Document:

Exhibit 10.8

Dated: ______________________

ETFS COLLATERALIZED
COMMODITIES TRUST

FORM OF DIRECT AGREEMENT

 (relating to Funds established each as a
separate series within the Trust)

between:

[COUNTERPARTY]

and

[AUTHORIZED PARTICIPANT]

1

 Contents 

	
  

 	
  

 	
  

 
	
 1. Defined
 terms and interpretation

 	
  

 	
 3

 
	
  

 	
  

 	
  

 
	
 2. Obligations
 Relating To Settlement Failures

 	
  

 	
 8

 
	
  

 	
  

 	
  

 
	
 3. Undertakings

 	
  

 	
 10

 
	
  

 	
  

 	
  

 
	
 4. Representations

 	
  

 	
 11

 
	
  

 	
  

 	
  

 
	
 5. Acknowledgements
 of Authorized Participant

 	
  

 	
 12

 
	
  

 	
  

 	
  

 
	
 6. Payments
 and Interest

 	
  

 	
 12

 
	
  

 	
  

 	
  

 
	
 7. Deduction
 or Withholding for Tax

 	
  

 	
 13

 
	
  

 	
  

 	
  

 
	
 8. Set-Off

 	
  

 	
 17

 
	
  

 	
  

 	
  

 
	
 9. Notices

 	
  

 	
 17

 
	
  

 	
  

 	
  

 
	
 10. Amendment

 	
  

 	
 18

 
	
  

 	
  

 	
  

 
	
 11. Termination

 	
  

 	
 18

 
	
  

 	
  

 	
  

 
	
 12. Assignment

 	
  

 	
 18

 
	
  

 	
  

 	
  

 
	
 13. Survival

 	
  

 	
 19

 
	
  

 	
  

 	
  

 
	
 14. Miscellaneous

 	
  

 	
 19

 
	
  

 	
  

 	
  

 
	
 15. Governing
 law and Jurisdiction

 	
  

 	
 19

 
	
  

 	
  

 	
  

 
	
 16. Counterparts

 	
  

 	
 19

 
	
  

 	
  

 	
  

 
	
 Schedule 1
 Representations and Warranties by Authorized Participant

 	
  

 	
 20

 
	
  

 	
  

 	
  

 
	
 Schedule 2 Representations and Warranties by Counterparty

 	
  

 	
 21

 

2

DIRECT AGREEMENT

THIS AGREEMENT is made
the [________] day of [________], 

Between:

	
  

 	
  

 
	
 (1)

 	
 __________, a
 __________ corporation (“Counterparty”); and

 
	
  

 	
  

 
	
 (2)

 	
 __________, a __________ corporation
 (“Authorized Participant”);

 

Whereas:

	
  

 	
  

 
	
 (A)

 	
 ETFS Collateralized Commodities Trust, a
 Delaware statutory trust whose office is located at _____________(“Trust”)
 has established a platform pursuant to which Shares issued by separate series
 thereof (“Funds”) will be subscribed by Authorized Participant and other
 parties each in their own capacity as an authorized participant.

 
	
  

 	
  

 
	
 (B)

 	
 Funds will enter into Commodity Contracts
 with Counterparty in accordance with the terms of the Facility Agreement
 between Counterparty and the Funds.

 
	
  

 	
  

 
	
 (C)

 	
 Counterparty and Authorized Participant
 wish to record certain arrangements which they have made in relation to the
 issuance of Shares by the Funds and the entering into of Commodity Contracts
 between Counterparty and the Funds.

 

Now it is hereby agreed as follows:

	
  

 	
  

 
	
 1.

 	
 Defined terms and interpretation

 

Defined terms

1.1 In this
Agreement, the following words and expressions have the following meanings
unless the context otherwise requires:

“Additional
Termination Event” has the meaning given in the Master Agreement;

“Affected
Party” has the meaning given in the Master Agreement;

“Affected
Transaction” has the meaning given in the Master Agreement;

“Affiliate” means,
in relation to any person, any entity controlled, directly or indirectly, by
that person, any entity that controls, directly or indirectly, that person, or
any entity directly or indirectly under common control with that person; and
for this purpose, control of any entity or person means ownership of a majority of
the voting power of the entity or person;

“Agreement”
means this agreement between Authorized Participant and Counterparty;

“Authorized Individual” means, in respect of a Party, a natural person having authority on
behalf of that Party to sign notices, give instructions and make binding
commitments on behalf of that Party in relation to activities contemplated by
the Facility Agreement or this Agreement as notified in writing by such Party
from time to time;

3

“Authorized
Participant” means _____________; 

“Authorized
Participant Agreement” means the Authorized Participant agreement relating to
Shares dated [______] between Authorized Participant, Sponsor, and Trust on
behalf of each Fund, which sets forth the procedures for the creation and
redemption of Shares in a Fund;

“Authorized Participant Delayed Settlement” means, in relation to any Commodity Contracts, the Creation Order
Amount with respect to the corresponding Shares not being paid into the Commodity
Contract Counterparty Account in full in cleared and immediately available US
Dollar funds on the Payment Date for the entering into of those Commodity
Contracts, other than any such failure which has occurred as a result of (i)
the failure of Counterparty to comply with its obligations in respect of such
Commodity Contracts under the Facility Agreement, (ii) such payment being
discharged by way of set-off between Authorized Participant and Fund under the
Authorized Participant Agreement, or (iii) an Authorized Participant Settlement
Failure;

“Authorized Participant Settlement Failure” means, in relation to any Commodity Contracts, the failure by
Authorized Participant to comply with its obligations in respect of the
Creation Order for the Shares relating to those Commodity Contracts under the
Authorized Participant Agreement (including without limitation a failure to pay
the Creation Order Amount in respect of those Shares on the Payment Date
therefor in full in cleared and immediately available US Dollar funds into the
Commodity Contract Counterparty Account in accordance with the Authorized
Participant Agreement), other than any such failure which has occurred as a
result of (i) the failure of Fund to comply with its obligations in respect of
the issue of those Shares under the Authorized Participant Agreement or (ii)
the failure of Counterparty to comply with its obligations in respect of the
entering into of the corresponding Commodity Contracts under the Facility
Agreement;

“Business Day” means
a Day (other than a Saturday or a Sunday) on which commercial banks and foreign
exchange markets settle payments and are open for general business (including
dealings in foreign exchange and foreign currency deposits) in New York;

“Change in Tax Law” means (a) any action
taken by a taxing authority, or brought by a taxing authority in a court of
competent jurisdiction after the date of this Agreement (regardless of whether
such action is taken or brought with respect to a Party); or (b) the
announcement, enactment, promulgation, execution or ratification of, or any
change or proposed change in or amendment or proposed amendment to, any law,
treaty or practice relating to tax (or in the application or official
interpretation by any competent authority of any law, treaty or practice
relating to tax) that occurs on or after the date of this Agreement;

“Commodity
Contract” means a contract between Fund and Counterparty entered into in
accordance with the Facility Agreement, establishing obligations of
Counterparty to Fund;

“Commodity
Contract Counterparty Account” means the bank account notified by Counterparty
to Fund as such under the Facility Agreement from time to time;

“Compensation
Amount” has the meaning given in Section 2.4;

“Compensation
Amount Determination Date” has the meaning given in Section 2.3;

“Counterparty”
means ________; 

4

“Counterparty Delayed Settlement” means, in relation to any Commodity Contracts corresponding to
Shares held by Authorized Participant which are to be Redeemed, the Termination
Amount with respect to those Commodity Contracts not being paid into the
applicable Redemption Account (as defined in the Facility Agreement) in full in
cleared and immediately available US Dollar funds on the Payment Date for the
termination of those Commodity Contracts, other than any such failure which has
occurred as a result of (i) the failure of Authorized Participant to comply
with the provisions of the terms and conditions of the Shares relating to the
Redemption of the corresponding Shares under the Authorized Participant
Agreement, (ii) such payment being discharged by way of set-off between
Counterparty and a Fund under the Facility Agreement, or (iii) a Counterparty
Settlement Failure;

“Counterparty Settlement Failure” means, in relation to any Commodity Contracts, the failure by
Counterparty to comply with its obligations in respect of the termination of
those Commodity Contracts under the Facility Agreement (including without
limitation a failure to pay the Termination Amount in respect of those Commodity
Contracts on the Payment Date therefor in full in cleared and immediately
available US Dollar funds into the applicable Redemption Account (as defined in
the Facility Agreement) in accordance with clause ___ of the Facility
Agreement), other than any such failure which has occurred as a result of the
failure of Authorized Participant to comply with the provisions of the terms
and conditions of the Shares relating to the Redemption of the corresponding
Shares;

“Creation
Order” means an order for the issue of Shares by Fund given by the Authorized
Participant in accordance with the Authorized Participant Agreement;

“Creation
Order Amount” means the amount payable in respect of a Creation Order for
Shares by crediting such amount to the Commodity Contract Counterparty Account
in accordance with the Authorized Participant Agreement by Authorized
Participant to Fund;

“DTC” means the
Depository Trust Company, a limited purpose trust company organized under New
York law, a member of the U.S. Federal Reserve System and a clearing agency
registered with the SEC. DTC will act as the securities depository for the
shares of each Fund.

“Default Rate” means
a rate per annum of interest equal to ________, compounding daily;

“Delayed Settlement” means either a Counterparty Delayed Settlement or an Authorized
Participant Delayed Settlement;

“Determining
Party” means, in relation to any Settlement Failure, the Party which is not the
Settlement Failure Party;

“Early
Termination Date” has the meaning given in the Master Agreement;

“Facility
Agreement” means the Facility Agreement dated [________] between Counterparty
and the Fund providing for the entering into and termination of Commodity
Contracts;

“Funding Rate” means
a rate per annum of interest equal to _______, compounding daily;

“Group” means,
in relation to a person, that person and any Affiliate of that person;

5

“Hedging
Position” means, with respect to one or more Shares (if Authorized Participant
is the Determining Party) or Commodity Contracts (if Counterparty is the
Determining Party), any transaction (or group or series or portions of
transactions) entered into by the Determining Party (or an Affiliate of the
Determining Party) with any other person or persons (including, without
limitation, Authorized Participant, Counterparty or an Affiliate of any of
them) which it is commercially reasonable to regard as limiting or having the
effect of limiting the extent to which the Determining Party (or an Affiliate
of the Determining Party) will be affected by any risk or other exposure
arising under or in respect of such Shares as a result of Authorized
Participant giving a Creation Order Form or a Redemption Notice in respect of
those Shares (if Authorized Participant is the Determining Party), or in
respect of such Commodity Contracts as a result of Fund giving any Notice for
entering into or termination of those Commodity Contracts (if Counterparty is
the Determining Party);

“Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect
of a payment under this Agreement but for a present or former connection
between the jurisdiction of the government or taxation authority imposing such
Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or
related person being or having been a citizen or resident of such jurisdiction,
or being or having been organised, present or engaged in a trade or business in
such jurisdiction, or having or having had a permanent establishment or fixed
place of business in such jurisdiction, but excluding a connection arising
solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this
Agreement);

“Loss” has the
meaning given in the Master Agreement, but as if the word “includes” in the
second sentence of the definition of such term in the Master Agreement were
amended to “excludes” and as if the words “except, so as to avoid duplication,
if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies” were deleted;

“Master Agreement” means:

	
  

 	
  

 	
  

 
	
 (a)

 	
 [if Counterparty and Authorized Participant have
 an existing ISDA Master: the 1992 ISDA Master Agreement
 (Multicurrency–Cross Border) dated [_____] between Counterparty and
 Authorized Participant (including the Schedule thereto)]

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 [if Counterpary and Authorized Participant do not
 have an existing ISDA Master:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 (a) with effect from the execution and
 delivery of a 1992 ISDA Master Agreement (Multicurrency–Cross Border) between
 Counterparty and Authorized Participant, such agreement (including the
 Schedule thereto) and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 (b) prior to such execution and delivery,
 an agreement in the form of the 1992 ISDA Master Agreement
 (Multicurrency–Cross Border) (including the Schedule thereto) as if
 Counterparty and Authorized Participant had executed an agreement in such a
 form (but without any schedule thereto except for the election of New York
 law as the governing law, “Loss” as the payment measure, “Second Method” as
 the payment method and US Dollars as the termination currency)];

 

“Notice” has
the meaning given in Section 9.1;

6

“Notional
Transaction” has the meaning given in Section 2.4;

“Other
Amounts” has the meaning given in Section 8.1;

“Party” means a
party to this Agreement;

“Payment Date”
has the meaning given in the Facility Agreement;

“Proceedings”
has the meaning given in Section 15.2;

“Prospectus” means
the prospectus dated ________;

“Redemption”
means the redemption of Shares;

“Redemption
Amount” means the amount payable by or on behalf of a Fund to Authorized
Participant upon Redemption of Shares;

“Relevant
Transaction” has the meaning given in Section 4.3;

“Settlement Failure” means either a Counterparty Settlement Failure or an Authorized
Participant Settlement Failure;

“Settlement
Failure Amounts” has the meaning given in Section 8.1;

“Settlement Failure Date” means, in relation to a Settlement Failure, the date on which such
Settlement Failure occurred;

“Settlement Failure Party” means, in relation to a Settlement Failure, (a) Counterparty if the
Settlement Failure is a Counterparty Settlement Failure or (b) Authorized
Participant if the Settlement Failure is an Authorized Participant Settlement
Failure;

“Sponsor” means ETF Securities USA LLC, a Delaware
limited liability company;

“Tax” means
any present or future tax, levy, impost, duty, charge, assessment or fee of any
nature (including interest, penalties and additions thereto) that is imposed by
any government or other taxing authority in respect of any payment under this
Agreement other than a stamp, registration, documentation or similar tax;

“Termination”
means the termination of Commodity Contracts in accordance with the Facility
Agreement;

“Termination
Amount” means, in respect of a Termination, the amount determined in accordance
with paragraph __ of Schedule __ of the Facility Agreement for that
Termination;

“Termination
Currency” has the meaning given in the Master Agreement;

“Transaction”
has the meaning given in the Master Agreement;

“US Dollars”
means the lawful currency of the United States of America.

7

Interpretation

1.2 The
following rules shall apply to the interpretation of this Agreement unless the
context otherwise requires:

	
  

 	
  

 
	
 (a)

 	
 Headings to sections, paragraphs, and other
 provisions of this Agreement are inserted for ease of reference only and
 shall not affect the interpretation of this Agreement.

 
	
  

 	
  

 
	
 (b)

 	
 Any reference to a person or persons
 includes reference to any individual, corporation, partnership, joint
 venture, association, public body, governmental authority or other entity.

 
	
  

 	
  

 
	
 (c)

 	
 Words in the singular shall also include
 the plural and vice versa.

 
	
  

 	
  

 
	
 (d)

 	
 Any reference to a Section or Schedule is a
 reference to a Section or Schedule of this Agreement.

 
	
  

 	
  

 
	
 (e)

 	
 Any reference to this Agreement or to any
 other agreement or document includes a reference to this Agreement, or, as
 the case may be, such other agreement or document, as amended, varied,
 novated, supplemented or replaced from time to time.

 
	
  

 	
  

 
	
 (f)

 	
 Any reference in this Agreement to a time
 is a reference to local time in London, England.

 

Non
Waiver

1.3 No failure
or delay by any Party in exercising any right or remedy provided by law under
or pursuant to this Agreement shall impair such right or remedy or operate or
be construed as a waiver or variation of such right or remedy or preclude its
exercise at any subsequent time and no single or partial exercise of any such
right or remedy shall preclude any other or further exercise of it or the
exercise of any other right or remedy.

Consequence
of unenforceability

1.4 If at any
time any provision of this Agreement shall be found by any court or
administrative body of competent jurisdiction to be invalid, illegal or
unenforceable:

	
  

 	
  

 
	
 (a)

 	
 such invalidity, illegality or
 unenforceability shall not affect the other provisions of this Agreement
 which shall remain in full force and effect; and

 
	
  

 	
  

 
	
 (b)

 	
 the Parties shall attempt to substitute for
 any invalid, illegal or unenforceable provision a valid, legal or enforceable
 provision which achieves to the greatest extent possible the same effect as
 would have been achieved by the invalid, illegal or unenforceable provision.

 

8

	
  

 	
  

 
	
 2.

 	
 Obligations
 Relating To Settlement Failures

 
	
  

 	
  

 
	
 Acknowledgements

 
	
  

 	
  

 
	
 2.1 Each of Counterparty and Authorized
 Participant acknowledges that:

 
	
  

 	
  

 
	
 (a)

 	
 in respect of entering into Commodity
 Contracts in respect of which notice has been delivered to Counterparty under
 the Facility Agreement, Fund will not be able to make payment of the relevant
 amount unless and until Authorized Participant pays the Creation Order Amount
 in respect of the corresponding Shares in accordance with the Authorized
 Participant Agreement;

 
	
  

 	
  

 
	
 (b)

 	
 in respect of each Redemption of Shares by
 Authorized Participant in relation to which notice has been delivered to
 Counterparty under the Facility Agreement, Fund will not be able to
 make payment of the relevant Redemption Amount unless and until Counterparty
 pays the Termination Amount in respect of the corresponding Commodity
 Contracts in accordance with the Facility Agreement; and

 
	
  

 	
  

 
	
 (c)

 	
 they have accordingly agreed to make
 payments to one another in accordance with this Section 2 if a Settlement
 Failure occurs.

 

Notification
of Commodity Contract Counterparty Account

2.2
Counterparty shall notify Authorized Participant of the details of the
Commodity Contract Counterparty Account from time to time.

Notification
of Compensation Amount Determination Date

2.3 If at any
time a Settlement Failure occurs and has been continuing for a period of at
least three Business Days running from and including the Settlement Failure
Date, then the Determining Party may by notice in writing to the Settlement
Failure Party designate a day not earlier than the day such notice is effective
as a Compensation Amount Determination Date in respect of that Settlement
Failure. The Compensation Amount Determination Date
in respect of that Settlement Failure will then occur on the date so
designated, whether or not that Settlement Failure is then continuing.

Determination
of Compensation Amounts

2.4 If a
Compensation Amount Determination Date has been designated in respect of a
Settlement Failure in accordance with Section 2.3, then the Determining Party
will determine the Compensation Amount
with respect to that Settlement Failure as the amount (denominated in US
Dollars) that would have been its Loss under the Master Agreement if:

	
  

 	
  

 	
  

 
	
 (a)

 	
 in relation to each Commodity Contract to
 which the Settlement Failure relates, Counterparty and Authorized Participant
 had entered into a Transaction the material terms of which are identical to
 the material terms with respect to the entering into and Termination of that
 Commodity Contract (but as if Authorized Participant had been a party thereto
 in place of Fund) (each such Transaction being a Notional
 Transaction);

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 the occurrence of the Settlement Failure
 constituted an Additional Termination Event under the Master Agreement, with
 respect to which:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Counterparty would be the sole Affected
 Party if the Settlement Failure were a Counterparty Settlement Failure, and
 Authorized Participant would be the sole Affected Party if the Settlement
 Failure were an Authorized Participant Settlement Failure; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the only Affected Transactions were the
 Notional Transactions;

 

9

	
  

 	
  

 	
  

 
	
 (c)

 	
 an Early Termination Date had occurred
 under the Master Agreement pursuant to the occurrence of such Additional
 Termination Event on the Compensation Amount Determination Date;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 Counterparty and Authorized Participant had
 elected in the Master Agreement that Loss would be the payment measure
 applicable to the Notional Transactions; and

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 the Termination Currency were US Dollars,

 

and on the
basis that the reference to “any loss or cost incurred as a result of the
Determining Party terminating, liquidating, obtaining or re-establishing any
hedge or related trading position (or any gain resulting from any of them)” in
the definition of “Loss” shall include, without limitation, any loss or cost
incurred, or gain realised, by the Determining Party or any of its Affiliates
as a result of such person terminating, liquidating, obtaining or
re-establishing any Hedging Position with respect to the Commodity Contracts
(if Counterparty is the Determining Party) or the Shares (if Authorized
Participant is the Determining Party) to which the Settlement Failure relates.

Calculations

2.5 The
Determining Party will determine the Compensation Amount with respect to a
Settlement Failure in accordance with Section 2.4 on or as soon as reasonably
practicable following the occurrence of the Compensation Amount Determination
Date for that Settlement Failure, and will provide to the Settlement Failure
Party a statement showing, in reasonable detail, such calculations (including
all relevant quotations, if any, and specifying the Compensation Amount).

Payment
of Compensation Amounts

2.6 If the
Compensation Amount is a positive number, the Settlement Failure Party will pay
it to the Determining Party; if it is a negative number, the Determining Party
will pay the absolute value of the Compensation Amount to the Settlement
Failure Party. Such amount shall be payable by the relevant Party on the day on
which the notice given by the Determining Party in respect of such Compensation
Amount is effective. The Compensation Amount is payable for the loss of bargain
and the loss of protection against future risks, and, except as otherwise
provided in this Agreement, neither Party will be entitled to recover any
additional damages as a consequence of the occurrence of a Settlement Failure

	
  

 	
  

 
	
 3.

 	
 Undertakings

 

3.1 Authorized
Participant undertakes that it shall comply with its obligations and
undertakings under the Authorized Participant Agreement, and further undertakes
that:

	
  

 	
  

 
	
 (a)

 	
 it shall not represent or suggest to any
 potential investors in or distributors of Commodity Contracts that either
 Counterparty or any of its Affiliates has structured Shares, or provided any
 advice or information in respect of Shares (other than the information
 expressly referred to in Section ___ of the Facility Agreement as having been
 provided by Counterparty), or accepted any responsibility in respect of the
 Prospectus; and

 
	
  

 	
  

 
	
 (b)

 	
 it shall not offer or sell Shares to, and
 will not conduct any offers, selling efforts, promotions, marketing,
 advertising or other related activities in respect of Shares in a 

 

10

	
  

 	
  

 
	
  

 	
 manner that could denote, hold out or
 suggest that any Shares may be suitable for investment by, any persons other
 than professional or institutional investors.

 

3.2 Counterparty
undertakes that it shall comply with its obligations and undertakings under the
Facility Agreement.

	
  

 	
  

 
	
 4.

 	
 Representations

 

4.1 Authorized Participant hereby gives,
as at the date of this Agreement, the representations and warranties set out in
Schedule 1.

4.2 Counterparty hereby gives, as at the
date of this Agreement, the representations and warranties set out in Schedule
2.

4.3 Each of Authorized Participant and Counterparty represents to one
another as follows on the date of this Agreement and on each day on which
Shares are issued to Authorized Participant, or Shares held by Authorized
Participant are Redeemed, by Fund and Commodity Contracts are entered into or
Terminated between Counterparty and Fund in connection with such issue or
Redemption (each such issue, Redemption, entering into or Termination being a Relevant Transaction):

	
  

 	
  

 
	
 (a)

 	
 that it is acting for its own account, and
 it has made its own independent decisions to enter into this Agreement and
 (in the case of Authorized Participant) the Authorized Participant Agreement
 and (in the case of Counterparty) the Facility Agreement and as to whether
 each Relevant Transaction is appropriate or proper for it based upon its own
 judgment and upon advice from such advisers as it has deemed necessary;

 
	
  

 	
  

 
	
 (b)

 	
 that it is not relying on any communication
 (written or oral) of the other party as investment advice or as a
 recommendation to enter into any Relevant Transaction; it being understood
 that information and explanations related to the terms and conditions of a
 Relevant Transaction shall not be considered investment advice or a
 recommendation to enter into that Relevant Transaction;

 
	
  

 	
  

 
	
 (c)

 	
 that no communication (written or oral)
 received from the other party shall be deemed to be an assurance or guarantee
 as to the expected results of any Relevant Transaction;

 
	
  

 	
  

 
	
 (d)

 	
 that it is capable of assessing the merits
 of and understanding (on its own behalf or through independent professional
 advice), and understands and accepts, the terms, conditions and risks of each
 Relevant Transaction, and it is also capable of assuming, and assumes, the
 risks of any Relevant Transaction;

 
	
  

 	
  

 
	
 (e)

 	
 that the other party is not acting as a
 fiduciary for or an adviser to it in respect of any Relevant Transaction; and

 
	
  

 	
  

 
	
 (f)

 	
 that it is entering into (i) this
 Agreement, each Relevant Transaction, (in the case of Authorized Participant
 only) the Authorized Participant Agreement and (in the case of Counterparty
 only) the Facility Agreement and (ii) any other documentation relating to
 this Agreement, each Relevant Transaction, (in the case of Authorized
 Participant only) the Authorized Participant Agreement and (in the case of
 Counterparty only) the Facility Agreement as principal (and not as agent or
 in any other capacity, fiduciary or otherwise).

 

11

	
  

 	
  

 
	
 5.

 	
 Acknowledgements of
 Authorized Participant

 

5.1 Authorized
Participant acknowledges and agrees that:

	
  

 	
  

 
	
 (a)

 	
 the Shares have been structured and are
 being marketed or promoted to Authorized Participants by Sponsor and/or the
 Funds alone, and that Counterparty has had and has no involvement in either
 of these processes;

 
	
  

 	
  

 
	
 (b)

 	
 Counterparty has not made, nor does it
 make, any representations to Authorized Participant as to (i) the suitability
 of Shares for Authorized Participant or any other investor; (ii) the
 appropriate accounting treatment or possible tax consequences of an
 investment in any Shares; or (iii) the expected performance of any Shares,
 either in absolute terms or relative to competing investments;

 
	
  

 	
  

 
	
 (c)

 	
 Counterparty has not verified the
 information contained in the Prospectus (other than the information expressly
 referred to in Section___ of the Facility Agreement as having been provided
 by Counterparty) and has not made any representation, warranty or undertaking,
 express or implied, to any person or accepted any responsibility or liability
 as to the accuracy or completeness of any information contained in the
 Prospectus or any other information supplied in connection with Shares or
 their distribution;

 
	
  

 	
  

 
	
 (d)

 	
 Shares represent an interest in the Funds
 only and do not represent an interest in or obligation of Counterparty; 

 
	
  

 	
  

 
	
 (e)

 	
 the interests in the Funds represented by
 the Shares are not guaranteed by Counterparty or any other member of the
 Counterparty Group; and

 
	
  

 	
  

 
	
 (f)

 	
 if it is in material and persistent breach
 of any selling restrictions to which it is subject under the Authorized
 Participant Agreement or this Agreement, (and for the avoidance of doubt for
 the purposes of this Section an Authorized Participant is in persistent
 breach of such selling restrictions where it has breached them at least 3
 (three) times in any period of 12 months), Counterparty shall be entitled to
 designate Authorized Participant an Unacceptable Authorized Participant for
 the purposes of the Facility Agreement.

 
	
  

 	
  

 
	
 6.

 	
 Payments and
 Interest

 

6.1 Where a
day on which a payment would otherwise be due and payable is not a Business
Day, such payment shall be due and payable by the payer on the next following
Business Day.

6.2 All monies
payable under this Agreement shall be paid in US Dollars in cleared and
immediately available funds and without set-off or counterclaim (other than any
set-off expressly contemplated by this Agreement).

6.3 Interest
on any amount outstanding under this Agreement shall accrue from the date on
which such outstanding amount was due until the date on which such outstanding
amount is paid:

	
  

 	
  

 
	
 (a)

 	
 at the Funding Rate from and including the
 date on which such outstanding amount was due to but excluding the date
 falling three Business Days after that date; and

 

12

	
  

 	
  

 
	
 (b)

 	
 thereafter at the Default Rate.

 

6.4 Following
the occurrence of a Delayed Settlement, the Calculation Agent shall calculate
the Delayed Settlement Compensation Amount to be paid between Counterparty and
Authorized Participant under this Section6.4on account of that Delayed
Settlement. The Delayed Settlement Compensation
Amount payable between the parties in relation to a Delayed Settlement
shall be determined as an amount of interest accruing on the balance of the
Creation Order Amount (if an Authorized Participant Delayed Settlement) or
Termination Amount (if a Counterparty Delayed Settlement) that is the subject
of the Delayed Settlement from the Payment Date to which the Delayed Settlement
relates. Such interest shall be determined as:

	
  

 	
  

 	
  

 
	
 (a)

 	
 accruing at the Funding Rate; and:

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 ceasing to accrue:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 in relation to the balance of a Creation
 Order Amount, (A) on the date on which the Commodity Contracts relating to
 such balance are Terminated by Counterparty in accordance with the terms of
 the Facility Agreement, or (B) if such Commodity Contracts are not so
 Terminated, on the date on which such balance is paid by Authorized
 Participant into the Commodity Contract Counterparty Account in accordance
 with the Authorized Participant Agreement; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 in relation to the balance of a Termination
 Amount, on the date on which such balance is paid by Counterparty into the
 relevant Redemption Account (as defined in the Facility Agreement).

 

6.5 If the
Delayed Settlement is a Counterparty Delayed Settlement, the Delayed Settlement
Compensation Amount determined pursuant to Section 6.4 above shall be payable
by Counterparty to Authorized Participant within 2 Business Days of written
demand being made by Authorized Participant, and if the Delayed Settlement is
an Authorized Participant Delayed Settlement, the Delayed Settlement
Compensation Amount so determined shall be payable by Authorized Participant to
Counterparty within 2 Business Days of written demand being made by
Counterparty.

	
  

 	
  

 
	
 7.

 	
 Deduction or Withholding for Tax

 

Gross-up

7.1 All
payments under this Agreement will be made without any deduction or withholding
for or on account of any Tax unless such deduction or withholding is required
by any applicable law, as modified by the practice of any relevant governmental
revenue authority, then in effect. If a Party is so required to deduct or
withhold, then that Party (X) will: 

	
  

 	
  

 	
  

 
	
 (a)

 	
 promptly notify the other Party (Y) of such
requirement; 

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 pay to the relevant authorities the full
 amount required to be deducted or withheld (including the full amount
 required to be deducted or withheld from any additional amount paid by X to Y
 under this Section 7) promptly upon the earlier of determining 

 

13

	
  

 	
  

 	
  

 
	
  

 	
 that such deduction or withholding is
 required or receiving notice that such amount has been assessed against Y;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 promptly forward to Y an official receipt
 (or a certified copy), or other documentation reasonably acceptable to Y,
 evidencing such payment to such authorities; and

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 if such Tax is an Indemnifiable Tax, pay to
 Y, in addition to the payment to which Y is otherwise entitled under this
 Agreement, such additional amount as is necessary to ensure that the net
 amount actually received by Y (free and clear of Indemnifiable Taxes, whether
 assessed against X or Y) will equal the full amount Y would have received had
 no such deduction or withholding been required. However, X will not be
 required to pay any additional amount to Y to the extent that it would not be
 required to be paid but for:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the failure by Y to comply with or perform
 any agreement contained in Section 7.3 (if Y is Authorized Participant) or
 Section 7.4 (if Y is Counterparty) of this Agreement; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the failure of a representation made by Y
 pursuant to Section 7.5 (if Y is Authorized Participant) or Section 7.6 (if Y
 is Counterparty) to be accurate and true unless such failure would not have
 occurred but for (I) any action taken by a taxing authority, or brought in a
 court of competent jurisdiction, on or after the date on which a Transaction
 is entered into (regardless of whether such action is taken or brought with
 respect to a Party) or (II) a Change in Tax Law.

 

Liability

7.2 If:

	
  

 	
  

 
	
 (a)

 	
 X is required by any applicable law, as
 modified by the practice of any relevant governmental revenue authority, to
 make any deduction or withholding in respect of which X would not be required
 to pay an additional amount to Y under Section 7.1(d); and

 
	
  

 	
  

 
	
 (b)

 	
 X does not so deduct or withhold; and

 
	
  

 	
  

 
	
 (c)

 	
 a liability resulting from such Tax is
 assessed directly against X,

 

then, except
to the extent Y has satisfied or then satisfies the liability resulting from
such Tax, Y will promptly pay to X the amount of such liability (including any
related liability for interest, but including any related liability for
penalties only if Y has failed to comply with or perform any agreement
contained in Section 7.3 (if Y is Authorized Participant) or Section 7.4 (if Y
is Counterparty) of this Agreement.

Tax
Covenants of Authorized Participant

7.3 Authorized
Participant agrees:

	
  

 	
  

 
	
 (a)

 	
 [if Authorized Participant is not a
 US person: to complete, accurately and in a manner reasonably
 satisfactory to Counterparty, and to execute and deliver to Counterparty, a
 United States Internal Revenue Service Form W-8BEN, or any 

 

14

	
  

 	
  

 
	
  

 	
 successor form, representing that it is a
 non-United States person (i) prior to Authorized Participant first lodging a
 Creation Order for Shares and thereafter during each third succeeding
 calendar year, (ii) promptly upon reasonable demand by Counterparty, and
 (iii) promptly upon learning that any such form previously provided has
 become obsolete or incorrect;]

 
	
  

 	
  

 
	
  

 	
 [or, if
 Authorized Participant is a U.S. person: 

 
	
  

 	
  

 
	
  

 	
 to complete, accurately and in a manner
 reasonably satisfactory to Counterparty, and to execute and deliver to
 Counterparty, a United States Internal Revenue Service Form W-9 or successor
 form (i) before the first Payment Date under this Agreement, (ii) promptly
 upon reasonable demand by Counterparty, and (iii) promptly upon learning that
 any such Form previously provided has become obsolete or incorrect;]

 
	
  

 	
  

 
	
  

 	
 [or, if
 Authorized Participant is a multi-branch party:

 
	
  

 	
  

 
	
  

 	
 (i) with respect to payments made to an
 address within the United States or made by a transfer of funds to an account
 within the United States, to complete, accurately and in a manner reasonably
 satisfactory to Counterparty, and to execute and deliver to Counterparty, a
 United States Internal Revenue Service Form W-8ECI or successor form and (ii)
 with respect to payments made to an address outside the United States or made
 by a transfer of funds to an account outside the United States, to complete,
 accurately and in a manner reasonably satisfactory to Counterparty, and to
 execute and deliver to Counterparty, a United States Internal Revenue Service
 Form W-8BEN or successor form (with Part II completed and a Taxpayer
 Identification Number provided), in each case, (A) before the first date on
 which an amount is payable by Authorized Participant under this Agreement,
 (B) promptly upon reasonable demand by Counterparty, and (C) promptly upon
 learning that any such Form previously provided has (or is about to) become
 obsolete or incorrect;] and

 
	
  

 	
  

 
	
 (b)

 	
 to complete (accurately and in a manner
 reasonably satisfactory to Counterparty), execute, arrange for any required
 certification of, and deliver to Counterparty or such government or taxing
 authority as Counterparty directs, any form or document or other procedural
 formalities that may reasonably be required or reasonably requested in order
 to enable Counterparty to make, or obtain authorisation to make, a payment
 under this Agreement without any deduction or withholding for or on account of
 any Tax or with such deduction or withholding at a reduced rate, as soon as
 reasonably practicable upon the earlier of: (i) reasonable demand by
 Counterparty, and (ii) learning that the form or document is required. 

 

Tax
Covenants of Counterparty

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

15

Tax Representations of Authorized Participant 

7.5 Authorized Participant makes the
following representations to Counterparty at all times during the term of this
Agreement:

[if
Authorized Participant is not a US person:

	
  

 	
  

 
	
 (a)

 	
 it is a “non-U.S. branch of a foreign
 person” (as that term used in section 1.1441-4(a)(3)(ii) of U.S. Treasury
 Regulations) and a “foreign person” (as that term is used in section 1.6041
 4(a)(4) of U.S. Treasury Regulations) for U.S. federal income tax purposes;

 
	
  

 	
  

 
	
 (b)

 	
 it is fully eligible for the benefits of
 the “Business Profits” provision, the “Interest” provision or the “Other
 Income” provision of the Treaty with respect to Taxes on Income and on
 Capital Gains between the United States and Authorized Participant’s
 jurisdiction of tax residence (as amended or substituted from time to time)
 with respect to any payment described in such provisions and received or to
 be received by it in connection with this Agreement; and

 
	
  

 	
  

 
	
 (c)

 	
 no payment received or to be received by it
 in connection with this Agreement is attributable to a trade or business
 carried on by it through a permanent establishment in the United States.]

 

[or, if
Authorized Participant is a US person: 

it is a “U.S.
Person” (as that term is used in section 1.1441-4(a)(3)(ii) of U.S. Treasury
Regulations) for U.S. federal income tax purposes.]

[or, if
Authorized Participant is a multi-branch party: 

	
  

 	
  

 	
  

 
	
 (d)

 	
 with respect to payments made to an address
 within the United States or made by a transfer of funds to an account within
 the United States, such payment will be effectively connected with the
 conduct by Authorized Participant of a trade or business in the United
 States; and

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 with respect to payments made to an address
 outside the United States or made by a transfer of funds to an account
 outside the United States:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Authorized Participant is a “non-U.S.
 branch of a foreign person” (as that term used in section 1.1441-4(a)(3)(ii)
 of U.S. Treasury Regulations) and a “foreign person” (as that term is used in
 section 1.6041-4(a)(4) of U.S. Treasury Regulations) for U.S. federal income
 tax purposes;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 Authorized Participant is fully eligible
 for the benefits of the “Business Profits” provision, the “Interest”
 provision or the “Other Income” provision of the Treaty with respect to Taxes
 on Income and on Capital Gains between the United States and Authorized
 Participant’s jurisdiction of tax residence (as amended or substituted from
 time to time) with respect to any payment described in such provisions and
 received or to be received by it in connection with this Agreement; and

 

16

	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 no payment received or to be received by
 Authorized Participant in connection with this Agreement is attributable to a
 trade or business carried on by it through a permanent establishment in the
 United States.]

 

Tax
Representations of Counterparty

7.6
Counterparty makes the following representation to Authorized Participant at
all times during the term of this Agreement:

For US tax
purposes, Counterparty shall be deemed to be acting under this Agreement as
nominee for _______.

	
  

 	
  

 
	
 8.

 	
 Set-Off

 

8.1 If a
Compensation Amount Determination Date has been designated in respect of a
Settlement Failure in accordance with Section 2.3, then any amounts (Settlement Failure Amounts) payable to one
Party (the Payee) by the other Party (the Payer) under this Agreement pursuant to the
occurrence of that Settlement Failure will, at the option of the Determining
Party in relation to the relevant Settlement Failure (and without prior notice
to the Settlement Failure Party) be reduced by set-off against any other
amounts (Other Amounts) payable by the Payee to
the Payer (whether or not arising under this Agreement or the Master Agreement,
matured or contingent and irrespective of the currency, place of payment or
place of booking of the obligation). To the extent that any Other Amounts are
so set off, those Other Amounts will be discharged promptly and in all
respects. The Determining Party will give notice to the Settlement Failure
Party of any set-off effected under this Section 8.1.

8.2 For the
purpose of this Section 8, either the Settlement Failure Amounts or the Other
Amounts (or the relevant portion of such amounts) may be converted by the
Determining Party into the currency in which the other is denominated at the
rate of exchange at which such Party would be able, in good faith and using
commercially reasonable procedures, to purchase the relevant amount of such
currency.

8.3 If, for
the purposes of Section 8.1, an obligation is unascertained, the Determining
Party may in good faith estimate that obligation and set off in respect of the
estimate, subject to the relevant Party accounting to the other when the
obligation is ascertained.

8.4 Nothing in
this Section 8 will be effective to create a charge or other security interest.
This Section 8 will be without prejudice and in addition to any right of
set-off, offset, combination of accounts, lien, right of retention or
withholding or similar right or requirement to which any Party is at any time
otherwise entitled or subject (whether by operation of law, contract or
otherwise).

	
  

 	
  

 
	
 9.

 	
 Notices

 

9.1 A notice
given between Authorized Participant and Counterparty under or in connection
with this Agreement (a Notice):

	
  

 	
  

 
	
 (a)

 	
 shall be in writing, in English and signed
 by an Authorized Individual; and

 
	
  

 	
  

 
	
 (b)

 	
 delivered personally or sent by first class
 post pre-paid recorded delivery (and air mail if abroad) or by fax to the
 Party due to receive the Notice to the address set out in 

 

17

	
  

 	
  

 
	
  

 	
 Section 9.3 or to another address, person
 or fax number specified by that Party by not less than seven days’ written
 notice to the other Party received before the Notice was despatched.

 

9.2 Unless
there is evidence that it was received earlier, a Notice is deemed given if:

	
  

 	
  

 
	
 (a)

 	
 if delivered by hand, at the time of actual
 delivery; 

 
	
  

 	
  

 
	
 (b)

 	
 if sent by prepaid recorded delivery or
 registered post (or registered airmail in the case of an address outside the
 United States), on the date it is delivered or its delivery is attempted; or 

 
	
  

 	
  

 
	
 (c)

 	
 if sent by fax, upon sending, subject to
 confirmation of uninterrupted and error-free transmission by a transmission
 report.

 

9.3 The
addresses referred to in Section 9.1 are:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Name of Party

 	
  

 	
 Address

 	
  

 	
 Facsimile No.

 	
  

 	
 Marked for the attention of

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Counterparty

 	
  

 	
  

 	
  

 	
 To be notified to Authorized Participant from time to time

 	
  

 	
 Chief Financial Officer (with a copy to the General Counsel)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Authorized Participant

 	
  

 	
 [address of
 Authorized Participant]

 	
  

 	
 [fax of
 Authorized Participant]

 	
  

 	
 [name]

 

 

	
  

 	
  

 
	
 10.

 	
 Amendment

 

10.1 This
Agreement may only be amended by a written instrument signed by the Parties or
their duly Authorized representatives, and provisions of this Agreement may
only be waived by a written instrument signed by the Party giving the waiver or
its duly Authorized representative.

	
  

 	
  

 
	
 11.

 	
 Termination

 

11.1 This
Agreement shall terminate upon termination of the Facility Agreement (but any
such termination shall not affect the liability of parties for obligations
incurred prior to such termination).

	
  

 	
  

 
	
 12.

 	
 Assignment

 

12.1 Neither
this Agreement nor any interest or obligation in or under this Agreement may be
transferred by Authorized Participant to another entity without the prior
written consent of Counterparty (other than pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all of Authorized Participant’s assets to another entity in the same
jurisdiction as Authorized Participant) and any purported transfer without such
consent will be void. If a transfer is permitted pursuant to this Section 12.1,
Authorized 

18

Participant
shall pay all stamp and documentary duties and taxes arising as a result of or
in connection with any such transfer.

12.2 Neither
this Agreement nor any interest or obligation in or under this Agreement may be
transferred by Counterparty to another entity without the prior written consent
of Authorized Participant (and any purported transfer without such consent will
be void), unless such transfer is:

	
  

 	
  

 
	
 (a)

 	
 pursuant to a consolidation or amalgamation
 with, or merger with or into, or transfer of all or substantially all of
 Counterparty’s assets to another entity in the same jurisdiction as
 Counterparty; or

 
	
  

 	
  

 
	
 (b)

 	
 to a transferee to whom Counterparty has
 transferred its rights and obligations under the Facility Agreement pursuant
 to clause 8.1 thereof,

 

in which case
no such consent shall be required. If a transfer is permitted pursuant to this
Section 12.2, Counterparty shall pay all stamp and documentary duties and taxes
arising as a result of or in connection with any such transfer.

	
  

 	
  

 
	
 13.

 	
 Survival

 

13.1 The
provisions of this Agreement shall continue in full force and effect
notwithstanding the completion of the arrangements set out herein and
regardless of any investigation by any Party.

	
  

 	
  

 
	
 14.

 	
 Miscellaneous

 

14.1 Nothing
in this Agreement shall make a Party a partner or an agent of the other Party.

	
  

 	
  

 
	
 15.

 	
 Governing law and Jurisdiction

 

15.1 This
Agreement shall be governed by and construed in accordance with New York law.

15.2 With respect
to any suit, action or proceedings relating to this Agreement (Proceedings), each Party irrevocably: (i) submits to the
non-exclusive jurisdiction of New York
courts; and (ii) waives any objection which it may have at any time to
the laying of venue of any Proceedings brought in any such court, waives any
claim that such Proceedings have been brought in an inconvenient forum and
further waives the right to object, with respect to such Proceedings, that such
court does not have any jurisdiction over such Party.

15.3 Nothing
in this Agreement precludes either Party from bringing Proceedings in any other
jurisdiction nor will the bringing of Proceedings in any one or more
jurisdictions preclude the bringing of Proceedings in any other jurisdiction.

	
  

 	
  

 
	
 16.

 	
 Counterparts

 

This Agreement
may be executed in any number of counterparts and by different Parties hereto
in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which when so executed shall constitute one and the same
binding agreement between the Parties.

19

SCHEDULE 1

REPRESENTATIONS AND WARRANTIES BY AUTHORIZED PARTICIPANT

Authorized
Participant represents and warrants:

	
  

 	
  

 	
  

 
	
 (a)

 	
 that at any time when it submits a request
 for the Redemption of any Shares, it will be the only person who is a
 beneficial owner of such Shares;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 that it is a company duly incorporated and
 validly existing under the laws of _________________;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 that it has the requisite power and
 authority to enter into and perform this Agreement and the Authorized
 Participant Agreement (including without limitation the Authorized
 Participant Agreement) and all such actions have been duly Authorized by all
 necessary procedures on its part;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 that its obligations under this Agreement constitute its
 legal, valid and binding obligations, enforceable in accordance with their
 respective terms (subject to applicable bankruptcy, reorganisation,
 insolvency, moratorium or similar laws affecting creditors’ rights generally
 and subject, as to enforceability, to equitable principles of general
 application (regardless of whether enforcement is sought in a proceeding in
 equity or at law));

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 that the execution and delivery by it of
 this Agreement and the Authorized Participant Agreement and the performance
 by it of this Agreement and the Authorized Participant Agreement will not:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 result in a breach of any provision of its
 memorandum and articles of association or other constituent documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 result in a breach of, or constitute a
 default under, any instrument to which it is a party or by which it is bound;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 result in a breach of any order, judgment
 or regulation by which it is bound; and

 
	
  

 	
  

 	
  

 
	
 (f)

 	
 that it has not done or omitted to do
 anything which constitutes a breach of this Agreement.

 

20

SCHEDULE 2

REPRESENTATIONS AND WARRANTIES BY COUNTERPARTY

Counterparty represents
and warrants:

	
  

 	
  

 	
  

 
	
 (a)

 	
 that it is a corporation domiciled in
 _________;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 that it has the requisite power and
 authority to enter into and perform this Agreement and the Facility Agreement
 and all such actions have been duly Authorized by all necessary procedures on
 its part;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 that its obligations under this Agreement constitute its
 legal, valid and binding obligations, enforceable in accordance with their
 respective terms (subject to applicable bankruptcy, reorganisation,
 insolvency, moratorium or similar laws affecting creditors’ rights generally
 and subject, as to enforceability, to equitable principles of general application
 (regardless of whether enforcement is sought in a proceeding in equity or at
 law));

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 that the execution, delivery and
 performance by it of this Agreement and the Facility Agreement will not:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 result in a breach of any provision of its
 memorandum and articles of association or other constituent documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 result in a breach of, or constitute a
 default under, any instrument to which it is a party or by which it is bound;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 result in a breach of any order, judgment
 or regulation by which it is bound;

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 that it has not done or omitted to do
 anything which constitutes a breach of this Agreement; and

 
	
  

 	
  

 	
  

 
	
 (f)

 	
 that:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the information which Counterparty has
 expressly provided to Fund in writing for inclusion in the Prospectus or in a
 supplementary prospectus; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any subsequent information which
 Counterparty may provide to Fund and expressly permit Fund in writing to
 include in any supplementary prospectus or listing particulars or otherwise
 to disclose in respect of its listing or offering of Shares,

 
	
  

 	
  

 	
  

 
	
  

 	
 and which is included in the Prospectus or
 in a supplementary prospectus or listing particulars or any other formal
 disclosure document as disclosure on Counterparty is true and accurate in all
 material respects as at the date and time given.

 

21

SIGNED by the Parties:

	
  

 	
  

 
	
 Signed by:

 	
 )

 
	
  

 	
 )

 
	

 

 	
 )

 
	
  [Authorized Participant]

 	
 )

 
	
  

 	
 )

 
	
  

 	
  

 
	
 Signed by:

 	
 )

 
	
  

 	
 )

 
	

 

 	
 )

 
	
  [Counterparty]

 	
 )

 
	
  

 	
 )

 

22Exhibit 10.9

FORM OF SPONSOR AGREEMENT

          THIS
SPONSOR AGREEMENT (the “Agreement”)
is dated as of ________________ between ETF Securities USA LLC, a Delaware
limited liability company (“Sponsor”),
and ETFS Collateralized Commodities Trust, a statutory trust organized under
the laws of Delaware (the “Trust”),
both for itself and on behalf of each of its series set forth on Schedule A
hereto (each, a “Fund” and,
collectively, the “Funds”). 

	
 

	
 

	
 

	
 

	
1.

	
The Trust and the Funds.
As of the date of this Agreement, neither the Trust nor any Fund is (i) an
investment company under the Investment Company Act of 1940 (the “1940 Act”) and (ii) required to register
as such thereunder. As of the date of this Agreement, the Sponsor is not
registered as an investment adviser under the Investment Advisers Act of 1940
and is not required to register as such thereunder. 

	
 

	
 

	
 

	
 

	
2.

	
Appointment.
Pursuant to the terms of the amended and restated trust agreement of the
Trust (the “Trust Agreement”),
the Trust appointed the Sponsor to serve as the sponsor, with full managerial
control of the Trust, and the Sponsor accepted such appointment. The Sponsor
hereby agrees to render managerial services to the Trust and the Funds on the
terms and conditions set forth in this Agreement and the Trust Agreement. 

	
 

	
 

	
 

	
 

	
3.

	
Investment Direction.
Sponsor will manage the Funds in accordance with Sponsor’s best judgment and
consistent with the Funds’ investment objectives and investment strategies
outlined in the Funds’ then-current prospectus or prospectuses included as a
part of a registration statement filed with the US Securities and Exchange
Commission. 

	
 

	
 

	
 

	
 

	
4.

	
Reporting; Record
Keeping. Sponsor shall advise the Trust, at such times as
the Trust may specify, of any Fund investments made and the reasons for
making a particular investment. Sponsor will be available at reasonable times
to discuss the management of the Funds with the Trust or its designee. Any
written reports supplied by Sponsor to the Trust discussing Fund management
are intended solely for the benefit of the Trust and the Funds, and the Trust
agrees that it will not disseminate such reports to any other party (other
than the Funds’ service providers) without the prior consent of Sponsor,
except as may be required by applicable law. Sponsor shall make or cause to
be made, and shall maintain or cause to be maintained, all records as are
required to be made or maintained by it in its capacity as sponsor of the
Trust. 

	
 

	
 

	
 

	
 

	
5.

	
Other Accounts.
The Trust understands and acknowledges that Sponsor may perform sponsor and
managerial services for various persons other than the Funds. The Funds
acknowledge that Sponsor may give advice and take action concerning such
other persons that may be the same as, similar to or different 

	
 

	
 

	
 

	
 

	
 

	
from the advice given,
or the timing and nature of action taken, concerning the Funds. Except to the
extent necessary to perform Sponsor’s obligations under this Agreement,
nothing herein shall be deemed to limit or restrict the right of Sponsor, or
any affiliate of Sponsor or any employee of Sponsor to engage in any other
business or to devote time and attention to the management or other aspects
of any other business, whether of a similar or dissimilar nature, or to
render services of any kind to any other corporation, firm, individual or
association.

	
 

	
 

	
 

	
 

	
6.

	
Fees and Expenses.
The Trust, on behalf of each Fund, shall pay Sponsor fees for its services as
Sponsor hereunder, from time to time, all as set forth on Schedule A hereto
and in the registration statements or reports of the Trust publicly available
on the EDGAR system of the Securities and Exchange Commission (“EDGAR filings”). The Sponsor and the
Trust, on behalf of each Fund, agree that material changes to the fee payment
structure shall not become effective prior to 30 days after such changes are
described in one or more EDGAR filings. 

	
 

	
 

	
 

	
 

	
7.

	
Representations;
Indemnification. The Trust, on behalf of itself and each
Fund, represents and warrants that: (a) it has been duly organized and is
validly existing under the law of the state of Delaware, (b) it is duly
authorized to execute, deliver and perform this Agreement and has taken all
action necessary to authorize its execution, delivery and performance,
including the obtaining of any necessary governmental consents, (c) the
execution, delivery and performance of this Agreement does not and will not
conflict with or violate any provision of law, rule, regulation, governing
document of the Trust, contract, deed of trust, or other instrument to which the
Trust is a party or to which any of the Trust or any Fund’s property is
subject, (d) this Agreement is a valid and binding obligation enforceable
against the Trust and each Fund, as applicable, in accordance with its terms
(subject to applicable insolvency or similar laws affecting creditors’ rights
generally and subject, as to enforceability, to equitable principles of
general application) and (e) each Fund will be comprised of assets that are
owned by such Fund as principal, and will not be subject to either (i) the
Employee Retirement Income Security Act of 1974, (ii) the 1940 Act, (iii) the
Commodity Exchange Act, or (iv) any lien, security interest or other similar
encumbrance. The Trust shall indemnify and hold the Sponsor harmless to the
fullest extent permitted by law and in accordance with the Trust Agreement
from any liabilities, damages or expenses, including attorney’s fees,
incurred by Sponsor for any actions taken by Sponsor acting in reasonable
reliance upon such representations. 

	
 

	
 

	
 

	
 

	
8.

	
Liability.
Sponsor will be liable for losses to any Fund that are the direct result of
Sponsor’s bad faith, gross negligence, willful or reckless misconduct or
breach of the express terms of this Agreement. Except as set forth in the
foregoing sentence, neither Sponsor nor its officers, employees or agents
shall be liable hereunder for any act or omission or for any error of
judgment in managing the Funds. Sponsor shall not be responsible for any
special, indirect or consequential damages, or any loss incurred by reason of
any act or omission, by the Funds or any broker, dealer, counterparty or
custodian used hereunder or any authorized representative of the foregoing.
Notwithstanding the foregoing, nothing herein

2

	
 

	
 

	
 

	
 

	
 

	
shall in any way
constitute a waiver or limitation of any rights that the Trust or the Funds
may have under the federal securities laws or other applicable law.

	
 

	
 

	
 

	
 

	
9.

	
Instructions. Sponsor
shall comply with, and be entitled to act on, any instructions reasonably
believed to be from an authorized representative of the Trust. Sponsor and
its employees and agents shall be fully protected from all liability in
acting upon such instructions, without being required to determine the
authenticity of the authorization or authority of the persons providing such
instructions. 

	
 

	
 

	
 

	
 

	
10.

	
Tax Filings.
Except as described in EDGAR filings, Sponsor will not be responsible for
making any tax credit or similar claim or any legal filing on the Trust’s or
any Fund’s behalf. 

	
 

	
 

	
 

	
 

	
11.

	
Governing Law/Disputes. This Agreement shall be governed by and construed in accordance with the law
of the State of New York (excluding the law thereof which required the
application of or reference to the law of any other jurisdiction). Any action
or proceeding arising directly, indirectly, or otherwise in connection with,
out of, related to, or from this Agreement, any breach hereof, or any
transaction covered hereby, shall be resolved by arbitration, within the City
of New York and State of New York. In any such action or proceeding, the
prevailing party shall be entitled to recovery of all reasonable attorneys’
fees incurred with respect thereto. Each party agrees that in the event that
any dispute arising from or relating to this Agreement becomes subject to any
judicial proceeding, such party waives any right it may otherwise have to (a)
seek punitive damages, or (b) request a jury trial. 

	
 

	
 

	
 

	
 

	
12.

	
Termination.
This Agreement may be terminated at any time by the Trust or the Sponsor upon
30 days’ prior written notice to the other party. Any obligation or liability
of either party resulting from actions or inactions occurring prior to
termination shall not be affected by termination of this Agreement. 

	
 

	
 

	
 

	
 

	
13.

	
Assignment.
Neither the Trust nor the Sponsor shall assign this Agreement without the
written consent of the other party. 

	
 

	
 

	
 

	
 

	
14.

	
License to Use Marks.
For so long as the Sponsor is the sponsor of the Trust, the Sponsor grants
the Trust a no-fee license to use all service marks or trademarks which the
Sponsor or its affiliates have or may register for use in connection with
financial services. 

	
 

	
 

	
 

	
 

	
15.

	
Notices.
All notices and other communications under this Agreement shall be in writing
and shall be addressed to the parties at their respective addresses. 

	
 

	
 

	
 

	
 

	
 

	
 

	
If to the Trust:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ETFS Collateralized
Commodities Trust

	
 

	
 

	
 

	
c/o ETF Securities USA
LLC

	
 

	
 

	
 

	
48 Wall Street

	
 

	
 

	
 

	
New York, New York
10005

	
 

	
 

	
 

	
Attn:     Sponsor

	
 

	
 

	
 

	
 

	
 

	
 

	
If to the Sponsor:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ETF Securities USA LLC

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Ordnance House, 31 Pier
Road

	
 

	
 

	
 

	
St. Helier, Jersey
JE48PW

	
 

	
 

	
 

	
Channel Islands

	
 

	
 

	
 

	
Attn:     President

3

	
 

	
 

	
 

	
 

	
16.

	
Severability.
In the event any provision of this Agreement is adjudicated to be void,
illegal, invalid or unenforceable, the remaining terms and provisions of this
Agreement shall not be affected thereby, and each of such remaining terms and
provisions shall be valid and enforceable to the fullest extent permitted by
law. 

	
 

	
 

	
 

	
 

	
17.

	
Integration; Amendment.
This Agreement together with the Trust Agreement contain the entire agreement
between the parties with respect to the transactions contemplated hereby and
supersede all previous oral or written negotiations, commitments and
understandings related thereto. This Agreement may not be amended or modified
in any respect, nor may any provision be waived, without the written
agreement of the Sponsor and the Trust. No waiver by the Sponsor or the
Trust of any obligation of the other hereunder shall be considered a waiver of
any other obligation of such party. 

	
 

	
 

	
 

	
 

	
18.

	
Further Assurances.
Each of the Sponsor and the Trust shall execute and deliver such other
documents or agreements as may be necessary or desirable for the
implementation of this Agreement and the consummation of the transactions
contemplated hereby. 

	
 

	
 

	
 

	
 

	
19.

	
Headings.
The headings of paragraphs herein are included solely for convenience and
shall have no effect on the meaning of this Agreement. 

	
 

	
 

	
 

	
 

	
20.

	
Counterparts.
This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original and all of which taken together shall be
deemed to be one and the same instrument.

	
 

	
 

	
 

	
 

	
21.

	
Limitations on
Liability.

	
 

	
 

	
 

	
 

	
 

	
(a) The debts,
liabilities, obligations, expenses, costs, charges, indemnities and reserves
incurred, contracted for, attributable to or otherwise existing with respect
to a particular Series shall be enforceable against the assets of such Series
only, and not against the assets of the Trust generally or of any other
Series and, unless otherwise provided by the Sponsor, none of the debts,
liabilities, obligations, expenses, costs, charges, indemnities and reserves
incurred, contracted for, attributable to or otherwise existing with respect
to the Trust generally or any 

4

	
 

	
 

	
 

	
 

	
 

	
other Series shall be
enforceable against the assets of such Series. Any general liabilities,
expenses, costs, charges, indemnities or reserves of the Trust which are not
readily identifiable as being held with respect to any particular Series
shall be allocated and charged by the Sponsor to and among any one or more of
the Series in such manner and on such basis as the Sponsor in its sole
discretion deems fair and equitable. Pursuant to the Delaware Statutory Trust
Act and the Amended and Restated Trust Agreement of the Trust, any party
extending credit to, contracting with or having any claim against any Series
of the Trust may look only to the assets of such Series to satisfy or enforce
any debt with respect to that Series.

	
 

	
 

	
 

	
 

	
 

	
(b) This Agreement has
been entered into by the Trust and was executed and delivered by an officer
of its Sponsor, on behalf of the Trust, which officer was acting solely in
his capacity as an officer of the Sponsor and not in his individual capacity
and which Sponsor was acting solely in its capacity as sponsor of the Trust
and not in its individual capacity. The obligations of this Agreement are not
binding on such officer, the Sponsor or any shareholder of the series of the
Trust individually. The obligations of this Agreement are binding only upon
the assets and property of the Trust or belonging or attributable to a Series
thereof.

[Signature Page Follows]

5

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

	
 

	
 

	
 

	
ETFS COLLATERALIZED COMMODITIES TRUST

	
 

	
 

	
 

	

	
 

	
[______________]

	
 

	
 

	
 

	
ETF SECURITIES USA LLC 

	
 

	
 

	
 

	

	
 

	
[______________]

	
 

	
Chief Executive Officer

SCHEDULE A

SPONSOR’S FEES

          Each
Fund pays to the Sponsor a Sponsor’s Fee, monthly in arrears, in an amount
equal to the per annum rates set out below.

	
 

	
 

	
 

	
 

	
Fund Name

	
 

	
 

	
Sponsor’s Fee

	

	
 

	
 

	

	
ETFS ex-U.S. Oil

	
 

	
[ ] bps

	
ETFS Natural Gas

	
 

	
[ ] bps

	
ETFS Copper

	
 

	
[ ] bps

	
ETFS Wheat

	
 

	
[ ] bps

	
ETFS Composite Agriculture

	
 

	
[ ] bps

	
ETFS Composite Industrial Metals

	
 

	
[ ] bps

	
ETFS Composite Energy

	
 

	
[ ] bps

	
ETFS All Commodities

	
 

	
[ ] bps

	
ETFS Short ex-U.S. Oil

	
 

	
[ ] bps

	
ETFS Short Natural Gas

	
 

	
[ ] bps

	
ETFS Short Copper

	
 

	
[ ] bps

	
ETFS Short Wheat

	
 

	
[ ] bps

	
ETFS Short Gold

	
 

	
[ ] bps

	
ETFS Leveraged ex-U.S. Oil

	
 

	
[ ] bps

	
ETFS Leveraged Natural Gas

	
 

	
[ ] bps

	
ETFS Leveraged Copper

	
 

	
[ ] bps

	
ETFS Leveraged Wheat

	
 

	
[ ] bps

	
ETFS Leveraged Gold

	
 

	
[ ] bps

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