
cancel this Agreement or any particular transaction contemplated hereunder if its
performance is delayed or rendered impossible due to any such event. FIMAT’s sole
warranty is that any commodity delivered by it will conform to the description on any
confirmation prepared and delivered by FIMAT with respect thereto. FIMAT EXPRESSLY
DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED.
	 
	 	E.	 	Non-Waiver; Non-Assignment; Time of the Essence. This Agreement and the
Other Agreements, if any, constitute the entire Agreement between FIMAT and Customer
with

 

 

	 	 	 	respect to the subject matter hereof and supersede all other understandings,
agreements, or communications concerning such subject matter. Any oral
representations, warranties, inducements, or agreements made by any representative
of FIMAT inconsistent with the provisions of this Agreement are excluded and will
not bind FIMAT. FIMAT will be bound by waivers and modifications of any of the
terms of this Agreement, any other written agreement, or any transaction, or any
attempted assignment by Customer of any right or interest in this Agreement, any
other agreement, or any transaction, only if Agreed by FIMAT (as defined). Such
agreement will bind FIMAT only in relation to the waiver, modification, or
assignment, to which FIMAT has consented in writing. Customer hereby waives the
right to claim estoppel or forbearance unless Agreed by FIMAT. Any agreement by
FIMAT to forbear liquidation, pursuant to any of its rights and remedies hereunder,
may be revoked by FIMAT upon 24 hours notice to Customer (unless a shorter time is
commercially reasonable under the circumstances), which notice Customer hereby
deems reasonable. FIMAT’s failure to exercise any right or remedy is not a waiver
of the right or remedy not exercised or any other right or remedy. Time is of the
essence in the performance of Customer’s obligations.

	 	F.	 	Binding Effect. This Agreement covers all of Customer’s Account(s) with
FIMAT, is binding on Customer and Customer’s estate, legal representatives, successors
and assigns and inures to the benefit of FIMAT and its successors and assigns.
	 
	 	G.	 	Communications. Communications may be sent to Customer by mail, telex,
telegraph, facsimile transmission, messenger, or other reasonable means at its current
address shown on FIMAT’s records, and are deemed received when Customer actually
receives them or 24 hours after they are sent, whichever first occurs. FIMAT, in its
sole discretion, may record, on tape or otherwise, any telephone conversation between
FIMAT and Customer involving their respective officers, agents and employees.
Customer hereby agrees and consents to such recording, with or without the use of an
automatic tone warning device, and waives any right Customer may have to object to the
use or admissibility into evidence of such recording in any legal proceeding between
Customer and FIMAT or in any other proceeding to which FIMAT is a party or in which
FIMAT’s records are subpoenaed. Customer acknowledges that FIMAT may erase such
recordings after a reasonable period of time. FIMAT shall be entitled to rely on any
instructions, notices and communications, whether oral or in writing, that it believes
to be that of an individual authorized to act on behalf of Customer as authorized to
act on its behalf, and Customer shall be bound thereby. Customer hereby waives any
defense that any such instruction was not in writing as may be required by the Statute
of Frauds or any other similar law, rule or regulation. Customer will indemnify FIMAT
and hold FIMAT harmless from and against all liabilities, penalties, losses, and
expenses, including legal expenses, incurred by FIMAT as a result of FIMAT’s acting
upon such instructions.
	 
	 	H.	 	Non-Execution. Any failure by Customer to duly sign this Agreement is not a
waiver by FIMAT of any rights it otherwise has against Customer.
	 
	 	I.	 	FIMAT Has No Responsibility for Advice. FIMAT is not acting as fiduciary,
foundation manager, commodity pool operator, commodity trading advisor or investment
adviser in respect of any Account(s) opened by Customer and FIMAT shall have no
responsibility hereunder for compliance with any law or regulation governing the
conduct of fiduciaries, foundation managers, commodity pool operators, commodity
trading advisors or investment advisers. Customer will not enter into any transaction
with FIMAT, and will not hold FIMAT responsible for losses, as a result of any
prediction, recommendation, or representation made by any representative of FIMAT.
Any information or advice communicated by FIMAT, although based upon information from
sources FIMAT believes to be reliable, may be incomplete or inaccurate, may not be
verified, and may be changed without notice to Customer. FIMAT makes no
representation as to the accuracy,

 

 

	 	 	 	completeness, reliability or prudence of any such information or advice or as to
the tax consequences of Customer’s futures or options trading.

	 	J.	 	Appointment of Agent. Customer’s appointment of an agent on the “Trading and
Fee Payment Authorization Limited to Purchases and Sales of Commodities” form
(“Trading Authorization”), if applicable, is notice to FIMAT that the person so
designated (the “Agent”) is Customer’s agent in respect of Customer’s Account(s) with
FIMAT, with complete authority on Customer’s behalf to place orders for purchases and
sales, including short sales, for cash or on margin, of Commodities other items in
respect of which Customer may from time to time enter into transactions in one or more
of Customer’s Account(s) with FIMAT, for immediate or future delivery, to effect
delivery and performance of the orders and of the obligations undertaken in connection
with the orders, to borrow funds from FIMAT to finance any of the transactions, to
lend or pledge Customer’s properties with FIMAT and otherwise to secure Customer’s
Liabilities, withdraw or direct the payment of monies, securities, commodities, or
other property from Customer’s Account(s) with FIMAT, including to compensate Agent
for its services, to settle Customer disputes with FIMAT or between Customer or any
other party with whom FIMAT deals for Customer or with whom Customer deals through
FIMAT as broker for the third party, and to sign and deliver on Customer’s behalf
notices and other documents and to take all other actions necessary or desirable to
carry out the terms of this Agreement. Customer agrees to notify FIMAT promptly in
writing of the revocation or modification of the Agent’s authority. Customer will
indemnify FIMAT and hold FIMAT harmless from and against all liabilities, penalties,
losses, and expenses, including legal expenses, incurred by FIMAT in acting as
instructed by the Agent and in continuing to act in reliance on the Trading
Authorization after revocation or modification but prior to FIMAT’s receipt of written
notice thereof.
	 
	 	K.	 	Termination. Customer may terminate this Agreement, at any time when
Customer has no Liabilities and no open positions which could give rise to subsequent
Liabilities, upon the actual receipt by FIMAT of written notice of termination. FIMAT
may terminate this Agreement at any time upon mailing or delivery of written notice of
termination to Customer, provided that any such termination will not affect any
transactions theretofore entered into and will not relieve either party of any
obligations in connection with any debt or credit balance or other liability or
obligation incurred prior to the termination.
	 
	 	L.	 	Multiple Parties. If any Account(s) established pursuant to this Agreement
is on behalf of more than one person:

	 	1.	 	each signing person is jointly and severally liable for the
full and timely performance of all the obligations of all signing persons in
connection with this Agreement and any account established and any transaction
effected under this Agreement; and the terms hereof shall survive the legal
incompetence or death of any or all signing persons;
	 
	 	2.	 	in connection with any Account(s) established under this
Agreement, FIMAT may act upon any order, request or instruction from any one
signing person without the necessity of confirmation from any other;
	 
	 	3.	 	the delivery of any report, statement, notice or other
communication to any one signing person is deemed to have been to all of the
signing persons;
	 
	 	4.	 	FIMAT may deliver any Collateral of any of the signing
persons to any one or more of the signing persons, and make payments from any
Account(s) established pursuant to this Agreement to or upon the order or
direction of any one of them, and FIMAT is under no obligation to inquire into
the purpose of any request for

 

 

	 	 	 	the delivery of any such Collateral or the making of any such payment, or
to see to the disposition or application thereof; and

	 	5.	 	unless FIMAT is advised otherwise in writing, the interest of
the signing persons in any Account(s) established under this Agreement shall
be deemed to be a joint tenancy with rights of survivorship and not a tenancy
in common.

	 	M.	 	Severability. If any provision of this Agreement, or the application of such
provision to any person or circumstances, is held invalid, the remainder of this
Agreement, and the application of such provision to persons or circumstances other
than those as to which it is held invalid, shall not be affected thereby.
	 
	 	N.	 	Captions. Captions used in this Agreement are used for convenience and
neither form an integral part of this Agreement nor limit the applicability or affect
the meaning of any of the Agreement’s provisions.

	VI.	 	ELECTRONIC TRADING SYSTEMS
	 
	 	 	FIMAT may make available to Customer the ability to trade, directly
or indirectly (in whole or in part), through electronic trading
systems (ETS) such as GLOBEX or ACCESS or other electronic systems.
The sponsoring organizations or such systems may make certain
information available and in some cases require special disclosures
for these systems. To the extent these disclosures are required and
other information is available, it has been set forth in the
accompanying booklet entitled “Exchange Disclosures and Notices,”
which Customer acknowledges receiving by signing below.

	VII.	 	ACCEPTANCE OF AGREEMENT
	 
	 	 	This Agreement shall not be deemed to be accepted by FIMAT or become
a binding contract between Customer and FIMAT until approved by a
duly authorized officer of FIMAT in writing in accordance with its
internal procedures. Customer represents, unless Customer has
executed the Joint Tenants Agreement; the Partnership Authorization;
the Certificate of Corporate Resolution; or the Trust Authorization,
that this is an individual account and no one else has an interest
in this account and Customer has authority and capacity to enter
into this Agreement.

	VIII.	 	OTHER AGREEMENTS AMONG THE PARTIES; CONFLICTS
	 
	 	 	Customer acknowledges that in addition to this Agreement, FIMAT may
request that Customer and/or any Affiliate of Customer to execute
and deliver such agreement(s), instrument(s) and document(s) as
FIMAT may prescribe, which agreement(s), instrument(s) and documents
upon their execution, shall become an Other Agreement. In the event
of a conflict between the provisions of this Agreement and the
provisions of any Other Agreement, the provisions of this Agreement
shall govern to the extent the underlying transactions relate to
futures contracts or options thereon.

 

 

	IX.	 	FOR HEDGE CUSTOMERS ONLY
	 
	 	 	CUSTOMER WARRANTS, BY INITIALLING IN A BOX BELOW, THAT IT WILL
ENGAGE IN BONA FIDE HEDGING TRANSACTIONS PURSUANT TO CFTC
REGULATION 1.3(z). IN THE EVENT OF BANKRUPTCY, CUSTOMER PREFERS
THAT THE TRUSTEE (PLEASE INITIAL CHOICE)

	 	 	 	 	 	 	 	 	 	 	 
	LIQUIDATE
	 	  	 	 
LIQUIDATE
 	 	  	 	NOT	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

OPEN COMMODITY CONTRACTS IN CUSTOMER’S HEDGE ACCOUNT WITHOUT SEEKING ITS INSTRUCTIONS.

PLEASE ACKNOWLEDGE YOUR AGREEMENT AND CONSENT TO THIS CUSTOMER AGREEMENT BY SIGNING BELOW.

BY SIGNING BELOW, CUSTOMER ALSO ACKNOWLEDGES THAT CUSTOMER HAS RECEIVED AND UNDERSTANDS THE
FOLLOWING ATTACHED DISCLOSURE STATEMENT PRESCRIBED BY THE CFTC:

Please initial if received and understood:

	 	 	 	 	 	 	 
	 	 	 	 	Risk Disclosure Statement

for Futures and Options

Attached at pg. 1

ACCOUNT NAME: _____________________________

	 	 	 	 	 	 	 
	BY:

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	Authorized Signature
	 	Date
	 	Name (Please Print)
	 
	 	 	 	 	 	 
	BY:

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	Authorized Signature
	 	Date
	 	Name (Please Print)EX-10.3 FORM OF ADMINISTRATION AGREEMENT

 

Exhibit 10.3

SERVICES AGREEMENT

     AGREEMENT made as of _____, 2007, by and between each Fund listed on Exhibit A (each a “Fund” and collectively the “Funds”), and The Bank of New York, a New York
banking organization (“BNY”).

W I T N E S S E T H :

     WHEREAS, each Fund desires to retain BNY to provide the services described herein, and BNY is
willing to provide such services, all as more fully set forth below;

     NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the
parties hereby agree as follows:

     1. Appointment.

     Each Fund hereby appoints BNY for the term of this Agreement as its agent to perform the
services described on Schedule I or Schedule II hereto. BNY hereby accepts such appointment and
agrees to perform the duties hereinafter set forth.

     2. Definitions.

     Whenever used in this Agreement, the following words shall have the meanings set forth below:

          (a) “Authorized Person” shall be any person, whether or not an officer or employee of the
Fund, duly authorized by a Fund to execute any Certificate or to give any Oral Instruction, such
persons to be designated in a Certificate annexed hereto as Exhibit B hereto or such other
Certificate as may be received by BNY from time to time.

          (b) “BNY Affiliate” shall mean any office, branch or subsidiary of The Bank of New York
Company, Inc.

          (c) “Book-Entry System” shall mean the Federal Reserve/Treasury book-entry system for
receiving and delivering securities, its successors and nominees.

 

          (d) “Business Day” shall mean for a Fund any day described in such Fund’s Confidential
Offering Memorandum (as hereinafter defined) as a day on which such Fund is open for business.

          (e) “Certificate” shall mean any notice, instruction, or other instrument in writing,
authorized or required by this Agreement to be given to BNY, which is actually received by BNY by
letter or facsimile transmission and signed on behalf of a Fund by an Authorized Person or a person
reasonably believed by BNY to be an Authorized Person.

          (f) “Instructions” shall mean communications transmitted by electronic or telecommunications
media, including S.W.I.F.T., computer-to-computer interface, dedicated transmission lines, or other
mutually agreed upon means.

          (g) “Oral Instructions” shall mean verbal instructions received by BNY from an Authorized
Person or from a person reasonably believed by BNY to be an Authorized Person.

     3. Representations and Warranties.

     Each Fund hereby represents and warrants to BNY, which representations and warranties shall
be deemed to be continuing and repeated on each day on which BNY is acting hereunder, that:

          (a) It is duly organized and existing under the laws of the jurisdiction of its organization,
with full power to carry on its business as now conducted, to enter into this Agreement and to
perform its obligations hereunder;

          (b) This Agreement has been duly authorized, executed and delivered by it in accordance with
all requisite action and constitutes its valid and legally binding obligation, enforceable against
it in accordance with its terms;

          (c) It is conducting its business in compliance with all applicable laws and regulations and
has obtained all regulatory licenses, approvals and consents necessary to carry on its business as
now conducted; there is no statute, regulation, rule, order or judgment binding on it and no
provision of its charter or by-laws, nor of any mortgage, indenture, credit agreement or

- 2 -

 

other contract binding on it or affecting its property which would prohibit its execution or
performance of this Agreement;

          (d) To the extent the performance of any services described in Schedule II attached hereto
by BNY in accordance with the then effective Confidential Offering Memorandum (as
hereinafter defined) would violate any applicable laws or regulations, it shall immediately so
notify BNY in writing and thereafter shall either furnish BNY with the appropriate values of
securities, net asset value or other computation, as the case may be, or, subject to the prior
approval of BNY, instruct BNY in writing to value securities and/or compute net asset value or
other computations in a manner it specifies in writing, and either the furnishing of such values or
the giving of such instructions shall constitute its representation that the same is consistent with
all applicable laws and regulations and with its Confidential Offering Memorandum;

          (e) It has implemented, and is acting in accordance with, procedures reasonably designed to
ensure that it will disseminate to all market participants, other than Authorized Participants (as
defined in its Confidential Offering Memorandum), each calculation of net asset value provided by
BNY hereunder to Authorized Participants at the time BNY provides such calculation to Authorized
Participants;

          (f) It will not use the services provided by BNY hereunder in any manner that is, or will
result in, a violation of any law, rule or regulation applicable to it;

          (g) It is fully informed of the protections and risks associated with various methods of
transmitting Instructions and Oral Instructions and delivering Certificates to BNY, shall, and
shall cause each Authorized Person, to safeguard and treat with extreme care any user and
authorization codes, passwords and/or authentication keys, understands that there may be more
secure methods of transmitting or delivering the same than the methods selected by it, agrees that
the security procedures (if any) to be utilized provide a commercially reasonable degree of
protection in light of its particular needs and circumstances, and acknowledges and agrees that
Instructions may be presumed by BNY to have been given by person(s) duly authorized, and may be
acted upon as given; and

- 3 -

 

          (h) It has established and presently maintains policies and procedures requiring it to
obtain and verify information about the identity of its members and which are reasonably designed
to ensure that it is not being used as a conduit for money laundering or other illicit purposes;
and it has verified the identity of each member and made reasonable inquiries regarding the source
of funds credited to such Account, and to the best of the its knowledge, no transaction through
any Account is prohibited by applicable law, regulation or rule.

     4. Delivery of Documents.

          (a) Each Fund will promptly deliver to BNY true and correct copies of each of the following
documents as currently in effect and will promptly deliver to it all future amendments and
supplements thereto, if any:

               (i) Its Organizational documents and all amendments thereto (the “Charter”);

               (ii) Its Operating Agreement, Articles of Association or Limited Liability Company
Agreements, as applicable, and all amendments thereto;

               (iii) Resolutions of its managers or other governing body authorizing the execution, delivery
and performance of this Agreement by the Fund;

               (iv) Its Confidential Offering Memorandum relating to it and its membership interests (the
“Confidential Offering Memorandum”);

               (v) True and correct copies of any material contract between it and any third party
(collectively, “Material Contracts”);

               (vi) Copies of all filings required to be filed by the Fund with an official body or office
(collectively, “Required Filings”); and

               (vii) An opinion of its outside counsel, in form and substance satisfactory to BNY and
addressed to BNY, with respect to its status (i.e. whether registered or qualified, or exempt from
registration or qualification) under the Investment Company Act of 1940, as amended (“the ‘40
Act”), the Securities Exchange Act of 1934 (“the ‘34 Act”), and the

- 4 -

 

Trust Indenture Act of 1939, as amended, and the status (i.e. whether registered or exempt
from registration) of its membership interests under the Securities Act of 1933, as amended and
the
‘34 Act.

          (b) Each copy of the Charter shall be certified by an appropriate governmental representative
of the jurisdiction of organization, and if the Charter is required by law also to be filed with a
county or other officer or official body, a certificate of such filing shall be filed with a
certified copy submitted to BNY. Each copy of the Operating Agreement, Confidential Offering
Memorandum, Material Contracts and Required Filings, and all amendments thereto, shall be certified
by the manager, Secretary or an Assistant Secretary of the Fund.

          (c) It shall be the sole responsibility of each Fund to deliver to BNY from time to time its
then currently effective Confidential Offering Memorandum and BNY shall not be deemed to have
notice of any information contained therein until it is actually received by
BNY.

     5. Duties and Obligations of BNY.

          (a) Subject to the direction and control of each Fund and the provisions of this Agreement,
BNY shall provide to such Fund (i) the administrative services set forth on Schedule I attached
hereto, and (ii) the valuation and computation services listed on Schedule II attached hereto.

          (b) In performing hereunder, BNY shall provide, at its expense, office space, facilities,
equipment and personnel.

          (c) BNY shall not provide services relating to the management, investment advisory or
sub-advisory functions of any Fund, distribution of membership interests of any Fund, or other
services normally performed by the Fund’s counsel or independent auditors.

          (d) Upon receipt of a Fund’s prior written consent (which shall not be unreasonably withheld),
BNY may delegate any of its duties and obligations hereunder to such Fund to any delegee or agent
whenever and on such terms and conditions as it deems necessary or appropriate. Notwithstanding the
foregoing, no Fund’s consent shall be required for any such delegation to any other subsidiary of
The Bank of New York Company, Inc. (hereinafter a “BNY

- 5 -

 

Affiliate”) notwithstanding the domicile of such Bank Affiliate, and BNY shall not be liable
for any loss or damage arising out of, or in connection with, the actions or omissions to act of
any delegee or agent utilized hereunder so long as BNY acts in good faith and without negligence or
willful misconduct in the selection of such delegee or agent, provided that BNY shall be liable for
the acts or omissions of any BNY Affiliate to the same extent it would be liable under the terms
hereof had it committed such act or omission and not delegated the same, and BNY shall notify each
affected Fund upon any such delegation to a BNY Affiliate.

          (e) Each Fund shall cause its officers, managers, advisors, sponsor,
distributor, legal counsel, independent accountants, current administrator (if any) and transfer
agent to cooperate with BNY and to provide BNY, upon request, with such information, documents and
advice relating to that Fund as is within the possession or knowledge of such persons in order to
enable BNY to perform its duties hereunder. In connection with its duties hereunder, BNY shall be
entitled reasonably to rely, and shall be held harmless by each Fund when acting in reliance, upon
the instructions, advice or any documents relating to a Fund provided to BNY by any of the
aforementioned persons. BNY shall not be liable for any loss, damage or expense resulting from or
arising out of the failure of a Fund to cause any information, documents or advice to be provided
to BNY as provided herein, provided BNY acts without negligence or willful misconduct. All fees or
costs charged by such persons shall be borne by the relevant Fund.

          (f) Nothing in this Agreement shall limit or restrict BNY, any affiliate or BNY Affiliate or
any officer or employee thereof from acting for or with any third parties and providing services
similar or identical to some or all of the services provided hereunder.

          (g) Each Fund shall furnish BNY with any and all instructions, explanations, information,
specifications and documentation deemed necessary by BNY in the performance of its duties
hereunder, including, without limitation, the amounts or written formula for calculating the
amounts and times of accrual of Fund liabilities and expenses. BNY shall not be required to include
as Fund liabilities and expenses, nor as a reduction of net asset value, any accrual for any
federal, state, or foreign income taxes unless the Fund shall have specified to BNY the precise
amount of the same to be included in liabilities and expenses or used to reduce net asset value.

- 6 -

 

Each Fund shall also furnish BNY with bid, offer, or market values of Securities if BNY notifies
such Fund that same are not available to BNY from a security pricing or similar service utilized,
or subscribed to, by BNY which BNY in its judgment deems reliable at the time such information is
required for calculations hereunder. At any time and from time to time, the Fund also may furnish
BNY with bid, offer, or market values of Securities and instruct BNY to use such information in its
calculations hereunder. BNY shall at no time be required or obligated to commence or maintain any
utilization of, or subscriptions to, any securities pricing or similar service. In no event shall
BNY be required to determine, or have any obligations with respect to, whether a market price
represents any fair or true value, nor to adjust any price to reflect any events or announcements,
including, without limitation, those with respect to the issuer thereof, it being agreed that all
such determinations and considerations shall be solely for the Fund.

          (h) BNY may apply to an officer of a Fund for written instructions with respect to any matter
arising in connection with BNY’s performance hereunder for such Fund, and BNY shall not be liable
for any action taken or not taken by it in good faith in accordance with such instructions. Such
application for instructions may, at the option of BNY, set forth in writing any action proposed
to be taken or omitted to be taken by BNY with respect to its duties or obligations under this
Agreement and the date on and/or after which such action shall be taken, and BNY shall not be
liable for any action taken or omitted to be taken in accordance with a proposal included in any
such application on or after the date specified therein unless, prior to taking or omitting to
take any such action, BNY has received written instructions in response to such application
specifying the action to be taken or omitted.

          (i) BNY may consult with counsel to a Fund or its own counsel, at such Fund’s expense, and
shall be fully protected with respect to anything done or omitted by it in good faith after
consultation with the Fund in accordance with the advice or opinion of such counsel.

          (j) Notwithstanding any other provision contained in this Agreement, but to the extent
expressly otherwise provided in Schedules I or II attached hereto, BNY shall have no duty or
obligation to with respect to, including, without limitation, any duty or obligation to determine,
or advise or notify a Fund of: (i) the taxable nature of any distribution or amount

- 7 -

 

received or deemed received by, or payable to, such Fund, (ii) the taxable nature or effect on such
Fund or its members of any corporate actions, class actions, tax reclaims, tax refunds or similar
events, (iii) the taxable nature or taxable amount of any distribution or other amount paid,
payable or deemed paid, by such Fund to its members; or (iv) the effect under any federal, state,
foreign, or other applicable income tax laws of such Fund making or not making any distribution or
other payment, or any election with respect thereto.

          (k) BNY, in performing the services required of it under the terms of this Agreement, shall
be entitled reasonably to rely fully on the accuracy and validity of any and all instructions,
explanations, information, specifications and documentation furnished to it by a Fund and shall
have no duty or obligation to review the accuracy, validity or propriety of such instructions,
explanations, information, specifications or documentation, including, without limitation,
evaluations of securities; the amounts or formula for calculating the amounts and times of accrual
of a Fund’s liabilities and expenses; the amounts receivable and the amounts payable on the sale
or purchase of Securities; and amounts receivable or amounts payable for the sale or redemption of
Fund membership interests effected by or on behalf of a Fund. In the event BNY’s computations
hereunder rely, in whole or in part, upon information, including, without limitation, bid, offer
or market values of securities or other assets, or accruals of interest or earnings thereon, from
a pricing or similar service utilized, or subscribed to, by BNY which BNY in its judgment deems
reliable, or from a broker-dealer selected by BNY, BNY shall not be responsible for, under any
duty to inquire into, or deemed to make any assurances with respect to, the accuracy or
completeness of such information. Without limiting the generality of the foregoing, BNY shall not
be required to inquire into any valuation of securities or other assets by a Fund or any third
party described in this sub-section (k) even though BNY in performing services similar to the
services provided pursuant to this Agreement for others may receive different valuations of the
same or different securities of the same issuers.

          (1) BNY, in performing the services required of it under the terms of this Agreement, shall
not be responsible for determining whether any interest accruable to a Fund is or will be actually
paid, but will accrue such interest until otherwise instructed by the Fund.

- 8 -

 

          (m) Subject to the provisions of the Agreement, BNY shall compute the net
asset value per share of membership interest of each Fund and shall value the Securities held by
such Fund at such times and dates and in the manner specified in the then currently effective
Confidential Offering Memorandum of such Fund, except that notwithstanding any language in the
Confidential Offering Memorandum, in no event shall BNY be required to determine, or have any
obligations with respect to, whether a market price represents any fair or true value, nor to
adjust any price to reflect any events or announcements, including, without limitation, those with
respect to the issuer thereof, it being agreed that all such determinations and considerations
shall be solely for each Fund. BNY shall provide a report of such net value to the Fund and
Authorized Participants at the respective times agreed to between the parties from time to tune.
To the extent valuation of Securities or computation of a Fund’s net asset value as specified in
the Fund’s then currently effective Confidential Offering Memorandum is at any time
inconsistent with any applicable laws or regulations, such Fund shall immediately so notify BNY in
writing and thereafter shall either furnish BNY at all appropriate times with the values of such
Securities and net asset value, or subject to the prior approval of BNY, instruct BNY in writing
to value Securities and compute net asset value in a manner which such Fund then represents in
writing to be consistent with all applicable laws and regulations. Such Fund may also from time to
time, subject to the prior approval of BNY, instruct BNY in writing to compute the value of the
Securities or net asset value in a manner other than as specified in this sub-section (m). By
giving such instruction, such Fund shall be deemed to have represented that such instruction is
consistent with all applicable laws and regulations and its then currently effective Confidential
Offering Memorandum. Each Fund shall have sole responsibility for determining the method of
valuation of Securities and the method of computing net asset value.

          (n) In providing the services hereunder BNY is authorized to utilize any legal, tax or other
regulatory, compliance, or monitoring services, in each case not a BNY Affiliate, reasonably
believed by BNY to be reliable to provide information. Each Fund agrees that BNY shall not be
liable for any loss, damage or expense incurred as a result of errors or omissions of any vendor
utilized by BNY or any permitted delegee or agent hereunder, and that no such vendor shall be an
agent or delegee of BNY.

- 9 -

 

          (o) BNY shall have no duties or responsibilities whatsoever except such duties and
responsibilities as are specifically set forth in this Agreement and Schedules I and II attached
hereto, and no covenant or obligation shall be implied against BNY in connection with this
Agreement.

     6. Allocation of Expenses.

     Except as otherwise provided herein, all costs and expenses arising or incurred in connection
with the performance of this Agreement shall be paid by each Fund, including but not limited to,
organizational costs and costs of maintaining its existence, taxes, interest, brokerage fees and
commissions, insurance premiums, compensation and expenses of such Fund’s manager(s), members,
officers or employees, legal, accounting and audit expenses, management, advisory, sub-advisory,
administration and shareholder servicing fees, charges of custodians, transfer and dividend
disbursing agents, expenses (including clerical expenses) incident to the issuance, redemption or
repurchase of Fund membership interests, fees and expenses incident to the registration or
qualification under federal, state or other applicable securities laws of each Fund or its
membership interests, costs (including printing and mailing costs) of preparing and distributing
any materials, reports, notices and proxy material to the Fund’s members, all expenses incidental
to holding meetings of the Fund’s managers and members, and extraordinary expenses as may arise,
including litigation affecting the Fund and legal obligations relating thereto for which the Fund
may have to indemnify its manager(s), members, or officers.

     7. Standard
of Care; Indemnification.

          (a) BNY shall not be liable for any costs, expenses, damages, liabilities or claims,
including attorneys’ and accountants’ fees (collectively, “Losses”), incurred by or asserted
against a Fund, except those Losses arising out of BNY’s own gross negligence or willful
misconduct. In no event shall BNY be liable to a Fund or any third party for special, indirect or
consequential damages, or lost profits or loss of business, arising under or in connection with
this Agreement, even if previously informed of the possibility of such damages and regardless of
the form of action, nor shall BNY be liable for (i) for acting in accordance with any Certificate
or Oral Instructions actually received by BNY and reasonably believed by BNY

 - 10 -

 

to be
given by an Authorized Person; (ii) for acting in
accordance with Instructions; (iii) for
presuming that all instructions that are Instructions and are not contained in a Certificate or
Oral Instructions are given only by person(s) duly authorized; (iv) for relying upon prices
provided by any third party pricing service or broker-dealer believed by BNY to be reliable; (v)
subject to Section 11 hereof, for any Losses due to forces beyond the control of BNY, including
without limitation strikes, work stoppages, acts of war or terrorism, insurrection, revolution,
nuclear or natural catastrophes or acts of God, or interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services; (vi) for any Losses arising
from the applicability of any law or regulation now or hereafter in effect; or (vii) for any
Losses, resulting from, arising out of, or in connection with its performance hereunder, including
its actions or omissions, the incompleteness or inaccuracy of any specifications or other
information furnished by or on behalf of a Fund, or for delays caused by circumstances beyond BNY’s
reasonable control, unless such Loss arises out of the gross negligence or willful misconduct of
BNY.

          (b) Each Fund shall indemnify and hold harmless BNY from and against any and all costs,
expenses, damages, liabilities and claims (including claims asserted by such Fund), and reasonable
attorneys’ and accountants’ fees relating thereto, which are sustained or incurred or which may be
asserted against BNY, by reason of or as a result of any action taken or omitted to be taken by
BNY in good faith hereunder or in reliance upon (i) any law, act, regulation or interpretation of
the same, issued by a court or governmental agency, (ii) a Fund’s Confidential Offering
Memorandum, (iii) any instructions of an officer of a Fund, or (iv) any opinion of legal counsel
for a Fund or BNY, or arising out of transactions or other activities of a Fund which occurred
prior to the commencement of this Agreement; provided, that a Fund shall not indemnify BNY
for costs, expenses, damages, liabilities or claims for which BNY is liable under preceding
sub-section 7(a). This indemnity shall be a continuing obligation of each Fund, its successors and
assigns, notwithstanding the termination of this Agreement. Without limiting the generality of the
foregoing, each Fund shall indemnify BNY against and save BNY harmless from any loss, damage or
expense, including counsel fees and other costs and expenses of a defense against any claim or
liability, arising from any one or more of the following:

               (i) Errors in records or instructions, explanations, information,

- 11 -

 

specifications or documentation of any kind, as the case may be, supplied to BNY by any third
party described above or by or on behalf of such Fund;

               (ii) Action or inaction taken or omitted to be taken by BNY pursuant to any Certificate,
Instructions or Oral Instructions of such Fund or otherwise without negligence or willful
misconduct;

               (iii) Any action taken or omitted to be taken by BNY in good faith after consultation with
the Fund in accordance with the advice or opinion of counsel for such Fund or its own counsel;

               (iv) Any improper use by such Fund or its agents, distributor or investment advisor of any
valuations or computations supplied by BNY pursuant to this Agreement;

               (v) The method of valuation of the securities and the method of computing such Fund’s net
asset value; or

               (vi) Any
valuations of securities or net asset value provided by such Fund.

          (c) Actions taken or omitted in reliance on oral or written instructions, or upon any
information, order, indenture, membership certificate, power of attorney, assignment, affidavit
or other instrument reasonably believed by BNY to be genuine or bearing the signature of a person
or persons reasonable believed to be authorized to sign, countersign or execute the same, or upon
the opinion of legal counsel for the Fund or its own counsel, shall be conclusively presumed to
have been taken or omitted in good faith.

     8. Compensation
and Reimbursements.

     For the services provided hereunder, each Fund agrees to pay BNY such compensation as is
mutually agreed from time to time and such out-of-pocket expenses (e.g., telecommunication
charges, postage and delivery charges, record retention costs, reproduction charges and
transportation and lodging costs) as are incurred by BNY in performing its duties hereunder.
Except as hereinafter set forth, compensation shall be calculated and accrued daily and paid
monthly. [Each Fund authorizes BNY to debit such Fund’s custody account for all amounts due

- 12 -

 

and payable hereunder. BNY shall deliver to each Fund invoices for services rendered after debiting
such Fund’s custody account with an indication that payment has
been made.] Upon termination of this
Agreement before the end of any month, the compensation for such part of a month shall be prorated
according to the proportion which such period bears to the full monthly period and shall be payable
upon the effective date of termination of this Agreement. For the purpose of determining
compensation payable to BNY, each Fund’s net asset value shall be computed at the times and in the
manner specified in the Fund’s Confidential Offering Memorandum.

     9. Term of Agreement.

          (a) This Agreement shall continue until terminated by either BNY giving to a Fund, or a Fund
giving to BNY, a notice in writing specifying the date of such termination, which date shall be not
less than 90 days after the date of the giving of such notice. Upon termination hereof, the
affected Fund(s) shall pay to BNY such compensation as may be due as of the date of such
termination, and shall reimburse BNY for any disbursements and expenses made or incurred by BNY and
payable or reimbursable hereunder.

          (b) Notwithstanding the foregoing, BNY may terminate this Agreement upon 30 days prior written
notice to a Fund if such Fund [shall terminate its custody agreement with The Bank of New York], or
fail to perform its obligations hereunder in a material respect.

          (c) No
termination by a Fund shall constitute a termination by any other Fund.

     10. Authorized Persons.

     Attached hereto as Exhibit B are lists of persons duly authorized by each Fund to execute this
Agreement and give any written or oral instructions, or written or oral specifications, by or on
behalf of a Fund. From time to time a Fund may deliver a new Exhibit B to add or delete any person
and BNY shall be entitled to rely on the last Exhibit B actually received by BNY.

     11. Amendment.

     This Agreement may not be amended or modified in any manner except by a written agreement
executed by BNY and each Fund to be bound thereby, and authorized or approved by each Fund to be
bound thereby.

- 13 -

 

     12. Assignment.

     This Agreement shall extend to and shall be binding upon the parties hereto, and their
respective successors and assigns; provided, however, that this Agreement shall not be assignable
by the Fund without the written consent of BNY, or by BNY without the written consent of the Fund.

     13.
Governing Law; Consent to Jurisdiction.

     This Agreement shall be construed in accordance with the laws of the State of New York,
without regard to conflict of laws principles thereof. Each Fund hereby consents to the
jurisdiction of a state or federal court situated in New York City, New York in connection with
any dispute arising hereunder, and waives to the fullest extent permitted by law its right to a
trial by jury. To the extent that in any jurisdiction a Fund may now or hereafter be entitled to
claim, for itself or its assets, immunity from suit, execution, attachment (before or after
judgment) or other legal process, each Fund irrevocably agrees not to claim, and it hereby waives,
such immunity.

     14. Severability.

     In case any provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations shall not in any way be affected or impaired thereby, and if any
provision is inapplicable to any person or circumstances, it shall nevertheless remain applicable
to all other persons and circumstances. Each Fund is entering this Agreement on its own account
and no action by one Fund shall affect this Agreement with any other Fund.

     15. No Waiver.

     Each and every right granted to BNY hereunder or under any other document delivered hereunder
or in connection herewith, or allowed it by law or equity, shall be cumulative and may be
exercised from time to time. No failure on the part of BNY to exercise, and no delay in
exercising, any right will operate as a waiver thereof, nor will any single or partial exercise by
BNY of any right preclude any other or future exercise thereof or the exercise of any other right.

- 14 -

 

    16. Notices.

    All notices, requests, consents and other communications pursuant to this Agreement in
writing shall be sent as follows:

if to a Fund, at

Tom Fernandes

Head Trader

GreenHaven, LLC

3340 Peachtree Rd., Suite 1910

Atlanta, GA 30326

if to BNY, at

The Bank of New York 
One Wall
Street, 25th Floor

New York, New York 10286

Attention. Stephen Manners

Title: Vice President

or at such other place as may from time to time be designated in writing. Notices hereunder shall
be effective upon receipt.

     17. Counterparts.

     This Agreement may be executed in any number of counterparts, each of which shall be deemed
to be an original; but such counterparts together shall constitute only one instrument.

     18. Entire
Agreement.

     BNY and each Fund shall have no duties or responsibilities whatsoever except such duties and
responsibilities specifically set forth in this Agreement and no covenant or obligation shall be
implied against BNY or any Fund in connection with this Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused the foregoing instrument to be executed by
duly authorized persons, all as of the day and year first above written.

- 15 -

 

	 	 	 	 	 	 	 
	 	 	GreenHaven Continuous Commodity Index Fund	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Title:
	 	/s/ Ashmead Pringle
 

President
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 

- 16 -

 

EXHIBIT A

FUNDS

GreenHaven Continuous Commodity Index Fund

GreenHaven Continuous Commodity Index Master Fund

 

 

EXHIBIT B

     I, Director, of GreenHaven Continuous Commodity Index Fund a Statutory
Trust organized under the laws of Delaware, (the “Fund”), do hereby certify that:

     The following individuals serve in the following positions with the Fund, and each has been
duly elected or appointed by the Fund to each such position and qualified therefor in conformity
with the Fund’s Articles of Organization and Operating Agreement, and the signatures set forth
opposite their respective names are their true and correct signatures. Each such person is
authorized to give written or oral instructions or written or oral specifications by or on behalf
of the Fund to BNY.

	 	 	 	 	 	 	 	 	 
	Name	 	Position	 	Signature	 	 	 	 
	 
	Ashmead Pringle

	 	President
	 	/s/ Ashmead Pringle	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	Thomas Fernandes

	 	Director
	 	/s/ Thomas Fernandes
 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 

 

 

SCHEDULE I

ADMINISTRATIVE SERVICES

	1.	 	Provide periodic reports and other information to the sponsor and the sponsor’s accountants
to assist in the periodic updating of the Registration Statement, Prospectus, and the
preparation of Form 10-K and Form 10-Q and proxy materials, if any, with respect to the
Trust and each Fund.

	2.	 	Attend meetings of the Fund’s Board or its shareholders or members as requested from time to
time.

	3.	 	Subject to review and approval by Fund, establish appropriate expense accruals, maintain
expense files and coordinate the payment of invoices for Fund.

 

 

SCHEDULE II

VALUATION AND COMPUTATION SERVICES

     I. BNY shall maintain the following records on a daily basis in respect of Fund (or any
applicable Series).

	 	1.	 	Report of priced portfolio securities
	 
	 	2.	 	Statement of net asset value per share

     II. BNY shall maintain the following records on a monthly basis in respect of Fund (or any
applicable Series):

	 	1.	 	General Ledger
	 
	 	2.	 	General Journal
	 
	 	3.	 	Cash Receipts Journal
	 
	 	4.	 	Cash Disbursements Journal
	 
	 	5.	 	Subscriptions Journal
	 
	 	6.	 	Redemptions Journal

	 
	 	7.	 	Accounts Receivable Reports
	 
	 	8.	 	Accounts Payable Reports
	 
	 	9.	 	Transaction (Securities) Journal
	 
	 	10.	 	Broker Transaction Journal

	 
	 	11.	 	Holdings Ledger
	 
	 	12.	 	Buy-Sell Ledger (Broker’s Ledger)

 

 

APPENDIX I

THE BANK OF NEW YORK

ON-LINE COMMUNICATIONS SYSTEM (THE “SYSTEM”)

TERMS AND CONDITIONS

     1. License;
Use. (a) This Appendix I shall govern the Fund’s use of the System and
any computer software provided by BNY to the Fund in connection herewith (collectively, the“Software”). In the
event of any conflict between the terms of this Appendix I and the main body of this Agreement
with respect to the Fund’s use of the System, the terms of this Appendix I shall control.

     (b) Upon delivery to the Fund of Software and/or System access codes, BNY grants to the Fund a
personal, nontransferable and nonexclusive license to use the Software and the System solely for
the purpose of transmitting Written Instructions, receiving reports, making inquiries or otherwise
communicating with BNY in connection with the Account(s). The Fund shall use the Software and the
System solely for its own internal and proper business purposes and not in the operation of a
service bureau. Except as set forth herein, no license or right of any kind is granted to the Fund
with respect to the Software or the System. The Fund acknowledges that BNY and its suppliers retain
and have title and exclusive proprietary rights to the Software and the System, including any trade
secrets or other ideas, concepts, know-how, methodologies, or information incorporated therein and
the exclusive rights to any copyrights, trademarks and patents (including registrations and
applications for registration of either), or other statutory or legal protections available in
respect thereof. The Fund further acknowledges that all or a part of the Software or the System
may be copyrighted or trademarked (or a registration or claim made therefor) by BNY or its
suppliers. The Fund shall not take any action with respect to the Software or the System
inconsistent with the foregoing acknowledgments, nor shall the Fund attempt to decompile, reverse
engineer or modify the Software. The Fund may not copy, sell, lease or provide, directly or
indirectly, any of the Software or any portion thereof to any other person or entity without BNY’s
prior written consent. The Fund may not remove any statutory copyright notice or other notice
included in the Software or on any media containing the Software. The Fund shall reproduce any such
notice on any reproduction of the Software and shall add any statutory copyright notice or other
notice to the Software or media upon BNY’s request.

     (c) If the Fund subscribes to any database service provided by BNY in connection with its use
of the System, delivery of such database to the Fund shall constitute the granting by BNY to the
Fund of a non-exclusive, non-transferable license to use such database for so long as this Appendix
I is in effect. It is understood and agreed that any database supplied by BNY is derived from
sources which BNY believes to be reliable but BNY does not, and cannot for the fees charged,
guarantee or warrant that the data is correct, complete or current. All such databases are provided
as an accommodation by BNY to its customers and are compiled without any independent investigation
by BNY. However, BNY will endeavor to update and revise each database on a periodic basis as BNY,
in its discretion, deems necessary and appropriate. The Fund also agrees that the Fund will
promptly install all updates and revisions to each database which BNY provides and that BNY cannot
bear any responsibility whatsoever for the Fund’s failure to do so. BNY IS NOT RESPONSIBLE FOR ANY
RESULTS OBTAINED BY THE FUND FROM USE OF DATABASE SERVICES PROVIDED BY BNY.

     2. Equipment. The Fund shall obtain and maintain at its own cost and expense all
equipment and services, including but not limited to communications services, necessary for it to
utilize the Software and obtain access to the System, and BNY shall not be responsible for the
reliability or availability of any such equipment or services.

     3. Proprietary Information. The Software, any data base and any proprietary data,
processes, information and documentation made available to the Fund (other than which are or become
part of the public domain or are legally required to be made available to the public)
(collectively, the “Information”), are the exclusive and confidential property of BNY or its
suppliers. However, for the avoidance of doubt, reports generated by the Fund containing
information relating to the Account(s) are not deemed to be within the meaning of the term
“Information”. The Fund shall keep the Information confidential by using the same care and
discretion that the Fund

- 2 -

 

uses with respect to its own confidential property and trade secrets, but not less than
reasonable care. Upon termination of the Agreement or the licenses granted herein for any reason,
the Fund shall return to BNY any and all copies of the Information which are in its possession or
under its control. The provisions of this Section 3 shall not affect the copyright status of any of
the Information which may be copyrighted and shall apply to all information whether or not
copyrighted.

     4. Modifications. BNY reserves the right to modify the Software from time to time and
the Fund shall install new releases of the Software as BNY may direct. The Fund agrees not to
modify or attempt to modify the Software without BNY’s prior written consent. The Fund acknowledges
that any modifications to the Software, whether by the Fund or BNY and whether with or without
BNY’s consent, shall become the property of BNY.

     5. NO REPRESENTATIONS OR WARRANTIES. BNY AND ITS MANUFACTURERS AND SUPPLIERS MAKE NO
WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE SOFTWARE, THE SYSTEM, ANY SERVICES OR ANY
DATABASE, EXPRESS OR IMPLIED, IN FACT OR IN LAW, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CUSTOMER ACKNOWLEDGES THAT THE SOFTWARE, THE
SYSTEM, ANY SERVICES AND ANY DATABASE ARE PROVIDED “AS IS.” TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN NO EVENT SHALL BNY OR ANY SUPPLIER BE LIABLE FOR ANY DAMAGES, WHETHER DIRECT,
INDIRECT SPECIAL, OR CONSEQUENTIAL, WHICH THE FUND MAY INCUR IN CONNECTION WITH THE SOFTWARE,
SERVICES OR ANY DATABASE, EVEN IF BNY OR SUCH SUPPLIER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. IN NO EVENT SHALL BNY OR ANY SUPPLIER BE LIABLE FOR ACTS OF GOD, MACHINE OR COMPUTER
BREAKDOWN OR MALFUNCTION, INTERRUPTION OR MALFUNCTION OF COMMUNICATION FACILITIES, LABOR
DIFFICULTIES OR ANY OTHER SIMILAR OR DISSIMILAR CAUSE BEYOND THEIR REASONABLE CONTROL.

     6. Security;
Reliance; Unauthorized Use. BNY will establish security procedures to be
followed in connection with the System. The Fund understands and agrees that the security
procedures are intended to determine whether instructions received by BNY through the System are
authorized but are not (unless otherwise specified in writing) intended to detect any errors
contained in such instructions. The Fund will cause all persons utilizing the Software and the
System to treat all applicable user and authorization codes, passwords and authentication keys with
the highest degree of care and confidentiality. BNY is hereby irrevocably authorized to comply with
and rely upon on Written Instructions, whether or not authorized, received by it through the System
in accordance with the security procedures. The Fund acknowledges that it is its sole
responsibility to assure that only Authorized Persons use the System and that to the fullest extent
permitted by applicable law BNY shall not be responsible nor liable for any unauthorized use
thereof or for any losses sustained by the Fund arising from or in connection with the use of the
System or BNY’s reliance upon and compliance with Written Instructions received through the System.

     7. System Acknowledgments. BNY shall acknowledge through the System its receipt of
each transmission communicated through the System, and in the absence of such acknowledgment BNY
shall not be liable for any failure to act in accordance with such transmission and the Fund may
not claim that such transmission was received by BNY.

     8. EXPORT RESTRICTIONS. EXPORT OF THE SOFTWARE IS PROHIBITED BY UNITED STATES LAW.
THE FUND MAY NOT UNDER ANY CIRCUMSTANCES RESELL, DIVERT, TRANSFER, TRANSSHIP OR OTHERWISE DISPOSE
OF THE SOFTWARE (IN ANY FORM) IN OR TO ANY OTHER COUNTRY. IF BNY DELIVERED THE SOFTWARE TO CUSTOMER
OUTSIDE OF THE UNITED STATES, THE SOFTWARE WAS EXPORTED FROM THE UNITED STATES IN ACCORDANCE WITH
THE EXPORT ADMINISTRATION REGULATIONS. DIVERSION CONTRARY TO U.S. LAW IS PROHIBITED. The Fund
hereby authorizes BNY to report its name and address to government agencies to which BNY is
required to provide such information by law.

- 3 -

 

     9. Encryption. The Fund acknowledges and agrees that encryption may not be available
for every communication through the System, or for all data. The Fund agrees that BNY may
deactivate any encryption features at any time, without notice or liability to the Fund, for the
purpose of maintaining, repairing or troubleshooting the System or the Software.

     10. On-Line
Inquiry and Modification of Records. In connection with the Fund’s use of
the System, BNY may, at the Fund’s request, permit the Fund to enter data directly into a BNY
database for the purpose of modifying certain information maintained by BNY’s systems, including,
but not limited to, change of address information. To the extent that the Fund is granted such
access, the Fund agrees to indemnify and hold BNY harmless from all loss, liability, cost, damage
and expense (including attorney’s fees and expenses) to which BNY may be subjected or which may be
incurred in connection with any claim which may arise out of or as a result of changes to BNY
database records initiated by the Fund.

- 4 -

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