Document:

Exhibit 10.6

SCHEDULE

to the

2002 Master Agreement

dated as of __________

between

 [name of Counterparty]

(“Counterparty”),

and

EACH FUND REGISTERED UNDER THE SECURITIES ACT OF 1933

LISTED IN SCHEDULE 1 TO THE FACILITY AGREEMENT (AS

DEFINED BELOW), THE FUNDS AT THE DATE HEREOF BEING

AS LISTED IN EXHIBIT A HERETO

severally and not
jointly

(the “ Fund”),

acting by and through

ETF SECURITIES USA LLC
 not in its individual capacity but as sponsor

(“Sponsor”)

It is understood and agreed that this document shall constitute
a separate agreement with each party listed on Exhibit A attached hereto, as if
each such party had executed a separate document naming only itself as the
Fund, and that no party listed on Exhibit A shall have any liability under this
document for the obligations of any other party engaging in Transactions with
Counterparty, including any other party so listed. With respect to any one such
party, (i) only Confirmations of Transactions between Counterparty and such
party shall be part of the agreement with such party, (ii) references in this
Agreement (including this Schedule) to the Fund shall be deemed to refer only
to such party, and (iii) the term “this Agreement” shall be construed according
to the foregoing provisions.

The
parties have entered into a Facility Agreement dated
[            ] 2011
as amended, restated or supplemented from time to time(the “Facility
Agreement”) pursuant to which, inter alia, the parties have agreed, subject to
the conditions therein specified, from time to time to create and terminate
certain Transactions (described in the Facility Agreement as Commodity
Contracts) to be governed by this Agreement.

Capitalized
terms defined in the Facility Agreement shall have the same meanings in this
Agreement.

Part 1

Termination Provisions

	
  

 	
  

 
	
 (a)

 	
  “Specified Entity” ” shall have no meaning with respect to
 either party.

 
	
  

 	
  

 
	
 (b)

 	
  “Specified Transaction” shall have no meaning with respect to
 either party.. 

 
	
  

 	
  

 
	
 (c)

 	
 The “Cross Default”
 provisions of Section 5(a)(vi) will not apply to either party.

 

1

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
 None of the Events of
 Default listed in Section 5(a) shall apply to either party, and all
 references to an “Event of Default” shall be deemed to be references to an
 Event of Default as set out below, and the definition of “Event of Default” in Section 14 of this
 Agreement shall be amended accordingly.

 
	
  

 	
  

 
	
  

 	
  

 	
  “Event of
 Default” means:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 In
 the case of the Counterparty:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (a)

 	
 The
 occurrence of a Counterparty Event of Default under the Facility Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (b)

 	
 A
 breach by the Counterparty of any of its obligations under this Agreement or
 any Credit Support Document provided that such breach (if capable of
 being rectified) is not rectified within (5) five Business Days of the
 Counterparty receiving written notice from the Trust of such breach;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (c)

 	
 A
 representation contained in Section 3 (other than a representation under
 Section 3 (e) or 3(f)) made or repeated or deemed to have been made or
 repeated by the Counterparty or any Credit Support Provider of such party in
 this Agreement or any Credit Support Document proves to have been incorrect
 or misleading in any material respect which when made or repeated or deemed
 to have been made or repeated provided that such misrepresentation (if
 capable of being rectified) is not rectified within (5) five Business Days of
 the Counterparty receiving written notice from the Trust of such breach; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (d)

 	
 [the
 Credit Support Provider failing to pay an amount due under the [Guarantee],
 when due].

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 In
 the case of the Fund:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (a)

 	
 the
 occurrence of a Fund Event of Default under the Facility Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (b)

 	
 a
 breach by the Fund of any of its obligations under this Agreement or any
 Credit Support Document provided that such breach (if capable of
 being rectified) is not rectified within (5) five Business Days of the Fund
 receiving written notice from the Counterparty of such breach; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (c)

 	
 A
 representation contained in Section 3 (other than a representation under
 section 3(e) or 3(f)) made or repeated or deemed to have been made or
 repeated by the Fund or any Credit Support Provider of such party in this
 Agreement or any Credit Support Document proves to have been incorrect or
 misleading in any material respect which when made or repeated or deemed to
 have been made or repeated provided that such misrepresentation (if
 capable of being rectified) is not rectified within (5) five Business Days of
 the Fund receiving written notice from the Counterparty of such breach.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
 None of the Termination Events listed in
 Section 5(b) shall apply to either party, and all references to a “Termination Event” (other
 than an Additional Termination Event) shall be deemed to be references to a
 right to terminate arising under Clauses 9.1(a) or (b) (in the case of the
 Counterparty) or Clauses 9.2(a), (b), (c) or (e), of the Facility Agreement,
 or under Clauses 9.3 (Material Adverse Change), 9.4 (Fall in Intra-day Price)
 and the definition of “Termination Event” in Section 14 shall be amended
 accordingly. For the purposes of such Termination Events the person on whom
 the relevant termination notice is or may be served under Clause 9.1-9.4
 shall be the sole Affected Party and (i) in the case of a Termination Event
 occurring under Clauses 9.1-9.3, all Transactions shall be Affected
 Transactions and (ii) in the case a Termination Event occurring under Clause
 9.4, those Transactions in respect of which the Intra-day Price has fallen to
 or below zero shall be Affected Transactions.

 

2

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
 Additional
 Termination Event will apply. Each of the following shall
 constitute an Additional Termination Event as specified below:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1)

 	
 Hedging
 Disruption Event. The
 occurrence of a “Hedging Disruption Event” as defined in the Facility
 Agreement entitling the Counterparty to give notice of a Compulsory Pricing
 Date in accordance with Clause 16.3 of the Facility Agreement with the Fund
 being the sole Affected Party and all Transactions which may be so terminated
 under such Clause 16.3 being Affected Transactions. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2)

 	
  Termination of Facility Agreement. The Facility Agreement is terminated for
 any reason other than an Event of Default (as defined therein). Both parties
 shall be Affected Parties for the foregoing Additional Termination Event and
 all Transactions shall be Affected Transactions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3)

 	
 Prohibited
 Transaction. Following the application of the procedures in
 Clause 18[ ] of the Facility Agreement the relevant Shareholder does not give
 the required certification to the Fund or alternatively certifies that it is
 a Prohibited Benefit Plan Investor or a Prohibited US Person. The Fund shall
 be the sole Affected Party for the foregoing Additional Termination Event and
 all Transactions in respect of the Shares held by the relevant Shareholder
 shall be Affected Transactions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
 If at any time an Event of Default with
 respect to a party has occurred and is then continuing the other party (the
 “non-Defaulting Party”) may exercise its rights of termination under Clause 9
 of the Facility Agreement. The provisions of section 6 (Early Termination;
 Close-Out Netting) will not apply to either party.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (h)

 	
 If
 at any time a
 Termination Event with respect to a party has occurred and is continuing then
 if there is only one Affected Party the other party (the “non-Affected
 Party”) may exercise its rights of termination under Clause 9 of the Facility
 Agreement, and if there are two Affected Parties either party may exercise
 its right of termination on the terms of Clause 9 of the Facility Agreement.

 

3

Part 2

Tax Representations

	
  

 	
  

 	
  

 
	
 (a)

 	
 Payer Tax Representations. For the purpose of Section 3(e) of this
 Agreement, Counterparty and the Fund each makes the following representation:

 
	
  

 	
  

 	
  

 
	
  

 	
 It
 is not required by any applicable law, as modified by the practice of any
 relevant governmental revenue authority, of any Relevant Jurisdiction to make
 any deduction or withholding for or on account of any Tax from any payment
 (other than interest under Section 9(h) of this Agreement) to be made by it
 to the other party under this Agreement. In making this representation, it
 may rely on (i) the accuracy of any representations made by the other party
 pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the
 agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the
 accuracy and effectiveness of any document provided by the other party
 pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the
 satisfaction of the agreement of the other party contained in Section 4(d) of
 this Agreement, PROVIDED that it shall not be a breach of this representation
 where reliance is placed on sub-clause (ii) above and the other party does
 not deliver a form or document under Section 4(a)(iii) by reason of material
 prejudice to its legal or commercial position.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 Payee Tax Representations. For the purpose of Section 3(f) of this
Agreement, Counterparty makes the following representations to the Fund:  

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)
 In respect of each Transaction that Counterparty enters into under this
 Agreement through an Office that is located in the U.S., or for every
 Transaction in which personnel of Counterparty located in the U.S. materially
 participated, Counterparty makes the following representation to the Fund:

 
	
  

 	
  

 	
  

 
	
  

 	
 Each
 payment received or to be received by Counterparty in connection with this
 Agreement will be effectively connected with the conduct of a trade or
 business by Counterparty in the U.S. or treated by Counterparty as being
 received by Counterparty as an intermediary for a person that is a United
 States person with the meaning of Section 7701(a)(3) of the Internal Revenue
 Code of 1986, as amended. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)
 In respect of each Transaction that Counterparty enters into under this
 Agreement through an Office that is not located in the U.S., and in which
 personnel of Counterparty located in the U.S. did not materially participate,
 Counterparty makes the following representations to the Fund:

 
	
  

 	
  

 	
  

 
	
  

 	
 No
 payment received or to be received by Counterparty under this Agreement will
 be effectively connected with Counterparty’s conduct of a trade or business
 within the U.S. It is fully eligible for the benefits of the “Business
 Profits” or “Industrial and Commercial Profits” provision, as the case may
 be, the “Interest” provision or the “Other Income” provision (if any) of the
 Specified Treaty with respect to any payment described in such provisions and
 received or to be received by it in connection with this Agreement and no
 such payment is attributable to a trade or business carried on by it through
 a permanent establishment in the Specified Jurisdiction. Each payment
 received or to be received by it in connection with this Agreement (other
 than interest under Section 2(e), 6(d)(ii) and 6(e)) qualifies as “Business
 Profits,” “Industrial and Commercial Profits,” “Interest” or “Other Income”
 under the Specified Treaty.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If
 such representation applies, then:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Specified
 Treaty” means, with respect to a Transaction, the tax treaty applicable
 between the United States of America and Switzerland.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Specified
 Jurisdiction” means the United States of America.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counterparty
 is a ‘non-U.S. branch of a foreign person’ as that term is used in section
 1.1441-4(a)(3)(ii) of the U.S. Treasury Regulations (the “Regulations”), and
 Counterparty is a ‘foreign person’ as that term is used in section
 1.6041-4(a)(4) of the Regulations.

 

4

	
  

 	
  

 
	
 (c)

 	
 Payee Tax Representations. For the purpose of Section 3(f) of this
 Agreement, the Fund makes the following representation to Counterparty: It is
 a United States person within the meaning of Section 7701(a)(30) of the
 Internal Revenue Code of 1986, as amended.]

 

5

Part 3

Agreement to Deliver Documents

For
the purposes of Sections 3(d), 4(a)(i) and (ii) of this Agreement, each party
agrees to supply the following documents:

	
  

 	
  

 
	
 (a)

 	
 Tax forms, documents or
 certificates to be delivered are:

 

Each
party agrees to complete, accurately and in a manner reasonably satisfactory to
the other party, and to execute, arrange for any required certification of, and
deliver to the other party (or to such government or taxing authority as the
other party reasonably directs), any form or document that may be required or
reasonably requested in order to allow the other party to make a payment under
this Agreement (or a Credit Support Document of the other party) without any
deduction or withholding for or on account of any Tax or with such deduction or
withholding at a reduced rate, promptly upon the earlier of (i) reasonable
demand by the other party and (ii) learning that the form or document is
required.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Party
 required to

 deliver document

 	
  

 	
 Form/Document/Certificate

 	
  

 	
 Date
 by which to be delivered

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Counterparty

 	
  

 	
 A duly completed and
 executed U.S. Internal Revenue Service Form W-9; or

 

 With respect to each Transaction that is identified in Part 2(b)(i), one duly
 executed and completed U.S. Internal Revenue Service Form W-8ECI or Form
 W-8IMY with a Form W-9 attached (or successors thereto).]

 	
  

 	
 [(i)] Upon execution and
 delivery of this Agreement, with such form to be updated at the beginning of
 each succeeding three calendar year period beginning after execution of this
 Agreement, or as otherwise required under then applicable U.S. Treasury
 Regulations; [(ii) promptly upon reasonable demand by the Fund; and (iii)
 promptly upon learning that any form previously provided has become obsolete
 or incorrect.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Counterparty

 	
  

 	
 A duly completed and
 executed U.S. Internal Revenue Service Form W-9.

 

 With respect to each
 Transaction that is entered into under this Agreement identified in Part
 2(b)(i), one duly executed and completed U.S. Internal Revenue Service Form
 W-8BEN (or successor thereto).]

 	
  

 	
 [(i)] Upon execution and
 delivery of this Agreement, with such form to be updated at the beginning of
 each succeeding three calendar year period beginning after execution of this
 Agreement, or as otherwise required under then applicable U.S. Treasury
 Regulations; [(ii) promptly upon reasonable demand by the Fund; and (iii)
 promptly upon learning that any form previously provided has become obsolete
 or incorrect.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 The Fund

 	
  

 	
 A duly completed and
 executed U.S. Internal Revenue Service Form W-9.

 	
  

 	
 (i) Upon execution and
 delivery of this Agreement, (ii) promptly upon reasonable demand by
 Counterparty, and (iii) promptly upon learning that any such Form previously
 provided by the Fund has become obsolete or incorrect.

 

	
  

 	
  

 
	
 (b)

 	
 Other documents to be
 delivered are:

 

6

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Party

 required to

 deliver

 document

 	
  

 	
 Form/Document/Certificate

 	
  

 	
 Date by

 which to be

 delivered

 	
  

 	
 Covered by

 Section 3(d)

 Representation

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Counterparty

 	
  

 	
 Credit Support Document,
 if any, specified in Part 4 of the Schedule, such Credit Support Document
 being duly executed if required.

 	
  

 	
 Upon execution and
 delivery of this Agreement.

 	
  

 	
 [     ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  [Opinions]

 	
  

 	
  

 	
  

 	
 [     ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Counterparty, the Fund
 [and Sponsor]

 	
  

 	
 Certificate of authority
 and specimen signatures of individuals executing this Agreement, any other
 document executed in connection with this Agreement, the Trust Documents and the
 Platform Documents where applicable.

 	
  

 	
 Upon execution and
 delivery of this Agreement and thereafter upon request.

 	
  

 	
 [     ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Counterparty

 	
  

 	
 [Annual audited financial
 statements of Counterparty prepared in accordance with generally accepted
 accounting principles in the country in which Counterparty is organized.]
 [MCLI] [Annual audited financial statements of Counterparty’s Credit Support
 Provider prepared in accordance with generally accepted accounting principles
 in the country in which Counterparty’s Credit Support Provider is organized.]

 	
  

 	
 If not publicly available.
 promptly after request.

 	
  

 	
 [     ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 The Fund [and Sponsor]

 	
  

 	
 Annual Report of each such
 entity (if available) and audited financial statements certified by
 independent certified public accountants and prepared in accordance with
 generally accepted accounting principles in the country in which such entity
 is organized (if not included within such Annual Report).

 	
  

 	
 As soon as available and
 in any event within [90] days after the end of each fiscal year of each such
 entity.

 	
  

 	
 [     ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 The Fund and Sponsor

 	
  

 	
 Certified copies of all
 corporate authorizations with respect to the execution, delivery and
 performance of this Agreement, the Trust Documents and the Platform
 Documents.

 	
  

 	
 Upon execution and
 delivery of this Agreement.

 	
  

 	
 [     ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 The Fund and Sponsor

 	
  

 	
 Certified copies of the
 Trust Documents between the Fund and the Sponsor (if any), which authorize
 the Sponsor to execute, deliver and perform this 

 	
  

 	
 Upon execution and delivery
 of this Agreement.

 	
  

 	
 [     ]

 

7

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Party

 required to

 deliver

 document

 	
  

 	
 Form/Document/Certificate

 	
  

 	
 Date by

 which to be

 delivered

 	
  

 	
 Covered
 by

 Section 3(d)

 Representation

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
 Agreement (including each
 Confirmation), and the Platform Documents, [and to enter into Transactions as
 agent for the Fund].

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 The Fund

 	
  

 	
 Any and all other
 information provided to investors of the Fund including, but not limited to,
 any revisions, amendments or material changes to prospectus, SAI, etc. affecting
 the Fund.

 	
  

 	
 Concurrently with delivery
 to investors of the Fund.

 	
  

 	
 [     ]

 

8

Part 4

Miscellaneous

	
  

 	
  

 	
  

 
	
 (a)

 	
 Address for
 notices. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Counterparty

 
	
  

 	
 Notices
 or communications to Counterparty shall, with respect to a particular
 Transaction, be sent to the address or facsimile number reflected in the
 Confirmation of that Transaction shall be sent to:

 
	
  

 	
  

 	
  

 
	
  

 	
 Address:

 	
 [                 ]

 
	
  

 	
 Attention:

 	
 [                 ]

 
	
  

 	
 Facsimile:

 	
 [                 ]

 
	
  

 	
  

 	
  

 
	
  

 	
 The Fund

 	
  

 
	
  

 	
 Address
 for notices or communications to the Fund shall be sent to the address, telex
 number or facsimile number specified below:

 
	
  

 	
  

 	
  

 
	
  

 	
 Address:

 	
  

 
	
  

 	
 Attention:

 	
  

 
	
  

 	
 Facsimile
 no:

 	
  

 
	
  

 	
 Telephone
 no:

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 Process Agent. For the purpose of Section 13(c) of this
 Agreement: 

 
	
  

 	
 In
 respect of Counterparty: Not applicable. 

 
	
  

 	
 In
 respect of the Fund, the Fund appoints as its Process Agent: Not applicable.

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 Offices. The provisions of Section 10(a) of this
 Agreement will apply to Counterparty and the Fund.

 
	
  

 	
  

 
	
 (d)

 	
 Multibranch
 Party. For the
 purpose of Section 10(b) of this Agreement:

 
	
  

 	
  

 
	
  

 	
 [CP]
 Counterparty is not a Multibranch Party.

 
	
  

 	
 Party
 A is a Multibranch Party and may act through its branches in any of the
 following territories or countries:

 
	
  

 	
 Australia,
 England and Wales, Hong Kong, Singapore, Switzerland and United States of
 America.

 
	
  

 	
  

 
	
  

 	
 The
 Fund is not a Multibranch
 Party. 

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 Calculation
 Agent. The
 Calculation Agent is [________________], or such other person as may be
 appointed as Calculation Agent by the Trust.

 
	
  

 	
  

 	
  

 
	
 (f)

 	
 Credit Support
 Document. [The
 Credit Support Annex attached hereto is a Credit Support Document with
 respect to Counterparty for all purposes hereunder and is incorporated herein
 and made a part of this Agreement as if set forth in full in this Agreement.]
 [MCLI][Counterparty: (i) The Credit Support Annex attached hereto is a Credit
 Support Document with respect to Counterparty for all purposes hereunder and
 is incorporated in and made a part of this Agreement [and each Confirmation]
 as if set forth in full in this Agreement [or such Confirmation], and (ii) a
 Guaranty, executed by Bank of America corporation in the form attached hereto
 as Exhibit B]

 
	
  

 	
  

 
	
 (g)

 	
 Credit Support
 Provider.
 Credit Support Provider means in relation to

 
	
  

 	
 o

 	
 Counterparty:
 [Not Applicable][Applicable]. 

 
	
  

 	
 o

 	
 the
 Fund: Not Applicable.

 
	
  

 	
  

 	
  

 
	
 (h)

 	
 Governing Law. This Agreement
 will be governed by, and construed in accordance with, the laws of the State
 of New York.

 

9

	
  

 	
  

 
	
 (i)

 	
 Netting of
 Payments.
 Multiple Transaction Payment Netting will [not] apply for the purpose of
 Section 2(c) of this Agreement[To be discussed].

 
	
  

 	
  

 	
  

 
	
 (j)

 	
  “Affiliate” will have the meaning given in the
 Facility Agreement and Section 14 shall be amended accordingly.

 

10

Part 5

Other Provisions

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 Mutual Representations. For purposes
of Section 3, the following shall be added, immediately following paragraph
(f) thereto: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “(i)

 	
 Relationship Between Parties. Each
 party represents to the other party and will be deemed to represent to the
 other party on the date on which it enters into a Transaction that (absent a
 written agreement between the parties that expressly imposes affirmative
 obligations to the contrary for that Transaction):-

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 Non-Reliance. In connection with the negotiation of, the
 entering into, and the confirming of the execution of, this Agreement, any
 Credit Support Document to which it is a party, and each Transaction: (i) it
 is acting as principal (and not as agent or in any other capacity, fiduciary
 or otherwise); (ii) the other party is not acting as a fiduciary or financial
 or investment advisor for it; (iii) it is not relying upon any
 representations (whether written or oral) of the other party other than the
 representations expressly set forth in this Agreement and in such Credit
 Support Document; (iv) the other party has not given to it (directly or
 indirectly through any other person) any advice, counsel, assurance,
 guaranty, or representation whatsoever as to the expected or projected
 success, profitability, return, performance, result, effect, consequence, or
 benefit (either legal, regulatory, tax, financial, accounting, or otherwise)
 of this Agreement, such Credit Support Document, or such Transaction; (v) it
 has consulted with its own legal, regulatory, tax, business, investment,
 financial, and accounting advisors to the extent it has deemed necessary, and
 it has made its own investment, hedging, and trading decisions based upon its
 own judgment and upon any advice from such advisors as it has deemed
 necessary, and not upon any view expressed by the other party; (vi) all
 trading decisions have been the result of arm’s length negotiations between
 the parties; and (vii) it is entering into this Agreement, such Credit
 Support Document, and such Transaction with a full understanding of all of the
 risks hereof and thereof (economic and otherwise), and it is capable of
 assuming and willing to assume (financially and otherwise) those risks.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  (ii)

 	
 Eligible Contract Participant. It is an
“eligible contract participant” as defined in Section 1a(12) of the U.S.
Commodity Exchange Act, 7 U.S.C. Section 1a(12).” 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 Standardization, Creditworthiness, and Transferability. The economic terms of this Agreement, any
 Credit Support Document to which it is a party, and each Transaction have
 been individually tailored and negotiated by it; it has received and reviewed
 financial information concerning the other party and has had a reasonable
 opportunity to ask questions of and receive answers and information from the
 other party concerning such other party, this Agreement, such Credit Support
 Document, and such Transaction; the creditworthiness of the other party was a
 material consideration in its entering into or determining the terms of this
 Agreement, such Credit Support Document, and such Transaction; and the
 transferability of this Agreement, such Credit Support Document, and such
 Transaction is restricted as provided herein and therein.

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 Securities Act Representations. If any Transaction
 and/or the instrument underlying a Transaction is not otherwise exempt from
 the registration requirements of the United States Securities Act of 1933, as
 amended (the “Securities Act”), then each party makes the following
 representations, warranties and covenants with respect to such Transaction,
 and such representation, warranties and covenants shall

 

11

	
  

 	
  

 	
  

 
	
  

 	
 remain in full force and effect whenever the
 offeree or buyer of the Transaction and/or the offeree or buyer of the
 instrument underlying the Transaction (the “Offeree”) shall enter into a
 Transaction, or make any payment or delivery relating to a Transaction:

 
	
  

 	
  

 	
  

 
	
  

 	
 (A)

 	
 Each party is entering into the Transaction for its
 own account as principal, and not with a view to, or for, resale,
 distribution or fractionalization thereof, in whole or in part;

 
	
  

 	
  

 	
  

 
	
  

 	
 (B)

 	
 Each party acknowledges its understanding that the
 offer and sale of any Transaction with the other party is intended to be
 exempt from registration under the Securities Act, by virtue of Section 4(2)
 of the Securities Act. In furtherance thereof, each party represents and
 warrants to the other party that (i) it has the financial ability to bear the
 economic risk of its investment, including a loss of its entire investment,
 and (ii) it is an “accredited investor” as that term is defined under Regulation
 D under the Securities Act, (iii) it has the knowledge and experience of
 investing in instruments similar to the Transaction and is capable of
 evaluating the risks and merits of the Transaction and has, or has had an
 opportunity to request, such information as it deemed necessary to make such
 evaluation; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (C)

 	
 Each party understands that the Transaction has not
 been, and is not intended to be, registered under the Securities Act or under
 the securities laws of certain states and, therefore, cannot be resold,
 pledged, assigned or otherwise disposed of unless an exemption for such
 resale, pledge, assignment or disposition is available. Neither party is
 obliged to register the Transaction or to assist the Offeree in complying
 with any exemption from registration under the Securities Act or state
 securities laws.

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 Non-Public Information. Each party
 represents and warrants that, in effecting a Transaction referenced to a
 security, it will not be aware of any material non-public information or
 non-public price sensitive information with respect to any security related
 to a Transaction that, under applicable securities laws, it would have to
 disclose in advance to a party effecting a purchase or sale with the Offeree
 of such security.

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 Additional Fund Representations

 
	
  

 	
  

 	
  

 
	
  

 	
 (A)

 	
 Sponsor’s Authority: the Fund has the
 legal capacity to cause the Sponsor to act on its behalf as provided for in
 this Agreement. Sponsor is duly authorized to execute and deliver this
 Agreement, and to enter into Transactions, on the Fund’s behalf, and unless
 it has received written notice of termination of such authority, Counterparty
 shall be entitled to rely upon any and all instructions or notices received
 from Investment Adviser with respect to this Agreement or any Transaction,
 and Counterparty shall be under no duty to determine whether the giving of
 any notice or instruction, or the entry into any Transaction (including
 without limitation its nature and its amount), on behalf of the Fund is
 within the authority of Investment Adviser.

 
	
  

 	
  

 	
  

 
	
  

 	
 (B)

 	
 Compliance with Operative Documents,
 Laws and Regulation: the Fund represents, with respect to this Agreement
 and each Transaction, (i) it will be in full compliance with all Operative
 Documents and any rule, law or regulation and (ii) this Agreement and each
 Transaction is and will be
 authorized and permissible transactions and investments thereunder. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (C)

 	
 No
 Material Proposal. No
 proposal has been submitted to the holders of the Fund’s outstanding voting
 securities regarding any proposed change to or modification of (1) the Fund’s
 investment policies or guidelines or any Operative Document regarding the use
 of derivatives, (2) the nature of the Fund’s business or (3) any matter
 requiring the vote of the holders of the Fund’s voting securities, in each
 case which could reasonably be expected to materially adversely affect this
 Agreement or any Transaction. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (D)

 	
 No Regulatory Action: No action has been taken by the SEC and applicable state securities
 regulators to suspend or revoke any applicable registration and to its
 knowledge no investigation or regulatory proceeding has been commenced by the
 SEC or any state securities regulatory authority which is

 

12

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 reasonably
 likely to materially adversely affect the Fund’s ability to perform its
 obligations hereunder and under any Transaction. ]

 
	
  

 	
  

 	
  

 
	
  (e)

 	
 Financial Statements. Section 3(d)
 is hereby amended by adding in the third line thereof after the word
 “respect” and before the period:

 
	
  

 	
  

 	
  

 
	
  

 	
 “or,
 in the case of financial statements, a fair presentation of the financial
 condition of the relevant party”.

 
	
  

 	
  

 	
  

 
	
  (f)

 	
  [Consent to Disclosure. the Fund consents to Counterparty effecting such disclosure as
 necessary or appropriate to enable Counterparty to transfer the Fund’s
 records and information to process and execute the Fund’s instructions, or in
 pursuance of the Fund’s commercial interest, to any of its Affiliates[on the
 same terms as to confidentiality as apply to the Counterparty]. For the
 avoidance of doubt, the Fund’s consent to disclosure includes the right on
 the part of Counterparty to allow access to any such intended recipient of
 the Fund’s information, to the records of Counterparty by any means [subject
 always to such confidentiality obligations.]

 
	
  

 	
  

 	
  

 
	
  (g)

 	
 Transfer. No Party shall assign, transfer, charge or otherwise deal with all
 or any of its rights and/or obligations under this Agreement without the
 prior written consent of the other Parties hereto. Any transfer or assignment
 by a Party of rights and/or obligations under this Agreement shall take
 effect only upon a simultaneous transfer of all other rights and/or
 obligations of such Party under the Platform Documents, unless specifically
 agreed to the contrary by all Parties hereto.

 
	
  

 	
  

 	
  

 
	
  (h)

 	
 Recording of Conversations. Each party to this Agreement acknowledges and agrees to the
 recording of conversations between trading, operations and marketing
 personnel of the parties and their
 Affiliates in connection with this Agreement or any potential Transaction;
 (ii) agrees to give notice to such personnel of it and its Affiliates that
 their calls will be recorded; and (iii) agrees that in any Proceedings, it
 will not object to the introduction of such recordings in evidence on
 grounds that consent was not properly given.

 
	
  

 	
  

 	
  

 
	
 (i)

 	
 2002 Master
 Agreement Protocol. The
 parties agree that the definitions and provisions contained in Annexes 1 to
 13 and Section 6 of the 2002 Master Agreement Protocol published by the
 International Swaps and Derivatives Association, Inc., on 15th July 2003 are
 incorporated into and will supplement and form part of this Agreement.
 References in those definitions and provisions to any “ISDA 2002 Master
 Agreement” or “2002 Master” will be deemed to be references to this
 Agreement.

 
	
  

 	
  

 	
  

 
	
  (j)

 	
 Separate Contracts. Section 1(c) of this Agreement is revised and replaced in its
 entirety by the following:

 
	
  

 	
  

 	
  

 
	
  

 	
 “(c)

 	
 Separate
 Agreements. Solely for the convenience of the parties hereto, in lieu of
 executing an individual Master Agreement between Counterparty and each the
 Fund entity, Counterparty and the Fund entities have determined to execute
 this single Master Agreement on the terms contained herein. Therefore,
 anything in this Master Agreement to the contrary 

 

13

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 notwithstanding,
 all Transactions between Counterparty and any particular the Fund, and all
 Confirmations thereof, shall constitute a single business and contractual
 relationship made in consideration of each other (each such business and
 contractual relationship, an “Entity Agreement”), as though each the
 Fund had executed a separate Master Agreement with Counterparty having the
 same terms of this Master Agreement. Each Entity Agreement is intended to be,
 and shall be treated for all purposes as, separate and apart from all Transactions
 and Confirmations between Counterparty and any other the Fund. Each Entity
 Agreement shall incorporate the terms and provisions of this Master
 Agreement. With respect to each such Entity Agreement:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 all
 references herein to “this Agreement” shall be construed solely as references
 to such Entity Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 all
 references herein to “the Fund,” or to any party, insofar as they apply to
 the Fund, shall be construed solely as references to the applicable the Fund,
 and not as references to any other the Fund entity;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 the
 netting provisions in Section 2(c) shall apply solely to Transactions
 included within such Entity Agreement, and there shall be no netting of
 payments with Transactions that are included in different Entity Agreements;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 except
 to the extent any default or event may constitute an Event of Default or a
 Termination Event by virtue of the definition of “Specified Entity,” no
 default or event by another the Fund and no Event of Default or Termination
 Event with respect to another Entity Agreement shall constitute an Event of
 Default or Termination Event with respect to such separate Entity Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 the
 provisions of Section 6(e) regarding Payments on Early Termination shall be
 applied separately to each Entity Agreement and there shall be no netting of
 amounts payable pursuant thereto with respect to different Entity Agreements;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vi)

 	
 the
 Credit Support Annex attached hereto shall constitute a separate security
 agreement between Counterparty and the applicable the Fund (each such
 agreement, a “Security Agreement”); each such Security Agreement shall
 incorporate and be governed by all the terms and provisions of the Credit
 Support Annex, but shall constitute a separate contract; all references in
 the Credit Support Annex to “the Fund” or to any party, insofar as
 they apply to the Fund, shall be construed solely as references to the
 applicable the Fund, and not as references to any other the Fund; all
 references therein to “this Agreement” shall be construed solely as
 references to the respective Entity Agreement; all references therein to
 “this Annex” shall be construed solely as references to such Security
 Agreement; and the collateral requirements and other provisions of each such
 Security Agreement shall apply solely to Transactions included in the
 applicable Entity Agreement, and no collateral shall be required under any
 such Security Agreement for, nor shall any collateral under any such Security
 Agreement secure, Transactions included in any other Entity Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 (k)

 	
 WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL
 RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF
 OR RELATING TO THIS AGREEMENT, ANY CREDIT SUPPORT DOCUMENT OR ANY TRANSACTION
 CONTEMPLATED HEREBY.

 
	
  

 	
  

 	
  

 	
  

 
	
 [(l)

 	
           Sponsor’s Letter. the Fund acknowledges
 that the letter from the Sponsor (the Sponsor’s Letter”) received under Part
 3 hereof is a material inducement to Counterparty in entering into this Agreement
 

 

14

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (inclusive of any Transaction entered into hereunder),
 that Counterparty shall (in entering into this Agreement and any Transaction
 hereunder) rely on the representations set forth in the Sponsor’s Letter and
 would not enter into this Agreement or any Transaction hereunder if the
 Sponsor’s Letter were not delivered by the Investment Adviser.]

 
	
  

 	
  

 	
  

 	
  

 
	
 (m)

 	
 Additional Covenants Relating to Payments to Sponsor and
 Transactions Executed by Sponsor. In addition to its agreements under
 Section 4, the Fund agrees with Counterparty that, so long as either party
 has or may have any obligations under this Agreement: (i) Any amounts payable
 by Counterparty under this Agreement shall be deemed satisfied when paid by
 Counterparty in accordance with the instructions of the Sponsor and (ii) the Fund shall be bound as principal of any Transaction executed
 by the Sponsor (or any other person representing or purporting to represent
 the Sponsor) as its agent, notwithstanding any lack of authority or power to act
 on the part of the Sponsor or such other person.

 
	
  

 	
  

 	
  

 	
  

 
	
  (n)

 	
 No Plan Assets. Each of the Fund and the Sponsor represents (which
 representations will be deemed to be repeated at all times until the
 termination of this Agreement) that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the
 Fund is not and is not acting on behalf of (A) an “employee benefit plan”
 within the meaning of Section 3(3) of ERISA that is subject to Part 4 of
 Subtitle B of Title I of ERISA, (B) a “plan” within the meaning of Section
 4975(e)(1) of the Tax Code, to which Section 4975 of the Tax Code applies,
 (C) an entity whose underlying assets include “plan assets” subject to Title
 I of ERISA or Section 4975 of the Tax Code by reason of Section 3(42) of
 ERISA, 29 CFR § 2510.3-101 or otherwise, or (D) a “governmental plan” (as
 defined in ERISA or the Tax Code) or another type of plan (or an entity whose
 assets are considered to include the assets of any such governmental or other
 plan) that is subject to any Similar Law; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 Each
 of the Fund and the Sponsor will immediately give written notice to
 Counterparty in the event that either the Sponsor or the Fund is in breach or
 that, with the passing of time, giving of notice or expiry of any applicable
 grace period, will be in breach of any aspect of any of the representations
 in this Part 5(l) or that any of such representations are or will be untrue.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Notwithstanding
 anything to the contrary contained in the Agreement, the Fund agrees to
 indemnify and hold harmless Counterparty and its Affiliates (the “Indemnified
 Parties”) from and against any cost, damage or loss (including without
 limitation any excise taxes, fines, penalties, interest, profits disgorged,
 restitution, and any related attorneys fees and expenses) (“Losses”) incurred
 by the Indemnified Parties as a result of any of the representations in this
 Part 5(n) being or becoming untrue or any breach of ERISA, Section 4975 of
 the Tax Code or Similar Law caused by the Sponsor or the Fund which exposes
 the Indemnified Parties to any Losses. The foregoing sentence will remain in
 full force and effect in the event that this Agreement and/or all
 Transactions hereunder are terminated.

 
	
  

 	
  

 	
  

 	
  

 
	
 (o)

 	
 Sponsor.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)
 the Fund represents (which representations will be deemed repeated at all
 times until the termination of this Agreement) that (A) the Fund has the
 power to execute, deliver and perform each Transaction, and has taken all
 necessary action to authorize such execution, delivery and performance; (B)
 each Transaction does not violate, and is consistent with, the Trust
 Documents and any investment guidelines, objectives, policies, procedures and
 restrictions (including, without limitation, the 1940 Act and the U.S.
 Investment Advisers Act of 1940) applicable to the Fund.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)
 The Sponsor represents (which representations will be deemed repeated at all
 times until the termination of this Agreement) that (A) the Sponsor has full
 discretion, power and authority to execute this Agreement on behalf of the
 Fund, without obtaining any prior consent or approval from the Fund or any
 other person, as the Fund’s agent and attorney-in-fact, (B) the Sponsor acts
 in its own right for the purpose of exercising its discretion, power and
 authority to execute this Agreement on behalf of the 

 

15

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Fund
 and (C) Counterparty is entitled to rely conclusively upon and will incur no
 liability from operating pursuant to any request, instruction, certificate,
 representation or other document furnished to Counterparty, or action taken,
 by any employee or agent of the Sponsor in connection with this Agreement and
 the Transactions thereunder, as though the same had been given or made by the
 Fund, unless and until such time as the Fund delivers written notice to
 Counterparty affirmatively revoking, terminating or modifying such authorization.

 
	
  

 	
  

 	
  

 	
  

 
	
 (p)

 	
 Safe Harbors. Each party to this Agreement acknowledges that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)
 This Agreement, including any Credit Support Document, is a “master netting
 agreement” as defined in the U.S. Bankruptcy Code (the “Code”), and a
 “netting contract” as defined in the netting provisions of the Federal
 Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”), and this
 Agreement, including any Credit Support Document, and each Transaction
 hereunder is of a type set forth in Section 561(a)(1)-(5) of the Code;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)
 Counterparty is a “master netting agreement participant,” a “financial
 institution,” a “financial participant,” a “forward contract merchant” and a
 “swap participant” as defined in the Code, and a “financial institution” as defined
 in the netting provisions of FDICIA;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)
 The remedies provided herein, and in any Credit Support Document, are the
 remedies referred to in Section 561(a), Sections 362(b)(6), (7), (17) and
 (27), and Section 362(o) of the Code, and in Section 11(e)(8)(A) and (C) of
 the Federal Deposit Insurance Act;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iv)
 All transfers of cash, securities or other property under or in connection
 with this Agreement, any Credit Support Document or any Transaction hereunder
 are “margin payments,” “settlement payments” and “transfers” under Sections
 546(e), (f), (g) or (j), and under Section 548(d)(2) of the Code; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (v)
 Each obligation under this Agreement, any Credit Support Document or any
 Transaction hereunder is an obligation to make a “margin payment,”
 “settlement payment” and “payment” within the meaning of Sections 362, 560
 and 561 of the Code.

 
	
  

 	
  

 	
  

 	
  

 
	
  (q)

 	
 Limitation of Liability. The Sponsor and the parties acknowledge and agree
 that, except for the representations and agreements of the Sponsor contained
 in this Agreement, the Sponsor is acting only as agent of the Fund, and not
 as a principal. Notwithstanding anything to the contrary contained in the
 Agreement, Counterparty shall not have recourse to the assets of the Sponsor.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WITH RESPECT TO CLAIMS UNDER THIS
 AGREEMENT, NO PARTY SHALL BE REQUIRED TO PAY OR BE LIABLE FOR EXEMPLARY,
 PUNITIVE, INCIDENTAL, CONSEQUENTIAL, OR INDIRECT DAMAGES (WHETHER OR NOT
 ARISING FROM ITS NEGLIGENCE) TO ANY OTHER PARTY EXCEPT TO THE EXTENT THAT THE
 PAYMENTS REQUIRED TO BE MADE PURSUANT TO THIS AGREEMENT ARE DEEMED TO BE SUCH
 DAMAGES. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 IF AND TO THE EXTENT ANY PAYMENT REQUIRED TO BE MADE
 PURSUANT TO THIS AGREEMENT IS DEEMED TO CONSTITUTE LIQUIDATED DAMAGES, THE
 PARTIES ACKNOWLEDGE AND AGREE THAT SUCH DAMAGES ARE DIFFICULT OR IMPOSSIBLE
 TO DETERMINE AND THAT SUCH PAYMENT IS INTENDED TO BE A REASONABLE
 APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES AND NOT A PENALTY.

 

16

	
  

 	
  

 	
  

 	
  

 
	
 (r) 

 	
 ISDA Definitions. Unless otherwise specified in a Confirmation, this Agreement, each
 Confirmation and each Transaction incorporates, and is subject to and
 governed by the 2000 ISDA Definitions and the 2005 ISDA Commodity Derivatives
 Definitions, all as amended, supplemented, updated, and restated from time to
 time (collectively, the “Definitions”).

 
	
  

 	
  

 	
  

 	
  

 
	
 (s) 

 	
 Inconsistency. In the event of any inconsistency between the provisions of this
 Agreement and the Definitions, this Agreement will prevail. In the event of
 any inconsistency between the provisions of any Confirmation and this Agreement
 or the Definitions, such Confirmation will prevail for the purpose of the
 relevant Transaction.

 
	
  

 	
  

 	
  

 	
  

 
	
 (t) 

 	
 Accounts. If a Confirmation does not state the account to which, or the
 currency in which, payments are to be made, they shall be made in United
 States Dollars to the following accounts:

 

	
  

 	
  

 	
  

 
	
  

 	
 Counterparty

 	
  

 
	
  

 	
 Pay:

 	
  

 
	
  

 	
 For the Account of:

 	
  

 
	
  

 	
 Account No/CHIPS UID:

 	
  

 
	
  

 	
 Fed. ABA No.: 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 The Fund

 	
  

 
	
  

 	
 Pay:

 	
 _______________________

 
	
  

 	
 For the Account of:

 	
 _______________________

 
	
  

 	
 Account No/CHIPS UID:

 	
 _______________________

 
	
  

 	
 Fed. ABA No.:

 	
 _______________________

 
	
  

 	
  

 	
  

 
	
 (u) 

 	
 Limitation of Rate. Notwithstanding any provision to the contrary
 contained in this Agreement, in no event shall the Default Rate, Non-default
 Rate, or Termination Rate exceed the Highest Lawful Rate. For purposes
 hereof, “Highest Lawful Rate” shall mean, with respect to each party, the
 maximum non-usurious interest rate, if any, that at any time or from time to
 time may be contracted for, taken, reserved, charged, or received on the
 subject indebtedness under the law applicable to such party.

 

17

	
  

 	
  

 
	
  (v)

 	
 Confidentiality. Any information made available by one party or its Credit Support
 Provider to the other party or its Credit Support Provider (if any) with
 respect to this Agreement or any Transaction hereunder is confidential and
 shall not be discussed with or disclosed to any third party, except for such
 information (i) as may become generally available to the public other than as
 a result of a violation of this Agreement, (ii) as may be required or
 appropriate in response to any summons, subpoena, or otherwise in connection
 with any litigation or to comply with any applicable law, order, regulation,
 or ruling, (iii) as may be obtained from a non-confidential source that
 disclosed such information in a manner that did not violate its obligations
 to the other party or its Credit Support Provider (if any) in making such
 disclosure, (iv) as may be furnished to a regulator with jurisdiction over
 the party, or (v) as may be furnished to any person or entity (including,
 without limitation, that party’s auditors, attorneys, advisors, or financial
 institutions) with which the party has a written agreement or which are
 otherwise required to keep the information that is disclosed in confidence.
 Nothing herein shall restrict a party from providing data or information to
 pricing services or platforms that a party may participate in, provided that
 the identity of the party is not produced.

 
	
  

 	
  

 
	
  (w)

 	
 Notwithstanding anything to the contrary in this Agreement,
 the parties acknowledge and agree that this Agreement is entered into solely
 for the purpose of executing, delivering, engaging in and performing
 Commodity Contracts (as defined in the Facility Agreement).

 
	
  

 	
  

 
	
  (x)

 	
 Severability. If any one or more of the provisions contained in this Agreement
 should be held invalid, illegal, or unenforceable in any respect, the
 validity, legality and enforceability of the remaining provisions contained
 herein shall not in any way be affected or impaired thereby. The parties
 shall endeavor in good faith negotiations, to replace the invalid, illegal or
 unenforceable provisions with valid provisions the economic effect of which
 comes as close as possible to that of the invalid, illegal or unenforceable
 provisions.

 
	
  

 	
  

 
	
  (y)

 	
 Method of Notice. Section 12(a)(ii) of the
 Master Agreement is deleted in its entirety.

 

IN WITNESS WHEREOF the parties have executed this Schedule on the respective dates
specified below with effect from the date specified on the first page of this
document.

18

	
  
 	
  
 	
  

 	
  

 
	
 [Counterparty] 
 	
  
 	
 EACH FUND
 REGISTERED UNDER THE

 SECURITIES ACT OF 1933 LISTED ON

 EXHIBIT A ATTACHED HERETO,
severally
 and not jointly
 
	
  
 	
  
 	
 By:
 Sponsor

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
 By:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Name:

 	
  

 	
 Name:

 
	
 Title :

 	
  

 	
 Title:

 
	
 Date:

 	
  

 	
 Date:

 

19

EXHIBIT A

TO

ISDA SCHEDULE TO THE MASTER AGREEMENT

DATED AS OF _______________

Each of the following is a Fund for purposes of this
Agreement:

Short
Funds

	
  

 
	
 ETFS Short Oil

 
	
 ETFS
 Short Natural Gas

 
	
 ETFS
 Short Copper

 
	
 ETFS
 Short Wheat

 
	
 ETFS
 Short Gold

 
	
  

 
	
 Long Funds:

 
	
  

 
	
 ETFS
 Oil 

 
	
 ETFS
 Natural Gas

 
	
 ETFS
 Copper

 
	
 ETFS
 Wheat

 
	
 ETFS
 Composite Agriculture

 
	
 ETFS
 Composite Industrial Metals

 
	
 ETFS
 Composite Energy

 
	
 ETFS
 All Commodities

 
	
  

 
	
 Leveraged Funds

 
	
  

 
	
 ETFS
 Leveraged Oil 

 
	
 ETFS
 Leveraged Natural Gas 

 
	
 ETFS
 Leveraged Copper 

 
	
 ETFS
 Leveraged Wheat 

 
	
 ETFS
 Leveraged Gold

 

20

EXHIBIT B

 [Sponsor’s Letterhead]

[date]

[Counterparty]

Ladies and Gentlemen:

In
connection with over-the-counter transactions to be entered into between EACH FUND
THE SHARES OF WHICH ARE REGISTERED UNDER THE SECURITIES ACT OF 1933 (the
“Securities Act”) LISTED ON EXHIBIT A TO THE SCHEDULE TO THE ISDA MASTER
AGREEMENT DATED AS OF _________, as amended from time to time (the “Master
Agreement”), severally and not jointly (the “Client”) acting by and through ETF
SECURITIES USA LLC not
in its individual capacity but as sponsor (“Sponsor”) and
[     ] (“[Counterparty]”)
which may include pre-paid, cash settled commodities purchase/sale contracts
and other similar transactions (including any option with respect to any of
these transactions and combinations of the foregoing) (collectively,
“Derivative Transactions”) we hereby acknowledge, represent and warrant
continuously to, and covenant and agree with, [Counterparty] that:

(a)
We are a _____________ [registered under the ______________], as amended, and
we are in compliance with the requirements of such ___. We are duly organized
and validly existing in good standing under the laws of the jurisdiction of our
organization.

(b)
Pursuant to a management or advisory agreement with the Client, we have been
duly authorized by the Client to take all requisite action on its behalf to
enter into Derivative Transactions with [Counterparty] at our discretion and to
execute confirmations of Derivative Transactions on its behalf. You may rely on
our assurance that, on the basis of such investigation as we have deemed
appropriate, we are satisfied that the person or persons who signed our
management or advisory agreement were themselves properly authorized by the
Client. In lieu of furnishing you with the specific evidence of our authority
to enter into Derivative
Transactions, we request that you rely upon this letter as conclusive evidence
of such authority with respect to any Derivative Transaction.

(c)
The Client is an “eligible contract participant” as that term is defined in
Section 1(a)(12) of the Commodity Exchange Act, as amended. The Client is aware
that it is exposed to losses with respect to Derivative Transactions which may
be unlimited and which, with respect to Derivative Transactions that are
options, could include the loss of its entire investment in such option.
Accordingly, each time we enter into a Derivative Transaction on behalf of the
Client, the Client will have the financial ability to bear the economic risk of
such Derivative Transaction, and adequate means to provide for its current
needs and personal or other contingencies. We have knowledge and experience in
financial and business matters and are capable of evaluating the merits and
risks of Derivative Transactions on behalf of the Client, and prior to entering
into a Derivative Transaction on behalf of the Client, we shall determine that
such Derivative Transaction is suitable for the Client.

(d)
We acknowledge that Derivative Transactions entered into between [Counterparty]
and the Client will not be registered under the Securities Act, or under the
securities laws of any state; that no federal or state agency has passed upon
any prospective Derivative Transaction or made any finding or determination as
to the fairness of any Derivative Transactions; and that the offer of and entry
into Derivative Transactions is intended to be exempt from registration under
the Securities Act. We assure you that with respect to any Derivative
Transaction entered into between [Counterparty] and the Client, or any portion
thereof, that may constitute a “security” under the Securities Act (a
“Derivative Security”) the Client will acquire its interest in Derivative
Securities for its own account for investment and not with a view to, or in
connection with, any distribution of such interests, and that neither we nor
the Client will sell or otherwise transfer a Derivative Security without
registration under the Securities Act or an exemption therefrom. The Client is
an “accredited investor” as that term is defined in Rule 501 under the
Securities Act.

21

(e)
We represent (which representations will be deemed to be repeated at all times
until the termination of the Master Agreement) that the Client is not and is
not acting on behalf of (i) an “employee benefit plan” within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), that is subject to Part 4 of Subtitle B of Title I of ERISA, (ii) a
“plan” within the meaning of Section 4975(e)(1) of the Internal Revenue Code of
1986, as amended (the “Tax Code), to which Section 4975 of the Tax Code
applies, (iii) an entity whose underlying assets include “plan assets” subject
to Title I of ERISA or Section 4975 of the Tax Code by reason of Section 3(42)
of ERISA, 29 CFR § 2510.3-101 or otherwise, or (iv) a “governmental plan” (as
defined in ERISA or the Tax Code) or another type of plan (or an entity whose
assets are considered to include the assets of any such governmental or other
plan) that is subject to any federal, state, local or non-U.S. law, rule or
restriction substantively similar or of similar effect to Section 406 of ERISA
or Section 4975 of the Tax Code (“Similar Law”). We will provide notice to
[Counterparty] in the event that we are aware that we or the Client are in
breach of any aspect of this representation or are aware that with the passing
of time, giving of notice or expiry of any applicable grace period we or the
Client will breach this representation. We agree to indemnify and hold harmless
[Counterparty] and its affiliates from and against any cost, damage or loss
(including without limitation any excise taxes, fines, penalties, interest,
profits disgorged, restitution, and any related attorneys fees and expenses)
(“Losses”) incurred by [Counterparty] or any its affiliates as a result of any
of the representations in this paragraph being or becoming untrue or any breach
of ERISA, Section 4975 of the Tax Code or Similar Law caused by the us or the
Client which exposes [Counterparty] or any its affiliates to any Losses. The
foregoing sentence will remain in full force and effect in the event that the
Master Agreement and/or all Transactions hereunder are terminated.

(f)
In the event [Counterparty] or any of its affiliates becomes involved in any
capacity in any action, proceeding or investigation arising out of or based
upon any false representation or warranty or breach or failure by us to comply
with any covenant or agreement made by us herein, or in any other document
furnished to [Counterparty] by us in connection with Derivative Transactions
with the Client, or any breach of ERISA, Section 4975 of the Tax Code or
Similar Law caused by us or the Client, or in the event the Client brings any
action or claim against [Counterparty] alleging a breach of any of the
foregoing representations, warranties, covenants or agreements, including,
without limitation, an action or claim that a Derivative Transaction between
[Counterparty] and the Client was unauthorized or unsuitable for the Client, we
will indemnify [Counterparty] against any losses, claims, damages, liabilities,
or costs (including, without limitation attorneys’ fees and costs) to which it
may become subject or may incur in connection with any such matter. Our reimbursement
and indemnity obligations under this paragraph shall be in addition to any
liability which we may otherwise have. This paragraph will remain in full force
and effect in the event that the Master Agreement and/or all Transactions
hereunder are terminated.

(g)
We will notify you immediately in the event that our business relationship with
the Client is terminated or our authority to act as agent for the Client with
respect to the obligations arising under (i) any Derivative Transaction which
we may enter into with [Counterparty] on behalf of the Client, or (ii) the
Master Agreement is terminated or modified. We understand and acknowledge that
[Counterparty] will rely on the foregoing representations, warranties,
covenants and agreements when offering to enter into Derivative Transactions
with our Client. We agree to notify [Counterparty] immediately at the address
above, attention Legal Affairs, if at any time we discover or learn of facts at
variance with the foregoing representations and warranties.

	
  

 	
  

 
	
 Very truly yours,

 	
  

 
	
  

 	
  

 
	
  

 	
 ETF SECURITIES USA LLC

 
	
  

 	
 By: 

 
	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Title: 

 
	
  

 	
  

 
	
  

 	

 

 

22

ISDA

CREDIT SUPPORT ANNEX

to the Schedule

to the Master Agreement

dated as of__________, 2011

between

	
 

	
 

	
 

	
_____________ 

 (“Party
A”)

	
and

	
EACH
FUND REGISTERED

UNDER THE SECURITIES

ACT OF 1933 LISTED ON

EXHIBIT A OF THE

SCHEDULE

(“Party B”)

Paragraph 13. Elections and Variables

	
 

	
 

	
 

	
 

	
(a)

	
Security Interest for “Obligations.”

	
 

	
 

	
 

	
(i)
The term
“Obligations”
as used in this Annex includes the following additional obligations:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
With
respect to Party A: None

	
 

	
 

	
 

	
With
respect to Party B: None

	
 

	
 

	
 

	
(ii)

	
The
terms of :Paragraph 2 will be deleted and the following substituted therefor:

	
 

	
 

	
 

	
 

	
 

	
“Party
A, as the Pledgor, hereby pledges to Party B, as the Secured Party, as
security for Party A’s Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set off
against all Collateral (as defined in the Control Agreement) and any and all
other Posted Collateral credited to the Account (as defined in the Control
Agreement) or otherwise Transferred to or received by the Secured Party for
crediting to the Account. Upon the Transfer by the Secured Party to the
Pledgor of Posted Collateral, the security interest and lien granted
hereunder on that Posted Collateral will be released immediately and, to the
extent possible, without any further action by either party.”

	
 

	
 

	
 

	
 

	
 

	
“Control Agreement”
has the meaning given in Paragraph 13(m)(vii) below. Words and expressions
defined in the Control Agreement shall where the context requires or admits
have the same meanings in this Agreement.

	
 

	
 

	
 

	
 

	
 

	
All
deliveries or payments of Posted Collateral to the Secured Party hereunder
shall be made by delivery or payment into the Account.

23

	
 

	
 

	
 

	
 

	
(b)

	
Credit Support Obligations.

	
 

	
 

	
 

	
 

	
(i)

	
Delivery Amount, Return Amount and Credit
Support Amount.

	
 

	
 

	
 

	
 

	
 

	
(A)

	
 “Delivery Amount” has the meaning specified in Paragraph 3(a);
provided, however, that no Delivery Amount will be due from Party B.

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
 “Return Amount” has the meaning specified in Paragraph 3(b). 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
 “Credit Support Amount” has the meaning specified in Paragraph 3. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
The
following changes will apply:

	
 

	
 

	
 

	
(1)
in Paragraph 3(a) the words “,upon a demand made by the Secured Party on or
promptly following a Valuation Date,” will be deleted; and

	
 

	
 

	
 

	
(2)
in Paragraph 3(b) the words “upon a demand made by the Pledgor on or promptly
following a Valuation Date,” will be deleted and the words “then the Secured
Party will Transfer” shall be replaced by the words “then the Pledgor shall
have the right, under the Control Agreement, to instruct the Collateral Agent
to Transfer”.

24

	
 

	
 

	
 

	
 

	
(ii)

	
Eligible Collateral. The following items will qualify as “Eligible Collateral”
for the party specified:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Eligible Collateral

	
 

	
Party A

	
 

	
Party B

	
 

	
Valuation
Percentage

	
 

	

	
 

	

	
 

	

	
 

	

	
(A)

	
Cash in U.S. Dollars; provided that Cash may be
invested in AAA-rated government, USD Treasury, or AAA-rated prime money
market funds that are made available by the Collateral Manager from time to
time

	
 

	
X

	
 

	
X

	
 

	
100%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
US Treasury Securities (other than (i) interest-only
securities and principal only securities and (ii) inflation linked
securities) issued by the U.S. Treasury Department having a remaining
maturity of not more than one year

	
 

	
X

	
 

	
X

	
 

	
100%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
US Treasury Securities (other than (i) interest-only
securities and principal only securities and (ii) inflation linked
securities) issued by the U.S. Treasury Department having a remaining
maturity of more than one year but not more than 5 years

	
 

	
X

	
 

	
X

	
 

	
100%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
US Treasury Securities (other than (i) interest-only
securities and principal only securities and (ii) inflation linked
securities) issued by the U.S. Treasury Department having a remaining
maturity of more than 5 years but not more than 10 years

	
 

	
X

	
 

	
X

	
 

	
99%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(E)

	
US Treasury Securities (other than (i) interest-only
securities and principal only securities and (ii) inflation linked
securities) issued by the U.S. Treasury Department having a remaining
maturity of more than ten years

	
 

	
X

	
 

	
X

	
 

	
98%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(F)

	
Fully modified pass-through certificates (“GNMA
Certificates”) in book-entry form which are guaranteed by the Government 

	
 

	
X

	
 

	
 

	
 

	
98%

25

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
National Mortgage Association;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(G)

	
AAA-rated securities backed by student loans under
Sallie Mae marketing Association (“SLMA”)

	
 

	
X

	
 

	
 

	
 

	
95%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(H)

	
Supranational bonds issued by the International Bank
for Reconstruction and Development, the European Investment Bank, the Council
of Europe, the Asian Development Bank or the Inter-American Development Bank,
or the Agency for International Development, provided that such
securities are rated AAA by Standard & Poors or Aaa by Moody’s Investors
Service, and the remaining maturity is:

	
 

	
X

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i) not more than five years

	
 

	
 

	
 

	
 

	
 

	
97%

	
 

	
(ii) more than five years and not more than ten years

	
 

	
 

	
 

	
 

	
 

	
96%

	
 

	
(iii) more than ten years

	
 

	
 

	
 

	
 

	
 

	
95%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(I)

	
(i) Corporate debt securities that are rated at least
BBB- by Standard & Poors or Baa3 by Moody’s Investors Service at the
issue level, in the following markets;

Canada, UK, USA, Italy, France, Germany, Japan

	
 

	
X

	
 

	
 

	
 

	
95%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii) Convertible bonds that are rated at least BBB- by
Standard & Poors or Baa3 by Moody’s Investors Service at the issue level,
and which has an underlying equity that is a constituent of one of the
following major indices;

	
 

	
 

	
 

	
 

	
 

	
95%

	
 

	
Country

	
Major Index

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Canada

	
S&P/TSX 60

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
UK

	
FTSE 100

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
USA

	
S&P 500

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Italy

	
FTSE MIB

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
France

	
CAC 40

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Germany

	
DAX 30

	
 

	
 

	
 

	
 

	
 

	
 

26

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Japan

	
NIKKEE 225

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(J)

	
(i) Common equities that are constituents of one of the
G7 stock indices set forth below:

	
 

	
X

	
 

	
 

	
 

	
95%

	
 

	
Country

	
Major Index

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Canada

	
S&P/TSX 60

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
UK

	
FTSE 100

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
USA

	
S&P 500

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Italy

	
FTSE MIB

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
France

	
CAC 40

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Germany

	
DAX 30

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Japan

	
NIKKEE 225

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii) preferred equities of issuers of common shares
identified in clause (i) above

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii) American Depositary Receipts listed on the NYSE
Composite or the AMEX Composite

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv) exchange-traded funds identified in Schedule I.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Other Eligible Support. The following items will qualify as “Other Eligible Support”
for the party specified: None

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Thresholds.

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
 “Independent Amount” means with respect to Party A: USD 0

	
 

	
 

	
 

	
 “Independent Amount” means with respect to Party B: USD 0

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
 “Threshold” means, with respect to Party A: USD 0. 

	
 

	
 

	
 

	
 “Threshold” means, with respect to Party B: Infinity.

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
 “Minimum Transfer Amount” means, with respect to Party A: USD 100,000.

	
 

	
 

	
 

	
 “Minimum Transfer Amount” means, with respect to Party B: USD 100,000. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
Rounding. The Delivery Amount and the Return Amount will
be rounded up and down to the nearest integral multiple of USD 10,000,
respectively. 

	
 

	
 

	
 

	
 

	
(c)

	
Valuation and Timing.

	
 

	
 

	
 

	
 

	
 

	
(i)

	
 “Valuation Agent” means in respect of “Value” the Collateral
Manager and in respect of “Exposure” the Pledgor, calculated as described in [the
Calculation Agency Agreement].

	
 

	
 

	
 

	
 

	
 

	
All
calculations of Value and Exposure for purposes of Paragraph 3 will be made
by the 

27

	
 

	
 

	
 

	
 

	
 

	
applicable
Valuation Agent (and in the case of Exposure, confirmed by the Secured Party)
as of the Valuation Time. The Pledgor acting in its capacity as Valuation
Agent with respect to Exposure will notify the Secured Party and the
Collateral Manager of its calculations of Exposure not later than 8:00 a.m.,
New York time, on the applicable Valuation Date and the Secured Party will
confirm or reject such calculations of Exposure (or confirm that the Secured
Party has not received notice of the calculation of Exposure from the
Pledgor) by notice to the Pledgor and the Collateral Manager not later than
9:00 a.m., New York time, on the applicable Valuation Date (it being
understood and agreed that: (i) if on any Local Business Day (x) the Secured
Party fails to confirm the Pledgor’s calculation of Exposure (other than
because the Secured Party has rejected such calculation or because the
Pledgor has failed to provide such calculation) in accordance with the
foregoing and the provisions of the Control Agreement or (y) the Pledgor
fails to provide its calculation of Exposure in accordance with the foregoing
and the provisions of the Control Agreement, then “Exposure” for such date
shall be the Exposure in effect as of the Valuation Time and such calculation
of Exposure shall be applied for purposes of this Agreement and the Control
Agreement (until otherwise determined in accordance with the provisions of
this Agreement and the Control Agreement), 

	
 

	
 

	
 

	
 

	
(ii)

	
if
on any Local Business Day the Secured Party rejects the Pledgor’s calculation
of Exposure, “Exposure” for such date shall be determined in accordance with
the provisions of Paragraph 5, and 

	
 

	
 

	
 

	
 

	
(iii)

	
the
Collateral Manager is required to notify the Secured Party and the Pledgor of
its calculations of Value of the Posted Collateral not later than 9:00 a.m.,
New York time, on each Valuation Date pursuant to the Control Agreement).

	
 

	
 

	
 

	
 

	
(ii)

	
 “Valuation Date” means each Local Business Day.

	
 

	
 

	
 

	
 

	
(iii)

	
 “Valuation Time” means the close of business on the Local
Business Day immediately preceding the Valuation Date or date of calculation,
as applicable; provided that the calculations of Value and Exposure will
be made as of approximately the same time on the same day.

	
 

	
 

	
 

	
 

	
(iv)

	
 “Notification Time” means 10:00 a.m., New York time, on a Local
Business Day.

	
 

	
 

	
 

	
 

	
(v)

	
 “Transfer Timing” The terms of Paragraph 4(b) are deleted and the
following substituted therefor:

	
 

	
 

	
 

	
 

	
 

	
“Subject
to Paragraphs 4(a) and 5, and unless otherwise specified, in the case of (i)
a Transfer obligation of the Pledgor under Paragraph 3(a) or (ii) or an
entitlement of the Pledgor to direct the Collateral Manager to Transfer
Posted Collateral from the Account under Section 3(b), if on any Local
Business Day a Margin Call under Clause 2.4(b) Schedule 1 to the Control
Agreement or an instruction to redeliver Collateral under Clause 2.4(c) of
Schedule 1 to the Control Agreement results in a Delivery Amount or Return
Amount being due, the relevant Transfer of Eligible Collateral or Posted
Collateral to or from the Account will be made not later than the close of
business (New York time) on such Local Business Day or (ii) if and to the
extent that any of the events described in any of clauses (I), (II), (III)
and (IV) of Paragraph 5 occur on such Business Day, then the 

28

	
 

	
 

	
 

	
 

	
 

	
 

	
relevant
Transfer of Eligible Collateral or Posted Collateral to or from the Account
will be made not later than the close of business (New York time) on the
following Business Day”

	
 

	
 

	
 

	
(e)

	
Substitution.

	
 

	
 

	
 

	
(i)

	
Substitution Date. Paragraph 4(d)(ii) is deleted and the following
substituted therefor:

	
 

	
 

	
 

	
 

	
 

	
“(ii)
subject to Paragraph 4(a), the Pledgor shall be entitled to the return of
items of Posted Credit Support specified by the Pledgor in its notice not
later than the Local Business Day following the date on which the Secured
Party receives the Substitute Credit Support (the “Substitution Date”) so
long as Pledgor gives such notice by [2:00 p.m. New York time (the
“Substitution Notification Time”) on the day preceding the Substitution
Date]. If such demand is made after the Substitution Notification Time, then
the Substitution Date shall be the second Local Business Day following
Secured Party’s receipt of such notice. Notwithstanding the foregoing, the
Secured Party will only be obligated to Transfer Posted Credit Support with a
Value as of the date of Transfer of that Posted Credit Support equal to the
Value as of that date of the Substitute Credit Support, as calculated by the
Valuation Agent.”

	
 

	
 

	
 

	
 

	
(ii)

	
Consent. Not Applicable. 

	
 

	
 

	
 

	
(f)

	
Dispute Resolution.

	
 

	
 

	
 

	
 

	
(i)

	
Paragraph
5 is deleted and the following substituted therefor:

	
 

	
 

	
 

	
 

	
 

	
 

	
“If
(I) on any Local Business Day, the Exposure reported by the Pledgor is not
confirmed by the Secured Party because of the Secured Party’s rejection of
the Pledgor’s reported amount, (II) the Pledgor disputes the Collateral
Manager’s determination as Valuation Agent of the Value of any Transfer to or
from the Account of Eligible Collateral or Posted Collateral on any Local
Business Day, (III) the Pledgor, in its capacity as Valuation Agent, fails on
any Local Business Day to comply with its obligations hereunder and under the
Control Agreement to notify the Collateral Manager and the Secured Party of
the Exposure when due or (IV) the Collateral Manager in its capacity as
Valuation Agent fails on any Local Business Day to comply with its
obligations to notify the Secured Party and the Pledgor of the aggregate
Value of the Posted Collateral when due then:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
in
the case only of (I) above, a dispute shall automatically be deemed to have
arisen for resolution in accordance with the remaining provisions of this
Paragraph 5;

	
 

	
 

	
(2)

	
in
the case only of (II) above, the Pledgor will notify the Secured Party and
the Collateral Manager not later than 11.00 a.m. (New York time) on such
Local Business Day;

	
 

	
 

	
(3)

	
(x)
in the case only of (I) above but subject to Paragraph 4(a), an amount equal
to the Delivery Amount or Return Amount, as applicable, based on the Exposure
in effect as of the immediately preceding Local Business Day will be
Transferred to or from the Account (as applicable) not later than the close
of business in New York on such Business Day and (y) in the case only of (II)
above but subject to Paragraph 4(a), any undisputed amount will be
Transferred to or from the Account (as applicable) not later than the close
of business in New York on such Local 

29

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Business
Day;

	
 

	
 

	
(4)

	
in
the case only of (I) above, the parties acting as co-Valuation Agents will
attempt to resolve the dispute and in the case only of (II) above, the
Pledgor will work with the Collateral Manager to resolve the dispute in
accordance with the provisions of the Control Agreement; and

	
 

	
 

	
(5)

	
if
(x) in the case of (I) above, the parties fail to resolve the dispute by
12:00 noon, New York time, on the Local Business Day the report containing
the disputed Exposure amount was delivered, or (y) an event described in
clause (III) or (IV) occurs, then:

	
 

	
 

	
 

	
(i)

	
In
the case of a dispute involving a Delivery Amount or Return Amount the
Substitute Valuation Agent will (a) in the case of a failure to calculate a
Value or Exposure, calculate the Exposure or Value (as applicable) as of the
Recalculation Date, or (b) in the case of a disputed calculation of Exposure,
the Substitute Valuation Agent appointed by the parties shall recalculate the
Exposure as of the Recalculation Date in both cases by:

	
 

	
 

	
 

	
 

	
(A)

	
utilizing
any calculations of Exposure that the parties have agreed are not in dispute;
and

	
 

	
 

	
 

	
 

	
(B)

	
calculating
the Exposure in dispute; provided that if the Substitute Valuation Agent is
unable after the application of commercially reasonable efforts to calculate
the Exposure then the Pledgor’s original calculations in its capacity as
Valuation Agent will be used; and

	
 

	
 

	
 

	
 

	
(C)

	
utilizing
the procedures specified in Paragraph 12 for calculating the Value, if
disputed, of Posted Collateral.

	
 

	
 

	
 

	
(ii)

	
[reserved].

	
 

	
 

	
 

	
(iii)

	
In
the case of the occurrence of an event described in clause (III) or (IV), the
Substitute Valuation Agent appointed by the parties shall calculate the
Exposure and the Value of Posted Collateral as of the Recalculation Date and
any Delivery Amount or Return Amount arising as a consequence thereof.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Following
a recalculation pursuant to this Paragraph, the Substitute Valuation Agent
will notify the Secured Party and the Pledgor (and the Secured Party and the
Pledgor will in turn notify the Collateral Manager) not later than 2 p.m. New
York time on the Local Business Day on which the notice of the dispute is
given under this Paragraph 5 or an event described in clause (I), (III) or
(IV) occurs. The Pledgor shall, following that notice by the Substitute
Valuation Agent or a resolution pursuant to (5) above and subject to
Paragraphs 4(a) and 4(b), make the appropriate Transfer to the Account or be
entitled to direct the Collateral Manager to make the appropriate Transfer
from the Account, as applicable. Notwithstanding anything herein to the
contrary, in any circumstance above in which a Substitute Valuation Agent is
intended to be appointed, the Secured Party and the Pledgor may, by mutual
agreement in writing, agree to not appoint a Substitute Valuation Agent and
attempt to resolve any dispute between themselves.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Where
this Paragraph 5 provides for the participation of a Substitute Valuation
Agent, the Pledgor and Secured Party will (to the extent they do not agree
otherwise pursuant to this Paragraph 5) appoint a leading independent
market-maker in the relevant securities or obligations that is not affiliated
with either party or the Collateral Manager to act as 

30

	
 

	
 

	
 

	
 

	
 

	
Valuation
Agent (the “Substitute Valuation Agent”). If the parties are unable to
agree on a Substitute Valuation Agent by 12:30 p.m. (New York time) on the
date on which the original calculation or determination was scheduled to be
made, and the parties have not decided to forego a Substitution Valuation
Agent in accordance with Paragraph 5, each party will appoint a leading
independent market-maker in the relevant securities or obligations that is
not affiliated with either party or the Collateral Manager, and such two
market-makers jointly will appoint a third such market-maker by close of
business on such date (such third market-maker, the “Substitute Valuation
Agent”). The Substitute Valuation Agent will make such calculation or
determination (acting as expert and not as arbitrator), whose calculation or
determination will be binding on the parties and conclusive absent manifest
error. For purposes of this definition, a market maker shall not be
considered not independent solely because it is an Authorized Participant (as
defined in the Facility Agreement) or have a similar role in relation to any
other securities issued by a member of the same group as the Secured Party.”

	
 

	
 

	
 

	
 

	
(ii)

	
Value. For the purpose of Paragraph 5, the Value of
Posted Credit Support of the type described in Paragraph 13(b)(ii)(B), (C) or
(D) (referred to herein as “Government Obligations”) will equal the Valuation
Percentage multiplied by the sum of (A) either (1) the mean of the high bid
and low asked prices quoted on such date by any principal market maker for
such Government Obligations, which market maker shall be selected by the
Disputing Party in good faith and in a commercially reasonable manner, or (2)
if no quotations are available from a principal market maker for such date,
the mean of such high bid and low asked prices as of the day next preceding
such date, on which such quotations were available, and (B) accrued interest
on such Government Obligations (except to the extent included in the
applicable price referred to in clause (A) above).

	
 

	
 

	
 

	
 

	
(iii)

	
Alternative. The provisions of Paragraph 5 will apply.

	
 

	
 

	
 

	
(g)

	
Holding and Using Posted Collateral.

	
 

	
 

	
 

	
 

	
(i)

	
Eligibility to Hold Posted Collateral;
Collateral Manager; Control Agreement.

	
 

	
 

	
 

	
 

	
 

	
(A) The parties hereto
acknowledge and agree that Party A, Party B and the Collateral Manager have entered
into the Control Agreement (as it may be amended from time to time) under
which terms the Collateral Manager holds Posted Collateral in one or more
accounts (each, a “Collateral Account”) maintained in the United States of
America in the name of Party A in a manner that is consistent with the terms
of this Annex.

	
 

	
 

	
 

	
 

	
 

	
(B) Party A and Party B
may replace the Collateral Manager upon (X) their mutual agreement or (Y) the
failure of the Collateral Manager to maintain a long term debt or deposit
rating of at least “A3” from Moody’s and “A-” from S&P.

	
 

	
 

	
 

	
 

	
 

	
(C) In the event of any
conflict between the terms of this Annex and the Control Agreement, the terms
of this Annex shall control with respect to Party A and Party B. Initially,
and subject to further amendment of this Annex or the Control Agreement by
the parties hereto, the Collateral Manager is as set forth in the Control
Agreement.

	
 

	
 

	
 

	
 

	
(ii)

	
Use of Posted Collateral. The provisions of Paragraph 6(c) will not apply
to Party A and 

31

	
 

	
 

	
 

	
 

	
 

	
will
not apply
to Party B.

	
 

	
 

	
 

	
(h)

	
Distributions and Interest Amount.

	
 

	
 

	
 

	
 

	
The
Interest Amount shall be paid in accordance with the provisions of the
Control Agreement.

	
 

	
 

	
 

	
(i)

	
Additional Representation(s). None.

	
 

	
 

	
 

	
(j)

	
Other Eligible Support and Other Posted
Support.

	
 

	
 

	
 

	
 

	
(i)

	
 “Value” shall have no meaning with respect to Other
Eligible Support.

	
 

	
(ii)

	
 “Transfer” shall have no meaning with respect to Other
Eligible Support.

	
 

	
 

	
 

	
(k)

	
Demands and Notices. Any demand, specification or notice under this
Annex (each, a “Notice”), other than a Notice pursuant to Paragraph 4(d), may
be delivered orally, including by telephone. If such Notice is delivered
orally, such oral Notice shall be confirmed promptly in writing (a “Notice
Confirmation”) by tested telex, facsimile or actual delivery. Failure to
provide that Notice Confirmation will not affect the validity of that oral
Notice. All Notices shall be delivered to the following addresses:

	
 

	
 

	
 

	
 

	
with
respect to Party A:

	
 

	
 

	
 

	
Attention:

	
 

	
Telephone:

	
 

	
Email:

	
 

	
 

	
 

	
with
respect to Party B: 

	
 

	
 

	
 

	
c/o
ETF Securities (US) LLC

	
 

	
48
Wall Street, 11th Floor

	
 

	
New
York, NY 10005

	
 

	
Telephone:
(212) 918-4954

	
 

	
 

	
(l)

	
Addresses for Transfers. Addresses for Transfers of Collateral for each
party shall be supplied on or before the date of initial Transfer hereunder. 

	
 

	
 

	
(m)

	
Other Provisions.

	
 

	
 

	
 

	
 (i) UCC. This Credit Support Annex is a Security Agreement
under the New York UCC.

	
 

	
 

	
 

	
 (ii) Collateral Asset Definitions. The definitions and provisions contained in
the Collateral Asset Definitions First Edition – 2003 (the “Collateral Asset Definitions”),
as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are
incorporated into this Annex. In the event of any inconsistency between any
of the following, the first listed shall prevail: (i) this Annex,
(ii) the Agreement and (iii) the Collateral Asset Definitions.

32

	
 

	
 

	
 

	
 

	
(iii)
Multiple
Annexes. This Annex has been signed by multiple parties; namely
Party A, on the one hand, and each Party B, on the other. The parties have
signed one document for administrative convenience and to avoid a
multiplicity of documents. Notwithstanding any other provision of this Annex,
and as further set forth in Part 5(h) of the Master Agreement, the parties
expressly intend that this document will function and be construed as if
Party A had signed a separate Annex with each Party B individually. Except as
may be specifically agreed in writing, each Party B shall be liable only for
its own obligations and no Party B shall be a guarantor of or jointly liable
for the obligations of another Party B.

	
 

	
 

	
 

	
 

	
Upon
the accession of a new Fund in accordance with the Facility Agreement dated
__________, 2011 between Party A and Party B, Exhibit A of the Master
Agreement shall be deemed to be amended to include such new Fund with the
effect that such new Fund shall become an additional Party B under the Master
Agreement and this Annex as if Party A had signed a separate bilateral Master
Agreement and Annex with such new Fund individually. Upon the retirement of a
Fund in accordance with the Facility Agreement, Exhibit A to the Master
Agreement shall be deemed to be amended to delete such Fund with the effect
that the Master Agreement and Annex entered into between Party A and such
Fund be terminated with effect from the date of such retirement.

	
 

	
 

	
 

	
 

	
 (iv) Single Secured Party and Single Pledgor. Party A and
Party B agree that, notwithstanding anything to the contrary in this Annex,
(including, without limitation, the recital hereto, Paragraph 1(b) or the
definitions in Paragraph 10), (a) the term Secured Party as used in this
Annex means only Party B, (b) the term Pledgor as used in this Annex means
only Party A and only Party A will make transfers of Eligible Credit Support
hereunder as a Delivery Amount, and (c) in the calculation of any Credit
Support Amount, where the Secured Party’s Exposure would be expressed as a
negative number, such Exposure shall be deemed to be zero.

	
 

	
 

	
 

	
 

	
 (v) Definitions. Paragraph 12 is hereby amended by adding,
or where such term is already appears in Paragraph 12, replacing, in
alphabetical order, the following:

	
 

	
 

	
 

	
 

	
 

	
“Control Agreement”
means the control and custodian agreement dated ________, 2011 , between and
among Party A, Party B and J.P. Morgan Chase Bank, N.A. as collateral manager
(the “Collateral
Agent”).”

	
 

	
 

	
 

	
 

	
 

	
“Exposure” means, in
respect of any Valuation Time or other time for which Exposure is calculated
and subject to Paragraph 5 in the case of a dispute, the sum of the Price on
such date of each and every Commodity Contract in issue as at the applicable
Valuation Time, in respect of which the Pledgor has received or is deemed to
have received the applicable Creation Amount.

	
 

	
 

	
 

	
 

	
 

	
“Facility Agreement”
means the Facility Agreement entered into between the parties dated ________,
2011 and words and expression defined in the Facility Agreement shall where
the context requires or admits have the same meanings in this Agreement.

	
 

	
 

	
 

	
 

	
 

	
“Interest Amount”
means any interest amount received on cash credited to the Collateral Account
in accordance with the terms of the Control Agreement.

	
 

	
 

	
 

	
 

	
 

	
“Pledgor” means
Party A

33

	
 

	
 

	
 

	
 

	
 

	
“Price” means
“Price” as defined in and determined by the Valuation Agent in accordance
with the Facility Agreement.

	
 

	
 

	
 

	
 

	
 

	
“Secured
Party” means Party B.

	
 

	
 

	
 

	
 

	
 (vi) Published Annex. The parties agree that the text of the body of
this Annex is intended to be the printed form of ISDA Credit Support Annex
(Bilateral Form – ISDA Agreements Subject to New York Law Only version) as
published and copyrighted in 1994 by the International Swaps and Derivatives
Association, Inc. (“ISDA CSA Published Form”) and in the event of any
inconsistency between Paragraphs 1-12 of this Annex and the ISDA CSA
Published Form, the ISDA CSA Published Form shall prevail.

	
 

	
 

	
 

	
 

	
 (vii) Paragraph 3. Credit Support
Obligations. Paragraph 3(b) of the Credit Support Annex is hereby amended
to include the following at the end thereof:

	
 

	
 

	
 

	
 

	
 

	
“Notwithstanding the
provisions of Paragraph 13(b)(iv)(C), when the Credit Support Amount with
respect to a Pledgor on a Valuation Date is zero, then for the purpose of any
Return Amount due to such Pledgor, the Minimum Transfer Amount with respect
to the Secured Party shall be zero.”

IN
WITNESS WHEREOF the parties have executed this document on the respective dates
specified below with effect from the date specified on the first page of this
document.

	
 

	
 

	
 

	

	
 

	
EACH FUND LISTED ON EXHIBIT A OF
THE SCHEDULE

	
 

	
 

	
 

	
By:
[                ]

	
 

	
Sponsor

	
 

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
By: 

	
 

	
 

	

	
 

	
 

	

	
Name:

	
 

	
     Name: 

	
Title:

	
 

	
     Title: 

	
Date:

	
 

	
     Date:

34Exhibit 10.7

	
  

 
	
 Dated: ______, 2011

 
	
  

 
	

 

 
	
 MASTER CONFIRMATION
 AGREEMENT

 
	
 for

 
	
 COMMODITY DERIVATIVE TRANSACTIONS

 
	
  

 
	

 

 
	
  

 
	
 Between

 
	
 ETFS COLLATERALIZED COMMODITIES TRUST

 
	
 ON BEHALF OF ITS SEPARATE SERIES (FUNDS)

 
	
  

 
	
 and

 
	
  [COUNTERPARTY]

 

This master confirmation agreement (“Master Confirmation Agreement”) is dated as
of [          ] 2011 and is
made between ETFS COLLATERALIZED COMMODITIES TRUST, a Delaware statutory trust,
whose office is located at c/o ETF Securities USA LLC, [Ordnance House, 31 Pier
Road, St Helier, Jersey, Channel Islands] (the “Trust”), on behalf of each separate series (each a “Fund”)
as set forth in Schedule A hereto and [Counterparty] (the “Counterparty”) of [Address].

This
contractual format is solely for the purpose of documentary simplification.

Pursuant
to the Delaware Statutory Trust Act (as amended) and the Trust Agreement of the
Trust, any party extending credit to, contracting with or having any claim
against any Fund of the Trust may look only to the assets of such Fund to
satisfy or enforce any debt with respect to that Fund. 

Each
party agrees that for all purposes, this Master Confirmation Agreement
constitutes as many distinct master confirmation agreements as there are Funds
listed in Schedule A to this Master Confirmation Agreement and each relating to
one such Fund.

Any
references in this Master Confirmation Agreement to a Transaction Supplement, New Transaction Supplement or Transaction
Termination Supplement (as defined below) refer to a Transaction
Supplement, New Transaction Supplement or
Transaction Termination Supplement as prepared for such Fund.

1

PART 1 - PRELIMINARY

	
  

 	
  

 
	
 1

 	
 Transactions

 
	
  

 	
  

 
	
 1.1

 	
 The parties have entered into an ISDA Master Agreement
 dated
 [               ]
 2011 (the “Master Agreement”) and a Facility Agreement dated
 [                    ]
 2011 as amended, restated or supplemented from time to time (the “Facility Agreement”) pursuant to which,
 inter alia, the parties have agreed, subject to the conditions therein
 specified, from time to time to create and terminate certain transactions
 (described in the Facility Agreement as Commodity Contracts) to be governed
 by the Master Agreement and each constituting a “Transaction” for the purposes of this Master Confirmation.

 
	
  

 	
  

 
	
 1.2

 	
 The creation and termination of each Transaction will
 be confirmed by a transaction supplement (a “Transaction Supplement”) which shall be
 prepared and delivered by
 [                    ],
 may relate to multiple Transactions, in the case of new Transactions shall be
 in the form of a new transaction supplement (a “New
 Transaction Supplement”) and, in the case of Terminations, in the
 form of a transaction termination supplement (a “Transaction Termination Supplement”).

 
	
  

 	
  

 
	
 1.3

 	
 Each
 Transaction Supplement shall be in such form as the parties may agree
 including in the form of a Creation Notice or Cancellation Notice (and in
 default of such agreement in the forms set out in Parts II and III of this
 Master Confirmation).

 
	
  

 	
  

 
	
 1.4

 	
 Each
 Transaction Supplement may be created by an exchange of electronic messages
 on an electronic messaging, trading or settlement system (including, without
 limitation, by means of matching electronic messages sent by each party), or
 an exchange of emails or may be communicated and acknowledged in such other
 form and manner as the parties may agree.

 
	
  

 	
  

 
	
 1.5

 	
 It
 is the intention of the parties to develop web-based systems for delivering
 Transaction Confirmation Supplements in electronic form. If such systems are
 developed, the parties may make such amendments to this Master Confirmation
 as the parties may agree at the relevant time to accommodate such systems.

 
	
  

 	
  

 
	
 1.6

 	
 The confirmation applicable to each Transaction shall
 comprise this Master
 Confirmation Agreement, as supplemented by the trade details applicable to
 such Transaction as set forth in the relevant New Transaction Supplement and
 Transaction Termination Supplement.

 
	
  

 	
  

 
	
 1.7

 	
 Failure
 to send any New Transaction Supplement or Transaction Termination Supplement
 shall not affect the validity of the creation or termination of the relevant
 Transaction.

 
	
  

 	
  

 
	
 1.8

 	
 A
 New
 Transaction Supplement shall specify at least the following terms:

 
	
  

 	
  

 
	
  

 	
 Fund:

 
	
  

 	
 Trade Date:

 
	
  

 	
 Authorized Participant:

 
	
  

 	
 [Commodity Index/Class of Commodity
 Contract:]

 
	
  

 	
 Number of Transactions created:

 
	
  

 	
 [Number of outstanding Commodity Contracts
 following such creation:]

 
	
  

 	
  

 
	
 1.9

 	
 A
 New
 Transaction Supplement shall specify at least the following terms:

 

2

	
  

 	
  

 
	
  

 	
 Fund:

 
	
  

 	
 Termination Date:

 
	
  

 	
 Authorized Participant:

 
	
  

 	
 Commodity Index/Class of Commodity
 Contract:

 
	
  

 	
 Number of Transactions Terminated:

 
	
  

 	
 [Number of outstanding Commodity Contracts
 following termination:]

 
	
  

 	
  

 
	
 2

 	
 Interpretation

 
	
  

 	
  

 
	
 2.1

 	
 Capitalized terms defined in the Facility Agreement
 shall have the same meanings in this Master Confirmation.

 
	
  

 	
  

 
	
 2.2

 	
 The definitions and provisions contained in the 2005
 ISDA Commodity Definitions (the “Commodity
 Definitions”) and the 2006 ISDA Definitions as published by the
 International Swaps and Derivatives Association, Inc. (together, the “Definitions”) are, incorporated by reference
 in this Master Confirmation Agreement and each Transaction Supplement.

 
	
  

 	
  

 
	
 2.3

 	
 A reference in this Master Confirmation Agreement to
 the Commodity Definitions or to the 2006 Definitions is a reference to those
 Definitions as they may be amended or supplemented through the date on which
 the parties create the relevant transaction.

 
	
  

 	
  

 
	
 2.4

 	
 In the event of inconsistency between the Commodity
 Definitions and the 2006 ISDA Definitions, the Commodity Definitions shall
 govern. 

 
	
  

 	
  

 
	
 2.5

 	
 Any capitalized term not otherwise defined herein or
 in the Facility Agreement has the meaning assigned to such term in the
 Definitions.

 
	
  

 	
  

 
	
 2.6

 	
 In the event of inconsistency between this Master
 Confirmation Agreement, and the Definitions, this Master Confirmation
 Agreement shall govern.

 
	
  

 	
  

 
	
 2.7

 	
 In the event of
 inconsistency between the Master Confirmation Agreement or the Definitions,
 and the Transaction Supplement, the Transaction Supplement shall govern for
 the purpose of the relevant Transaction.

 
	
  

 	
  

 
	
 2.8

 	
 With respect to each Transactions, the relevant New
 Transaction Supplement and the relevant Transaction Termination Supplement
 must be read together.

 
	
  

 	
  

 
	
 2.9

 	
 An amendment, modification or waiver of this Master
 Confirmation Agreement will only be effective if agreed in writing (including
 a writing evidenced by a facsimile transmission or pdf) and executed by each
 of the parties.

 
	
  

 	
  

 
	
 2.10

 	
 This Master Confirmation
 Agreement and each Transaction Supplement documented hereunder may be
 executed in counterparts, each of which will be deemed an original.

 
	
  

 	
  

 
	
 2.11

 	
 The headings used in
 this Master Confirmation Agreement are for convenience of reference only and
 shall not affect the construction of or be taken into consideration in
 interpreting this Master Confirmation Agreement.

 

3

	
  

 	
  

 
	
 2.12

 	
 A reference to this
 Master Confirmation Agreement or to any other document (including, without
 limitation, the ISDA Master Agreement) is a reference to this Master
 Confirmation Agreement (including the Exhibits and Annex) or to that other
 document as amended, supplemented or restated from time to time.

 
	
  

 	
  

 
	
 2.13

 	
 This Master Confirmation
 Agreement and each Transaction confirmed by a Transaction Supplement will be
 governed by and construed in accordance with the law specified in the ISDA
 Master Agreement and will be subject to the jurisdiction, service of process
 and waiver of immunities provisions of Section 13 of the ISDA Master
 Agreement. 

 

4

PART 2 - GENERAL TERMS
APPLICABLE TO EACH TRANSACTION

	
  

 	
  

 
	
 1.

 	
 The
 terms of each Transaction (Commodity Contract) to which this Master
 Confirmation relates are as follows:

 

	
  

 	
  

 	
  

 
	
 General Terms:

 	
  

 
	
  

 	
  

 
	
 Trade
 Date:

 	
 The first date on which a Creation Notice both
 (a) is or becomes valid in accordance with paragraph 6 of Schedule 6 to the
 Facility Agreement and (b) is or becomes incapable of being cancelled under
 paragraph 4 of Schedule 6 of the Facility Agreement.

 
	
  

 	
  

 
	
 Effective
 Date

 	
 Trade Date

 
	
  

 	
  

 
	
 Termination
 Date:

 	
 The date on which:

 
	
  

 	
 (a)

 	
 a Cancellation Notice first is or becomes valid
 in accordance with paragraph 4 of Schedule 7 to the Facility Agreement; or if
 earlier

 
	
  

 	
 (b)

 	
 the date on which a Compulsory Pricing Date first
 is or becomes valid in accordance with Clause 9 of the Facility Agreement in
 respect of the relevant Transaction.

 
	
  

 	
  

 
	
 Business
 Day:

 	
 New York.

 
	
  

 	
  

 
	
 Floating Amount Details:

 	
  

 
	
  

 	
  

 
	
 Floating
 Amount

 	
 An Initial Floating Amount or a Final Floating
 Amount, and section 6.1 of the Commodity Definitions shall be deemed amended
 accordingly.

 
	
  

 	
  

 
	
 Floating
 Price Payer:

 	
 The Initial Floating Price Payer or the Final
 Floating Price Payer.

 
	
  

 	
  

 
	
 Payment
 Date

 	
 Has the meaning given in the Facility Agreement.

 
	
  

 	
  

 
	
 Initial
 Floating Amount

 	
 the Price (as defined in the Facility Agreement)
 of the relevant Commodity Contract on the Trade Date.

 
	
  

 	
  

 
	
 Initial
 Floating Price Payer:

 	
 The Fund.

 
	
  

 	
  

 
	
 Final
 Floating Amount

 	
 The Price (as defined in the Facility Agreement)
 of the relevant Commodity Contract on the Termination Date.

 
	
  

 	
  

 
	
 Final
 Floating Price Payer:

 	
 The Counterparty.

 
	
  

 	
  

 
	
 Calculation Agent:

 	
 Has the meaning given in the
 Facility Agreement.

 

5

	
  

 	
  

 
	
 For the avoidance of doubt, a
 failure by the Initial Floating Price Payer to pay the Initial Floating
 Amount on the Payment Date will not constitute an Event of Default and the
 Counterparty may at any time while such failure continues terminate the
 relevant Transaction by serving a Cancellation Notice in accordance with
 paragraph 11 of Schedule 6 to the Facility Agreement.

 
	
  

 	
  

 
	
 Market Disruption:

 	
  

 
	
  

 	
  

 
	
 Market Disruption Event:

 	
 Has the meaning given in the
 Facility Agreement.

 
	
  

 	
  

 
	
 [Disruption
 Fallbacks

 	
 Clause 5.9, Schedule 6 clause 4(a)(i)-(iv) and Schedule 6 clause
 4(a)(i)-(iv) of the Facility Agreement and section 7.5 of the Commodity
 Definitions shall not apply.]

 
	
 Additional Provisions:

 	
  

 
	
  

 	
  

 
	
 Index License Disclaimer:

 	
 See following disclaimer:

 

The Dow Jones-UBS Commodity IndexesSM
are a joint product of Dow Jones Indexes, a licensed trademark of CME Group
Index Services LLC (“CME Indexes”), and UBS Securities LLC (“UBS Securities”),
and have been licensed for use. “Dow Jones®”, “DJ”, “Dow Jones Indexes”, “UBS”,
“Dow Jones-UBS Commodity IndexSM”, and “DJ-UBSCISM” are
service marks of Dow Jones Trademark
Holdings, LLC (“Dow Jones”) and UBS AG (“UBS AG”), as the
case may be, have been
licensed to CME Indexes] and have been sublicensed for use
for certain purposes by ETF Marketing LLC (the “Licensee”). 

The Commodity Contracts are not sponsored,
endorsed, sold or promoted by Dow Jones, UBS AG, UBS Securities, CME Indexes or
any of their subsidiaries or affiliates. None of Dow Jones, UBS AG, UBS
Securities, CME Indexes
or any of their subsidiaries or affiliates makes any representation or
warranty, express or implied, to the owners of or counterparts to the Commodity
Contracts or any member of the public regarding the advisability of investing
in securities or commodities generally or in the Commodity Contracts
particularly. The only relationship of Dow Jones, UBS AG, UBS Securities, CME Indexes or
any of their subsidiaries or affiliates to the Licensee is the licensing of
certain trademarks, trade names and service marks and of the DJ-UBSCISM,
which is determined, composed and calculated by CME Indexes in conjunction with UBS Securities
without regard to the Licensee or the Commodity Contracts. Dow Jones, UBS Securities and CME Indexes
have no obligation to take the needs of the Licensee or the owners of the
Commodity Contracts into consideration in determining, composing or calculating
DJ-UBSCISM. None of Dow Jones, UBS AG, UBS Securities, CME Indexes or
any of their respective subsidiaries or affiliates is responsible for or has
participated in the determination of the timing of, prices at, or quantities of
the Commodity Contracts to be issued or in the determination or calculation of
the equation by which the Commodity Contracts are to be converted into cash.
None of Dow Jones, UBS AG, UBS Securities, CME Indexes or any of their subsidiaries or
affiliates shall have any obligation or liability, including, without
limitation, to the Fund, in connection with the administration, marketing or
trading of the Commodity Contracts. Notwithstanding the foregoing, UBS AG, UBS
Securities, CME Group
Inc. and their respective subsidiaries and affiliates may
independently issue and/or sponsor financial products unrelated to the
Commodity Contracts currently being issued under this Master Confirmation, but
which may be similar to and competitive with the Commodity Contracts. In
addition, UBS AG, UBS Securities, CME Group Inc.  and their subsidiaries and affiliates
actively trade commodities, commodity indexes and commodity futures (including
the Dow Jones-UBS Commodity IndexSM and Dow Jones-UBS Commodity
Index Total ReturnSM), as well as swaps, options and derivatives
which are linked to the performance of such commodities, commodity indexes and
commodity 

6

futures. It is possible that this trading
activity will affect the value of the Dow Jones-UBS Commodity IndexSM
and Commodity Contracts.

Purchasers of the Commodity Contracts should
not conclude that the inclusion of a futures contract in the Dow Jones-UBS
Commodity IndexSM is any form of investment recommendation of the
futures contract or the underlying exchange-traded physical commodity by Dow
Jones, UBS AG, UBS Securities, CME Indexes
or any of their subsidiaries or affiliates. None of Dow Jones, UBS AG, UBS
Securities, CME Indexes
or any of their subsidiaries or affiliates has made any due diligence inquiries
with respect to the Dow Jones-UBS Commodity IndexSM components in
connection with Commodity Contracts. None of Dow Jones, UBS AG, UBS Securities, CME Indexes or
any of their subsidiaries or affiliates makes any representation that any other
publicly available information regarding the Dow Jones-UBS Commodity IndexSM
components, including without limitation a description of factors that affect
the prices of such components, are accurate or complete. 

NONE OF DOW JONES,
UBS AG, UBS SECURITIES, CME INDEXES
OR ANY OF THEIR SUBSIDIARIES OR AFFILIATES GUARANTEES THE ACCURACY AND/OR THE
COMPLETENESS OF THE DOW JONES-UBS COMMODITY INDEXSM OR ANY DATA
RELATED THERETO AND NONE OF DOW JONES, UBS AG, UBS SECURITIES, CME INDEXES OR
ANY OF THEIR SUBSIDIARIES OR AFFILIATES SHALL HAVE ANY LIABILITY FOR ANY
ERRORS, OMISSIONS OR INTERRUPTIONS THEREIN. NONE OF DOW JONES, UBS AG, UBS
SECURITIES, CME INDEXES
OR ANY OF THEIR SUBSIDIARIES OR AFFILIATES MAKES ANY WARRANTY, EXPRESS OR
IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE LICENSEE, OWNERS OF THE SECURITIES
ISSUED BY THE FUND OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW
JONES-UBS COMMODITY INDEXSM OR ANY DATA RELATED THERETO. NONE OF DOW
JONES, UBS AG, UBS SECURITIES, CME INDEXES
OR ANY OF THEIR SUBSIDIARIES OR AFFILIATES MAKES ANY EXPRESS OR IMPLIED
WARRANTIES AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE DOW JONES-UBS COMMODITY
INDEXSM OR ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE
FOREGOING, IN NO EVENT SHALL DOW JONES, UBS AG, UBS SECURITIES, CME INDEXES OR
ANY OF THEIR SUBSIDIARIES OR AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS
OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF
NOTIFIED OF THE POSSIBILITY THEREOF. THERE ARE NO THIRD PARTY BENEFICIARIES OF
ANY AGREEMENTS OR ARRANGEMENTS AMONG UBS SECURITIES, CME INDEXES
AND THE LICENSEE, OTHER THAN UBS AG AND THE LICENSORS OF CME INDEXES.

7

SIGNED by the Parties by
their duly authorized representatives:

	
  

 	
  

 	
  

 
	
 ETF
 SECURITIES USA LLC on behalf of 

 ETFS
 Collateralized Commodities Trust

 separately on behalf of each of its Funds

 	
 )

 )

 )

 
	
  

 	
  

 	
 )

 
	

 

 	
  

 	
 )

 
	
 [Sponsor]

 	
  

 	
 )

 
	
  

 	
  

 	
  

 
	
 [COUNTERPARTY]

 	
  

 	
 )

 
	
  

 	
  

 	
 )

 
	

 

 	
  

 	
 )

 
	
 [Counterparty]

 	
  

 	
 )

 

8

PART II

New Transaction
Supplement

This New Transaction Supplement is entered into
between [Counterparty] (“Party A”) and the Fund identified below (“Party B”).
Its purpose is to confirm the terms of the new Transactions created between
Party A and Party B on the Trade Date specified below. This New Transaction
Supplement supplements, forms a part of, and is subject to the Master
Confirmation for Transactions dated as of ____________, 2011 between the
Parties, as may be amended and supplemented from time to time and, together
with such Master Confirmation constitutes a “Confirmation” as referred to in
the ISDA Master Agreement between us, dated as of ____________, 2011, as
amended and supplemented from time to time.

The terms of the new Transactions to which this
Transaction Confirmation Supplement relates are confirmed as follows:

	
  

 	
  

 
	
  

 	
 Trade
 Date:

 
	
  

 	
  

 
	
  

 	
 Fund:

 
	
  

 	
  

 
	
  

 	
 Authorized
 Participant:

 
	
  

 	
  

 
	
  

 	
 Commodity
 Index/Class of Commodity Contract:

 
	
  

 	
  

 
	
  

 	
 Number
 of Transactions (Commodity Contracts) created:

 
	
  

 	
  

 
	
  

 	
 Number
 of outstanding Commodity Contracts following such creation.:

 

9

PART III

Transaction
Termination Supplement

This Transaction Termination Supplement is entered
into between [Counterparty] (“Party A”) and the Fund identified below (“Party
B”). Its purpose is to confirm the terms of the Termination on the Trade Date
specified below of one or more Transactions created between Party A and Party
B. This Transaction Termination Supplement supplements, forms a part of, and is
subject to the Master Confirmation for Transactions dated as of ____________,
2011 between the Parties, as may be amended and supplemented from time to time
and, together with such Master Confirmation constitutes a “Confirmation” as
referred to in the ISDA Master Agreement between us, dated as of ____________,
2011, as amended and supplemented from time to time.

The terms of the Termination(s) to which this
Transaction Termination Supplement relates are confirmed as follows:

	
  

 	
  

 
	
  

 	
 Termination
 Date:

 
	
  

 	
  

 
	
  

 	
 Fund:

 
	
  

 	
  

 
	
  

 	
 Authorized
 Participant:

 
	
  

 	
  

 
	
  

 	
 Commodity
 Index/Class of Commodity Contract:

 
	
  

 	
  

 
	
  

 	
 Number
 of Transactions (Commodity Contracts) Terminated:

 
	
  

 	
  

 
	
  

 	
 Number
 of outstanding Commodity Contracts following termination:

 

10

SCHEDULE A

LIST OF FUNDS

	
  

 	
  

 
	
  

 	
 Fund Name

 
	
  

 	

 

 
	
  

 	
 ETFS
 Oil

 
	
  

 	
 ETFS
 Natural Gas

 
	
  

 	
 ETFS
 Copper

 
	
  

 	
 ETFS
 Wheat

 
	
  

 	
 ETFS
 Composite Agriculture

 
	
  

 	
 ETFS
 Composite Industrial Metals

 
	
  

 	
 ETFS
 Composite Energy

 
	
  

 	
 ETFS
 All Commodities

 
	
  

 	
 ETFS
 Short Oil

 
	
  

 	
 ETFS
 Short Natural Gas

 
	
  

 	
 ETFS
 Short Copper

 
	
  

 	
 ETFS
 Short Wheat

 
	
  

 	
 ETFS
 Short Gold

 
	
  

 	
 ETFS
 Leveraged Oil

 
	
  

 	
 ETFS
 Leveraged Natural Gas

 
	
  

 	
 ETFS
 Leveraged Copper

 
	
  

 	
 ETFS
 Leveraged Wheat

 
	
  

 	
 ETFS
 Leveraged Gold

 

11

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