Document:

Employment Agreement

 EMPLOYMENT AGREEMENT 
  
 Exhibit 10.4 
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of January 1, 2004, is between NUMATICS, INCORPORATED, a Michigan corporation with its
principal offices at 1450 North Milford Road, Highland, Michigan 48031 (the “Company”), and JOHN H. WELKER, an individual residing at 4340 Chevron, Highland, Michigan 48356 (“Employee”). 
  
 Background: 
  
 A. Employee is employed by the Company as its President and Chief Executive Officer. The term of the previous employment
agreement between the Company and Employee dated as of January 3, 1996 (the “Previous Agreement”) expired on December 31, 2003. 
  
 B. The Company desires to continue to employ Employee, and wishes to have available and to be assured of his continued services, on the terms and
conditions set forth in this Agreement, and Employee wishes to continue to be employed by the Company and to provide his services on those terms and conditions. 
  

C. The Company would be severely injured if Employee should directly or indirectly, for himself or in the service of others, engage in certain
activities in competition with the Company, and the Company desires certain covenants to protect its reasonable competitive business interests. 
  
 Agreement: 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Employment. 

  
 The Company hereby agrees to employ Employee as the President and Chief Executive Officer of the Company, and Employee hereby agrees to serve the Company
in such capacity, during the term of the Agreement. Employee shall have the duties, responsibilities, and authority commensurate with and normally attending such position, as well as such additional powers and administrative duties as may be
reasonably designated from time to time by the Board of Directors of the Company. Employee shall be in charge of the day-to-day operations of the business of the Company, and all personnel shall report to Employee or his designees. 

	2.	Extent and Place of Services. 

  
 Employee shall, subject to the reasonable vacation periods compatible with his position (the duration of which shall be determined from time to time by
the Board of Directors of the Company but shall not be less than one month each year), periods of illness, and the like, devote substantially full time and attention to his duties under this Agreement. Employee shall perform his duties at such a
place or places as the Board of Directors shall reasonably request from time to time; provided, however, Employee shall not be required to perform any services under this Agreement which will necessitate moving his residence from the
metropolitan area of Highland, Michigan. 
  

	3.	Term of Employment; Compensation. 

  
 3.1 Term. The term of Employee’s employment hereunder shall be effective from the date of this Agreement, and shall continue until and
including December 31, 2008, unless his employment is terminated earlier as hereinafter provided. 
  
 3.2 Salary. During the period from the date of this Agreement to December 31, 2004, Employee will receive as compensation for his services a salary
equal to an annualized salary of $440,000, payable twice each month, or as the Company normally pays, subject to normal federal, state, and local tax withholding. After December 31, 2004, Employee shall receive the following annual salaries payable
as above: 
  
 (a) Salary effective January 1,
2005 shall be $462,000; 
  
 (b) Salary effective
January 1, 2006 shall be $485,000; 
  
 (c) Salary
effective January 1, 2007 shall be $510,000; and 
  
 (d) Salary effective January 1, 2008 shall be $535,000. 
  
 3.3 Incentive Bonus. Employee shall be eligible to receive additional compensation (over and above and in addition to the salary specified in Section 3.2 and any additional discretionary bonus awarded pursuant to Section 3.4) in
respect of each fiscal year of the Company during the term of this Agreement, commencing with the fiscal year ending December 31, 2004, determined accordance with the Company’s Executive Incentive Bonus Plan, as the same may be modified from
time to time, except that, notwithstanding any contrary provisions of the Executive Incentive Bonus Plan which may be applicable to other executive employees: 
  

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 (a) Employee’s bonus for each fiscal year shall be calculated based on a target
bonus (i.e., the bonus amount to be awarded if the Company achieves 100% of the applicable financial goals for that fiscal year) equal to 60% of his salary for that fiscal year rather than the 50%-of-salary target currently used for
calculating bonuses for other executive employees; and 
  
 (b) The maximum bonus to which Employee shall be entitled under this Section 3.3. for any given fiscal year shall be an amount equal to 125% of his salary for that fiscal year. 
  
 The incentive bonus for any fiscal year shall be paid within 75 days after the close of that fiscal year; provided,
however, that in the event of termination of the employment of Employee for any reason or in the event the Company’s fiscal year is changed during the term of this Agreement and an incentive bonus is thereby based on less than a full fiscal
year, then the incentive bonus shall be prorated (on a monthly basis) for the portion of the fiscal year during which Employee was employed based upon actual performance through the end of the most recently-completed fiscal month ending on or before
the date of termination or the end of the short fiscal year. 
  
 3.4 Discretionary Bonus. At the end of each fiscal year of the Company, Employee shall be considered by the Board of Directors for additional discretionary bonus compensation. In reaching its decision as to the amount of any such
discretionary bonus, the Board of Directors shall take into account the performance of the Company and the Employee. The amount of any such discretionary bonus payment shall be within the sole discretion of the Board of Directors acting by unanimous
consent of all of its members. The Board of Directors will take into account the state of the economy in the previous fiscal year in deciding whether or not to award a bonus under this Section 3.4. 
  
 3.5 Business Expenses. Upon proper substantiation and documentation
(for all items over $25.00) by Employee, the Company shall reimburse Employee promptly and not less frequently than once each month for all reasonable travel, lodging, food, entertainment, and other related business expenses incurred by him in the
performance of his duties under this Agreement pursuant to the Company’s normal and customary policy. 
  
 3.6 Benefits. During the term of this Agreement, Employee shall be eligible to participate in any and all medical and dental reimbursement, wage
continuation, profit-sharing, pension, stock option, stock purchase, and other 
  

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 similar plans or fringe benefits of the Company, as the same may be amended from time to time, on the same basis as other
executive officers of the Company. During the term of this Agreement, the Company agrees to purchase or lease for the sole use of Employee an automobile at least comparable to that presently being provided Employee by the Company, which shall be
replaced at least every two years. During the term of this Agreement, the Company agrees to obtain and keep in force public liability and property damage insurance on the automobile, in amounts and with insurers reasonably satisfactory to Employee,
with Employee named as party insured. 
  
 3.7 Salary and
Benefit Continuation in the Event of Disability. In the event of any disability, illness, or incapacity during the term of this Agreement which does not constitute “permanent disability” as defined in Section 4(b), Employee shall
continue to receive the salary and all benefits then in effect during the continuance of the disability, illness, or incapacity. 
  
 3.8 Maximum Salary. In any given calendar year, the Employee’s total compensation under this Section 3 shall not exceed 300% of that year’s base
salary. 
  

	4.	Termination of Employment. 

  
 Notwithstanding the provisions of Section 3, Employee’s employment under this Agreement and all salary and benefits referred to in Section 3, unless
otherwise expressly provided in this Agreement, shall terminate on the earliest of the following dates: 
  
 (a) The date of the death of Employee, provided that payments of Employee’s regular salary in effect in the year of his death as
provided in Section 3.2. shall continue to be paid twice a month for 60 days after Employee’s death; 
  
 (b) Not less than 30 days after the date on which the Company gives Employee notice of the termination of his employment by reason of
failure to perform his duties under this Agreement due to permanent disability; provided, however, the Company shall only be allowed to exercise this termination option if the Company shall have obtained and shall have kept in full force and
effect a disability insurance policy which will pay Employee 50% of his then current salary until his normal retirement date or until the disability or incapacity shall cease, whichever shall occur earlier. The term “permanent disability”
for purposes of this Agreement shall mean that Employee is substantially incapable, as 
  

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established on the basis of a written medical opinion from a physician acceptable to Employee, of performing the duties required of him under this Agreement
because of physical or mental impairment for a continuous period of one 180 days; 
  
 (c) 60 days after the date on which the Company gives Employee written notice of the termination of his employment for any reason
(including, without limitation, permanent disability with respect to which the insurance referred to in Section 4(b) is not maintained) other than for “cause” as defined below. If Employee’s employment is terminated pursuant to this
Section 4(c), Employee’s regular salary (less the proceeds of disability insurance payable, if any, to Employee) for the year in which Employee is terminated, as provided in Section 4(b) shall be paid for a one-year period (payable twice a
month) beginning on the effective date of the Employee’s termination of employment; 
  
 (d) The date on which the Company gives Employee a written notice of termination, terminating his employment for cause. The term
“cause” as used in this Agreement shall mean: (1) Employee’s conviction of a felony; (2) the willful and gross neglect by Employee of his duties; or (3) serious misconduct involving dishonesty in the course of employment. In the event
that a member of the Board of Directors believes that “cause” for Employee’s termination exists, the Board member shall give a written statement of his belief to Employee, the Company, and all other members of the Board. A reasonable
determination of whether “cause” for termination exists shall then be made by the Board of Directors (excluding Employee) after reasonable notice of not less than ten days to Employee and an opportunity for Employee to be heard by the
Board of Directors. Except as provided hereafter, if following the hearing the Board of Directors determines that cause exists, it may then send a written notice of termination to Employee. In the event cause is based solely on an item falling under
clause (2) above, Company agrees that, after the hearing, Employee shall be given written notice of the event or activity warranting termination hereunder for cause and shall be given 30 days after the Board of Directors’ determination that
cause exists to cure the event or cease the activity delineated in the notice. If the grounds for cause have not then been ceased or cured, the Board may then send a written notice of termination to Employee, but in the event of a such cure or
cessation, the Company shall no longer be able to terminate Employee on the basis that that event or activity constituted cause; or 
  

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 (e) The date of Employee’s voluntary resignation or retirement. 
  

	5.	Conventions and Meetings. 

  
 Employee shall be entitled to attend, at Company’s expense, such conventions, seminars, and similar business meetings which, in his reasonable
judgment, he deems necessary or desirable in connection with the performance of his duties for the Company. 
  

	6.	Competitive Activities. 

  
 6.1 Noncompetition Agreement. Except as provided in Section 6.3, Employee shall not, during his employment with the Company and for a period of one
year from the date of the termination of his employment with the Company, either directly or indirectly, as an employee, director, officer, co-venturer, co-marketer, shareholder, partner, advisor, or consultant of or to any business, engage in any
commercial activity or participate in any venture of any kind that competes with the Company with respect to the Fluid Power Products Business or with respect to any other business in which the Company shall be engaged at any time within two years
before termination of the Employee’s employment with the Company, within the United States, Canada, Germany, the United Kingdom, or any other country, territory, or jurisdiction in which the Company shall have conducted business at any time
within two years before termination of the Employee’s employment with the Company. For purposes of this Agreement, “Fluid Power Products Business” shall mean the manufacture, marketing, and distribution of air valves, actuators, air
preparation equipment, filters, lubricators, regulators, and other fluid power products (as they pertain to compressed air systems) to customers, including original equipment manufacturers and end users. 
  
 6.2 Reasonableness of Restrictions. Employee acknowledges that the
Company has expended substantial time and expense in the research and development of processes, technology, techniques, and products which are unique to the Company or not generally known to others and which could be unfairly taken or used by others
in competition with the Company, and he further acknowledges that competition with the Company is not based on geographical location. Accordingly, Employee agrees that the restrictions contained in this Agreement are reasonable and appropriate to
protect the Company’s reasonable competitive business interests. 
  
 6.3 Exceptions. Notwithstanding anything herein stated: 
  

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 (a) Section 6.1 shall not prohibit Employee from owning, with respect to any
corporation, not more than 1% of any class of its securities listed on a national securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System; and 
  
 (b) Section 6.1 shall apply only if the
Employee’s employment with the Company or a subsidiary is terminated by Resignation. Resignation means the voluntary termination of employment with the Company or a subsidiary, including without limitation such termination after the age of 65.

  
 6.4 Equitable Relief. Employee acknowledges and understands
that a breach by him of any of the provisions of Section 6.1 or 6.2 may cause the Company irreparable injury and damage that cannot be reasonably or adequately compensated by damages at law. Employee therefore agrees that the Company shall be
entitled, in addition to any other remedies legally available, to injunctive and/or other equitable relief to prevent a breach of any of the provisions of Section 6.1 or 6.2 and reasonable attorneys’ fees in enforcing the provisions of Sections
6.1 and 6.2. 
  

	7.	Confidential Information. 

  
 7.1 Agreement Not to Disclose. Except by written permission from the Company, Employee shall not disclose or use any Confidential Information of
the Company or any of its subsidiaries of which Employee becomes informed during, or within five years after termination of, his employment, whether or not generated by Employee, except as required by his duties to the Company. The term
“Confidential Information” for purposes of this Agreement shall mean any information of the Company or any of its subsidiaries or customers of any of the foregoing, including any formula, pattern, compilation, program, device, method,
technique, or process that derives independent economic value from not being generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use. Information does not
lose its confidential status merely because it was known by a limited number of persons or entities or because it was not entirely originated by the Company or its subsidiaries. Without limiting the generality of the foregoing, Employee shall not,
during the period covered by this Section 7.1, publish, disclose, or use, or authorize anyone else to publish, disclose or use, any Confidential Information. 
  

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 7.2 Return of Information to Company. Upon termination of his employment with the Company,
Employee agrees to deliver to the Company all materials that include Confidential Information, including without limitation customer cards or lists, product formulations, instruction sheets, drawings, manuals, letters, notes, notebooks, reports, and
copies thereof, and all other materials which are under his control and which relate to the Fluid Power Products Business or to any other aspect of the business of the Company or its subsidiaries, including any product, apparatus, or process owned,
manufactured, used, developed, or investigated by the Company or any subsidiary of the Company during the course of his employment. Employee agrees and understands that the same and all information contained therein shall be at all times the
property of the Company. Further, upon termination of his employment with the Company, Employee agrees to make available to any person designated by the Company all information concerning pending or preceding transactions that may affect the
operation of the Company or any subsidiary of the Company about which Employee has knowledge. The obligations of Employee contained in this Section 7.2are in addition to the obligation of Employee to return to the Company, upon the termination of
his employment, all property of the Company then in his possession. 
  

	8.	Assignment of Inventions. 

  
 Employee shall promptly disclose to the Company all inventions, discoveries, improvements, designs, processes, techniques, equipment, trademarks, and
copyrightable matter conceived or made by him during his employment and related to the Fluid Power Products Business or any other aspect of the business of the Company, and Employee hereby assigns all of his interest therein, including the good will
of the business symbolized by any trademarks, to the Company. Employee further agrees to execute any applications, assignments, and other instruments that the Company deems necessary to obtain letters patent, trademark registrations, or copyright
registrations in the United States or any foreign country or otherwise to protect the Company’s interests in intellectual property. Nothing contained in this provision shall apply to any invention for which no equipment, supplies, facilities,
or trade secret information of the Company or any subsidiary of the Company was used, that was developed entirely on Employee’s own time, and that does not relate (1) to the Fluid Power Products Business or to any other aspect of the business
of the Company or any subsidiary of the Company or (2) to the actual or anticipated research or development of the Company or any subsidiary of the Company. 
  

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	9.	Miscellaneous. 

  
 9.1 Governing Law. This Agreement shall be construed in accordance with, and shall be governed by, the laws of the State of Michigan other than its
choice of law rules. 
  
 9.2 Entire Agreement; Binding
Effect. This instrument contains the entire understanding and agreement between the parties relating to the subject matter of this Agreement and supersedes the Previous Agreement and any other prior employment agreement between the parties,
whether written or oral. Employee acknowledges that he is not entitled to any compensation under the Previous Agreement beyond that which has been paid. Neither this Agreement nor any of its provisions may be waived, modified, amended, changed,
discharged, or terminated except by an agreement in writing signed by the party against whom enforcement of any waiver, modification, change, amendment, discharge, or termination is sought. This Agreement shall inure to the benefit of and shall be
binding upon the parties and their respective successors and assigns, and in the case of Employee, Employee’s heirs and/or personal representatives. 
  
 9.3 Assignment. Employee shall not assign any of his obligations under this Agreement. 
  
 9.4 Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, and such counterparts shall together constitute a single agreement. 
  
 9.5 Provisions Severable. To the extent that any one or more of the provisions of this Agreement shall be invalid, illegal, or unenforceable in any
respect, the validity, legality, and enforceability of its remaining provisions shall not in any way be affected or impaired. 
  
 9.6 Construction. Whenever possible, each provision of this Agreement shall be interpreted so that it is valid under applicable law. If any
provision of this Agreement is to any extent found to be invalid, illegal or unenforceable in any respect under applicable law, that provision shall still be effective to the extent it remains valid, and the remainder of this Agreement also will
continue to be valid. If any restriction contained in this Agreement is found to be too broad to permit its enforcement to its fullest extent, then the restriction shall be construed or re-written so as to be enforceable to the maximum extent
permitted by law. 
  

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 9.7 Headings. The section headings in this Agreement are for convenience only and shall not be
used in interpreting or construing this Agreement. 
  
 9.8
Notices. Any notice required or permitted to be given under the provisions of this Agreement shall be deemed properly given if in writing and delivered personally or if mailed certified or registered mail, return receipt requested, sufficient
postage prepaid, to the following persons at the following addresses, or to such other person or other address as either party may designate by notice in writing to the other party to this Agreement: 
  
 To Employee: 
  
 John H. Welker 
 7296 Rabbit Ears Pass 
 Clarkston, Michigan 48346 
  
 To the Company: 
  
 Numatics, Incorporated 
 1450 North Milford Road 
 Highland, Michigan 48357 
 Attn.: Chief Financial Officer 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year shown in the first paragraph. 
  

									
	 NUMATICS, INCORPORATED
	 	 	 	 
					
	By:	 	    /s/    Robert P. Robeson        	 	 	 	 	 	     /s/    John H. Welker        

	 	 	
	 	 	 	 	 	

	 	 	 Robert P. Robeson
 Vice President
	 	 	 	 	 	 JOHN H. WELKER

  

 10Service Agreement

 Exhibit 10.8 
  
 SERVICE AGREEMENT 
  
 This service agreement (“Agreement”) is effective as of July 1, 2003 by and among the WORLD MONITOR TRUST—SERIES A, B AND C, WORLD MONITOR TRUST II—SERIES D, E, AND F, DIVERSIFIED FUTURES TRUST I,
DIVERSIFIED FUTURES TRUST II and PRUDENTIAL SECURITIES STRATEGIC TRUST (each a “Trust” and collectively, the “Trusts”), PRUDENTIAL SECURITIES FUTURES MANAGEMENT INC., as the managing owner of each of the Trusts
(the “Managing Owner”) and WACHOVIA SECURITIES, LLC (the “Service Provider”). 
  
 WHEREAS, each of the Trusts is a Delaware business trust organized to trade futures contracts and other investments; 
  
 WHEREAS, the Managing Owner is a Delaware corporation registered with the Commodity Futures Trading Commission (“CFTC”) as a Commodity Pool Operator
(“CPO”) and Commodity Trading Advisor (“CTA”); 
  
 WHEREAS,
Service Provider is registered with the CFTC and the National Futures Association (“NFA”) as a futures commission merchant (“FCM”) and is also registered as a broker-dealer with the Securities and Exchange Commission
(“SEC”) and is a member of the National Association of Securities Dealers, Inc. (“NASD”); 
  
 WHEREAS, each of the Trusts has sold interests to the public (the “Interests”) pursuant to the terms of a prospectus (each, a “Prospectus”); and 
  
 WHEREAS, the Managing Owner wishes to engage the Service Provider as a service provider for the
Trusts and the Service Provider wishes to act as a service provider for the Trusts. 
  
 NOW, THEREFORE, in consideration of their mutual covenants and undertakings and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows: 
  
 1.  Services to be Provided 
  
 The Service Provider agrees to perform the following services for limited owners of
the Trusts that have accounts with the Service Provider (“Limited Owners”): (a) inquiring of the Managing Owner from time to time, at the request of a Limited Owner, as to the Net Asset Value per Interest; (b) inquiring of the Managing
Owner from time to time, at the request of a Limited Owner, regarding the commodity interest markets or any Trust; (c) assisting, at the request of the Managing Owner, in the redemption, exchange and transfer of Interests; and (d) providing such
other services to the Limited Owners as the Managing Owner may, from time to time, reasonably request. To the extent that the Service Provider utilizes the services of its employees to assist it in performing the services described above, each such
employee will be registered with the CFTC and will have passed either the Series 3 National Commodity Futures Examination or the Series 31 Futures Managed Funds Examination. 
  
 In connection with the foregoing services, the Service Provider shall not give any written material other than such written material
as has been approved in advance by each of the Trusts or the Managing Owner. The Service Provider shall make no oral representation to any Limited Owner unless such representation is specifically set forth in the applicable Prospectus or properly
approved written material. 
  
 2.  Undertakings 
  
 The Managing Owner and the Trusts agree to cooperate with the Service Provider in the
performance of the Service Provider’s services hereunder, and to provide the Service Provider with any and all information and documentation that the Service Provider reasonably requires in order to perform the services contemplated by this
Agreement. Without limiting the generality of the foregoing, the Managing Owner agrees to provide the Service Provider with copies of (i) each Prospectus and any amendments or supplements thereto; (ii) any and all monthly and annual reports of any
Trust; and (iii) all correspondence sent by any Trust and/or the Managing Owner to the Limited Owners. 
  
 3.  Representations and Warranties of the Managing Owner 
  
 The Managing Owner represents and warrants to the Service Provider that: 
  

	 	A.	 Each of the Managing Owner and the Trusts has obtained and possesses all required governmental, regulatory and commodity exchange approvals and licenses and that each has

	 	 
effected all filings and registrations required in order to enter into and perform this Agreement, to conduct its business generally and to perform its obligations
described hereunder and as described in the Prospectus. 

  

	 	B.	Each of the Managing Owner and the Trusts will maintain such approvals, licenses, filings and registrations throughout the term of this Agreement and shall notify the Service Provider
immediately of any material change in such approvals, licenses, filings or registrations. 

  

	 	C.	Each of the Managing Owner and the Trusts has complied with all laws, rules and regulations applicable to its business, including rules and regulations promulgated by the CFTC and NFA, the
violation of which would materially and adversely affect their respective business, financial condition or earnings. 

  

	 	D.	There are no actions, suits or proceedings pending or, to the best of the Managing Owner’s knowledge, threatened against the Managing Owner or any Trust at law or in equity or before or
by any Federal, state, municipal or other governmental or regulatory department, commission, board, bureau, agency or instrumentality, or by any commodity or security exchange worldwide in which an adverse decision would materially and adversely
affect the ability of the Managing Owner or any Trust to comply with and perform their respective obligations under this Agreement or any Prospectus. 

  

	 	E.	This Agreement has been duly and validly authorized, executed and delivered and is a valid and binding agreement, enforceable against the Managing Owner and each Trust in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy, moratorium, insolvency or other laws now or hereafter enacted affecting the enforcement of creditors’ rights generally and by legal and equitable restrictions on the
availability of equitable remedies, including specific performance. 

  

	 	F.	Neither the Managing Owner nor any Trust will use the Service Provider’s name in any documents or correspondence in connection with any Trust without the express written consent of the
Service Provider, which consent shall not be unreasonably withheld. 

  
 The representations and warranties contained in this Section 3 shall continue during the term of this Agreement, and, if at any time any event has occurred which would make or tend to make any of the foregoing not true, the
Managing Owner will promptly notify the Service Provider in writing of such event. 
  
 4.  Representations and Warranties of the Service Provider 
  
 The Service Provider hereby represents and warrants to the Trusts and to the Managing Owner that: 
  

	 	A.	It is duly registered Futures Commission Merchant as that term is defined under Section 4d of the Commodity Exchange Act as amended and the regulations thereunder and is a registered member
of NFA. 

  

	 	B.	It is registered with the SEC as a broker-dealer and is a registered member of the NASD. 

  

	 	C.	It will maintain the foregoing registration status throughout the time it performs any services under this Agreement. 

  

	 	D.	It has complied with all laws, rules and regulations having application to its business, including rules and regulations promulgated by the CFTC and NFA, the violation of which would
materially and adversely affect the business, financial condition or earnings of the Service Provider. 

  

	 	E.	There are no actions, suits or proceedings pending or, to the best knowledge of the Service Provider, threatened at law or in equity or before or by any Federal, state, municipal or other
governmental or regulatory department, commission, board, bureau, agency or instrumentality, or by any commodity or security exchange worldwide in which an adverse decision would materially and adversely affect the ability of the Service Provider to
comply with and perform it obligations under this Agreement, except as set forth in Exhibit A attached hereto. 

  

	 	F.	 This Agreement has been duly and validly authorized, executed and delivered and is a valid and binding agreement, enforceable against it, in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, moratorium, insolvency or other laws now or hereafter 

  

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enacted affecting the enforcement of creditors’ rights generally and by legal and equitable restrictions on the availability of equitable remedies, including
specific performance. 

  

	 	G.	The Service Provider will not use the name of the Managing Owner or any Trust in any documents or correspondence, other than those necessary for the Service Provider to perform the services
enumerated in Section 1 hereof, without the express written consent of such Trust and the Managing Owner, which consent shall not be unreasonably withheld. 

  
 The representations and warranties contained in this Section 4 shall continue during the term of this Agreement, and, if at any time
any event has occurred which would make or tend to make any of the foregoing not true, the Service Provider will notify the Managing Owner and each Trust in writing of such event. 
  
 5.  Indemnification 
  

	A.	The Managing Owner and the Trust shall indemnify and hold harmless the Service Provider, and its officers, directors, employees and affiliates, from any claims, suits, controversies,
judgments, losses, awards or settlements (including, without limitation, reasonable attorneys’ fees and expenses) caused by, or related to, (i) the Managing Owner’s or the Trust’s material breach of any applicable provision of this
Agreement; or (ii) the Managing Owner’s or the Trust’s negligence, intentional misconduct or violation of applicable law in performing any of the activities contemplated under this Agreement. Notwithstanding the preceding sentence, the
Managing Owner and the Trust shall be entitled to an appropriate offset for any indemnification obligations that are caused, in part or in whole, by Service Provider’s breach of any provision of this Agreement or Service Provider’s
negligence, intentional misconduct or violation of applicable law in performing any of the activities contemplated under this Agreement. 

  

	B.	The Service Provider shall indemnify and hold harmless the Managing Owner and the Trust, and their respective officers, directors, employees and affiliates, from any claims, suits,
controversies, judgments, losses, awards or settlements (including, without limitation, reasonable attorneys’ fees and expenses) caused by, or related to, (i) the Service Provider’s material breach of any applicable provision of this
Agreement; or (ii) the Service Provider’s negligence, intentional misconduct or violation of applicable law in performing any of the activities contemplated under this Agreement. Notwithstanding the preceding sentence, the Service Provider
shall be entitled to an appropriate offset for any indemnification obligations that are caused, in part or in whole, by the Managing Owner’s or the Trust’s breach of any provision of this Agreement or Service Provider’s negligence,
intentional misconduct or violation of applicable law in performing any of the activities contemplated under this Agreement. 

  
 6.  Limitation of the Service Provider’s Liability 
  
 The Service Provider shall incur no liability to any of the Trusts, the Managing Owner, any Limited Owner or any other party except to the extent caused by the
Service Provider’s negligence or willful misconduct in performing its obligations under this Agreement, or its material breach of any representation, warranty, covenant or term of this Agreement. 
  
 7.  Compensation 
  
 In consideration of the Service Provider’s services provided as specified herein, the Managing Owner will pay or cause to be paid
to the Service Provider a monthly service fee, which on an annual basis will equal 4% of the Net Asset Value of such Interests beneficially owned by Limited Owners of each Trust as of the applicable date of determination who hold such Interests
through accounts maintained with the Service Provider, provided that, as set out in Section 1, the Service Provider remains registered with the CFTC as a FCM and remains a member in good standing of the NFA in such capacity, and the registered
representatives of the Service Provider responsible for the servicing of each Interest which is the subject of the compensation paid to the Service Provider hereunder are registered with the CFTC and have passed either the Series 3 National
Commodity Futures Examination or the Series 31 Futures Managed Funds Examination. These payments should be made within a reasonable time following each month, but in no event later than 15 days following the end of each month. From the date of this
Agreement, and until further written notice from the Managing Owner, the Service Provider shall be paid such fees out of the brokerage and services fee that Prudential Equity Group, Inc., f/k/a Prudential Securities Incorporated (“PEG”)
receives from each Trust. 
  

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 8.  Miscellaneous 
  

	A.	This Agreement shall be binding upon and inure to the benefit of the parties’ respective successors and permitted assigns; provided that such successors and assigns shall be deemed to
make the same representations and warranties contained in this Agreement as their predecessors. 

  

	B.	This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to conflict of law principles. 

  

	C.	This Agreement constitutes the entire agreement among the parties hereto with respect to the matters referred to herein and supersedes any prior agreements, whether verbal or written, among
them. 

  

	D.	This Agreement may not be amended except by the express written consent of the parties hereto. No waiver of any provision of this Agreement may be implied from any course of dealing among the
parties or from any failure by any party to assert its rights under this Agreement on any occasion or series of occasions. 

  

	E.	If any provision of this Agreement, or the application of any such provision to any person or circumstance, shall be held to be inconsistent with any present or future law, ruling, or
regulation of any court or regulatory body, exchange, or board of trade having jurisdiction over the subject matter of this Agreement, such provision shall be deemed to be rescinded or modified in accordance with such law, ruling, rule or
regulation, and the remainder of this Agreement, or the application of such provisions to persons or circumstances other than those as to which it is held inconsistent, shall not be effected thereby. 

  

	F.	Any and all disputes arising out of or relating to this Agreement shall be settled by arbitration pursuant to the rules of the NFA in force at the time arbitration is demanded. Any award
rendered thereon by the arbitrators shall be final and binding on each and all the parties thereto and judgment may be entered in any court having jurisdiction thereof. 

  

	G.	This Agreement may not be assigned by any party without the prior written consent of the other parties; provided, however, each Trust and the Service Provider agree that the Managing
Owner may assign this Agreement in connection with the sale of, and to the acquiror of, all or substantially all of the business or assets of the Managing Owner, provided such acquiror expressly assumes and agrees in writing to perform this
Agreement in the same manner and to the same extent that the Managing Owner would be required to perform if no such transaction had taken place. For the avoidance of doubt, it shall not be considered an assignment of this Agreement by the Managing
Owner if the ownership of the Managing Owner is transferred to an affiliate of PEG, including, but not limited to, Prudential Financial Derivatives, LLC. 

  

	H.	This Agreement may be executed and delivered in counterparts, each of which will be deemed an original. 

  

	I.	Headings used in this Agreement are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Agreement.

  
 9.  Termination 
  
 This Agreement may be terminated by any party hereto upon 30 days’ prior written
notice to the other parties. Such notice shall have no effect on any outstanding rights, obligations or liabilities of the parties prior to the receipt of such notice and the effective date of termination of this Agreement. 
  
 10.  Notices 
  
 Any notice required to be delivered pursuant to this Agreement shall be in writing and shall be delivered by courier service, telex,
facsimile transmission, or other similar means and shall be effective upon receipt by the party to whom such notice shall be directed. 
  

 4 

 IN WITNESS WHEREOF, this Agreement has been executed for and on behalf of the undersigned with effect as of
the date written above. 
  

					
	World Monitor Trust—Series A, B and C	  	 
			
	By:	 	Prudential Securities Futures Management Inc.	  	 
			
	 	 	 By: /s/ Brian Martin
	  	 
	 	 	
	 	 
	 	 	 Brian Martin
 President
	  	 

  

					
	World Monitor Trust II—Series D, E and F	  	 
			
	By:	 	Prudential Securities Futures Management Inc.	  	 
			
	 	 	 By: /s/ Brian Martin
	  	 
	 	 	
	 	 
	 	 	 Brian Martin
 President
	  	 

  

					
	Diversified Futures Trust	  	 
			
	By:	 	Prudential Securities Futures Management Inc.	  	 
			
	 	 	 By: /s/ Brian Martin
	  	 
	 	 	
	 	 
	 	 	 Brian Martin
 President
	  	 

  

					
	Diversified Futures Trust II	  	 
			
	By:	 	Prudential Securities Futures Management Inc.	  	 
			
	 	 	 By: /s/ Brian Martin
	  	 
	 	 	
	 	 
	 	 	 Brian Martin
 President
	  	 

  

					
	Prudential Securities Strategic Trust	  	 
			
	By:	 	Prudential Securities Futures Management Inc.	  	 
			
	 	 	 By: /s/ Brian Martin
	  	 
	 	 	
	 	 
	 	 	 Brian Martin
 President
	  	 

  

					
	Prudential Securities Futures Management Inc.	  	 
			
	 	 	 By: /s/ Brian Martin
	  	 
	 	 	
	 	 
	 	 	 Brian Martin
 President
	  	 

  

					
	Wachovia Securities, LLC	  	 
			
	 	 	 By: /s/ Leah Wehinger
	  	 
	 	 	
	 	 
	 	 	 Leah Wehinger
 Managing Director
	  	 

  

 5

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