Document:

exh-10.1

TRADING ADVISOR AGREEMENT

 

THIS AGREEMENT is made as of the 28th day of June, 2007 between the RFMC Global Directional Fund, LP, a Delaware limited partnership (the “Partnership”) whose general partner is Ruvane Fund Management Corporation (the “General Partner”), and Welton Investment Corporation, a Delaware  corporation (the “Trading Advisor”).

 

WITNESSETH:

 

WHEREAS, the Partnership has been organized by the General Partner to engage in trading commodity futures contracts and options on commodities or commodity futures contracts, and forward contracts (collectively, “futures interests”) (and the Partnership may also invest in entities, including other partnerships or funds, that trade futures interests), and the limited partnership agreement of the Partnership provides that the General Partner may and intends to contract with trading advisors who will make the actual trading decisions for the Partnership;

 

WHEREAS, the Trading Advisor’s business is making trading decisions on behalf of investors in the purchase and sale of futures interests; and

 

WHEREAS, the General Partner and the Trading Advisor each desire the Trading Advisor to make investment decisions for the Partnership using its Global Directional Portfolio trading strategy on the terms and conditions set forth in this Agreement;

 

           NOW, THEREFORE, the parties agree as follows: 

 

1.  Duties of the Trading Advisor.  (a)  Limited partnership interests in the Partnership will be offered in a offering exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(2) thereof and Regulation D promulgated thereunder
(together, the “1933 Act”). The Partnership will be as described in a
Confidential Offering Memorandum (the “Memorandum”) filed with the National
Futures Association (the “NFA”).  The Trading Advisor will utilize its Global Directional Portfolio trading strategy in connection with its management of the Partnership’s assets.   The aggregate amount allocated to the Trading Advisor including notional funds, together with cumulative profits thereon as a result of its investment activities on behalf of the Partnership, including any interest income
earned thereon, less any allocated fees and expenses and adjusted for additions and withdrawals, shall be the “Trading Advisor’s Allocated Assets.”  Management and performance fees paid or accrued, commissions charged, and any other specific liabilities attributable to the Partnership’s account maintained at its futures commission brokers shall be chargeable to such account.  

 

(b)  The Trading Advisor shall determine the investment and reinvestment of the Trading Advisor’s Allocated Assets on the terms and conditions set forth in this Agreement and in accordance with the Trading Policies set forth in the current Memorandum and the Trading Advisor’s Global Directional Portfolio trading strategy (which term, for purposes of this Agreement, shall include trading instructions, methods and systems), as described in the latest dislosure document field by the Trading Advisor with the NFA or Commodity Futures Trading Commission (the “CFTC”).  The Trading Advisor shall have sole discretion and use its best efforts in determining independently the investment and reinvestment of the Trading Advisor’s Allocated Assets pursuant to the Global Directional Portfolio trading strategy, except that the 

 

General Partner may overrule the instructions of the Trading Advisor (i) to the extent necessary to comply with speculative position limits, (ii) to the extent that the General Partner believes doing so is necessary or advisable for the protection of the Partnership, or (iii) to the extent otherwise described herein.

 

(c)  The Trading Advisor may, in its discretion, alter the Global Directional Portfolio trading strategy in investing and reinvesting the Trading Advisor’s Allocated Assets, provided that the Trading Advisor determines that such alteration is in the best interests of the Partnership.  The Trading Advisor will give prompt notice in writing to the General Partner of (i) any change in the Global Directional Portfolio trading strategy which the Trading Advisor considers to be material, and (ii) if any of the Trading Advisor’s principals are no longer actively involved in the daily management of the Trading Advisor.

 

(d)  Neither the Trading Advisor, nor any employee or officer of the Trading Advisor or any person who controls the Trading Advisor shall be liable to the General Partner, the Partnership, or any other firm, person or organization under this Agreement except as set forth in Section 8 hereof; it being understood that trading profits recognized or losses incurred on behalf of the Partnership shall be for the account of the Partnership and the Trading Advisor shall not incur any liability for such profits or losses provided the Trading Advisor would not otherwise be liable to the Partnership under the terms hereof.

 

(e)  The Partnership or the General Partner will instruct the Partnership’s futures commission merchant(s) to furnish copies of all trade confirmations and other trading reports to the Trading Advisor in electronic or hard-copy format.  On a daily basis after the close of trading, the Trading Advisor shall check out with the Partnership’s broker(s).  The Trading Advisor will maintain a record of all purchase and sale statements furnished to it by the Partnership’s broker(s) for the Partnership’s account with respect to the Trading Advisor’s Allocated Assets, and will monitor all open positions relating thereto.  The Trading Advisor agrees to notify the General Partner immediately of any error committed by the Trading Advisor or its principals or any of its employees with respect to a trade on behalf of the Partnership and to notify the General Partner promptly of
any order or trade for the Partnership which the Trading Advisor believes was not executed in accordance with the Trading Advisor’s instructions.

 

2.   Requests for Information.  The Trading Advisor agrees to provide the General Partner with any information concerning the Trading Advisor that the General Partner may reasonably request concerning the Trading Advisor including, but not limited to, information regarding any change in control, personnel, trading approach and financial condition which the General Partner reasonably deems to be material to the Partnership, and shall notify the General Partner of any such matters the Trading Advisor believes are material to the Partnership.  The Trading Advisor shall cooperate, to the extent that the General Partner may reasonably request, in preparing offering materials, investor information reports and regulatory filings relating to the Partnership.  Nothing in this Agreement shall require the Trading Advisor to disclose the
proprietary details of the Global Directional Portfolio trading strategy used to manage the Trading Advisor’s Allocated Assets.  The Trading Advisor will make itself reasonably available upon the reasonable request of the General Partner to support efforts to market or develop the Partnership, including  without limitation participating in telephone calls and meetings with potential marketers or customers of the Partnership.  Further, the Trading Advisor agrees to cooperate with the General Partner in connection with its obligations to the Partnership.

 

3.   Disclosure Documents.  During the term of this Agreement, the Trading Advisor shall promptly furnish the General Partner with a copy of each disclosure document of the Trading Advisor filed with the CFTC and the NFA.  The General Partner hereby acknowledges receipt of the latest filed disclosure document of the Trading Advisor, dated May 31, 2007.

 

 

 4.   Trading Advisor Independent..  The Trading Advisor shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized, have no authority to act for or represent the Partnership or General Partner in any way or otherwise be deemed an agent of the Partnership or General Partner. 

 

5.   Commodity Broker.  All trades for the account of the Partnership shall be made through such commodity broker(s) or introducing broker(s) as the General Partner shall direct.  Initially, the General Partner has selected Calyon Financial Services Inc. and ADM Investors Services Inc. as the Partnership’s commodity brokers and Bridgeton Global Investor Services, Inc. as the Partnership’s introducing broker.  In placing trades for the account of the Partnership, the Trading Advisor agrees that is shall use its standard procedures for allocating orders among the Trading Advisor’s various accounts and not knowingly favor any other such account over that of the Partnership.  The Trading Advisor agrees to ‘give up’ trades placed on behalf of the Partnership’s account to such commodity brokers as the
General Partner directs.

 

6.   Fees.  (a)  For the performance of its services under this Agreement, the Partnership will pay the Trading Advisor a quarterly management fee based upon the Net Asset Value (as defined below) of the Trading Advisor’s Allocated Assets at the end of each calendar month during the term hereof, without regard to whether the Partnership is profitable with respect to the Trading Advisor’s Allocated Assets, and a quarterly performance fee payable at the end of each calendar quarter during the term hereof.  The management fee will be paid on a quarterly basis in an amount equal to 0.50% of the Partnership’s month-end net assets for each month during such quarter, or 2.0% per year, based on the Net Asset Value of the Trading Advisor’s Allocated Assets as of the end of each month. “Net Asset Value” of
the Trading Advisor’s Allocated Assets shall mean the total assets of the Trading Advisor’s Allocated Assets including all cash and cash equivalents (valued at cost), notional funds, accrued interest and the market value of all open commodity positions and other assets maintained by the Partnership, less the market value of all liabilities and reserves of the Partnership, including accrued management and performance fees, determined in accordance with the principles specified in Paragraph 6 of the Limited Partnership Agreement of the Partnership and, where no principle is specified, in accordance with generally accepted accounting principles.  The Trading Advisor’s Allocated Assets shall be determined in accordance with the definition set forth in Section 1 above.  The Partnership will not pay a performance fee directly to the Trading Advisor.  Instead, the Partnership will pay the General Partner a performance fee of twenty percent (20%) of New Profits (as defined
below).   The General Partner will pay the Trading Advisor seventy-five percent (75%) of the amount of any performance fees it receives from the Partnership.  “New Profits” shall mean the excess (if any) of (A) the net asset value of the Trading Advisor’s Allocated Assets as of the last day of any calendar quarter (before deduction of incentive fees paid or accrued for such quarter), over (B) the net asset value of the Trading Advisor’s Allocated Assets as of the last day of the most recent quarter for which a performance fee was paid or payable (after deduction of such performance fee).  In computing New Profits, the difference between (A) and (B) above shall be (i) increased by the amount of any distributions or redemptions paid or accrued by the Trading Advisor’s Allocated Assets as of or subsequent to the date in (B) through the date in (A), (ii) adjusted (either decreased or increased, as the case may be) to reflect the amount of any additional
allocations or negative reallocations of the Trading Advisor’s Allocated Assets from the date in (B) to the last day of the quarter as of which the current performance fee calculation is made, and (iii) increased by the amount of any losses attributable to redemptions.  If any performance fee is paid to the Trading Advisor, the Trading Advisor will retain the amount paid regardless of any 

 

subsequent decline in account value, but will not be eligible to receive subsequent performance fee payments until the Trading Advisor has recouped its losses and earned New Profits.  

 

(b) If trading by the Trading Advisor on behalf of the Partnership commences in mid-month or mid-quarter the Trading Advisor's Allocated Assets as of the date the Trading Advisor commenced trading on behalf of the Partnership will be used for purposes of calculating the fees payable hereunder. If this Agreement is terminated (i) on a date other than the end of a month, the management fee described above shall be determined as if such date were the end of a month (but the applicable fee shall be prorated based on the ratio of the number of trading days in the month through the date of termination to the total number of trading days in the month) or (ii ) on a date other than the end of a quarter, the performance fee described above shall be determined as if such date were the end of a quarter. The management fee payable to the Trading Advisor for the month in which the Trading
Advisor commences trading shall be prorated based on the ratio of the number of trading days in the month from the day trading commences to the total number of trading days in the month.

 

7.   Term.  (a)  Unless terminated earlier by the General Partner as provided herein, the term of this Agreement shall run from the date hereof until December 31, 2008 (the “Initial Term”) and is automatically renewable thereafter for one year periods unless either the Trading Advisor or the General Partner terminates the Agreement at the end of the Initial Term or at the end of any one year renewal period thereafter by giving ninety (90) days’ prior written notice to the other party.  In addition, the General Partner shall have the right to terminate this Agreement at any time upon written notice to the Trading Advisor if: (i) Patrick L. Welton does not continue to be actively engaged in the operations and affairs of the Trading Advisor or otherwise direct the trading by the Trading Advisor; (ii) the Trading
Advisor merges, consolidates with, or sells its advisory business or a substantial portion of its assets or its goodwill to any individual or entity, or becomes bankrupt or insolvent; (iii) the registration of the Trading Advisor as a commodity trading advisor with the CFTC or its membership in the NFA is suspended or terminated; (iv) the Trading Advisor materially violates the Trading Policies of the Partnership as set forth in the Memorandum or (v) the Global Directional Portfolio trading strategy as utilized by the Trading Advisor in connection with its management of the Partnership’s asset under performs the Barclay CTA Index (or other agreed upon broad managed futures index) by more than 20% over a 24 month period as measured net of all Trading Advisor fees and in a manner consistent with Part 4 of the CFTC regulations promulgated under the US Commodity Exchange Act, as amended.  

 

(b) The Trading Advisor shall have the right to terminate this Agreement immediately upon written notice to the General Partner if (i) Robert L. Lerner does not continue to be actively engaged in the operations and affairs of the General Partner; (ii) a new general partner is elected; or (iii) there is a material change in the Partnership’s trading policies.

 

8.  Standard of Liability.  Neither the Trading Advisor nor any of its employees, principals, shareholders or any person who controls the Trading Advisor shall be liable to the General Partner or the Partnership under this Agreement except by reason of acts or omissions which constitute misconduct or negligence or which result from not having acted in good faith in the reasonable belief that such actions or omissions were in, or not opposed to, the best interest of the General Partner or the Partnership or any acts in contravention of this Agreement; it being understood that, without limiting the Trading Advisor’s liability hereunder, futures and options transactions made by the Trading Advisor on behalf of the Partnership shall be for the account and risk of the Partnership.

 

 

9.   Indemnification.  (a) The General Partner agrees to indemnify, defend and hold harmless the Trading Advisor and its officers, directors, shareholders, principals, and employees from and against any and all losses, claims, damages, liabilities, judgments, costs and expenses (including, without limitation, reasonable attorneys' fees and any amounts paid in settlement; provided, that the General Partner shall have approved such settlement) resulting from a demand, claim, lawsuit, action or proceeding relating to, based upon or arising out of, (x) this Agreement or the advisory services performed or to be performed by the Trading Advisor for the account of the Partnership, or solely from the fact that the Trading Advisor is or was a trading advisor to the Partnership or (y) the offering, issuance or sale of units in the
Partnership, including any untrue statement or alleged untrue settlement of a material fact contained in the Memorandum, or the omission or alleged omission therefrom or a material fact necessary in order to make the statements therein not misleading,  except that the General Partner shall not indemnify and hold harmless the Trading Advisor, or its officers, directors, employees, principals or shareholders for any loss, claim, damage, judgment, liability, cost or expense relating to, based upon, or arising out of (i) an act or omission by the Trading Advisor or its officers, directors, principals, shareholders or employees constituting negligence or misconduct or an action or omission taken otherwise than in good faith and in a manner reasonably relieved to be in, or not opposed to, the best interests of the Partnership, or (ii) a material breach of a warranty, representation or agreement on the part of the Trading Advisor or its officers or directors contained in this Agreement, or
(iii) any untrue statement or alleged untrue statement of a material fact contained in the section of the Memorandum describing the Trading Advisor or its principals, officers, directors, operations, trading approaches, methods of trading or performance, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, not misleading. Any indemnification required by this Section 9(a), unless ordered by a court or agreed to by the General Partner, shall be made by the General Partner only upon a determination by independent legal counsel reasonably acceptable to the General Partner and the indemnified party in a written opinion that the conduct which is the subject of the claim, demand, lawsuit, action or proceeding with respect to which indemnification is sought meets the applicable standard set forth in this Section 9(a); provided that if the indemnified party shall have prevailed on the merits in the defense of any demand, claim,
lawsuit, action or proceeding subject to indemnification hereunder, indemnification shall be payable hereunder irrespective of the receipt of any such legal opinion. The foregoing agreement of indemnity shall be in addition to, and shall in no respect limit or restrict, any other remedies which may be available to an indemnified party.

 

(b) The Trading Advisor agrees to indemnify, defend and hold harmless the Partnership and the General Partner and its affiliates from and against any and all losses, claims, damages, liabilities, judgments, costs and expenses (including, without limitation, reasonable attorneys' fees and any amounts paid in settlement; provided, that the Trading Advisor shall have approved such settlement) resulting from a demand, claim, lawsuit, action or proceeding relating to, based upon or arising out of, (x) this Agreement or the advisory services performed or to be performed by the Trading Advisor for the account of the Partnership, or (y) the offering, issuance or sale of units in the Partnership, including any untrue statement or alleged untrue statement of a material fact contained in the Memorandum, or the omission or alleged omission therefrom or a material fact necessary in order to make
the statements therein not misleading, provided that the losses, claims, damages, liabilities, judgments, costs or expenses related to, were based upon or arose out of (i)
an act or omission by the Trading Advisor or its officers, directors,
principals, shareholders or employees constituting negligence or misconduct or
an action or omission taken otherwise than in good faith and in a manner
reasonably believed to be in, or not opposed to, the best interests of the
Partnership, or (ii) a material breach of a warranty, representation or
agreement on the part of the Trading Advisor or its officers or directors 

 

contained in this Agreement, or (iii) any untrue statement or alleged untrue statement of a material fact contained in the section of the Memorandum describing the Trading Advisor or its principals, officers, directors, operations, trading approaches, methods of trading or performance, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, not misleading. Any indemnification required by this Section 9(b), unless ordered by a court or agreed to by the Trading Advisor, shall be made by the Trading Advisor only upon a determination by independent legal counsel reasonably acceptable to the Trading Advisor and the indemnified party in a written opinion that the conduct which is the subject of the claim, demand, lawsuit, action or proceeding with respect to which indemnification is sought meets the applicable standard set forth in this Section 9(b); provided that if the indemnified party shall have
prevailed on the merits in the defense of any demand, claim, lawsuit, action or proceeding subject to indemnification hereunder, indemnification shall by payable hereunder irrespective of the receipt of any such legal opinion. The foregoing agreement of indemnity shall be in addition to, and shall in no respect limit or restrict, any other remedies which may be available to an indemnified party.

 

10. Right to Advise Others. (a) The Trading Advisor's business is, among other things, advising persons as to the purchase and sale of futures interests, and it may or will be advising other persons and trading for their accounts during the same periods that it is managing the Partnership’s account. During the term of this Agreement, the Trading Advisor also may trade for its own account and accounts of its officers, directors, employees, and their families. Under no circumstances will the Trading Advisor knowingly or deliberately favor any account advised or managed by it over the account of the Partnership in any way or manner, except as described below with respect to position limits. The Trading Advisor agrees to treat the Partnership in a fiduciary capacity. Subject to that standard, the Trading Advisor will be free to manage
accounts for other investors, itself, its officers, directors and employees and their families, and will be free to trade on the basis of methods similar or identical to those employed by the Trading Advisor on behalf of the Partnership, or methods which are entirely independent of such methods, including but not limited to trading in a manner the Trading Advisor determines, in its sole judgment, to be inappropriate for the Partnership at any particular time, and shall be free to compete for the same futures contracts or other commodity interests as the Partnership or take positions opposite to the Partnership, where such actions do not knowingly or deliberately prefer any client (including accounts managed for itself, its officers, directors and employees and their families) to the Partnership, except as described below with respect to position limits.

 

(b) Notwithstanding the provisions of Section 10(a), so long as the Trading
Advisor is performing services for the Partnership, it agrees that it will not
accept additional capital for management in the futures interests markets if
doing so would have a reasonable likelihood of resulting in the Trading Advisor
having to modify substantially its trading approach, because of position limits
or other factors, being used by the Trading Advisor for the Partnership in a
manner which might reasonably be expected to be to the detriment of the
Partnership (it being understood that this paragraph shall not prohibit the
acceptance of additional capital which acceptance requires only routine
adjustments to trading patterns in order to comply with position limits). The
Trading Advisor agrees to provide the General Partner on or before the last
business day of each month the performance information of all funds placed under
the Trading Advisor's management (singly or with others) during the immediately
preceding calendar month in such form as the General Partner reasonably request.
The Trading Advisor further agrees to discuss its trading approaches, methods,
systems, and performance with the General Partner and certain selling agents
engaged by the Partnership upon request. Further, the General Partner, upon
reasonable notice to the Trading Advisor, may inspect on a confidential basis
all records of the Trading Advisor related to the trading of futures interests
for the purpose of 

 

confirming that the Partnership has been treated equitably with regard to
trading during the term of this Agreement by the Trading Advisor. It is understood and agreed that, in its discretion, the Trading Advisor may withhold from such inspection the name of the client for whom an account is maintained and that the information disclosed to the General Partner will be accorded confidential treatment by the General Partner, subject to its fiduciary obligations and applicable law.

 

11. Representations and Warranties of the Trading Advisor. The Trading Advisor represents and warrants to the Partnership as follows:

 

(a) The Trading Advisor is duly organized and validly existing under the laws of the jurisdiction of its organization and has the corporate and authority to perform its obligations under this Agreement.

 

(b) This Agreement has been duly authorized, executed and delivered by the Trading Advisor and constitutes a valid and legally binding obligation of the Trading Advisor enforceable in accordance with its terms.

 

(c) The Trading Advisor is a member in good standing of the NFA and has all required governmental and regulatory licenses to perform its obligations under this Agreement and the Trading Advisor is in compliance with all applicable rules and regulations of the CFTC and the NFA to the extent material to the conduct of its business; and the performance by the Trading Advisor of its obligations under this Agreement will not violate, or constitute a default under, the certificate of incorporation of, articles of incorporation, bylaws of of, or any agreement, order, law or regulation binding upon, the Trading Advisor.

 

12. Representations and Warranties of the Partnership. The Partnership represents and warrants to the Trading Advisor as follows:

 

(a) The Partnership is duly organized and validly existing under the laws of the jurisdiction of its organization and has the power and authority to perform its obligations under this Agreement.

 

(b) This Agreement has been duly authorized, executed and delivered by the Partnership and constitutes a valid and legally binding obligation of the Partnership enforceable in accordance with its terms.

 

(c) The General Partner is a member in good standing of the NFA. The Partnership is in compliance with all applicable rules and regulations of the Securities and Exchange Commission, the CFTC, and the NFA to the extent material to the conduct of its business.

 

13. Covenants of the Trading Advisor. During the term of this Agreement the Trading Advisor agrees as follows:

 

(a) The Trading Advisor shall maintain all registrations and memberships necessary for the Trading Advisor to furnish services to the Partnership hereunder and shall at all times comply in all material respects with all applicable laws, to the extent that the failure to so comply would adversely affect the Trading Advisor's ability to perform services for the Partnership as contemplated hereby.

 

(b) The Trading Advisor acknowledges and agrees that its obligations to the Partnership hereunder are independent of any obligations of the Partnership and that no dispute, non-payment or default by the Partnership under any arrangements with the Trading Advisor shall in any respect diminish the Trading Advisor's obligations to the Partnership hereunder.

 

 

14. Complete Agreement. This Agreement supercedes any prior agreements between the parties and constitutes the entire agreement between the parties, and no other agreement, verbal or otherwise, shall be binding as between the parties hereto unless in writing and signed by the party against whom enforcement is sought.

 

15. Severability.  If any provision of this Agreement, or the application of any provision to any person or circumstance, shall be held to be inconsistent with any present or future law, ruling, rule or regulation of any court or governmental or regulatory authority having jurisdiction over the subject matter hereof, such provision shall be deemed to be rescinded or modified in accordance with such law, ruling, rule or regulation, and the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it shall be held inconsistent, shall not be affected thereby.

 

16. Assignment. This Agreement may not be assigned by either party without the express written consent of the other party.

 

17. Amendment. This Agreement may not be amended except by the written consent of the parties.

 

18. Notices. Any notice required or desired to be delivered under this Agreement shall be in writing and shall be delivered by courier service, postage prepaid mail, telecopy, telex, telegram or other similar means and shall be effective upon actual receipt by the party to which such notice shall be directed, addressed as follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms hereof):

 

 

	
            if to the Partnership or the General Partner:
 
	
             
 	
             
 	
             
 
	
             
 	
            RFMC Global Directional Fund, LP
 	
             
 
	
             
 	
            c/o Ruvane Fund Management Corporation
 	
             
 
	
             
 	
            4 Benedek Road
 	
             
 
	
             
 	
            Princeton, New Jersey  08540
 	
             
 
	
             
 	
            Attn:  Robert L. Lerner
 	
             
 
	
             
 	
            Facsimile: (609) 921-0577
 	
             
 
	
             
 	
             
 	
             
 
	
            if to the Trading Advisor:
 
	
             
 	
             
 	
             
 
	
             
 	
            Welton Investment Corporation
 	
             
 
	
             
 	
            The Eastwood Building
 	
             
 
	
             
 	
            San Carlos between 5th and 6th
 	
             
 
	
             
 	
            Carmel, California 93921-6147
 	
             
 
	
             
 	
            Attn:  Patrick L. Welton
 	
             
 
	
             
 	
            Facsimile: (831) 626-5199
 	
             
 

 

 

19. Headings. Headings to sections herein are for the convenience of the parties only, and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 

20. Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors and permitted assigns, and no other person shall have any right or obligation under this Agreement.

 

21. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey.

 

22. Property Rights of the Trading Advisor. The General Partner agrees to maintain in confidence any and all trading instructions and information, materials or other documents of the Trading Advisor, which it concurrently, hereafter or previously obtains pursuant to or in connection with this Agreement, except as otherwise agreed with the Trading Advisor. The General Partner acknowledges that the advisory services provided by the Trading Advisor involves the use of proprietary information and further agrees that it shall not copy, disclose, misuse, misappropriate or reverse engineer or otherwise appropriate or make use of in any manner the trading strategies, systems, algorithms, models, techniques, methods, policies, programs and analyses previously, currently used by the Trading Advisor in the conduct of its business.

 

 

[SIGNATURE PAGE TO FOLLOW]

 

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

 

 

Welton Investment Corporation 

 

_____________________________

Patrick L. Welton, its president

 

 

RFMC Global Portfolio Fund, LP 

By:  Ruvane Fund Management Corporation, its General Partner

 

_______________________________

Robert L. Lerner, its president

 

 

As to Section 6 of this Agreement

Ruvane Fund Management Corporation

 

 

	
            _______________________________
 

	
            Robert L. Lerner, its presidentFUND ACCOUNTING AND REPORTING AGREEMENT

 
 
	
            FUND ACCOUNTING AND REPORTING AGREEMENT dated as of June 1, 2007 between RFMC Global Directional Fund, L.P., a Delaware Limited Partnership (“Client”) and LAMP Technologies LLC, a Delaware limited liability company (“LAMP ”).
 
	
             

            
            W I T N E S S E
            T H:

 
 
	
            WHEREAS, Client desires to engage LAMP to provide fund accounting and reporting services to Client and certain of its affiliated investment funds (the “Funds”); and
 
	
            WHEREAS, Client and LAMP wish to enter into this Agreement in order to set forth the terms and conditions upon which LAMP will render such services to Client.
 
	
            NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of all of which are hereby acknowledged, the parties hereby agree as follows:
 
	
            1.  Basic Services.   Beginning on July 1, 2007 (the “Effective Date”), Client agrees to retain LAMP to provide, and LAMP agrees to use its best efforts to provide, the fund accounting and reporting services set forth in Exhibit A for funds requiring trade-level processing (“CPO Portfolios”), attached hereto and incorporated herein by reference, and in Section 2 hereof. The Client and LAMP will work together to transition the Funds Listed in Exhibit F.  LAMP will only be responsible for additional services expressly agreed to by it in writing. LAMP shall have no responsibility for compliance with federal securities or commodities laws, rules or regulations, state securities
laws, rules or regulations or the rules or regulations of any self-regulatory organization.
 

  

	
            For CPO Portfolios, Exhibit B, attached hereto and incorporated herein by reference, lists the current brokers and dealers carrying the Funds’ accounts and Exhibit C lists the advisors that trade for such CPO Portfolios. Client hereby acknowledges that not every broker, dealer or advisor is capable of producing transaction data in an electronic transmission in acceptable formats to LAMP and that LAMP may not be able to provide fund accounting and reporting services at the compensation level described herein with respect to accounts carried at non-complying brokers. The compensation described herein and LAMP’s obligations are specifically dependent upon the ability, accuracy, consistency and timeliness by which each
of the Funds’ brokers and advisors provides the required data in acceptable formats to LAMP for all transactions related to the instruments traded. Client shall provide LAMP with notice of any addition to the brokers and/or dealers listed on Exhibit B and advisors listed in Exhibit C at least thirty (30) days in advance of the establishment of a new account in order that LAMP can determine if the broker and/or advisor is able to comply with electronically transmitted file formats acceptable to LAMP. Client shall also provide at least ten (10) days in advance of the commencement of trading by any new trading advisors copies of advisory contracts and other documentation relating to such new trading advisors. Client acknowledges that if LAMP does not receive daily transactional data from the Advisor in an acceptable electronic format the position data then requires manual entry into
LAMP’s system and additional per transaction charges will apply and delays in report delivery may occur.
 
	
            Client is to meet all obligations included in Exhibit D for CPO Portfolios, attached hereto and incorporated herein by reference, time being of essence.

LAMP will be entitled to rely on information provided by Client, the  Funds and their legal counsel, auditors, advisors, brokers administrators and other service providers, LAMP shall have no duty to provide such information or to make an independent investigation as to any information so provided to determine the facts necessary for the provision of such services, including, without limitation, information with regard to their financial activities, valuations of the Funds’ investments,
and all other underlying facts as may be required for the preparation of reports.

Client and its agents (e.g., the Funds’ counsel, creditors, advisors, brokers and administrators) shall deliver to LAMP, on a timely basis, all information necessary to enable LAMP to provide the services contemplated to be performed by it on a timely and efficient basis. This obligation of Client shall include, but not be limited to, providing LAMP on a timely basis with all information necessary for the performance by LAMP of its duties hereunder and granting LAMP reasonable and necessary access to the books and records of the Funds and to all legal and other documentation relating to the business of the Funds.

 

LAMP shall be deemed
for all purposes to be an independent contractor and not an agent of Client or the Funds, and unless otherwise expressly provided or authorized, shall have no authority to act for or represent Client or the Funds in any way. Neither LAMP nor any of its affiliates is a sponsor or promoter of the Funds.

        
	
             
 

 

	
                             2.  Additional Services and
            Agreements.

 
	
            
                             a.          Customized Reporting/Special Projects. LAMP may choose to accept custom reporting and/or projects for client on a case by case basis, with fees to be agreed upon by both parties in advance. Any programming, report and or projects completed by LAMP are wholly owned by LAMP and may at LAMP’s discretion be supplied to other LAMP clients.

             

                 b.          Incorporation of Historic Data . LAMP may on a case by case basis agree to import historic trade and performance data provided electronically in a format acceptable to LAMP, with fees to be agreed by both parties in advance.

                 c.           LAMP Access for Client Ongoing Due Diligence and External Audits. During the term of this Agreement, LAMP agrees to cooperate with Client and to provide reasonable access on reasonable notice to Client for its ongoing due diligence and external audit requirements, subject to reasonable assurances of confidentiality and provided such cooperation and access do not cause an undue burden or expense to LAMP or otherwise interfere with LAMP’s business operations.

                  d.          Hiring/Attempted Hiring Of Either Party’s Employees. Neither Client nor LAMP will hire or attempt to hire personnel from the other party or its affiliates during the term
of this Agreement or within three (3) years following its termination.
 
	
            3.  Fees and Expenses

             
 
	
            a.           Compensation and Expenses. Client shall pay LAMP each month fees as defined in Exhibit E for CPO Portfolios, attached hereto and incorporated herein by reference, for the performance of LAMP’s obligations. All asset-based fees are based on beginning of month fund equity including notional funding.

LAMP shall be responsible for the compensation of its own personnel and any subcontractors hired at its own discretion, and for LAMP’s general overhead incurred in connection with the services provided by it.

The Funds or Client (as applicable) will pay their own professional costs such as legal and accounting fees and shall reimburse LAMP for its out-of-pocket
expenses as set forth in Exhibit E.

b.          Billing and Payment. LAMP will bill monthly in advance all fees to Client. LAMP will itemize all fees and expenses. LAMP will deliver an itemized invoice to Client detailing its fees and out-of-pocket expenses, which shall be paid by Client by check delivered or direct deposit into LAMP’s account within ten (10) business days following LAMP’s delivery such invoice.

Upon the termination of this Agreement, Client shall immediately pay or cause to be paid all outstanding reimbursements to LAMP under this Agreement.  Further, if termination is other than at a month end, Client shall pay to LAMP all expenses and pro rated fees for the final month.
 

  

	
            4.  Safeguarding of Information, Confidentiality. Each party agrees (i) to keep all Confidential Information confidential, (ii) not use the Confidential Information other than for purposes of performing its obligations under this Agreement, (iii) not to disclose the Confidential Information to any third parties except as required to perform its obligations under this Agreement or as required by law.

 The term “Confidential Information” means all information relating to the other party to this Agreement provided to the other party pursuant hereto which is identified in writing as
confidential or is reasonably believed by such other party to be confidential in nature but does not include information which (i) is or becomes generally available to the public other than as a result of a disclosure by such other party, it representatives or affiliates or (ii) is or becomes available on a nonconfidential basis to a party from a source other than such other party, its representatives or affiliates (iii) is already known by such party, its representatives or affiliates on the date of hereof other than as a result of disclosure by the other party.

Neither party will use the name of the other party in its marketing materials without prior written consent of such other party.  

 

                                                                      2
 
	
            5.  Term and Termination.
 
	
            a.           Term. Unless sooner terminated as provided below, this Agreement shall continue in effect for a term of two (2) years from the first month-end following the execution hereof (the “Initial Term”). Thereafter, this Agreement shall automatically renew for successive two (2) year periods (each, a “Successive Term: and, together with the Initial Term, each, a “Term”), unless either party gives written notice of non-renewal to the other party at least one hundred and eighty (180) days prior to the renewal date.

b.      Termination. This Agreement may be terminated:
 
	
            (i)     at the end of any Term upon at least one hundred and eighty (180) days written notice to the other party, or

(ii)   at any time
by either party, upon at least thirty (30) days (fifteen (15) days in the case
of failure to pay) written notice of a material breach or material non-performance by the other party of its obligations under this Agreement if at the end of the notice period such material breach or material non-performance has not been cured and is continuing.

 
 
	
            In the event of termination by LAMP, other than in accordance with clause (ii) above, LAMP shall, if so requested by Client, continue to provide services hereunder for a period of up to ninety (90) days after the termination date and shall receive compensation during such transition period at the same level as provided in Section 3.
 

 

	
            6.  Liability; Indemnification. LAMP shall not be liable for any error of judgment or mistake of law or for any loss arising out of any act or omission in the provision of fund accounting and reporting services pursuant to this Agreement, except for losses arising from LAMP’s gross negligence or willful misconduct in the performance of its duties, or by reason of reckless disregard of its obligations and duties hereunder.  As used in this Section 6, the term “LAMP “ shall include LAMP, its affiliates and their respective shareholders, members, officers, directors, employees, agents, or controlling persons to which LAMP delegates obligations hereunder.  Further, in no event shall LAMP be liable for any consequential damages.  To the fullest extent permitted by law, Client shall indemnify and hold harmless LAMP if made a party or
threatened to be made a party to any threatened, pending or contemplated action, suit or proceeding, whether civil, criminal, administrative or investigative (including any action by or in the right of Client or the Funds), by reason of any act or omission or alleged act or omission relating to the Funds or this Agreement if such activities were performed in good faith either on behalf of the Funds or Client or in furtherance of the interests of the Funds or Client, and in a manner reasonably believed by it to be within the scope of the authority conferred by this Agreement or by law, against losses, damages, or expenses for which it has not otherwise been reimbursed (including, but not limited to, attorney’s fees, judgments, fines and amounts paid in settlement) actually and reasonably incurred by it in connection with such action, suit or proceeding so long as it was not guilty of gross negligence, willful misconduct, reckless disregard of its duties and obligations hereunder
with respect to such acts or omissions, and with respect to any criminal action or proceeding, has no reasonable cause to believe its conduct was unlawful.

In no case shall Client be liable under this indemnity agreement with respect to any claim made against LAMP unless Client shall be notified in writing of the nature of the claim within a reasonable time after the assertion thereof, but failure to so notify Client shall not relieve Client from any liability which it may have otherwise than on account of this indemnity agreement. Client shall be entitled to participate at its own expense in the defense or, if it so elects within a reasonable time after receipt of such notice, to assume the defense of any suit so brought, which defense shall be conducted by counsel chosen by it and satisfactory to LAMP. In the event that Client elects to assume the defense of any
such suit and retain such counsel, LAMP shall bear the fees and expenses of any additional counsel thereafter retained by it unless (a) the employment of such counsel shall be authorized by Client, or (b) LAMP shall have reasonably concluded that its interests and those of Client are adverse or inconsistent with respect to defenses against payment, in which event the reasonable fees and expenses of one counsel for all indemnified parties selected by LAMP shall be borne by Client. Client shall advance costs to LAMP so long as LAMP agrees in writing to reimburse Client for such costs (without interest) in the event it is finally determined that LAMP is not entitled to reimbursement hereunder.

The foregoing agreement of indemnity shall be in addition to, and shall in no respect limit or restrict, any other remedies which may be available to LAMP.

 

                                                                                                   3
 
	
            7.   Representations and Warranties. Each party hereby represents and warrants to the other party:

a.      Corporate Existence. It duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation and has the requisite power and authority to enter into and perform its obligations under this Agreement in accordance with its terms.

b.      Due Authorization. The execution, delivery, and performance of this Agreement by it have been duly and effectively authorized by all necessary action. This Agreement, upon execution by both parties, will constitute the legal, valid and binding obligation of it, except as may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors rights generally and except as may be limited by general principles of equity.

c.      No Conflict. The execution, delivery and performance of this Agreement by it, do not conflict with any provision of law applicable to it or result in any breach of its constituent
documents, or any order, judgment or other restriction by which it may be bound.
 
	
            8.  Miscellaneous.
 

  

	
            a.      Services of LAMP Not Exclusive. The services of LAMP to Client and the Funds hereunder are not to be deemed exclusive and LAMP shall be free to conduct any other business in its sole discretion, including but not limited to rendering similar services to others.

b.      Amendments. This Agreement may not be amended or modified except by an instrument in writing executed by both parties hereto.

c.      Assignability. This Agreement may not be assigned by Client without the express written consent of LAMP. LAMP may assign or delegate the performance of any of its obligations hereunder to any affiliate of LAMP or an unrelated service provider (it being understood that LAMP will remain liable for the performance of such delegated obligations).

d.      Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.

e.       Entire Agreement. This Agreement contains the entire agreement between the parties hereto with respect to matters to which it pertains and supersedes all prior oral and written agreements and understandings between the parties with respect thereto.

f. GOVERNING LAW; JURISDICTION. ALL TERMS OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, USA, WITHOUT REGARD TO SUCH STATE’S PRINCIPLES REGARDING CONFLICTS OF LAW.  The parties consent and submit to the jurisdiction of the federal and state courts located within Dallas, Texas, USA, in case of a dispute or claim
arising hereunder.

g.       Notices. All notices and other communications required or permitted hereunder shall be delivered, telexed, cabled or mailed (by registered or certified mail, postage prepaid, or by Federal Express or similar express mail service) to the parties hereto at their respective addresses set forth below:
 
	
            If to Client:

Ruvane Fund Management Corporation 
 Four Benedek Road

Princeton, NJ 08540

Attention: Robert Lerner

Facsimile: (609) 921-0577

If to LAMP
:

LAMP Technologies LLC

8144 Walnut Hill Lane, Suite 300

Dallas, Texas 75231

Attention: Aladin T. Abughazaleh

Facsimile: (214) 346-4801

 

                                                                                                        5

 
 

  

	
            h.      Survival. Notwithstanding anything to the contrary contained in this Agreement, the provisions of Sections 2(d), 4 and 6 shall remain operative and in full force and effect, and shall survive the termination of this Agreement.

i.      No Waiver. No failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof of the exercise of any other right, power or remedy. Any waiver granted hereunder must be in writing and shall be valid only in the specific instance in which given.

j.      Attorneys’ 
Fees.  In the event litigation is required to enforce any provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees to the extent it prevails.

k.      Severability. If any provision of this Agreement, or the application of any provision to any person or circumstance, shall be held to be inconsistent
with any present or future law, ruling, rule or regulation of any court or governmental or regulatory authority having jurisdiction over the subject matter hereof, such provision shall be deemed to be rescinded or modified in accordance with such law, ruling, rule or regulation, and the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it shall be held inconsistent, shall not be affected thereby.

l.        Counterparts. The Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

m.     Force Majeure. If LAMP is prevented or delayed form or in performing any of its obligations under this Agreement by reason of the occurrence of a natural or man-made disaster, armed conflict, act of terrorism, riot or labor disruption, diversion and sabotage, strike, changes in legislation, other acts of God or circumstances affecting communications or LAMP’s systems, where in each case the relevant event or circumstances is beyond LAMP’s control, then LAMP shall notify Client of such event or circumstance and of the obligations performance of which is thereby delayed or prevented, and LAMP shall thereupon be excused the performance or punctual performance, as the case may by, of such obligations for so long as the relevant event or circumstance of prevention or
delay may continue (and such failure of performance or punctual performance shall not constitute material non-performance for termination purposes.) This section shall be reciprocal in its operation and provide the same Force Majeure rights to the Client as provided to LAMP as described immediately above in this section.

n.      Delivery Services. LAMP may utilize Federal Express, UPS and similar express carriers, all of which are deemed acceptable delivery means by Client, and if any such carrier fails to deliver timely to Client such failure shall not constitute material non—performance hereunder.
 
	
            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written by their respective officers and representatives.

 
 
	
             
 

 

	
             
 	
            RFMC Global Directional Fund, L.P.

 
 
	
             
 	
             
 
	
             
 	
            By:  _________________________________
 
	
             
 	
            Name:
 
	
             
 	
            Title:
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            LAMP TECHNOLOGIES LLC

 
 
	
             
 	
             
 
	
             
 	
            By:  _________________________________
 
	
             
 	
            Name:
 
	
             
 	
            Title:
 
	
             
 	
             
 

 

 

 

                                                                                              6

 

 

	
            EXHIBIT A

TO

FUND ACCOUNTING AND REPORTING AGREEMENT

LAMP’S SERVICES
 
	
            LAMP will provide the daily preliminary, daily reconciled and monthly reporting. LAMP creates accounting and reporting from transactional data supplied by the brokers utilized by the fund and offsets positions using intraday/FIFO method.
 
	
             
 
	
            NOTE:  Delivery times are dependent upon Client deliverable times listed in Exhibit D. Web reporting from LAMP will commence no later that 45 days after the Effective Date:
 
	
             
 	
             
 	
             
 
	
            Daily Internet Reporting 
 Preliminary Reports — un-reconciled
 	
            Frequency
 	
            Expected Delivery Time
 
	
            LAMP customary web reporting suite as it may be amended from time to time
 	
            Daily, T+0
 	
            8:00 PM CST
 

 

 

	
            Daily Internet Reporting 
 Daily Reports - reconciled
 	
            Frequency
 	
            Expected Delivery Time
 
	
             
 	
             
 	
             
 
	
            LAMP customary web reporting suite as it may be amended from time to time
 	
            Daily, T+1
 	
            3:00 PM CST
 

 

 

	
            Monthly Reports 
 	
            Frequency
 	
            Delivery Time
 
	
             
 	
             
 	
             
 
	
            LAMP customary month-end financial reporting as it may be amended from time to time.

 

Commission Allocation Report.
 	
            Monthly
 	
            15 Business Days
 

 *NOTE – LAMP does not provide footnotes as a part of its 

Fund Accounting Services

                                                                                                7

 

 

	
            EXHIBIT B

TO

FUND ACCOUNTING AND REPORTING AGREEMENT

BROKERS AND DEALERS
 
	
            Broker
 	
            Contact & Phone
 	
            Instruments

Traded
 	
            Broker Transmission Type
 
	
             
 	
             
 	
             
 	
            Fixed Format

Electronic
 	
            Readable 

Electronic
 	
            FAX
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 
	
             
 
	
             
 
	
            Instruments Traded
 
	
             
 
	
            A           Exchange-traded Futures
 
	
            B            Exchange-traded Options on Futures
 
	
            C            Foreign Exchange, Cash and Forwards
 
	
            Electronic – Complete and structurally stable electronically delivered data file or report files for automated processing. See description in Section 1 of the Agreement.
 
	
             
 
	
            NOTE:  As Brokers, Advisors and Trading accounts and/or instrument types are added or changed, this Exhibit must be updated and agreed to in a timely manner prior to their trading by all parties to reflect those changes. Facsimile report of daily transactional data from Advisors cause Client to incur manual trade entry costs. Facsimile transmissions of break sheets from Advisors are acceptable.
 
	
             
 

 

                                                                                         8

 

	
            EXHIBIT C

TO

FUND ACCOUNTING AND REPORTING AGREEMENT

ADVISORS

 

 
 
	
            Advisor
 	
            Contact & Phone
 	
            Instruments

Traded
 	
            Advisor Transmission Type
 
	
             
 	
             
 	
             
 	
            ASCII File
 	
            Excel File
 	
            Other
 
	
            Welton Investment Corporation
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 
	
             
 
	
             
 
	
            Instruments Traded
 
	
             
 
	
            A           Exchange-traded Futures
 
	
            B            Exchange-traded Options on Futures
 
	
            C            Foreign Exchange, Cash and Forwards

 
 
	
            Files – Complete and structurally stable electronically delivered ASCII data or report files for automated processing.  See description in Section 1 of the Agreement.
 
	
             

            
            

 
 
	
            NOTE:  As Brokers, Advisors and Trading accounts and/or instrument types are added or changed, this Exhibit must be updated and agreed to in a timely manner prior to their trading by all parties to reflect those changes. Facsimile report of daily transactional data from Advisors cause Client to incur manual trade entry costs. Facsimile transmissions of break sheets from Advisors are acceptable.
 
	
             
 

 

                                                                                         9

 

	
            EXHIBIT D

TO

FUND ACCOUNTING AND REPORTING AGREEMENT

CLIENT DELIVERABLES
 
	
            To be delivered on behalf of Client
 	
            Delivery Time**
 
	
            Cause LAMP to receive data /files and daily transactional and cash information daily from Brokers in an accurate and timely manner
 	
            3:00 AM T+1
 
	
            Provide legible, accurate copies of all account/fund expenditures and non-trading accruals
 	
            As occur
 
	
            Provide legible, accurate cash account additions and expenditures
 	
            As occur
 
	
            Provide legible, accurate Advisor reallocations
 	
            As occur
 
	
            Provide legible, accurate investor additions, redemption’s and other investor related information
 	
            As occur
 
	
            Provide legible, accurate reporting of all hedging and or cash management activity
 	
            As occur
 
	
            Provide all account/fund documents relating to their accounting and non investor reporting requirements
 	
            As requested or required in this Agreement
 
	
            Provide all Advisor documents relating to their accounting and non investor reporting
 	
            As occur or as required in this Agreement
 
	
            Provide to LAMP all historic data to produce all financial reports and any other reports requested by Client
 	
            As occur or as required in this Agreement
 
	
            Provide all information required by LAMP to initiate a new account or Advisor
 	
            As occur
 
	
            Cause LAMP to receive monthly bank statements
 	
            As occur
 
	
            Cause LAMP to receive monthly broker statements
 	
            As occur
 
	
             
 	
             
 
	
            * Due to the nature of the work being performed by LAMP, timely cooperation with all related parties is a necessity. To the extent that this cooperation is not obtained, the timeliness and accuracy of LAMP’s duties may be negatively impacted, thereby preventing Client from obtaining the service level desired.

             
 
	
             
 	
             
 
	
            **Failure to provide required information by the time designated will cause LAMP to provide inaccurate or incomplete preliminary and daily information to Client. LAMP can not be responsible for missing or late data from Advisors or Brokers although LAMP will use best efforts to collect the data.

             

             
 
	
             
 	
             
 
	
            NOTE: All times are CST
 	
             
 
	
            
             

             
 	
             
 
	
            T+0 is defined as trade date
 	
             
 
	
             
 	
             
 
	
            T+1 is defined as the next business day following trade date
 	
             
 
	
             
 	
             
 

 

 

                                                                                     10

	
            EXHIBIT E

TO

ACCOUNTING SERVICES AGREEMENT

FEES TO LAMP; EXPENSES

  
 
	
            A.          Fees to LAMP
 	
             
 
	
             
 	
             
 
	
            Fee Schedule
 
	
             
 	
             
 
	
            Structure-Based Fee Schedule
 	
             
 
	
            Monthly base cost per advisor (data pulled from broker reports on T+1)
 	
            $               275
 
	
            Monthly premium for each account requiring balancing to broker or bank - T+0 reporting)
 	
            250
 
	
            Monthly cost per FCM / Carrying broker
 	
            100
 
	
            Monthly cost for monthly financials at fund level (or share class)
 	
            1,000
 
	
            Monthly cost per UNIT-based investor
 	
            3.00
 
	
            Monthly cost per CAPITAL-based investor
 	
            5.00
 
	
             
 	
             
 
	
             
 	
             
 
	
            Asset Based Fee Component
 	
             
 
	
            Asset based fee up to and including break point 1
 	
            0.15%
 
	
            Asset based fee above break point 1 and up to and including break point 2
 	
            0.13%
 
	
            Asset based fee above break point 2 and up to and including break point 3
 	
            0.12%
 
	
            Asset based fee above breakpoint 3
 	
            0.10%
 
	
            Break point 1
 	
            10,000,000
 
	
            Break point 2
 	
            50,000,000
 
	
            Break point 3
 	
            100,000,000
 
	
             
 	
             
 
	
             
 	
             
 
	
            Set Up Fees
 	
             
 
	
            One-time set up charges
 	
            3,000
 
	
             
 	
             
 
	
             
 	
             
 
	
            Minimum Applicable Fees
 	
             
 
	
            Monthly minimum per fund
 	
            3,000
 
	
            Monthly minimum per advisor
 	
            500
 
	
            Applicable monthly minimum fee
 	
            3,000
 
	
             
 	
             
 
	
             
 	
             
 
	
            Additional Services:
 	
             
 
	
            Value at Risk Reporting (fixed per month)
 	
            1,500
 
	
            Consulting support for SEC filings (estimate per quarter - includes sub-vendors and subject to fluctuation)
 	
            13,000
 
	
             
 	
             
 
	
             
 	
             
 
	
            Additional one time charges:
 	
             
 
	
            	
            For each new account opened - $300 USD one time setup charge

              
	
            For each account closed - $150 USD one time closing fee

              
	
            For each account transferred between FCMs - $500 USD one time transfer fee.

              
	
            For each new FCM - $500 one time parsing fee

              
	
            For Changing FCMs - $100 per hour

              

        	
             
 
	
             
 	
             
 

	
             
 	
             
 
	
            11
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
             
 
	
            B.           Expenses
 
	
             
 
	
            1. Out-of-pocket Expenses: Beginning on the Effective Date, Client shall reimburse LAMP for all out-of-pocket expenses incurred by LAMP in connection with LAMP’s performance of services hereunder, in accordance with the following schedule:

 
 
	
            	
            Photocopying and facsimiles will be charged at the rate of US$.25 for each single-sided page plus delivery costs beyond the provision of one (1) complete set [two (2) for the last month of each Fund’s fiscal year] of financials and all supporting documentation each month.

              
	
            There is no additional charge for reports/files delivered through LAMP’s Internet reporting system.

              
	
            Postage, express mail and messenger services will be as charged by the third party.

              
	
            Data feed charges (if applicable) attributable to Client will be as charged by the third party.

              
	
            Travel expenses (pre-approved by Client) will be as charged by the third parties.

              
	
            Other incidental expenses incurred on the Funds’ or Client’s behalf will be as charged by the third party.  LAMP shall obtain Client’s consent before incurring any non-routine expense over US$500.00.

              

        
	
            2.           Extraordinary Expenses. In cases where LAMP may spend extraordinary resources to support Client’s needs, additional charges will be made by LAMP to Client. LAMP will specifically inform Client that extraordinary fees may be charged prior to the commencement of the work for which the charges will be made.
 
	
            
            3.           Additional Service Requirements. The fee structure described herein is based on:
 
	
            	
            LAMP’s services being as described in Exhibit A.

              
	
            a maximum of twelve month-end closings per year per Fund.

              
	
            close cooperation of Client and its agents with LAMP.

              
	
            all Fund expenses being paid and tracked by Client and reported timely to LAMP.

              
	
            Client overseeing all audits in Client’s offices (LAMP personnel will not be present unless specifically requested by Client).

              
	
            Client performing all cash management and associated reconciliation responsibilities and reporting the results of same in a timely manner to LAMP.

              
	
            Client and its clients providing their own Internet access and utilizing Microsoft Internet Explorer Version 6.0 or higher browser technology to obtain delivery of reports designated as deliverable over the Internet.

              
	
            All equity run reports and data file transmissions being completed without error no later than 1 a.m. Central time immediately following the trading day.

              
	
            
            Advisors’ trade confirmations being received by LAMP by 4 p.m.
            Central time on the trading day.
 
	
            Client executing all reasonably necessary documents and agreements required by LAMP’s vendors necessary for LAMP to meet its obligations to Client hereunder (for example, confidentiality agreements relating to pricing information supplied by third-party vendors).

              
	
            LAMP will not provide any services on the days banks in Dallas are closed to observe the following holidays: New Years’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

              
	
            Client promptly reviewing all reports provided by LAMP hereunder.

              
	
            Client promptly notifying LAMP in writing of any problems with LAMP’s reports which occur at any time.

              
	
            If Client has notified LAMP of a reporting error within 30 calendar days of Client’s receipt of a report, LAMP, will, if so required, make a month-end accounting adjustment to address the issue. If LAMP has not been so notified, Client shall be deemed to have accepted such report. If Client has notified LAMP of a reporting error within 2 business days of Client’s receipt of a daily transaction report, LAMP will, if so required, issue a re-statement of such daily transaction report; If LAMP has not been so notified, Client shall be deemed to have accepted such report.

              
	
            If LAMP needs verification on an accounting policy issue, the parties will discuss the issue and document and implement the resolution of the issue.  If the parties later decide that the resolution was inaccurate, additional fees shall apply to any reports which need to be restated at LAMP’s standards rates provided herein.

              

        
	
            Additional fees may apply if any of the foregoing additional service requirements are not complied with by Client.

	
             
 
	
            
            4.           Documentation Expenses. Each party shall bear its own legal fees and expenses incurred in preparing and negotiating this Agreement and related documentation.
 
	
             
 
	
             
 
	
            12
 
	
             
 
	
             
 
	
             
	
             
	
             
	
             
	
             
 
	
            EXHIBIT F

TO

ACCOUNTING SERVICES AGREEMENT

FUNDS TO TRANSITION
 
	
             
 
	
            RFMC Global Directional Fund, L.P.

 
 
	
             
 
	
             
 
	
             
 
	
             
 
	
             
 
	
             
 
	
        
	
        
	
        
	
        
	
        
	
        
	
        
	
        
	
        
	
        
	
             
 
	
            
            13

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