Document:

Exhibit 4.2

FORM OF

PARTICIPANT AGREEMENT

     This Participant Agreement (the “Agreement”), dated as of __________ 2011, is entered into by and among __________ (the “Authorized Participant”), each Delaware statutory trust set forth on Schedule A attached hereto (each a “Trust” and collectively, the “Trusts”), and Factor Capital Management, LLC, a Delaware limited liability company, as managing owner of the Trusts (the “Managing Owner”).

SUMMARY

     As provided in the
Amended and Restated Declaration of Trust and Trust Agreement of each Trust
(each, a “Trust Agreement,” collectively, the “Trust
Agreements”) as currently in effect and described in the Prospectus
(defined below), units of fractional undivided beneficial interest in and
ownership of each Trust (the “Shares”) may be created or redeemed in
aggregations (each aggregation, a “Basket”) as specified in the
Prospectus. Baskets are offered only pursuant to the registration statement of
each Trust on Form S-1, as amended (Registration Nos.: 333-164754, 333-164758,
333-164757, 333-164756 and 333-164755), as declared effective by the Securities
and Exchange Commission (“SEC”) and as the same may be amended from
time to time thereafter or any successor registration statement in respect of
Shares of each Trust (each, a “Registration Statement,” collectively,
the “Registration Statements”) together with the prospectus of each
Trust in the form filed with the SEC under Rule 424(b) under the Securities Act
of 1933, as amended (the “1933 Act”), after the effectiveness of each
Registration Statement (the “Prospectus”), and as supplemented from
time to time. Under each Trust Agreement, the Managing Owner is authorized to
issue Baskets to, and redeem Baskets from, Authorized Participants, only through
the facilities of The Depository Trust Company (“DTC” or the
“Depository”), or a successor depository, and only in exchange for
cash. This Agreement sets forth the specific procedures by which an Authorized
Participant may create or redeem Baskets.

     Capitalized terms used but not otherwise defined in this Agreement shall have the meanings assigned to such terms in the applicable Trust Agreement. To the extent there is a conflict between any provision of this Agreement and the provisions of a Trust Agreement, the provisions of the applicable Trust Agreement shall control. To the extent there is a conflict between any provision of this Agreement and the provisions of the Prospectus, the Prospectus shall control.

     To give effect to the foregoing premises and in consideration of the mutual covenants and agreements set forth below, the parties hereto agree as follows:

     Section 1. Order Placement. To place orders to create or redeem one or more Baskets, Authorized Participants must follow the procedures for creation and redemption referred to in Section 3 of this Agreement and the procedures described in Attachment A hereto (the “Procedures”), as each may be amended, modified or supplemented from time to time. The Managing Owner has delegated certain of its obligations hereunder to the Trusts’ distributor, currently Foreside Fund Services, LLC (the “Distributor”). The Distributor shall receive

Creation/Redemption Order Forms (as hereinafter defined) on behalf of each Trust. The Distributor shall also review each Creation/Redemption Order Form for completeness, accuracy and compliance with Sections 3 and 16, and Attachment A hereof and shall have the authorization to accept or reject such Creation/Redemption Order Forms as provided herein. Further, the Distributor shall make all deliveries provided for in Section 12(c) hereof.

     Section 2. Status of Authorized Participant. The Authorized Participant represents and warrants and covenants the following:

     (a) The Authorized Participant is a participant of DTC (as such a participant, a “DTC Participant”). If the Authorized Participant ceases to be a DTC Participant, the Authorized Participant shall give immediate notice to the Distributor and the Managing Owner of such event, and this Agreement shall terminate immediately as of the date the Authorized Participant ceased to be a DTC Participant.

     (b) Unless Section
2(d) applies, the Authorized Participant either (i) is registered as a
broker-dealer under the Securities Exchange Act of 1934, as amended (the
“1934 Act”), and is a member in good standing of the Financial
Industry Regulatory Authority (“FINRA”), or (ii) is exempt from
being, or otherwise is not required to be, licensed as a broker-dealer or a
member of FINRA, and in either case is qualified to act as a broker or dealer in
the states or other jurisdictions where the nature of its business so requires.
The Authorized Participant shall maintain any such registrations, qualifications
and membership in good standing, or, if applicable, exempt status, in full force
and effect throughout the term of this Agreement. The Authorized Participant
shall comply with all applicable United States federal laws, including without
limitation, the prospectus delivery requirements of Section 5 of the 1933 Act
and all applicable rules of the SEC, the laws of the states or other
jurisdictions concerned, and the rules and regulations promulgated thereunder,
and with the Constitution, By-Laws and Conduct Rules of FINRA, if it is a FINRA
member, and shall not offer or sell Shares in any state or jurisdiction where
they may not lawfully be offered and/or sold.

     (c) The Authorized
Participant understands and acknowledges that the proposed method by which
Baskets will be created and traded may raise certain issues under applicable
securities laws. The Authorized Participant understands and acknowledges that,
for example, because new Shares can be created and issued on an ongoing basis,
at any point during the life of a Trust, a “distribution,” as such
term is used in the 1933 Act, may be occurring. The Authorized Participant is
cautioned that some of its activities may result in its being deemed a
participant in a distribution in a manner that would render it a statutory
underwriter and subject it to the prospectus delivery and liability provisions
of the 1933 Act. The Authorized Participant should review the “Plan of
Distribution” section of the Prospectus and consult with its own counsel in
connection with entering into this Agreement and submitting an order for the
creation of Basket(s) on a Creation/Redemption Order Form.

     (d) If the Authorized Participant is offering or selling Shares in jurisdictions outside the several states, territories and possessions of the United States and is not otherwise required to be registered, qualified or a member of FINRA as set forth in Section 2(b) above, the Authorized Participant shall (i) comply with all applicable laws of the jurisdiction in which such offer and/or sale is made, (ii) comply with the full disclosure requirements of the 1933 Act, and the

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regulations promulgated thereunder, and (iii) conduct its business in accordance with the spirit of the FINRA Conduct Rules.

     (e) The Authorized
Participant further represents that its anti-money laundering program
(“AML Program”) is maintained consistent with all applicable
federal laws, rules and regulations, including the USA Patriot Act and rules
promulgated by the SEC, and that its AML Program, at a minimum, (i) designates a
compliance officer to administer and oversee the AML Program, (ii) provides
ongoing employee training, (iii) includes an independent audit function to test
the effectiveness of the AML Program, (iv) establishes internal policies,
procedures, and controls that are tailored to its particular business, (v)
includes a customer identification program consistent with the rules under
Section 326 of the USA Patriot Act, (vi) provides for the filing of all
necessary anti-money laundering reports including, but not limited to, currency
transaction reports and suspicious activity reports, (vii) provides for
screening all new and existing customers against reports and suspicious activity
reports, (viii) provides for screening all new and existing customers against
the Office of Foreign Asset Control list and any other government list that is
or becomes required under the USA Patriot Act, and (ix) allows for appropriate
regulators to examine its anti-money laundering books and records. The
Distributor shall verify the identity of each Authorized Person (as hereinafter
defined) of the Authorized Participant and maintain identification verification
and transactional records of the Authorized Persons in accordance with the
requirements of applicable laws and regulations.

     Section 3. Orders. (a) All orders to create or redeem Baskets shall be made in accordance with the terms of the Trust Agreement, this Agreement and the Procedures. Each party shall comply with such foregoing terms and procedures to the extent applicable to it. The Authorized Participant hereby consents to the use of recorded telephone lines whether or not such use is reflected in the Procedures and the Authorized Participant shall be provided with copies or transcripts of such recordings upon reasonable request. The Managing Owner may issue additional or other procedures from time to time relating to the manner of creating or redeeming Baskets which are not related to the Procedures, and the Authorized Participant shall comply with such procedures of which it has been notified in accordance with this Agreement.

     (b) The Authorized Participant acknowledges and agrees on behalf of itself and any party for which it is acting (whether such party is a customer or otherwise) that each order to create or redeem a Basket (a “Creation/Redemption Order Form” or an “Order”) may not be revoked by the Authorized Participant after its delivery to and acceptance by the Distributor. A form of Creation/Redemption Order Form is attached hereto as Exhibit B.

     (c) The Distributor shall have the absolute right, but shall have no obligation, to reject any Creation/Redemption Order Form or Creation Basket Capital Contribution (i) determined by the Distributor not to be in proper form; (ii) the acceptance or receipt of which could, in the opinion of counsel to the Managing Owner, be unlawful; or (iii) if circumstances outside the control of the Distributor or the Managing Owner, as applicable, make it, for all practical purposes, not feasible to process Creation Baskets. The Distributor shall reject a Creation/Redemption Order Form or Creation Basket Capital Contribution if it has been advised in writing by the Managing Owner that it believes that such order would have adverse tax consequences to any Trust or its shareholders. Distributor shall notify the Authorized Participant of any rejection of an order as soon as reasonably practicable. Neither the Managing Owner nor

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the Distributor shall be liable to any person by reason of the rejection of any Creation/Redemption Order Form or Creation Basket Capital Contribution.

     (d) The Distributor shall reject any Redemption Order the fulfillment of which counsel to the Managing Owner advises in writing that it would be illegal under applicable laws and regulations, in which case the Distributor shall notify the Authorized Participant of such rejection as soon as reasonably practicable. Neither the Managing Owner nor the Distributor shall have liability to any person for rejecting a Redemption Order in such circumstances.

     (e) The Managing Owner may, in its discretion, suspend the right of redemption, or postpone the applicable Redemption Settlement Time, (i) for any period during which the NYSE Arca, Inc. or any exchange on which a Trust’s assets are regularly traded is closed other than for customary weekend or holiday closings, or trading is suspended or restricted; (ii) for any period during which an emergency exists as a result of which delivery, disposal or evaluation of a Trust’s assets is not reasonably practicable; or (iii) for such other period as the Managing Owner determines to be necessary for the protection of the Beneficial Owners. The Managing Owner shall promptly notify the Distributor and the Authorized Participant of any action taken pursuant to this Section 3(e). The Managing Owner and the Distributor shall not liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.

     Section 4. Fees. In connection with each Order by an Authorized Participant to create or redeem one or more Baskets, the Authorized Participant agrees to pay the Transaction Fee prescribed in the Trust Agreement and/or the Prospectus (as applicable) with respect to such creation or redemption. The Transaction Fee may be adjusted from time to time as set forth in the Trust Agreement and/or the Prospectus (as applicable), provided, however, that the Authorized Participant shall be notified of any change in the Transaction Fee in advance of any such change. As described in the Procedures, the Authorized Participant agrees to pay an additional processing charge if the Authorized Participant fails timely to deliver the Creation Basket Capital Contribution or the Baskets, as the case may be.

     Section 5.
Authorized Persons. Concurrently with the execution of this Agreement and
from time to time thereafter, the Authorized Participant shall deliver to the
Distributor and the Managing Owner, notarized and duly certified as appropriate
by its secretary or other duly authorized person, a certificate in the form of
Exhibit A setting forth the names and signatures of all persons
authorized to give instructions relating to activity contemplated hereby or by
any other notice, request or instruction given on behalf of the Authorized
Participant (each, an “Authorized Person”). The Distributor and
the Managing Owner may accept and rely upon such certificate as conclusive
evidence of the facts set forth therein and shall consider such certificate to
be in full force and effect until the Distributor and the Managing Owner receive
a superseding certificate bearing a subsequent date. Upon the termination or
revocation of authority of any Authorized Person by the Authorized Participant,
the Authorized Participant shall give prompt written notice of such fact to the
Distributor and the Managing Owner and such notice shall be effective upon
receipt by Distributor and the Managing Owner. The Distributor shall issue to
each Authorized Person a unique personal identification number (the “PIN
Number”) by which such Authorized Person shall be identified and by
which instructions issued by the Authorized Participant to the Distributor
and/or the Managing Owner, as applicable, hereunder shall be authenticated. The
PIN Number shall be kept confidential by the

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Authorized Participant and shall only be provided to the Authorized Person and the Distributor. If, after issuance, the Authorized Person’s PIN Number is changed, the new PIN Number shall become effective on a date mutually agreed upon by the Authorized Participant and the Distributor. If for some reason, the Authorized Participant’s PIN Number is compromised, the Authorized Participant shall contact the Distributor immediately in order for a new one to be issued.

     Section 6. Redemption. The Authorized Participant represents and warrants that it shall not obtain an Order Number (as described in the Procedures) from the Distributor for the purpose of redeeming a Basket unless it first ascertains that (i) it or its customer, as the case may be, owns outright or has full legal authority and legal and beneficial right to tender for redemption the Baskets to be redeemed and to receive the entire proceeds of the redemption, and (ii) such Baskets have not been loaned or pledged to another party and are not the subject of a repurchase agreement, securities lending agreement or any other arrangement which would preclude the delivery of such Baskets to the Distributor on the Business Day following the Redemption Order Date.

     Section 7. Role of Authorized Participant. (a) The Authorized Participant acknowledges that, for all purposes of this Agreement and the Trust Agreement, the Authorized Participant shall be deemed to be an independent contractor and shall have no authority to act as agent for the Trusts, the Distributor or the Managing Owner in any matter or in any respect.

     (b) The Authorized Participant will make itself and its employees available, upon reasonable request, during normal business hours to consult with the Distributor and/or the Managing Owner or their designees concerning the performance of the Authorized Participant’s responsibilities under this Agreement.

     (c) With respect to any creation or redemption transaction made by the Authorized Participant pursuant to this Agreement for the benefit of any customer or any other DTC Participant or Indirect Participant, or any other Beneficial Owner, the Authorized Participant shall extend to any such party all of the rights, and shall be bound by all of the obligations, of a DTC Participant in addition to any obligations that it undertakes hereunder or in accordance with the Trust Agreement.

     (d) Upon reasonable
request by the Distributor or the Managing Owner, the Authorized Participant
will, subject to any limitations arising under federal or state laws or other
obligations it may have to its customers, provide the Distributor or the
Managing Owner written notice indicating the number of Shares that the
Authorized Participant may hold as record holder and the number of such Shares
that it holds for the benefit of other broker-dealers that clear and settle
transactions in Shares through the Authorized Participant, in each case as of
the date of such request, with respect to the Trusts. In addition, the
Authorized Participant agrees, upon request of the Distributor or the Managing
Owner, and subject to applicable laws, rules and regulations, to transmit to its
account holders who are Beneficial Owners of Shares, such written materials
received from the Distributor or the Managing Owner (including notices, annual
reports, disclosure or other informational or tax materials and any amendments
or supplements thereto and other communications) as may be required to be
transmitted to Beneficial Owners pursuant to the Trust Agreement or applicable
law, provided that the expenses associated with

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such transmissions shall be borne by the Managing
Owner in accordance with usual custom and practice in respect of such
communications. The Managing Owner agrees that the names, addresses and other
information concerning the Authorized Participant’s customers are and shall
remain the sole property of the Authorized Participant and the Managing Owner,
each Trust or any of their respective affiliates shall not use such names,
addresses or other information for any purpose except to the extent strictly
necessary to comply with applicable law and regulation. Notwithstanding the
foregoing, such names, addresses or other information shall not be deemed to be
the sole property of the Authorized Participant if it is obtained by the
Managing Owner or a Trust (i) from a source not known by it to be under any
obligation of confidentiality to the Authorized Participant, (ii) which was, is
or hereafter becomes part of the public domain without any violation of this
Agreement on the part of any Trust or the Managing Owner, (iii) the names and
address and other information are that of Shareholders of a Trust and were
independently compiled as a result thereof.

     (e) The Authorized
Participant agrees that, in connection with any sales of the Shares, it will not
charge a commission to its customers in excess of one percent (1%) of the total
amount of the sale.

     Section 8. Indemnification.

     (a) The Authorized
Participant hereby indemnifies and holds harmless each Trust, the Managing
Owner, the Distributor, the Transfer Agent and the Custodian and their
respective direct or indirect affiliates (as defined below) and their respective
directors, trustees, managing owners, partners, members, managers, officers,
employees and agents (each, an “AP Indemnified Party”) from and
against any losses, liabilities, damages, costs and expenses (including
reasonable attorneys’ fees and the reasonable costs of investigation)
incurred by such AP Indemnified Party as a result of or in connection with: (i)
any breach by the Authorized Participant of any provisions of this Agreement,
including its representations, warranties and covenants; (ii) any failure on the
part of the Authorized Participant to perform any of its obligations set forth
in this Agreement; (iii) any failure by the Authorized Participant to comply
with applicable laws and the rules and regulations of self-regulatory
organizations; (iv) any actions of such AP Indemnified Party in reliance upon
any instructions issued in accordance with the Procedures believed by the AP
Indemnified Party to be genuine and to have been given by the Authorized
Participant; or (v) (A) any representation by the Authorized Participant, its
employees or its agents or other representatives about the Shares, any AP
Indemnified Party or each Trust that is not consistent with the Trusts’
then-current Prospectus made in connection with the offer or the solicitation of
an offer to buy or sell Shares and (B) any untrue statement or alleged untrue
statement of a material fact contained in any research reports, marketing
material and sales literature described in Section 12(b) hereof or any alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading to the extent that such
statement or omission relates to the Shares, any AP Indemnified Party or the
Trusts, unless, in either case, such representation, statement or omission was
made or included by the Authorized Participant at the written direction of the
Managing Owner or is based upon any omission or alleged omission by the Managing
Owner to state a material fact in connection with such representation, statement
or omission necessary to make such representation, statement or omission not
misleading.

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     (b) The Managing
Owner hereby agrees to indemnify and hold harmless the Authorized Participant,
its respective subsidiaries, affiliates, directors, officers, employees and
agents, and each person, if any, who controls such persons within the meaning of
Section 15 of the 1933 Act (each, a “Managing Owner Indemnified
Party”) from and against any losses, liabilities, damages, costs and
expenses (including reasonable attorneys’ fees and the reasonable cost of
investigation) incurred by such Managing Owner Indemnified Party as a result of
(i) any breach by the Managing Owner of any provision of this Agreement that
relates to the Managing Owner; (ii) any failure on the part of the Managing
Owner to perform any obligation of the Managing Owner set forth in this
Agreement; (iii) any failure by the Managing Owner to comply with applicable
laws; or (iv) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement as originally declared effective by
the SEC or in any amendment thereof, or in any Prospectus, or in any amendment
thereof or supplement thereto, or arising out of or based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, except those
statements in the Registration Statement or the Prospectus based on information
furnished in writing by or on behalf of the Authorized Participant expressly for
use in the Registration Statement or the Prospectus.

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

     (d) The indemnity
agreements contained in this Section 8 shall remain in full force and effect
regardless of any investigation made by or on behalf of the Authorized
Participant, its partners, stockholders, members, directors, officers, employees
or any person (including each partner, stockholder, member, director, officer or
employee of such person) who controls the Authorized Participant within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, or by or on
behalf of the Managing Owner, its partners, stockholders, members, managers,
directors, officers, employees or any person who controls the Managing Owner
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act,
and shall survive any termination of this Agreement. The Managing Owner, for
itself and on behalf of each Trust, Managing Owner Indemnified Party, and the
Authorized Participant agree promptly to notify, to the extent practicable and
legally permissible, each other of the commencement of any Proceeding against it
or any AP Indemnified Party or Managing Owner Indemnified Party, as the case may
be, and, in the case of the Managing Owner, against any of the Managing
Owner’s officers or directors, in connection with the issuance and sale of
the Shares or in connection with the Registration Statement or the
Prospectus.

     Section 9. (a)
Limitation of Liability. In the absence of gross negligence, bad faith or
willful misconduct, none of the Managing Owner, whether acting on its own behalf
or on behalf of each Trust, the Distributor or the Authorized Participant shall
be liable to each other or to any other person, including any party claiming by,
through or on behalf of the Authorized Participant, for any losses, liabilities,
damages, costs or expenses arising out of any mistake or

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error in data or other information provided to any of them by each other or any other person or out of any interruption or delay in the electronic means of communications used by them. Subject to the foregoing, any references to the Distributor, the Transfer Agent or the Custodian herein shall not be deemed to imply, nor have such parties agreed, to undertake any obligations under this Agreement nor made any representations or warranties under this Agreement and none of such parties shall be required to advance, expend or risk its own funds or otherwise incur, become exposed to or be responsible for any loss, liability, damages, costs or expenses hereunder or in connection herewith regardless of form of action or legal theory including, without limitation, any type of special, indirect or consequential loss or damage of any kind whatsoever.

     (b) Trust Liability. It is expressly acknowledged and agreed that (i) the obligations of each Trust hereunder shall not be binding upon any shareholder, Trustee, officer, employee or agent of such Trust or the Managing Owner, personally, and (ii) the debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to a particular Trust shall be enforceable against the assets of that Trust only, and not against the assets of any other Trust, and none of the debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to any other Trust shall be enforceable against the assets of that Trust. This Agreement has been duly authorized, executed and delivered by each Trust and neither such authorization nor such execution and delivery shall be deemed to have been made by any of them individually or to impose any liability on any of them personally.

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

     Section 10. Acknowledgment. The Authorized Participant acknowledges receipt of (i) a copy of the Trust Agreement and (ii) the current Prospectus and represents that it has reviewed and understands such documents.

     Section 11. Effectiveness and Termination. Upon the execution of this Agreement by the parties hereto, this Agreement shall become effective in this form as of the date first set forth above, and may be terminated at any time by any party upon thirty (30) days prior written notice to the other parties unless earlier terminated: (i) in accordance with Section 2(a) hereof; (ii) upon notice to the Authorized Participant by the Managing Owner in the event of a material breach by the Authorized Participant of this Agreement or the procedures described or incorporated herein; (iii) immediately in the circumstances described in Section 17(j) hereof; or (iv) at such time as a Trust is terminated pursuant to the Trust Agreement. For avoidance of doubt, the termination of this Agreement with respect to one Trust does not affect the status of this Agreement with respect to the other Trusts.

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     Section 12. Marketing Materials; Representations Regarding Shares; Identification in Registration Statement.

     (a) The Authorized
Participant represents, warrants and covenants that (i), without the written
consent of the Managing Owner, the Authorized Participant shall not make, or
permit any of its representatives to make, any representations concerning the
Shares or any AP Indemnified Party other than representations contained (A) in
the then-current Prospectus, (B) in printed information approved by the Managing
Owner as information supplemental to such Prospectus, (C) in any promotional
materials or sales literature furnished to the Authorized Participant by the
Distributor or the Managing Owner, or (D) other information and materials filed
by a Trust with the SEC or made available on any website controlled Managing
Owner or the applicable Trust, and (ii) the Authorized Participant shall not
furnish or cause to be furnished to any person or display or publish any
information or material relating to the Shares, any AP Indemnified Person or the
Trusts that are not consistent with the Trusts’ then current Prospectus.
Copies of the then current Prospectus and any such printed supplemental
information or amendments thereto will be supplied by, or caused to be supplied
by, the Distributor to the Authorized Participant in reasonable quantities upon
request.

     (b) Notwithstanding the foregoing, the Authorized Participant may without the approval of the Managing Owner or any Trust prepare and circulate in the regular course of its business research reports, marketing material and sales literature that includes information, opinions or recommendations relating to the Shares (i) for public dissemination, provided that such research reports, marketing material or sales literature comply with all applicable laws, rules and regulations; and (ii) for internal use by the Authorized Participant. The Authorized Participant shall file all such research reports, marketing material and sales literature related to the Shares with FINRA to the extent required by the FINRA Conduct Rules.

     (c) The Authorized Participant hereby agrees that for the term of this Agreement the Distributor may deliver on behalf of the Managing Owner, the then-current Prospectus, and any supplements or amendments thereto or recirculation thereof, to the Authorized Participant in Portable Document Format (“PDF”) via electronic mail in lieu of delivering the Prospectus in paper form. The Authorized Participant acknowledges that it has the capability to access, view, save and print material provided to it in PDF and that it will incur no appreciable extra costs by receiving the Prospectus in PDF instead of in paper form.

     (d) For as long as this Agreement is effective, the Authorized Participant agrees to be identified as an authorized participant of the Trusts (i) in the section of the Prospectus entitled “Creation and Redemption of Shares” and in any other section as may be required by the SEC and (ii) on each Trust’s website. Upon the termination of this Agreement, (i) the Managing Owner shall remove such identification from the Prospectus in the amendment of either the Registration Statement or a supplement to the Prospectus, as applicable, next occurring after the date of the termination of this Agreement and (ii) the Managing Owner shall promptly update each Trust’s website to remove any identification of the Authorized Participant as an authorized participant of the Trusts.

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     Section 13. Certain Representations, Warranties and Covenants of the Managing Owner. The Managing Owner, on its own behalf and as sponsor of each Trust, covenants and agrees:

     (a) that (i) it has
taken all actions necessary to execute this Agreement; (ii) the person(s)
executing this Agreement on its behalf has been duly authorized to do so; (iii)
the Registration Statement and the Prospectus contained therein conform in all
material respects to the requirements of the 1933 Act and the rules and
regulations of the SEC thereunder and do not and will not, as of the applicable
effective date as to the Registration Statement and any amendment thereto and as
of the applicable filing date as to the Prospectus and any amendment or
supplement thereto, contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, (iv) the sale and distribution of the Shares as contemplated
herein will not conflict with or result in a breach or violation of any statute
or any order, rule or regulation of any court or governmental agency or body
having jurisdiction over the Managing Owner or the Trusts, and (v) no consent,
approval, authorization, order, registration or qualification of or with any
such court or governmental agency is required for the issuance of the Shares,
except registration of the Shares under the 1933 Act.

     (b) to notify the Authorized Participant and the Distributor promptly of the happening of any event during the term of this Agreement which could require the making of any change in the Prospectus then being used so that the Prospectus would not include an untrue statement of material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they are made, not misleading, and, during such time, to prepare and furnish, at the expense of the Trusts, as applicable, to the Authorized Participant promptly such amendments or supplements to such Prospectus as may be necessary to reflect any such change;

     (c) to deliver to the Authorized Participant, at each time (i) the Registration Statement or the Prospectus is amended or supplemented by the filing of a post-effective amendment and (ii) a new Registration Statement is filed to register additional Shares and a single Prospectus is used in reliance on Rule 429 under the 1933 Act, an Officer’s Certificate by duly authorized officers of the Managing Owner in the form attached hereto as Exhibit C.

     In addition, any certificate signed by any officer of the Managing Owner and delivered to the Authorized Participant or counsel for the Authorized Participant pursuant hereto shall be deemed to be a representation and warranty by the Managing Owner to the Authorized Participant as to matters covered thereby.

     Section 14. Third Party Beneficiaries. Each AP Indemnified Party, to the extent it is not a party to this Agreement, is a third-party beneficiary of this Agreement (each, a “Third Party Beneficiary”) and may proceed directly against the Authorized Participant (including by bringing proceedings against the Authorized Participant in its own name) to enforce any obligation of the Authorized Participant under this Agreement which directly or indirectly benefits such Third Party Beneficiary.

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     Section 15. Force Majeure. No party to this Agreement shall incur any liability for any delay in performance, or for the non-performance, of any of its obligations under this Agreement by reason of any cause beyond its reasonable control. This includes any Act of God or war or terrorism, any breakdown, malfunction or failure of transmission in connection with or other unavailability of any wire, communication or computer facilities, any transport, port, or airport disruption, industrial action, acts and regulations and rules of any governmental or supra-national bodies or authorities or regulatory or self-regulatory organization or failure of any such body, authority or organization for any reason to perform its obligations.

     Section 16.
Ambiguous Instructions. If a Creation/Redemption Order Form otherwise in
good form contains order terms that differ from the information provided in the
telephone call at the time of issuance of the applicable order number, the
Distributor will attempt to contact one of the Authorized Persons of the
Authorized Participant to request confirmation of the terms of the Order. If an
Authorized Person confirms the terms as they appear in the Order, then the Order
shall be accepted and processed. If an Authorized Person contradicts the Order
terms, the Order shall be deemed invalid, and a corrected Order must be received
by the Distributor not later than the earlier of: (i) within 15 minutes of such
contact with the Authorized Person; or (ii) 45 minutes after the Order Cut-Off
Time. If the Distributor is not able to contact an Authorized Person, then the
Order shall be accepted and processed in accordance with its terms
notwithstanding any inconsistency with the terms of the telephone information.
In the event that an Order contains terms that are illegible, the Order shall be
deemed invalid and the Distributor will attempt to contact one of the Authorized
Persons of the Authorized Participant to request retransmission of the Order. A
corrected Order must be received by the Distributor not later than the earlier
of (i) within 15 minutes of such contact with the Authorized Person or (ii) 45
minutes after the Order Cut-Off Time, as the case may be.

     Section 17. Miscellaneous.

     (a) Amendment
and Modification. This Agreement, the Procedures attached as Attachment A
and the Exhibits hereto may be amended, modified or supplemented by the
Trusts and the Managing Owner, without consent of any Beneficial Owner or
Authorized Participant from time to time by the following procedure. After the
proposed amendment, modification or supplement has been agreed to by the
Managing Owner, the Managing Owner shall mail a copy of the proposed amendment,
modification or supplement to the Authorized Participant. For the purposes of
this Agreement, mail shall be deemed received by the recipient thereof on the
third (3rd) day following the deposit of such mail into the United
States postal system. Within ten (10) calendar days after its deemed receipt,
the amendment, modification or supplement will become part of this Agreement,
the Attachments or the Exhibits, as the case may be, in accordance with its
terms.

     (b) Waiver of Compliance. Any failure of any of the parties to comply with any obligation, covenant, agreement or condition herein may be waived by the party entitled to the benefits thereof only by a written instrument signed by the party granting such waiver, but any such written waiver, or the failure to insist upon strict compliance with any obligation, covenant, agreement or condition herein, shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

11

     (c) Notices. Except as otherwise specifically provided in this Agreement, all notices required or permitted to be given pursuant to this Agreement shall be given in writing and delivered by personal delivery, by postage prepaid registered or certified United States first class mail, return receipt requested, by nationally recognized overnight courier (delivery confirmation received) or by telex, electronic mail, telegram or telephonic facsimile or similar means of same day delivery (transmission confirmation received), with a confirming copy by regular mail, postage prepaid. Unless otherwise notified in writing, all notices to the Trusts shall be given or sent to the Managing Owner and, if applicable, the Distributor. All notices shall be directed to the address or telephone or facsimile numbers or electronic mail addresses indicated below the signature line of the parties on the signature page hereof.

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

     (e)
Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any party without the prior written
consent of the other parties, except that any entity into which a party hereto
may be merged or converted or with which it may be consolidated or any entity
resulting from any merger, conversion, or consolidation to which such party
hereunder shall be a party, or any entity succeeding to all or substantially all
of the business of the party, shall be the successor of the party under this
Agreement and except that the Managing Owner may delegate its obligations
hereunder to the Distributor or the Administrator by notice to the Authorized
Participant. The party resulting from any such merger, conversion, consolidation
or succession shall notify the other parties hereto of the change. Any purported
assignment in violation of the provisions hereof shall be null and void.
Notwithstanding the foregoing, this Agreement shall be automatically assigned to
any successor trustee or Managing Owner at such time such successor qualifies as
a successor trustee or Managing Owner under the terms of the Trust
Agreement.

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

     (g)
Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original copy of this Agreement and all
of which, when taken together, shall be deemed to constitute one and the same
agreement, and it shall not be necessary in making proof of this Agreement as to
any party hereto to produce or account for more than one such counterpart
executed and delivered by such party.

12

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

     (i) Entire Agreement. This Agreement and the Trust Agreement, along with any other agreement or instrument delivered pursuant to this Agreement and the Trust Agreement, supersede all prior agreements and understandings between the parties with respect to the subject matter hereof, provided, however, that the Authorized Participant shall not be deemed by this provision to be a party to the Trust Agreement.

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

     (k) No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.

     (l) Survival. Sections 8 (Indemnification) and 14 (Third Party Beneficiaries) hereof shall survive the termination of this Agreement.

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

[Signature Page Follows]

13

     IN WITNESS WHEREOF, the Authorized Participant and the Managing Owner, on behalf of itself and each Trust, have caused this Agreement to be executed by their duly authorized representatives as of the date first set forth above.

					
	 Factor Capital Management, LLC
  Managing Owner of each of FactorShares 2X: S&P500 Bull/TBond Bear, FactorShares 2X: TBond Bull/S&P500 Bear, FactorShares 2X: S&P500 Bull/USD Bear, FactorShares 2X: Oil Bull/S&P500 Bear and FactorShares 2X: Gold Bull/S&P500 Bear	     	 Each of FactorShares 2X: S&P500 Bull/TBond Bear, FactorShares 2X: TBond Bull/S&P500 Bear, FactorShares 2X: S&P500 Bull/USD Bear, FactorShares 2X: Oil Bull/S&P500 Bear and FactorShares 2X: Gold Bull/S&P500 Bear, individually and severally 
	  	  	

        By Factor Capital Management, LLC,  

      as Managing Owner      
	  	  	  
	 By:	____________________________ 	 	 By:	____________________________  
	 Name:	____________________________ 	 	 Name:	____________________________  
	 Title:	____________________________ 	 	 Title:	____________________________  
	  
	 Address:	 1 Penn Plaza, 36th Floor	 	 Address:	  1 Penn Plaza, 36th Floor
	  	 New York, New York 10119	 	  	  New York, New York 10119
	 Telephone:	 (212) 786-7481	 	 Telephone: 	 (212) 786-7481 
	 Facsimile:	  (917) 210-3087	 	 Facsimile:	  (917) 210-3087
	 E-mail:_______________________________	  	E-mail:_______________________________
	  
	 [Name of Authorized Participant] 	 	  	   
	 By:	____________________________ 	 	  	   
	 Name: 	____________________________ 	 	  	   
	 Title: 	____________________________ 	 	  	   
	 Address: 	____________________________ 	 	  	  
	 Telephone: 	____________________________ 	 	  	  
	 Facsimile:	____________________________ 	 	  	  
	E-mail:	____________________________	 	 	 

14

SCHEDULE A

NAMES OF TRUSTS

FactorShares 2X: S&P500 Bull/TBond Bear

FactorShares 2X: TBond Bull/S&P500 Bear

FactorShares 2X: S&P500 Bull/USD Bear

FactorShares 2X: Oil Bull/S&P500 Bear

FactorShares 2X: Gold Bull/S&P500 Bear

EXHIBIT A

FACTORSHARES 2X: S&P500 BULL/TBOND BEAR

FACTORSHARES 2X: TBOND BULL/S&P500 BEAR

FACTORSHARES 2X: S&P500 BULL/USD BEAR

FACTORSHARES 2X: OIL BULL/S&P500 BEAR

FACTORSHARES 2X: GOLD BULL/S&P500 BEAR

FORM OF CERTIFIED AUTHORIZED PERSONS OF AUTHORIZED PARTICIPANT

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

		
	 Authorized Participant:_________________	  
	 Name:________________________________	 Name:________________________________
	 Title:_________________________________	 Title:_________________________________
	 Signature:_____________________________	 Signature:_____________________________
	 E-mail:________________________	 E-mail:________________________
	 Phone:________________________	 Phone:________________________
	 Name:________________________________	 Name:________________________________
	 Title:_________________________________	 Title:_________________________________
	 Signature:_____________________________	 Signature:_____________________________
	 E-mail:________________________	 E-mail:________________________
	 Phone:________________________	 Phone:________________________

     The undersigned, ___________________ [name], ________________ [title] of ________________________ [company], does hereby certify that the persons listed above have been duly elected to the offices set forth beneath their names, that they presently hold such offices, that they have been duly authorized to act as Authorized Persons pursuant to the Participant Agreement by and among [name of Authorized Participant], each of FactorShares 2X: S&P500 Bull/TBond Bear, FactorShares 2X: TBond Bull/S&P500 Bear, FactorShares 2X: S&P500 Bull/USD Bear, FactorShares 2X: Oil Bull/S&P500 Bear and FactorShares 2X: Gold Bull/S&P500 Bear and Factor Capital Management, LLC, dated _____________________, 20[__] (the “Participant Agreement”), and that their signatures set forth above are their own true and genuine signatures.

     In Witness Whereof, the undersigned has hereby has caused this Agreement to be executed on the date set forth below.

		
	    	 By:_________________________
	 	 Name:_______________________
	 	 Title:________________________
	 	 Date:________________________

A-1

EXHIBIT B  

  FORESIDE FUND SERVICES, LLC – DISTRIBUTOR 

  STATE STREET BANK & TRUST - CUSTODIAN AND ADMINISTRATOR

CREATION / REDEMPTION ORDER FORM FACTORSHARES 

  CONTACT INFORMATION FOR ORDER EXECUTION

FORESIDE FUND SERVICES, LLC – DISTRIBUTOR 

  Fund Trading Facsimile Number: (207) 553–7132

Distributor Trading Assistance: (866) 453–5199

I. TO BE COMPLETED BY AUTHORIZED PARTICIPANT:

		
	 Date:_____________________________________________ 

      _________________________________________________
    	 Time:
	 AP Name:_________________________________________

      _________________________________________
    	 Phone Number:
	 AP PIN #:_________________________________________

      _________________________________________
    	 Fax Number:
	 Firm Clearing #

    	 Firm Clearing #
	 ETF Shares:_______________________________________	 Basket Securities:
	 DTC / NSCC Participant Number:_______________________	  

Custom Basket NSCC Instruction CUSIP: -

  ________________________________________________________________________

							
	(Please check all that are applicable)	 

	Symbol/Fund Name	Create	Redeem	# of 

      Baskets
      	# of 

      Shares
      	# Units Written Out	Cash
	 	 	 	 	 	 	 
	FactorShares 2X: S&P500 Bull/TBond Bear	 	 	 	 	 	 
	FactorShares 2X: TBond Bull/S&P500 Bear	 	 	 	 	 	 
	FactorShares 2X: S&P500 Bull/USD Bear	 	 	 	 	 	 
	FactorShares 2X: Oil Bull/S&P500 Bear	 	 	 	 	 	 
	and FactorShares 2X: Gold Bull/S&P500 Bear	 	 	 	 	 	 

All Creation/Redemption Order Forms are subject to the terms and conditions of the applicable Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”) of either FactorShares 2X: S&P500 Bull/TBond Bear, FactorShares 2X: TBond Bull/S&P500 Bear, FactorShares 2X: S&P500 Bull/USD Bear, FactorShares 2X: Oil Bull/S&P500 Bear or FactorShares 2X: Gold Bull/S&P500 Bear, as applicable (each, the “Trust” and collectively, the “Trusts”) as currently in effect and the Participant Agreement among the Authorized Participant, the Trusts and the Managing Owner named therein (the “Participant Agreement”). All representations and warranties of the Authorized Participant set forth in the Participant Agreement are incorporated herein by reference. Capitalized terms used but not defined herein have the meaning given in the applicable Trust Agreement.

In connection with the submission of an order for the creation of Basket(s) on this Creation/Redemption Order Form, the undersigned understands that by submitting this Creation/Redemption Order Form to the Distributor he/she (i) is making the representations and warranties set forth in Annex A to this Creation/Redemption Order Form, (ii) agrees that his/her execution of this Creation/Redemption Order Form shall constitute (for all purposes) his/her execution of the applicable Trust Agreement and agreement to the terms thereof, and (iii) acknowledges that the Managing Owner or its authorized designee, Foreside Fund Services, LLC, may rely upon his/her execution of this Creation/Redemption Order Form as constituting an execution of the Trust Agreement and agreement of the terms thereof. The Authorized Participant understands that its DTC account will be charged the Transaction Fee as set forth in the currently effective Trust Agreement and/or Prospectus (as applicable).

The undersigned does hereby certify as of the date set forth below that he/she is an Authorized Person under the Participant Agreement and that he/she is authorized to deliver this Creation/Redemption Order Form to the Distributor, Foreside Fund Services, LLC, on behalf of the Authorized Participant.

		
	 	

      ______________________________________

      Authorized Signature 
	 	 
	 	
      ______________________________________

      Print Name

II. TO BE COMPLETED BY DISTRIBUTOR:

This certifies the above order has been:

			
	________________Accepted by the Distributor	  
	  ________________Declined – Reason____________________________________	  

			
	 __________

      Date	 __________

      Time	
      ______________________________________

      Authorized Signature

B-2

ANNEX A TO EXHIBIT B

TO

CREATION/REDEMPTION ORDER FORM

AUTHORIZED PARTICIPANT’S REPRESENTATIONS AND WARRANTIES

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

     2. Disclosure Document. The Authorized Participant has received the Trusts’ Prospectus which constitutes its CFTC Disclosure Document.

     3. Monthly
  Report. If trading for a Trust has commenced, the Authorized Participant
  has obtained a copy of the most recent monthly report from the applicable Trust’s
  website at www.FactorSharesETFS.com.

     4. Commissions. The Authorized Participant agrees that, in connection with any sales of the Shares, it will not charge a commission to its customers in excess of one percent (1%) of the total amount of the sale.

 

 EXHIBIT C

FACTORSHARES 2X: S&P500 BULL/TBOND BEAR

FACTORSHARES 2X: TBOND BULL/S&P500 BEAR

FACTORSHARES 2X: S&P500 BULL/USD BEAR

FACTORSHARES 2X: OIL BULL/S&P500 BEAR

FACTORSHARES 2X: GOLD BULL/S&P500 BEAR

FACTOR CAPITAL MANAGEMENT, LLC

OFFICER’S CERTIFICATE

      The undersigned, a duly authorized officer of Factor Capital Management, LLC, a Delaware limited liability company, the managing owner (the “Managing Owner”) of each of FactorShares 2X: S&P500 Bull/TBond Bear, FactorShares 2X: TBond Bull/S&P500 Bear, FactorShares 2X: S&P500 Bull/USD Bear, FactorShares 2X: Oil Bull/S&P500 Bear and FactorShares 2X: Gold Bull/S&P500 Bear, as applicable (each, the “Trust” and collectively, the “Trusts”), and pursuant to Section 13(c) of the Participant Agreement (the “Participant Agreement”), dated as of _________ 20___, as amended from time-to-time, by and among the Managing Owner, the Trusts and __________ (the “Authorized Participant”), hereby certify that:

	            	 1.         	
      Each of the following representations and warranties of the Managing Owner is true and correct in all material respects as of the date hereof:

    

	            	            	 (a)        	

the Prospectus in the form filed with the Securities and
Exchange Commission (the “SEC”) under rule 424 of the
Securities Act of 1933, as amended (the “1933 Act”) does not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; the
currently effective registration statement of each Trust on Form S-1 or S-3, if
applicable (collectively, the “Registration Statement”) and the
Prospectus comply in all material respects with the requirements of the 1933
Act; any statutes, regulations, contracts or other documents that are required
to be described in the Registration Statement or the Prospectus or to be filed
as exhibits to the Registration Statement have been so described or filed; the
conditions to the use of Form S-1 or S-3, if applicable, have been satisfied;
and the Registration Statement does not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and the Prospectus does
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading; provided, however, that the Managing
Owner makes no warranty or representation with respect to any statement
contained in the Registration Statement or any Prospectus in reliance upon and
in conformity with information concerning the Authorized Participant and
furnished in writing by or on behalf of the Authorized Participant to the
Managing Owner expressly for use in the Registration Statement or such
Prospectus;

    

  

 C-1

	            	            	 (b)        	
      each Trust has been duly formed and is validly existing as an investment trust under the laws of the State of Delaware, as described in the Registration Statement and the Prospectus, and the Amended and Restated Declaration of Trust and Trust Agreement of each Trust (collectively, the “Trust Agreement”) authorizes the Managing Owner or its agents to issue and deliver the units of fractional undivided beneficial interest in and ownership of each Trust (the “Shares”) to the Authorized Participant hereunder as contemplated in the Registration Statement and the Prospectus;

    
	 	 	 	 
	 	 	 (c)        	
      the Managing Owner has been duly organized and is validly existing as a limited liability company in good standing under the laws of the State of Delaware, with full power and authority to conduct its business as described in the Registration Statement and the Prospectus, and has all requisite power and authority to execute and deliver the Participant Agreement;

    
	 	 	 	 
	 	 	 (d)        	
      the Managing Owner is duly qualified and is in good standing in each jurisdiction where the conduct of its business requires such qualification; and the Trusts are not required to so qualify in any jurisdiction;

    
	 	 	 	 
	 	 	 (e)        	
      complete and correct copies of the Trust Agreement, and any and all amendments thereto, have been delivered to the Authorized Participant, and no changes thereto have been made;

    
	 	 	 	 
	 	 	 (f)        	
      the outstanding Shares have been duly and validly issued and are fully paid and non-assessable and free of statutory and contractual preemptive rights, rights of first refusal and similar rights;

    
	 	 	 	 
	 	 	 (g)        	
      the Shares conform in all material respects to the description thereof contained in the Registration Statement and the Prospectus and the holders of the Shares will not be subject to personal liability by reason of being such holders;

    
	 	 	 	 
	 	 	 (h)        	
      the Participant Agreement has been duly authorized, executed and delivered by each Trust and the Managing Owner and constitutes the valid and binding obligations of the Trusts and the Managing Owner, enforceable against the Trusts and the Managing Owner in accordance with its terms;

    
	 	 	 	 
	 	 	 (i)        	
      neither the Managing Owner nor the Trusts are in breach or violation of or in default under (nor has any event occurred which with notice, lapse of time or both would result in any breach or violation of, constitute a default under or give the holder of any indebtedness (or a person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a part of such indebtedness under) its respective constitutive documents, or any indenture, mortgage, deed of trust, bank

    

C-2

	            	 	 	loan or credit agreement or other evidence of indebtedness, or
any license, lease, contract or other agreement or instrument to which the
Managing Owner or the Trusts are a party or by which any of them or any of their
properties may be bound or affected, and the execution, delivery and performance
of the Participant Agreement, the issuance and sale of Shares to the Authorized
Participant thereunder and the consummation of the transactions contemplated
hereby does not conflict with, result in any breach or violation of or
constitute a default under (nor constitute any event which with notice, lapse of
time or both would result in any breach or violation of or constitute a default
under), respectively, the limited liability company agreement of the Managing
Owner or the Trust Agreement, or any indenture, mortgage, deed of trust, bank
loan or credit agreement or other evidence of indebtedness, or any license,
lease, contract or other agreement or instrument to which, respectively, the
Managing Owner or the Trusts are a party or by which the Managing Owner or the
Trusts or any of their respective properties may be bound or affected, or any
federal, state, local or foreign law, regulation or rule or any decree, judgment
or order applicable to the Managing Owner or the Trusts;
	 	 	 	 
	 	            	 (j)        	
      no approval, authorization, consent or order of or filing with any federal, state, local or foreign governmental or regulatory commission, board, body, authority or agency is required in connection with the issuance and sale of Shares to the Authorized Participant hereunder or the consummation by the Managing Owner or the Trusts of the transactions contemplated hereunder other than registration of the Shares under the 1933 Act, which has been effected, and any necessary qualification under the securities laws of the various jurisdictions in which the Shares are being offered or under the rules and regulations of the Financial Industry Regulatory Authority (“FINRA”);

    
	 	 	 	 
	 	 	 (k)        	

except as set forth in the Registration Statement and the
Prospectus (i) no person has the right, contractual or otherwise, to cause the
Trusts to issue or sell to it any Shares or other equity interests of the
Trusts, and (ii) no person has the right to act as an underwriter or as a
financial advisor to the Trusts in connection with the offer and sale of the
Shares, in the case of each of the foregoing clauses (i), and (ii), whether as a
result of the filing or effectiveness of the Registration Statement or the sale
of the Shares as contemplated thereby or otherwise; no person has the right,
contractual or otherwise, to cause the Managing Owner on behalf of the Trusts or
the Trusts to register under the 1933 Act any other equity interests of the
Trusts, or to include any such shares or interests in the Registration Statement
or the offering contemplated thereby, whether as a result of the filing or
effectiveness of the Registration Statement or the sale of the Shares as
contemplated thereby or otherwise;

    

 C-3

	            	      	 (l)        	
      each of the Managing Owner and the Trusts have all necessary licenses, authorizations, consents and approvals and has made all necessary filings required under any federal, state, local or foreign law, regulation or rule, and has obtained all necessary authorizations, consents and approvals from other persons, in order to conduct its respective business; neither the Managing Owner nor the Trusts are in violation of, or in default under, or has received notice of any proceedings relating to revocation or modification of, any such license, authorization, consent or approval or any federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the Managing Owner or the Trusts;

    
	 	 	 	 
	 	 	 (m)        	
      all legal or governmental proceedings, affiliate transactions, off-balance sheet transactions, contracts, licenses, agreements, leases or documents of a character required to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement have been so described or filed as required;

    
	 	 	 	 
	 	 	 (n)        	
      except as set forth in the Registration Statement and the Prospectus, there are no actions, suits, claims, investigations or proceedings pending or threatened or contemplated to which the Managing Owner or the Trusts, or any of the Managing Owner’s directors or officers, is or would be a party or of which any of their respective properties are or would be subject at law or in equity, before or by any federal, state, local or foreign governmental or regulatory commission, board, body, authority or agency;

    
	 	 	 	 
	 	 	 (o)        	
      Ernst & Young LLP, whose report on the audited financial statements of the Trusts are filed with the SEC as part of the Registration Statement and the Prospectus, are independent public accountants as required by the 1933 Act;

    
	 	 	 	 
	 	 	 (p)        	
      the audited financial statement(s) included in the Prospectus, together with the related notes and schedules, presents fairly the financial position of the Trusts as of the date indicated and has been prepared in compliance with the requirements of the 1933 Act and in conformity with generally accepted accounting principles; there are no financial statements (historical or pro forma) that are required to be included in the Registration Statement and the Prospectus that are not included as required; and the Trusts do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not disclosed in the Registration Statement and the Prospectus;

    
	 	 	 	 
	 	 	 (q)        	
      subsequent to the respective dates as of which information is given in the Registration Statement and the Prospectus, there has not been (i) any material adverse change, or any development involving a prospective material adverse change affecting the Managing Owner or the Trusts, (ii) any transaction which is material to the Managing Owner or the Trusts taken as a whole, (iii) any obligation, direct or contingent (including any

    

 C-4

	            	 	 	off-balance sheet obligations), incurred by the Managing Owner or the Trusts, which is material to the Trusts, (iv) any change in the Shares purchased by the Authorized Participant or outstanding indebtedness of the Managing Owner or the Trusts or (v) any distribution of any kind declared, paid or made on such Shares;
	 	 	 	 
	 	            	 (r)        	
      the Trusts are not and, after giving effect to the offering and sale of the Shares, will not be required to be registered as an investment company under the Investment Company Act;

    
	 	 	 	 
	 	 	(s)	 except as set forth in the Registration Statement and the
Prospectus, the Managing Owner and the Trusts own, or have obtained valid and
enforceable licenses for, or other rights to use, the inventions, patent
applications, patents, trademarks (both registered and unregistered),
tradenames, copyrights, trade secrets and other proprietary information
described in the Registration Statement and the Prospectus as being owned or
licensed by them or which are necessary for the conduct of their respective
businesses, (collectively, “Intellectual Property”); (i) to the
knowledge of the Managing Owner or the Trusts, there are no third parties who
have or will be able to establish rights to any Intellectual Property, except
for the ownership rights of the owners of the Intellectual Property which is
licensed to the Managing Owner or the Trusts; (ii) to the knowledge of the
Managing Owner or the Trusts, there is no infringement by third parties of any
Intellectual Property; (iii) there is no pending or, to the knowledge of the
Managing Owner or the Trusts, threatened action, suit, proceeding or claim by
others challenging the Managing Owner’s or the Trusts’ rights in or to
any Intellectual Property, and the Managing Owner and the Trusts are unaware of
any facts which could form a reasonable basis for any such claim; (iv) there is
no pending or, to the knowledge of the Managing Owner or the Trusts, threatened
action, suit, proceeding or claim by others challenging the validity or scope of
any Intellectual Property, and the Managing Owner and the Trusts are unaware of
any facts which could form a reasonable basis for any such claim; and (v) there
is no pending or, to the knowledge of the Managing Owner or the Trusts,
threatened action, suit, proceeding or claim by others that the Managing Owner
or the Trusts infringe or otherwise violates any patent, trademark, copyright,
trade secret or other proprietary rights of others, and the Managing Owner and
the Trusts are unaware of any facts which could form a reasonable basis for any
such claim;
	 	 	 	 
	 	 	 (t)        	
      all tax returns required to be filed by the Trusts have been filed, and all taxes and other assessments of a similar nature (whether imposed directly or through withholding) including any interest, additions to tax or penalties applicable thereto due or claimed to be due from such entities have been paid; and no tax returns or tax payments are due with respect to the Trusts as of the date of the Participant Agreement;

    

C-5

	            	      	 (u)        	
      neither the Managing Owner nor the Trusts have sent or received any communication regarding termination of, or intent not to renew, any of the contracts or agreements referred to or described in, or filed as an exhibit to, the Registration Statement, and no such termination or non-renewal has been threatened by the Managing Owner or the Trusts or any other party to any such contract or agreement;

    
	 	 	 	 
	 	 	 (v)        	
      with respect to its activities on behalf of the Trusts, as provided for in the Trust Agreement, the Managing Owner maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with the Trust Agreement and the Managing Owner’s duties thereunder; (ii) transactions with respect to the each Trust are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets; and (iii) assets are held for the Trusts in accordance with the Trust Agreement;

    
	 	 	 	 
	 	 	 (w)        	

on behalf of the Trusts, the Managing Owner has established
and maintains disclosure controls and procedures (as such term is defined in
Rule 13a-14 and 15d-14 under the Securities and Exchange Act of 1934, as amended
(the “1934 Act”), giving effect to the rules and regulations,
and SEC staff interpretations (whether or not public), thereunder)); such
disclosure controls and procedures are designed to ensure that material
information relating to the Trusts, are made known to the Managing Owner, and
such disclosure controls and procedures are effective to perform the functions
for which they were established; on behalf of the Trusts, the Managing Owner has
been advised of: (i) any significant deficiencies in the design or operation of
internal controls which could adversely affect each Trust’s ability to
record, process, summarize, and report financial data; and (ii) any fraud,
whether or not material, that involves management or other employees who have a
role in each Trust’s internal controls; any material weaknesses in internal
controls have been identified for the Trusts’ auditors;

    
	 	 	 	 
	 	 	 (x)        	
      any statistical and market-related data included in the Registration Statement and the Prospectus are based on or derived from sources that the Managing Owner believes to be reliable and accurate, and the Managing Owner has obtained the written consent to the use of such data from such sources to the extent required; and

    
	 	 	 	 
	 	 	 (y)        	
      neither the Managing Owner, nor any of the Managing Owner’s directors, members, managers, officers, affiliates or controlling persons nor the Trustee has taken, directly or indirectly, any action designed, or which has constituted or might reasonably be expected to cause or result in, under the 1934 Act or otherwise, the stabilization or manipulation of the price of any security or asset of the Trusts to facilitate the sale or resale of the Shares; and there are no affiliations or associations between any member of

    

C-6

	            	      	             	
      FINRA and any of the Managing Owner’s officers, directors or 5% or greater security holders, except as set forth in the Registration Statement and the Prospectus.

    
	 	 	 	 
	 	 	         	
      For purposes hereof, the term “Registration Statement” shall mean the Registration Statement as amended or supplemented from time to time to the date hereof and the term “Prospectus” shall mean the Prospectus as amended or supplemented from time to time to the date hereof.

    

	            	 2.         	
      Each of the obligations of the Managing Owner to be performed by it on or before the date hereof pursuant to the terms of the Participant Agreement, and each of the provisions thereof to be complied with by the Managing Owner on or before the date hereof, has been duly performed and complied with in all material respects.

    

 Capitalized terms used, but not defined herein shall have the meanings assigned to such terms in the Participant Agreement.

[SIGNATURE PAGE TO FOLLOW]

 C-7

      IN WITNESS WHEREOF, we have hereunto, on behalf of the Managing Owner, subscribed our names this _____ day of _________.

			
	   	 By:	 

       
	 	  	
      

      Name: 

      Title:    

 C-8

 ATTACHMENT A

PROCEDURES FOR THE

CREATION AND REDEMPTION OF SHARES

 Scope of Procedures and Overview

 These procedures (the “Procedures”) describe the processes by which one or more Baskets of Trust (as hereinafter defined) shares (the “Shares”) issuable by each of FactorShares 2X: S&P500 Bull/TBond Bear, FactorShares 2X: TBond Bull/S&P500 Bear, FactorShares 2X: S&P500 Bull/USD Bear, FactorShares 2X: Oil Bull/S&P500 Bear and FactorShares 2X: Gold Bull/S&P500 Bear, as applicable (each, the “Trust” and collectively, the “Trusts”) may be purchased or, once Shares have been issued, redeemed by an Authorized Participant (a “Participant”). Shares may be created or redeemed only in blocks of 100,000 Shares (each such block, a “Basket”).

 Capitalized terms used in these Procedures without further definition have the meanings assigned to them in the applicable Amended and Restated Declaration of Trust and Trust Agreement of each Trust (collectively, the “Trust Agreement”), each dated as of January 18, 2011, and as amended from time-to-time, between Wilmington Trust Company, as trustee of the Trusts (the “Trustee”) and Factor Capital Management, LLC, as managing owner (the “Managing Owner”) or the Participant Agreement entered into by each Participant with the Trusts and the Managing Owner.

 For purposes of these Procedures, a “Business Day” means any day other than a day when banks in New York City are required or permitted to be closed.

 “Order Cut-Off Time” means no later than 5 hours prior to the close of the NYSE Arca, which would be customarily 11:00 a.m. Eastern Time, on each Business Day. However, on a Business Day when the NYSE Arca has an early close at, for example, 1:00 p.m. Eastern Time (e.g., day after Thanksgiving), the Order Cut-Off Time means no later than 8:00 a.m. Eastern Time, which would be 5 hours prior to the early close of the NYSE Arca.

 After execution of the Participant Agreement, Baskets which will be delivered by Transfer Agent, at the direction of the Distributor, to each Participant, are issued and redeemed in accordance with the Trust Agreement and the Participant Agreement. Baskets may be issued and redeemed on any Business Day by the Transfer Agent, at the direction of the Distributor, in exchange for the Creation Basket Capital Contribution, which each Trust receives from Participants, or redemption distributions (“Redemption Distributions”), which the Custodian delivers, on behalf of each Trust, to Participants, in each case on behalf of each Trust. Participants will be required to pay a nonrefundable per order transaction fee as described in the Prospectus (the “Transaction Fee”).

 Each Participant is responsible for ensuring that the Creation Basket Capital Contribution it intends to transfer to the applicable Trust in exchange for Creation Basket(s) is available for transfer to such Trust in the manner and at the times described in these Procedures.

 Upon acceptance of the Participant Agreement by the Managing Owner, the Distributor will assign a personal identification number (a “PIN number”) to each Authorized Person authorized to act for the Participant. This will allow the Participant through its Authorized Person(s) to submit Creation/Redemption Order Form(s) for the creation or redemption of Baskets.

 Important Notes:

	
Any Order is subject to rejection by the Distributor for the reasons set forth in the Trust Agreement or the Participant Agreement.

	
All Orders are subject to the provisions of the Trust Agreement and the Participant Agreement relating to unclear or ambiguous instructions.

CREATION PROCESS

 An order to purchase one or more Creation Baskets placed by a Participant with the Distributor by a telephone call placed by the Order Cut-Off Time on a Business Day (such day, “Purchase Order Subscription Date”) results in the issuance and delivery of Creation Basket(s) at noon, Eastern Time, on the Business Day immediately following the Purchase Order Subscription Date if the Trust (or its agents, as the case may be) has received:

	
the Transaction Fee, and

	
for the account of the applicable Trust, the Creation Basket Capital Contribution due from the Participant submitting the Creation/Redemption Order Form.

CREATION PROCEDURES

	            	 1.         	

By the Order Cut-Off Time on the Purchase Order Subscription
Date, an Authorized Person of the Participant calls the Distributor at (866)
453–5199 to notify the Distributor, that the Participant wishes to place a
Creation/Redemption Order Form with the Distributor to create an identified
number of Creation Baskets and to request that the Distributor provide an order
number (an “Order Number”). Calls placed before the Order
Cut-Off Time will be processed even if the call is taken after that time. The
Authorized Person provides a PIN number as identification to the Distributor.
The Distributor provides the Participant with an Order Number for the
Participant’s Creation/Redemption Order Form. The Participant then
completes and faxes to the Distributor the Creation/Redemption Order Form
included as Exhibit B to the Participant Agreement. The Creation/Redemption
Order Form must be completed and also include the Authorized Person’s
signature, the number of Creation Baskets being purchased, and the Order Number
previously provided by the Distributor.

    
	 	 	 
	 	 2.         	
      If the Distributor has not received the Creation/Redemption Order Form from the Participant within 15 minutes after the Distributor receives the phone call from an Authorized Person of the Participant referenced in item (1) above, the Distributor places a phone call to the Participant to enquire about the status of the Order. If the Participant does not fax the Creation/Redemption Order Form to the

    

2

	 	 	Distributor within 15 minutes after the Distributor’s phone call, the Participant’s Order may be cancelled. The Distributor will then notify the Participant that the Order has been cancelled via telephone call.
	 	 	 
	            	 3.         	
      If the Distributor has received the Participant’s Creation/Redemption Order Form on time in accordance with the preceding timing rules, then within thirty (30) minutes after the Order Cut-Off Time, the Distributor returns to the Participant a copy of the Creation/Redemption Order Form submitted, marking it “Accepted.”

    
	 	 	 
	 	 4.         	
      After the Distributor receives required daily fund information from the Custodian, as promptly as practicable following the publication1 of the net asset value of the applicable Trust and the net asset value per Share of the Shares on the Purchase Order Subscription Date, the Distributor shall communicate to the Participant the amount of cash necessary for the Creation Basket Capital Contribution and details of the method of payment required for the Creation Basket Capital Contribution.

    
	 	 	 
	 	 5.         	
      If the Distributor rejects a Creation/Redemption Order Form pursuant to the Trust Agreement or the Participant Agreement, the Distributor will promptly notify the Participant whose Creation/Redemption Order Form was rejected.

    
	 	 	 
	 	 6.         	
      At noon, Eastern Time, on the Business Day immediately following the Purchase Order Subscription Date, the Distributor authorizes the creation and issuance of the Creation Baskets ordered by each Participant on the Purchase Order Subscription.

    
	 	 	 
	 	 7.         	
      The Distributor will cause the applicable Trust to deposit the Creation Basket with the Depository in accordance with the Depository’s customary procedures, for the credit of the account of the Participant that placed the Creation/Redemption Order Form.

    
	 	 	 
	 	8.	If by noon, Eastern Time, on the Business Day immediately following the Purchase Order Subscription Date, the Trust or its agents, as the case may be, has not received the Creation Basket Capital Contribution due from the Participant submitting the Creation/Redemption Order Form, the Participant will be charged an additional processing charge of $500.

[Redemption Process Follows on Next Page]

1 The net asset value of the applicable Trust and the net asset value per Share will be calculated as of the “NAV Calculation Time” as such term is defined in the Prospectus and publication thereof will occur as soon as practicable following such calculation.
3

 REDEMPTION PROCESS

	            	
      An order to redeem one or more Redemption Baskets placed by a Participant with the Distributor by a telephone call placed by the Order Cut-off Time on a Business Day (such day, “Redemption Order Date”) results in the following taking place by noon, Eastern Time, on the Business Day immediately following the Redemption Order Date (the “Redemption Settlement Time”):

    

	
if the applicable Trust’s account at the Depository has by the Redemption Settlement Time been credited with the Redemption Baskets being tendered for redemption and the Trust has received the Transaction Fee, the Participant shall receive the Redemption Distribution as recorded on the book entry system of the Depository.

REDEMPTION PROCEDURES

	            	 1.         	
      By the Order Cut-off Time, an Authorized Person of the Participant calls the Distributor at (866) 453–5199 to notify the Distributor that the Participant wishes to place a Redemption Order with the Distributor to redeem an identified number of Redemption Baskets and to request that the Distributor provide an Order Number. Calls placed before the Order Cut-Off Time will be processed even if the call is taken after that time. The Authorized Person provides a PIN number as identification to the Distributor. The Distributor provides the Participant with an Order Number for the Participant’s Redemption Order Form. The Participant then completes and faxes to the Distributor the Redemption Order Form included as Exhibit C to the Participant Agreement. The Redemption Order Form must include the Authorized Person’s signature, the number of Redemption Baskets redeemed, and the Order Number previously provided by the Distributor.

    
	 	 	 
	 	 2.         	
      If the Distributor has not received the Redemption Order Form from the Participant within 15 minutes after the Distributor receives the phone call from an Authorized Person of the Participant referenced in item (1) above, the Distributor places a phone call to the Participant to inquire about the status of the Order. If the Participant does not fax the Redemption Order Form to the Distributor within 15 minutes after the Distributor’s phone call, the Participant’s Order may be cancelled. The Distributor will then notify the Participant that the Order has been cancelled via telephone call.

    
	 	 	 
	 	 3.         	
      If the Distributor has received the Participant’s Redemption Order Form on time in accordance with the preceding timing rules, then within thirty (30) minutes after the Order Cut-Off Time, the Distributor returns to the Participant a copy of the Redemption Order Form submitted, marking it “Approved.”

    
	 	 	 
	 	 4.         	
      After the Distributor receives required daily fund information from the Custodian, as promptly as practicable following the publication2 of the net asset value of the

    

2The net asset value of the applicable Trust and the net asset value per Share will be calculated as of the “NAV Calculation Time” as such term is defined in the Prospectus and publication thereof will occur as soon as practicable following such calculation.
4

	 	 	
      applicable Trust and the net asset value per Share of the Shares on the Redemption Order Date, the Distributor shall communicate to the Participant the amount of cash to be delivered in the Redemption Distribution.

    
	 	 	 
	 	 5.        	
      If the Distributor rejects a Redemption Order pursuant to the Trust Agreement or the Participant Agreement, the Distributor will promptly notify the Participant whose Redemption Order was rejected and the amount of cash contained in the rejected Redemption Order.

    
	 	 	 
	 	 6.        	
      By the Redemption Settlement Time, if the applicable Trust’s account at the Depository has by such time been credited with the Redemption Baskets being tendered for redemption, the Distributor shall deliver the Redemption Distribution through the Custodian to the account of the Participant.

    
	 	 	 
	 	 7.        	
      If by the Redemption Settlement Time, the Trust or its agents, as the case may be, has not received confirmation of receipt from a redeeming Participant all Redemption Baskets comprising the Redemption Order, the (i) Redemption Order will be settled to the extent of whole Redemption Basket(s) received from the Participant and (ii) the redeeming Participant’s Redemption Order will be kept open until noon, Eastern Time, on the first Business Day following the Redemption Settlement Date (the “Suspended Redemption Settlement Date”) as to the balance of the Redemption Order (such balance, the “Suspended Redemption Order”).

    
	 	 	 
	 	8. 	If the Redemption Basket(s) comprising the Suspended Redemption Order are credited to the applicable Trust’s account at the Depository by noon, Eastern Time, on such following Business Day, the Redemption Distribution with respect to the Suspended Redemption Order shall be paid in the manner provided in item (6) above if the Transfer Agent has received the fee referenced in item (10) below.
	 	 	 
	 	9. 	If by such Suspended Redemption Settlement Date the Trust or its agents, as the case may be, has not received from the redeeming Participant all Redemption Baskets comprising the Suspended Redemption Order, the Suspended Redemption Order will be settled to the extent of whole Redemption Baskets then received and any balance of the Suspended Redemption will be cancelled.
	 	 	 
	 	10.	If, by the Redemption Settlement Time the Trust or its agents, as the case may be, has not received from a redeeming Participant all Redemption Baskets comprising the Redemption Order or the Suspended Redemption Order, as applicable, the Participant will be charged an additional processing charge of $500.

 5Exhibit 10.1

  

 INTERACTIVE BROKERS INSTITUTIONAL SERVICES CUSTOMER AGREEMENT

 A. GENERAL PROVISIONS:

 1. Customer Agreement: This Agreement ("Agreement") governs the relationship between Customer (as agent on behalf of each of its Funds as set forth on Exhibit A hereto, each having separate but not joint liability) and Interactive Brokers LLC ("IB") for Execution and/or Settlement and Carrying Services. If provisions of this Agreement vary from the IB website or from other agreements between the parties, including but not limited to the FIA Uniform Brokerage Services Agreement or the SIA Prime Brokerage Agreement, this Agreement controls. This Agreement cannot be amended or waived except in writing by an IB officer. Customer Service employees cannot amend or waive any part of this Agreement.

 2. Order Execution: Orders subject to this Agreement may be executed: a) by IB or b) by an Executing Broker and given up to IB for settlement and carrying by IB but only if that Executing Broker and IB (as Prime Broker) have signed an agreement (such as the SIA Prime Brokerage Agreement and/or FIA Uniform Brokerage Services Give Up Agreement) providing for IB to take up Customer trades executed by that Executing Broker.

 3. Trade Settlement and Carrying of Account: Trades may be: a) settled and carried by IB or b) given up by IB for settlement and carrying by such other broker-dealers or futures commission merchants as Customer may designate as Customer's Prime Brokers, but only if IB has entered into an agreement (such as the SIA Prime Brokerage Agreement and/or FIA Uniform Brokerage Services Give Up Agreement) with Customer's Prime Brokers with respect to such transactions.

 4. No Investment, Tax or Trading Advice: IB representatives are not authorized to provide investment, tax or trading advice or to solicit orders. Nothing on IB's website is a recommendation or solicitation to buy or sell securities, futures or other investments.

 5. Customer Qualification: Customer and its authorized representatives warrant that Customer: (i) is authorized under its governing document(s) and in the jurisdictions in which it is organized and/or regulated to enter this Agreement and trade (including on margin if applicable); (ii) is under no legal incapacity; and (iii) that persons identified to enter orders have proper authority and have sufficient knowledge and experience to understand the nature and risks of the products to be traded.

 6. Responsibility for Customer Orders/Trades: Customer acknowledges that IB does not know whether someone entering orders with Customer's user name/password is Customer. Unless IB is notified and agrees, Customer will not allow anyone to access Customer's account. Customer is responsible for the confidentiality and use of Customer's user name/password and agrees to report any theft/loss of such user name/password, or any unauthorized access to Customer's account, immediately by telephone or electronically through the IB website. Customer remains responsible for all transactions entered using Customer's user name/password.

 7. IB-Executed Orders: IB shall execute Customer orders as agent, unless otherwise confirmed. IB can execute Customer orders as principal. IB may use another broker, or an affiliate, to execute orders, and they have benefit of all IB's rights hereunder. Unless otherwise directed, IB will select the market/dealer to which to route Customer's orders. For products traded at multiple markets, IB

 may provide “Smart Routing”, which seeks the best market for each order through a computerized algorithm. Customer should choose Smart Routing if available. If Customer directs orders to a particular market, Customer assumes responsibility for knowing and trading in accordance with the rules and policies of that market (e.g., trading hours, order types, etc.). Customer acknowledges that it may not be possible to cancel/modify an order and that Customer is responsible for executions notwithstanding a cancel/modify request. Customer understands that IB, in its sole discretion, may refuse to accept or execute transactions on Customer's behalf or restrict or prohibit trading in Customer's account(s).

 8. Proprietary Trading - Display of Customer Orders: Subject to all laws and regulations and subject to information barriers in place between IB and its affiliates engaged in proprietary trading, Customer authorizes IB to execute proprietary trades of itself and its affiliates, though IB may simultaneously hold unexecuted Customer orders for the same products at the same price.

 9. Confirmations: Customer agrees
to monitor each order until IB confirms execution or cancellation. Customer
acknowledges that confirmations of executions or cancellations may be delayed or
may be erroneous (e.g. due to computer system issues) or may be
cancelled/adjusted by an exchange. Customer is bound by the actual order
execution, if consistent with Customer's order. Customer agrees to notify IB
promptly by telephone or electronically through the IB website if: i) Customer
fails to receive an accurate confirmation of an execution or cancellation; ii)
Customer receives a confirmation that is different than Customer's order; iii)
Customer receives a confirmation for an order that Customer did not place; or
iv) Customer receives an account statement, confirmation, or other information
reflecting inaccurate orders, trades, balances, positions, margin status, or
transaction history. Customer acknowledges that IB may adjust Customer's account
to correct any error. Customer agrees to promptly return to IB any assets
erroneously distributed to Customer. All transactions are subject to rules and
policies of relevant markets and clearinghouses, and applicable laws and
regulations. IB IS NOT LIABLE FOR ANY ACTION OR DECISION OF ANY EXCHANGE,
MARKET, DEALER, CLEARINGHOUSE OR REGULATOR.

 10. Commissions and Fees, Interest Charges, Funds: Commissions and fees are at the rates specified on the IB website unless a specific commission/fee schedule has been agreed in writing between Customer and IB. If no written commission/fee schedule has been agreed between Customer and IB, changes to commissions/fees are effective immediately upon either of: posting on the IB website or email or other written notice to Customer. Unpaid balances and account deficits accrue interest at the rate of 1 % per month. Customer agrees to pay reasonable costs of collection for any unpaid Customer deficit or balance, including attorneys' and collection agent fees.

 A. For accounts carried by IB: Customer acknowledges that IB deducts commissions/fees from Customer accounts, which will reduce account equity. Positions will be liquidated if commissions or other charges cause a margin deficiency. IB shall pay credit interest to and charge debit interest from Customer at interest rates and terms on the IB website, unless otherwise agreed in writing. Customer funds will not be disbursed until after transactions are settled. Terms and conditions for deposit and withdrawal of funds (including holding periods) are as specified on the IB website.

 B. For accounts not carried by IB: Customer shall pay commissions and fees within ten days of receipt of IB's statement.

 11. Suspicious Activity: If IB in its sole discretion believes that a Customer account has been involved in any fraud or crime or violation of laws or regulations, or has been accessed unlawfully, or is otherwise involved in any suspicious activity (whether victim or perpetrator or otherwise), IB may suspend or freeze the account or any privileges of the account, may freeze or liquidate funds or assets, or may utilize any of the remedies in this Agreement for a “Default”.

 12. Security Interest: All Customer assets of any kind held by or on behalf of IB for Customer's account are hereby pledged to IB and are subject to a perfected first priority lien and security interest in IB's favor to secure performance of obligations and liabilities to IB arising under this or any other Agreement.

 13. Event of Default: A "Default" occurs automatically, subject to at least 2 days prior written notice, upon: (i) Customer breach/repudiation of any agreement with IB; (ii) Customer failure to provide assurance satisfactory to IB of performance of an obligation, after request from IB; (iii) proceedings by/against Customer under any bankruptcy, insolvency, or similar law that are not vacated or dismissed within 30 days; (iv) assignment for the benefit of Customer's creditors that are not vacated or dismissed within 30 days; or (v) appointment of a receiver, trustee, liquidator or similar officer for Customer or Customer property that are not vacated or dismissed within 30 days.

 Customer unconditionally agrees that, upon a Default, IB may terminate any or all IB's obligations to Customer and IB shall have the right in its discretion, but not the obligation, without prior notice, to liquidate all or any part of Customer's positions in any IB account, individual or joint, at any time and any manner and through any market or dealer. Customer shall reimburse and hold IB harmless for all actions, omissions, costs, fees (including, but not limited to, attorney's fees), or liabilities associated with any Customer Default or any transaction undertaken by IB upon Default.

   14. Risks of Foreign Markets; After Hours Trading: Customer acknowledges that trading securities, options, futures, currencies, or any product on a foreign market is speculative and involves high risk. There also are special risks of trading outside ordinary market hours, including risk of lower liquidity, higher volatility, changing prices, un-linked markets, news announcements affecting prices, and wider spreads. Customer represents that Customer is knowledgeable and able to assume these risks.

 15. Knowledge of Securities, Warrants and Options; Corporate Actions: Customer acknowledges Customer's responsibility for knowing the terms of any securities, futures contracts, options, warrants or other products in Customer's account, including upcoming corporate actions (e.g., tender offers, reorganizations, stock splits, etc.). IB has no obligation to notify Customer of deadlines or required actions or dates of meetings, nor is IB obligated to take any action without specific written instructions sent by Customer to IB electronically through the IB website.

 16. Quotes, Market Information, Research and Internet Links: Quotes, news, research and information accessible through IB (including through links to outside websites) ("Information") may be prepared by independent Providers. The Information is the property of IB, the Providers or their licensors and is protected by law. Customer agrees not to reproduce, distribute, sell or

 commercially exploit the Information in any manner without written consent of IB or the Providers. IB reserves the right to terminate access to the Information. None of the Information constitutes a recommendation by IB or a solicitation to buy or sell. Neither IB nor the Providers guarantee accuracy, timeliness, or completeness of the Information, and Customer should consult an advisor before making investment decisions. RELIANCE ON QUOTES, DATA OR OTHER INFORMATION IS AT CUSTOMER'S OWN RISK. IN NO EVENT WILL IB OR THE PROVIDERS BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL OR INDIRECT DAMAGES ARISING FROM USE OF THE INFORMATION. THERE IS NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE INFORMATION, INCLUDING WARRANTY OF MERCHANTIBILITY, WARRANTY OF FITNESS FOR A PARTICULAR USE, OR WARRANTY OF NON-INFRINGEMENT.

 17. License to Use IB Software: IB grants Customer a non-exclusive, non-transferable license to use IB Software solely as provided herein. Title to IB Software and updates shall remain the sole property of IB, including all patents, copyrights and trademarks. Customer shall not sell, exchange, or transfer the IB Software to others. Customer shall not copy, modify, translate, decompile, reverse engineer, disassemble or reduce to a human readable form, or adapt, the IB Software or use it to create a derivative work, unless authorized in writing by an officer of IB. IB is entitled to immediate injunctive relief for threatened breaches of these undertakings.

 18. LIMITATION OF LIABILITY AND
LIQUIDATED DAMAGES PROVISION: CUSTOMER ACCEPTS THE IB SYSTEM "AS IS",
AND WITHOUT WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE, PURPOSE
OR APPLICATION; TIMELINESS; FREEDOM FROM INTERRUPTION; OR ANY IMPLIED WARRANTIES
ARISING FROM TRADE USAGE, COURSE OF DEALING OR COURSE OF PERFORMANCE. UNDER NO
CIRCUMSTANCES SHALL IB BE LIABLE FOR ANY PUNITIVE, INDIRECT, INCIDENTAL, SPECIAL
OR CONSEQUENTIAL LOSS OR DAMAGES, INCLUDING LOSS OF BUSINESS, PROFITS OR
GOODWILL. IB SHALL NOT BE LIABLE TO CUSTOMER BY REASON OF DELAYS OR
INTERRUPTIONS OF SERVICE OR TRANSMISSIONS, OR FAILURES OF PERFORMANCE OF THE IB
SYSTEM, REGARDLESS OF CAUSE, INCLUDING, BUT NOT LIMITED TO, THOSE CAUSED BY
HARDWARE OR SOFTWARE MALFUNCTION; GOVERNMENTAL, EXCHANGE OR OTHER REGULATORY
ACTION; ACTS OF GOD; WAR, TERRORISM, OR IB'S INTENTIONAL ACTS. CUSTOMER
RECOGNIZES THAT THERE MAY BE DELAYS OR INTERRUPTIONS IN THE USE OF THE IB
SYSTEM, INCLUDING, FOR EXAMPLE, THOSE CAUSED INTENTIONALLY BY IB FOR PURPOSES OF
SERVICING THE IB SYSTEM. IN NO EVENT SHALL IB'S LIABILITY, REGARDLESS
OF THE FORM OF ACTION AND DAMAGES SUFFERED BY CUSTOMER, EXCEED THE AGGREGATE
COMMISSIONS PAID BY CUSTOMER TO IB OVER THE 6 MONTHS PRIOR TO THE EVENT GIVING
RISE TO CUSTOMER'S CLAIM.

 19. Customer Must Maintain Alternative
Trading Arrangements: Computer-based systems such as those used by IB
are inherently vulnerable to disruption, delay or failure.

 CUSTOMER MUST MAINTAIN ALTERNATIVE TRADING ARRANGEMENTS IN ADDITION TO CUSTOMER'S IB ACCOUNT FOR EXECUTION OF CUSTOMER'S ORDERS IN THE EVENT THAT THE IB SYSTEM IS UNAVAILABLE. By signing this Agreement, Customer represents that Customer maintains alternative trading arrangements.

 20. Consent To Accept Electronic Records
And Communications: IB provides electronic trade confirmations, account
statements, tax information and other Customer records and communications
(collectively, "Records and Communications") in electronic form. Electronic
Records and Communications may be sent to Customer's Trader Workstation or to
Customer's e-mail address, or for security purposes may be posted on the IB
website, with a notification sent to customer to login and retrieve the
Communication. By entering into this Agreement, Customer consents to the receipt
of electronic Records and Communications. Such consent will apply on an ongoing
basis and for every tax year unless withdrawn by Customer. Customer may withdraw
such consent at any time by providing electronic notice to IB through the IB
website. If Customer withdraws such consent, IB will provide required tax
documents in paper form upon request by telephone or via the IB website.
However, IB reserves the right to require Customer to close Customer's
account.

 In order to trade using the IB Trader Workstation ("TWS"), and to receive Records and Communications through the TWS, there are certain system hardware and software requirements, which are described on the IB Website at www.interactivebrokers.com. Since these requirements may change, Customer must periodically refer to the IB website for current system requirements. To receive electronic mail from IB, Customer is responsible for maintaining a valid Internet e-mail address and software allowing customer to read, send and receive e-mail. Customer must notify IB immediately of a change in Customer's e-mail address by using those procedures to change a Customer e-mail address that may be available on the IB website.

 21. Portfolio Management Services: IB will provide Customer with Portfolio Management Services as set forth in the attached “Annex: Portfolio Management Services”, which is incorporated by reference and made a part of this Agreement as if fully set forth herein.

 B. PROVISIONS RELATING TO TRADES AND POSITIONS TO BE SETTLED OR CARRIED BY IB:

 1. Application: The provisions of this Section B shall apply to trades and positions: a) executed, settled and carried by IB; or b) executed by another Executing Broker and given up to IB for settlement and carrying; or c) trades or positions that Customer's Prime Broker indicates its intention not to settle or take up, or fails to settle or take up.

 2. Margin:

   A. Requirement to Maintain Sufficient Margin Continuously: Margin transactions are subject to initial and maintenance margin requirements of exchanges, clearinghouses and regulators and also to any additional margin requirement of IB, which may be greater ("Margin Requirements"). IB MAY MODIFY MARGIN REQUIREMENTS FOR ANY OR ALL CUSTOMERS FOR ANY OPEN OR NEW POSITIONS AT ANY TIME, IN IB'S SOLE DISCRETION.

 CUSTOMER SHALL MAINTAIN, WITHOUT NOTICE OR DEMAND, SUFFICIENT

 EQUITY AT ALL TIMES TO CONTINUOUSLY MEET MARGIN REQUIREMENTS. CUSTOMER SHALL MONITOR THEIR ACCOUNT SO THAT AT ALL TIMES THE ACCOUNT CONTAINS SUFFICIENT EQUITY TO MEET MARGIN REQUIREMENTS. IF THE ACCOUNT HAS INSUFFICIENT EQUITY TO MEET MARGIN REQUIREMENTS, IB MAY REJECT ANY ORDER SUBMITTED BY CUSTOMER OR DECLINE TO ACCEPT FOR SETTLEMENT (OR MAY “DK” OR DISAFFIRM OR RETURN) OR MAY LIQUIDATE ANY POSITION SUBMITTED TO IB BY EXECUTING BROKER FOR SETTLEMENT. Formulas for calculating Margin Requirements on the IB website are indicative only and may not reflect actual Margin Requirements. Customers must at all times satisfy whatever Margin Requirement is calculated by IB.

 B. IB Will Not Issue Margin Calls: IB does not have to notify Customer of any failure to meet Margin Requirements prior to IB exercising its rights under this Agreement. Customer acknowledges that IB generally will not issue margin calls; generally will not credit Customer's account to meet intraday or overnight margin deficiencies; and is authorized to liquidate account positions in order to satisfy Margin Requirements without prior notice.

   C. Liquidation of Positions and
Offsetting Transactions: 

  i. IF AT ANY TIME CUSTOMER'S ACCOUNT HAS
INSUFFICIENT EQUITY TO MEET MARGIN REQUIREMENTS OR IS IN DEFICIT, IB HAS THE
RIGHT, IN ITS SOLE DISCRETION, BUT NOT THE OBLIGATION, TO LIQUIDATE ALL OR ANY
PART OF CUSTOMER'S POSITIONS IN ANY OF CUSTOMER'S IB ACCOUNTS, AT ANY TIME AND
IN ANY MANNER AND THROUGH ANY MARKET OR DEALER, WITHOUT PRIOR NOTICE OR MARGIN
CALL TO CUSTOMER. CUSTOMER SHALL BE LIABLE AND WILL PROMPTLY PAY IB FOR ANY
DEFICIENCIES IN CUSTOMER'S ACCOUNT THAT ARISE FROM SUCH LIQUIDATION OR REMAIN
AFTER SUCH LIQUIDATION. IB HAS NO LIABILITY FOR ANY LOSS SUSTAINED BY CUSTOMER
IN CONNECTION WITH SUCH LIQUIDATIONS (OR IF THE IB SYSTEM DELAYS EFFECTING, OR
DOES NOT EFFECT, SUCH LIQUIDATIONS) EVEN IF CUSTOMER RE-ESTABLISHES ITS POSITION
AT A WORSE PRICE. 

  ii. IB may allow Customer to pre-request the order of
liquidation in event of a margin deficiency, but such requests are not binding
on IB and IB retains sole discretion to determine the assets to be liquidated
and the order/manner of liquidation. IB may liquidate through any market or
dealer, and IB or its affiliates may take the other side of the transactions
consistent with laws and regulations. If IB liquidates any/all positions in
Customer's account, such liquidation shall establish Customer's gain/loss and
remaining indebtedness to IB, if any. Customer shall reimburse and hold IB
harmless for all actions, omissions, costs, fees (including, but not limited to,
attorney's fees), or liabilities associated with any such transaction undertaken
by IB. If IB executes an order (or receives for settlement from Customer's
Executing Broker a position) for which Customer did not have sufficient equity,
IB has the right, without notice, to liquidate the position (or to liquidate any
other positions in Customer's account sufficient to restore account equity to
comply with margin requirements) and Customer shall be responsible for any
resulting loss.

   iii. If IB does not, for any reason, liquidate under-margined
positions, and issues a margin call, Customer must satisfy such call immediately
by depositing funds. Customer acknowledges that

 even if a call is issued, IB still may liquidate positions at any time. 

iv. Customer acknowledges that IB also has the right to liquidate all or part of Customer's positions with prior notice upon any “Default” as described in this Agreement.

   3. Universal Accounts: An IB Universal Account is two underlying accounts, an SEC-regulated securities account and a CFTC-regulated commodity account. Customer authorizes transfers between the securities and commodity accounts to cover Margin Requirements and other obligations, and acknowledges IB may liquidate positions to cover obligations in the other account. Customer authorizes IB to provide combined confirmations/statements for both accounts. Customer acknowledges that only assets in the securities account are covered by SIPC protection and excess coverage and not assets in the commodity account.

 4. Short Sales: Customer acknowledges that short sales must be done in a margin account, subject to Margin Requirements; that prior to selling short, IB must believe it can borrow stock for delivery; and that if IB cannot borrow stock (or re-borrow after a recall notice) IB may buy-in stock on Customer's behalf, without notice to Customer, to cover short positions and Customer is liable for any losses/costs.

 5. IB's Right to Loan/Pledge Customer Assets: As allowed by law, IB is authorized by Customer to lend to itself or others Customer securities or assets. IB may, without notice, pledge, re-pledge, hypothecate or re-hypothecate Customer securities and assets, separately or together with those of other customers, for any amount due in any IB account in which Customer has an interest, without retaining in IB's possession or control a like amount of assets. For loans of securities, IB may receive financial and other benefits to which Customer is not entitled. Such loans could limit Customer's ability to exercise securities' voting rights.

 6. Multi-Currency Function in IB Accounts:

 A. Customers may be able to trade products denominated in different currencies using a base currency chosen by Customer. Upon purchase of a product denominated in a different currency from the base currency, a margin loan is created to fund the purchase, secured by the assets in Customer's accounts. If Customer maintains positions denominated in foreign currencies, IB will calculate Margin Requirements by applying exchange rates specified by IB. IB WILL APPLY "HAIRCUTS" (A PERCENTAGE DISCOUNT ON THE FOREIGN CURRENCY EQUITY AMOUNT) TO REFLECT THE POSSIBILITY OF FLUCTUATING EXCHANGE RATES BETWEEN THE BASE CURRENCY AND THE FOREIGN CURRENCY. CUSTOMER MUST CLOSELY MONITOR MARGIN REQUIREMENTS AT ALL TIMES, PARTICULARLY FOR POSITIONS DENOMINATED IN FOREIGN CURRENCIES, BECAUSE FLUCTUATION IN THE CURRENCY AND THE VALUE OF THE UNDERLYING POSITION CAN CAUSE A MARGIN DEFICIT.

 B. Customer agrees that IB’s obligations to Customer shall be denominated in: (i) the United States dollar; (ii) a currency in which funds were deposited by Customer or were converted at the request of Customer, to the extent of such deposits and conversions; or (iii) a currency in which funds have accrued to the customer as a result of trading conducted on a designated contract market or registered derivatives transaction execution facility, to the extent of such accruals. Information regarding Customer’s currency conversions is provided on the IB customer

 statements. Customer further agrees that IB may hold customer funds in: (i) the United States; (ii) a money center country as defined by the US Commodity Exchange Act & regulations thereunder; or (iii) the country of origin of the currency. In addition, Customer acknowledges and authorizes IB to hold Customer’s funds outside the United States, in a jurisdiction that is neither a money center country nor the country of origin of the currency in order to facilitate Customer’s trading in investments denominated in that currency.

 7. Foreign Currency Exchange (“Forex”) Transactions:

 A. HIGH RISKS OF FOREX TRADING: FOREX TRADING IS GENERALLY UNREGULATED, IS HIGHLY RISKY DUE TO THE LEVERAGE (MARGIN) INVOLVED, AND MAY RESULT IN LOSS OF FUNDS GREATER THAN CUSTOMER DEPOSITED IN THE ACCOUNT. Customer acknowledges the “Risk Disclosure Statement for Forex Trading and Multi-Currency Accounts” provided separately by IB.

 B. For Forex transactions, IB generally will act as agent or riskless principal and charge a fee. IB may effect Forex transactions through an affiliate or third party, which may profit or lose from such transactions. Customer agrees that IB may transfer to or from Customer's regulated futures or securities account(s) from or to any of Customer's non-regulated Forex account any funds or assets that may be required to avoid margin calls, reduce debit balances or for any other lawful reason.

 C. Netting: (i) Netting by
Novation. Each Forex transaction between Customer and IB will immediately be
netted with all then existing Forex transactions between Customer and IB for the
same currencies to constitute one transaction. (ii) Payment Netting. If
on any delivery date more than one delivery of a currency is due, each party
shall aggregate the amounts deliverable and only the difference shall be
delivered. (iii) Close-Out Netting. If Customer: (a) incurs a margin
deficit in any IB account, (b) defaults on any obligation to IB, (c) becomes
subject to bankruptcy, insolvency or other similar proceedings, or (d) fails to
pay debts when due, IB has the right but not the obligation to close-out
Customer's Forex transactions, liquidate all or some of Customer's collateral
and apply the proceeds to any debt to IB. (iv) Upon Close-Out Netting or any
“Default”, all outstanding Forex transactions will be deemed
terminated as of the time immediately preceding the triggering event, petition
or proceeding. (v) IB's rights herein are in addition to any other rights IB has
(whether by agreement, by law or otherwise).

 D. Nothing herein constitutes a commitment of IB to offer Forex transactions generally or to enter into any specific Forex transaction. IB reserves the unlimited right to refuse any Forex order or to decline to quote a two-way market in any currency.

 8. Commodity Options and Futures Not Settled in Cash: Customer acknowledges that: (A) commodity options cannot be exercised and must be closed out by offset; and (B) for futures contracts that settle not in cash but by physical delivery of the commodity (including currencies not on IB's Deliverable Currency List), Customer cannot make or receive delivery. If Customer has not offset a commodity option or physical delivery futures position prior to the deadline on the IB website, IB is authorized to roll or liquidate the position or liquidate any position or commodity resulting from the option or futures contract, and Customer is liable for all losses/costs.

 C. PROVISIONS RELATING TO TRADES TO BE EXECUTED BY IB AND GIVEN UP TO CUSTOMER'S PRIME BROKER FOR SETTLEMENT

 1. Application: The provisions of this Section C shall apply to trades and positions to be executed by IB and given up for settlement to Customer's Prime Broker.

 2. Securities Transactions: IB will clear Customer's securities transactions in a broker-dealer credit account established in the name of Prime Broker and designated for Customer's benefit. On the settlement date for each transaction, IB will deliver or receive Customer's securities to or from Prime Broker against payment in full by or to Prime Broker on Customer's behalf.

 3. Commodities Transactions: Commodity transactions will be handled in accordance with a Give-Up Agreement to be executed separately herefrom.

 4. Customer Trade Data: Customer hereby authorizes IB to inform Prime Broker of all the details of each transaction for Customer's account (“Trade Data”), and Customer hereby agrees to inform Prime Broker of the Trade Data on trade date by the time designated to Customer by Prime Broker. In the event of any discrepancy in the Trade Data reported to Prime Broker by Customer and the Trade Data reported to Prime Broker by IB, Customer shall be responsible for resolving such discrepancy promptly, and Customer shall be liable to IB for any loss, cost or expense sustained by IB arising out of such transaction.

 5. Short, Short Exempt and Long Sales: When placing any order to sell securities short, Customer is responsible
for designating the order as such, and Customer hereby authorizes IB to mark the
order as being “short” or “short exempt”. In placing any
long sell order, Customer will designate the order as such and hereby authorizes
IB to mark the order as being “long.” The designation of a sell order
as being “long” shall constitute a representation by Customer that (i)
Customer owns the security with respect to which the sale order has been placed
and (ii) if Prime Broker does not have the security in its possession at the
time Customer places the sell order, Customer shall deliver the security to
Prime Broker by settlement date in good deliverable form and if Customer fails
to deliver as such, pay to IB any losses and expenses it may incur or sustain as
a result of Prime Broker's failure to settle any such transaction on Customer's
behalf. Customer further agrees to provide IB with information concerning any
securities borrowing arrangements made by Customer and/or Prime Broker in
connection with any short sales.

  6. Customer Qualification

A. Customer shall be required to maintain in
Customer's securities account with Prime Broker such minimum net equity in cash
or securities as may be required, from time to time, by Prime Broker (the
"Minimum Net Equity"), which shall in no event be less than the minimum net
equity required by the SEC's 1994 Prime Brokerage No-Action Letter, as such
requirement may be amended from time to time (initially: (i) $100,000 in
cash or securities with a ready market, for trades executed on behalf of a
customer account managed by an investment adviser registered under Section 203
of the Investment Advisors Act of 1940 (a "Registered Investment Adviser"), or
(ii) $500,000 in cash or securities with a ready market for trades executed
on behalf of an account not managed by a Registered Investment Advisor).
Customer further understands that, in the event Customer's account falls below
such Minimum Net Equity, Customer shall bring Customer's account into compliance
in a timely fashion. Each time Customer enters an order with IB, Customer hereby
represents that Customer shall be in compliance with such Minimum Net Equity or
will notify IB otherwise.

 B. In the event that Prime Broker indicates its
intention to disaffirm or fail to take up any trade, Customer hereby authorizes
and instructs Prime Broker to provide to IB, upon the request of IB, the
following information: (i) the account or accounts to which any of Customer's
orders or trades relate; (ii) the instructions, if any, provided to Prime Broker
regarding the allocation of any orders or trades to any sub-accounts; and (iii)
information available to Prime Broker with respect to any net equity in the
account. In addition, this Agreement will serve as further authorization and
instruction to Prime Broker to furnish to IB in the event of a disaffirmance or
failure to take up all such further and additional information concerning an
account as IB shall request. This paragraph shall remain in effect so long as
this Agreement is in effect, shall survive the termination of this Agreement and
shall apply to all orders and trades given by Customer to IB for clearance and
settlement through Prime Broker. Customer hereby agrees to release and discharge
Prime Broker from all responsibility and liability arising out of or incurred in
connection with Prime Broker furnishing any information to IB pursuant to this
paragraph.

 7. Confirmations: IB shall confirm the Trade Data to Prime Broker and shall issue a confirmation for each transaction by the morning of the next business day after trade date. Customer may direct IB to send confirmations to Customer in care of Prime Broker.

 8. Customer's Settlement Obligation: In the event Prime Broker indicates its intention not to settle or take up, or fails to settle or take up, any of Customer's transactions, Customer shall be responsible and liable to IB for settling such transactions directly with IB in a securities margin account or commodities account that IB will open or has opened in Customer's name on its books in accordance with applicable regulations. The provisions of Section B of this Agreement shall apply to such transactions.

 D. OTHER PROVISIONS

   1. DISCLOSURE STATEMENT: THIS STATEMENT IS FURNISHED TO YOU BECAUSE RULE 190.10(c) OF THE COMMODITY FUTURES TRADING COMMISSION REQUIRES IT FOR REASONS OF FAIR NOTICE UNRELATED TO IB'S CURRENT FINANCIAL CONDITION: (A) YOU SHOULD KNOW THAT IN THE UNLIKELY EVENT OF THIS COMPANY'S BANKRUPTCY, PROPERTY, INCLUDING PROPERTY SPECIFICALLY TRACEABLE TO YOU, WILL BE RETURNED, TRANSFERRED OR DISTRIBUTED TO YOU, OR ON YOUR BEHALF, ONLY TO THE EXTENT OF YOUR PRO RATA SHARE OF ALL PROPERTY AVAILABLE FOR DISTRIBUTION TO CUSTOMERS; (B) NOTICE CONCERNING THE TERMS FOR THE RETURN OF SPECIFICALLY IDENTIFIABLE PROPERTY WILL BE MADE BY PUBLICATION IN A NEWSPAPER OF GENERAL CIRCULATION. (C) THE COMMISSION'S REGULATIONS CONCERNING BANKRUPTCIES OF COMMODITY BROKERS CAN BE FOUND AT 17 CODE OF FEDERAL REGULATIONS PART 190.

 2. Miscellaneous:

 A. This Agreement is governed by the laws of the State of Connecticut, without giving effect to conflict of laws provisions. Courts of Connecticut have non-exclusive jurisdiction over disputes relating to this Agreement, except when arbitration is provided. IN ALL

 JUDICIAL ACTIONS, ARBITRATIONS, OR DISPUTE RESOLUTION METHODS, THE PARTIES WAIVE ANY RIGHT TO PUNITIVE DAMAGES.

 B. Customer agrees to the provision of this Agreement in English and represents that Customer understands its terms and conditions. This Agreement contains the entire agreement between the parties, who have made no other representations or warranties. If any provision of this Agreement is unenforceable, it shall not invalidate other provisions. Failure of IB to enforce any term or condition of this Agreement is not a waiver of the term/condition.

 C. Customer consents to recording of all telephone conversations. Customer acknowledges the IBG Privacy Statement and consents to collection/use of Customer information as described therein.

 D. Customer may not assign or transfer any rights or obligations hereunder without the prior written consent of IB. Upon notice to Customer IB may assign this Agreement to another broker-dealer or futures commission merchant. This Agreement shall inure to the benefit of IB's successors and assigns. IB may terminate this Agreement or its services to Customer at any time. Customer may close its account upon notice to IB electronically through the IB website, but only after all positions are closed and all other requirements specified on the IB website regarding account closure are satisfied.

 E. Absent fraud or willful misconduct, IB agrees that Factor Capital Management, LLC (“Factor”) shall not have any liability for any of the Fund’s obligations, duties or liabilities hereunder and that IB irrevocably waives any recourse hereunder against Factor for liability of the Fund itself. Nothing in this paragraph is meant to waive IB’s rights to enforce any liabilities of Factor that may arise based on Factor’s conduct or legal obligations toward IB.

 F. IB and Customer have signed one agreement for administrative convenience and to avoid a multiplicity of documents. Notwithstanding any other provision of this Agreement, the parties expressly intend that this document will function and be construed as if IB had signed a separate Agreement with each Fund individually. Each Fund shall be liable only for its own obligations and no Fund shall be a guarantor of or jointly liable for the obligations of another Fund. IB agrees that neither Factor Capital Management, LLC, nor any shareholder in any Fund, shall have any liability for any of the Fund’s obligations, duties or liabilities hereunder and that IB irrevocably waives any recourse hereunder against Factor Capital Management, LLC or any shareholder in any Fund.

 3. Mandatory Arbitration:

	
      ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED.

	
      ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY'S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED.

	
      THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS STATEMENTS AND OTHER DISCOVERY IS GENERALLY MORE LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS.

	
THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD.

	
      THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY.

	
THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION.

	
IN SOME CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT.

	
      THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED, AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO THIS AGREEMENT.

 A. Customer agrees that any controversy,
dispute, claim, or grievance between IB, any IB affiliate or any of their
shareholders, officers, directors employees, associates, or agents, on the one
hand, and Customer or, if applicable, Customer's shareholders, officers,
directors employees, associates, or agents on the other hand, arising out of, or
relating to, this Agreement, or any account(s) established hereunder in which
securities may be traded; any transactions therein; any transactions between IB
and Customer; any provision of the Customer Agreement or any other agreement
between IB and Customer; or any breach of such transactions or agreements, shall
be resolved by arbitration, in accordance with the rules then prevailing of any
one of the following: (a) The American Arbitration Association; (b) The
Financial Industry Regulatory Authority; or (c) any other exchange of which IB
is a member; as the true claimant-in-interest may elect. If Customer is the
claimant-in-interest and has not selected an arbitration forum within ten days
of providing notice of Customer's intent to arbitrate, IB shall select the
forum. The award of the arbitrators, or a majority of them, shall be final, and
judgment upon the award rendered may be entered in any court, state or federal,
having jurisdiction.

 B. No person shall bring a putative or
certified class action to arbitration, nor seek to enforce any pre-dispute
arbitration agreement against any person who has initiated in court a putative
class action; or who is a member of a putative class who has not opted out of
the class with respect to any claims encompassed by the putative class action
until:

	
the class certification is denied; or

	
the class is decertified; or

	
the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.

 AGREED AND ACCEPTED this 10th day of August, 2010:

 AUTHORIZED SIGNATURE ON BEHALF OF FUNDS (each Fund having several, not joint liability)

 Funds:

FactorShares S&P US Equity Premium

FactorShares S&P US Anti-Equity Premium

FactorShares S&P US Equity Anti-USD

FactorShares S&P Crude Oil Premium

FactorShares S&P Gold Premium

  /s/ Stuart J. Rosenthal

    Authorized Signature for all Funds

  

  Stuart J. Rosenthal

    Print Name of Signer

  

  

  CEO

    Print Title of Signer

  

  

  10 August 2010

    Date
 Interactive Brokers LLC

  /s/ Bradford Jacobowitz  

    Authorized Signature

Bradford Jacobowitz   

  

  Print Name of Signer

Vice President

  

  Print Title of Signer

August 10, 2010

  

  Date

 Exhibit A: Funds

 FactorShares S&P US Equity Premium 

 FactorShares S&P US Anti-Equity Premium 

FactorShares S&P US Equity Anti-USD 

FactorShares S&P Crude Oil Premium 

FactorShares S&P Gold Premium

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