Document:

EX-10.11:

 

Exhibit 10.11

INTERCONTINENTALEXCHANGE, INC.

2005 EQUITY INCENTIVE PLAN

     1. Purpose. The purpose of the Plan is to provide an incentive to attract, retain and
reward individuals performing services for the Company and to motivate such individuals to
contribute to the growth and profitability of the Company.

     The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Stock
Appreciation Rights, Restricted Stock, and Restricted Stock Units.

2. Administration.

     (a) Powers of the Administrator. The Plan shall be administered by the Administrator.
Subject to Applicable Laws and the provisions of the Plan, the Administrator shall have all powers
and discretion necessary or appropriate to administer the Plan, including, but not limited to, the
power to (i) select the persons to be granted Awards under this Plan, (ii) to determine the number
of shares subject to each Award, (iii) to determine the exercise price or purchase price of each
Award, (iv) to set the terms and conditions of each Award, (v) to determine whether Awards will be
settled in Shares, cash or in any combination thereof, (v) to adopt such rules and procedures as it
deems necessary or appropriate for the administration, interpretation and application of the Plan,
and (vi) to determine all other matters relating to administration and operation of the Plan. The
terms and conditions of each Option includes whether an Option should be an ISO or an NSO. All
questions of interpretation, implementation, and application of the Plan shall be determined by the
Administrator in its sole discretion. Such determinations shall be final and binding on all
persons, and shall be given the maximum deference permitted by law. All determinations of the
Administrator shall be made by a majority of its members either present in person or participating
by conference telephone at a meeting or by written consent. No member of the Board or the
Committee that acts as Administrator shall be liable for any act or omission on such member’s own
part, including but not limited to, the exercise of any power or discretion given to such member
under the Plan, except for those acts or omissions resulting from such member’s own gross
negligence or willful misconduct.

     (b) Section 409A of the Code. The Administrator may only grant those Awards that
either comply with the applicable requirements of Section 409A of the Code, or do not result in the
deferral of compensation within the meaning of Section 409A of the Code.

3. Shares Subject to the Plan.

     (a) Number of Shares. The maximum number of Shares that may be issued under the Plan
is 8,500,000, subject to limited re-issuance as indicated below. This limit is subject to
adjustment as provided in Section 3(c). The Shares may be authorized, but unissued Shares, or
reacquired Shares. Shares shall not be deemed to have been issued pursuant to the Plan with
respect to any portion of an Award that is settled in cash. Upon payment in Shares pursuant to

 

 

the exercise or settlement of an Award, the number of Shares available for issuance under the
Plan shall be reduced only by the number of Shares actually issued in such payment.

     (b) Lapsed Awards. If an Option or SAR expires, is surrendered, or becomes
unexercisable without having been exercised in full, or if any unissued Shares are retained by the
Corporation upon exercise of an Option or SAR in order to satisfy the exercise price or any
withholding taxes due with respect to such exercise, the unissued or retained Shares shall become
available for future grant under the Plan (unless the Plan has terminated). If unvested Shares are
forfeited (repurchased by the Corporation at their original purchase price), such Shares shall also
become available for future grant under the Plan, but the total number of such forfeited Shares
that become available may not exceed twice the maximum number set forth above (subject to
adjustment as provided in Section 3(c)). Other Shares that actually have been issued under the
Plan pursuant to an Award shall not be returned to the Plan and shall not become available for
future grant under the Plan. Upon the exercise of any Award granted in tandem with any other
Award, such related Award shall be cancelled to the extent of the number of Shares as to which the
Award is exercised and, notwithstanding the foregoing, such number of Shares shall no longer be
available for Awards under the Plan.

     (c) Adjustments in Awards and Authorized Shares. In the event of any merger,
consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split,
separation, liquidation or other change in the corporate structure or capitalization affecting the
Shares, appropriate adjustment shall be made by the Administrator in the kind, exercise price (or
purchase price, as applicable), and number of Shares (including, but not limited to, the maximum
number of Shares reserved under the Plan) that are or may become subject to Awards granted or to be
granted under the Plan; provided, however, any adjustment to an outstanding Option or SAR shall
comply with Section 424 of the Code. The determination by the Administrator as to the terms of any
of the foregoing adjustments shall be conclusive and binding on all persons.

     (d) Limitations.

          (i) Subject to adjustment as provided in Section 3(c), not more than an aggregate of 8,500,000
Shares may be issued under ISOs.

          (ii) Effective on or after the Listing Date, subject to adjustment as provided in Section 3(c)
above, the maximum number of Shares with respect to which Options or SARs, or a combination
thereof, may be granted during any calendar year to any individual Grantee shall be 1,000,000, and
the maximum number of Shares with respect to which Restricted Stock or RSUs, or a combination
thereof, may be granted during any calendar year to any individual Grantee shall be 500,000. For
persons hired on or after adoption of the Plan by the Board, these limits can be increased to
2,000,000 Shares with respect to which Options or SARs may be granted, and 1,000,000 Shares with
respect to Restricted Stock or RSUs may be granted during any calendar year. These limitations
shall be applied and construed consistently with Section 162(m) of the Code.

     4. Eligibility. The Administrator may grant an Award to any natural person (or any
other person if the securities law requirements are met) who is an employee, consultant, or
director of the Company, as selected in the sole discretion of the Administrator.

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5. Stock Options.

     (a) Grant of Options. Subject to the terms and conditions of the Plan, the
Administrator, at any time and from time to time, may grant Options. Each Option granted under the
Plan shall be authorized by action of the Administrator and shall be evidenced by an Award
Agreement.

     (b) ISOs or NSOs. Options granted under the Plan shall be designated by the
Administrator as either ISOs or NSOs. The Company does not represent or warrant that an Option
intended to be an ISO qualifies as such. To the extent that the aggregate Fair Market Value
(determined as of the date the Option is granted) of the Shares with respect to which ISOs are
exercisable for the first time by any individual during any calendar year (under all plans of the
Company) exceeds one-hundred thousand dollars ($100,000), the Option shall be treated as an NSO.
If an ISO is exercised more than three (3) months after the date on which Grantee ceases to be an
employee (other than by reason of death or Disability), the Option will be treated as an NSO, and
not an ISO, as required by Section 422 of the Code.

     (c) Option Exercise Price. The exercise price for the Shares to be issued pursuant to
the exercise of an Option shall be determined by the Administrator; provided,
however, in the case of an ISO, and an NSO intended to qualify as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price shall
be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date of
grant.

     (d) Time of Exercise. An Option shall become exercisable as specified in the Award
Agreement. An Option shall not be exercisable after the 10th anniversary of the date of
grant.

     (e) Vesting.

          (i) Shares shall become vested as specified in the Award Agreement. Vesting may be immediate
or deferred. Vesting may be time-based or performance-based. Shares acquired on exercise of an
Option shall first be attributable to vested Shares, then unvested Shares. Shares shall cease to
vest at the time of termination of Service.

          (ii) Shares acquired under the Plan that have not vested may be repurchased by the Corporation
at the lesser of the original exercise price or the Shares’ Fair Market Value if the Grantee’s
Service with the Company is terminated for any reason or no reason, with or without Cause. The
Corporation may assign any unvested Share repurchase right it may have, whether or not then
exercisable, to such person or persons as may be selected by the Corporation. The Corporation may
require the Grantee to place certificates for any unvested Shares in escrow under reasonable terms
established by the Administrator.

          (iii) Upon the occurrence of a Change in Control, the unvested Share repurchase right shall
lapse to the same extent as Options become exercisable pursuant to Section 8.

          (iv) The unvested Share repurchase right may be exercised by written notice to Grantee within
90 days after termination of Grantee’s Service (or exercise of the Option, if later). If notice is
not given within such 90-day period, the repurchase option shall terminate unless the

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parties have extended the time for its exercise. Cash payment (or cancellation of purchase
money indebtedness) must be made by the thirtieth (30th) day after the date of the
written notice to Grantee of the exercise of the repurchase right.

     (f) Special Rules for 10% Owners. The exercise price of an ISO granted to an
individual who owns stock possessing more than ten percent (10%) of the combined voting power of
all classes of stock of the Corporation shall not be less than one hundred ten percent (110%) of
the fair market value of a Share on the date of grant. No ISO granted to an individual who owns
stock possessing more than ten percent (10%) of the total combined voting power of all classes of
stock shall be exercisable after the expiration of five (5) years from the date of grant. For
purposes of determining whether an employee owns stock possessing more than ten percent (10%) of
the total combined voting power of all classes of stock, an employee shall be considered as owning
the stock owned, directly or indirectly, by or for his or her brothers and sisters (whether by the
whole or half blood), spouse, ancestors, and lineal descendants. Stock owned, directly or
indirectly, by or for a corporation, partnership, estate, or trust shall be considered as being
owned proportionately by or for its stockholders, partners, or beneficiaries. Stock with respect
to which the employee holds an Option shall not be counted.

     (g) Payment of Exercise Price. The exercise price for Shares purchased under an
Option shall be paid in full by delivery of consideration equal to the product of the Option
exercise price and the number of Shares purchased. Subject to Applicable Laws, in the sole
discretion of the Administrator, payment of any Option’s exercise price may be made in cash, by
check or cash equivalent, or as provided otherwise in this section, partly or wholly.

          (i) By Tender of Stock. If the exercise occurs on or after the Listing Date, payment
may be made by tender to the Corporation of Shares owned by Grantee or delivery of a properly
executed form of attestation of ownership of Shares as the Administrator may require (including
withholding of Shares otherwise deliverable upon exercise of the Option), which have a Fair Market
Value on the date of tender or attestation equal to the aggregate exercise price of the Shares as
to which said Option shall be exercised. Unless otherwise allowed under the Award Agreement, an
Option may not be exercised by tender to the Corporation of Shares or attestation unless such
Shares (i) have been owned by Grantee for more than six (6) months (or any shorter period necessary
to avoid a charge to the Corporation’s earnings for financial reporting purposes), (ii) were not
acquired, directly or indirectly, from the Corporation or (iii) are to pay required taxes as
described in Section 11(n).

          (ii) By Cashless Exercise. If the exercise occurs on or after the Listing Date, and
to the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, by delivery of a
properly executed exercise notice, together with irrevocable instructions, to

               (a) a brokerage firm designated by the Corporation to deliver promptly to the Corporation the
aggregate amount of sale or loan proceeds to pay the Option exercise price and any withholding tax
obligations that may arise in connection with the exercise and

               (b) the Corporation to deliver the certificates for such purchased shares directly to such
brokerage firm, all in accordance with the regulations of the Federal Reserve Board.

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          (iii) Such other medium as the Administrator determines, in its sole discretion.

     (h) Exercise of Option. Any Option granted hereunder shall be exercisable according
to the terms of the Plan and at such times and under such conditions as determined by the
Administrator and set forth in the Award Agreement. An Option will be deemed exercised when the
Corporation receives: (i) written notice from the Grantee to the Corporation at the address
specified in the Award Agreement, and (ii) full payment for the Shares with respect to which the
Option is exercised (together with any applicable withholding taxes). After receiving proper
notice of exercise and payment, the Corporation shall issue Shares as evidenced by issuing a
certificate(s) for the Shares purchased or by the appropriate entry on the books of the Corporation
or of a duly authorized transfer agent of the Corporation. Until the Shares are issued (as
evidenced as described in preceding sentence), no right to vote or to receive dividends or any
other rights as a stockholder shall exist with respect to the awarded stock, notwithstanding the
exercise of the Option. The Corporation will issue such Shares as soon as practicable after
exercise.

     (i) Termination of Option.

          (1) Termination of Service. If a Grantee’s Service terminates, his or her rights to
exercise an Option then held shall be limited. Grantee’s Service shall not be deemed to have
terminated merely because of a change in the capacity in which Grantee renders Service or a change
in the Company, provided that there is no interruption or termination of Grantee’s employment or
service. Grantee’s Service with the Company shall be treated as continuing intact while the
Grantee is on military leave, sick leave, or other bona fide leave of absence (such as temporary
employment by the government) approved by the Company if the period of such leave does not exceed
three (3) months, or, if longer, so long as the Grantee’s right to reemployment with the
Corporation is provided either by statute or by contract. Where the period of leave exceeds three
(3) months and where the Grantee’s right to reemployment is not provided either by statute or by
contract, Service will be deemed to have terminated on the first day immediately following such
three-month period. Subject to the foregoing, the Administrator, in its sole discretion, shall
determine whether Grantee’s Service has terminated and the effective date thereof.

          (2) Regular Termination. Except as otherwise provided in paragraphs (3) through (5),
if a Grantee’s Service terminates, Grantee shall have the right for a period of three (3) months
after the date of termination to exercise the Option to the extent Grantee was entitled to exercise
the Option on that date; provided, however, that the date of exercise is in no event after the
expiration of the term of the Option. To the extent the Option is not exercised within this
period, the Option will terminate.

          (3) Termination by Disability. If a Grantee terminates Service by reason of
Disability, Grantee or his or her qualified representative shall have the right for a period of
twelve (12) months after the date on which Grantee’s Service ends to exercise the Option to the
extent Grantee was entitled to exercise the Option on that date, provided the date of exercise is
in no event after the expiration of the term of the Option. To the extent the Option is not
exercised within this period, the Option will terminate.

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          (4) Termination Upon Death. If a Grantee dies while in Service, the person who
acquired the right to exercise the Option by bequest or inheritance or by reason of the death of
the Grantee shall have the right for a period of twelve (12) months after the date of death to
exercise the Option to the extent Grantee was entitled to exercise the Option on that date,
provided the date of exercise is in no event after the expiration of the term of the Option. To
the extent the Option is not exercised within this period, the Option will terminate.

          (5) Termination for Cause. If a Grantee’s Service is terminated by the Company for
Cause, Grantee shall have no right to exercise the Option, and the Option will terminate.

          (6) Award Agreement. The Award Agreement may provide rules different from those set
forth in subsections (1) through (5), provided that an Option may not be exercisable for more than
three (3) months after the termination of Service (12 months if Service terminated by Disability as
provided in Section 5(i)(3) or upon Death as provided in Section 5(i)(4)) unless the Committee
concludes that a longer exercise period would not make variable accounting mandatory.

     (j) Modification, Extension, and Renewal. Within the limitations of the Plan, the
Administrator shall have the power to modify, extend, or renew outstanding Options and authorize
the grant of new Options in substitution therefor, provided that any such action may not have the
effect of significantly impairing any rights or obligations of any Option previously granted
without the consent of Grantee. The Administrator shall consider the impact of Section 409A of the
Code on any such modification, extension, renewal, or substitution grant.

6. Stock Appreciation Rights.

     (a) Grant of SARs. Subject to the terms and conditions of the Plan, the
Administrator, at any time and from time to time, may grant SARs separately, or in tandem with any
Options that have been or are granted under the Plan.

     (b) Terms and Conditions. Each SAR granted under the Plan shall be subject to the
same terms and conditions that apply to Options pursuant to Section 5 herein, except as otherwise
provided in this Section 6 or by the Administrator. Each SAR granted under the Plan shall be
evidenced by an Award Agreement.

     (c) Exercise. An SAR shall be deemed exercised when the Corporation receives written
notice of the exercise from the Grantee to the Corporation at the address specified in the Award
Agreement.

     (d) Tandem SARs. An SAR granted in tandem with a related Option shall entitle the
holder of the related Option to surrender to the Corporation the unexercised portion of the related
Option and to receive from the Corporation in exchange therefor an amount equal to the excess of
the Fair Market Value of one Share on the date the right is exercised over the exercise price per
Share times the number of Shares covered by the portion of the Option that is surrendered. At the
discretion of the Administrator, the payment upon exercise may be in cash, in Shares, or in a
combination thereof. A tandem SAR shall have the same other terms and provisions as the related
Option. Any SAR granted in tandem with an ISO shall be designed to meet the

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requirements of Section 422 of the Code. SARs shall be canceled to the extent the related
Options are exercised, and the related Options shall be canceled to the extent the SARs are
exercised.

     (e) Stand-Alone SARs. Upon exercise of a stand-alone SAR, a Grantee shall be entitled
to receive from the Corporation an amount equal to the excess of the Fair Market Value of one Share
on the date of exercise over the exercise price per Share times the number of Shares with respect
to which the SAR is exercised. At the discretion of the Administrator, the payment upon SAR
exercise may be in cash, in Shares, or in a combination thereof.

7. Restricted Stock and Restricted Stock Units.

     (a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the
Administrator, at any time and from time to time, may grant Restricted Stock and Restricted Stock
Units in such amounts as the Administrator, in its sole discretion, shall determine. Each
Restricted Stock and Restricted Stock Unit Award shall be evidenced by an Award Agreement.

     (b) Consideration for Awards. Restricted Stock Awards may be for past services, for
future services, or for any other consideration, provided that at least the par value of each Share
transferred pursuant to such Awards must be for consideration other than future services.

     (c) Vesting and Forfeiture. The Award Agreement shall provide a vesting schedule.
Vesting may be immediate or deferred. Vesting may be time-based or performance-based (as
determined by the achievement of Performance Goals). If a Grantee’s Service terminates during the
applicable Restriction Period or portion thereof to which forfeiture conditions apply, any unvested
Shares of Restricted Stock and Restricted Stock Units shall be forfeited, and the Corporation shall
pay the Grantee $0.01 for each unvested Share of Restricted Stock, whether or not the Shares have
been issued. For this purpose, a Grantee shall be treated as continuing to provide Services while
the Grantee is on military leave, sick leave, or any other bona fide leave of absence (to be
determined in the sole and absolute discretion of the Administrator). Notwithstanding the
foregoing, the Administrator may provide, by rule or regulation or in any Award Agreement, or may
determine in any individual case, that restrictions or forfeiture conditions relating to Restricted
Stock and Restricted Stock Units shall be waived in whole or in part in the event of terminations
resulting from specified causes, and the Administrator may in other cases waive in whole or in part
the forfeiture of Restricted Stock and Restricted Stock Units.

     (d) Time of Issuance or Payment. Each Restricted Stock Award Agreement and Restricted
Stock Unit Award Agreement shall state the time that the Shares shall be issued, or amounts paid,
to the Grantee. The issuance or payment may be immediate (as soon as administratively feasible) or
deferred (at any later time, provided that the issuance may not be more than ten years after the
effective date of the Award), before or after vesting. Issuance or payment may be accelerated by
events such as a Change in Control, an initial public offering (IPO), sale of the Corporation or
all or substantially all of the Corporation’s assets, or termination of Services, but may not be
deferred for more than ten (10) years. Upon issuance of Shares, the Shares shall be fully paid and
nonassessable and shall be issued in the name of the Grantee; however, at the request of the
Grantee, the Shares may be issued in the names of the

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Grantee and his or her spouse (i) as joint tenants with right of survivorship, (ii) as
community property, or (iii) as tenants in common without right of survivorship or may be issued in
the name of a child or a family trust. Until issuance, unless the Administrator determines
otherwise, Shares shall be held by the Corporation as escrow agent.

     (e) Other Restrictions. The Administrator, in it sole discretion, may impose such
other restrictions on Shares of Restricted Stock and Restricted Stock Units as it may deem
advisable or appropriate.

     (f) Modification, Extension, and Renewal of Restricted Stock and RSU Awards. Within
the limitations of the Plan, the Administrator may modify, extend, or renew outstanding Awards of
Restricted Stock and Restricted Stock Units or accept the cancellation of such outstanding Awards
(to the extent the Shares have not been issued) for the granting of new Awards in substitution
therefore. The foregoing notwithstanding, no modification of an Award shall, without the consent
of the Grantee, alter or impair any rights or obligations under any Award previously granted. The
Administrator shall consider the impact of Section 409A of the Code on any such modification,
extension, renewal, or substitution grant.

     8. Change in Control. An Award’s exercisability (or Restriction Period, as
applicable) and term may be affected by a Change in Control, as described in this section.

     (a) Optional Assumption or Substitution. At the time of a Change in Control, the
surviving, continuing, successor or purchasing corporation or parent corporation thereof, as the
case may be (the “Acquiror”), may either assume the Corporation’s rights and obligations with
respect to outstanding Awards or substitute for outstanding Awards substantially equivalent Awards
for the Acquiror’s stock. If the Acquiror is the same corporate entity as the Corporation, or its
successor by merger, a reaffirmation of the Award shall be treated as an assumption, and a failure
to reaffirm shall be treated as a failure to assume. Any assumption or substitution of an Option
or SAR shall be designed to meet the requirements of Section 424 of the Code.

     (b) No Assumption or Substitution – Options and SARs. Unless otherwise determined by
the Administrator, if the Acquiror does not assume or substitute for outstanding Options and SARs
in connection with a Change in Control, a Grantee’s outstanding Options and SARs shall become fully
vested and exercisable as of the date seven (7) days before the Effective Date of the Change in
Control. The Administrator shall notify the Grantee in writing or electronically that the Option
or SAR shall be exercisable. The vesting and exercise of any Option or SAR that was permissible
solely by reason of a Change in Control shall be conditioned upon consummation of the Change in
Control. Options and SARs that are neither assumed nor substituted for by the Acquiror in
connection with a Change in Control, nor exercised as of the time of the Change in Control, shall
terminate and cease to be outstanding.

     (c) No Assumption or Substitution – Restricted Stock and RSUs. Unless otherwise
determined by the Administrator, if the Acquiror does not assume or substitute for a Grantee’s
outstanding Restricted Stock or Restricted Stock Units in connection with a Change in Control, the
Grantee’s outstanding Restricted Stock and Restricted Stock Units shall become fully vested as of
the Effective Date of the Change in Control. The vesting of any Restricted Stock and Restricted
Stock Unit that was permissible solely by reason of a Change in Control shall be

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conditioned upon consummation of the Change in Control. Shares that have not previously been
issued under Restricted Stock or Restricted Stock Units, as applicable, that are neither assumed
nor substituted for by the Acquiror in connection with a Change in Control shall be issued.

     (d) Award Agreement. The Award Agreement may provide rules different from those set
forth in subsections (a) through (c).

     9. Securities Law Requirements. Shares shall not be issued pursuant to the exercise
or settlement of an Award unless the exercise or settlement of such Award and the issuance and
delivery of such Shares pursuant thereto shall comply with all Applicable Laws, and shall be
further subject to the approval of counsel for the Corporation with respect to such compliance. As
a condition to the exercise or receipt of an Award, the Company may require the person exercising
or receiving such Award to represent and warrant at the time of any such exercise or receipt that
the Shares are being purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Corporation, such a representation is
required by any Applicable Laws. The inability of the Corporation to obtain, from any regulatory
body having jurisdiction, the authority deemed by the Corporation’s counsel to be necessary for the
lawful issuance and sale of any Shares hereunder or the unavailability of an exemption from
registration for the issuance and sale of any Shares hereunder shall relieve the Corporation of any
liability in respect of the nonissuance or sale of such Shares as to which such requisite authority
shall not have been obtained.

     10. Restrictions on Shares Issued. The Corporation (or a representative of the
Corporation’s underwriter(s)) may, in connection with the first underwritten registration of the
offering of any securities of the Corporation, require that Grantee not sell, dispose of, transfer,
make any short sale of, grant any option for the purchase of, or enter into any hedging or similar
transaction with the same economic effect as a sale with respect to, any Shares or other securities
of the Corporation held by Grantee, for a period of time specified by the underwriter(s) (not to
exceed 12 months) following the Corporation’s effective date of registration. Grantee will execute
and deliver such other agreements that are reasonably requested by the Corporation or the
underwriter(s) that are consistent with the foregoing or that are necessary to give further effect
thereto, and the Corporation may impose stop-transfer instructions with respect to Grantee’s Shares
until the end of such specified period.

11. Miscellaneous.

     (a) No Rights to Awards. Nothing in the Plan shall be construed to give any person
any right to be granted an Award.

     (b) No Employment Rights. Neither the Plan nor the granting of an Award nor any other
action taken pursuant to the Plan shall constitute or be evidence of any agreement or
understanding, express or implied, that the Company will utilize Grantee’s services for any period
of time, or in any position, or at any particular rate of compensation.

     (c) No Stockholders’ Rights. A Grantee, or a transferee of a Grantee, shall have no
rights as a stockholder with respect to any Shares covered by his or her Award until the Shares are
issued. No adjustment shall be made for dividends (ordinary or extraordinary, whether in

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cash, securities, or other property), distributions, or other rights for which the record date
is prior to the date the Shares are issued.

     (d) Transferability. Unless otherwise provided in an Award Agreement, Awards may not
be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner by the Grantee,
whether by operation of law or otherwise, other than by will or by the laws of descent and
distribution, and all Awards granted under the Plan shall be exercisable during the Grantee’s
lifetime only by the Grantee, or by the Grantee’s legal representative or guardian in the event of
the Grantee’s incapacity; provided, however, that an NSO may be transferred upon the approval of
the Administrator (in its sole discretion) by appropriate instrument to an inter vivos or
testamentary trust in which the Option is to be passed to the Grantee’s beneficiaries upon the
Grantee’s death or by gift to the Grantee’s immediate family (consisting of the Grantee’s child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include
adoptive relationships). Any such purported assignment, sale, transfer, delegation, or other
disposition in violation of this Section 11(d) shall be null and void. If the Administrator makes
an Award transferable, such Award shall contain such additional terms and conditions as the
Administrator deems appropriate.

     (e) Claims. Any person who makes a claim for benefits under the Plan or under any
Award Agreement entered into pursuant to the Plan shall file the claim in writing with the
Administrator. Written notice of the disposition of the claim shall be delivered to the claimant
within 60 days after filing. If the claim is denied, the Administrator’s written decision shall
set forth (i) the specific reason or reasons for the denial, (ii) a specific reference to the
pertinent provisions of the Plan or Award Agreement on which the denial is based, and (iii) a
description of any additional material or information necessary for the claimant to perfect his or
her claim and an explanation of why such material or information is necessary. If the
Administrator describes additional material or information and such material or information is
available, the claimant may resubmit the claim within 60 days after the claim is denied. No
lawsuit may be filed by the claimant until a claim is made and denied pursuant to this subsection.
The claimant may not present additional material or information in connection with any lawsuit
unless the material or information has first been submitted to the Administrator in connection with
the original claim or in connection with a resubmission within 60 days after the claim was denied.

     (f) Attorneys’ Fees. In any legal action or other proceeding brought by either party
to enforce or interpret the terms of the Award Agreement, the prevailing party shall be entitled to
recover reasonable attorneys’ fees and costs.

     (g) Confidentiality. The terms and conditions of the Award Agreement, including
without limitation the number of Shares for which the Option is granted, are confidential. Grantee
shall not disclose the terms of the Option to any third party, except to Grantee’s financial or
legal advisors, tax preparer or family members, unless disclosure is required by law.

     (h) Corporation Free to Act. An Award grant shall not affect in any way the right or
power of the Corporation or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations, or other changes in the Company’s capital structure or its
business, or any merger or consolidation of any member of the Company or any issue of bonds,

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debentures, or preferred or preference stocks affecting the Shares or the rights thereof, or
of any rights, options, or warrants to purchase any capital stock of the Corporation, or the
dissolution or liquidation of the Corporation, any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceedings of the Corporation, whether of a
similar character or otherwise.

     (i) Acquired Company Awards. Notwithstanding anything in the Plan to the contrary,
the Administrator may grant Awards under the Plan in substitution for awards issued under other
plans, or assume under the Plan awards issued under other plans, if the other plans are or were
plans of other acquired entities (“Acquired Entities”) (or the parent of the Acquired Entity) and
the new Award is substituted, or the old award is assumed, by reason of a merger, consolidation,
acquisition of property or of stock, reorganization or liquidation (the “Acquisition Transaction”);
provided, however, any substitution or assumption of a stock option or a stock appreciation right
pursuant to an Acquisition Transaction shall meet the requirements of Section 424 of the Code. In
the event that a written agreement pursuant to which the Acquisition Transaction is completed is
approved by the Board and said agreement sets forth the terms and conditions of the substitution
for or assumption of outstanding awards of the Acquired Entity, said terms and conditions shall be
deemed to be the action of the Administrator without any further action by the Administrator,
except as may be required for compliance with Rule 16b-3 under the Exchange Act, and the persons
holding such Awards shall be deemed to be Grantees.

     (j) Severability. If any provision of the Plan or Award Agreement, or its application
to any person, place, or circumstance, is held by an arbitrator or a court of competent
jurisdiction to be invalid, unenforceable, or void, that provision shall be enforced to the
greatest extent permitted by law, and the remainder of this Plan and Award Agreement and of that
provision shall remain in full force and effect as applied to other persons, places, and
circumstances.

     (k) Governing Law. This Plan and the Award Agreement shall be governed by and
construed in accordance with the laws of the State of Georgia applicable to contracts wholly made
and performed in the State of Georgia, except to the extent superseded by Federal law.

     (l) Rules of Exchange. If the Shares are listed on any established stock exchange or
traded on the NASDAQ National Market or the NASDAQ SmallCap Market, the applicable requirements of
any such exchange or market shall be hereby incorporated by reference.

     (m) Competition. If the Award Agreement subjects the Award to this subsection, a
Grantee who has a contract of employment that defines Grantee’s obligations with respect to
competition violates such obligations or if a Grantee has no such contract either renders services
for any organization or business that is or becomes competitive with the Company or engages
directly or indirectly in any organization or business which is or becomes otherwise prejudicial to
or in conflict with the interests of the Company, as determined by the Administrator, prior to or
during a six-month period after any exercise of an Option or settlement of an Award, the exercise
or settlement shall be cancelled and rescinded. The Administrator shall notify the Grantee in
writing of any such cancellation and rescission within two years after such exercise or settlement.
Within ten days after receiving such notice from the Administrator, the Grantee shall pay to the
Corporation the amount of any gain realized or payment received as a result of the cancelled and
rescinded exercise of the Option or settlement of the Award.

-11-

 

     (n) Taxes and Withholding. Prior to the delivery of any Shares or cash pursuant to an
Award (or exercise thereof), the Corporation shall have the right to deduct from the Shares
issuable or the cash payable, or to require a Grantee to remit to the Corporation, an amount
sufficient to satisfy any federal, state, local and foreign taxes, if any, required by law to be
withheld by the Corporation with respect to such Award (or exercise thereof). Alternatively or in
addition, the Corporation, in its sole discretion, shall have the right to require a Grantee,
through payroll withholding, cash payment or otherwise, including by means of a cashless exercise
(as described in Section 5(g)(ii)), to make adequate provision for any such tax withholding
obligations of the Corporation arising in connection with an Award. The Corporation may also
accept from Grantee the tender of a number of whole Shares having a Fair Market Value equal to all
or any part of the federal, state, local and foreign taxes, if any, required by law to be withheld
by the Corporation with respect to an Option or the Shares acquired upon the exercise thereof.

     (o) Fractional Shares. The Corporation shall not be required to issue or deliver any
fractional Share upon the exercise of an Option or SAR, or the settlement of a Restricted Stock or
Restricted Stock Unit Award. The Administrator shall determine whether cash, other Awards, or
other property shall be issued or paid in lieu of such fractional Shares or whether such fractional
Shares or any rights thereto shall be forfeited or otherwise eliminated. Any action pursuant to
this Section 11(o) shall be consistent with Section 409A of the Code.

     (p) Bifurcation. Notwithstanding anything in the Plan to the contrary, the Board, in
its discretion, may bifurcate the Plan so as to restrict, limit or condition the use of any
provision of the Plan to Grantee’s who are officers or directors subject to Section 16 of the
Exchange Act without so restricting, limiting or conditioning the Plan with respect to other
Grantees.

     12. Right of First Refusal. Any Shares received pursuant to the exercise of an Option
or SAR or upon settlement of an Award which are not readily tradable on an established market shall
be subject to a “right of first refusal.” The right of first refusal shall provide that, prior to
any subsequent transfer, the Shares must first be offered for purchase in writing to the
Corporation at the then fair market value, which, for this purpose, shall be the price specified in
a bona fide written offer from an independent prospective buyer. The Corporation will have a total
of thirty (30) business days to exercise the right of first refusal on the same terms offered by an
independent prospective buyer. The Corporation may assign any right of first refusal it may have,
whether or not then exercisable, to person(s) as may be selected by the Corporation. The right of
first refusal shall terminate upon the Listing Date.

     13. Effective Date of the Plan. The Plan will become effective upon adoption by the
Board, subject to approval by the Corporation’s stockholders within twelve (12) months of such
adoption. Such stockholder approval shall be obtained in the degree and manner required under
Applicable Laws. Awards may be granted under the Plan at any time after the Plan’s adoption and
before the termination of the Plan. The Plan shall terminate on the 10th anniversary of
its adoption. Any Option exercised or Award received before stockholder approval is obtained shall
be rescinded if stockholder approval is not obtained within the time prescribed, and Shares issued
on the exercise of any such Option or settlement of such Award shall not be counted in determining
whether stockholder approval is obtained.

-12-

 

     14. Amendment and Termination of the Plan. The Board may at any time suspend or
terminate the Plan or revise or amend it in any respect whatsoever. The Corporation shall obtain
stockholder approval of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws. No suspension, termination, revision or amendment of the Plan shall impair the
rights of any Grantee, unless mutually agreed otherwise between the Grantee and the Administrator,
which agreement must be in writing and signed by the Grantee and the Corporation. Termination of
the Plan shall not affect the Administrator’s ability to exercise the powers granted to it
hereunder with respect to Awards granted under the Plan prior to the date of such termination.

     15. Definitions. Whenever the following terms are used in the Plan, they shall have
the meaning indicated below, unless a different meaning is required by the context.

     “Administrator” means a committee consisting of two or more Board members, the composition of
which shall satisfy at all times on and after the Listing Date the requirements of Rule 16b-3 of
the Exchange Act, Section 162(m) of the Code, and the rules of any applicable stock exchange or
national market system or quotation system on which the Common Stock is listed or quoted.

     “Applicable Laws” means the legal requirements relating to the administration of equity
compensation plans, if any, under applicable provisions of federal securities laws, applicable
state corporate and securities laws, the Code, the rules of any applicable stock exchange or
national market system or quotation system on which the Common Stock is listed or quoted, and the
applicable laws and rules of any foreign country or jurisdiction where Awards are, or will be,
granted under the Plan.

     “Award” means, individually or collectively, a grant under the Plan of Options, SARs,
Restricted Stock, or Restricted Stock Units.

     “Award Agreement” means the written agreement evidencing the grant of an Award. The Award
Agreement shall be in such form as the Administrator shall from time to time approve, which shall
comply with and be subject to the terms and conditions of the Plan. Award Agreements need not be
the same for each Grantee.

     “Board” means the board of directors of the Corporation.

     “Cause” Unless the Award Agreement provides otherwise, for purposes of this Plan, “Cause”
means:

     (1) Grantee is convicted of, pleads guilty to, or confesses or otherwise admits to any
felony involving intentional conduct or any act of fraud, misappropriation or embezzlement;

     (2) Grantee knowingly engages in any act or course of conduct or knowingly fails to
engage in any act or course of conduct (a) which is reasonably likely to adversely affect
the Company’s right or qualification under applicable laws, rules or regulations to serve as
an exchange or other form of a marketplace for trading commodities or (b) which violates the
rules of any exchange or market on which the Company effects trades

-13-

 

(or at such time is actively contemplating effecting trades) and which could lead to a
denial of the Company’s right or qualification to effect trades on such exchange or market;

     (3) There is any act or omission by Grantee involving malfeasance or gross negligence
in the performance of Grantee’s duties and responsibilities to the material detriment of the
Company; or

     (4) Grantee breaches in any material respect any of the provisions of any applicable
employment agreement or violates any provision of any generally applicable code of conduct
which is distributed in writing to the Company’s employees; provided, however,

     (5) If Grantee’s employment contract contains a procedure for determining whether Cause
exists, that procedure shall apply under this Agreement.

     “Change in Control” Unless the Award Agreement provides otherwise, for purposes of this Plan,
“Change in Control” means the occurrence of any of the following events:

     (1) Any “person” (as that term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934), is or becomes the beneficial owner (as defined in Rule 13d-3 under
such Act), directly or indirectly, of securities representing 30% or more of the combined
voting power of the then outstanding securities of the Corporation eligible to vote for the
election of the members of the Board unless (A) such person is the Corporation or a
subsidiary of the Corporation, (B) such person is an employee benefit plan (or a trust which
is a part of such a plan) which provides benefits exclusively to, or on behalf of, employees
or former employees of the Company, (C) such person is an underwriter temporarily holding
such securities pursuant to an offering of such securities, (D) such person is Grantee, an
entity controlled by Grantee or a group which includes Grantee or (E) such person acquired
such securities in a Non-Qualifying Transaction (as defined in (4) below);

     (2) During any period of two consecutive years or less beginning after the closing date
of the initial public offering of the common stock of the Corporation, individuals who at
the beginning of such period constitute the Board cease, for any reason, to constitute at
least a majority of the Board, unless the election or nomination for election of each new
director was approved by at least two-thirds of the directors then still in office who were
directors at the beginning of the period (either by a specific vote of such directors or by
the approval of the Corporation’s proxy statement in which each such individual is named as
a nominee for a director without written objection to such nomination by such directors);
provided, however, that no individual initially elected or nominated as a
director of the Corporation as a result of an actual or threatened election contest with
respect to directors or as a result of any other actual or threatened solicitation of
proxies or consents by or on behalf of any person other than the Board shall be deemed to be
approved;

-14-

 

     (3) Any dissolution or liquidation of the Corporation or any sale or the disposition of
50% or more of the assets or business of the Corporation, or

     (4) The consummation of any reorganization, merger, consolidation or share exchange or
similar form of corporate transaction involving the Corporation unless (A) the persons who
were the beneficial owners of the outstanding securities eligible to vote for the election
of the members of the Board immediately before the consummation of such transaction hold
more than 60% of the voting power of the securities eligible to vote for the members of the
board of directors of the successor or survivor corporation in such transaction immediately
following the consummation of such transaction and (B) the number of the securities of such
successor or survivor corporation representing the voting power described in (A) above held
by the persons described in (A) above immediately following the consummation of such
transaction is beneficially owned by each such person in substantially the same proportion
that each such person had beneficially owned the outstanding securities eligible to vote for
the election of the members of the Board immediately before the consummation of such
transaction, provided (C) the percentage described in (A) above of the securities of the
successor or survivor corporation and the number described in (B) above of the securities of
the successor or survivor corporation shall be determined exclusively by reference to the
securities of the successor or survivor corporation which result from the beneficial
ownership of shares of common stock of the Corporation by the persons described in (A) above
immediately before the consummation of such transaction (any transaction which satisfies all
of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying
Transaction”);

Notwithstanding the foregoing, the initial public offering of the common stock of the Corporation
shall in no event constitute a Change in Control.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Common Stock” means the Common Stock, par value $0.01 per Share, of the Corporation.

     “Company” means, collectively, the Corporation and any “parent corporation” or “subsidiary
corporation” of the Corporation as defined in Code §424(e) and §424(f), respectively.

     “Corporation” means IntercontinentalExchange, Inc., a Delaware corporation.

     “Disability” Unless the Award Agreement provides otherwise, for purposes of this Plan,
“Disability” means permanent and total disability as defined in Code §22(e)(3).

     “Effective Date of a Change in Control” Unless the Award Agreement provides otherwise, for
purposes of this Plan, “Effective Date of a Change in Control” means either the date which includes
the “closing” (as such term is commonly understood in the United States) of the transaction which
makes a Change in Control effective if the Change in Control is made effective through a
transaction which has such a “closing” or the earliest date a Change in Control is reported in
accordance with any applicable law, regulation, rule or common practice as effective to any
government or any agency of any government or to any exchange or market in

-15-

 

which the Corporation effects any trades if the Change in Control is made effective other than
through a transaction which has such a “closing.”

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

          (1) After the Listing Date, if the Shares are listed on any established stock exchange or
traded on the NASDAQ National Market or the NASDAQ SmallCap Market, the Fair Market Value of a
Share shall be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or market (or the exchange or market with the greatest volume
of trading in the Common Stock) on the last market trading day prior to the day of determination,
as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

          (2) On or before the Listing Date, the Fair Market Value shall be determined in good faith by
the Administrator using any reasonable valuation method.

     “Grantee” means a person who has been granted an Award under the Plan.

     “ISO” means an incentive stock option within the meaning of Code §422.

     “Listing Date” means the first date upon which any security of the Corporation is listed or
approved for listing upon notice of issuance on any securities exchange.

     “NSO” means an option that is not an ISO.

     “Option” means a stock option granted pursuant to the Plan.

     “Performance Goals” means the goals determined by the Administrator, in its discretion, to be
applicable to a Grantee with respect to an Award. As determined by the Administrator, the
Performance Goals applicable to an Award may provide for a targeted level or levels of achievement
using certain Company or individual performance measures. The Performance Goals may differ from
Grantee to Grantee and from Award to Award. Any criteria used may be measured in absolute terms or
relative to comparison companies. Such Performance Goals may include, but are not limited to,
earnings; earnings per share; earnings before interest, taxes, depreciation and amortization;
revenue; profits; profit growth; profit-related return ratios; cost management; dividend payout
ratios; market share; economic value added; cash flow; total shareholder return, or other measures
of performance selected by the Administrator. The Administrator shall have the authority to make
equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events
affective the Company or the financial statements of the Company, in response to changes in
Applicable Laws, or to account for items of gain, loss or expense determined to be extraordinary or
unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business
or related to a change in accounting principles.

     “Plan” means this IntercontinentalExchange, Inc. 2005 Equity Incentive Plan.

-16-

 

     “Restricted Stock” means an Award of Shares that may be subject to certain restrictions and a
risk of forfeiture.

     “Restricted Stock Unit” or “RSU” means a right granted to a Grantee to receive Shares or cash
upon satisfaction of specified performance or other criteria, such as continuous Service.

     “Restriction Period” means the period during which the transfer of Shares of Restricted Stock
are subject to restrictions and therefore, the shares are subject to a substantial risk of
forfeiture. Such restrictions may be based on continuous Service, the achievement of Performance
Goals, and/or the occurrence of other events as determined by the Administrator.

     “Service” means the Grantee’s employment or service with the Company, whether in the capacity
of an employee, a director, or a consultant.

     “Share” means one share of Common Stock.

     “Stock Appreciation Right” or “SAR” means an Award that is designated as an SAR pursuant to
Section 6 of the Plan.

     IN WITNESS WHEREOF, the undersigned Secretary of the Corporation certifies that this Plan was
adopted by the Board on April 29, 2005, effective as of the same date.

Johnathan H. Short, Secretary

-17-EX-10.12:

 

Exhibit 10.12

AMENDMENT & RESTATEMENT

AGREEMENT

	 	 	 	 	 
	 	Date
	9th October 2003	 	 
	 	 	 	 

BETWEEN

The London Clearing House Limited (“LCH”)

of Aldgate House, 33 Aldgate High Street, London EC3N 1EA, UK

AND

IntercontinentalExchange Inc. (“ICE”)

of 2100 RiverEdge Parkway, Fifth Floor, Atlanta, GA 30328, USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain
information in this agreement has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.

 

INDEX

	 	 	 	 	 
	1.
	 	Interpretation	 	page 2
	2.
	 	Commencement	 	page 6
	3.
	 	Appointment to provide central counterparty services	 	page 7
	4.
	 	LCH Membership, Documentation and related matters	 	page 8
	5.
	 	Provision of Transaction Data	 	page 12
	6.
	 	Registration of LCH EnClear Contracts	 	page 12
	7.
	 	Eligible Derivative Products	 	page 13
	8.
	 	Settlement of LCH EnClear Contracts	 	page 21
	9.
	 	Default	 	page 22
	10.
	 	Margin	 	page 24
	11.
	 	Amendments to the Regulations and to ICE Documentation	 	page 26
	12.
	 	Systems Interfaces	 	page 28
	13.
	 	Record Keeping and information	 	page 30
	14.
	 	Charges, costs and expenses	 	page 30
	15.
	 	Confidentiality	 	page 32
	16.
	 	Trade emergencies and market disorder	 	page 35
	17.
	 	Period for acceptance of LCH EnClear Transactions arising in respect of Designated Trades	 	page 36
	18.
	 	Contract Terms	 	page 36
	19.
	 	Default Fund	 	page 37
	20.
	 	Assignment and delegation	 	page 37
	21.
	 	Termination	 	page 38
	22.
	 	Amendment	 	page 42
	23.
	 	Filings	 	page 43
	24.
	 	Additional assurance	 	page 43
	25.
	 	Warranty of capacity and power	 	page 43
	26.
	 	Liability	 	page 45
	27.
	 	Force Majeure	 	page 47
	28.
	 	Instructions	 	page 49
	29.
	 	Illegality	 	page 50
	30.
	 	Severability	 	page 51
	31.
	 	Notices	 	page 51
	32.
	 	Waivers	 	page 51
	33.
	 	Remedies Cumulative	 	page 51
	34.
	 	Entire Agreement	 	page 52
	35.
	 	Legal Relationship	 	page 52
	36.
	 	No rights under Contracts (Rights of Third Parties) Act 1999	 	page 52
	37.
	 	Number of counterparts	 	page 53
	38.
	 	Governing law and jurisdiction	 	page 53
	39.
	 	Dispute Resolution	 	page 53

	 	 	 
	Schedule 1
	 	Notices
	Annex 1
	 	The Services
	Annex 2
	 	New Product Notice
	Annex 3
	 	The Initial Products

 

THIS AMENDMENT AND RESTATEMENT AGREEMENT is made on

October 2003

Between

The London Clearing House Limited (“LCH”)

of Aldgate House, 33 Aldgate High Street, London EC3N 1EA, UK

and

IntercontinentalExchange Inc. (ICE”)

of 2100 RiverEdge Parkway, Fifth Floor, Atlanta, GA 30328, USA

WHEREAS

	(A)  	ICE operates a trading system which can be used by its participants for trading certain
derivative products, and has filed the required notice with the Commodity Futures Trading
Commission (“CFTC”) of the United States in order to claim exemption from the Commodity
Exchange Act (“CEA”) of the United States, and CFTC regulation as an exempt commercial market
in respect of the Trading System and has received acknowledgement from the CFTC of such
filing.
	 
	(B)  	LCH carries on the business of a Recognised Clearing House authorised under the Financial
Services and Markets Act 2000, and provides central counterparty and other services to its
members, and has been registered by CFTC as a Derivatives Clearing Organisation (“DCO”)
pursuant to Sections 5b of the CEA for the purpose of clearing OTC derivatives contracts,
agreements and transactions excluded or exempt under Sections 2(c), 2(d), 2(f), 2(g) or 2(h)
of the CEA or that are OTC derivative instruments as defined in Section 408 of the Federal
Deposit Insurance Corporation Improvement Act 1991 of the United States.
	 
	(C)  	LCH and ICE entered into an agreement (“the Original Agreement”) dated 15 March 2002 in which
ICE appointed LCH to provide central counterparty services in respect of certain transactions
executed through or entered in the trading

 

	   	system, and the parties agreed certain provisions
in respect of the provision of such services.
	 
	(D)  	On 13 March 2003 the Parties entered into a further agreement (“the Amendment Agreement”) in
order to amend the Original Agreement.
	 
	(E)  	The Parties now wish further to amend the Original Agreement and to restate some of the terms
of the Original Agreement and to this end now enter into this Amendment and Restatement
Agreement. This Amendment and Restatement Agreement supersedes and replaces the Original
Agreement and the Amendment Agreement with effect from the Effective Date (as defined
hereinbelow).

IT IS AGREED AS FOLLOWS -

Interpretation

	1.1     	In this Agreement the following expressions shall have the following meanings -

	   	Business Day means any day on which commercial banks in both New York State and England are
generally open for general banking business, other than 1 January, 25 and 26 December;
	 
	   	CFTC means the United States’ Commodity Futures Trading Commission;
	 
	   	Clearing Day means any London day, as published from time to time by LCH, upon which LCH is
open for the presentation of particulars of Designated Trades for registration by LCH;
	 
	   	Clearing Membership Agreement shall have the same meaning as in the Regulations;
	 
	   	Commencement Date means the day on which LCH begins to provide the Services, which date
shall be no later than 18 March 2002 unless the Parties hereto mutually agree to extend such
date;

Page 2

 

	   	Customer means any customer or other party pursuant to whose trading activity a Designated
Trade arises either directly or indirectly;
	 
	   	Default shall have the same meaning as in the Regulations;
	 
	   	Default Notice in relation to LCH, has the meaning given in the Regulations;
	 
	   	Default Rules means LCH’s Default Rules, which form part of the Regulations;
	 
	   	Delegated Functions has the meaning given in sub-paragraph 15.4;
	 
	   	Default Fund has the same meaning as in the Regulations;
	 
	   	Designated Trade means a trade in an Eligible Derivative Product which (i) has been executed
through the Trading System, and which gives rise to a transaction, the details of which are
forwarded by the Trading System for registration by LCH, in accordance with the Regulations;
or (ii) is an Off Market Trade, the details of which are entered into the Trading System in
accordance with the ICE Documentation, for registration by LCH in accordance with the
Regulations;
	 
	   	Effective Date means the date upon which this is Agreement is executed by both Parties, or,
if executed on different dates by each of the Parties the later of such dates;
	 
	   	Eligible Derivative Product means any ICE Product which is or at any time in the future
becomes eligible, in accordance with this Agreement and the Regulations for registration by
LCH;
	 
	   	Energy Product means contracts, including but not limited to options, futures, swaps and
forwards, over or in respect of oil and oil products, coal, natural gas, electricity or any
other similar energy products;
	 
	   	Fee Moratorium Period means the period commencing on the Effective Date and ending on 15
March 2006;
	 
	   	FSA means the United Kingdom’s Financial Services Authority;

Page 3

 

	   	Fund Amount, and Exchange Fund Amount have the same meaning as in the Regulations;
	 
	   	Group has the same meaning as in the Companies Act 1985 and Group of Companies means
companies which are in the same Group;
	 
	   	ICE Documentation means the terms and conditions, agreements, procedures, user guides,
requirements, and other documentation which govern the relationship between
ICE and each of its Participants, including, without prejudice to the generality of the
foregoing, any terms adopted by the board of directors of ICE or by any committee thereof;
	 
	   	ICE Product means a product which is or at any time in the future becomes available for
trading through the Trading System;
	 
	   	ICE Third Party Clearing Agreement means the agreement entitled “LCH EnClear Third Party
Clearing Agreement for use by ICE Participants”, in a form to be agreed between the Parties,
as prescribed from time to time by LCH in relation to the Services;
	 
	   	IPE means The International Petroleum Exchange of London Limited whose registered office is
at International House, 1 St. Katharine’s Way, London E1W 1UY, UK;
	 
	   	LCIA means the London Court of International Arbitration, The International Dispute
Resolution Centre, 8 Breams Buildings, Chancery Lane, London EC4A IHP, UK;
	 
	   	LCH Clearing Approval means any agreement or other document (other than a Clearing
Membership Agreement) under which LCH agrees to provide the Services to any LCH Member;
	 
	   	LCH EnClear Clearing Member means an LCH Member authorised by LCH to receive the Services;

Page 4

 

	   	LCH EnClear Contract means an LCH EnClear Contract as defined by the Regulations and which
has arisen, in accordance with the Regulations, from an LCH EnClear Transaction submitted to
LCH for registration;
	 
	   	LCH EnClear Transaction means a transaction arising from a Designated Trade and which is
eligible in accordance with the Regulations for registration by LCH;
	 
	   	LCH General Policy means the general policy which LCH uses with regard to the markets for
which it provides central counterparty services, which is to treat all markets substantially
equally, except to the extent that LCH reasonably determines that the requirements
applicable to a market must be tailored to meet the characteristics and
needs of the particular market place, or to ensure and maintain standards that do not
adversely affect LCH’s risk, or to maintain the integrity and security appropriate to the
relevant market;
	 
	   	LCH Member means a member of LCH;
	 
	   	Off Market Trade means a trade in an Eligible Derivative Product which is executed outside
the electronic part of the Trading System by two ICE Participants in accordance with the ICE
Documentation;
	 
	   	Participant means a person authorised by ICE to use the Trading System for the execution of
trades;
	 
	   	Parties means the parties to this Agreement and “Party” shall be construed as a reference to
either of them as the context so demands;
	 
	   	Procedures means the procedures which form part of the Regulations;
	 
	   	Product Group means a group of Eligible Derivative Products agreed as such from time to time
by the Parties;
	 
	   	Regulations means the General Regulations, Default Rules and Procedures of LCH, as amended
from time to time and any reference to a Regulation shall be construed as a reference to the
relevant General Regulation;

Page 5

 

	   	Services means the central counterparty services as set out in Annex 1 hereto to be provided
by LCH under this Agreement or as otherwise agreed by ICE and LCH;
	 
	   	Third Party Clearing Participant means a Participant which is not an LCH EnClear Clearing
Member but who has executed and is maintaining a valid ICE Third Party Clearing Agreement;
	 
	   	Trading System means the trading system or systems operated now or from time to time by ICE
which permits quote and order entry and automated execution of trades by Participants and
includes the arrangements for the forwarding to LCH for registration of those Designated
Trades which are Off Market Trades;
	 
	   	Transaction Data has the meaning given in sub-paragraph 15.3;
	 
	1.2  	In this Agreement unless the context otherwise requires -
	 
	(a)  	the headings are inserted for convenience only and do not affect the construction of the
Agreement;
	 
	(b)  	any reference to a rule, an enactment or a statutory provision is a reference to it as it may
have been, or may from time to time be amended, modified, consolidated, re-enacted or
replaced;
	 
	(c)  	any reference to any English legal term for any action, remedy, method of judicial
proceeding, legal document, legal status, court official or any other legal concept is, in
respect of any jurisdiction other than England, deemed to include the legal concept or term
which most nearly approximates in that jurisdiction to the English legal term.

Commencement

	2.1  	This Agreement shall commence on the Effective Date and shall continue in force until
terminated in accordance with the provisions of paragraph 21 hereof or otherwise by law.

Page 6

 

	2.2  	The Parties agree that on the Effective Date the Original Agreement and the Amendment
Agreement shall terminate and cease to have any force and effect, being superseded and
replaced by this Amendment and Restatement Agreement (“this Agreement”).

Appointment to provide central counterparty services

	3.1  	Subject to ICE’s rights as set out in paragraph 7 below, ICE hereby appoints LCH, on the
terms and subject to the conditions of this Agreement, to be exclusive provider of central
counterparty services (“the Services”) in respect of Designated Trades. LCH hereby accepts
such appointment and undertakes to provide the Services on the terms and subject to the
conditions of this Agreement.
	 
	3.2  	LCH undertakes to comply with all such parts of its Regulations as are relevant to the
provision of the Services and to its obligations under this Agreement, and ICE
undertakes to comply with all such parts of the ICE Documentation as are relevant to
Designated Trades and to comply with its obligations under this Agreement.
	 
	3.3  	ICE acknowledges that LCH is subject to the supervision of the FSA and the jurisdiction of
the CFTC. ICE agrees that, notwithstanding any provision to the contrary contained in this
Agreement, upon request by LCH, it will use its reasonable endeavours to take any action or
refrain from taking any action as may be required by the FSA, the CFTC or any regulator to
whose jurisdiction or supervision LCH may from time to time become subject in order to comply
with its obligations to such regulator.
	 
	3.4  	LCH acknowledges that ICE is subject to the jurisdiction of the CFTC and certain of ICE’s
subsidiaries currently are or will be subject to supervision of the FSA. LCH agrees that,
notwithstanding any provision to the contrary contained in this Agreement, upon request by
ICE, it will use its reasonable endeavours to take any action or refrain from taking any
action as may be required by the CFTC or the FSA or any other regulator to whose jurisdiction

Page 7

 

	  	or supervision ICE may from time to time become subject in order to comply with its
obligations to such regulator.
	 
	3.5  	LCH shall at all times be entitled to provide services in relation to trades executed on
other trading platforms or trading systems operated otherwise than by ICE in respect of
energy, related products, or without limitation, other products.
	 
	3.6  	LCH agrees that [***].
	 
	3.7  	CH shall apply the LCH General Policy to the allocation of LCH’s staff and resources in the
performance of the Services. For the purposes of this subparagraph 3.7, ICE and the IPE shall
be treated as a single unit.

LCH Membership, Documentation and related matters

	4.1  	Any Participant which is not an LCH Member will be eligible to become an LCH EnClear Clearing
Member, subject to such entry and other requirements as may be set out in the Regulations.
	 
	4.2  	In establishing or amending any requirements under the Regulations that are applicable to the
Services, including but not limited to those requirements applicable to LCH EnClear Clearing
Members or Participants or applicants for Participant status applying to become LCH EnClear
Clearing Members, LCH will adhere to LCH General Policy. LCH will consult with ICE with regard
to any amendment to existing entry or other requirements which might have a disproportionate
adverse effect on LCH EnClear Clearing Members or on Participants or applicants for
Participant status applying to become LCH EnClear Clearing Members, will give due
consideration to the views of ICE
	 
	

	***  	Certain information on this page has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

Page 8

 

	   	and will only make such amendments as are consistent with
LCH General Policy.
	 
	4.3  	ICE agrees to amend the ICE Documentation to provide that a Participant shall only be
eligible to submit orders or other trade particulars (“Trading Platform Particulars”) in
Eligible Derivative Products with a view to the execution, directly or indirectly, of
Designated Trades or to be party to any Designated Trade if that Participant is: –
	 
	4.3.1  	an LCH EnClear Clearing Member; or
	 
	4.3.2  	a Third Party Clearing Participant; or
	 
	4.3.3  	the Customer of an EnClear Clearing Member or Customer of a Third Party Clearing
Participant; or
	 
	4.3.4  	party to some other agreement with an LCH EnClear Clearing Member and such other persons and
LCH, as may be agreed from time to time between the Parties
	 
	   	providing always that only a Participant which is an LCH EnClear Clearing Member or Third
Party Clearing Participant may be party to any Designated Trade.
	 
	4.4.1  	Subject to sub-paragraph 4.11, if LCH declines to give an LCH Clearing Approval to an
LCH Member, it shall notify ICE as soon as reasonably practicable, identifying the reasons
why.
	 
	4.4.2  	Subject to sub-paragraph 4.11, if LCH declines to enter into a Clearing Membership Agreement
with a Participant or an applicant for Participant status on ICE, it shall notify ICE as soon
as reasonably practicable. Insofar as it is reasonably practicable so to do, LCH shall
identify to ICE the reasons why it has so declined but only insofar as such reasons relate to
the provision of the Services to such Participant or applicant.

Page 9

 

	4.4.3  	LCH shall act in good faith and in accordance with the Regulations and adhere to LCH General
Policy in declining to give an LCH Clearing Approval to an LCH Member, or in declining to
enter into a Clearing Membership Agreement with a Participant or applicant for Participant
status.
	 
	4.5  	Without prejudice to LCH’s powers under the Default Rules, LCH shall give ICE not less than
one Business Day’s prior notice of its intention to withdraw an LCH Clearing Approval from any
LCH EnClear Clearing Member and shall identify the reasons for that withdrawal, providing
always that:
	 
	4.5.1  	LCH shall act in good faith and in accordance with the Regulations and adhere to LCH General
Policy in withdrawing any such LCH Clearing Approval; and
	 
	4.5.2  	Nothing in this sub-paragraph 4.5 shall require LCH to give such notice or adhere to LCH
General Policy when LCH exercises or is contemplating the exercise of its powers under the
Default Rules.
	 
	4.6  	Without prejudice to clause 4.5, LCH shall notify ICE as soon as reasonably practicable of:
	 
	4.6.1  	the termination of any Clearing Membership Agreement where the LCH Member was, immediately
before such termination, an LCH EnClear Clearing Member;
	 
	4.6.2  	the termination of any ICE Third Party Clearing Agreement or other agreement to which clause
4.3.4 refers.
	 
	4.7  	ICE may at any time introduce new categories or classes of participation or modify or alter
existing rights, privileges or obligations of an existing category or class of participation
with regard to the Trading System, provided that where such introduction, alteration or
modification is reasonably likely materially to affect the provision of the Services by LCH,
ICE shall as soon as reasonably practicable, advise LCH of its proposal to make such
introduction, alteration or modification, and shall thereafter consult with LCH. ICE shall

Page 10

 

	   	give to LCH no less than ten (10) Business Days written notice of its intention to make such
introduction or modification or alteration.
	 
	4.8  	In the event that LCH reasonably determines that any introduction, modification or alteration
as described in sub-paragraph 4.7 above will materially adversely affect its ability to
provide the Services in accordance with this Agreement and the Regulations or is reasonably
likely to affect its risk adversely, LCH may, by giving written notice to ICE within ten (10)
Business Days after the expiry of the notice period referred to in sub-paragraph 4.7 above,
decline to register any Designated Trades presented by or having any connection to any
Participant in any such new category or class of participation or in respect of whose class of
participation existing rights, privileges or obligations are about to be or have been modified
or altered.
	 
	4.9  	Neither party shall make any public announcement regarding any intention on the part of ICE
to take any action as described in sub-paragraph 4.7 above unless such announcement shall have
been agreed by both ICE and LCH.
	 
	4.10.1  	A Third Party Clearing Participant shall not be entitled to enter into any LCH EnClear
Contract with LCH and ICE acknowledges and agrees that only LCH EnClear Clearing Members shall
be entitled to enter into LCH EnClear Contracts with LCH in respect of LCH EnClear
Transactions. In all dealings between LCH EnClear Clearing Members and LCH (including those
originated by Third Party
Clearing Participants) LCH EnClear Clearing Members shall act as principal and ICE shall
make provision in the ICE Documentation that all contracts entered into between those of
its Participants who are LCH EnClear Clearing Members and LCH shall be made by each such
person as principal and not as agent at any time.
	 
	4.10.2  	For the avoidance of doubt, the Parties agree that the obligations of ICE pursuant to
sub-paragraph 4.10.1 shall be limited to ensuring that the provisions of sub-paragraph 4.10.1
shall be materially replicated in the ICE Documentation and that nothing in the ICE
Documentation or other written

Page 11

 

	   	material published in electronic, paper or oral form by or on
behalf of ICE shall contradict the statements made in the provisions of sub-paragraph 4.10.1.
	 
	4.11  	Nothing in this paragraph 4 shall require either party to provide any information or data to
the other which may reasonably be expected to breach any obligation of confidentiality owed by
the first party to any person.

Provision of Transaction Data

	5.1  	No later than 10 p.m. London time on each Clearing Day ICE shall provide LCH with a full,
complete and accurate account (in such form and with such content as shall be agreed from time
to time by the Parties) of the particulars of all LCH EnClear Transactions arising in the
course of that Clearing Day. The Parties agree that LCH may register any LCH EnClear Contracts
arising therefrom in accordance with such particulars notwithstanding that any such
particulars may be inconsistent, inaccurate, incomplete or corrupted.
	 
	5.2  	Particulars of any LCH EnClear Transaction which are presented by or on behalf of ICE for
registration by LCH, pursuant to sub-paragraph 5.1 or otherwise, shall be deemed to be
presented by the LCH EnClear Clearing Members in whose names they are presented to LCH.
	 
	5.3  	LCH shall be under no duty or obligation whatsoever to verify the accuracy or completeness of
such particulars referred to in this paragraph 5 and presented to LCH pursuant to this
paragraph 5 or otherwise.
	 
	5.4  	If requested by ICE, LCH shall provide to ICE a full, complete and accurate record of all LCH
EnClear Contracts registered by LCH on the preceding Clearing Day in such form as may be
agreed from time to time by the Parties.

Registration of LCH EnClear Contracts

	6.1  	LCH undertakes that it will not decline to register an LCH EnClear Transaction otherwise than
in accordance with this Agreement, the Regulations or as required by law or the order of any
United Kingdom court or

Page 12

 

	   	regulatory authority having jurisdiction over it, or in the
circumstances described in sub-paragraph 6.3 below.
	 
	6.2  	If LCH declines to register a Designated Trade it shall promptly notify ICE in accordance
with such procedures as may be agreed between the Parties and, wherever practicable, LCH shall
identify the reasons for declining to register such trade.
	 
	6.3  	If as a result of any malfunction, breakdown or other failure in LCH’s computer systems or in
the electronic communication link between ICE and LCH or for any other reason there is a delay
of which LCH is aware generally in the registration by LCH of LCH EnClear Transactions, LCH
shall notify ICE as soon as reasonably practicable.

Eligible Derivative Products

	7.1  	As of the Commencement Date, the Eligible Derivative Products shall be the ICE Products
described in Annex 3 hereto on such terms as are set out therein (“the Initial Derivative
Products”). In accordance with the procedure set out in sub-paragraph 7.2 below, ICE may
nominate additional ICE Products to be Eligible Derivative Products from time to time, subject
always to LCH’s rights, in accordance with sub-paragraphs 7.3 and 7.7 below, to decline to
provide the Services in respect of any such ICE Products so nominated.
	 
	7.2  	In the event that ICE wishes to nominate an additional ICE Product (“a New Product”) to be an
Eligible Derivative Product, subject to sub-paragraph 7.7 below, it shall give notice in
writing substantially in the form of the example set forth in Annex 2 hereto (“New Product
Notice”) to LCH. Any such New Product Notice shall
be served on LCH in accordance with the provisions of Schedule 1, hereto, and
shall contain details of the ICE Product, including but not limited to the name
of the ICE Product as traded on the Trading System, reasonable estimates of the
number and volume of trades in respect of which LCH is likely to be asked to
provide the Services, price history (if available) or appropriate correlations,
contract terms, Product Group to which such New

Page 13

 

	   	Product is proposed to be
allocated, details of any regulatory issues which are reasonably likely to
arise in the United States in respect of the provision of the Services by LCH
for that New Product, and the date proposed by ICE for the commencement of the
provision of the Services in respect of that New Product.
	 
	7.3.1  	Subject to sub-paragraph 7.3.2 below, LCH
shall notify ICE in writing (an “LCH New
Product Reply Notice”), as soon as
reasonably practicable and in any event
within fifteen (15) Business Days
(including the date of service of such
notice) of its receipt of a New Product
Notice, as to whether, in principle, LCH
expects to be able to provide the Services
in respect of the New Product described in
such Notice, the date by which it expects
to be able to commence to provide such
Services (the “LCH Proposed New Product
Commencement Date”), and, providing ICE
shall have made available to LCH such data
as LCH may reasonably have requested, an
outline of the margin requirements and a
reasonable estimate of Clearing Fees (or
alternatively a date by which LCH agrees
to provide to ICE such an estimate of
Clearing Fees) expected to be applicable
to such ICE Product. ICE acknowledges and
agrees that the final decision by LCH
regarding whether or not it can provide
the Services in respect of any such New
Product is dependent upon approval by the
LCH Risk Committee (or any successor of
that committee) and/or the Board of LCH.
	 
	7.3.2  	LCH may decline to provide the Services in respect of a New Product described a New Product
Notice and served in accordance with sub-paragraph 7.2 above only for any one or more of the
following reasons: –
	 
	7.3.2.1  	LCH reasonably determines that the provision of the Services in respect of such New Product
is reasonably likely to expose LCH to any material adverse risk; or
	 
	7.3.2.2  	LCH reasonably determines that it would be unlawful or in breach of any applicable
regulation or direction of the FSA, CFTC or any regulatory body to whose jurisdiction or
supervision LCH is subject at the time, to provide the

Page 14

 

	   	Services in respect of the ICE Product
described in the New Product Notice; or
	 
	7.3.2.3  	LCH, after making reasonable inquiries, forms the conclusion that it is not reasonably
likely to be able to conclude all necessary arrangements for the settlement of LCH EnClear
Contracts arising in respect of Designated Trades in such New Product, or, where appropriate,
for delivery of any underlying commodity, or the LCH systems are not reasonably capable of
processing or settling such LCH EnClear Contracts; or
	 
	7.3.2.4  	the Parties are unable, after conducting negotiations in good faith, to reach agreement
about responsibility for any costs likely to be incurred by LCH in respect of providing the
Services for that ICE Product.
	 
	7.4  	In the event that pursuant to sub-paragraph 7.3 above, LCH declines to provide the Services
in respect of a New Product, it shall serve a written notice on ICE in accordance with the
provisions of Schedule 1. Such notice shall be served on ICE as soon as practicable and no
later than fifteen (15) days following receipt by LCH of the relevant New Product Notice
referred to in sub-paragraph 7.1 above. Such notice from LCH shall set out the reasons for
LCH’s determination and, if sub-paragraph 7.3.2.1 is applicable, the nature of the relevant
risk/s and proposals for how the Parties might work together to reduce such risks. The Parties
agree that they will use all reasonable endeavours to work together thereafter in good faith,
providing each other with such information and data, and, in the case of ICE, making such
changes to the New Product or the terms on which it is traded, as may be reasonably necessary
in order to reduce such risks to levels acceptable to LCH, and/or remove any relevant
impediment of a legal or regulatory nature, and/or resolve any relevant difficulties with
regard to settlement by LCH of LCH EnClear Contracts in respect of such New Product or the
delivery of any underlying
commodity and/or resolve any systems issues in order to render such New Product
acceptable to LCH.

Page 15

 

	7.5  	Notwithstanding anything to the contrary in this Agreement, ICE shall be entitled to make
other arrangements with a third party for the clearance and settlement of any trades (and
services related thereto) in respect of a New Product described in a New Product Notice served
on LCH in accordance with sub-paragraph 7.2 above, and LCH shall be relieved of any obligation
to provide the Services in respect of that New Product if (i) LCH declines, pursuant to
sub-paragraph 7.3.2 above, to provide the Services in respect of such ICE Product; or (ii) the
LCH New Product Reply Notice specifies an LCH Proposed New Product Commencement Date, being a
date which ICE, in its reasonable judgment and acting in good faith, determines to be
commercially unacceptable, providing always that any LCH Proposed New Product Commencement
Date which is within a period of thirty (30) days from the date upon which the LCH New Product
Reply notice is served upon ICE (exclusive of the date of service) shall not be determined by
ICE to be commercially unacceptable; or (iii) LCH is unable for whatsoever reason, during the
period between service of the LCH New Product Reply Notice and the LCH Proposed New Product
Commencement Date to meet any milestone as shall be agreed between the Parties in the project
plan for that New Product; or (iv) LCH is unable for whatsoever reason during the period
mentioned in (iii) above, to make the necessary arrangements for the settlement of LCH EnClear
Contracts in respect of such New Product, or where appropriate, for delivery of any underlying
commodity.
	 
	7.6  	For the avoidance of doubt, LCH SHALL HAVE NO LIABILITY TO ICE IN THE EVENT THAT IT EXERCISES
ITS RIGHT PURSUANT TO SUB-PARAGRAPH 7.3.2 ABOVE TO DECLINE TO PROVIDE THE SERVICES IN RESPECT
OF A NEW PRODUCT OR IN THE EVENT THAT ICE EXERCISES ITS RIGHTS TO MAKE OTHER ARRANGEMENTS WITH
A THIRD PARTY FOR THE CLEARANCE AND SETTLEMENT OF ANY TRADES IN RESPECT OF A NEW PRODUCT
PURSUANT TO SUB-PARAGRAPH 7.5 OR SUB-PARAGRAPH 7.13.

Page 16

 

	7.7  	No more than five (5) New Product Notices may be open at any time. For the purposes of this
provision a New Product Notice shall be open from the time when it is served upon LCH until
such time as LCH accepts or declines to provide the Services in respect of the New Product to
which it refers in accordance with sub-paragraph 7.3.1 or sub-paragraph 7.3.2. For purposes of
this paragraph 7, the Parties may agree that, where an ICE Product described in a New Product
Notice (for these purposes “Similar New Product Notice”) is substantially the same with regard
to its underlying commodity, reference pricing, and manner of settlement and delivery (where
applicable) as another ICE Product described another open New Product Notice which has been
submitted or an Eligible Derivative Product, the Similar New Product Notice shall not be taken
into consideration for the purposes of calculating the number of New Product Notices open at
any time.
	 
	7.8  	LCH agrees that upon signing this Agreement and from time to time thereafter ICE may nominate
an appropriately qualified and experienced person with knowledge of the ICE Products for
membership of the Risk Committee of LCH (or any successor committee), and, subject to that
person being reasonably acceptable to LCH, that person shall be invited by LCH to serve upon
the Risk Committee or any successor committee as soon as practicable following such
nomination. LCH shall not unreasonably withhold its acceptance of any such person so nominated
by ICE. LCH further agrees that upon the formation of an energy product advisory group by LCH,
ICE may be represented at meetings of that group by the person appointed by the IPE (“the IPE
Representative”) to represent the IPE at meetings of that group. In the event that any matter
particular to ICE is to be discussed at any such meeting of such group, and the IPE and ICE
agree that it is not appropriate that the IPE Representative should represent ICE at such
meeting, IPE and ICE may agree that a person nominated by ICE (being a person appropriately
qualified and experienced in the matters to be discussed at such meeting) may attend such
meeting in the place of the IPE Representative. Reference in this sub-clause 7.8 to the energy
product advisory group includes that

Page 17

 

	   	committee or group of persons by whatever name called
which take on the functions of such group or committee.
	 
	7.9  	ICE agrees to provide to LCH no less than ten (10) Business Days written notice to LCH if it
intends to suspend or remove any Eligible Derivative Products trading on the Trading System;
provided, however, that ICE may, in the event of an emergency, suspend or remove any such
Eligible Derivative Product immediately and provide LCH with written notice as soon as
reasonably practicable thereafter.
	 
	7.10  	With respect to any period of notice set out in this paragraph 7, the Parties may agree to a
shorter period of notice on any occasion.
	 
	7.11  	Neither LCH nor ICE shall make any public announcement of the intention to introduce or the
introduction of any new ICE Product as an Eligible Derivative Product prior to such
introduction without the prior written permission of the other party.
	 
	7.12.1  	For the purposes of this sub-paragraph 7.12:-
	 
	   	a “Directly Competing Product” shall mean an oil, gas, power or metal product, which is
available for trading on a Competing Trading System and which is defined in all material
respects in substantially the same terms as (i) an Eligible Derivative Product which is
available for trading through the Trading System at that time, or (ii) a New Product
described in a New Product Notice which has been served on LCH in accordance with the
provisions of sub-paragraph 7.2 above and which has a New Product Commencement Date
agreed with LCH being no later than six (6) calendar months from the date of the New
Product Notice, each such Eligible Derivative Product or New Product being referred to
hereinafter as “the Comparable ICE Product”; and
	 
	   	a “Competing Trading System” shall mean a trading system or exchange operated by a
Competitor; and

Page 18

 

	   	a “Competitor” shall mean an undertaking which is not a parent, subsidiary or affiliate
(direct or indirect) of ICE; and
	 
	   	“Central Counterparty Clearing Service” shall mean a service whereby trades executed on
or through a trading system or exchange and presented to LCH for registration are
discharged and replaced in each case by a pair of new contracts, one between LCH and the
person described as buyer in the trade and the other between LCH and the person
described as seller in that trade; and
	 
	7.12.2  	Subject to sub-paragraph 7.12.3 if, during any Successive Contract Period (as defined in
sub-paragraph 21.1 below), LCH commences to provide a Central Counterparty Clearing Service in
respect of a Directly Competing Product, ICE shall have the right to give no less than twelve
(12) months written notice to LCH of the withdrawal of all Eligible Derivative Products within
the same Product Group as the Comparable ICE Product from the status of Eligible Derivative
Products, and at the end of such notice period ICE shall have the right to utilise the
services of a third party for the clearance and settlement of trades in those ICE Products.
	 
	7.12.3  	The provisions of sub-paragraph 7.12.2 shall not apply in respect of any Directly Competing
Product, whether or not currently available at the date of this Agreement, for which LCH
provides or commences to provide clearing services according to the provisions of any
agreement, arrangement or LCH service existing at the date of this Agreement.
	 
	7.13.1  	For the purposes of this sub-paragraph 7.13.:-
	 
	(i)  	a “Systems Event” shall mean the failure by any computer system utilised by LCH to register
any LCH EnClear Transactions in respect of any Eligible Derivative Product on a total of any
five (5) Clearing Days, or three (3) consecutive Clearing Days, in any Calendar Quarter; and
	 
	(ii)  	a “Calendar Quarter” shall mean either the period from 1 January until 31 March inclusive, or
the period

Page 19

 

	   	from 1 April to 30 June inclusive, or the period from 1 July until 30 September
inclusive or the period from 1 October until 31 December inclusive, in any year.
	 
	7.13.2  	If a Systems Event occurs, ICE may, in accordance with the provisions of Schedule 1, serve a
written notice upon LCH (a “Systems Issue Notice”) setting out in detail the reasons for such
view, the name of the Eligible Derivative Product and the action proposed by ICE.
	 
	7.13.3  	Following the service of a Systems Issue Notice as set out in sub-paragraph 7.13.2 above,
the Parties shall work together in good faith in order to resolve the issue set out in such
System Issue Notice. If, however within a period of one (1) month from the receipt of such
Systems Issue Notice by LCH, the Parties are unable to agree a solution, ICE may give no less
than three (3) months written notice to LCH in accordance with the provisions of Schedule 1
hereto of the withdrawal of any ICE Product specified in that Systems Issue Notice from the
status of Eligible Derivative Product and, at the end of such period of notice ICE shall have
the right to utilise the services of a third party for the clearance and settlement of trades
in that ICE Product.
	 
	7.14  	In the event that, following the service by ICE upon LCH of a New Product Notice:
	 
	7.14.1  	LCH, pursuant to sub-paragraph 7.3.1 above, notifies ICE that it expects to be able to
provide the Services in respect of any New Product described therein;
	 
	7.14.2  	the Parties agree in writing a date for the commencement of the provision of such Services
(the “Launch Date”); and
	 
	7.14.3  	LCH is fully capable of providing the Services in respect of the New Product on the Launch
Date,
	 
	   	ICE shall make such New Product available for trading through the Trading System on the
Launch Date and for twelve (12) weeks thereafter. In the event that ICE does not make
such New Product so available, ICE shall reimburse

Page 20

 

	   	LCH for all reasonable costs and
expenses incurred by LCH in considering and responding to such New Product Notice and in
making preparations for the provision of the Services in respect of such New Product.

Settlement of LCH EnClear Contracts

	8.1  	LCH shall, in consultation with ICE establish in a timely manner such mutually acceptable
arrangements as may be necessary from time to time for the settlement of LCH EnClear Contracts
and, where appropriate, delivery of commodities underlying such LCH EnClear Contracts. Details
of any such settlement arrangements shall be set out in Procedures. Furthermore ICE and LCH
will make such mutually acceptable arrangements with such third parties as may be necessary in
order to effect such settlement and delivery. The Parties agree and acknowledge that for LCH
EnClear Contracts in the Initial Products, settlement shall be effected by means of cash
settlement and no physical delivery of any underlying commodity will be required.
	 
	8.2  	If either ICE or LCH becomes aware of any dispute related to any LCH EnClear Contract it
shall promptly notify the other Party.
	 
	8.3  	LCH and ICE acknowledge that from time to time in the future a dispute may arise between LCH
EnClear Clearing Members who are party to a Designated Trade, LCH EnClear Transaction or any
LCH EnClear Contracts, and ICE agrees that the Regulations may require LCH EnClear Clearing
Members to submit to arbitration, and that the arbitration proceedings will be conducted in
accordance with LCH requirements, as agreed between LCH and ICE, at no expense to LCH or ICE
and with no involvement of LCH or ICE.
	 
	8.4  	ICE agrees that, in the event that an Eligible Derivative Product is proposed by ICE in a New
Product Notice, as defined in sub-paragraph 7.2 above, and in respect of which mutually
acceptable arrangements for settlement and delivery are made between ICE and LCH in accordance
with sub-paragraph 8.1 above, ICE and LCH shall enter into discussions in good faith with a
view to agreeing suitable arrangements for the conduct of the arbitration

Page 21

 

	   	proceedings in
respect of any dispute between parties to a Designated Trade or any dispute involving any
person who input Trading Platform Particulars in respect of such Designated Trade with regard
to settlement or delivery of the LCH EnClear Contract resulting therefrom and for the
inclusion in the ICE Documentation of provisions requiring participation by such persons in
those arbitration proceedings.

Default

	9.1  	If at any time either LCH or ICE suspects or anticipates that an LCH EnClear Clearing Member
has become or is likely to become unable to perform its obligations in respect of any LCH
EnClear Contract and it considers that the circumstances might lead to LCH serving a Default
Notice, then that Party shall, unless precluded by law, forthwith notify the other Party of
the circumstances in accordance with such procedures as may be agreed between the Parties;
provided that neither Party shall owe the other any duty to monitor any LCH EnClear Clearing
Member.
	 
	9.2  	Subject always to sub-paragraph 9.3, nothing in sub-paragraph 9.1 shall require LCH to obtain
the approval of ICE prior to doing any act or thing in accordance with the provisions of its
Default Rules.
	 
	9.3  	LCH shall give ICE not less than 30 minutes’ prior notice, or such shorter notice as the
Parties may agree in relation to any particular case, of any intention to issue a Default
Notice in respect of any LCH EnClear Clearing Member. Such notice shall be given in accordance
with the provisions of Schedule 1 hereto.
	 
	9.4  	ICE shall promptly upon receipt of notice under sub-paragraph 9.3 above take such action as
may be necessary in the circumstances to prevent that LCH EnClear Clearing Member, and any
Third Party Clearing Participant who is party to any subsisting ICE Third Party Clearing
Agreement with that LCH EnClear Clearing Member and LCH, and any Customer of such LCH EnClear
Clearing Member or Third Party Clearing Participant and who is entitled to input Trading
Platform Particulars which might give rise to a Designated 

Page 22

 

	   	Trade, from executing or entering
into the Trading System Designated Trades or inputting such Trading Platform Particulars and
will continue so to do until such time as LCH may notify ICE to the contrary.
	 
	9.5  	LCH shall, in accordance with the provisions of Schedule 1 hereto, promptly send to ICE a
copy of any Default Notice issued in respect of any LCH EnClear Clearing Member as soon as the
notice is issued under LCH’s Default Rules.
	 
	9.6  	ICE shall notify LCH as soon as practicable and in any event no later than thirty (30)
minutes after such suspension or termination takes effect of any intention to suspend or
terminate its contractual relationship with any Participant that is an LCH EnClear Clearing
Member or a Third Party Clearing Participant or a Customer of an LCH EnClear Clearing Member
or a Third Party Clearing Participant and who is entitled to submit Trading Platform
Particulars in respect of any Designated Trade or to enter Designated Trades into the Trading
System, the reason/s for such suspension or termination, the date and time upon which such
suspension or termination takes effect and, in the event of a suspension, the period of such
suspension.
	 
	9.7  	ICE acknowledges and agrees that upon the service of a Default Notice on an LCH EnClear
Clearing Member by LCH under its Regulations any unsettled LCH EnClear Contract arising from a
Designated Trade shall be dealt with in accordance with the Default Rules of LCH.
	 
	9.8  	If either party exercises any powers it may have, in the case of LCH, under its Default Rules
in relation to an LCH EnClear Clearing Member or, in the case of ICE, to terminate or suspend
any contractual relationship with a Participant which is either an LCH EnClear Clearing Member
or a Third Party Clearing Participant, the Parties shall co-operate and share information to
the extent necessary to enable LCH to discharge its functions under the Regulations (including
but not limited to the Default Rules).
	 
	9.9  	ICE agrees to operate and maintain in force powers and procedures to enable it to suspend or
terminate the ability of any Participant (“the Relevant

Page 23

 

	   	Participant”) to submit Trading
Platform Particulars which might give rise to Designated Trades on the Trading System and to
enter Designated Trades into the Trading System in the event of the Default of the Relevant
Participant (if the Relevant Participant is an LCH EnClear Clearing Member) or in the event of
the Default of the LCH EnClear Clearing Member with whom the Relevant Participant, being a
Third Party Clearing Participant, maintains an ICE Third Party Clearing Agreement, or in the
event of the Default of the LCH EnClear Clearing Member who is party to an ICE Third
Party Clearing Agreement with a Participant of whom the Relevant Participant is a
Customer.

Margin

	10.1  	LCH shall, after consultation with ICE and such LCH EnClear Clearing Members as LCH decides,
and having given due consideration to any views expressed by ICE and such LCH EnClear Clearing
Members in such consultation determine an appropriate algorithm for use by LCH in the
calculation of initial margin to be provided by LCH EnClear Clearing Members in respect of LCH
EnClear Contracts. It is agreed that London SPAN, as used for IPE products, is to be used.
	 
	10.2  	LCH shall in consultation with ICE, establish, review and adjust parameters used in the
algorithm or algorithms referred to in sub-paragraph 10.1 above. The Parties agree that in the
event of any disagreement between them concerning the appropriateness of such parameters, the
determination of LCH shall prevail, providing that LCH shall adhere to LCH General Policy in
making such determination.
	 
	10.3  	LCH shall, following consultation with ICE and such LCH EnClear Clearing Members as ICE and
LCH shall together determine, and having given consideration to the views expressed by ICE and
those LCH EnClear Clearing Members, determine whether variation margin shall be called and
paid in cash or a contingent variation method shall be employed, in which LCH EnClear Clearing
Members may cover negative variation margin in

Page 24

 

	   	collateral, and LCH EnClear Clearing Members
with positive variation margin may receive credits but not daily cash payments.
	 
	10.4  	LCH may at any time, after consultation with ICE and having given due consideration to any
views expressed by ICE in such consultation, alter the algorithm used to calculate initial
margin to be provided by LCH EnClear Clearing Members in respect of LCH EnClear Contracts, if
LCH reasonably believes that such action is necessary or appropriate in order properly to
manage LCH’s risk. LCH shall notify ICE of such changes, wherever practicable, prior to making
such changes. The Parties agree that in the event of any disagreement between them
about the appropriateness or other aspect of such alteration the determination of LCH
shall prevail.
	 
	10.5  	Subject to sub-paragraph 10.6 below, if either of the Parties proposes the adoption of
another scenario-based margining system that employs contract level margin rates and
inter-contract margin offsets to replace London SPAN the Parties shall consult on the
proposal. Following such consultation LCH may adopt such a replacement margining system.
	 
	10.6  	If either Party proposes, within the framework of London SPAN or of a replacement
scenario-based margining system adopted pursuant to sub-paragraph 10.5 above, to permit margin
offsets between LCH EnClear Contracts whether individually or in aggregate and: (i) contracts
in other Energy Products cleared by LCH; or (ii) contracts in other Energy Products not
cleared by LCH, the Parties shall consult and the LCH may make the change in question only
with ICE’s prior written consent.
	 
	10.7  	LCH agrees that, if so requested by an LCH EnClear Clearing Member it will make appropriate
arrangements to enable:-
	 
	10.7.1  	any cash margin; and/or
	 
	10.7.2  	insofar as LCH is permitted to do so by any relevant law or regulatory requirement or such
facilities as are then currently available for the transfer and delivery of the relevant
securities, any cover for margin provided by that

Page 25

 

	   	LCH EnClear Clearing Member in respect of
LCH EnClear Contracts to which it is party, to be held in cash or securities accounts held by
LCH (or any nominee of LCH) in the United States.
	 
	10.8  	Subject to sub-paragraphs 10.5 and 10.6 above, the Parties agree to use their reasonable
commercial endeavours to develop appropriate arrangements to enable margin off-sets regarding
positions held by LCH EnClear Clearing Members in respect of LCH EnClear Contracts with
certain other trades effected on certain other exchanges (the identity of which is to be
agreed between the Parties) and registered by LCH. LCH agrees not to introduce any such margin
off-sets without the express written consent of ICE.
	 
	10.9  	LCH agrees that without the prior written consent of ICE it shall not permit the close-out of
any LCH EnClear Contract arising from a Designated Trade by means of any contract registered
by LCH which was not executed or entered through the Trading System nor will it permit any
such contract to be closed out by means of an LCH EnClear Contract arising from a Designated
Trade, except that LCH may do either or both of these things following the issue of a Default
Notice in respect of any LCH EnClear Clearing Member. This sub-paragraph 10.9 is to survive
termination of this Agreement.

Amendments to the Regulations and to ICE Documentation

	11.1  	Subject to LCH General Policy, LCH will make, or use its reasonable endeavours to procure
agreement to the making of, all amendments to the Regulations as may be necessary to
facilitate the provision of the Services. LCH will use its best endeavours to produce draft
Regulations and Procedures that will enable LCH to provide the Services and are in conformity
with this Agreement by the Commencement Date.
	 
	11.2  	LCH may at any time amend the Regulations in accordance with the provisions of the
Regulations and LCH General Policy, providing that LCH shall consult with ICE and give due
consideration to any views expressed by ICE during such consultation, regarding any proposed
amendments to the

Page 26

 

	   	extent that such amendment relates to the provision by LCH of the Services
or such amendment might reasonably be expected to have a disproportionate adverse effect on
LCH EnClear Clearing Members generally.
	 
	11.3  	ICE agrees that it will not knowingly maintain or introduce any requirement of its
Participants in the ICE Documentation or other documentation binding upon its Participants
which is reasonably likely to have a material adverse effect on LCH’s ability properly and
fully to provide the Services in accordance with the Regulations and this Agreement without
the prior written consent of LCH.
	 
	11.4  	If either party becomes aware that any provision of the ICE Documentation is materially
inconsistent with any provision of the Regulations, it shall notify the other
as soon as reasonably practicable and the Parties shall co-operate to make such
amendments as they may agree in order to remove that inconsistency.
	 
	11.5  	Each Party acknowledges that the other may make any amendment to the ICE Documentation or
Regulations, as the case may be, if required to do so in order to comply with law or its
obligations to or any valid requirement of any regulator with jurisdiction over it or
authority to regulate its business activities.
	 
	11.6  	LCH shall supply ICE with a copy of its form of the LCH Clearing Approval and ICE Third Party
Clearing Agreement and promptly notify ICE of any amendments thereto as they occur from time
to time. In respect of those parts of those agreements which relate to the provision of the
Services, amendments to such provisions will only be made by LCH to the extent that such
amendments are consistent with LCH General Policy.
	 
	11.7  	ICE shall provide LCH with a copy of its ICE Documentation and, without prejudice to the
requirements of sub-paragraph 11.3 above promptly notify LCH of any proposed amendments
thereto that may reasonably be expected materially to affect the rights and obligations of LCH
pursuant to this Agreement or otherwise.

Page 27

 

	11.8  	ICE shall notify LCH of the name, contact address, contact person, telephone and email (if
applicable) of such Participants authorised by it from time to time to enter into trades in
respect of which the Services are to be provided, and LCH shall notify ICE of the same
particulars of those LCH Members who receive an LCH Clearing Approval and are thereby
authorised by LCH to receive the Services, and of Third Party Clearing Participants who have
entered into ICE Third Party Clearing Agreements.
	 
	11.9  	Each party shall include the other in its distribution list so that –
	 
	(a)  	ICE will receive a copy of any guidance, circulars and other notices issued by LCH to LCH
EnClear Clearing Members in respect of the Services; and
	 
	(b)  	LCH will receive a copy of any guidance, circulars or other notices issued to Participants by
ICE relating to Eligible Derivative Products and the Services.
	 
	11.10  	LCH agrees that it will use all reasonable commercial endeavours to make such amendments as
may be reasonably necessary to the Regulations and ICE Documentation respectively in order to
facilitate the provision of the Services with respect to Off Market Trades with effect from 15
April 2003 or such later date as the Parties may agree.
	 
	11.11  	ICE agrees to make such amendments to the ICE Documentation as LCH may reasonably require in
order to facilitate the provision of the Services with respect to Off Market Trades with
effect from 1 March 2003 or such later date as the Parties may agree.

System Interface

	12.1  	ICE will, as soon as reasonably practicable, and in any event no later than the Commencement
Date, design and develop to agreed specifications (or procure that the same be done) an
interface between its Trading System and the relevant system/s of LCH for the purpose of
transmitting trade data and prices to LCH in respect of the Initial Products. LCH shall
provide all commercially reasonable co-operation to ICE and such other persons as may be
involved in order to facilitate the development of such interface. Such

Page 28

 

	   	interface shall be
fully operational no later than the Commencement Date. IN THE EVENT THAT AND DURING ANY PERIOD
WHEN SUCH INTERFACE IS NOT ADEQUATELY OPERATIONAL, LCH SHALL BE RELIEVED OF ITS OBLIGATIONS
UNDER THIS AGREEMENT TO PROVIDE THE SERVICES DURING SUCH PERIOD. LCH AND ICE SHALL, DURING
SUCH PERIOD, WORK TOGETHER TO AGREE ALTERNATIVE MEASURES FOR THE PROVISION OF THE SERVICES. To
the extent that it is necessary in order materially to meet the batching and registration
procedures of LCH currently in place for IPE, ICE shall put in place by the Commencement Date
adequate and fully operational mechanisms to enable it to hold data relating to Designated
Trades overnight for transmission to LCH for registration the next Clearing Day. LCH
acknowledges that ICE owns and will retain all intellectual property and related rights to the
system interfaces developed by ICE pursuant to this clause.
	 
	12.2  	Each Party agrees to consult with the other in respect of any proposal by that Party to
change or modify any direct or indirect computer interfaces between the Parties which may
materially affect its ability or that of the other Party to perform its obligations under this
Agreement.
	 
	12.3  	LCH agrees that:
	 
	(i)  	it will consult with ICE in the on-going development of its IT strategy insofar as the same
may affect the provision of the Services, including in relation to any successor system to the
CFS clearing processing system; and
	 
	(ii)  	it will, at ICE’s election, make available to ICE as part of the Services such elements of
its Clearing 21 system (or any other clearing processing system which it may develop) as it
may from time to time make available to the IPE and other exchanges (including, for the
avoidance of doubt, members of the Euronext Group).

Page 29

 

Record Keeping and information

	13.1  	ICE undertakes to keep adequate records in respect of Designated Trades to enable LCH to
establish a full audit trail of all such Designated Trades including details of each
Designated Trade, date and time it was entered into, Participants party to such Designated
Trades, and details of persons who submitted Trading Platform Particulars in respect of such
Designated Trades.
	 
	13.2  	LCH undertakes to keep adequate records in respect of LCH EnClear Contracts to enable ICE to
establish a full audit trail of all LCH EnClear Contracts including details of each LCH
EnClear Contract and LCH EnClear Clearing Members to that LCH EnClear Contract, and the date
and time of each LCH EnClear Contract.
	 
	13.3  	Any records which are required to be maintained under this paragraph 13 may be on paper, on
microfiche or in computerised or other electronic form and shall be maintained for a period of
at least six years or, such other longer period as may be required by applicable law or
regulation or as the Parties may agree.
	 
	13.4  	Each Party shall upon reasonable notice provide the other Party with a copy of any records
which are required to be maintained by it under this paragraph 13.
	 
	13.5  	LCH undertakes to procure from LCH Members and ICE undertakes to procure from those of its
Participants that are eligible to be party to Designated Trades or to submit Trading Platform
Particulars in respect of Designated Trades, all waivers of any rights to secrecy or
confidentiality which it requires to enable it to perform its obligations under this
Agreement.

Charges, costs and expenses

	14.1  	For the period of one (1) year from the Commencement Date the clearing fee chargeable by LCH
to a Clearing Member in respect of its side of an LCH EnClear Contract one of the Initial
Products shall be as determined in writing between the Parties.

Page 30

 

	14.2  	LCH shall not levy any additional membership fee upon any person who is an LCH Member at the
Commencement Date (“Existing Member”) in respect of any decision by LCH to permit that person
to receive the Services. In calculating and adopting membership fees applicable to persons
wishing to receive the Services, other than Existing Members, insofar as the proposed
membership fee relates to the provision of the Services, LCH shall consult with ICE and shall
give due consideration to any views expressed by ICE during that consultation, and will act
consistently with LCH General Policy.
	 
	14.3  	LCH may collect Clearing Fees from LCH EnClear Clearing Members in such manner and form as is
set out in the Regulations. LCH may also collect (by such manner as may be agreed between LCH
and ICE) from such LCH EnClear Clearing Members such ICE Fees in respect of each such
Designated Trade as may be agreed from time to time between LCH and ICE. Where such ICE Fees
are collected by LCH it shall provide to ICE, no later than seven (7) business days after the
end of each month, a statement showing the amount collected in such detail as may be agreed’
between LCH and ICE and shall account to ICE for such ICE Fees in such manner as the Parties
may agree.
	 
	14.4  	For the purposes of this paragraph 14, “Clearing Fees” shall mean fees charged by LCH to LCH
EnClear Clearing Members in respect of LCH EnClear Contracts and “ICE Fees” shall mean fees
charged by ICE to Participants in respect of Designated Trades.
	 
	14.5  	Except with the prior agreement of ICE, LCH agrees that:
	 
	14.5.1  	No increase in Clearing Fees payable by LCH EnClear Clearing Members in respect of
Designated Trades in those ICE Products which are Eligible Derivative Products on the
Effective Date shall be implemented during the Fee Moratorium Period, nor shall any new fee or
charge be payable by LCH EnClear Clearing Members in respect of such Designated Trades during
such period; and

Page 31

 

	14.5.2  	where, pursuant to the procedure described in paragraph 7 above a New Product becomes an
Eligible Derivative Product during the Fee Moratorium Period, and a Clearing Fee payable by
LCH EnClear Clearing Members is set by LCH in respect of Designated Trades in such New
Product, no increase in such Clearing Fee shall be implemented during the Fee Moratorium
Period.

Confidentiality

	15.1  	Each of the Parties shall -
	 
	(a)  	keep confidential the terms of this Agreement and all information, whether in written or any
other form, which has been disclosed to it by or on behalf of the other party in confidence or
which by its nature ought to be regarded as confidential (including, without limitation, any
business information in respect of the other Party which is not directly applicable or
relevant to the Services); and
	 
	(b)  	procure that its officers, employees, agents and representatives keep secret and treat as
confidential all such documentation and information.
	 
	15.2  	Sub-paragraph 15.1 does not apply to information -
	 
	(a)  	which shall after the date of this Agreement become published or otherwise generally
available to the public, except in consequence of a willful or negligent act
or omission by the other Party to this Agreement in contravention of the obligations in
sub-paragraph 15.1;
	 
	(b)  	to the extent made available to the recipient Party by a third party who is entitled to
divulge such information and who is not under any obligation of confidentiality in respect of
such information to the other Party or who has disclosed such information under an express
statement that it is not confidential;
	 
	(c)  	to the extent required to be disclosed by the Regulations or any applicable law or by the
FSA, CFTC or any other governmental or other regulatory or supervisory body or authority of
competent jurisdiction to whose rules the

Page 32

 

	   	Party making the disclosure is subject, whether or
not having the force of law, provided that the Party disclosing the information shall notify
the other Party of the information to be disclosed (and of the circumstances in which the
disclosure is alleged to be required) as early as reasonably possible before such disclosure
must be made and shall take all reasonable action to avoid and limit such disclosure to any
extent lawfully and reasonably practicable;
	 
	(d)  	which has been independently and lawfully developed by the recipient Party otherwise than in
the course of or pursuant to the exercise of that Party’s rights under this Agreement or the
implementation of this Agreement;
	 
	(e)  	which either Party is required to disclose to a third party in order to perform its
obligations under or pursuant to this Agreement;
	 
	(f)  	disclosed to any applicable tax authority to the extent reasonably required to assist the
settlement of the disclosing Party’s tax affairs or those of any company of which it is a
subsidiary of or any other person under the same control as the disclosing Party; or
	 
	(g)  	which the recipient Party can prove was already lawfully known to it before its receipt from
the disclosing Party.
	 
	15.3  	Without limiting sub-paragraph 15.1, LCH acknowledges and agrees that all trade data relating
to Designated Trades (the “Transaction Data”) are the property of ICE
and its Participants and undertakes that it will use the Transaction Data only for the
purposes set out in sub-paragraphs 15.4, 15.5 and 15.6. ICE grants LCH a royalty-free
non-transferable license to use and copy Transaction Data or any part of them for any
and all of the purposes set out in such sub-paragraphs and to grant
sub-licences on
similar terms for any one or more of such purposes to any sub-contractor or delegate
referred to in sub-paragraph 15.4.
	 
	15.4  	ICE acknowledges that LCH may delegate and/or sub-contract certain functions related to the
provision of the Services (the “Delegated Functions” and agrees that LCH may disclose
Transaction Data to any such delegate or

Page 33

 

	   	sub-contractor and may grant such person or persons a
sub-licence to use and copy Transaction Data, in each case solely to the extent necessary to
enable such person to perform the Delegated Functions provided that LCH shall require such
person/s to keep the Transaction Data confidential.
	 
	15.5  	ICE hereby permits LCH during the term of this Agreement to use Transaction Data for the
following purposes -
	 
	(a)  	as necessary to provide the Services or any part of them;
	 
	(b)  	compiling end of day market statistics for use by LCH, its employees, agents, contractors,
Directors, officers and advisers for the proper business purposes of LCH, provided that such
statistics shall not be made public.
	 
	(c)  	calculation of intra-day and end of day margining obligations and reporting to LCH Members of
the information relied upon in calculating such margin obligations or otherwise for risk
management purposes;
	 
	(d)  	performing its obligations in respect of LCH EnClear Contracts under the Regulations
(including transmitting such details to third parties during the course of performing its
obligations in accordance with the Regulations);
	 
	(e)  	complying with requests from the FSA, CFTC or any other relevant governmental body or other
authority, regulatory body or court of competent jurisdiction or for the purposes of
commencing, or defending, any arbitration or court proceedings; and
	 
	(f)  	providing to any LCH EnClear Clearing Member any information or details regarding any LCH
EnClear Transactions or LCH EnClear Contracts to which that LCH EnClear Clearing Member is
party
	 
	   	providing always that, in addition to the above, LCH may at any time compile and make
publicly available market statistics with the prior express consent in each instance of
ICE.

Page 34

 

	15.6  	ICE shall provide LCH with such data or other information which LCH may be required to
produce from time to time to the FSA, CFTC or any other authority, regulatory body or court
referred to in sub-paragraph 15.5 (e) above.
	 
	15.7  	Each party acknowledges and agrees that the other may disclose Transaction Data to its
employees, legal advisers, insurance brokers and underwriters, auditors and such other
professional advisers as the Parties may agree from time to time provided that such disclosure
is reasonably necessary for the proper performance of that person’s functions and that such
persons shall be required to keep the Transaction Data confidential.

Trade emergencies and market disorder

	16.1  	If at any time either Party suspects or anticipates the development of an excessive position
in respect of an Eligible Derivative Product owned or controlled by the same person, or under
the common control of a group of persons acting together or in concert, or any manipulation,
corner, squeeze or other undesirable situation or practice that might reasonably be expected
to affect or be capable of affecting the market for that product, the risk of LCH, LCH
Members, LCH EnClear Contracts, Participants or any of them, it shall immediately notify the
other Party. For the avoidance of doubt, neither Party shall have any liability to the other
for any omission or failure (other than willful failure or omission) to notify the other Party
pursuant to this sub-paragraph 16.1.
	 
	16.2  	If LCH reasonably determines that the circumstances contemplated by sub-paragraph 16.1 have
arisen, LCH may take such action as it deems reasonably necessary in accordance with the
Regulations in respect of LCH EnClear
Contracts, LCH EnClear Transactions and Designated Trades and the provision of the
Services. Wherever reasonably practicable, LCH shall consult with ICE prior to taking
such action.
	 
	16.3  	If at any time ICE reasonably determines that any of the circumstances referred to in
sub-paragraph 16.1 have arisen and it shall have notified LCH

Page 35

 

	   	accordingly, the Parties agree
that they shall monitor the development of such circumstances and share information about such
circumstances with each other to the extent that each is reasonably able so to do in the light
of its obligations of confidentiality to third parties and other obligations placed upon it by
law, contract or otherwise.

Period for acceptance of LCH EnClear Transactions arising in respect of Designated Trades

	17.1  	It is agreed that for the time being LCH will accept LCH EnClear Transactions arising in
respect of Designated Trades for registration by LCH during at least the same hours London
time in which LCH from time to time accepts eligible FE trades for registration.
	 
	17.2  	In the event that either party wishes to change the period during which LCH EnClear
Transactions arising in respect of Designated Trades will be accepted by LCH for registration,
then the Parties shall work together in good faith with a view to reaching agreement in
respect thereof.

Contract Terms

	18.1  	The contract terms of LCH EnClear Contracts arising from LCH EnClear Transactions in respect
of Designated Trades in ICE Products other than the Initial Products shall be agreed between
LCH and ICE from time to time and shall be set out in the Procedures.
	 
	18.2  	LCH may amend any such contract terms referred to in sub-paragraph 18.1 above, providing that
(with the exception of any such amendment introduced by LCH in any of the circumstances
contemplated by sub-paragraph 16.1 above or in any of the circumstances contemplated by
Regulation 26 of the Regulations, when, in
either such case LCH shall not be bound by the provisions of this sub-paragraph 18.2):
	 
	18.2.1  	LCH may not amend any material provision of those Standard Terms which are applicable to LCH
EnClear contracts arising in respect of Designated Trades executed through the Trading System
and which are set out in any of

Page 36

 

	   	the contract tables in Section 1 of paragraph 3 of Part A to
the Schedule to the LCH EnClear Regulations, or any material provision contained in the
Product Eligibility Criteria for LCH EnClear Eligible Derivative Products for the ICE Trading
System set out in sub-paragraph 1.2 of Part B to the Schedule to the LCH EnClear Regulations
without the prior agreement of ICE;

	18.2.2  	With regard to any other such contract terms, LCH shall firstly consult with ICE and give
due consideration to any views expressed by ICE during such consultation and shall give no
less than five (5) Business days prior notice to ICE of any such amendment.

Default Fund

	19.1  	With respect to the provision of the Services by LCH in respect of the Initial Products, LCH
Members who wish to be LCH EnClear Clearing Members will contribute to the Exchange Fund
Amount (“EFA”) of the Default Fund on terms identical to those on which other LCH Members
contribute to the EFA.
	 
	19.2  	LCH warrants and represents at the date of this Agreement that (i) the EFA is currently set
at three hundred and ten million pounds sterling (£310 million sterling) in aggregate; (ii)
LCH Members’ contributions are determined by their respective volume and initial margin
requirements (as defined by the Regulations) subject to a minimum contribution of one hundred
thousand pounds sterling (£100,000 sterling); and (iii) all contributions to the EFA take the
form of cash-backed indemnities given to LCH, whose current policy at the date of this
Agreement is, subject to the discretion of its board, to hold the cash and pay each LCH Member
interest thereon at a rate equivalent to three (3) month sterling LIBOR plus one percentage
point.

Assignment and delegation

	20.1  	Neither Party shall take any steps to assign, transfer, charge or otherwise encumber with all
or any of its rights or obligations under or pursuant to this Agreement without the prior
written approval of the other Party, such approval not to be unreasonably withheld or delayed
provided, however, that either Party may assign this Agreement to any entity (i) controlling,
controlled by, or

Page 37

 

	   	under common control with such party, or (ii) which succeeds to all or
substantially all of the assets and business of such Party, if:
	 
	20.1.1  	in the case of any such assignment by LCH, the assignee is a Recognised Clearing House under
the Financial Services and Markets Act 2000 or has substantially similar status under
legislation from time to time replacing those Acts, and a Derivatives Clearing Organization
registered with the CFTC.
	 
	20.1.2  	in the case of any such assignment by ICE, the assignee has the appropriate regulatory
authorisation within the United States from the CFTC or other appropriate regulatory body in
the United States or elsewhere in order lawfully to operate the Trading System in the manner
contemplated by this Agreement
	 
	  	and the assignee agrees in writing to assume the assignor’s obligations under, and to be
bound by the provisions of, this Agreement (as it may be amended from time to time).
This Agreement shall be binding upon and shall inure to the benefit of the Parties and
their respective successors and permitted assigns in accordance with its terms.
	 
	20.2  	If either Party proposes to delegate the performance of any of its obligations under or
pursuant to this Agreement it shall consult with the other Party before doing so.
	 
	20.3  	A delegation or sub-contracting by either Party under sub-paragraph 20.2 shall not affect the
obligations of that Party under this Agreement and that Party shall be liable for the acts and
omissions of its delegate as if they were its own but subject to the provisions of this
Agreement including without limitation paragraphs 26 and 27.

Termination

	21.1  	ICE or LCH may terminate this Agreement immediately by notice to the other Party (the
“Defaulting Party”) where:

Page 38

 

	21.1.1  	the Defaulting Party is unable, or admits in writing inability, to pay its debts as
they fall due, suspends making payments on any of its debts or, by reason of actual or
anticipated financial difficulties, commences negotiations with one or more of its creditors
with a view to rescheduling any of its indebtedness;
	 
	21.1.2  	a moratorium is declared in respect of any of the Defaulting Party’s indebtedness;
	 
	21.1.3  	any corporate action, legal proceeding or other procedure or step is taken (or any analogous
procedure or step is taken in any jurisdiction) by or in respect of the Defaulting Party in
relation to:
	 
	(i)  	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution,
administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or
otherwise), other than a solvent liquidation or reorganisation, of any member of the
Defaulting Party’s Group of Companies;
	 
	(ii)  	a composition, assignment or arrangement with any creditor;
	 
	(iii)  	the appointment of a liquidator (other than in respect of a solvent liquidation of any of
the Defaulting Party’s Group of Companies), receiver, administrator, administrative receiver,
compulsory manager or other similar officer in respect of any of the Defaulting Party’s
assets; or
	 
	(iv)  	enforcement of any security over any of the Defaulting Party’s assets;

	 
	  	and such procedure: (i) if instituted against the Defaulting Party by a third party, is not discharged within 10 Business
Days; or (ii) if instituted by the Defaulting Party, then immediately;
	 
	21.1.4  	the Defaulting Party becomes unable to pay its debts as they fall due for the purposes of
Section 123(1) (but excluding sub-Section (1)(a) thereof) of the Insolvency Act 1986;

Page 39

 

	21.1.5  	the Defaulting Party makes any arrangement with or compounds with its creditors or calls a
meeting of its creditors for such purpose;
	 
	21.1.6  	the Defaulting Party enters into any liquidation (other than for the purposes of a voluntary
reconstruction or amalgamation for which the prior written consent of the other Party has been
obtained); or
	 
	21.1.7  	the Defaulting Party has an encumbrancer take possession or a receiver or administrative
receiver or administrator appointed (other than where such possession or appointment is
discharged within 10 Business Days of being effected) of all or any material part of its
assets.
	 
	21.2  	Either Party may terminate this Agreement immediately (or at its option upon such period of
notice as it may specify) by notice to the other Party if the other Party has received notice
that it will cease to be, in the case of LCH, a Derivatives Clearing Organization, or, in the
case of ICE, an Exempt Commercial Market or other market or exchange permitted under the
Commodity Exchange Act; or
	 
	21.3  	At any time after the Effective Date of this Agreement either Party may terminate this
Agreement by the giving to the other Party of 1 year’s written notice expiring at any time.
	 
	21.4  	Upon service of a notice to terminate this Agreement under sub-paragraph 21.3 above, the
Parties shall agree the date upon which LCH shall terminate provision of the Services,
provided that such date shall not be later than the date upon such notices expires, and
neither Party shall unreasonably withhold or delay its agreement to a date proposed by the
other Party. Failing agreement between the Parties, LCH shall terminate provision of the
Services on the date of termination of this Agreement.
	 
	21.5  	Termination of this Agreement shall not release either of the Parties from any other
liability which at the time of termination has already accrued to the other Party, nor affect
in any way the survival of any other right, duty or obligation

Page 40

 

	  	of the Parties which is expressly stated elsewhere in this Agreement to survive such termination.
	 
	21.6  	The provisions of paragraphs 13, 15, 20, 22, 25, 26, 27, 29, 30, 32, 33, 34, 35, 36, 38, and
39 shall survive termination of this Agreement.
	 
	21.7  	A Party shall notify the other in writing of the execution of any agreement for the change of
control of such party (“the Affected Party”). For the purposes of this paragraph a person
shall be taken to have control of the Affected Party if he exercises or is able to exercise or
is entitled to acquire, direct or indirect control over the Affected Party’s affairs and in
particular, but without prejudice to the generality of the foregoing, if he possesses or is
entitled to acquire –
	 
	21.7.1  	the greater part of the share capital or issued share capital of the Affected Party or of
the voting power in the Affected Party’s corporate structure;
	 
	21.7.2  	such part of the issued share capital of the Affected Party as would, if the whole of the
income of that Affected Party were in fact distributed among the participators (without regard
to any rights which he or any other person has as a loan creditor) entitle him to receive the
greater part of the amount so distributed; or
	 
	21.7.3  	such rights as would, in the event of the winding up of the Affected Party or in any other
circumstances, entitle him to receive the greater part of the assets of the Affected Party
which would then be available for distribution among the participators.
	 
	   	Where two or more persons together satisfy any of the conditions set out above in this
sub-paragraph 21.7, they shall be taken as having control of the Affected Party. For the
purposes of this paragraph there shall be attributed to any person any rights or powers
of a nominee for him. At any time within three (3) months from receipt of such a notice
from the Affected Party, the other Party may terminate the Agreement by giving notice in
writing to the Affected Party. The termination of this
Agreement in such circumstances shall be effective no sooner than three (3) months after
the service of such notice.

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	21.8  	Upon termination of this Agreement for any reason, LCH agrees it will use its reasonable
endeavours to co-operate with ICE and any third party who has agreed to provide services
comparable to the Services or any of them in place of LCH (a “Successor Provider”) to ensure a
smooth and orderly transition to the Successor Provider in order to minimise the disruption to
the Trading System and to Participants, and to assist and enable ICE to comply with such
regulatory obligations and duties as it may have. LCH further agrees that, following such
termination, upon written request of all LCH EnClear Clearing Members with open positions at
the date of termination of this Agreement, it will use all reasonable endeavours to co-operate
with ICE to introduce arrangements for the termination at a date to be agreed between those
LCH EnClear Clearing Members and LCH, of all such open LCH EnClear Contracts registered in the
names of those LCH EnClear Clearing Members, and to provide to the Successor Provider such
particulars of those LCH EnClear Contracts as those LCH EnClear Clearing Members may
reasonably request. ICE undertakes to reimburse LCH in respect of reasonable costs and
expenses (including legal costs) properly incurred by LCH in connection with such transition
and the provision of such particulars to a Successor Provider (other than, for the avoidance
of doubt, costs incurred by LCH in connection with ceasing to provide the Services to its
members) except where LCH has terminated this Agreement in breach of this paragraph 21 or
where the Agreement is terminated by ICE due to a fundamental breach of this Agreement by LCH.

Amendment

	22.1  	No variation of this Agreement shall be valid unless it is in writing and signed by or on
behalf of the Parties to it.
	 
	22.2  	Unless expressly agreed, no variation of any provision of this Agreement whether express or
otherwise shall constitute a general waiver of any other provision of this Agreement, nor
shall it affect any rights, obligations or liabilities under or pursuant to this Agreement
which have already accrued up to the date of variation, and the rights and obligations of the Parties under or

Page 42

 

	   	pursuant to this Agreement shall remain in full force and effect, except and only to the extent that they are so varied.

Filings

	23.  	The Parties will each procure that any other registrations, filings and submissions required
under the laws of any jurisdiction are made to the extent that the provisions of such laws
apply to each of them. The Parties will co-ordinate and co-operate with one another in
providing such information and provide each to the other all reasonable assistance as may be
requested in connection with any such registrations, filings and submissions.

Additional assurance

	24.  	Each of the Parties agrees to perform (or procure the performance of) all further acts and
things, and execute and deliver (or procure the execution and delivery of) such further
documents, as may be required by law or as may be reasonably necessary to implement or give
effect to this Agreement and the provision of the Services hereunder.

Warranty of capacity and power

	25.  	Each Party represents and warrants to the other Party that the following statements are, at
the date of this Agreement, true and accurate -
	 
	(a)  	it is duly organised and validly existing under the laws of the jurisdiction of its
organisation, and has capacity and power to enter into and perform its obligations under this
Agreement;
	 
	(b)  	its Memorandum and Articles of Association, or similar corporate constitutional documents
required by law, incorporate provisions which authorise, and all necessary corporate action
has been taken to authorise, and all necessary authorisations of any governmental or other
authority including those of the CFTC and/or FSA, as the case may be, have been duly and
unconditionally obtained and are now in full force and effect which are required to authorise
it to execute and deliver, and perform the obligations contemplated by, this Agreement;

Page 43

 

	(c)  	neither the execution and delivery by it of this Agreement nor the performance by it of any
of the obligations contemplated by this Agreement will -

	 	(i)  	contravene or constitute a default under any provision contained in any
law, judgment, order (of any jurisdiction in which it carries on business) or
consent by which it is bound or affected or in any agreement or instrument to which
it is a party;
	 
	 	(ii)  	cause any limitation on it or the powers of its directors, whether
imposed by or contained in its Memorandum or Articles of Association or other
corporate constitutional document or any law, order, judgement (of any jurisdiction
in which it carries on business), consent, agreement, instrument, or otherwise, to
be exceeded;

	(d)  	it has obtained all authorisations, consents or approvals of any governmental or regulatory
body required in connection with this Agreement;
	 
	(e)  	its obligations under this Agreement constitute its legal, valid, binding and enforceable
obligations, 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);
	 
	(f)  	no event has occurred which constitutes, or with the giving of notice or the lapse of time or
a relevant determination would constitute, a contravention of, or default under, any agreement
or instrument by which it or any of its assets is bound or affected, being a contravention or
default which might have a material adverse effect on its business and which might adversely
affect its ability to observe and perform its obligations under or pursuant to this Agreement;
	 
	(g)  	there is not current or pending or, to its best knowledge, threatened, any litigation,
arbitration or administrative action or proceeding before any court,

Page 44

 

	  	arbitrator, governmental, regulatory or administrative agency or authority which by itself or together with any other
such proceedings or claims, if determined adversely to it, will or might have a material
adverse effect on its financial condition, business,
assets or operations or its ability to perform its obligations under this Agreement; and  
	 
	(h)  	there are no other facts or matters to the best of its knowledge which might reasonably be
expected to have a material adverse effect on its business and its ability to perform its
obligations under this Agreement or on the willingness of the other Party to enter into this
Agreement.
	 
	(i)  	ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MECHANTABILITY OR OF
FITNESS FOR ANY PARTICULAR PURPOSE ARE DISCLAIMED.

LIABILITY

	26.1  	SUBJECT TO SUB-PARAGRAPH 26.3, NEITHER PARTY NOR ANY OF THEIR RESPECTIVE AFFILIATES,
DIRECTORS, EMPLOYEES, AGENTS, LICENSORS AND/OR CONTRACTORS SHALL BE LIABLE TO THE OTHER WITH
RESPECT TO ANY CLAIMS WHATSOEVER ARISING OUT OF THIS AGREEMENT FOR INDIRECT, CONSEQUENTIAL,
SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION, CLAIMS FOR LOSS OF
PROFITS OR INCOME OR LOSS OF USE OF EITHER, LOSS OF BUSINESS EXPECTATIONS OR BUSINESS
INTERRUPTIONS. THIS PARAGRAPH SHALL APPLY REGARDLESS OF ANY ACTUAL KNOWLEDGE OR FORESEEABILITY
OF SUCH DAMAGES.
	 
	26.2  	SUBJECT TO SUB-PARAGRAPHS 26.1 AND 26.5, THE TOTAL AGGREGATE LIABILITY OF EACH PARTY TO THE
OTHER FOR ALL LOSSES, DAMAGES, COSTS, CLAIMS AND EXPENSES OF ANY KIND ARISING OUT OF OR IN ANY
WAY CONNECTED TO THIS AGREEMENT SHALL NOT EXCEED [***]
£[***].
THE FOREGOING SHALL APPLY REGARDLESS OF WHETHER A CLAIM
	 
	

	***  	Certain information on this page has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

Page 45

 

ARISES IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE.

	26.3  	THE PARTIES ACKNOWLEDGE THEY HAVE ENTERED INTO THIS AGREEMENT IN RELIANCE UPON THE
LIMITATIONS OF LIABILITY AND DISCLAIMERS OF WARRANTIES AND DAMAGES SET OUT HEREIN AND THAT THE SAME FORM AN ESSENTIAL
BASIS OF THE BARGAIN BETWEEN THE PARTIES. THE PARTIES AGREE THAT THE LIMITATIONS AND
EXCLUSIONS OF LIABILITY AND DISCLAIMERS OF WARRANTIES AND CONDITIONS SPECIFIED HEREIN
SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.
	 
	26.4  	ICE ACKNOWLEDGES, UNDERSTANDS AND ACCEPTS THAT LCH MAKES NO WARRANTY WHATSOEVER TO ICE AS TO
THE SERVICES, EXPRESS OR IMPLIED, AND THAT THE SERVICES ARE PROVIDED “AS IS” TO LCH ENCLEAR
CLEARING MEMBERS FOR THEIR BENEFIT (AND, WHERE APPLICABLE THE BENEFIT OF THEIR RESPECTIVE
THIRD PARTY CLEARING PARTICIPANTS AND THEIR CUSTOMERS) IN ACCORDANCE WITH THE PROVISIONS OF
THE REGULATIONS, RELEVANT LCH CLEARING APPROVALS, THE ICE THIRD PARTY CLEARING AGREEMENT
(WHERE APPLICABLE), AND THE RELEVANT CLEARING MEMBERSHIP AGREEMENT/S. LCH DISCLAIMS ANY
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE. NEITHER LCH NOR ITS
MANAGERS, MEMBERS, OFFICERS, EMPLOYEES OR AGENTS MAKE ANY WARRANTY WITH RESPECT TO, AND NO
SUCH PARTY SHALL HAVE ANY LIABILITY TO ICE FOR THE ACCURACY, TIMELINESS, COMPLETENESS,
RELIABILITY, PERFORMANCE OR CONTINUED AVAILABILITY OF THE SERVICES (INCLUDING BUT NOT LIMITED
TO THE OPERATION AND FUNCTIONALITY OF LCH OR OTHER SYSTEMS UTILISED, OR FOR DELAYS, OMISSIONS
OR INTERRUPTIONS THEREIN. LCH SHALL HAVE NO DUTY OR OBLIGATION TO VERIFY ANY INFORMATION
RECEIVED FROM ICE OR ANY LCH ENCLEAR CLEARING

Page 46

 

MEMBER OR THIRD PARTY CLEARING PARTICIPANT.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING LCH DISCLAIMS ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE REGARDING LCH OR OTHER SYSTEMS UTILISED AND
THE OPERATION AND FUNCTIONALITY THEREOF AND DISCLAIMS ALL LIABILITY WITH REGARD THERETO.

	26.5  	NOTHING CONTAINED IN THIS AGREEMENT SHALL RESTRICT EITHER PARTY’S LIABILITY FOR DEATH OR
PERSONAL INJURY RESULTING FROM ANY ACT, OMISSION OR NEGLIGENCE OF THAT PARTY OR ITS OFFICERS,
AGENTS, EMPLOYEES OR SUB-CONTRACTORS.
	 
	26.6  	WITHOUT PREJUDICE TO EACH PARTY’S OBLIGATIONS UNDER THIS AGREEMENT, EACH PARTY ACKNOWLEDGES
AND AGREES THAT IT DOES NOT OWE ANY DUTY OF CARE TO THE OTHER IN RELATION TO THE ADMISSION OF
ANY LCH ENCLEAR CLEARING MEMBER OR THIRD PARTY CLEARING PARTICIPANT (AS APPLICABLE) OR THE
EXERCISE OF ITS POWERS UNDER THE REGULATIONS OR ICE DOCUMENTATION, AS THE CASE MAY BE.

FORCE MAJEURE

	27.1.1  	SUBJECT TO SUB-CLAUSE 27.1.2 BELOW, NEITHER ICE NOR LCH SHALL BE LIABLE TO THE OTHER FOR ANY
FAILURE TO FULFIL ITS DUTIES HEREUNDER IF AND TO THE EXTENT THAT SUCH FAILURE RESULTS FROM AN
EVENT, CAUSE OR CIRCUMSTANCE WHICH IS BEYOND ITS REASONABLE CONTROL, AND WHICH IS AN ACT OF
GOD, WAR DAMAGE, ENEMY ACTION, THE ACT OF ANY GOVERNMENT OR OTHER COMPETENT AUTHORITY, RIOT,
CIVIL COMMOTION, REBELLION, PLAGUE, EPIDEMIC, TERRORISM, STORM, ACCIDENT, FIRE, FLOOD,
EXPLOSION, LOCK-OUT, FAILURE OF TELECOMMUNICATIONS SYSTEM OR POWER SUPPLY, POLITICAL UNREST,
INDUSTRIAL DISPUTE OR DISTURBANCE, STRIKE, BOYCOTT, EMBARGO, ADVERSE WEATHER OR ATMOSPHERIC
CONDITIONS, FRAUD OF ANY PERSON OTHER THAN AN EMPLOYEE, DIRECTOR OR

Page 47

 

AGENT OF THAT PARTY, UNFORESEEN SHORTAGE OF PERSONNEL FOR MEDICAL REASONS, SUSPENSION OF PAYMENTS BY OR INSOLVENCY,
RECEIVERSHIP, ADMINISTRATION, BANKRUPTCY OR LIQUIDATION OF ANY PERSON OR OTHER SIMILAR CAUSE
(“FORCE MAJEURE EVENT”) (WHICH FOR THE AVOIDANCE OF DOUBT SHALL NOT INCLUDE A FAILURE OF ANY
SUB-CONTRACTOR TO PERFORM ITS OBLIGATIONS UNDER A SUB-CONTRACT).

	27.1.2  	LCH SHALL NOT BE ABLE TO RELY ON SUB-CLAUSE 27.1.1 ABOVE TO THE EXTENT THAT ITS FAILURE TO
FULFIL ITS DUTIES IS DUE TO OR CONNECTED WITH A FAILURE BY LCH TO HAVE ADEQUATE BUSINESS
CONTINUITY ARRANGEMENTS EXCEPT WHERE SUCH FAILURE IS ITSELF THE RESULT OF A FORCE MAJEURE
EVENT.
	 
	27.2  	THE PARTY UNABLE TO FULFIL ITS DUTIES PURSUANT TO SUBPARAGRAPH 27.1 (THE “AFFECTED PARTY”)
SHALL:
	 
	27.2.1  	GIVE WRITTEN NOTICE TO THE OTHER PARTY (THE “OTHER PARTY”) AS SOON AS REASONABLY PRACTICABLE
AFTER IT BECOMES AWARE OF THE OCCURRENCE OR LIKELY POSSIBILITY OF A FORCE MAJEURE EVENT, SUCH
NOTICE TO CONTAIN THE FOLLOWING INFORMATION:

	 	(i)  	A DESCRIPTION OF THE FORCE MAJEURE EVENT THAT HAS OCCURRED OR IS LIKELY
TO OCCUR;
	 
	 	(ii)  	THE DATE FROM WHICH THE EVENT HAS PREVENTED OR HINDERED OR WILL PREVENT
OR HINDER THE AFFECTED PARTY IN THE PERFORMANCE OF ITS DUTIES HEREUNDER;
	 
	 	(iii)  	A DESCRIPTION OF THE DUTIES SO AFFECTED;
	 
	 	(iv)  	ITS BEST ESTIMATE OF THE DATE UPON WHICH IT WILL BE ABLE TO RESUME
PERFORMANCE OF THE AFFECTED DUTIES; AND

Page 48

 

	27.2.2  	AT ALL TIMES CONTINUE TO TAKE STEPS IN ACCORDANCE WITH GOOD INDUSTRY PRACTICE TO RESUME FULL
PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT;
	 
	27.2.3  	AT ALL TIMES USE ALL REASONABLE ENDEAVOURS TO MITIGATE THE CONSEQUENCES OF THE FORCE MAJEURE EVENT; AND
	 
	27.2.4  	AT REASONABLE INTERVALS, OR UPON REQUEST BY THE OTHER PARTY, UPDATE SUCH OTHER PARTY AS TO
THE FORCE MAJEURE EVENT, ITS EFFECT, THE STEPS BEING TAKEN OR PLANNED TO REMEDY IT, AND
SUCH OTHER DETAILS AS THE OTHER PARTY MAY REASONABLY REQUEST.
	 
	   	THE RELIEF FROM LIABILITY UNDER SUB-PARAGRAPH 27.1 SHALL LAST FOR THE DURATION OF THE
FORCE MAJEURE EVENT IF AND SO LONG AS THE AFFECTED PARTY COMPLIES WITH THIS SUB-CLAUSE
27.2.

Instructions

	28.1  	For the purposes of this paragraph 28 any reference to “procedures” shall mean a reference to
such procedures as may be agreed between the Parties from time to time. A Party (the “first
Party”) shall be entitled without further enquiry to execute or act on any written information
or written instructions received from the other Party (the “other Party”) in accordance with
procedures whether from the other Party or any person reasonably believed by the first Party
to be a person notified to the first party as having authority to act on the other Party’s
behalf, and the first Party shall not be liable for any liability, claim, loss, damages and
expenses of any kind or nature suffered or incurred by the other party if it is subsequently
discovered that any such information is inaccurate, forged or unauthorised provided that the
first party has complied with the relevant procedures (if any) and acted reasonably.
	 
	28.2  	A Party (the “first Party”) shall be entitled without further enquiry to execute or act on
any information or instruction or purported information or instruction

Page 49

 

	   	received in electronic form via (or purportedly via) the first Party’s computer systems from the other Party (the
“other Party”) in accordance with procedures notwithstanding that it may afterwards be
discovered that any such information or instruction was not initiated by the other Party or
was not initiated through the computer systems operated by the other Party; such execution or
action shall, save in the case of willful default or reckless disregard of the first Party’s
obligations, constitute a good discharge to the first Party which shall not be liable for any
liability, claim, loss, damages and expenses of any kind or nature arising from such execution
or action provided that the first Party has complied with any applicable procedures.
	 
	28.3  	A Party (the “first Party”) shall be entitled without further enquiry to execute or act on
any oral information or oral instructions received from the other Party (the “other
Party”) whether from the other Party or any person reasonably believed by the first
Party to be a person notified to the first party as having authority to act on the other
Party’s behalf provided that the first Party shall have complied with the procedures
agreed between the Parties for authentication of oral instructions and the first Party
shall not be liable for any liability, claim, loss, damages and expenses of any kind or
nature suffered or incurred by the other Party if it is subsequently discovered that any
such information is inaccurate or unauthorised provided that the first Party has
complied with any applicable procedures.

Illegality

	29.1  	Neither Party shall be required to perform any obligation under this Agreement to the extent
that the performance of such obligation would cause that Party to breach any applicable law or
regulation to which it is subject.
	 
	29.2  	If either Party becomes aware that the performance of any obligation under this Agreement
would or could breach any applicable law or regulation to which it is subject, it shall notify
the other as soon as reasonably practicable.

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	29.3  	Each Party undertakes to comply with all applicable laws and regulations to which it is
subject in connection with performance of its obligations under this Agreement.

Severability

	30.  	If any provision of this Agreement is held to be invalid or unenforceable, then such
provision shall (so far as invalid or unenforceable) be given no effect and shall be deemed
not to be included in this Agreement but without invalidating any of the remaining provisions
of this Agreement. The Parties shall then use all reasonable endeavours to replace the invalid
or unenforceable provisions by a valid and enforceable substitute provision the effect of
which is as close as possible to the intended effect of the invalid or unenforceable
provision.

Notices

	31.1  	Any notice to be given by one Party to the other under this Agreement shall be given in
accordance with the provisions set out in Schedule 1 hereto.
	 
	31.2  	A Party may notify the other Party to this Agreement of a change to a name, relevant
addressee, address or facsimile address set out in Schedule 1 hereto, in accordance with the
provisions set out therein.

Waivers

	32.  	Any failure or delay by any Party in exercising any right or remedy provided by law or under
this Agreement shall not impair or affect such right or remedy or operate or be construed as a
waiver or variation of it or preclude its exercise at any subsequent time unless expressly
provided. No single or partial exercise of any such right or remedy shall preclude any
permitted other or further exercise of it or the exercise of any other right or remedy.

Remedies Cumulative

	33.1  	Subject to sub-paragraph 26.2, the rights and remedies of each of the Parties under or
pursuant to this Agreement are cumulative. They may each be

Page 51

 

exercised as often as such Party considers appropriate and are in addition to such rights and remedies under general law as
each Party may have.

	33.2  	The Parties acknowledge that damages may not be an adequate remedy for any breach of this
Agreement. Subject to paragraph 39 below, either Party shall be entitled to obtain any legal
and/or equitable relief, including specific performance or injunctive relief, in the event of
any breach of the provisions of this Agreement.

Entire Agreement

	34.  	This Agreement sets out the entire agreement and understanding between the Parties in respect
of the subject matter of this Agreement. It is agreed that-
	 
	(a)  	neither Party has entered into this Agreement in reliance upon any representation, warranty
or undertaking of the other Party which is not expressly set out or referred to in this
Agreement;
	 
	(b)  	neither Party shall have any remedy in respect of misrepresentation or untrue statement made
by the other Party which is not contained in this Agreement nor for any breach of warranty
which is not contained in this Agreement; and
	 
	(c)  	this paragraph shall not exclude any liability for fraudulent misrepresentation.

Legal Relationship

	35.  	Nothing in this Agreement is deemed to constitute a partnership between the Parties nor
constitute any Party the agent of the other or any other Party for any purpose.

No rights under Contracts (Rights of Third Parties) Act 1999

	36.  	A person who is not a Party to this Agreement shall have no right under the Contracts (Rights
of Third Parties) Act 1999 or otherwise to rely on or enforce any of its terms.

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Number of counterparts

	37.  	This Agreement may be executed by the Parties to it on separate counterparts, each of which
is an original but both of which together constitute one and the same instrument.

Governing law and iurisdiction

	38.1  	This Agreement and the relationship between the Parties shall be governed by, and interpreted
in accordance with, English law and the Parties irrevocably submit to the exclusive
jurisdiction of the English courts to support and assist the arbitration process (set out in
paragraph 39 below) including, if necessary, the grant of interlocutory relief pending the
outcome of that process.
	 
	38.2  	ICE hereby irrevocably appoints IntercontinentalExchange Services (UK) Limited whose
registered office is 3rd Floor 42 Moorgate London EC2 as its agent to accept service of
process in England in any legal action or proceedings arising out of or in connection with
this Agreement. If such process agent ceases to be able to act as such or to have an address
in England, ICE irrevocably agrees to appoint a new process agent in England reasonably
acceptable to LCH and to deliver to LCH within 14 days of such replacement appointment a copy
of a written acceptance of appointment by the replacement process agent. Nothing in this
Agreement shall affect the right to serve process in any other manner permitted by law.
	 
	39.  	Dispute Resolution
	 
	39.1  	Negotiation
	 
	39.1.1  	In the event that a dispute or difference (a “Dispute”) arises between the Parties out of or
in connection with this Agreement, the Parties shall seek to resolve the Dispute by
negotiation by referring the Dispute first to:
	 
	(i)  	in the case of LCH, any Managing Director; and

Page 53

 

	(ii)  	in the case of ICE, the Chief Operating Officer or his delegate in his absence or unavailability
	 
	   	(each a “Representative”).
	 
	39.1.2  	Such referral shall be initiated by one of the Parties notifying the other in writing that
the dispute resolution procedure set out in this sub-clause 39.1 shall apply and setting out
the nature of the Dispute. The Parties shall convene a meeting of the relevant
Representatives, and the relevant Representatives shall endeavour to resolve the Dispute,
within 5 Business Days of the date of the notice (the “Notice Date”). The joint written
decision (if any) of the relevant Representatives shall be binding on the Parties.
	 
	39.1.3  	In the event that the Dispute remains unresolved following that meeting, either Party may
refer the Dispute for further negotiation as between the Chief Executives of each of the
Parties, who (if either Party makes such election) shall meet and endeavour to resolve the
Dispute within 15 Business Days from the Notice Date. The joint written decision (if any) of
the Chief Executives shall be binding on the Parties.
	 
	39.2  	Mediation
	 
	   	In the event that the Parties are unable to resolve a matter in accordance with
sub-clause 39.1 above (and whether or not an election under sub-clause 39.1.3 above is
made), the following provisions shall apply:
	 
	39.2.1  	The Party seeking redress (the “Aggrieved Party”) shall give written notice to the other
Party setting out full particulars of the Dispute within 20 Business Days of the Notice Date.
	 
	39.2.2  	No later than 10 Business Days after service of such notice, the Aggrieved Party shall
organise a meeting (the “Dispute Resolution Meeting”) to be held at a mutually convenient
time, on a date no later than 20 Business Days from the date of service of the notice, at a
location in London. In the event that the Parties are unable to agree such a mutually
convenient time within

Page 54

 

	   	such 10 Business Day period, then the Aggrieved Party shall nominate 3
different appointment times between 8 am and 6 pm on 3 separate Business Days within the
remainder of the 20 Business Day period, and the other Party shall select one such
appointment. In default of such selection by the other Party within 2 Business Days of
notification by the Aggrieved Party of the 3 appointment times, then the Aggrieved Party shall
select one of the 3 appointment times, and notify the other Party of the date and time thereof
at least 2 Business Days in advance.
	 
	39.2.3  	Each of the Parties agrees that it shall be represented at such Dispute Resolution Meeting
by one or more of its Chief Executive, Chairman, Deputy Chief Executive, Chief Operating
Officer or (in the case of LCH) any Managing Director, and that each Party shall use its best
endeavours and negotiate in good faith with a view to resolving the Dispute with or without
financial recompense.
	 
	39.2.4  	In the event that the Parties are unable to reach a resolution of the Dispute, then they
shall adjourn the Dispute Resolution Meeting for a period of no longer than 10 Business Days
and they shall invite the services of a mutually agreed professional mediator to assist them
in achieving a resolution at the resumed meeting (the “Resumed Meeting”). The time and place
of the Resumed Meeting shall be agreed between the Parties; in default of agreement regarding
the time and place of the Resumed Meeting, the procedure set out in sub-clause 39.2.2 shall be
applied, the time periods referred to in sub-clause 39.2.2 running from the end of the 10
Business Day period referred to in this sub-clause 39.2.4. The fees of the professional
mediator shall be shared equally between the Parties and each Party shall bear its own costs
in connection with such mediation.
	 
	39.3  	Arbitration
	 
	   	If the Parties are unable to resolve the Dispute at such adjourned meeting, then such
Dispute shall be finally settled by arbitration in London pursuant to the LCIA Rules in
accordance with the Arbitration Act 1996. It is agreed that:

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	(i)  	the proceedings of the arbitration shall be confidential to the Parties;
	 
	(ii)  	the seat of arbitration shall be London and the place of arbitration shall be London;
	 
	(iii)  	the language of the arbitration shall be English;
	 
	(iv)  	the arbitration shall be conducted by a single arbitrator, having knowledge of or experience
in relation to international clearing systems and international financial or commodities
futures markets to be appointed by written agreement of the Parties or, failing such agreement
within 15 Business Days of one Party inviting the other to agree, by the LCIA;
	 
	(v)  	the fees of the arbitrator shall be shared equally between the Parties and, unless the
arbitrator orders otherwise, each Party shall bear its own costs in connection with the
arbitration;
	 
	(vi)  	the arbitrator shall have power to order any relief on a provisional basis which he would
have power to grant in a final award; and
	 
	(vii)  	the award of the arbitrator shall be final and binding on the Parties and, to the extent
permitted by the laws of England and Wales, the Parties hereby waive any right to any form of
appeal or to a court of law or other judicial authority.
	 
	39.4  	The Parties agree that any professional mediator involved in the mediation procedure
specified in sub-clause 39.2 above shall not take any part in any arbitration, whether as a
witness or otherwise, and any recommendations made by him in connection with such procedure
shall not be relied upon by either Party without the consent of the other Party and the
professional mediator.
	 
	39.5  	Neither Party shall, outside the negotiation and mediation procedure specified in sub-clauses
39.1 and 39.2 above, make use of, or rely upon, any “without prejudice statements” or
admissions made by the other Party in such procedures.

Page 56

 

	39.6  	Nothing in this Clause 39 shall prevent either Party from taking such action as it deems, in
its reasonable opinion, necessary in order to obtain interlocutory relief requiring compliance
with, or preventing breach of, a material term of this Agreement, including, without
limitation, initiating Court proceedings in the Courts of England and Wales. The taking of any
such action shall be without prejudice to the Parties’ obligation to negotiate and mediate
(or, as the case may be, to continue to negotiate and/or mediate) any Dispute in accordance
with sub-clauses 39.1 and 39.2 above.

Page 57

 

IN WITNESS whereof the Parties have caused this Agreement to be signed by their duly authorised
representatives on the day and year first before written.

	 	 	 	 	 
	SIGNED BY             /s/ S.Trabia	 	 
	

	 	 	 	 
	 
	 	 	 	 
	for INTERCONTINENTALEXCHANGE, INC.	 	 
	 
	 	 	 	 
	

	 	      /s/ Arun Aggarwal	 	 
	

	 	      MD — Business Management	 	 
	SIGNED BY       And Authorized signatory	 	 
	

	 	 	 	 
	

	 	     (Signatory 1)	 	 
	 
	 	 	 	 
	

	 	      /s/ Richard Heyman	 	 
	

	 	      Director	 	 
	

	 	 	 	 
	

	 	     (Signatory 2)	 	 
	 
	 	 	 	 
	for THE LONDON CLEARING HOUSE LIMITED	 	 

Page 58

 

SCHEDULE 1

NOTICES

	1.  	Notice of Termination (Paragraph 21 of the Agreement) or Notice of withdrawal of Eligible
Derivative Products in same Product Group (sub-paragraph 7.12.2) or System Issue Notice
(sub-paragraph 7.13.2)
	 
	1.1  	Any notice to be given pursuant to paragraph 21 or sub-paragraph 7.12.2 or sub-paragraph
7.13.2 of the Agreement shall be delivered by hand (including but not limited to courier) or
by pre-paid mail, marked to the attention of the person identified below, at the address set
out below in respect of that Party:

The London Clearing House Limited

Aldgate House

33 Aldgate High Street

London EC3N Lea

UK

Attention:       The Company Secretary

lntercontinentalExchange, Inc. (“ICE”)

2100 RiverEdge Parkway, Fifth Floor,

Atlanta, GA 30328, USA

Attention:       The Chief Operating Officer

(with a copy to the General Counsel although notice will be deemed to have been duly given if only
one copy of the notice is served addressed to the Chief Operating Officer)

	1.2  	Where a notice is delivered to a Party after 6 p.m. (local time) on a day which is not a
business day at the place of delivery, then the notice shall be deemed to be delivered at 9
a.m. on the next following business day at that place.

Page 59

 

	2.  	Notice relating to Default (Sub-paragraph 9.3 of the Agreement)

Any notice to be given by LCH to ICE pursuant to sub-paragraph 9.3 of the Agreement shall be given
by telephone to the Chief Operating Officer or his authorised delegate on any one of the following
the telephone numbers in the United States:

1 – 770 – 738 – 2129

1 – 770 – 933 – 9522

	3.  	Sending of a copy of a Default Notice (Sub-paragraph 9.5 of the Agreement)

A copy of a Default Notice sent by LCH to ICE pursuant to sub-paragraph 9.5 shall be sent by fax to
any one of the following fax numbers in the United States:

1 – 770 – 951 – 5481

	4.  	Sending a notice of intention to suspend or terminate contractual relationship with a
Participant (Sub-paragraph 9.6 of the Agreement)

Any notice to be given by ICE to LCH pursuant to sub-paragraph 9.6 of the Agreement shall be given
in the first instance by telephone to the Managing Director, Risk or his authorised delegate on any
one of the following telephone numbers in the United Kingdom:

+44 (0)20 7426 7000

+44 (0)20 7426 7055

followed thereafter by written notice sent by fax to any of the following fax numbers in the United
Kingdom:

+44 (0)20 7667 7351

+44 (0)20 7426 7001

	5.  	Other notices

Page 60

 

	5.1  	Any notice to be given by a Party to the other Party pursuant to any other paragraph of the
Agreement shall be given by fax to one of the fax numbers of the other Party as set out below:

LCH:

+44 (0)20 7667 7351

+44 (0)20 7426 7001

+44 (0)20 7426 7210

ICE:

1 – 770 – 951 – 5481

or delivered by hand or pre-paid mail, in all cases marked to the attention of the person
identified in section 1.1 above, to the address of the other Party as set out in section 1.1 above.

	5.2  	Where a notice is delivered by hand or pre-paid mail to a Party after 6 p.m. (local time) on
a day which is not a Business Day at the place of delivery, then the notice shall be deemed to
be delivered at 9 a.m. on the next following Business Day at that place.

	6.  	Notices sent by fax

Where any notice referred to in this Schedule is sent by fax, it shall be deemed to be delivered to
the receiving Party when receipt is confirmed telephonically between the sending Party and the
Party to whom it has been dispatched.

	7.  	Change of name, address etc

A Party shall notify the other Party to this Agreement of a change of name, relevant addressee,
address, telephone number or facsimile telephone number in writing (which notification may be sent
by fax, delivered by hand or by pre-paid mail or email to any email address which may be agreed
from time to time between the Parties provided that such notice shall only be effective on:–

(i) the date specified in the notice as the date on which the change is to take place; or

Page 61

 

(ii) if no date is specified or the date is less than two (2) Business Days (at the location of the
recipient) after the date on which such notice is received by the recipient, the day immediately
following the expiry of two (2) such Business Days after notice of any change has been received.
For the purposes of calculating such period of two Business Days, the day of receipt of the notice
shall not be included in the calculation.

Page 62

 

ANNEX 1

The Services

(Paragraph 3.1 of the Agreement)

	1.  	Terms used in this Annex shall have the same meaning as in the Agreement and in the
Regulations. In the event of any conflict, the meaning given in the Agreement shall prevail.
	 
	2.  	In accordance with the terms of this Agreement and subject to the Regulations (as defined in
sub-paragraph 1.2 of the Agreement), LCH shall provide the under mentioned central
counterparty services:-
	 
	2.1.1  	To receive matched trade particulars of Designated Trades (“the Trade Particulars”), which
are presented for registration in the names of relevant LCH EnClear Clearing Members by such
means as shall be agreed between the Parties from time to time;
	 
	2.2  	To assign the Trade Particulars to accounts opened in the names of LCH EnClear Clearing
Members;
	 
	2.3  	To allow LCH EnClear Members to designate Trade Particulars to house accounts or such other
accounts as may be agreed between the Parties from time to time;
	 
	2.4  	Subject to compliance with the Regulations by the LCH EnClear Clearing Members party to each
set of Trade Particulars (including but not limited to payment of any margin called by LCH),
to register such Trade Particulars as two LCH EnClear Contracts, as set out in the
Regulations;
	 
	2.5  	To deal with LCH EnClear Contracts in accordance with the Regulations;
	 
	2.6   	To provide to ICE and each LCH EnClear Clearing Member, a statement or summary giving details
of:-

Page 63

 

	(a)  	Designated Trades presented for registration by the LCH EnClear Clearing Members, identifying
which are to be assigned to house accounts and such other accounts as may be agreed between
the Parties from time to time;
	 
	(b)  	LCH EnClear Contracts which have been registered on the previous Clearing Day;
	 
	(c)  	LCH EnClear Contracts which have been settled from any account of the LCH EnClear Clearing
Member by virtue of daily settlement or other process;
	 
	(d)  	Amounts of money which are due to LCH from the LCH EnClear Clearing Member or vice versa and,
where applicable, details of the account/s in respect of which such amounts are due.
	 
	2.7  	Each Clearing Day, to determine the financial position of each LCH EnClear Clearing Member
with LCH, wherever reasonably possible, and to require or make such payments as are required
to discharge any resulting balance in accordance with the Regulations.
	 
	2.8  	To perform for LCH EnClear Clearing Members such other services as are assigned to LCH by the
Regulations, or as may be agreed from time to time between LCH and ICE.

Page 64

 

ANNEX 2

New Product Notice

	 	 	 	 	 	 
	 
	 	Name of New	 	 	 	 
	 	Product	 	 	 	 
	 	Intended Launch Date

	 	 	An estimate of the intended time to market for the new product.	 
	 	Description

	 	 	A brief overview of the new product. Where product may be
physically deliverable, details of proposed delivery
mechanism.	 
	 	Contract Size

	 	 	What is the intended standard contract size of the new
product; if bespoke please specify any relevant parameters.	 
	 	Contract Type

	 	 	Please provide details of the contract type, whether swap,
future, option, other derivative or cash instrument.	 
	 	Option Type

	 	 	If appropriate, please provide details of whether European,
American or Bermudan.	 
	 	Quotation Basis

	 	 	Basis upon which new product will be quoted.	 
	 	Currency

	 	 	Currency of the new product contract.	 
	 	Trading Hours

	 	 	Definition of standard trading day.	 
	 	Contract Series

	 	 	Number of months to be listed, details of whether the months
are consecutive, quarterly, other or bespoke. If bespoke
please specify any relevant parameters.	 
	 	Minimum Price

Fluctuation

	 	 	The minimum amount by which the new product contract will be
allowed to move, e.g. $0.01.	 
	 	Last Trading Day

	 	 	What will be the last trading day, when will trading cease on
the last trading day.	 
	 	Price Formation

	 	 	How will the price be formed during the day, including details
of any proposed auctions, breaks to trading.	 
	 	Contract Breaks

	 	 	Please provide details of any change to the price formation
mechanism and how the new product may be suspended from
listing for a temporary period.	 
	 	Daily Closing Price

	 	 	How will the daily closing price be determined and what will
the timing be in relation to the trading hours? Including
details of any relevant indices or industry benchmarks and
their formation. Please also advise of any models to be used
for the creation of fair values.	 
	 	Settlement Price

	 	 	Is/will the new product be physically delivered or cash
settled? If physically delivered, what delivery arrangements
are proposed including timings, delivery points, notice
periods and mechanism/s? How will the settlement price be
formed?	 
	 	Option Exercise

	 	 	If appropriate, please provide details of option exercise.	 
	 	Option Expiry

	 	 	If appropriate, please provide details of option expiry.	 
	 	Option Strike-prices

	 	 	Please provide details of option strike-prices to be listed
and criteria surrounding additional listings. Please add
details of increments to minimum increments to strike-prices.	 
	 	Option Quotation

	 	 	If appropriate, please provide details of settlement price
creation for option contracts and the option model utilised.	 
	 

 

 

	 	 	 	 	 	 
	 
	 	Name of New	 	 	 	 
	 	Product	 	 	 	 
	 	Option Volatilities

	 	 	If appropriate, please advise of the option model(s) to be
used and the method for creation of option volatilities.	 
	 	Volumes

	 	 	Estimates of likely product volumes at launch and estimated
growth in volumes.	 
	 	Price Histories

	 	 	Please provide a minimum of two years worth of price history
along with at-the-money option volatilities(if relevant).	 
	 	Margin Offsets

	 	 	Please provide details of all contracts cleared by LCH in
respect of which you wish LCH to investigate offering margin
offsets.	 
	 	Any other relevant

information
	 	 	 	 
	 

Signed for and on behalf of ICE:

Date
————————————

 

 

ANNEX 3

The Initial Products

Contract (LCH EnClear Eligible Derivative Product): WTI Bullet Swap

	 	 	 	 	 	 
	 
	 	DESCRIPTION

	 	 	Monthly cash settled, West Texas Intermediate Light
Sweet Crude Oil	 
	 	Contract Size

	 	 	1000 US Barrels (42,000 US gallons)	 
	 	Currency

	 	 	US Dollars and cents per barrel	 
	 	Minimum Price

Fluctuation

	 	 	One cent ($0.01) per US barrel	 
	 	Last Trading Day

	 	 	Close of business on the fourth day prior to the 25th
calendar day of the month preceding the contract
series. If the 25th calendar day of the month is not a
business day, close of business on the fourth business
day prior to the last business day preceding the 25th
calendar day of the month preceding the contract
series	 
	 	Fixed Price

	 	 	The traded price or the previous day’s settlement price	 
	 	Floating Price

	 	 	In respect of daily settlement, the Floating Price
will be determined by ICE (or otherwise in accordance
with the Procedures) using price data from a number of
sources including spot, forward and derivative markets
for both physical and financial products.
In respect of final settlement, the Floating Price
will be a price in US$  per barrel being the monthly
last settlement price for crude oil (light sweet)
published by the New York Mercantile Exchange NYMEX)
for the month of production as per ISDA commodity
definitions	 
	 	Contract series

	 	 	30 consecutive calendar months commencing with the
next calendar month	 
	 	Final Payment Dates

	 	 	The date which is two days (being Opening Days in
respect of the LCH EnClear Service for ICE originated
transactions) following the Last Trading Day	 
	 	Business day

Convention

	 	 	Preceding	 
	 	Business days

	 	 	US business days	 
	 

 

 

Contract (LCH EnClear
Eligible Derivative Product): Natural Gas Swap,

Fixed for NYMEX LD1

	 	 	 	 	 	 
	 
	 	DESCRIPTION

	 	 	Monthly cash settled, Natural Gas, Henry Hub.	 
	 	Contract Size

	 	 	2500 mm Btu’s	 
	 	Unit of trading

	 	 	Contract Size multiplied by the number of days in the
month traded. For example in a 30-day month, such as
November, the unit of trading will be 30 x 2500 or
75,000 mm Btu’s. This will be expressed as 30 “units”
or “lots” in TRS with 4 possible units of trading,
being 28, 29, 30 and 31 each multiplied by 2500mm
Btu’s	 
	 	Currency

	 	 	US Dollars and cents	 
	 	Minimum Price

Fluctuation

	 	 	One tenth of a cent ($0.001) per mm Btu	 
	 	Last Trading Day

	 	 	Close of business three business days prior to the
first calendar day of the contract series	 
	 	Fixed Price

	 	 	The traded price or the previous day’s settlement price	 
	 	Floating Price

	 	 	In respect of daily settlement, the Floating Price for
daily settlement will be determined by ICE (or
otherwise in accordance with the Procedures) using
price data from a number of sources including spot,
forward and derivative markets for both physical and
financial products.

In respect of final settlement the Floating Price will
be a price in US$  per mm Btu dry equal to the monthly
last settlement price for natural gas as published by
the New York Mercantile Exchange (NYMEX) for the month
of production per ISDA commodity definitions	 
	 	Contract series

	 	 	30 consecutive calendar months commencing with the
next calendar month	 
	 	Final Payment Dates

	 	 	The business day following the Last Trading Day	 
	 	Business day

Convention

	 	 	N/A	 
	 	Business days

	 	 	US business days

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