Document:

Unassociated Document

     

    FORM
      OF

     

    ADMINISTRATIVE
      AGENCY AGREEMENT

     

    THIS
      ADMINISTRATIVE AGENCY AGREEMENT (the
      “Agreement”)
      is
      made as of February 7, 2008 by and among BROWN
      BROTHERS HARRIMAN & CO.,
      a
      limited partnership organized under the laws of the State of New York (the
      “Administrator”),
      VICTORIA
      BAY ASSET MANAGEMENT, LLC,
      a
      Delaware limited liability company (the “General
      Partner”)
      and
UNITED
      STATES HEATING OIL FUND, LP,
      a
      limited partnership organized under the laws of the State of Delaware (the
      “Fund”).

     

    WITNESSETH:

     

    WHEREAS,
      the
      Fund is a limited partnership that is registered as a commodity
      pool;

     

    WHEREAS,
      the
      General Partner has exclusive responsibility for the management and control
      of
      the business and affairs of the Fund; and

     

    WHEREAS,
      the
      Fund and the General Partner desire to retain the Administrator to render
      certain services to the Fund and/or the General Partner, as the case may be,
      and
      the Administrator is willing to render such services. 

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and mutual covenants herein contained, the parties
      hereto agree as follows:

     

    1. Appointment
      of Administrator.
      The
      Fund and the General Partner hereby employ and appoint the Administrator to
      act
      as administrative agent on the terms set forth in this Agreement, and the
      Administrator accepts such appointment.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    2. Delivery
      of Documents.
      The
      Fund and the General Partner will on a continuing basis provide the
      Administrator with:

     

    2.1 properly
      certified or authenticated copies of resolutions of the General Partner’s Board
      of Directors (including Mr. Nicholas D. Gerber) authorizing the appointment
      of
      the Administrator as administrative agent of the Fund and approving this
      Agreement;

     

    2.2 a
      copy of
      the Fund’s most recent registration statement under the Securities Act of 1933,
      as amended;

     

    2.3 copies
      of
      all agreements between the Fund and its service providers, including without
      limitation, advisory, distribution and administration agreements and
      distribution and/or unitholder agreements;

     

    2.4 a
      copy of
      the Fund’s valuation procedures;

     

    2.5 a
      copy of
      the Fund’s Limited Partnership Agreement, as may be amended from time to
      time;

     

    2.6 a
      copy of
      the General Partner’s First Amended and Restated Limited Liability Company
      Agreement, as may be amended from time to time;

     

    2.7 any
      other
      documents or resolutions (including, but not limited to directions or
      resolutions of the General Partner’s Board of Directors, Management Directors,
      and/or Audit Committee) which relate to or affect the Administrator’s
      performance of its duties hereunder or which the Administrator may at any time
      reasonably request; and

     

    2.8 copies
      of
      any and all amendments or supplements to the foregoing. 

     

    3. Duties
      as Administrator. Subject
      to the supervision and direction of the General Partner’s Board of Directors,
      Management Directors and Audit Committee, the Administrator will perform the
      administrative services described in Appendix A hereto. Additional services
      may
      be provided by the Administrator upon the request of the Fund as mutually agreed
      from time to time. In performing its duties and obligations hereunder, the
      Administrator will act in accordance with the General Partner’s instructions as
      defined in Section 5 (“Instructions”). It is agreed and understood that the
      Administrator shall not be responsible for the Fund’s or the General Partner’s
      compliance with any applicable documents, laws or regulations, or for losses,
      costs or expenses arising out of the Fund’s or the General Partner’s failure to
      comply with said documents, laws or regulations or the Fund’s or the General
      Partner’s failure or inability to correct any non-compliance therewith. The
      Administrator shall in no event be required to take any action, which is in
      contravention of any applicable law, rule or regulation or any order or judgment
      of any court of competent jurisdiction.

     

    
      
        
        

      

      
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    3.1
       Records.
      The
      Administrator will maintain
      and retain such records as required by the Securities Exchange Act of 1934,
      as
      amended, the Rules of the American Stock Exchange, 17 C.F.R 4.23 (specifically,
      the records specified in 17 C.F.R. 4.23(a)(1) through (8), (10) through (12)
      and
      (b)(1)), and other applicable federal securities laws and created pursuant
      to
      the performance of the Administrator’s obligations under this Agreement. The
      Administrator will maintain such other records as requested by the Fund or
      the
      General Partner and received by the Administrator. The Administrator shall
      not
      be responsible for the accuracy and completeness of any records not created
      by
      the Administrator. The Administrator acknowledges that the records maintained
      and preserved by the Administrator pursuant to this Agreement are the property
      of the Fund and will be, at the Fund’s expense, surrendered promptly upon
      reasonable request. In performing its obligations under this Section, the
      Administrator may utilize micrographic and electronic storage media as well
      as
      independent third party storage facilities. 

     

    4. Duties
      of the Fund and the General Partner.
      The
      Fund and the General Partner shall notify the Administrator promptly of any
      matter affecting the performance by the Administrator of its services under
      this
      Agreement. Where the Administrator is providing fund accounting services
      pursuant to this Agreement, the Fund and the General Partner shall promptly
      notify the Administrator as to the accrual of liabilities of the Fund and of
      liabilities of the Fund not appearing on the books of account kept by the
      Administrator, as well as to the existence, status and proper treatment of
      reserves, if any, authorized by the Fund or the General Partner. The Fund and
      the General Partner agree to provide such information to the Administrator
      as
      may be requested under the banking and securities laws of the United States
      or
      other jurisdictions relating to “Know Your Customer” and money laundering
      prevention rules and regulations (collectively, the “KYC Requirements”). For
      purposes of this subsection, and in connection with all applicable KYC
      Requirements, the Fund is the “client” or “customer” of the
      Administrator. The
      Fund
      and the General Partner further represent that each will perform all obligations
      required under applicable KYC Requirements with respect to the Fund’s
“customers” (as defined in the KYC Requirements) and that, because these
      customers do not constitute “customers” or “clients” of the Administrator under
      such applicable rules and regulations, the Administrator is under no such
      similar obligations. 

     

    
      
        
        

      

      
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        5. 
          Instructions.
          

      

    

     

    5.1 The
      Administrator shall not be liable for, and shall be indemnified by the Fund
      against any and all losses, costs, damages or expenses arising from or as a
      result of, any action taken or omitted in reliance upon Instructions or upon
      any
      other written notice, request, direction, instruction, certificate or other
      instrument believed by it to be genuine and signed or authorized by the proper
      party or parties. A list of persons so authorized by the General Partner
      (“Authorized Persons”) is attached hereto as Appendix B and upon which the
      Administrator may rely until its receipt of notification to the contrary by
      the
      General Partner.

     

    5.2 Instructions
      shall include a written request, direction, instruction or certification signed
      or initialed on behalf of the Fund by one or more Authorized Persons.

     

    5.3 Telephonic
      or other oral instructions or instructions given by telefax transmission may
      be
      given by any one of the above Authorized Persons and will also be considered
      Instructions if the Administrator believes them to have been given by a person
      authorized to give such Instructions with respect to the transaction involved.
      

     

    5.4 With
      respect to telefax transmissions, the Fund and the General Partner hereby
      acknowledge that (i) receipt of legible instructions cannot be assured, (ii)
      the
      Administrator cannot verify that authorized signatures on telefax instructions
      are original, and (iii) the Administrator shall not be responsible for losses
      or
      expenses incurred through actions taken in reliance on such telefax
      instructions. The Fund and the General Partner agree that such telefax
      instructions shall be conclusive evidence of the Fund’s/General Partner’s
      Instruction to the Administrator to act or to omit to act.

     

    5.5 Instructions
      given orally will not be confirmed in writing and the lack of such confirmation
      shall in no way affect any action taken by the Administrator in reliance upon
      such oral Instructions. The Fund and the General Partner authorize the
      Administrator to tape record any and all telephonic or other oral Instructions
      given to the Administrator by or on behalf of the Fund (including any of the
      Fund’s or the General Partner’s officers, directors, trustees, employees or
      agents or any investment manager or adviser or person or entity with similar
      responsibilities which is authorized to give Instructions on behalf of the
      Fund
      to the Administrator.)

     

    
      
        
        

      

      
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    6. Expenses
      and Compensation.
      For the
      services to be rendered and the facilities to be furnished by the Administrator
      as provided for in this Agreement, the Fund shall pay the Administrator rendered
      pursuant to this Agreement a fee based on such fee schedule as may from time
      to
      time be agreed upon in writing among the General Partner, Fund and the
      Administrator. Additional services performed by the Administrator as requested
      by the Fund shall be subject to additional fees as mutually agreed from time
      to
      time. In addition to any such fees, the Administrator shall bill the Fund
      separately for any out-of-pocket disbursements of the Administrator based on
      an
      out-of-pocket disbursement schedule as may from time to time be agreed upon
      in
      writing among the General Partner, the Fund and the Administrator. The initial
      fee schedule and out of pocket disbursement schedule are attached as Appendix
      D
      to this Agreement. The foregoing fees and disbursements shall be billed to
      the
      Fund by the Administrator and shall be paid promptly by wire transfer or other
      appropriate means to the Administrator. 

     

    7. Standard
      of Care.
      The
      Administrator shall be held to the exercise of reasonable care and diligence
      in
      carrying out the provisions of this Agreement, provided that the Administrator
      shall not thereby be required to take any action which is in contravention
      of
      any applicable law, rule or regulation or any order or judgment of any court
      of
      competent jurisdiction. 

     

    8. General
      Limitations on Liability.
      The
      Administrator shall incur no liability with respect to any telecommunications,
      equipment or power failures, or any failures to perform or delays in performance
      by postal or courier services or third-party information providers (including,
      without limitation those listed on Appendix C). 

     

    8.1 The
      Administrator shall also incur no liability under this Agreement if the
      Administrator or any agent or entity utilized by the Administrator shall be
      prevented, forbidden or delayed from performing, or omits to perform, any act
      or
      thing which this Agreement provides shall be performed or omitted to be
      performed, by reason of causes or events beyond its control, including but
      not
      limited to: 

     

    
      
        
        

      

      
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    8.1.1 any
      Sovereign Event. A “Sovereign Event” shall mean any nationalization;
      expropriation; devaluation; revaluation; confiscation; seizure; cancellation;
      destruction; strike; act of war, terrorism, insurrection or revolution; or
      any
      other act or event beyond the Administrator’s control; 

     

    8.1.2 any
      provision of any present or future law, regulation or order of the United States
      or any state thereof, or of any foreign country or political subdivision
      thereof, or of any securities depository or clearing agency; and 

     

    8.1.3 any
      provision of any order or judgment of any court of competent jurisdiction.
      

     

    8.2 The
      Administrator shall not be held accountable or liable for any losses, damages
      or
      expenses the General Partner, the Fund, the Fund’s commodity broker, the Fund’s
      commodity trading advisor (if any), any unitholder or former unitholder of
      the
      Fund or any other person may suffer or incur arising from acts, omissions,
      errors or delays of the Administrator in the performance of its obligations
      and
      duties as provided in Section 3 hereof, including without limitation any error
      of judgment or mistake of law, except a loss, damage or expense directly
      resulting from the Administrator’s willful malfeasance, bad faith or negligence
      in the performance of such Administrator’s obligations and duties. 

     

    
      
        9. 
          Specific
          Limitations on Liability. In
          addition to, and without limiting the application of the general limitations
          on
          liability contained in Section 8, above, the following specific limitations
          on
          the Administrator’s liability shall apply to the particular administrative
          services set forth on Appendix A hereto. 

      

    

     

    9.1 Liability
      for Fund Accounting Services. Without
      limiting the provisions in Section 8 hereof, the Administrator’s liability for
      acts, omissions, errors or delays relating to its fund accounting obligations
      and duties shall be limited to the amount of any expenses associated with a
      required recalculation of net asset value per unit (“NAV”) or any direct damages
      suffered by unitholders in connection with such recalculation. The
      Administrator’s liability or accountability for such acts, omissions, errors or
      delays shall be further subject to clauses 9.1.1 through 9.1.4 below.

     

    
      
        
        

      

      
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    9.1.1 The
      parties hereto acknowledge that the Administrator’s causing an error or delay in
      the determination of NAV may, but does not in and of itself, constitute
      negligence or reckless or willful misconduct. The parties further acknowledge
      that in accordance with industry practice the liability of the Administrator
      for
      fund accounting services shall accrue and the recalculation of NAV shall be
      performed in accordance with this Section 9.1 only with regard to errors in
      the
      calculation of the NAV that are (i) greater than or equal to $.01 per unit
      of
      the Fund and (ii) greater than or equal to 1⁄2% of the total net assets of the
      Fund.

     

    9.1.2 In
      no
      event shall the Administrator be liable or responsible to the General Partner,
      the Fund, the Fund’s commodity broker, the Fund’s commodity trading advisor (if
      any), any present or former unitholder of the Fund, or any other person for
      any
      error or delay that continued or was undetected after the date of an audit
      performed by the certified public accountants employed by or on behalf of the
      Fund if, in the exercise of reasonable care in accordance with generally
      accepted accounting standards, such accountants should have become aware of
      such
      error or delay in the course of performing such audit. 

     

    9.1.3 The
      Administrator shall not be held accountable or liable to the General Partner,
      the Fund, the Fund’s commodity broker, the Fund’s commodity trading advisor (if
      any), any unitholder or former unitholder of the Fund or any other person for
      any delays or losses, damages or expenses any of them may suffer or incur
      resulting from (i) the Administrator’s usage of a third party service provider
      for the purpose of storing records delivered to the Administrator by or on
      behalf of the Fund and which the Administrator did not create in the performance
      of its obligations hereunder; (ii) the Administrator’s failure to receive timely
      and suitable notification concerning quotations or corporate actions relating
      to
      or affecting portfolio securities of the Fund; or (iii) any errors in the
      computation of NAV based upon or arising out of quotations or information as
      to
      corporate actions if received by the Administrator either (a) from a source
      which the Administrator was authorized to rely upon (including those sources
      listed on Appendix C), or (b) from a source which in the Administrator’s
      reasonable judgment was as reliable a source for such quotations or information
      as such authorized sources; or (iv) any errors in the computation of NAV as
      a
      result of relevant information known to the General Partner, the Fund, a futures
      commission merchant, securities brokers or dealers, or any of the Fund’s other
      service providers including futures commission merchants in contract with the
      Fund, which would impact the calculation of NAV, but was not communicated to
      the
      Administrator. To the extent that Fund assets are not in the custody of the
      Administrator, the Administrator may conclusively rely on any reporting in
      connection with such assets provided to the Administrator by a third party
      on
      behalf of the Fund, including, without limitation any futures commission
      merchant.

     

    9.1.4 In
      the
      event of any error or delay in the determination of such NAV for which the
      Administrator may be liable, the General Partner, the Fund and the Administrator
      will consult and make good faith efforts to reach agreement on what actions
      should be taken in order to mitigate any loss suffered by the Fund or its
      present or former unitholders, in order that the Administrator’s exposure to
      liability shall be reduced to the extent possible after taking into account
      all
      relevant factors and alternatives. It is understood that in attempting to reach
      agreement on the actions to be taken or the amount of the loss which should
      appropriately be borne by the Administrator, the General Partner, the Fund
      and
      the Administrator will consider such relevant factors as the amount of the
      loss
      involved, the Fund’s/General Partner’s desire to avoid loss of unitholder
      goodwill, the
      fact
      that other persons or entities could have been reasonably expected to have
      detected the error sooner than the time it was actually discovered, the
      appropriateness of limiting or eliminating the benefit which unitholders or
      former unitholders might have obtained by reason of the error, and the
      possibility that other parties providing services to the Fund might be induced
      to absorb a portion of the loss incurred. 

     

    
      
        10. 
          Indemnification. 

      

    

     

    10.1 The
      General Partner and the Fund hereby agree to indemnify and hold harmless the
      Administrator, its partners, stockholders, members, directors, officers and
      employees and any subsidiary or affiliate of the foregoing (“Affiliate”), and
      the successors and assigns of all of the foregoing persons, against any and
      all
      losses, claims, damages, liabilities or expenses (including reasonable counsel
      fees and expenses) resulting from any act, omission, error or delay or any
      claim, demand, action or suit, in connection with or arising out of performance
      of its obligations and duties under this Agreement, not resulting from the
      willful malfeasance, bad faith or negligence of the Administrator in the
      performance of such obligations and duties. The provisions of this Section
      10
      shall survive the termination of this Agreement.

     

    
      
        
        

      

      
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    10.1.1 If
      any
      action, suit or proceeding (each, a “Proceeding”) is brought against the
      Administrator or any such person in respect of which indemnity may be sought
      against the General Partner pursuant to the foregoing subsection, the
      Administrator or such person shall promptly notify the General Partner in
      writing of the institution of such Proceeding and the General Partner shall
      assume the defense of such Proceeding, including the employment of counsel
      reasonably satisfactory to such indemnified party and payment of all fees and
      expenses; provided, however, that the omission to so notify the General Partner
      shall not release the General Partner from any liability which it may have
      to
      the Administrator or any such person except to the extent that it has been
      materially prejudiced by such failure and has not otherwise learned of such
      Proceeding. The Administrator or such person shall have the right to employ
      its
      own counsel in any such case, but the fees and expenses of such counsel shall
      be
      at the expense of the Administrator or of such person unless the employment
      of
      such counsel shall have been authorized in writing by the General Partner in
      connection with the defense of such Proceeding or the General Partner shall
      not
      have, within a reasonable period of time in light of the circumstances, employed
      counsel to have charge of the defense of such Proceeding or such indemnified
      party or parties shall have reasonably concluded that there may be defenses
      available to it or them which are different from, additional to or in conflict
      with those available to the General Partner (in which case the General Partner
      shall not have the right to direct the defense of such Proceeding on behalf
      of
      the indemnified party or parties), in any of which events such fees and expenses
      shall be borne by the General Partner and paid as incurred (it being understood,
      however, that the General Partner shall not be liable for the expenses of more
      than one separate counsel (in addition to any local counsel) in any one
      Proceeding or series of related Proceedings in the same jurisdiction
      representing the indemnified parties who are parties to such Proceeding).

     

    10.1.2 The
      General Partner shall not be liable for any settlement of any Proceeding
      effected without the General Partner’s written consent but if settled with the
      General Partner’s written consent, the General Partner agrees to indemnify and
      hold harmless the Administrator and any such person from and against any loss
      or
      liability by reason of such settlement. Notwithstanding the foregoing sentence,
      if at any time an indemnified party shall have requested an indemnifying party
      to reimburse the indemnified party for fees and expenses of counsel as
      contemplated by the second sentence of this subsection, then the indemnifying
      party agrees that it shall be liable for any settlement of any Proceeding
      effected without its written consent if (i) such settlement is entered into
      more
      than 60 Business Days (defined as any day other than a day on which the American
      Stock Exchange (“AMEX”), the New York Mercantile Exchange (“NYMEX”) or the New
      York Stock Exchange (“NYSE”) is closed for regular trading
      (each a
“Business Day”)),
      after
      receipt by such indemnifying party of the aforesaid request, (ii) such
      indemnifying party shall not have fully reimbursed the indemnified party in
      accordance with such request prior to the date of such settlement and (iii)
      such
      indemnified party shall have given the indemnifying party at least 30 Business
      Days’ prior notice of its intention to settle. No indemnifying party shall,
      without the prior written consent of the indemnified party, effect any
      settlement of any pending or threatened Proceeding in respect of which any
      indemnified party is or could have been a party and indemnity could have been
      sought hereunder by such indemnified party, unless such settlement includes
      an
      unconditional release of such indemnified party from all liability on claims
      that are the subject matter of such Proceeding and does not include an admission
      of fault, culpability or a failure to act, by or on behalf of such indemnified
      party.

     

    
      
        
        

      

      
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    10.2 Subject
      to Sections 7, 8 and 9 of this Agreement, the Administrator agrees to indemnify
      and hold harmless the General Partner and the Fund, its partners, stockholders,
      members, directors, officers and employees and any Affiliate of the foregoing,
      and the successors and assigns of all of the foregoing persons, against any
      and
      all losses, claims, damages, liabilities or expenses (including reasonable
      counsel fees and expenses) resulting from any act, omission, error or delay
      or
      any claim, demand, action or suit, in connection with or arising out of
      performance of its obligations and duties under this Agreement, resulting from
      the willful malfeasance, bad faith or negligence of the Administrator in the
      performance of such obligations and duties. The provisions of this Section
      10
      shall survive the termination of this Agreement.

     

    10.2.1 If
      any
      Proceeding is brought against the General Partner or any such person in respect
      of which indemnity may be sought against the Administrator pursuant to the
      foregoing subsection, the General Partner or such person shall promptly notify
      the Administrator in writing of the institution of such Proceeding and the
      Administrator shall assume the defense of such Proceeding, including the
      employment of counsel reasonably satisfactory to such indemnified party and
      payment of all fees and expenses; provided, however, that the omission to so
      notify the Administrator shall not relieve the Administrator from any liability
      which it may have to the General Partner or any such person except to the extent
      that it has been materially prejudiced by such failure and has not otherwise
      learned of such Proceeding. The General Partner or such person shall have the
      right to employ its own counsel in any such case, but the fees and expenses
      of
      such counsel shall be at the expense of the General Partner or of such person
      unless the employment of such counsel shall have been authorized in writing
      by
      the Administrator in connection with the defense of such Proceeding or the
      Administrator shall not have, within a reasonable period of time in light of
      the
      circumstances, employed counsel to have charge of the defense of such Proceeding
      or such indemnified party or parties shall have reasonably concluded that there
      may be defenses available to it or them which are different from, additional
      to
      or in conflict with those available to the Administrator (in which case the
      General Partner shall not have the right to direct the defense of such
      Proceeding on behalf of the indemnified party or parties), in any of which
      events such fees and expenses shall be borne by the Administrator and paid
      as
      incurred (it being understood, however, that the Administrator shall not be
      liable for the expenses of more than one separate counsel (in addition to any
      local counsel) in any one Proceeding or series of related Proceedings in the
      same jurisdiction representing the indemnified parties who are parties to such
      Proceeding). 

     

    
      
        
        

      

      
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    10.2.2 The
      Administrator shall not be liable for any settlement of any Proceeding effected
      without the Administrator’s written consent but if settled with the
      Administrator’s written consent, the Administrator agrees to indemnify and hold
      harmless the General Partner and any such person from and against any loss
      or
      liability by reason of such settlement. Notwithstanding the foregoing sentence,
      if at any time an indemnified party shall have requested an indemnifying party
      to reimburse the indemnified party for fees and expenses of counsel as
      contemplated by the second sentence of this subsection, then the indemnifying
      party agrees that it shall be liable for any settlement of any Proceeding
      effected without its written consent if (i) such settlement is entered into
      more
      than 60 Business Days after receipt by such indemnifying party of the aforesaid
      request, (ii) such indemnifying party shall not have fully reimbursed the
      indemnified party in accordance with such request prior to the date of such
      settlement and (iii) such indemnified party shall have given the indemnifying
      party at least 30 Business Days’ prior notice of its intention to settle. No
      indemnifying party shall, without the prior written consent of the indemnified
      party, effect any settlement of any pending or threatened Proceeding in respect
      of which any indemnified party is or could have been a party and indemnity
      could
      have been sought hereunder by such indemnified party, unless such settlement
      includes an unconditional release of such indemnified party from all liability
      on claims that are the subject matter of such Proceeding and does not include
      an
      admission of fault, culpability or a failure to act, by or on behalf of such
      indemnified party.

     

    11. Reliance
      by the Administrator on Opinions of Counsel and Opinions of Certified Public
      Accountants. 

     

    The
      Administrator may consult with its counsel or the Fund/General Partner’s counsel
      in any case where so doing appears to the Administrator to be necessary or
      desirable. The Administrator shall not be considered to have engaged in any
      misconduct or to have acted negligently and shall be without liability in acting
      upon the advice of its counsel or of the Fund’s/General Partner’s
      counsel.

     

    The
      Administrator may consult with a certified public accountant or the Fund’s
      Treasurer (or persons performing such function) in any case where so doing
      appears to the Administrator to be necessary or desirable. The Administrator
      shall not be considered to have engaged in any misconduct or to have acted
      negligently and shall be without liability in acting upon the advice of such
      certified public accountant or of the Fund’s Treasurer or persons performing
      such function.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    12. Termination
      of Agreement. This
      Agreement may be terminated by any of the parties in accordance with the
      provisions of this Section 12.

     

    12.1 This
      Agreement shall have an initial term of two (2) years from the date hereof.
      Thereafter, this Agreement shall automatically renew for successive one (1)
      year
      periods unless any party terminates this Agreement by written notice effective
      no sooner than seventy-five (75) days following the date that notice to such
      effect shall be delivered to the other parties at their address set forth
      herein. Notwithstanding the foregoing provisions, any party may terminate this
      Agreement at any time (a) for cause, which is a material breach of the Agreement
      not cured within sixty (60) days of written notice of such breach, in which
      case
      termination shall be effective upon receipt of written notice by the
      non-terminating parties, or (b) upon thirty (30) days’ written notice to
      the other parties in the event that a party is adjudged bankrupt or insolvent,
      or there shall be commenced against such party a case under any applicable
      bankruptcy, insolvency, or other similar law now or hereafter in effect. In
      the
      event a termination notice is given by a party hereto, all expenses associated
      with the movement of records and materials and the conversion thereof shall
      be
      paid by the Fund for which services shall cease to be performed hereunder.
      The
      Administrator shall be responsible for completing all actions in progress when
      such termination notice is given unless otherwise agreed. 

     

    12.2. Upon
      termination of this Agreement in accordance with this Section 12, the Fund
      may
      request the Administrator to promptly deliver to the Fund or to any designated
      third party all records created and maintained by the Administrator pursuant
      to
      Section 3.1 of this Agreement, as well as any Fund records maintained but not
      created by the Administrator. If such request is provided in writing by the
      Fund
      to the Administrator within seventy-five (75) days of the date of termination
      of
      the Agreement, the Administrator shall provide to the Fund a certification
      that
      all records created by the Administrator pursuant to its obligations under
      Section 3.1 of this Agreement are accurate and complete. After seventy-five
      (75)
      days of the date of termination of this Agreement, no such certification will
      be
      provided to the Fund by the Administrator and the Administrator is under no
      further obligation to ensure that records created by the Administrator pursuant
      to Section 3.1 of this Agreement are maintained in a form that is accurate
      or
      complete. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    13. Confidentiality
      and Privacy.

     

    13.1 The
      parties hereto agree that each shall treat confidentially the terms and
      conditions of this Agreement and all information provided by each party to
      the
      other regarding its business and operations. All confidential information
      provided by a party hereto shall be used by any other party hereto solely for
      the purpose of rendering or obtaining services pursuant to this Agreement and,
      except as may be required in carrying out this Agreement, shall not be disclosed
      to any third party without the prior consent of such providing party. The
      foregoing shall not be applicable to any information that is publicly available
      when provided or thereafter becomes publicly available other than through a
      breach of this Agreement, or that is required to be disclosed by or to any
      regulatory authority, any auditor of the parties hereto, or by judicial or
      administrative process or otherwise by applicable law. 

     

    13.2 In
      the
      course of carrying out its obligations under this Agreement, Administrator
      shall
      maintain physical, procedural and electronic safeguards to protect information
      regarding the Fund and its investors that Administrator has obtained or to
      which
      the Administrator
      has
      gained access.

     

    14. Tape-recording.
      The
      parties consent to recording of any and all telephonic or other oral
      instructions. This authorization will remain in effect until and unless revoked
      by the Fund, the General Partner or the Administrator in writing. Each party
      further agrees to solicit valid written or other consent from any of its
      employees, officers, directors or agents with respect to telephone
      communications to the extent such consent is required by applicable
      law.

     

    15. Procedures. Procedures
      applicable to the Administrator’s services to be performed hereunder may be
      established from time to time by agreement among the Fund, the General Partner
      and the Administrator. The Administrator shall have the right to utilize any
      unitholder accounting and record-keeping systems that, in its opinion, enables
      it to perform any services to be performed hereunder.

     

    16. Entire
      Agreement; Amendment.
      This
      Agreement constitutes the entire understanding and agreement of the parties
      hereto and supersedes any other oral or written agreements heretofore in effect
      between the parties with respect to the subject matter hereof. No provision
      of
      this Agreement may be amended or terminated except by a statement in writing
      signed by the party against which enforcement of the amendment or termination
      is
      sought. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    17. Severability.
      In the
      event any provision of this Agreement is determined to be void or unenforceable,
      such determination shall not affect the remainder of this Agreement, which
      shall
      continue to be in force. 

     

    18. Headings.
      The
      section headings in this Agreement are for the convenience of reference only
      and
      shall not modify, define, expand or limit any of the terms or provisions
      thereof.

     

    19. Governing
      Law.
      This
      Agreement shall be governed by and construed according to the laws of the State
      of New York without giving effect to conflicts of law provisions thereof and
      each of the parties hereto irrevocably consents to the exclusive jurisdiction
      of
      the United States District Court for the Southern District of New York or if
      that court lacks or declines to exercise subject matter jurisdiction, the
      Supreme Court of the State of New York, New York County. The General Partner
      and
      the Fund irrevocably waive any objection each may now or hereafter have to
      the
      laying of venue of any action or proceeding in any of the aforesaid courts
      and
      any claim that any such action or proceeding has been brought in an inconvenient
      forum. Furthermore, each party hereto irrevocably waives any right that it
      may
      have to trial by jury in any action, proceeding or counterclaim arising out
      of
      or related to this Agreement or the services contemplated hereby. 

     

    20. Notices.
      Notices
      and other writings delivered or mailed postage prepaid to the General Partner
      and Fund shall be addressed to the Fund/General Partner at Victoria Bay Asset
      Management, LLC, c/o Nicholas D. Gerber, P.O. Box 6919, Moraga, CA 94570, or
      such other address as the General Partner or the Fund may have designated to
      the
      Administrator in writing, or to the Administrator at 40 Water Street, Boston,
      MA
      02109, Attention: Manager, Fund Administration Department, or to such other
      address as the Administrator may have designated to the General Partner and
      the
      Fund in writing, shall be deemed to have been properly delivered or given
      hereunder to the respective addressee.

     

    21. Binding
      Effect; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the General Partner,
      the Fund and the Administrator and their respective successors and assigns,
      provided that no party hereto may assign this Agreement or any of its rights
      or
      obligations hereunder without the written consent of the other parties. Each
      party agrees that only the parties to this Agreement and/or their successors
      in
      interest shall have a right to enforce the terms of this Agreement. Accordingly,
      no client of the General Partner, unitholder of the Fund or other third party
      shall have any rights under this Agreement and such rights are explicitly
      disclaimed by the parties.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    22. Counterparts.
      This
      Agreement may be executed in any number of counterparts each of which shall
      be
      deemed to be an original. This Agreement shall become effective when one or
      more
      counterparts have been signed and delivered by each of the parties. A photocopy
      or telefax of this Agreement shall be acceptable evidence of the existence
      of
      this Agreement and the Administrator shall be protected in relying on the
      photocopy or telefax until the Administrator has received the original of this
      Agreement.

     

    23. Exclusivity.
      The
      services furnished by the Administrator hereunder are not to be deemed
      exclusive, and the Administrator shall be free to furnish similar services
      to
      others. 

     

    24. Authorization.
      The
      General Partner hereby represents and warrants that the Management Directors
      of
      its Board of Directors including Mr. Nicholas D. Gerber have authorized the
      execution and delivery of this Agreement and that Authorized Persons of the
      General Partner and the Fund have signed this Agreement, Appendices A, B and
      C
      and the fee schedule hereto.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered by their duly authorized officers as of the date first
      written above.

     

    The
      undersigned acknowledges that (I/we) have received a copy of this
      document.

    
      	 	 	 
	 	BROWN
              BROTHERS HARRIMAN & CO.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

              Date:

            

    

    

    
      	 	 	 
	 	
              UNITED
                STATES HEATING OIL FUND, LP

              By: Victoria Bay Asset Management, LLC, as General
                Partner 

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              

              Name: Nicholas D. Gerber

              Title:
                President and Management Director

              
                Date:

              

            

    

     

    
      	 	 	 
	 	VICTORIA
              BAY ASSET MANAGEMENT, LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                Nicholas D. Gerber

              Title:
                President and Management Director

              Date:

            

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

     

    TO
      ADMINISTRATIVE AGENCY AGREEMENT

     

     

    ADMINISTRATIVE
      SERVICES OF THE ADMINISTRATIVE AGENT

     

    Dated
      as
      of ________________________

     

     

    Fund
      Accounting Services

     

    The
      Administrator will provide the following fund accounting services to the Fund
      on
      any Business Day: transaction processing and review, custodial reconciliation,
      securities pricing and investment accounting.

     

    Transaction
      Processing and Review.
      The
      Administrator shall input and reconcile the Fund’s investment activity including
      with respect to:

     

    
      	 	
              ·

            	
              Investment
                taxlots

            

    

    
      	 	
              ·

            	
              Income

            

    

    
      	 	
              ·

            	
              Dividends

            

    

    
      	 	
              ·

            	
              Principal
                paydowns

            

    

    
      	 	
              ·

            	
              Capital
                activity

            

    

    
      	 	
              ·

            	
              Expense
                accruals

            

    

    
      	 	
              ·

            	
              Cash
                activity

            

    

    
      	 	
              ·

            	
              Corporate
                Reorganizations

            

    

     

    Custodial
      Reconciliation.
      The
      Administrator shall reconcile the following positions of the Fund against the
      records of the Custodian:

     

    
      	 	
              ·

            	
              Securities,
                Futures and Over-the-Counter Contract (“OTC”)
                holdings

            

    

    
      	 	
              ·

            	
              Cash
                including cash transfers, fees assessed and other investment related
                cash
                transactions

            

    

    
      	 	
              ·

            	
              Trade
                settlements

            

    

     

    Securities,
      Futures and OTC Valuation.
      Using
      the Valuation Procedures set forth in Appendix D, the Administrator shall update
      each security, Futures and OTC position of the Fund as to the
      following:

     

    
      	 	
              ·

            	
              Market
                prices obtained from approved sources including those listed on Appendix
                C
                or Fair Valuations obtained from an Authorized Person of the
                Fund

            

    

    
      	 	
              ·

            	
              Mark
                to market of non-base receivables/payables utilizing approved foreign
                exchange quotations as quoted in Appendix
                C

            

    

    
      	 	
              ·

            	
              Mark
                to market of non-base currency positions utilizing the approved sources
                quoted in Appendix C or Fair Valuations obtained from an Authorized
                Person
                of the Fund

            

    

     

    Investment
      Accounting.
      The
      Administrator shall provide the following investment accounting services to
      each
      Portfolio:

     

    
      	 	
              ·

            	
              Amortization/accretion
                at the individual tax lot level

            

    

    
      	 	
              ·

            	
              General
                ledger entries

            

    

    
      	 	
              ·

            	
              Book
                value calculations

            

    

    
      	 	
              ·

            	
              Trade
                Date + 1 accounting

            

    

    
      	 	
              ·

            	
              Calculation
                of Net Asset Value Per Unit (“NAV”)
                as
                of the earlier of 4:00 p.m. New York time or the close of trading
                on the
                New York Stock Exchange,
                and published shortly after the close of trading on the
                AMEX

            

    

     

    Financial
      Reporting Services

     

    
      	 	
              ·

            	
              The
                Administrator shall accumulate information for and prepare
                

            

    

     

    
      	·  	
              Within
                a 30 day period following the end of the Fund’s required monthly reporting
                period, an Account Statement in compliance with the requirements
                of CFTC
                Rule §4.22(a), including a Statement of Income (Loss) and a Statement of
                Changes in Net Asset Value; such preparation includes the coordination
                and
                review of all printer and author edits. The Fund and/or General Partner
                shall make arrangements for the printing and mailing of the Account
                Statements. 

            

       

      	·  	
              Within
                a 45 day production cycle, or
                shorter time period as required by the U.S.
                Securities and Exchange Commission (the
                “SEC”)
                and communicated to the Administrator by the Fund and/or the General
                Partner, one
                first fiscal quarter report of the Fund, one second fiscal quarter
                report
                of the Fund and one third fiscal quarter report of the Fund, each
                on Form
                10-Q.

            

    

    
       

      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

      
        	·  	
                Within
                  a 90 day production cycle, or shorter time period as required by
                  the
                  SEC and
                  communicated to the Administrator by the Fund and/or General Partner,
                  one
                  annual report of the Fund on Form 10-K per fiscal year, such preparation
                  includes the coordination of all printer and author edits, the
                  review of
                  printer drafts and the coordination of the audit of the Fund by
                  its
                  independent public accountant (e.g. manage open items lists, host
                  weekly
                  audit meeting, etc.). The Fund and/or General Partner shall make
                  arrangements for the printing and mailing of the annual report
                  on Form
                  10-K.

              

         

        	·  	
                Within
                  90 days after the end of the Fund’s fiscal year, an Annual Report of the
                  Fund in compliance with the requirements of the NFA and CFTC Rule
                  §4.22(c); such preparation includes the coordination of all printer
                  and
                  author edits, the review of printer drafts and the coordination
                  of the
                  audit of the Fund by its independent public accountant (e.g. manage
                  open
                  items lists, host weekly audit meeting, etc.). The Fund and/or
                  General
                  Partner shall make arrangements for the printing and mailing of
                  the Annual
                  Report.

              

      

       

    

    
      	 	
              ·

            	
              Upon
                review and approval of each above-mentioned report by the General
                Partner’s Treasurer and/or Chief Financial Officer (or such person
                performing such functions), the Administrator shall Edgarize and
                file such
                reports with the SEC, CFTC and/or NFA as required, including any
                applicable executive officer certifications or other exhibits to
                such
                reports 

            

    

     

    The
      Administrator shall assist the Fund and/or the General Partner in preparing
      Fund
      press releases with respect to interim statements and quarterly results and
      transmitting such press releases to the American Stock Exchange and such other
      entities as requested by the Fund or the General Partner.

     

    Assistant
      Treasurer Services

     

    The
      Administrator shall perform the following services as requested by the General
      Partner’s Treasurer (or person performing such function):

     

    
      	 	
              ·

            	
              Prepare
                and obtain authorization of Fund expense invoices on a bi-monthly
                basis

            

    

    
      	 	
              ·

            	
              Prepare
                the Fund’s quarterly budget and make recommendations for adjustments as
                appropriate

            

    

    
      	 	
              ·

            	
              Prepare
                a monthly expense pro forma for the
                Fund

            

    

    
      	 	
              ·

            	
              Provide
                consultative services with respect to financial matters of the Fund
                as may
                be requested and agreed to among the Fund, the General Partner and
                the
                Administrator from time to time

            

    

     

    Corporate
      Secretarial Services 

     

    The
      Administrator shall perform the following secretarial services:

     

    
      	 	
              ·

            	
              Provide
                an “Assistant Secretary” who may be approved as an officer of the Fund by
                the Board of Directors

            

    

    
      	 	
              ·

            	
              Maintain
                a calendar for Board and Audit Committee matters/approvals in the
                form of
                Exhibit
                A 

            

    

    
      	 	
              ·

            	
              Prepare
                quarterly Board and Audit Committee meeting materials, including
                notices,
                scripts, agendas, resolutions, memoranda, minutes, and mail the materials
                to the Board and such other persons as instructed by the General
                Partner

            

    

    
      	 	
              ·

            	
              Attend
                quarterly Board and Audit Committee meetings, take minutes of the
                meetings, make presentations as required and follow up on matters
                raised
                at the meetings. In
                the event that the Administrator is asked to perform secretarial
                services
                for more than four quarterly Board or Audit Committee meetings per
                calendar year, the Fund will be assessed special meeting fees. Fees
                may
                range between $2,500 and $10,000, depending upon the complexity of
                the
                meeting materials and discussion and the location of the meeting.
                Out-of-pocket expenses associated with the production and mailing
                of all
                Board and committee meeting materials, as well as travel expenses
                associated with in-person attendance at meetings, will be charged
                to the
                Fund

            

    

    
      	 	
              ·

            	
              Prepare
                the annual directors and officers questionnaires and distribute the
                questionnaires to the directors and officers of the General
                Partner

            

    

     

    Regulatory
      Support Services

     

    The
      Administrator shall perform the following regulatory services for the
      Fund:

     

    
      	 	
              ·

            	
              Maintain
                a calendar for all SEC, CFTC, NFA and AMEX regulatory matters in
                the form
                of Exhibit
                B;
                provided that the Fund and/or General Partner shall notify the
                Administrator of additional regulatory matters to be added to such
                calendar as soon as practicable

            

    

     

    The
      Administrator shall perform the following additional regulatory services for
      the
      Fund:

     

    
      	 	
              ·

            	
              Prepare
                the materials for and attend one unitholder meeting per calendar
                year
                (including preparation of the proxy statement, notice and other
                solicitation materials and filing such materials with the SEC and
                taking
                minutes of the meeting), at the Fund’s
                request

            

    

    
      	 	
              ·

            	
              Coordinate
                with the Fund’s transfer agent or solicitor in monitoring the unitholder
                vote solicitation and tabulation for one unitholder meeting per calendar
                year, at the Fund’s request

            

    

    
      	 	
              ·

            	
              Prepare
                and file the following regulatory
                notices/forms/reports:

            

    

     

    
      	·  	
              With
                the SEC, periodic and annual reports as specified in “Financial Reporting
                Services” above, Forms 3, 4 and 5 and Schedules 13D and 13G for the
                officers and directors of the General Partner and such other persons
                as
                requested by the Fund

            

       

      	·  	
              With
                the NFA and SEC, Current Reports on Form 8-K as circumstances
                warrant.

            

       

      	·  	
              With
                the AMEX, such notices/forms as agreed to among the Fund, the General
                Partner and the Administrator

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Transfer
      Agency Services

     

    The
      Administrator shall perform the following transfer agency services:

     

    I. Issuance
      and Redemption of Fund Units. It is agreed and understood that the Fund, and
      the
      Administrator on the Fund’s behalf, shall issue and redeem Units of the Fund in
      blocks of 100,000 Units (“Creation Baskets” and “Redemption Baskets,”
respectively) to and from such persons as are identified by the Fund as
“Authorized Purchasers” or “Authorized Participants.”

     

    A. Pursuant
      to such purchase orders that the Administrator as the Index Receipt Agent shall
      receive from the ALPS Distributors, Inc. (“Marketing Agent”) and pursuant to the
      procedures set forth in the Authorized Purchaser Agreement entered into by
      the
      Fund, Administrator shall transfer appropriate trade instructions to the Fund’s
      custodian, Brown Brothers Harriman & Co. (“Custodian”) and pursuant to such
      orders register the appropriate number of book entry only Fund Units in the
      name
      of The Depository Trust Company (“DTC”) or its nominee as a unitholder (each a
“Unitholder”) of the Fund and deliver the Units of the Fund on the business.

     

    B. Pursuant
      to such redemption orders that Index Receipt Agent shall receive from the
      Marketing Agent, pursuant to the procedures set forth in the Authorized
      Purchaser Agreement entered into by the Fund, Administrator shall transfer
      appropriate trade instructions to the Custodian and, pursuant to such orders,
      redeem the appropriate number of Fund Units that are delivered to the designated
      DTC Participant Account of the Custodian for redemption and debit such Units
      from the account of the Unitholder on the register of the Fund.

     

    C. On
      behalf
      of the Fund, Administrator shall issue Fund Units in Creation Baskets for
      settlement with purchasers through DTC as the purchaser is authorized to
      receive. Beneficial ownership of Fund Units shall be shown on the records of
      DTC
      and DTC Participants and not on any records maintained by the Administrator.
      In
      issuing Fund Units through DTC to a purchaser, Administrator shall be entitled
      to rely upon the latest Instructions that are received from the Marketing Agent
      by the Administrator as Index Receipt Agent concerning the issuance and delivery
      of such Units for settlement.

     

    D. Administrator
      shall not issue on behalf of the Fund any Fund Units where it has received
      an
      Instruction from the Fund, the General Partner or the Marketing Agent or written
      notification from any federal or state authority that the sale of the Fund
      Units
      has been suspended or discontinued, and Administrator shall be entitled to
      rely
      upon such Instructions or written notification.

     

    E. Upon
      the
      issuance of Fund Units as provided herein, Administrator shall not be
      responsible for the payment of any original issue or other taxes, if any,
      required to be paid by the Fund, the General Partner or the Marketing Agent
      in
      connection with such issuance.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    F. Fund
      Units may be redeemed in accordance with the procedures set forth in the
      relevant Authorized Purchaser Agreement and Administrator shall duly process
      all
      redemption requests.

     

    G.
      Administrator
      will act only upon Instruction from the Fund and/or the General Partner in
      addressing any failure in the delivery of cash, treasuries and/or Shares in
      connection with the issuance and redemption of Fund Units.

     

    II. Payment
      of Dividends and Distributions on Fund Units.

     

    A. As
      instructed by the Fund and/or the General Partner, the Administrator shall
      prepare and make payments for dividends and distributions declared by the Fund
      or the General Partner.

     

    B. The
      Fund
      and/or the General Partner shall promptly notify the Administrator of the
      declaration of any dividend or distribution. The Fund and/or the General Partner
      shall furnish to the Administrator a statement signed by an Authorized Person:
      (i) indicating that dividends have been declared on a specific periodic basis
      and Instructions specifying the date of the declaration of such dividend or
      distribution, the date of payment thereof, the record date as of which
      unitholders shall be entitled to payment, the total amount payable to the
      unitholders and the total amount payable to Administrator as transfer agent
      on
      the payment date; or (ii) setting forth the date of the declaration of any
      dividend or distribution, the date of payment thereof, the record date as of
      which the unitholders are entitled to payment, and the amount payable per unit
      to each unitholder as of that date and the total amount payable to Administrator
      as transfer agent on the payment date.

     

    C. Based
      upon the amount of Fund Units outstanding on its books and records, the Fund
      and/or the General Partner shall calculate the total dollar amount of the
      dividend or distribution and notify the Administrator of this amount. The Fund
      and/or the General Partner shall then instruct the Administrator to direct
      the
      Custodian to place in a separate cash account maintained by the Administrator
      funds equal to the total cash amount of the dividend or distribution to be
      paid
      out. Should the Custodian determine that it does not have sufficient cash in
      the
      Custody Account to pay the total amount of the dividend or distribution to
      the
      Administrator, the Administrator shall advise the Fund and/or the General
      Partner and the Fund and/or the General Partner shall either adjust the rate
      of
      the dividend or distribution or provide additional cash directly to the
      Custodian for credit to the separate cash account maintained by the Custodian.
      When instructed by the Fund and/or the General Partner, the Administrator shall
      direct the Custodian to make payment of such dividend or distribution to the
      account of each unitholder.

     

    D. Should
      the Administrator or the Custodian not receive from the Fund sufficient cash
      to
      make payment as provided in the immediately preceding Subsection, the
      Administrator shall notify the Fund and/or the General Partner, and the
      Administrator shall withhold payment to the unitholders until sufficient cash
      is
      provided to the Custodian and the Administrator shall not be liable for any
      claim arising out of such withholding.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    III. Maintenance
      of Registry of Limited Partners and Persons Applying to Become Limited
      Partners.

     

    Pursuant
      to the Limited Partnership Agreement for the Fund, all purchasers of Units
      who
      wish to become limited partners or record holders and receive cash distributions
      (if any) must deliver an executed transfer application in which the purchaser
      or
      transferee must certify that, among other things, he/she agrees to be bound
      by
      the Funds Limited Partnership Agreement and is eligible to purchase the Fund’s
      securities. Any transfer of Units will not be recorded by the transfer agent
      unless a completed transfer application is delivered to the General Partner
      or
      the Administrator. 

     

    The
      Administrator shall keep a record of all transfer applications received, with
      each applicant deemed as a holder of record until the application is approved
      by
      the Fund. All applications will be forwarded by the Administrator to the General
      Partner to obtain its consent. Once such consent is obtained, the holder shall
      become Limited Partners. The Administrator shall maintain a registry of all
      Limited Partners and holders of record of the Fund.

     

    IV. Recordkeeping.

     

    A. The
      Administrator shall record the issuance of Fund Creation Baskets and maintain,
      pursuant to Rule 17Ad-14(e) under the Securities Exchange Act of 1934, as
      amended, a record of the total number of Fund Creation Baskets that are
      authorized, issued and outstanding based upon data provided to Administrator
      by
      the Fund and/or the General Partner. The Administrator shall also provide the
      Fund and/or the General Partner on a regular basis with the total number of
      Fund
      Units authorized, issued and outstanding; provided however that the
      Administrator shall not be responsible for monitoring the issuance of such
      Units
      or compliance with any laws relating to the validity of the issuance or the
      legality of the sale of such Units.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	
              UNITED
                STATES HEATING OIL FUND, LP

              By: Victoria Bay Asset Management, LLC, as General
                Partner

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                Nicholas D. Gerber

              Title:
                President and Management Director

              Date:

            

    

     

    
      	 	 	 
	 	VICTORIA
              BAY ASSET MANAGEMENT, LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                Nicholas D. Gerber

              Title:
                President and Management Director

              Date:

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    BOARD
      OF DIRECTORS’ AND AUDIT COMMITTEE’S CALENDAR 

     

    FOR

     

    VICTORIA
      BAY ASSET MANAGEMENT, LLC

     

    ON
      BEHALF OF

     

    UNITED
      STATES HEATING OIL FUND, LP (“LP”)1

    

     

    BOARD
      MEETINGS

     

    Quarterly
      Items

    

    
      	·  	
              Approve
                Minutes of Previous Board Meeting 

            

    

    
      	·  	
              Report
                of the Investment Manager

            

    

    
      	·  	
              Marketing
                Report

            

    

    
      	·  	
              Report
                of Audit Committee 

            

    

    
      	·  	
              Report
                of Chief Compliance Officer

            

    

    
      	·  	
              Report
                of Chief Financial Officer

            

    

    
      	·  	
              Report
                of Administrator 

            

    

    
      	·  	
              Regulatory
                Update 

            

    

    
      	·  	
              Review
                AMEX Monthly
                Market Statistics Reports

            

    

    
      	·  	
              Review
                PwC Statistics for the Individual Taxpayer K-1
                Accounts

            

    

    
      	·  	
              Ratify
                Filings with the U.S. Securities and Exchange Commission (the “SEC”), the
                Commodities Futures Trading Commission (the “CFTC”), American Stock
                Exchange (the “AMEX”), National Futures Association (the “NFA”) and any
                other regulatory body

            

    

    
      	·  	
              General
                Implementation Resolutions 

            

    

    
      	·  	
              Approve/Review
                Next Meeting Date

            

    

    
      	·  	
              Other
                items, as appropriate 

            

    

     

    
      Initial
        Items

    

    
      
        	 	
                Last
                  Approved

              	 	
                Next
                  Approved

              
	
                Approve
                  Code of Conduct and Ethics (pursuant to Item 406 of SEC Regulation
                  S-K)

              	 	 	 

      

       

      Annual
        Items

      
        	 	
                Last
                  Approved

              	 	
                Next
                  Approved

              
	
                Approve/ratify
                  Audit Committees’ recommendation for appointment of Audit Committee
                  Chairman

              	 	 	 
	
                Approve
                  annual meeting and record date for annual meeting, proxies, notice
                  and
                  form of proxy2

              	 	 	 
	
                Approve
                  items to be considered at annual meeting, if annual meeting is
                  required

              	 	 	 
	
                Annual
                  Executive Session of Non-Management Directors

              	 	 	 
	
                Approve/ratify
                  appointment of independent auditors by the Audit Committee and
                  associated
                  fees

              	 	 	 
	
                Approve/ratify
                  designation of Audit Committee member as “financially sophisticated”
                  pursuant to AMEX rules and as an Audit Committee Financial Expert,
                  as
                  defined under Item 407(d) of Regulation S-K, if
                  appropriate.

              	 	 	 
	
                Annual
                  approval/ratification of the Audit Committee Charter as recommended
                  by the
                  Audit Committee per Amex requirements

              	 	 	 
	
                Approve
                  D&O/E&O Insurance for members of the Board and Audit Committee, if
                  such insurance is obtained

              	 	 	 
	
                Approve
                  Dates and Times for current year Audit Committee and Board
                  Meetings

              	 	 	 
	
                Review/approve
                  Annual Report to unitholders/Annual Report on Form 10-K to be filed
                  with
                  the SEC and NFA

              	 	 	 
	
                Review
                  and approve related party transactions

              	 	 	 
	
                Report
                  of Independent Auditors: review of arrangements for and scope of
                  audit
                  plan and provide next year’s fees and engagement letter

              	 	 	 

      

    

     

    
      

    

    
      1
        Pursuant to the rules of the American Stock Exchange (“AMEX Company
        Guide”), the Board of Directors and the Audit Committee of any listed company
        are required to meet at least quarterly. In addition, the independent directors
        of the Board of Directors are required to meet as least annually in executive
        session.

       

      2 
        Section 704 of the AMEX Company Guide states that “A listed company is required
        to hold meetings of its stockholders annually to elect directors and to
        take action on other corporate matters in accordance with its charter, by-laws
        and applicable state or other laws.” However, the Fund is a limited partnership.
        The LP Agreement specifically provides that limited partners and/or the ultimate
        unitholders have no right to participate in management and does not expressly
        provide for the election of directors. This issue can be resolved by
        communicating with the LP’s liaison at AMEX. 

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Other
      Items

    
      	 	
              Last
                Aprroved 

            	 	
              Next
                Approved 

            
	
              Approval
                of Amended and Restated Agreement of Limited Partnership

            	 	 	 
	
              Ratification
                of the Listing Agreement with the American Stock Exchange

            	 	 	 
	
              Approve
                Form of Authorized Purchaser Agreement 

            	 	 	 
	
              Approve
                Custodian and Administrative Agency Agreements with Brown Brothers
                Harriman & Co. 

            	 	 	 
	
              Approve
                Marketing Agent Agreement with ALPS, Inc. 

            	 	 	 
	
              Approve
                Blanket Letter of Representations to Depository Trust Company
                

            	 	 	 
	
              Approve
                Institutional Futures Client Account Agreement 

            	 	 	 
	
              Approve
                Form of ISDA Master Agreement 

            	 	 	 
	
              Approve
                Investment Policy

            	 	 	 
	
              Approve
                Policy for Use of Derivatives

            	 	 	 
	
              Approve
                Ethics Policy 

            	 	 	 
	
              Approve
                Privacy Policy 

            	 	 	 
	
              Approve
                Disaster Recovery Plan Policy and Procedures

            	 	 	 
	
              Approval
                of Letter of Understanding to Provide Partnership Tax Accounting
                and
                Reporting Services with PricewaterhouseCoopers

            	 	 	 

    

    
       

    

    AUDIT
      COMMITTEE

    

    Initial
      Items

    
      	 	
              Last
                Approved

            	 	
              Next
                Approved

            
	
              Approve
                formal written charter of Audit Committee

            	 	 	 
	
              Determine
                that at least one member of the Audit Committee is “financially
                sophisticated” pursuant to AMEX rules and is an Audit Committee Financial
                Expert, as defined under Item 407(d) of Regulation S-K, if
                appropriate

            	 	 	 
	
              Determine
                that at least three members of the Audit Committee are Independent
                (under
                both Section 121A of the AMEX Company Guide and Rule 10A-3 of the
                Securities Exchange Act of 1934)

            	 	 	 
	
              Approve
                independent auditors

            	 	 	 
	
              Approve
                procedures for handling “Whistleblower” complaints

            	 	 	 

    

    

    Monthly
      Items

    
      	 	
              Last
                Approved

            	 	
              Next
                Approved

            
	
              Review
                Account Statements (prepared in accordance with CFTC rules) provided
                to
                unitholders/ limited partners 

            	 	 	 

    

    

    Quarterly
      Items

    
      	 	
              Last
                Approved

            	 	
              Next
                Approved

            
	
              Approve
                minutes of previous meeting

            	 	 	 
	
              Pre-Approval
                of non-audit services provided by the independent auditors pursuant
                to
                pre-approval procedures & fees

            	 	 	 
	
              Review
                Quarterly Reports on Form 10-Q to be filed with the SEC

            	 	 	 

    

    

    Annual
      Items

    
      	 	
              Last
                Approved

            	 	
              Next
                Approved

            
	
              Appointment
                of Audit Committee Chairman

            	 	 	 
	
              Review/approve
                audited financial statements included in Annual Report on Form 10-K
                to be
                filed with the SEC and NFA

            	 	 	 
	
              Approve
                engagement of independent auditors and related fees for the following
                calendar year

            	 	 	 
	
              Review
                and evaluate the qualifications, independence and performance of
                the
                independent auditors

            	 	 	 
	
              Review/approve
                designation of Audit Committee member as “financially sophisticated”
                pursuant to AMEX rules and as an Audit Committee Financial Expert,
                as
                defined under Item 407(d) of Regulation S-K, if
                appropriate.

            	 	 	 
	
              Review
                and assess adequacy of the Audit Committee Charter

            	 	 	 
	
              Report
                of Independent Auditors: review of arrangements for and scope of
                audit
                plan and provide next year’s fees and engagement letter 

            	 	 	 
	
              Determine
                that at least three members of the Audit Committee are Independent
                (under
                both Section 121A of the AMEX Company Guide and Rule 10A-3 of the
                Securities Exchange Act of 1934)

            	 	 	 
	
              Review
                and approve related party transactions 

            	 	 	 

    

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    

    APPENDIX
      B TO THE

    ADMINISTRATIVE
      AGENCY AGREEMENT

    

    List
      of Authorized Persons

    

     

     

     

     

     

     

     

     

     

    

    

    

    

    
      	 	 	 
	 	
              UNITED
                STATES HEATING OIL FUND, LP

              By:
                Victoria Bay Asset Management, LLC, as General Partner

            
	 
 	 
 	 
 
	 	By: 
              	 
	 	
              

              Name:
                Nicholas D. Gerber

              Title:
                President and Management Director

              Date:

            

    
      	 	 	 
	 	VICTORIA
              BAY ASSET MANAGEMENT, LLC
	 
 	 
 	 
 
	 	By: 
              	 
	 	
              

              Name:
                Nicholas D. Gerber

              Title:
                President and Management Director

              Date:

            

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    APPENDIX
      C TO THE

    ADMINISTRATIVE
      AGENCY AGREEMENT

    

    AUTHORIZED
      SOURCES

    

    The
      General Partner and the Fund hereby acknowledge that the
      Administrator is authorized to use the following authorized sources for
      financial reporting, pricing (including corporate actions, dividends and rights
      offering), and foreign exchange quotations, to assist it in fulfilling its
      obligations under the aforementioned Agreement.

    

    BLOOMBERG

    EXTEL
      (LONDON)

    FUTURES
      COMMISSION MERCHANTS

    FUND
      MANAGERS

    INTERACTIVE
      DATA CORPORATION

    BROKERS

    REUTERS

    SUBCUSTODIAN
      BANKS

    TELEKURS

    VALORINFORM
      (GENEVA)

    REPUTABLE
      FINANCIAL PUBLICATIONS

    STOCK
      EXCHANGES

    FINANCIAL
      INFORMATION INC. CARD

    JJ
      KENNY

    FRI
      CORPORATION

    
      

      
        	 	 	 
	 	
                UNITED
                  STATES HEATING OIL FUND, LP

                By:
                  Victoria Bay Asset Management, LLC, as General Partner

              
	 
 	 
 	 
 
	 	By: 
                	 
	 	
                

                Name:
                  Nicholas D. Gerber

                Title:
                  President and Management Director

                Date:

              

      
        	 	 	 
	 	VICTORIA
                BAY ASSET MANAGEMENT, LLC
	 
 	 
 	 
 
	 	By: 
                	 
	 	
                

                Name:
                  Nicholas D. Gerber

                Title:
                  President and Management Director

                Date:

              

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

    

     

    
      
        	 	
                

              

      

    

     

    APPENDIX
      D

    

    BBH
      Pricing Policies

    Futures,
      Forwards, Swaps, Options and Treasuries

    

    The
      pricing policies stated below are used for all BBH
      clients, including Mutual Fund Registered Investment Companies. These
      policies have been audited by numerous accounting firms during annual fund
      audits. 

    

    Futures

    Futures
      traded on
      exchanges are valued using the closing settlement prices quoted on the relevant
      exchange and obtained from pricing sources, typically Bloomberg or Reuters.
      

    

    Forward
      Currency Contracts

    BBH
      obtains the WM
      Reuters London Close closing spot rates and the WM Reuters London Close forward
      point rates on a daily basis. The currency forward contract pricing model
      derives the differential in point rates to the expiration date of the forward
      and calculates its present value. The forward is valued at the net of the
      present value and the spot rate.

    

    Swaps

    Swaps
      and other
      similar derivative or contractual type instruments are valued at a price
      provided by a single broker or dealer, typically the counterparty. If no such
      price is available, the contract is valued at a price at which the counterparty
      to such contract would repurchase the instrument or terminate the
      contract.

    

    Options

    Option
      contracts on securities, currencies, indices, futures
      contracts, commodities and other instruments shall be valued at the last sale
      price on the exchange or market that is the Primary Market. If a contract did
      not trade on the Primary Market, it shall be valued at the last sale price
      on
      another exchange or market where it did trade. If there is no such sale price,
      the value shall be the most recent bid quotation.

    

    Sale
      prices and bid quotations indicated above shall be supplied by a
      Pricing Service (Reuters, Bloomberg, IDC, etc.). If a Pricing Service is not
      able to provide such sale prices or bid quotations, the value shall be
      determined by taking the mean between the bid and the asked quotations provided
      by a single broker or dealer, unless the broker or dealer can only provide
      a bid
      quotation, in which case the value shall be such bid quotation.

    

    Except
      as provided below, OTC currency options are valued by
      uploading the applicable implied volatility rates from Reuters or Bloomberg.
      Other inputs are either uploaded (interest rates, spots) or are specified when
      the ticker symbols are set up (expiration date, strike). OTC currency options
      are then priced by using the Garman-Kohlhagen modified Black-Scholes formula,
      which adjusts for a constant yield versus a fixed dividend.

    

    Except
      as provided below, OTC equity/index options are priced
      according to the contract specifications (days to expiration, current spot
      index
      level, interest rates, dividends, strike price) using the Black-Scholes pricing
      model, modified for dividends. The volatility input assumption is interpolated
      from the previous day’s price.

    

    US
      Treasuries

    BBH
      uses an evaluated bid supplied by IDC for treasury prices.

     

    
      
        
          	  	
                   

                

        

      

       

       

      
        
          
          

        

        
          26EXHIBIT 10.16

                           PURCHASE AND SALE AGREEMENT
                          AND JOINT ESCROW INSTRUCTIONS

This Purchase and Sale Agreement and Joint Escrow Instructions ("AGREEMENT") is
made as of November 27, 2007, (the "EFFECTIVE DATE"), by and between RICHARD P.
RUGGERI AND JUDI M. RUGGERI, TRUSTEES OF THE RICHARD AND JUDI RUGGERI FAMILY
TRUST DATED JANUARY 27, 1988; ROBERT RUGGERI AND LISA RUGGERI; SILVER TERRACE
NURSERIES, INC., a California corporation (collectively "SELLER"), and AMERICAN
SOIL TECHNOLOGIES, INC., a Nevada corporation ("Buyer"), for the purposes of
setting forth the agreement of the parties and of instructing NORTH AMERICAN
TITLE COMPANY ("ESCROW AGENT"), with respect to the transactions contemplated by
this Agreement.

                                    RECITALS

A. Seller is the owner of the approximately 30 acres of real property commonly
known as 450 and 501 North Street, Pescadero, California, (the "LAND"), as more
particularly described in EXHIBIT A attached hereto and incorporated herein by
reference.

B. The Land has been improved with approximately 700,000 square feet of
greenhouses.

C. Buyer desires to purchase from Seller and Seller desires to sell to Buyer the
Property (as hereinafter defined in Section 1.2) on the terms and conditions set
forth herein.

NOW, THEREFORE, Seller and Buyer agree as follows:

                                    ARTICLE I
                                    PROPERTY

1.1 PURCHASE AND SALE OF THE PROPERTY. Seller hereby agrees to sell and convey
to Buyer, and Buyer hereby agrees to purchase from Seller, subject to the terms
and conditions set forth herein, the following:

     (a) LAND. The real property commonly known as 450 and 501 North Street,
Pescadero, CA and as defined in Exhibit A.

     (b) APPURTENANCES. All rights, privileges and easements appurtenant to the
Land, including, without limitation, all minerals, oil, gas and other
hydrocarbon substances on and under the Land (to the extent owned by Seller), as
well as all development rights, air rights, water, and water rights relating to
the Land, and any other easements, rights-of-ways or appurtenances used in
connection with the beneficial use and enjoyment of the Land (all of which are
collectively referred to as the "APPURTENANCES").
<PAGE>
     (c) IMPROVEMENTS. All improvements and fixtures located on the Land (to the
extent owned by Seller) including, without limitation, all fixtures, apparatus,
equipment, and appliances used in connection with the operation or occupancy
thereof, such as heating, fire and air conditioning systems, and facilities used
to provide any utility services, parking services, refrigeration, ventilation,
trash disposal, recreation or other services thereto (all of which are
collectively referred to as the "IMPROVEMENTS").

     (d) PERSONAL PROPERTY. All of the personal property owned by Seller located
on or used in connection with the Property (the "PERSONAL PROPERTY"), as set
forth in the equipment list contained in the marketing brochure prepared by
Sperry Van Ness/Windward Commercial Real Estate Services ("SVN"), which will be
transferred to Buyer using the form of Bill of Sale and Assignment attached as
EXHIBIT B hereto and incorporated herein by this reference (the "BILL OF SALE").
The Personal Property shall be delivered to Buyer in working order, and shall be
transferred to Buyer free of any liens or encumbrances, but otherwise without
warranty of any kind.

     (e) INTANGIBLE PROPERTY. All of the right, title and interest of Seller in
any warranties or guarantees received by Seller from any contractors,
subcontractors, suppliers or materialmen in connection with any construction,
repair, or alteration of the Improvements, including all claims of Seller in
connection therewith (collectively referred to as the "INTANGIBLE PROPERTY"),
all of which shall be assigned to Buyer pursuant to the General Assignment
attached as EXHIBIT C hereto and incorporated herein by this reference (the
"GENERAL ASSIGNMENT").

     (f) PLANS AND PERMITS. The interest of Seller, if any, under (i) all design
contracts, space planning contracts, construction contracts, blueprints, plans
and specifications (including final and complete "AS builts," if available),
maps, surveys, drawings; (ii) engineering, soils, seismic, toxic substance and
geologic reports and studies; (iii) utility and other entitlements, licenses,
certificates of occupancy, permits, rights and approvals from any private or
public parties needed for access or utilities to the Property; and (iv) any
other rights, interests or privileges owned by Seller in any way related to the
Property (collectively the "PLANS AND PERMITS"). All such Plans and Permits
shall be transferred and assigned to Buyer by the General Assignment.

     (g) CROPS. All crops located upon the Property as of the Closing Date.

1.2 "PROPERTY" AND "REAL PROPERTY" DEFINED. All of the items described in
Sections 1.1 (a) through (h) above are hereinafter collectively referred to as
the "PROPERTY." The items described in Sections 1.1 (a) through (c) are herein
referred to collectively as the "REAL PROPERTY."

1.3 EXCLUDED PROPERTY. Buyer acknowledges that Buyer is not acquiring, and the
transaction described in this Agreement does not include:

     (a) Any interest in any accounts receivable of Seller in effect as of the
Closing Date, as further described in Section 6.5 below;

     (b) Any interest in the corporation known as Silver Terrace Nurseries, Inc;
and

     (c) Any interest in the name "Silver Terrace Nurseries."

                                       2
<PAGE>
                                   ARTICLE II
                                 PURCHASE PRICE

2.1 PURCHASE PRICE. The purchase price (the "PURCHASE PRICE") for the Property
shall be $5,400,000.

2.2  PAYMENT OF PURCHASE PRICE.  The Purchase Price shall be paid as follows:

     (a) Within three business days after the Effective Date, Buyer shall
deposit with Escrow Agent the sum of $50,000 as a deposit towards the Purchase
Price (the "FIRST DEPOSIT"), together with written instructions authorizing the
release of $10,000 of the First Deposit to Seller or Seller's exchange qualified
intermediary, at Seller's election, which $10,000 shall thereafter be
nonrefundable to Buyer except in the event of Seller's default under this
Agreement.

     (b) Upon Buyer's approval or waiver of Buyer's Due Diligence described in
Article IV of this Agreement, Buyer shall deposit with Escrow Agent, on or
before the Due Diligence Deadline, the additional sum of $100,000 as a deposit
towards the Purchase Price (the "SECOND DEPOSIT") resulting in the total deposit
of $150,000 (collectively the "DEPOSIT"); together with written instructions
authorizing the release of the Deposit to Seller or Seller's exchange qualified
intermediary, at Seller's election, which Deposit shall thereafter be
nonrefundable to Buyer except in the event of Seller's default under this
Agreement.

     (c) On the Closing Date a sum equal to the Purchase Price, less the amount
of the Deposit, including interest, will be paid by Buyer in cash.

2.3 ALLOCATION OF PURCHASE PRICE. The parties have negotiated an allocation of
the Purchase Price as follows:

     (a) Real Property and Improvements           $5,375,000

     (b) Personal Property                        $   25,000

Said allocation is the result of an arms length negotiation by Seller and Buyer,
and the parties agree to use such allocation for income tax purposes. Without
limiting the foregoing, the parties agree to file Form 8594 Asset Acquisition
Statement, as may be required by applicable federal and state tax law and
regulations, using the allocations and in the form of EXHIBIT D attached hereto.

2.4 INVESTMENT OF FIRST DEPOSIT. Escrow Agent shall invest the First Deposit in
an interest bearing account selected by Buyer. All interest on the First Deposit
shall be for the benefit of Buyer and shall be credited towards payment of the
Purchase Price.

                                   ARTICLE III
                                TITLE TO PROPERTY

3.1 TITLE TO REAL PROPERTY. At the Closing, Seller shall convey to Buyer fee
simple title to the Real Property by execution and delivery of a grant deed in
such form as is customarily used by Escrow Agent (the "DEED"), free and clear of

                                       3
<PAGE>
any liens or encumbrances other than the following exceptions to title
(hereinafter collectively called the "PERMITTED EXCEPTIONS"):

     (a) Non-delinquent general and special taxes for the fiscal year 2007 -
2008;

     (b) Exceptions approved by Buyer as provided in Section 4.2 of this
Agreement;

     (c) Any bonds or assessments levied against the Property by any
governmental entity having jurisdiction over the Property; and

     (d) Any exceptions to title caused by Buyer.

3.2 TITLE INSURANCE. On the Closing Date, Buyer shall receive from the Escrow
Agent, a CLTA Owner's Policy of Title Insurance (the "TITLE POLICY") with
liability in the full amount of the Purchase Price, insuring fee simple title to
the Real Property in Buyer, subject only to the Permitted Exceptions, together
with such endorsements as may be reasonably requested by and paid for by Buyer.

3.3 TITLE TO OTHER PROPERTY. At the Closing, Seller shall (i) transfer title to
the Personal Property to Buyer pursuant to the Bill of Sale, (ii) transfer and
assign all of Seller's rights in and to any Intangible Property and the Plans
and Permits pursuant to the General Assignment, and (iii) transfer all of
Seller's rights, title and interest in and to the Leases pursuant to the
Assignment of Leases. All such title and rights shall be free of any liens,
encumbrances or interests of third parties whatsoever.

                                   ARTICLE IV
                              BUYER'S DUE DILIGENCE

4.1 DUE DILIGENCE DEADLINE. Buyer shall have until 5:00 p.m., December 14, 2007
(the "DUE DILIGENCE DEADLINE") to review such documents and conduct such
investigations and inspections regarding the Property, and to approve same in
Buyer's sole and absolute discretion, as Buyer deems appropriate, including,
without limitation, the matters described in this Article.

4.2 APPROVAL OF TITLE. Buyer shall review a current preliminary title report
with respect to the Property, accompanied by legible copies of all documents
referred to in the report, and shall advise Seller of any objections to title on
or before 5:00 p.m., November 30, 2007. Seller shall have five business days
after receipt of Buyer's objections to give Buyer notice, (i) that Seller will
remove any objectionable exceptions from title and provide Buyer with evidence
satisfactory to Buyer of such removal, or Seller will provide Buyer with
evidence satisfactory to Buyer that said exceptions will be removed on or before
the Closing, or (ii) that Seller elects not to cause such exceptions to be
removed. If Seller shall fail to give Buyer notice of its election within said
five business days, Seller shall be deemed to have delivered notice that Seller
elects not to cause such exceptions to be removed. If Seller gives Buyer notice
under clause (ii), Buyer shall have five business days to notify Seller of
Buyer's election to proceed with the purchase of and take the Property subject
to such exceptions but otherwise pursuant to the terms of this Agreement, or to
terminate this Agreement. If Buyer shall fail to give Seller notice of its
election within said five business days, Buyer shall be deemed to have elected
to terminate this Agreement.

                                       4
<PAGE>
Notwithstanding the preceding provisions of this Section, all monetary liens
against the Property, including, but not limited to, taxes (other than current
real property taxes, and bonds and assessments collectible in installments with
the real property taxes), deeds of trust, mechanics' lien claims, and judgment
liens, shall be removed by Seller prior to the Closing, and shall not be deemed
Permitted Exceptions.

4.3 INSPECTION BY BUYER. Within five business days from the Effective Date,
Seller shall deliver to Buyer copies of the Intangible Property and Plans and
Permits described in Article I of this Agreement that are within Seller's
possession or control.

4.4 FEASIBILITY. Buyer may conduct such feasibility evaluations as Buyer deems
appropriate to determine the suitability of the Property for Buyer's intended
ownership and use.

4.5 PHYSICAL CHARACTERISTICS OF THE PROPERTY. Buyer may inspect the structural,
mechanical, electrical and other physical characteristics of the Property.
Seller shall permit Buyer and Buyer's agents and consultants to enter the
Property to conduct such inspections and investigations regarding the Property
as Buyer deems appropriate, including, without limitation, soils, geotechnical,
and environmental tests, and to cause an environmental assessment of the Land to
be performed; provided, however, Buyer shall not be permitted to undertake any
intrusive testing of the Property without first obtaining Seller's written
consent thereto in Seller's reasonable discretion. Prior to conducting any
intrusive testing of the Property, and as a condition to such testing, Buyer
shall provide Seller with a certificate of insurance evidencing a general
liability insurance policy insuring Buyer in the amount of at least $1,000,000
for any loss, damage, or liability which may arise from said intrusive testing,
including workers' compensation coverage in the amount required by law. Without
Seller's prior written consent, prior to the Closing Buyer shall not make any
application to any governmental agency for any permit, approval, license or
other entitlement for the Property or development thereof, or have any
communications with any governmental agency or official related to the condition
(environmental or otherwise) of the Property. Buyer shall deliver to Seller
written notice at least 24 hours prior to entering the Property, and shall
afford Seller an opportunity to have a representative present to accompany Buyer
while Buyer performs its evaluations, inspections and other investigations of
the physical condition of the Property. All examinations and tests of the
Property by Buyer and Buyer's representatives shall be planned and conducted in
a manner so as to minimize any inconvenience or interference to ongoing
operations. Buyer shall pay all costs with respect to such examinations and
tests, shall repair all damage to the Property caused thereby, and shall
indemnify, protect, hold harmless and defend Seller from and against all
liability, claims, demands, liens, damages or costs of any kind whatsoever
(including attorney fees) arising from or connected with such examinations and
tests (but excluding any diminution in value or other damage caused simply by
Buyer's discovery of a condition on or about the Property), which Buyer's
obligation shall survive the termination of this Agreement. Buyer shall deliver
copies of any reports, studies, tests, surveys, and the like to Seller within
five business days from Buyer's receipt thereof.

4.6 CONSULTING AGREEMENT. The negotiation of a consulting agreement between
Buyer and Richard Ruggeri and Robert Ruggeri on such terms and conditions as are
acceptable to Buyer and Seller, including, but not limited to, the following:.

                                       5
<PAGE>
     (a) Either Robert Ruggeri or Richard Ruggeri shall be available at the
Property Monday through Friday between the hours of 7:00 a.m. and 2:00 p.m. for
consulting services to Buyer including, but not limited to, the training of
Buyer's staff regarding the growing operations at the nursery and sales
activities associated with the nursery operations.

     (b) Buyer shall pay $350 per day for such consulting services, payable
weekly.

     (c) Said consulting services shall terminate 180 days after the Closing,
unless extended by written agreement between Buyer and Robert Ruggeri and
Richard Ruggeri.

     (d) Robert Ruggeri and Richard Ruggeri shall at all times be acting as
independent contractors and not as employees of Buyer.

4.7  BUYER'S REMEDIES.

     (a) The foregoing conditions contained in this Article are intended solely
for the benefit of Buyer. Buyer shall notify Seller in writing on or before the
Due Diligence Deadline whether or not such conditions are satisfied or otherwise
waived. If any of the foregoing conditions are not satisfied, Buyer shall have
the right at its sole election either (i) to waive the condition in question and
proceed with the purchase of the Property pursuant to all of the other terms of
this Agreement, or (ii) to terminate this Agreement. If Buyer fails to deliver
said notice to Seller prior to the Due Diligence Deadline, this Agreement shall
automatically terminate.

     (b) In the event this Agreement is terminated pursuant to this Section, (i)
Buyer shall return to Seller all documents delivered by Seller to Buyer pursuant
to this Agreement; (ii) the First Deposit, including any accrued interest
thereon, shall be immediately paid to Buyer by Escrow Agent, less escrow
cancellation fees not to exceed $250 and not including the $10,000 released to
Seller pursuant to Section 2.2(a) above; and (iii) except as otherwise expressly
provided in this Agreement, neither party shall have any further rights or
obligations under this Agreement.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

5.1 SELLER'S REPRESENTATIONS. Seller hereby represents and warrants to Buyer
that, as of the date hereof, the following are true and correct and shall be
deemed remade as of the date of the Closing except as Seller may otherwise
notify Buyer in writing prior to the Closing:

     (a) LITIGATION. To Seller's knowledge, there is no litigation pending or
threatened against Seller or the Property before any court or administrative
agency or that might adversely affect the ability of Seller to perform its
obligations under this Agreement.

     (b) COMPLIANCE WITH LAWS. Seller has not received any written notice of
violation of law or municipal ordinance, order or requirement from any
governmental authority having jurisdiction over the Property.

                                       6
<PAGE>
     (c) TITLE TO PERSONAL PROPERTY. Seller has good and marketable title to the
Personal Property, free of any security interests or encumbrances.

     (d) AUTHORITY OF SELLER. Seller has the complete authority to own and
convey the Property. This Agreement and all documents executed by Seller which
are to be delivered to Buyer at the Closing are, or at the time of Closing will
be, duly authorized, executed and delivered by Seller; and are, or at the
Closing will be, legal, valid, and binding obligations of Seller; and do not,
and at the time of Closing will not, violate any provisions of any agreement or
judicial order to which Seller is a party or to which Seller or the Property is
subject.

5.2  SELLER'S KNOWLEDGE; LIMITATIONS.

     (a) SELLER'S KNOWLEDGE. Buyer and Seller each specifically acknowledge and
agree that all references in this Agreement, in any of the exhibits attached
hereto, and in any document, certificate or statement to be delivered by Seller
to Buyer hereunder, to the phrases "TO SELLER'S KNOWLEDGE," "TO SELLER'S ACTUAL
KNOWLEDGE," "KNOWN TO SELLER," "TO THE BEST OF SELLER'S KNOWLEDGE," or in
similar or other contexts (i) shall mean the actual (not constructive) personal
knowledge of Richard Ruggeri and Robert Ruggeri only; ; (ii) shall in no case
mean or refer to the actual or constructive knowledge of any employee, partner,
officer, director, agent, attorney, management company, broker, contractor or
other representative of Seller (collectively the "SELLER Representatives"); and
(iii) shall in no event or circumstance impose upon Seller or any of the Seller
Representatives any duty or obligation to verify, inquire or make any
independent inquiry or investigation of any such representation or statement, or
to otherwise investigate the facts or circumstances related or otherwise
pertinent thereto. Buyer further acknowledges and agrees that none of Seller's
Representatives shall be personally liable, or otherwise have any personal
liability, under or in connection with this Agreement, including without
limitation, in connection with any other representations, warranties or
statements made in connection with, or pursuant to, this Agreement.

     (b) DOCUMENTS. Any documents furnished to Buyer by Seller relating to the
Property, including, without limitation, maps, surveys, environmental and other
reports, plans, drawings, specifications and other information shall be deemed
furnished as a courtesy and accommodation to Buyer but without warranty from
Seller, and shall not create or give rise to any liability against Seller or
against any of Seller's Representatives.

5.3 BUYER'S REPRESENTATIONS. Buyer hereby represents and warrants to Seller
that, as of the date hereof, the following representations are true and correct
and shall be deemed remade as of the date of the Closing except as Buyer may
otherwise notify Seller in writing prior to the Closing:

     (a) LITIGATION. To Buyer's knowledge, there is no litigation pending or
threatened against Buyer before any court or administrative agency which might
adversely affect the ability of Buyer to perform its obligations under this
Agreement.

     (b) AUTHORITY OF BUYER. Buyer is a corporation duly organized and validly
existing under the laws of the State of Nevada. This Agreement and all documents
executed by Buyer which are to be delivered to Seller at the Closing are, or at
the time of Closing will be, duly authorized, executed, and delivered by Buyer;
and are, or at the Closing will be, legal, valid, and binding obligations of

                                       7
<PAGE>
Buyer; and do not, and at the time of Closing will not, violate any provisions
of any agreement or judicial order to which Buyer is a party or to which it is
subject.

                                   ARTICLE VI
                                    COVENANTS

6.1 MAINTENANCE. Seller shall, between the Effective Date and the Closing Date,
at Seller's sole cost and expense, maintain the Property in good order,
condition and repair, reasonable wear and tear excepted, and shall operate the
Property in the same manner as before the making of this Agreement, the same as
though Seller were retaining the Property.

6.2 LEASES AND OTHER AGREEMENTS. Seller shall not, after the date hereof, enter
into, modify or terminate any Lease, or contract or agreement pertaining to the
Property, without in each case obtaining Buyer's prior written consent thereto,
which shall not be unreasonably withheld.

6.3 CONFIDENTIALITY. Buyer and Seller agree to keep the terms of this
transaction, including any letters of intent or other documents prepared in
connection hereto, strictly confidential, except to the extent disclosure to the
parties' respective principals, attorneys, consultants, real estate agents, and
financial sources is reasonably required, or as otherwise required by law.

6.4 ACCOUNTS RECEIVABLE. At the Closing, Seller shall deliver to Buyer a list of
all then pending accounts receivable generated by the operation of the nursery
business upon or related to the Property (the "ACCOUNTS RECEIVABLE"). All
Accounts Receivable existing on the date of Closing shall remain the property of
Seller after the Closing, and Buyer shall immediately forward to Seller any
payments received by Buyer for any of the Accounts Receivable. Buyer shall
reasonably cooperate and assist Seller in collecting the Accounts Receivable,
and Seller shall reimburse Buyer for any reasonable out of pocket expenses
incurred in connection therewith. All accounts receivable generated by or
related to the Property after the date of Closing are the sole and exclusive
property of Buyer.

                                   ARTICLE VII
                               CLOSING AND ESCROW

7.1 ESCROW INSTRUCTIONS. Upon the Effective Date, the parties hereto shall
deposit an executed counterpart of this Agreement, together with the deposit
described in Section 2.2(a), with Escrow Agent and this instrument shall serve
as the instructions to Escrow Agent for consummation of the purchase and sale
contemplated hereby. Seller and Buyer agree to execute such additional and
supplementary escrow instructions as may be appropriate to enable the Escrow
Agent to comply with the terms of this Agreement; provided, however, that in the
event of any conflict between the provisions of this Agreement and any
supplementary escrow instructions, the terms of this Agreement shall control.
For purposes of complying with Internal Revenue Code Section 6045(e), Escrow
Agent is hereby designated as the "person responsible for closing the
transaction" and also as the "reporting person" for purposes of filing any
information returns with the Internal Revenue Service concerning this
transaction as required by law.

                                       8
<PAGE>
7.2 SELLER'S DELIVERY TO ESCROW AGENT. Prior to the Closing Date, Seller shall
deliver to Escrow Agent the following:

     (a) The Deed, duly executed and acknowledged in recordable form.

     (b) An affidavit, certification or notice required by Section 1445 of the
Internal Revenue Code, and the regulations pursuant thereto, and as required by
Section 18662 of the California Revenue and Taxation Code and applicable
regulations pursuant thereto, in a form satisfactory to relieve Buyer of any
potential transferee withholding liability under such sections (the "TRANSFER
CERTIFICATES").

     (c) The Bill of Sale, duly executed by Seller.

     (d) The General Assignment, duly executed by Seller.

     (e) The Assignment of Leases, duly executed by Seller.

     (f) Such other documents as are reasonably required by Escrow Agent or are
otherwise required to close the escrow and consummate the purchase of the
Property in accordance with the provisions of this Agreement.

7.3 BUYER'S DELIVERY TO ESCROW AGENT. Prior to the Closing Date, Buyer shall
deliver to Escrow Agent the following:

     (a) The sum described in Section 2.2(c), less adjustments pursuant to
Section 7.6.

     (b) Such other documents and funds as are reasonably required by Escrow
Agent or are otherwise required to close the escrow and consummate the purchase
of the Property in accordance with the provisions of this Agreement.

7.4 COSTS AND EXPENSES. Seller shall pay the cost of any documentary or transfer
taxes applicable to the sale, Seller's recording fees, and Seller's brokerage
commissions. Buyer shall pay all escrow fees, title insurance premiums,
inspection fees, Buyer's recording fees, costs associated with any financing
obtained by Buyer, and any sales taxes payable on the Personal Property. Each
party shall pay their own legal, accounting and other professional service fees
and any other expenses not specifically described in this Section.

7.5 CLOSING. Escrow shall close (the "CLOSING") on or before December 28, 2007,
which is the date upon which all documents to be recorded under this Agreement
shall be recorded in the Office of the Recorder of San Mateo County, California
(the "CLOSING DATE").

     (a) Provided that Escrow Agent has received the documents, instruments and
funds described in Sections 7.2 and 7.3 hereof, Escrow Agent is authorized and
instructed at 8:00 a.m. on the Closing Date to:

          (1) Record the Deed with the San Mateo County Recorder;

                                       9
<PAGE>
          (2) Deliver the Purchase Price to Seller, less Seller's share of
prorations, costs of escrow, and the $10,000 previously released to Buyer
pursuant to Section 2.2(a);

          (3) Deliver the fully executed Bill of Sale, General Assignment, and
Assignment of Leases to Buyer, and a duplicate original of the Assignment of
Leases to Seller;

          (4) Deliver to Buyer the Transfer Certificates and the Title Policy;

          (5) Pay all costs and expenses as authorized by this Agreement and any
supplemental escrow instructions, and charge each party's account for such costs
and expenses pursuant to Section 7.4 hereof; and

          (6) Prepare and deliver to the parties a correct final settlement
statement.

         (b) In the event the escrow does not close on or before the Closing
Date, Escrow Agent shall, unless it is notified by either of the parties to the
contrary prior to the Closing Date, return to the depositor thereof items which
may have been deposited hereunder.

7.6  PRORATIONS AND APPORTIONMENTS.

     (a) All revenues and all expenses of the Property shall be prorated and
apportioned as of 12:01 a.m. on the Closing Date, so that Seller shall bear all
expenses with respect to the Property and shall have the benefit of all income
with respect to the Property through and including the period preceding the
Closing Date. Any revenue or expense amount which cannot be ascertained with
certainty as of the Closing Date shall be prorated on the basis of the parties'
reasonable estimates of such amount and shall be the subject of a final
proration 30 business days after the Closing Date or as soon thereafter as the
precise amounts can be ascertained.

     (b) Expenses to be prorated shall include taxes (including personal
property taxes on Personal Property); water rates and sewer rents, if any; gas,
electricity and other utility charges; any unfixed meter charges, if any
(apportioned on the basis of the last meter reading); license and permit fees;
and other expenses customarily prorated. If possible, in lieu of prorating,
utilities and other expenses shall be contracted for in the name of Buyer as of
the Closing Date.

     (c) The amount of any amortized bond or assessment which is a lien against
the Property shall be paid current by Seller and assumed by Buyer. Buyer shall
assume all assessments levied against the Property.

     (d) Either party owing the other party a sum of money based on adjustments
made to prorations after the Closing Date shall promptly pay that sum to the
other party, together with interest thereon at the rate of 10% per annum to the
date of payment if payment is not made within ten business days after mutual
agreement of the amount due.

                                       10
<PAGE>
                                  ARTICLE VIII
                                 AS IS PURCHASE

8.1 "AS IS" PURCHASE. Buyer hereby represents to Seller that, prior to close of
escrow, Buyer or its agents will have performed an independent inspection and
investigation of the Property and shall have observed the physical
characteristics and condition of the Property. Buyer hereby expressly waives any
and all deficiencies or defects in the physical characteristics and condition of
the Property which would be disclosed by such inspection and investigation.
Buyer further acknowledges that except for any representations made by Seller in
this Agreement, neither Seller nor any of Seller's representatives have made any
representations, warranties or agreements by or on behalf of Seller as to any
matters concerning the Property, the size of the Land, the size of the
improvements, the present use of the Property or the suitability of Buyer's
intended use of the Property, including without limitation, the suitability of
the topography; the availability of water rights or utilities; the present and
future zoning, subdivision and any and all other land use matters; the condition
of the soil, subsoil or groundwater of the Property and any and all other
environmental matters, other than an environmental questionnaire completed by
the Sellers; the purpose(s) to which the Property is suited; drainage; flooding;
access to public roads, or proposed routes or roads or extensions thereof other
than explicitly disclosed in this Agreement. Buyer hereby acknowledges and
agrees that the Property is to be purchased, conveyed and accepted by Buyer in
its present condition, "AS IS," "WHERE IS," "AND WITH ALL FAULTS," and that no
patent or latent defect in the condition of the Property, whether or not known
or discovered, shall affect the rights of either Seller or Buyer hereunder.
Buyer further represents to Seller that, prior to the Closing, Buyer or its
agents will have investigated and have knowledge of operative or proposed
governmental laws and regulations including, without limitation, land use laws
and regulations to which the Property may be subject; and, except as expressly
set forth in this Agreement, Buyer further represents that it shall acquire the
Property solely upon the basis of its independent inspection and investigation
of the Property, including, without limitation, Buyer's review and determination
of the applicability and effects of such laws and regulations.

                                   ARTICLE IX
                  LOSS BY FIRE OR OTHER CASUALTY; CONDEMNATION

9.1 MATERIAL DAMAGE OR CONDEMNATION. In the event that, prior to Closing, the
Property, or any part thereof, is materially damaged, or if condemnation
proceedings are commenced against the Property which would reduce the total
square footage of the Property by more than 5%, Buyer shall have the right,
exercisable by giving written notice of such decision to the other within 15
business days after receiving written notice of such damage or condemnation
proceedings or threat thereof, to terminate this Agreement; in which case,
Seller shall cause the return to Buyer of the Deposit (including the $10,000
released to Seller pursuant to Section 2.2(a)), and neither Buyer nor Seller
shall have further liability or obligation to each other hereunder except as
otherwise expressly provided in this Agreement. For purposes of this Agreement,
material damage shall mean any damage or loss which would (a) cost in excess of
$100,000 to repair or restore or (b) require more than 120 days to repair or
restore, as determined in good faith by Seller and Buyer. If Buyer elects to
accept the Property in its then condition, all proceeds of insurance or

                                       11
<PAGE>
condemnation awards paid or payable to Seller by reason of such damage or
condemnation shall be paid or assigned to Buyer and there shall not be any
reduction or abatement of the Purchase Price.

9.2 NON-MATERIAL DAMAGE OR CONDEMNATION. In the event of non-material damage to
the Property, which damage Seller is unwilling to repair or replace, or if
condemnation proceedings are commenced against the Property which would reduce
the total square footage of the Property by 5% or less, Buyer shall proceed with
the purchase, and Buyer shall be entitled to (i) any proceeds of insurance
payable to Seller by reason of such damage, or (ii) any condemnation awards paid
or payable to Seller by reason of such condemnation, as the case may be.

9.3 RISK OF LOSS. Except as otherwise provided in this Article any risk of loss
to the Property shall be borne by Seller until title has been conveyed to Buyer.

                                    ARTICLE X
                                  MISCELLANEOUS

10.1 POSSESSION. Physical possession of the Property shall be delivered to Buyer
on the Closing Date.

10.2 NOTICES. Any notice required or permitted to be given under this Agreement
shall be in writing, deemed delivered on the date received, when sent by (a) a
recognized private courier company, (b) United States registered or certified
mail, postage prepaid, return receipt requested, or (c) facsimile machine, and
addressed as follows:

         IF TO SELLER:              Richard Ruggeri
                                    34 Bennett Court
                                    Redwood City, CA 94062
                                    Fax No: 650-879-2125

         with a copy to:            Richard R. Fimmel, Esq.
                                    3130 La Selva Drive, Suite 307
                                    San Mateo, Ca 94403
                                    Fax No: 650-571-8590

         IF TO BUYER:               Carl P. Ranno, President/CEO
                                    American Soil Technologies, Inc.
                                    12224 Montague Street
                                    Pacoima, CA 91331
                                    Fax No: 602-493-5119

         with a copy to:            David R. Worden
                                    P.O. Box 181
                                    Half Moon Bay, CA 94019
                                    Fax No: 650-726-1049

         and copy to:               Lynne Bolduc, Esq.
                                    Oswald & Yap
                                    16148 Sand Canyon Avenue
                                    Irvine, CA  92618

                                       12
<PAGE>
or such other address as either party may from time to time specify in writing
to the other in the manner aforesaid.

10.3 BROKERS AND FINDERS. In connection with the transaction contemplated by
this Agreement, Seller has agreed to pay a brokerage commission to SVN pursuant
to a separate commission agreement. In the event of a claim for a broker's fee,
finder's fee, commission or other similar compensation in connection herewith
other than as set forth above, Buyer, if such claim is based upon any agreement
alleged to have been made by Buyer, hereby agrees to indemnify and hold Seller
harmless against any and all liability, loss, cost, damage or expense (including
reasonable attorney's fees and costs) which Seller may sustain or incur by
reason of such claim; and Seller, if such claim is based upon any agreement
alleged to have been made by Seller, hereby agrees to indemnify and hold Buyer
harmless against any and all liability, loss, cost, damage or expense (including
reasonable attorney's fees and costs) which Buyer may sustain or incur by reason
of such claim. The provisions of this Section shall survive the Closing or the
termination of this Agreement. Buyer and Seller acknowledge that SVN is
representing both parties to the subject transaction as a dual agent.

10.4 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon, and inure to
the benefit of, the parties hereto and their respective successors, heirs,
administrators and assigns. Without being relieved of any liability under this
Agreement, Buyer reserves the right to take title to the Property in a name or
assignee other than Buyer.

10.5 AMENDMENTS. This Agreement may be amended or modified only by a written
instrument executed by Buyer and Seller.

10.6 CONTINUATION AND SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS. The
provisions of this Agreement, including all representations, warranties,
obligations, indemnities, and covenants by or of the respective parties
contained herein, are intended to and shall remain true and correct as of the
Closing Date, and shall survive the execution and delivery of this Agreement,
the delivery of the Deed and transfer of title.

10.7 INTERPRETATION. Words used in the singular number shall include the plural,
and vice-versa, and any gender shall be deemed to include each other gender. The
captions and headings of the Articles and Sections of this Agreement are for
convenience of reference only, and shall not be deemed to define or limit the
provisions hereof.

10.8 GOVERNING LAW AND VENUE. This Agreement shall be governed by and construed
in accordance with the laws of the State of California. Venue for any action
filed in connection with this Agreement shall be in San Mateo County,
California.

10.9 MERGER OF PRIOR AGREEMENTS. This Agreement constitutes the entire agreement
between the parties with respect to the purchase and sale of the Property and
supersedes all prior and contemporaneous agreements and understandings between
the parties hereto relating to the subject matter hereof.

10.10 ATTORNEY'S FEES. In the event of a dispute between the parties to this
Agreement, whether or not resulting in litigation, or if any action at law or in

                                       13
<PAGE>
equity, including an action for declaratory relief, is brought to enforce or
interpret the provisions of this Agreement, the prevailing party (as determined
by the court, agency or other authority before which such suit or proceeding is
commenced) shall, in addition to such other relief as may be awarded, be
entitled to recover attorney's fees and costs as actually incurred (including,
without limitation, attorney's fees and costs incurred (i) in appellate
proceedings, (ii) in establishing any right to indemnification, or (iii) in any
action or participation in, or in connection with, any case or proceeding under
Chapter 7, 11, or 13 of the Bankruptcy Code, 11 United States Code Section 101
ET SEQ., or any successor statutes).

10.11 FACSIMILE SIGNATURES. Buyer and Seller each (i) agrees to permit the use
of telecopied signatures, from time to time, where appropriate and consistent
with Section 10.2, in order to expedite the transaction contemplated by this
Agreement, (ii) intends to be bound by its respective telecopied signature,
(iii) is aware that the other party will rely on the telecopied signature, and
(iv) acknowledges such reliance and waives any defenses to the enforcement of
the documents and notices effecting the transaction contemplated by this
Agreement based on the fact that a signature or notice was sent by telecopy.

10.12  TIME OF THE ESSENCE.  Time is of the essence of this Agreement.

10.13 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which, taken
together, shall constitute a single agreement with the same effect as if all
parties had signed the same signature page. Any signature page from any
counterpart of this Agreement, signed only by one party, may be detached from
such counterpart and re-attached to any other counterpart of this Agreement that
has a signature page signed by another party.

10.14 COOPERATION. Seller and Buyer agree to execute such additional documents
and take such actions as may be reasonable and necessary to carry out the
provisions of this Agreement.

10.15 NO THIRD PARTIES BENEFITED. The parties do not intend to confer any
benefit on any person, firm, or corporation other than Seller and Buyer, except
as and to the extent otherwise expressly provided herein.

10.16  EXHIBITS.  The following exhibits are attached to this Agreement:

         Exhibit A:  Legal Description;
         Exhibit B:  Bill of Sale and Assignment;
         Exhibit C:  General Assignment; and
         Exhibit D:  Form 8594 Asset Acquisition Statement

10.17 DEFAULT NOTICE. Neither party shall be deemed to be in default of this
Agreement except upon the expiration of three business days from receipt of
written notice from the other party specifying the particulars in which such
party has failed to perform its obligations under this Agreement, and such
party, prior to expiration of said three day period, has failed to cure such
default; provided, however, that the foregoing shall not serve to extend the
Closing Date, and either party's failure to participate in the Closing on the
Closing Date as required by the terms of this Agreement shall constitute a
default by such failing party.

                                       14
<PAGE>
10.18 INCORPORATION OF RECITALS. The recitals set forth on page one of this
Agreement are incorporated into this Agreement by this reference.

10.19 EXCHANGE. Seller intends that this transaction qualify as an IRC Section
1031 tax deferred exchange as to Seller's interest in the Property. Buyer shall
perform all acts, execute such documents and otherwise cooperate in structuring
this transaction as a like-kind exchange for the benefit of Seller, in
accordance with the following:

     (a) Buyer shall incur no additional liability or financial obligation as a
consequence of Seller's exchange.

     (b) Such exchange shall in no way increase the amount of monies which Buyer
is obligated to pay under the provisions of this Agreement.

     (c) Buyer shall not be required to take title to any other real property.

     (d) Seller's rights and obligations under this Agreement shall be
assignable to Borel Private Bank & Trust Company as exchange Qualified
Intermediary for the purpose of effecting such exchange.

                    [REMAINDER OF PAGE INTENTIONALLY BLANK -
                             SIGNATURE PAGE FOLLOWS]

                                       15
<PAGE>
                                 SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.

         SELLER:    Richard P. Ruggeri and Judi M. Ruggeri, Trustees of the
                    Richard and Judi Ruggeri Family Trust Dated January 27, 1988

                    By: /s/ Richard P. Ruggieri
                       ------------------------------------
                       Richard P. Ruggeri, Trustee

                    By: /s/Judi M. Ruggieri
                       ------------------------------------
                       Judi M. Ruggeri, Trustee

                       /s/ Robert Ruggeri
                       ------------------------------------
                       Robert Ruggeri

                       /s/ Lisa Ruggeri
                       ------------------------------------
                       Lisa Ruggeri

                    Silver Terrace Nurseries, Inc.

                    By: /s/ Richard P. Ruggieri
                       ------------------------------------
                       Richard P. Ruggeri, President

         BUYER:     American Soil Technologies, Inc.

                    By: /s/ Carl P. Ranno
                       ------------------------------------
                       Carl P. Ranno, President

The undersigned acknowledges receipt of this Agreement and agrees to act as
Escrow Agent hereunder.

                    North American Title Company

                    By /s/
                       ------------------------------------
                       Escrow Officer

                                       16
<PAGE>
                                    EXHIBIT A

                            LEGAL DESCRIPTION OF LAND

DESCRIPTION:

The and referred to herein is situated in the State of California, County of
Mateo, Unincorporated Area, and is described as follows:

PARCEL 2, AS DELINEATED UPON THAT CERTAIN MAP ENTITLED "PARCELMAP OF A
RESUBDIVISION OF THE LANDS OF GIANNINI, BEING PORTIONS OF SECTIONS 10 & 11,T. 8
S., R5 W., M.D.B & M., PESCADERO, SAN MATEO COUNTY, CALIFORNIA", FILED FOR
RECORD IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SAN MATEO, STATE OF
CALIFORNIA, ON JULY 7TH, 1972 IN VOLUME 17 OF THE PARCEL MAPS, AT PAGE 8.

APN:    086-070-050 & 060       JPN:  86-7-70-5 & 6

                                       17
<PAGE>
                                    EXHIBIT B

                                  BILL OF SALE
                                 AND ASSIGNMENT

     For good and valuable consideration, receipt of which is hereby
acknowledged, the undersigned, RICHARD P. RUGGERI AND JUDI M. RUGGERI, TRUSTEES
OF THE RICHARD AND JUDI RUGGERI FAMILY TRUST DATED JANUARY 27, 1988; ROBERT
RUGGERI AND LISA RUGGERI; SILVER TERRACE NURSERIES, INC., a California
corporation ("SELLER"), does hereby, give, grant, bargain, sell, transfer,
assign, convey and deliver to AMERICAN SOIL TECHNOLOGIES, INC., a Nevada
corporation ("BUYER"), all of the Personal Property of Seller described in
Section 1.1(d) of the Purchase and Sale Agreement and Joint Escrow Instructions
dated ______________ between Seller and Buyer, and any claims of Seller in
connection therewith, and all of Seller's right, title and interest in and to
the books and records relating to the operation and management of the buildings
and other improvements on that certain real property commonly known as the real
property commonly known as 450 and 501 North Street, Pescadero, California.

     Seller hereby represents and warrants that it is the lawful owner of all of
the assets transferred hereunder, free and clear of all mortgages, liens or
encumbrances of any nature whatsoever, and that Seller will warrant and defend
the same against the claims and demands of any and all persons, firms and
entities.

     Seller hereby covenants that it will, at any time and from time to time
upon written request therefor, execute and deliver to Buyer, any new or
confirmatory instruments and do and perform any other acts reasonably required
in order to fully assign and transfer to and vest in Buyer all of the assets of
Seller intended to be transferred and assigned hereby.

     All references to "SELLER" and "BUYER" herein shall be deemed to include
their respective heirs, representatives, nominees, successors and/or assigns,
where the context permits.

                            [SIGNATURE PAGE FOLLOWS]

                                       18
<PAGE>
         Dated: NOVEMBER 27, 2007.

          SELLER:  Richard P. Ruggeri and Judi M. Ruggeri, Trustees of the
                   Richard and Judi Ruggeri Family Trust Dated January 27, 1988;

                   By: /s/ Richard P. Ruggieri
                       ------------------------------------
                       Richard P. Ruggeri, Trustee

                   By: /s/Judi M. Ruggieri
                       ------------------------------------
                       Judi M. Ruggeri, Trustee

                       /s/ Robert Ruggeri
                       ------------------------------------
                       Robert Ruggeri

                       /s/ Lisa Ruggeri
                       ------------------------------------
                       Lisa Ruggeri

                   Silver Terrace Nurseries, Inc.

                   By: /s/ Richard P. Ruggieri
                       ------------------------------------
                       Richard P. Ruggeri, President

                                       19
<PAGE>
                                   EXHIBIT C

                               GENERAL ASSIGNMENT

     THIS GENERAL ASSIGNMENT ("ASSIGNMENt")is made as of ____________________,
by RICHARD P. RUGGERI AND JUDI M. RUGGERI, TRUSTEES OF THE RICHARD AND JUDI
RUGGERI FAMILY TRUST DATED JANUARY 27, 1988; ROBERT RUGGERI AND LISA RUGGERI;
SILVER TERRACE NURSERIES, INC., a California corporation ("ASSIGNOR") in favor
of AMERICAN SOIL TECHNOLOGIES, INC., a Nevada corporation ("ASSIGNEE").

                                    RECITALS

     A. Assignor is contemporaneously herewith selling, pursuant to that certain
Purchase and Sale Agreement and Joint Escrow Instructions dated as of
_____________, by and between Assignor and Assignee (the "PURCHASE AGREEMENt"),
that certain real property commonly known as the real property commonly known as
450 and 501 North Street, Pescadero, California (the "REAL PROPERTY"). Terms
used in this Assignment and not otherwise defined shall be given the meanings
defined in the Purchase Agreement.

     B. Assignor desires to assign its interest in and to the Assigned Interests
described below to Assignee as of the date on which title to the Real Property
is vested in Assignee (the "TRANSFER DATE").

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Assignor hereby agrees as follows:

     1. ASSIGNMENT. As of the Transfer Date, Assignor hereby assigns and
transfers to Assignee all of Assignor's right, title, claim and interest in, to
and under the following (collectively the "ASSIGNED Interests"):

     a. INTANGIBLE PROPERTY. All of the Intangible Property described in Section
1.1(e) of the Purchase Agreement.

     b. PLANS AND PERMITS. All of the Plans and Permits described in Section
1.1(g) of the Purchase Agreement.

     2. WARRANTIES. Assignee acknowledges that Assignor is executing this
Assignment without representation, warranty, covenant or agreement of any kind
or nature, express or implied, except to the extent expressly set forth in the
Purchase Agreement.

     3. FURTHER ASSURANCES. Assignor hereby covenants that it will, at any time
and from time to time upon written request therefor, execute and deliver to
Assignee, its nominees, successor and/or assigns, any new or confirmatory
instruments and do and perform any other acts which Assignee, its nominees,
successors and/or assigns, may request in order to fully assign and transfer to
and vest in Assignee, its nominees, successors and/or assigns, and protect its
or their rights, title and interest in and enjoyment of, all of the Assigned
Interests.

                                       20
<PAGE>
     4. SUCCESSORS. This Assignment shall be binding on and inure to the benefit
of Assignee and Assignor, and all references to "ASSIGNEE" and "ASSIGNOR" shall
include, their respective heirs, representatives, nominees, successors and/or
assigns.

     IN WITNESS WHEREOF, Assignor has executed this Assignment as of the date
first above written.

     ASSIGNOR:     RICHARD P. RUGGERI AND JUDI M. RUGGERI, TRUSTEES OF THE
                   RICHARD AND JUDI RUGGERI FAMILY TRUST DATED JANUARY 27, 1988;
                   ROBERT RUGGERI AND LISA RUGGERI; SILVER TERRACE NURSERIES,
                   INC., a California corporation

                   Richard P. Ruggeri and Judi M. Ruggeri, Trustees of the
                   Richard and Judi Ruggeri Family Trust Dated January 27, 1988;

                   By: /s/ Richard P. Ruggieri
                       ------------------------------------
                       Richard P. Ruggeri, Trustee

                   By: /s/ Judi M. Ruggieri
                       ------------------------------------
                       Judi M. Ruggeri, Trustee

                       /s/ Robert Ruggeri
                       ------------------------------------
                       Robert Ruggeri

                       /s/ Lisa Ruggeri
                       ------------------------------------
                       Lisa Ruggeri

                   Silver Terrace Nurseries, Inc.

                   By: /s/ Richard P. Ruggieri
                       ------------------------------------
                       Richard P. Ruggeri, President

                                       21
<PAGE>
                                    EXHIBIT D
                           ASSET ACQUISITION STATEMENT
                                   (FORM 8594)

                                       22

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