Document:

e6663432c.htm

EXHIBIT 10.17

MANAGEMENT AGREEMENT

 

AGREEMENT made as of the 31st day of May, 2011 among CERES MANAGED FUTURES LLC, a Delaware limited liability company (“CMF” or the “General Partner”), EMERGING CTA PORTFOLIO L.P., a New York limited partnership (the “Partnership”) and WILLOWBRIDGE ASSOCIATES INC., a Delaware corporation (the “Advisor”).

 

W I T N E S S E T H :

 

WHEREAS, CMF is the general partner of the Partnership, a limited partnership organized for the purpose of speculative trading of commodity interests, including futures contracts, options, forward contracts, swaps and other derivative instruments with the objective of achieving substantial capital appreciation; and

 

WHEREAS, the Amended and Restated Limited Partnership Agreement dated as of October 20, 2010 (the “Partnership Agreement”), permits CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions for the Partnership, which advisors may or may not have any prior experience managing client funds; and

 

WHEREAS, the Advisor is registered as a commodity trading advisor with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”); and

 

WHEREAS, CMF is registered as a commodity pool operator with the CFTC and is a member of the NFA; and

 

WHEREAS, CMF, the Partnership and the Advisor wish to enter into this Agreement in order to set forth the terms and conditions upon which the Advisor will render and implement advisory services in connection with the conduct by the Partnership of its commodity trading activities during the term of this Agreement;

 

NOW, THEREFORE, the parties agree as follows:

 

1. DUTIES OF THE ADVISOR.  (a) For the period and on the terms and conditions of this Agreement, the Advisor shall have sole authority and responsibility, as one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of the assets and funds of the Partnership allocated to it by the General Partner in commodity interests, including commodity futures contracts, options, forward contracts, swaps and other derivative instruments.  All such trading on behalf of the Partnership shall be in accordance with the trading policies set forth in the Partnership’s Private Placement Memorandum dated October 2010, as supplemented (the “Memorandum”), as such trading policies may be changed from time to time upon receipt by the Advisor of prior written notice of such change, and pursuant to the trading strategy selected by CMF to be utilized by the Advisor in managing the Partnership’s assets.  CMF has initially selected the Advisor’s wPraxis Futures Trading Approach (the “wPraxis Program”) and MStrategy Trading Approach (the “MStrat Program” and together with the wPraxis Program, the “Programs”) to manage the Partnership’s assets allocated to it.  Any open positions or other investments at the time of receipt of such notice of a change in trading policy shall not be deemed to violate the changed policy and shall be closed or sold in the ordinary course of trading.  The Advisor may not deviate from the trading policies set forth in the Memorandum without the prior written consent of the Partnership given by CMF.  The Advisor makes no representation or warranty that the trading to be directed by it for the Partnership will be profitable or will not incur losses.

 

 

  

  

  

 

(b) CMF acknowledges receipt of the Advisor’s Disclosure Document dated August 23, 2010 as filed with the NFA (the “Disclosure Document”).  All trades made by the Advisor for the account of the Partnership shall be made through such commodity broker or brokers as CMF shall direct, and the Advisor shall have no authority or responsibility for selecting or supervising any such broker in connection with the execution, clearance or confirmation of transactions for the Partnership or for the negotiation of brokerage rates charged therefore.  However, the Advisor, with the prior written permission (by original, fax copy or email copy) of CMF, may direct all trades in commodity futures and options to a futures commission merchant or independent floor broker it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the futures commission merchant or independent floor broker and any give-up or floor brokerage fees are approved in advance by CMF.  All give-up or similar fees relating to the foregoing shall be paid by the Partnership after all parties have executed the relevant give-up agreements (by original, fax copy or email copy) and the Advisor shall have no responsibility for such payment.  CMF will cause the Partnership’s commodity brokers to provide the Advisor with copies of all confirmation, purchase and sale, monthly and similar statements at the time such statements are available to CMF.

 

(c) The initial allocation of the Partnership’s assets to the Advisor will be made to the Advisor’s Programs, as described in the attached Appendix A.  In the event the Advisor wishes to use a trading system or methodology other than or in addition to the Programs in connection with its trading for the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF prior written notice of its intention to utilize such different trading system or methodology and CMF consents thereto in writing.  In addition, the Advisor will provide five days’ prior written notice to CMF of any change in the trading system or methodology to be utilized for the Partnership which the Advisor deems material.  If the Advisor deems such change in system or methodology or in markets traded to be material, the changed system or methodology or markets traded will not be utilized for the Partnership without the prior written consent of CMF.  In addition, the Advisor will notify CMF of any changes to the trading system or methodology that would require a change in the description of the trading strategy or methods described in the Disclosure Document to be materially inaccurate.  Non-material changes in the trading systems utilized on behalf of the Partnership may be instituted without prior written approval.  Further, the Advisor will provide the Partnership with a current list of all commodity interests to be traded for the Partnership’s account and the Advisor will not trade any additional commodity interests for such account without providing notice thereof to CMF and receiving CMF’s written approval.  The Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets under the Advisor’s management together with all other matters deemed by the Advisor to be material changes to its business not previously reported to CMF.  The Advisor further agrees that it will convert foreign currency balances (not required to margin positions denominated in a foreign currency) to U.S. dollars no less frequently than monthly.  U.S. dollar equivalents in individual foreign currencies of more than $100,000 will be converted to U.S. dollars within one business day after such funds are no longer needed to margin foreign positions.  The parties acknowledge that if Net Assets (as defined in Section 3(b) hereof) of the Partnership under the Advisor’s management fall below $750,000 the Advisor may not be able to trade the Programs in full.

 

 

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(d) The Advisor agrees to make all material disclosures to the Partnership regarding itself and its principals as defined in Part 4 of the CFTC’s regulations (“principals”), shareholders, directors, officers and employees, their trading performance and general trading methods, its customer accounts (but not the identities of or identifying information with respect to its customers or other information deemed by the Advisor to be proprietary and confidential) and otherwise as are required in the reasonable judgment of CMF to be made in any filings required by federal or state law or NFA rule or order.  Notwithstanding Sections 1(d) and 4(d) of this Agreement, the Advisor shall not be required to disclose the actual trading results of proprietary accounts of the Advisor or its principals unless CMF reasonably determines that such disclosure is required in order to fulfill its fiduciary obligations to the Partnership or the reporting, filing or other obligations imposed on it by federal or state law or NFA rule or order.  The Partnership and CMF acknowledge that the trading advice to be provided by the Advisor is a property right belonging to the Advisor and that they will keep all such advice confidential.  Neither CMF nor the Partnership shall distribute, except to officers, directors, employees, partners or affiliates of CMF or the Partnership, any description of the Advisor, its principals, or its or their trading performance without the prior written consent of the Advisor, which consent shall not be unreasonably withheld.

 

(e) The Advisor understands and agrees that CMF may designate other trading advisors for the Partnership and apportion or reapportion to such other trading advisors the management of an amount of Net Assets as it shall determine in its absolute discretion.  The designation of other trading advisors and the apportionment or reapportionment of Net Assets to any such trading advisors pursuant to this Section 1 shall neither terminate this Agreement nor modify in any regard the respective rights and obligations of the parties hereunder.

 

(f) CMF may, from time to time, in its absolute discretion, select additional trading advisors and reapportion funds among the trading advisors for the Partnership as it deems appropriate.  CMF shall use its best efforts to make reapportionments, if any, as of the first day of a month.  The Advisor agrees that it may be called upon at any time promptly to liquidate positions in CMF’s sole discretion so that CMF may reallocate the Partnership’s assets, meet margin calls on the Partnership’s account, fund redemptions, or for any other reason, except that CMF will not require the liquidation of specific positions by the Advisor.  CMF will use its best efforts to give two days’ prior notice to the Advisor of any reallocations or liquidations.

 

(g) The Advisor will not be liable for trading losses in the Partnership’s account including losses caused by errors; provided, however, that (i) the Advisor will be liable to the Partnership with respect to losses incurred due to errors committed or caused by it or any of its principals or employees in communicating improper trading instructions or orders to any broker on behalf of the Partnership and (ii) the Advisor will be liable to the Partnership with respect to losses incurred due to errors committed or caused by any executing broker (other than any CMF affiliate) selected by the Advisor, it being understood that CMF, with the assistance of the Advisor, will first attempt to recover such losses from the executing broker.

 

 

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2. INDEPENDENCE OF THE ADVISOR.  For all purposes herein, the Advisor shall be deemed to be an independent contractor and, unless otherwise expressly provided or authorized, shall have no authority to act for or represent the Partnership in any way and shall not be deemed an agent, promoter or sponsor of the Partnership, CMF, or any other trading advisor.  The Advisor shall not be responsible to the Partnership, the General Partner, any trading advisor or any limited partners for any acts or omissions of any other trading advisor to the Partnership.

 

3. COMPENSATION.  (a) In consideration of and as compensation for all of the services to be rendered by the Advisor to the Partnership under this Agreement, the Partnership shall pay the Advisor (i) an incentive fee payable quarterly equal to 20% of New Trading Profits (as such term is defined below) earned by the Advisor for the Partnership and (ii) a monthly fee for professional management services equal to 1% per year of the month-end Net Assets of the Partnership allocated to the Advisor (computed monthly by multiplying the adjusted net assets of the Fund allocated to the Advisor as of the last business day of each month by 1% and dividing the result thereof by 12).

 

(b) “Net Assets” shall have the meaning set forth in Section 7(d)(1) of the Partnership Agreement and without regard to further amendments thereto, provided that in determining the Net Assets of the Partnership on any date, no adjustment shall be made to reflect any distributions, redemptions or incentive fees payable as of the date of such determination.

 

(c) “New Trading Profits” shall mean the excess, if any, of Net Assets managed by the Advisor at the end of the quarter over Net Assets managed by the Advisor at the end of the highest previous quarter or Net Assets allocated to the Advisor at the date trading commences, whichever is higher, and as further adjusted to eliminate the effect on Net Assets resulting from new capital contributions, redemptions, reallocations or capital distributions, if any, made during the fiscal quarter decreased by interest or other income, not directly related to trading activity, earned on the Partnership’s assets during the fiscal quarter, whether the assets are held separately or in margin accounts.  Ongoing expenses shall be attributed to the Advisor based on the Advisor’s proportionate share of Net Assets.  Ongoing expenses will not include expenses of litigation not involving the activities of the Advisor on behalf of the Partnership.  Interest income earned, if any, will not be taken into account in computing New Trading Profits earned by the Advisor.  If Net Assets allocated to the Advisor are reduced due to redemptions, distributions or reallocations (net of additions), there will be a corresponding proportional reduction in the related loss carryforward amount that must be recouped before the Advisor is eligible to receive another incentive fee.

 

(d) Quarterly incentive fees and monthly management fees shall be paid within twenty (20) business days following the end of the period for which such fee is payable.  In the event of the termination of this Agreement as of any date which shall not be the end of a calendar quarter or a calendar month, as the case may be, the quarterly incentive fee shall be computed as if the effective date of termination were the last day of the then current quarter and the monthly management fee shall be prorated to the effective date of termination.  If, during any month, the Partnership does not conduct business operations or the Advisor is unable to provide the services contemplated herein for more than two successive business days, the monthly management fee shall be prorated by the ratio which the number of business days during which CMF conducted the Partnership’s business operations or utilized the Advisor’s services bears in the month to the total number of business days in such month.  No incentive fee shall be paid to the Advisor until the end of the first calendar quarter of the Advisor’s trading for the Partnership, which incentive fee shall be based on New Trading Profits, if any, earned from the commencement of trading by the Advisor on behalf of the Partnership through the end of the first calendar quarter of such trading.

 

 

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(e) The provisions of this Section 3 shall survive the termination of this Agreement.

 

4. RIGHT TO ENGAGE IN OTHER ACTIVITIES.  (a) Except as otherwise provided herein, the services provided by the Advisor hereunder are not to be deemed exclusive.  CMF on its own behalf and on behalf of the Partnership acknowledges that, subject to the terms of this Agreement, the Advisor and its officers, directors, employees and shareholder(s), may render advisory, consulting and management services to other clients and accounts.  The Advisor and its officers, directors, employees and shareholder(s) shall be free to trade for their own accounts and to advise other investors and manage other commodity accounts during the term of this Agreement and to use the same information, computer programs and trading strategies, programs or formulas which they obtain, produce or utilize in the performance of services to CMF for the Partnership.  However, the Advisor represents, warrants and agrees that it believes the rendering of such consulting, advisory and management services to other accounts and entities will not require any material change in the Advisor’s basic trading strategies and will not affect the capacity of the Advisor to continue to render services to CMF for the Partnership of the quality and nature contemplated by this Agreement.

 

(b) If, at any time during the term of this Agreement, the Advisor is required to aggregate the Partnership’s commodity positions with the positions of any other person for purposes of applying CFTC- or exchange-imposed speculative position limits, the Advisor agrees that it will promptly notify CMF in writing if the Partnership’s positions are included in an aggregate amount which exceeds the applicable speculative position limit.  The Advisor agrees that, if its trading recommendations are altered because of the application of any speculative position limits, it will not modify the trading instructions with respect to the Partnership’s account in such manner as to affect the Partnership substantially disproportionately as compared with the Advisor’s other accounts.  The Advisor further represents, warrants and agrees that under no circumstances will it knowingly or deliberately use trading programs, strategies or methods for the Partnership that are inferior to strategies or methods employed for any other client or account whose assets are traded pursuant to the Programs and that it will not knowingly or deliberately favor any client or account managed by it over any other client or account whose assets are traded pursuant to the Programs in any manner, it being acknowledged, however, that different trading programs, strategies or methods may be utilized for differing sizes of accounts, accounts traded with different degrees of leverage accounts with different trading policies, accounts experiencing differing inflows or outflows of equity, accounts that commence trading at different times, accounts that have different portfolios or different fiscal years, accounts utilizing different executing brokers and accounts with other differences, and that such differences may cause divergent trading results.

 

 

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(c) It is acknowledged that the Advisor and/or its officers, employees, directors and shareholder(s) presently act, and it is agreed that they may continue to act, as advisor for other accounts managed by them, and may continue to receive compensation with respect to services for such accounts in amounts which may be more or less than the amounts received from the Partnership.

 

(d) The Advisor agrees that it shall make such information available to CMF respecting the performance of the Partnership’s account as compared to the performance of other accounts managed by the Advisor or its principals, if any, as shall be reasonably requested by CMF, provided that nothing contained herein shall be deemed to require the Advisor to disclose the names of other customers or information that the Advisor deems to be proprietary or confidential.  The Advisor presently believes and represents that existing speculative position limits will not materially adversely affect its ability to manage the Partnership’s account given the potential size of the Partnership’s account and the Advisor’s and its principals’ current accounts and all proposed accounts for which they have contracted to act as trading advisor.

 

5. TERM.  (a) This Agreement shall continue in effect until June 30, 2012.  CMF may, in its sole discretion, renew this Agreement for additional one-year periods upon notice to the Advisor not less than 30 days prior to the expiration of the previous period.  After June 30, 2012, CMF may terminate this Agreement at any month-end upon 30 days’ notice to the Advisor.  At any time during the term of this Agreement, CMF may elect to immediately terminate this Agreement upon 5 days’ notice to the Advisor if (i) the Net Asset Value per Unit shall decline as of the close of business on any day to $400 or less; (ii) the Net Assets allocated to the Advisor (adjusted for redemptions, distributions, withdrawals or reallocations, if any) decline by 20% or more as of the end of a trading day from such Net Assets’ previous highest value; (iii) limited partners owning at least 50% of the outstanding units of the Partnership shall vote to require CMF to terminate this Agreement; (iv) the Advisor fails to comply with the terms of this Agreement; (v) CMF, in good faith, reasonably determines that the performance of the Advisor has been such that CMF’s fiduciary duties to the Partnership require CMF to terminate this Agreement; (vi) CMF reasonably believes that the application of speculative position limits will substantially affect the performance of the Partnership; or (vii) the Advisor fails to conform to the trading policies set forth in the Memorandum as they may be changed and notified to the Advisor from time to time.  At any time during the term of this Agreement, CMF may elect immediately to terminate this Agreement if (i) the Advisor merges, consolidates with another entity, sells a substantial portion of its assets, or becomes bankrupt or insolvent, (ii) Philip Yang and Frank Marrapodi both die, become incapacitated, leave the employ of the Advisor, cease to control the Advisor or are otherwise not managing the trading programs or systems of the Advisor, (iii) the Advisor’s registration as a commodity trading advisor with the CFTC or its membership in the NFA or any other regulatory authority, is terminated or suspended; or (iv) CMF reasonably believes that the Advisor has or may contribute to any material operational, business, or reputational risk to CMF or CMF’s affiliates.  This Agreement will immediately terminate upon dissolution of the Partnership or upon cessation of trading prior to dissolution.

 

(b) The Advisor may terminate this Agreement by giving not less than 30 days’ notice to CMF (i) in the event that the trading policies of the Partnership as set forth in the Memorandum are changed in such manner that the Advisor reasonably believes will adversely affect the performance of its trading strategies; (ii) after June 30, 2012; or (iii) in the event that the General Partner or Partnership fails to comply with the terms of this Agreement.  The Advisor may immediately terminate this Agreement if (i) Net Assets of the Company under the Advisor’s management falls below $750,000; or (ii) CMF’s registration as a commodity pool operator or its membership in the NFA is terminated or suspended.

 

 

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(c) Except as otherwise provided in this Agreement, any termination of this Agreement in accordance with this Section 5 shall be without penalty or liability to any party, except for any fees due to the Advisor pursuant to Section 3 hereof.

 

6. INDEMNIFICATION.  (a)(i) In any threatened, pending or completed action, suit, or proceeding to which the Advisor was or is a party or is threatened to be made a party arising out of or in connection with this Agreement or the management of the Partnership’s assets by the Advisor or the offering and sale of units in the Partnership, CMF shall, subject to subsection (a)(iii) of this Section 6, indemnify and hold harmless the Advisor against any loss, liability, damage, fine, penalty, obligation, cost, expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and other legal expenses), judgments and awards and amounts paid in settlement actually and reasonably incurred by it in connection with such action, suit, or proceeding if the Advisor acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership, and provided that its conduct did not constitute negligence, bad faith, intentional misconduct, or a breach of its fiduciary obligations to the Partnership as a commodity trading advisor, unless and only to the extent that the court or administrative forum in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all circumstances of the case, the Advisor is fairly and reasonably entitled to indemnity for such expenses which such court or administrative forum shall deem proper; and further provided that no indemnification shall be available from the Partnership if such indemnification is prohibited by Section 16 of the Partnership Agreement.  The termination of any action, suit or proceeding by judgment, order or settlement shall not, of itself, create a presumption that the Advisor did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership.

 

(ii) Without limiting subsection (i) above, to the extent that the Advisor has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsection (i) above, or in defense of any claim, issue or matter therein, CMF shall indemnify the Advisor against the expenses (including, without limitation, attorneys’ and accountants’ fees) actually and reasonably incurred by it in connection therewith.

 

(iii) Any indemnification under subsection (i) above, unless ordered by a court, arbitrator or administrative forum, shall be made by CMF only as authorized in the specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is proper in the circumstances because the Advisor has met the applicable standard of conduct set forth in subsection (i) above.  Such independent legal counsel shall be selected by CMF in a timely manner, subject to the Advisor’s approval, which approval shall not be unreasonably withheld.  The Advisor will be deemed to have approved CMF’s selection unless the Advisor notifies CMF in writing, received by CMF within five days of CMF’s telecopying to the Advisor of the notice of CMF’s selection, that the Advisor does not approve the selection.

 

 

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(iv) In the event the Advisor is made a party to any claim, dispute or litigation or otherwise incurs any loss or expense as a result of, or in connection with, the Partnership’s or CMF’s activities or claimed activities unrelated to the Advisor, CMF shall indemnify, defend and hold harmless the Advisor against any loss, liability, damage, cost or expense (including, without limitation, attorneys’ and accountants’ fees) incurred in connection therewith.

 

(v) As used in this Section 6(a), the term “Advisor” shall include the Advisor, its principals, officers, directors, stockholders and employees and the term “CMF” shall include the Partnership.

 

(b) (i) The Advisor agrees to indemnify, defend and hold harmless CMF, the Partnership and their affiliates against any loss, liability, damage, fine, penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and other legal expenses), judgments and awards and amounts paid in settlement reasonably incurred by them (A) as a result of the breach of any representations and warranties or covenants made by the Advisor in this Agreement, or (B) as a result of any act or omission of the Advisor relating to the Partnership if (i) there has been a final judicial or regulatory determination, a written opinion of an arbitrator pursuant to Section 14 hereof, to the effect that such acts or omissions violated the terms of this Agreement in any material respect or involved negligence, bad faith or intentional misconduct on the part of the Advisor (except as otherwise provided in Section 1(g)), or (ii) there has been a settlement of any action or proceeding with the Advisor’s prior written consent.

 

(ii) In the event CMF, the Partnership or any of their affiliates is made a party to any claim, dispute or litigation or otherwise incurs any loss or expense as a result of, or in connection with, the activities or claimed activities of the Advisor or its principals, officers, directors, shareholder(s) or employees unrelated to CMF’s or the Partnership’s business, the Advisor shall indemnify, defend and hold harmless CMF, the Partnership or any of their affiliates against any loss, liability, damage, fine, penalty obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and other legal expenses), judgments, awards and amounts including amounts paid in settlement incurred in connection therewith.

 

(iii)           Neither Philip Yang nor Frank Marrapodi shall have any liability to the Partnership or CMF or any of their respective officers, directors, employees, partners or affiliates under this Agreement or in connection with the transactions contemplated by this Agreement except in the case of his own fraud or willful misconduct.

 

(iv)           Any indemnification under subsection (b)(i) above, unless ordered by a court, arbitrator or administrative forum, shall be made by the Advisor only as authorized in the specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is proper in the circumstances.  Such independent legal counsel shall be selected by the Advisor in a timely manner, subject to CMF’s approval, which approval shall not be unreasonably withheld.  CMF will be deemed to have approved the Advisor’s selection unless CMF notifies the Advisor in writing, received by the Advisor within five days of the Advisor’s facsimile to CMF of the notice of the Advisor’s selection, that CMF does not approve the selection.

 

 

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(c) In the event that a person entitled to indemnification under this Section 6 is made a party to an action, suit or proceeding alleging both matters for which indemnification can be made hereunder and matters for which indemnification may not be made hereunder, such person shall be indemnified only for that portion of the loss, liability, damage, cost or expense incurred in such action, suit or proceeding which relates to the matters for which indemnification can be made.

 

(d) None of the indemnifications contained in this Section 6 shall be applicable with respect to default judgments, confessions of judgment or settlements entered into by the party claiming indemnification without the prior written consent, which shall not be unreasonably withheld, of the party obligated to indemnify such party.

 

(e) The provisions of this Section 6 shall survive the termination of this Agreement.

 

7. REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

 

(a) The Advisor represents and warrants that:

 

(i) All references to the Advisor and its principals in the Disclosure Document, and the description of the Programs provided in Appendix A, are complete and accurate in all material respects and as to them the Disclosure Document does not contain any untrue statement of a material fact or omit to state a material fact which is necessary to make the statements therein not misleading.  All references to the Advisor and its principals, if any, in the Memorandum or a supplement thereto will, after review and approval of such references by the Advisor prior to the use of such Memorandum in connection with the offering of the Partnership’s units, be accurate in all material respects, except that with respect to pro forma or hypothetical performance information in such Memorandum, if any, this representation and warranty extends only to any underlying data made available by the Advisor for the preparation thereof and not to any hypothetical or pro forma adjustments, it being understood that CMF does not currently intend to include any identifying information about the Advisor in the Memorandum.

 

(ii) The Advisor will be acting as a commodity trading advisor with respect to the Partnership and not as a securities investment adviser and is duly registered with the CFTC as a commodity trading advisor, is a member of the NFA, and is in compliance with such other registration and licensing requirements as shall be necessary to enable it to perform its obligations hereunder, and agrees to maintain and renew such registrations and licenses during the term of this Agreement.

 

(iii) The Advisor is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has full corporate power and authority to enter into this Agreement and to provide the services required of it hereunder.

 

 

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(iv) The Advisor will not, by acting as a commodity trading advisor to the Partnership, breach or cause to be breached any undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound.

 

(v) This Agreement has been duly and validly authorized, executed and delivered by the Advisor and is a valid and binding agreement enforceable in accordance with its terms.

 

(vi) At any time during the term of this Agreement that a prospectus relating to the Partnership units is required to be delivered in connection with the offer and sale thereof, the Advisor agrees upon the request of CMF to provide the Partnership with such information as shall be necessary so that, as to the Advisor and its principals, such prospectus is accurate.

 

(b) CMF represents and warrants for itself and the Partnership that:

 

(i) The Memorandum (as from time to time amended or supplemented, which amendment or supplement shall be approved by the Advisor as to descriptions, if any, of itself and its actual performance) does not contain any untrue statement of a material fact or omit to state a material fact which is necessary to make the statements therein not misleading, except that the foregoing representation does not apply to any statement or omission concerning the Advisor, if any, in the Memorandum, made in reliance upon, and in conformity with, information furnished to CMF by or on behalf of the Advisor expressly for use in the Memorandum (it being understood that any hypothetical and pro forma adjustments will not be furnished by the Advisor).

 

(ii) CMF is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has full limited liability company power and authority to perform its obligations under this Agreement.

 

(iii) CMF and the Partnership have the capacity and authority to enter into this Agreement on behalf of the Partnership.

 

(iv) This Agreement has been duly and validly authorized, executed and delivered on CMF’s and the Partnership’s behalf and is a valid and binding agreement of CMF and the Partnership enforceable in accordance with its terms.

 

(v) CMF will not, by acting as general partner to the Partnership and the Partnership will not, breach or cause to be breached any undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound which would materially limit or affect the performance of its duties under this Agreement.

 

(vi) CMF is registered as a commodity pool operator and is a member of the NFA, and is in compliance with such other registration and licensing requirements as shall be necessary to enable it to perform its obligations hereunder, and agrees to maintain and renew such registrations and licenses during the term of this Agreement.

 

 

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(vii) The Partnership is a limited partnership duly organized and validly existing under the laws of the State of New York and has full limited partnership power and authority to enter into this Agreement and to perform its obligations under this Agreement.

 

(viii) The Partnership is a qualified eligible person under CFTC Rule 4.7 and consents to the Advisor treating it as such.

 

8. COVENANTS OF THE ADVISOR, CMF AND THE PARTNERSHIP.

 

(a) The Advisor agrees as follows:

 

(i) In connection with its activities on behalf of the Partnership, the Advisor will comply with all applicable laws, including rules and regulations of the CFTC and/or the commodity exchange on which any particular transaction is executed.

 

(ii) The Advisor will promptly notify CMF of the commencement of any material investigation, suit, action or proceeding involving the Advisor or any of its affiliates, officers, directors, employees, agents or representatives; regardless of whether such investigation, suit, action or proceeding also involves CMF.  The Advisor will provide CMF with copies of any correspondence (including, but not limited to, any notice or correspondence regarding the violation, or potential violation, of position limits) from or to the CFTC, NFA or any commodity exchange in connection with an investigation or audit of the Advisor’s business activities (excluding routine NFA audits).

 

(iii) In the placement of orders for the Partnership’s account and for the accounts of any other client, the Advisor will utilize a pre-determined, systematic, fair and reasonable order entry system, which shall, on an overall basis, be no less favorable to the Partnership than to any other account managed by the Advisor.  The Advisor acknowledges its obligation to review the Partnership’s positions, prices and equity in the account managed by the Advisor daily and within two business days to notify, in writing, the broker and CMF and the Partnership’s brokers of (A) any error committed by the Advisor or its principals or employees; (B) any trade which the Advisor believes was not executed in accordance with its instructions; and (C) any discrepancy with a value of $10,000 or more (due to differences in the positions, prices or equity in the account) between its records and the information reported on the account’s daily and monthly broker statements.

 

(iv) The Advisor will maintain a net worth of not less than $250,000 during the term of this Agreement.

 

(v)           The Advisor intends to use its best efforts to close out all futures positions prior to any applicable delivery period, and will use its best efforts to avoid causing the Partnership to take delivery of any commodity.

 

(b) CMF agrees for itself and the Partnership that:

 

(i) CMF and the Partnership will comply with all applicable laws, including rules and regulations of the CFTC, NFA and/or the commodity exchange on which any particular transaction is executed.

 

 

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(ii) CMF will promptly notify the Advisor of the commencement of any material suit, action or proceeding involving it or the Partnership, whether or not such suit, action or proceeding also involves the Advisor.

 

(iii)           CMF will be responsible for compliance with the USA Patriot Act  and related anti-money-laundering regulations with respect to the Partnership and its limited partners.

 

9. COMPLETE AGREEMENT.  This Agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof.

 

10. ASSIGNMENT.  This Agreement may not be assigned by any party without the express written consent of the other parties.

 

11. AMENDMENT.  This Agreement may not be amended except by the written consent of the parties.

 

12. NOTICES.  All notices, demands or requests required to be made or delivered under this Agreement shall be effective upon actual receipt and shall be made either by electronic mail (or email) copy or in writing and delivered personally, by facsimile or by registered or certified mail or expedited courier, return receipt requested, postage prepaid, to the addresses below or to such other addresses as may be designated by the party entitled to receive the same by notice similarly given:

 

If to CMF or to the Partnership:

 

Ceres Managed Futures LLC

522 Fifth Avenue, 14th Floor

New York, New York  10036

Attention:  Jennifer Magro

Email:  Jennifer.magro@morganstanleysmithbarney.com

 

If to the Advisor:

 

Willowbridge Associates Inc.

101 Morgan Lane, Suite 180

Plainsboro, New Jersey  08536

Attention:  Richard G. Faux

Email:  rfaux@willowbridge.com; jkioko@willowbridge.com

 

with a copy to:

 

Ropes & Gray LLP

111 South Wacker Drive, 46th Floor

Chicago, Illinois  60606

Attention:  Deborah A. Monson

Email:  deborah.monson@ropesgray.com

 

 

- 12 -

  

  

 

13. GOVERNING LAW.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to principles of conflicts of law.

 

14. ARBITRATION.  The parties agree that any dispute or controversy arising out of or relating to this Agreement or the interpretation thereof, shall be settled by arbitration in accordance with the rules, then in effect, of the NFA or, if the NFA shall refuse jurisdiction, then in accordance with the rules, then in effect, of the American Arbitration Association; provided, however, that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator shall state in writing his reasons for his award, and further provided, that any such arbitration shall occur within the Borough of Manhattan in New York City.  Judgment upon any award made by the arbitrator may be entered in any court of competent jurisdiction.

 

15. CONFIDENTIALITY.  Nothing in this Agreement shall require the Advisor to disclose the details of its trading system, methods, models, strategies and formulas.  CMF and the Partnership acknowledge that the trading systems, methods, models, strategies and formulas of the Advisor are the sole and exclusive property of the Advisor; CMF and the Partnership further agree that it will keep confidential and will not disseminate information regarding such systems, methods, models, strategies and formulas to any person.  CMF and the Partnership will use any such information solely to evaluate and monitor the Advisor’s services described herein and not for any other purpose.

 

16. NO THIRD PARTY BENEFICIARIES.  There are no third  party beneficiaries to this Agreement, except that certain persons not parties to this Agreement have rights under Section 6 hereof.

 

17.  COUNTERPARTS.  This Agreement may be executed in any number of counterparts, including via facsimile, each of which is an original and all of which when taken together evidence the same agreement.

 

 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

 

- 13 -

  

  

PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION.  THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE.  CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS ACCOUNT DOCUMENT.

 

IN WITNESS WHEREOF, this Agreement has been executed for and on behalf of the undersigned as of the day and year first above written.

 

CERES MANAGED FUTURES LLC

 

	
  

	
By

	
/s/ Walter Davis                                 

Walter Davis

President and Director

 

 

EMERGING CTA PORTFOLIO L. P.

 

By:  Ceres Managed Futures LLC

        (General Partner)

 

	
  

	
By

	
/s/ Walter Davis                                

Walter Davis

President and Director

 

 

WILLOWBRIDGE ASSOCIATES INC.

 

	
  

	
    By

	
/s/ Steven R. Crane                         

Steven R. Crane

Senior Vice President

 

 

- 14 -

  

  

 

APPENDIX A

 

The MStrategy Trading Approach

 

The MStrategy Trading Approach is a discretionary trading approach through which Willowbridge Trading Principal and Chief Risk Officer, Michael Gan, uses extensive technical analysis and quantitative methodologies as the foundation for trading decisions.  MStrategy trades a diversified portfolio of exchange-traded futures contracts and options on futures including commodities, currencies, fixed income and equity indices.  There is a special focus on short-term movements, especially with regard to equity indices trading.  The approach combines Mr. Gan’s extensive knowledge of traditional technical analysis, analogues and divergences with fundamental analysis and anecdotal information to form a unique discretionary trading style.

 

The wPraxis Futures Trading Approach

 

The wPraxis Futures Trading Approach’s primary investment objective is to achieve capital appreciation from trading.  Willowbridge will utilize a fully discretionary trading strategy to build a portfolio consisting of futures on currency, fixed income, stock indices and commodities pursuant to its wPraxis approach.  The approach may trade commodities, futures, forwards, options, spot contracts in the commodities, currencies, and fixed income markets, and, in the future, it may trade swaps.

 

Trading decisions are made jointly by Philip Yang and by Frank Marrapodi, a trader for Willowbridge.  Both Mr. Yang and Mr. Marrapodi must agree on each position taken in the program.  They utilize their experience in the markets and their analysis of fundamental and technical information to formulate reward to risk expectations about a broad number of liquid markets.  All positions are closely monitored to evaluate risk parameter status.  As markets move, positions are refined and expectations updated in response to current market conditions.

 

- 15 -Exhibit
4(a)

FIFTH
AMENDMENT OF

CONSTRUCTION LOAN AGREEMENT

          THIS
FIFTH AMENDMENT OF CONSTRUCTION LOAN AGREEMENT (“Amendment”) is made this 31st
day of May, 2011 by and among ONE EARTH ENERGY, LLC, an Illinois limited
liability company (“BORROWER”), FIRST NATIONAL BANK OF OMAHA (“FNBO”), a
national banking association headquartered in Omaha, Nebraska as a BANK and as
administrative agent for the BANKS (in such capacity, the “ADMINISTRATIVE
AGENT”), as accounts bank (in such capacity, the “ACCOUNTS BANK”) and as
collateral agent for the BANKS (in such capacity, the “COLLATERAL AGENT”), and
the BANKS party to the AGREEMENT. This Amendment amends that certain
Construction Loan Agreement dated September 20, 2007 among the AGENT, BANKS and
BORROWER (“AGREEMENT”).

          WHEREAS,
pursuant to the AGREEMENT and the other LOAN DOCUMENTS, BANKS extended the
LOANS and other financial accommodations and extensions of credit described in
the AGREEMENT to BORROWER, all as more fully described in the AGREEMENT;

          WHEREAS,
pursuant to that certain First Amendment of Construction Loan Agreement dated
September 19, 2008, the LOAN TERMINATION DATE of the REVOLVING LOAN was
extended from September 19, 2008 to September 18, 2009, the Maintenance
Building Land, Tucker Land, Wellsite Lease and Scott Lease were added as
collateral for the LOANS and the MORTGAGE was amended accordingly, and the
AGREEMENT was otherwise amended as provided for therein;

          WHEREAS,
pursuant to that certain Second Amendment of Construction Loan Agreement dated
January 30, 2009, the allocation of the TERM LOANS was modified by the addition
of the FIXED RATE II TERM LOAN, provisions relating to the Ameren Agreement
were added and the AGREEMENT was otherwise amended as provided for therein;

          WHEREAS,
pursuant to that certain Third Amendment of Construction Loan Agreement dated
September 18, 2009, the LOAN TERMINATION DATE of the REVOLVING LOAN was
extended to September 17, 2010, the interest rate and non-usage fee applicable to
the REVOLVING LOAN was modified as provided for therein and the AGREEMENT was
otherwise amended as provided for therein;

          WHEREAS,
pursuant to that certain Fourth Amendment of Construction Loan Agreement dated
June 1, 2010, the LOAN TERMINATION DATE of the REVOLVING LOAN was extended to
May 31, 2011, the interest rate applicable to the LOANS was modified, the
restrictions on CAPITAL EXPENDITURES for BORROWER’S 2010 fiscal year was
modified, the amortization of the FIXED RATE LOAN was modified and the
AGREEMENT was otherwise amended as provided for therein;

          WHEREAS,
BORROWER has requested, and under the terms of this Amendment Banks have
agreed, to extend the LOAN TERMINATION DATE of the REVOLVING LOAN from May 31,
2011 to May 30, 2012, to modify the interest rate applicable to the REVOLVING 

LOAN, to modify the COMMITMENTS of
the BANKS in the REVOLVING LOAN and to otherwise amend the AGREEMENT as
provided for in this Amendment; and

          WHEREAS,
the parties hereto agree to amend the AGREEMENT as provided for in this
Amendment.

          NOW,
THEREFORE, in consideration of the amendments of the AGREEMENT set forth below,
the mutual covenants herein and other good and valuable consideration, the
sufficiency and receipt of which is hereby acknowledged, the parties agree to
amend the AGREEMENT as follows:

          1.
Capitalized terms used herein shall have the meaning given to such terms in the
AGREEMENT as amended in this Amendment, unless specifically defined herein.

          2.
The definition of the term “INTEREST PERIOD” in Section 1.25 of the AGREEMENT
is hereby deleted in its entirety and the following is inserted in lieu
thereof:

	
  

 	
  

 
	
  

 	
 1.25 “INTEREST PERIOD” means for the FIXED RATE NOTES,
 FIXED RATE II NOTES, VARIABLE RATE NOTES and LONG TERM REVOLVING NOTES a
 period of three (3) months and for the REVOLVING NOTES a period of one (1)
 month; provided that no INTEREST PERIOD shall extend beyond the LOAN
 TERMINATION DATE applicable to such NOTE.

 
	
  

 	
  

 
	
           3.
 The definition of the term “LIBOR RATE” in Section 1.26 of the AGREEMENT is
 hereby deleted in its entirety and the following is inserted in lieu thereof:

 
	
  

 	
  

 
	
  

 	
 1.26 “LIBOR RATE” means, an independent index which is the
 London Interbank Offered Rate for U.S. Dollar deposits published in The Wall Street Journal as the Three
 (3) Month LIBOR RATE with respect to the FIXED RATE NOTES, FIXED RATE II
 NOTES, VARIABLE RATE NOTES and LONG TERM REVOLVING NOTES and as the One (1)
 Month LIBOR RATE with respect to the REVOLVING NOTES. The LIBOR RATE will be
 adjusted and determined without notice to BORROWER on the INTEREST RATE
 CHANGE DATE applicable to each LOAN as set forth in this AGREEMENT. If for
 any reason the LIBOR RATE published by The
 Wall Street Journal is no longer available and/or ADMINISTRATIVE AGENT is
 unable to determine the LIBOR RATE for any INTEREST RATE CHANGE DATE,
 ADMINISTRATIVE AGENT may, in its sole discretion, select an alternate source
 to determine the LIBOR RATE and will provide notice to BORROWER and each BANK
 of the source selected. The LIBOR RATE determined as set forth above shall be
 referred to herein as (the “Index”). The Index is not necessarily the lowest
 rate charged by ADMINISTRATIVE AGENT or any BANK on its loans. If the Index
 becomes unavailable during the term of the LOANS, ADMINISTRATIVE AGENT may
 designate a substitute index after notifying BORROWER and BANKS.
 ADMINISTRATIVE AGENT will tell BORROWER the current Index rate upon
 BORROWER’S request. The interest rate change will not occur more often than each
 month on the first (1st) calendar day of the applicable month with respect to
 the REVOLVING LOAN, and the interest 

 

-2-

	
  

 	
  

 
	
  

 	
 rate change will not occur more often than each quarter on
 the eighth (8th) calendar day of the applicable quarter with
 respect to the TERM LOANS other than the FIXED RATE II LOAN and the last
 calendar day of the applicable quarter with respect to the FIXED RATE II
 LOAN. BORROWER understands that BANKS may make loans based on other rates as
 well. The Index currently is 0.254000% per annum.

 
	
  

 	
  

 
	
           4.
 The definition of the term “LOAN TERMINATION DATE” in Section 1.28 of the
 AGREEMENT is hereby amended by deleting the reference to May 31, 2011 as the
 LOAN TERMINATION DATE applicable to the REVOLVING NOTES and inserting in lieu
 thereof May 30, 2012. Anywhere else in the AGREEMENT which refers to May 31,
 2011 as the LOAN TERMINATION DATE of the REVOLVING NOTES is hereby amended
 consistent with the foregoing. To further evidence the extension of the LOAN
 TERMINATION DATE of the REVOLVING NOTES, BORROWER shall execute and deliver
 to each BANK with a REVOLVING LOAN COMMITMENT AMOUNT a FOURTH AMENDED AND
 RESTATED REVOLVING PROMISSORY NOTE and all references to the REVOLVING NOTES
 in the AGREEMENT and the other LOAN DOCUMENTS are hereby amended to refer to
 such FOURTH AMENDED AND RESTATED REVOLVING PROMISSORY NOTES. 

 
	
  

 	
  

 
	
           5.
 Section 1 of the AGREEMENT is hereby amended to insert the following
 definition as new subsection 1.51:

 
	
  

 	
  

 
	
  

 	
 1.51 “INTEREST CHANGE DATE” means, with respect to the
 REVOLVING LOAN, the first (1st) calendar day of each month on which the Index
 applicable to the REVOLVING LOAN will adjust to the One (1) Month LIBOR RATE
 which is published in The Wall Street
 Journal as the reported rate for the date that is two LONDON BANKING DAYS
 prior to each such INTEREST RATE CHANGE DATE; with respect to the TERM LOANS
 other than the FIXED RATE II TERM LOAN, the eighth calendar day of each
 quarter on which the Index applicable to the TERM LOANS other than the FIXED
 RATE II LOAN will adjust to the Three (3) Month LIBOR RATE which is published
 in The Wall Street Journal as the
 reported rate for the date that is two LONDON BANKING DAYS prior to each such
 INTEREST RATE CHANGE DATE and with respect to the FIXED RATE II TERM LOAN, the
 last calendar day of each quarter on which the Index applicable to the FIXED
 RATE II LOAN will adjust to the Three (3) Month LIBOR RATE which is published
 in The Wall Street Journal as the
 reported rate for the date that is two LONDON BANKING DAYS prior to each such
 INTEREST RATE CHANGE DATE.

 
	
  

 	
  

 
	
           6.
 Section 2.10 of the AGREEMENT is hereby deleted in its entirety and the
 following is inserted in lieu thereof:

 
	
  

 	
  

 
	
  

 	
 2.10 INTEREST ON THE
 REVOLVING NOTES. Prior to maturity and subject to the incentive pricing
 provisions contained in Section 2.15 of this AGREEMENT, interest on the
 REVOLVING NOTES shall accrue and be calculated using a rate of 2.8% over the
 Index, adjusted if necessary for any minimum and maximum rate limitations
 described below, resulting in an initial rate of 3.054% per annum based on a
 year of 360 days. Interest on the REVOLVING NOTES is computed on an
 actual/360 basis; that is, by 

 

-3-

	
  

 	
  

 
	
  

 	
 applying the ratio of the
 interest rate over a year of 360 days, multiplied by the outstanding
 principal balance, multiplied by the actual number of days the principal
 balance is outstanding. All interest payable under the REVOLVING NOTES is
 computed using this method. The principal balance of the REVOLVING NOTES will
 bear interest after maturity and after the occurrence and during the
 continuance of an EVENT OF DEFAULT at a variable per annum rate equal to the
 Index plus six percent (6%), but not to exceed the maximum rate allowed by
 law. Borrower will pay interest quarterly, in arrears, on the first calendar
 day of each quarter. Accrued and unpaid interest must also be paid on the
 LOAN TERMINATION DATE applicable to the REVOLVING LOAN, whether by
 acceleration or otherwise. The interest rate change will not occur more often
 than each quarter on the INTEREST RATE CHANGE DATE applicable to the
 REVOLVING LOAN.

 
	
  

 	
  

 
	
           7.
 Deere Credit, Inc. is not renewing its COMMITMENT in the REVOLVING LOAN and
 FNBO is increasing its COMMITMENT in the REVOLVING LOAN by the amount of
 Deere Credit, Inc’s COMMITMENT in the REVOLVING LOAN. Exhibit H to the
 AGREEMENT is hereby deleted in its entirety and the Exhibit H attached to
 this Amendment is inserted in lieu thereof.

 
	
  

 	
  

 
	
           8.
 Effective for BORROWER’S 2011 fiscal year only, Section 6.4.11 is hereby
 amended by deleting the reference to $1,000,000.00 as the maximum amount of
 BORROWER’S capital expenditures in BORROWER’S 2011 fiscal year and inserting
 in lieu thereof $4,500,000.00. Such increase will be used by BORROWER for the
 sole purpose of construction and installation of corn oil extraction
 equipment at the PROJECT. Commencing with BORROWER’S 2012 fiscal year, and
 for each fiscal year thereafter, BORROWER’S capital expenditures in any such
 fiscal year may not exceed $1,000,000.00 without the prior written consent of
 ADMINISTRATIVE AGENT as provided for in Section 6.4.11. BANKS approve
 BORROWER’S 2011 CAPEX BUDGET submitted pursuant to Section 6.1.12 of the
 AGREEMENT.

 
	
  

 	
  

 
	
           9.
 This Amendment shall not be effective until the ADMINISTRATIVE AGENT shall
 have received each of the following (each in form and substance acceptable to
 the ADMINISTRATIVE AGENT) or the following conditions have been satisfied:

 
	
  

 	
  

 
	
  

 	
 (a). This Amendment, duly executed by BORROWER and each
 BANK.

 
	
  

 	
  

 
	
  

 	
 (b). The FOURTH AMENDED AND RESTATED REVOLVING PROMISSORY
 NOTES, duly executed by BORROWER.

 
	
  

 	
  

 
	
  

 	
 (c). Such other matters as the ADMINISTRATIVE AGENT may
 reasonably require.

 
	
  

 	
  

 
	
           10.
 Except as modified and amended herein, all other terms, provisions,
 conditions and obligations imposed under the terms of the AGREEMENT and the
 other LOAN DOCUMENTS shall remain in full force and effect and are hereby
 ratified and affirmed by BORROWER. To the extent necessary, the other LOAN
 DOCUMENTS are hereby amended to be consistent with the terms of this
 Amendment.

 

-4-

          11.
BORROWER certifies and reaffirms by its execution hereof that the
representations and warranties set forth in the AGREEMENT and the other LOAN
DOCUMENTS are true and complete as of this date, and that no EVENT OF DEFAULT
under the AGREEMENT or any other LOAN DOCUMENT, and no event which, with the
giving of notices or passage of time or both, would become such an EVENT OF
DEFAULT, has occurred as of execution hereof. This Amendment may be executed
simultaneously in several counterparts, each of which shall be deemed an
original but which together shall constitute one and the same instrument.

[SIGNATURE
PAGES FOLLOW]

-5-

          IN
WITNESS WHEREOF, the parties have executed and delivered this Amendment on the
date first written above. 

	
  
 	
  
 	
  
 
	
  
 	
 ONE EARTH ENERGY, LLC
 
	
  
 	
  
 
	
  
 	
 By:
 	
 /s/ Steven Kelly
 
	
  
 	
 Title:
 	
 President
 
	
  
 	
  
 	
  
 
	
  
 	
 FIRST NATIONAL BANK OF OMAHA, 
in its capacity as a BANK,
ADMINISTRATIVE AGENT, 
COLLATERAL AGENT and ACCOUNTS BANK
 
	 
	 

	
  
 	
 By:
 	
 /s/ Fallon Savage
 
	
  
 	
 Title:
 	
 Vice President
 

-6-

	
  

 	
  

 	
  

 
	
  

 	
 1st FARM CREDIT SERVICES, as a 

 
	
  

 	
 BANK

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Dale Richardson

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Vice President, Capital Markets

 

	
  

 	
  

 	
  

 
	
  

 	
 TRANSAMERICA LIFE 

 
	
  

 	
 INSURANCE COMPANY, as a BANK

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Stephen Noonan

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Vice President

 

	
  

 	
  

 	
  

 
	
  

 	
 CITIZENS
 FIRST NATIONAL BANK, as

 
	
  

 	
 a BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Joseph
 K. Bates

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Vice
 President-Agribusiness Banking

 

	
  

 	
  

 	
  

 
	
  

 	
 COBANK, as a
 BANK

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Brook
 Stomer

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Relationship
 Manager

 

	
  

 	
  

 	
  

 
	
  

 	
 DEERE
 CREDIT, INC., as a BANK

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Mark A.
 Thompson

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Vice
 President

 

	
  

 	
  

 	
  

 
	
  

 	
 FARM CREDIT
 SERVICES OF

 
	
  

 	
 AMERICA, as
 a BANK

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Kathryn
 Frahm

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Vice
 President - Credit

 

	
  

 	
  

 	
  

 
	
  

 	
 M & I
 MARSHALL & ISLEY BANK, as a 

 
	
  

 	
 BANK

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Carl
 Ruthrauff

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Vice
 President

 

	
  

 	
  

 	
  

 
	
  

 	
 QUAD CITY
 BANK AND TRUST,

 
	
  

 	
 as a BANK

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Rebecca
 Skafidas

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
 Vice
 President

 

EXHIBIT
H

BANKS’
COMMITMENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 BANK

 	
  

 	
 CONSTRUCTION

 LOAN/TERM

 LOAN

 COMMITMENT

 AMOUNT

 	
  

 	
 REVOLVING

 LOAN

 COMMITMENT

 AMOUNT

 	
  

 	
 TOTAL

 COMMITMENT,

 CONSTRUCTION

 LOAN/ TERM

 LOANS AND

 REVOLVING

 LOANS

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1st
 Farm Credit Services

 	
  

 	
 $

 	
 7,500,000.00

 	
  

 	
  

 	
 N/A

 	
  

 	
 $

 	
 7,500,000.00

 	
  

 
	
 Transamerica
 Occidental Life Insurance Company

 	
  

 	
 $

 	
 11,000,000.00

 	
  

 	
  

 	
 N/A

 	
  

 	
 $

 	
 11,000,000.00

 	
  

 
	
 Busey Bank

 	
  

 	
 $

 	
 5,000,000.00

 	
  

 	
  

 	
 N/A

 	
  

 	
 $

 	
 5,000,000.00

 	
  

 
	
 Capital Farm
 Credit

 	
  

 	
 $

 	
 3,000,000.00

 	
  

 	
  

 	
 N/A

 	
  

 	
 $

 	
 3,000,000.00

 	
  

 
	
 Citizens
 First National Bank

 	
  

 	
 $

 	
 9,000,000.00

 	
  

 	
 $

 	
 1,000,000.00

 	
  

 	
 $

 	
 10,000,000.00

 	
  

 
	
 CoBank

 	
  

 	
 $

 	
 4,550,000.00

 	
  

 	
 $

 	
 450,000.00

 	
  

 	
 $

 	
 5,000,000.00

 	
  

 
	
 Deere
 Credit, Inc.

 	
  

 	
 $

 	
 18,181,818.00

 	
  

 	
  

 	
 N/A

 	
  

 	
 $

 	
 18,181,818.00

 	
  

 
	
 Farm Credit
 Services of America

 	
  

 	
 $

 	
 8,000,000.00

 	
  

 	
  

 	
 N/A

 	
  

 	
 $

 	
 8,000,000.00

 	
  

 
	
 M & I
 Marshall & Ilsley Bank

 	
  

 	
 $

 	
 9,000,000.00

 	
  

 	
 $

 	
 1,000,000.00

 	
  

 	
 $

 	
 10,000,000.00

 	
  

 
	
 First
 National Bank of Omaha

 	
  

 	
 $

 	
 19,768,182.00

 	
  

 	
 $

 	
 7,550,000.00

 	
  

 	
 $

 	
 27,318,182.00

 	
  

 
	
 Quad City
 Bank and Trust

 	
  

 	
 $

 	
 5,000,000.00

 	
  

 	
  

 	
 N/A

 	
  

 	
 $

 	
 5,000,000.00

 	
  

 
	
  

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 
	
 Totals

 	
  

 	
 $

 	
 100,000,000.00

 	
  

 	
 $

 	
 10,000,000.00

 	
  

 	
 $

 	
 110,000,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]