Document:

glc.htm

    CONFIDENTIAL
TREATMENT REQUESTED.  Confidential portions of this document have been
redacted and have been separately filed with the
Commission.

    ADVISORY
AGREEMENT

     

    THIS
AGREEMENT, made as of October 1, 2009, among Morgan
Stanley Smith Barney GLC I, LLC, a Delaware limited liability company (the
“Trading Company”), Demeter Management LLC, a Delaware limited liability company
(the “Trading Manager”), and GLC Ltd., a limited company organized under the
laws of England and Wales, having its registered office at Ingeni Building, 17
Broadwick Street, London W1F 0AX, United Kingdom (the “Trading
Advisor”).

     

    W I T N E S S E T H
:

     

    WHEREAS, the Trading Company
has been organized pursuant to a Certificate of Formation filed with Secretary
of State of the State of Delaware on September 10, 2009 (the “Certificate of
Formation”) and an operating agreement (the “Operating Agreement”) to, among
other things, directly or indirectly through a commodity trading advisor, trade,
buy, sell, spread, or otherwise acquire, hold, or dispose of commodities
(including, but not limited to, foreign currencies, mortgage-backed securities,
money market instruments, financial instruments, and any other securities or
items which are now, or may hereafter be, the subject of futures contract
trading), domestic and foreign commodity futures contracts, forward contracts,
foreign exchange commitments, options on physical commodities and on futures
contracts, spot (cash) commodities and currencies, exchange of futures contracts
for physicals transactions, exchange of physicals for futures contracts
transactions, and any rights pertaining thereto, whether traded on an organized
exchange or otherwise (hereinafter referred to collectively as “futures
interests;” provided, however, such
definition shall exclude securities futures products as defined by the Commodity
Futures Trading Commission (“CFTC”), options in securities futures and options
in equities) and securities (such as United States Treasury securities) approved
by the CFTC for investment of customer funds and other securities on a limited
basis, and to engage in all activities incident thereto;

     

    WHEREAS, the Trading Company
is a commodity pool operated by the Trading Manager in which other commodity
pool investment vehicles sponsored and/or managed by the Trading Manager and/or
its affiliates will invest (each such investment vehicle, a “Member,” and
collectively, the “Members”);

     

    WHEREAS, the principals of the
Trading Advisor have extensive experience trading in futures interests and the
Trading Advisor is willing to provide the services and undertake the obligations
as set forth herein;

     

    WHEREAS, the Trading Company
and the Trading Manager each desires the Trading Advisor to act as a trading
advisor for the Trading Company and to make investment decisions with respect to
futures interests for the Trading Company and the Trading Advisor desires so to
act; and

     

    WHEREAS, the Trading Company,
the Trading Manager and the Trading Advisor wish to enter into this Agreement
which, among other things, sets forth certain terms and conditions upon which
the Trading Advisor will conduct the Trading Company’s futures interest
trading.

     

    NOW, THEREFORE, the parties
hereto hereby agree as follows:

     

    
      	
              1.  

            	
              Undertakings in
      Connection with the Continuing Offering of
  Units.

            

    

     

    (a) The
Trading Advisor agrees with respect to the continuing offering of interests
(“Units”) in the Members: (i) to make all disclosures regarding itself, its
principals and affiliates, its trading performance, its trading systems, methods
and strategies (subject to the need, in the reasonable discretion of the Trading
Advisor, to preserve the secrecy of Proprietary Information (as defined in
Section 1(c) hereof) concerning such systems, methods and strategies), any
client accounts over which it has discretionary trading authority (other than
the names of or identifying information with respect to any such clients), and
otherwise, as the Members may reasonably require (x) in connection with any
Member’s offering materials (collectively, the “Offering Memoranda”) as required
by Rule 4.21 of the regulations under the Commodity Exchange Act (the “CEAct”),
including in connection with any amendments or supplements thereto, or (y) to
comply with any other applicable law or rule or regulation, including those of
the CFTC, the Securities and Exchange Commission, the National Futures
Association (the “NFA”) or any other regulatory or self-regulatory body,
exchange, or board with jurisdiction over its members (or to comply with the
reasonable request of the aforementioned organizations); and (ii) to otherwise
cooperate with the Trading Company, the Trading Manager and the Members by
providing information regarding the Trading Advisor in connection with the
preparation of the Offering Memoranda, including any amendments or supplements
thereto, as part of making application for registration of the Units under the
securities or blue sky laws of any jurisdictions, including foreign
jurisdictions, as the Members may deem appropriate; provided that all such
disclosures are subject to the need, in the reasonable discretion of the Trading
Advisor, to preserve the secrecy of Proprietary Information concerning its
clients, systems methods and strategies. As used herein, unless otherwise
provided, the term “principal” shall have the meaning as defined in Rule 4.10(e)
of the CFTC’s regulations and the term “affiliate” shall mean an individual or
entity that directly or indirectly controls, is controlled by, or is under
common control with, such party.

     

    (b) If the
Trading Advisor becomes aware of any materially untrue or misleading statement
or omission regarding itself or any of its principals or affiliates in the
Disclosure Information (as defined in Section 19 hereof), or of the occurrence
of any event or change in circumstances which would result in there being any
materially untrue or misleading statement or omission in the Disclosure
Information regarding itself or any of its principals or affiliates, the Trading
Advisor shall promptly notify the Trading Manager and shall cooperate with the
Trading Manager in the preparation of any necessary amendments or supplements to
the Offering Memoranda. Neither the Trading Advisor nor any of its principals,
or affiliates, or any stockholders, officers, directors, or employees shall
distribute the Offering Memoranda or selling literature or shall engage in any
selling activities whatsoever in connection with the continuing offering of
Units except as may be specifically approved by the Trading Manager and agreed
to by the Trading Advisor.

     

    (c) For
purposes of this Agreement, and notwithstanding any of the provisions hereof,
all non-public information relating to the Trading Advisor including, but not
limited to, records, whether original, duplicated, computerized, handwritten, or
in any other form, and information contained therein, business and/or marketing
and/or sales plans and proposals, names of past and current clients, names of
past, current and prospective contacts, trading methodologies, systems,
strategies and programs, trading advice, trading instructions, results of
proprietary accounts, training materials, research data bases, portfolios, and
computer software, and all written and oral information, furnished by the
Trading Advisor to the Trading Company, the Trading Manager, the Members and/or
their officers, directors, employees, agents (including, but not limited to,
attorneys, accountants, consultants, and financial advisors) or controlling
persons (each a “Recipient”), regardless of the manner in which it is furnished,
together with any analysis, compilations, studies or other documents or records
which are prepared by a Recipient of such information and which contain or are
generated from such information, regardless of whether explicitly identified as
confidential, with the exception of information which (i) is or becomes
generally available to the public other than as a result of acts by the
Recipient in violation of this Agreement, (ii) is not knowingly in the
possession of the Recipient prior to its disclosure pursuant to the terms
hereof, (iii) to Recipient’s knowledge is, or does not knowingly become,
available to the Recipient from a source that is not bound by a confidentiality
agreement with regard to such information or by any other legal obligation of
confidentiality prohibiting such disclosure, or (iv) that is independently
developed by the Recipient without use of the confidential information described
in this Section 1(c), are and shall be confidential information and/or trade
secrets and the exclusive property of the Trading Advisor (“Confidential
Information” and/or “Proprietary Information”).

     

    (d) The
Trading Company and the Trading Manager each warrants and agrees that they and
their respective officers, directors, members, equity holders, employees and
agents (including for purposes of this Agreement, but not limited to, attorneys,
accountants, consultants, and financial advisors) will protect and preserve the
Confidential Information and will disclose Confidential Information or otherwise
make Confidential Information available only to the Trading Company’s or the
Trading Manager’s officers, directors, members, equity holders, employees and
agents (including for purposes of this Agreement, but not limited to, attorneys,
accountants, consultants, and financial advisors), who need to know the
Confidential Information (or any part of it) for the purpose of satisfying their
fiduciary, legal, reporting, filing or other obligations hereunder or to monitor
performance in the account during the term of this Agreement or thereafter, or
to the Trading Company, Trading Manager or a Recipient, as the case may be, is
required to disclose such Confidential Information due to a fiduciary obligation
or legal or regulatory request. Additionally, the Trading Company and the
Trading Manager each warrants and agrees that it and any Recipient will use the
Confidential Information solely for the purpose of satisfying the Trading
Company’s or the Trading Manager’s obligations under this Agreement and not in a
manner which violates the terms of this Agreement.

     

    
      	
              2.  

            	
              Duties of the Trading
      Advisor.

            

    

     

    (a) Upon the
commencement of trading operations on or about October 1, 2009, by the Trading
Advisor on behalf of  the Trading Company, the Trading Advisor hereby
agrees to act as a Trading Advisor for the Trading Company and, as such, shall
have authority and responsibility for directing the investment and reinvestment
of the Trading Company’s assets, which shall consist of the Trading Company’s
Net Assets (as defined in Section 6(c) hereof) plus “notional” funds, if any, as
specified in writing by the Trading Manager and consented to by the Trading
Advisor (the “Assets”), on the terms and conditions and in accordance with the
prohibitions and the trading policies set forth in Exhibit A to this Agreement
as amended from time to time and provided in writing to the Trading Advisor by
the Trading Manager (the “Trading Policies”); provided, however, that the
Trading Manager may override the instructions of the Trading Advisor without
notice to the Trading Advisor to the extent necessary (i) to comply with the
Trading Policies and with applicable speculative position limits, (ii) to fund
any distributions or redemptions, (iii) to pay the Trading Company’s expenses,
(iv) to the extent the Trading Manager believes doing so is necessary for the
protection of the Trading Company, (v) to terminate the futures interest trading
of the Trading Company with the Trading Advisor, or (vi) to comply with any
applicable law or regulation. The Trading Manager agrees not to override any
such instructions for the reasons specified in clauses (ii) or (iii) of the
preceding sentence unless the Trading Advisor fails to comply with a request of
the Trading Manager to make the necessary amount of funds available to the
Trading Company within two trading days of such request.  The Trading
Manager agrees to inform the Trading Advisor as soon as reasonably practicable
in circumstances where it has overridden the instructions of the Trading
Advisor.  The Trading Advisor shall not be liable for the consequences
of any decision by the Trading Manager to override instructions of the Trading
Advisor, except to the extent that such consequences result from a material
breach of this Agreement by the Trading Advisor or the Trading Advisor fails to
comply with the Trading Manager’s decision to override an
instruction.

     

    (b) The
Trading Advisor shall:

     

    (i) Exercise
good faith and due care in trading futures interests for the account of the
Trading Company in accordance with the prohibitions and Trading Policies, and
the trading systems, methods, and strategies of the Trading Advisor described in
the Disclosure Information, with such changes and additions to such trading
systems, methods or strategies as the Trading Advisor, from time to time,
incorporates into its trading approach for accounts the size of the Trading
Company.

     

    (ii) Provide
the Trading Manager, within 45 days of the end of a calendar quarter, and within
45 days of a separate request which the Trading Manager may reasonably make from
time to time, with information comparing the performance of the Trading
Company’s account and the performance of all other client accounts (“Other
Accounts”) directed by the Trading Advisor using the trading systems used by the
Trading Advisor on behalf of the Trading Company over a specified period of time
for the purpose of confirming that the Trading Company has been treated
equitably compared to such Other Accounts.  In providing such
information, the Trading Advisor may take such steps as are necessary to assure
the confidentiality of the Trading Advisor’s clients’ identities. The Trading
Advisor shall, upon the Trading Manager’s request, consult with the Trading
Manager concerning any discrepancies between the performance of such Other
Accounts and the Trading Company’s account. The Trading Advisor shall promptly
inform the Trading Manager in writing of any material discrepancies of which the
Trading Advisor is aware. The Trading Manager acknowledges that the following
differences in accounts may cause divergent trading
results:  different trading strategies, methods or degrees of
leverage, different trading policies, accounts experiencing differing inflows or
outflows of equity, different risk profiles, accounts which commence trading at
different times and accounts which have different portfolios or different fiscal
years.

     

    (iii) Inform
the Trading Manager when the Trading Advisor’s open positions maintained by the
Trading Advisor exceed the Trading Advisor’s applicable speculative position
limits.

     

    (iv) Upon
reasonable request of the Trading Manager, promptly provide the Trading Manager
with all information concerning the Trading Advisor and its activities
reasonably requested by the Trading Manager (including, without limitation,
information relating to changes in control, key personnel, trading approach, or
financial condition).

     

    (c) All
purchases and sales of futures interests pursuant to this Agreement shall be for
the account, and at the risk, of the Trading Company and not for the account, or
at the risk of the Trading Advisor or any of its affiliates or each of their
principals, stockholders, directors, officers, or employees, or any other
person, if any, who controls the Trading Advisor. All brokerage commissions and
related transaction fees arising from such trading by the Trading Advisor shall
be for the account of the Trading Company.

     

    (d) *1

     

    (e) Prior to
the commencement of trading by the Trading Company, the Trading Manager, on
behalf of the Trading Company, shall deliver to the Trading Advisor a trading
authorization appointing the Trading Advisor the Trading Company’s
attorney-in-fact for such purpose (a form of which is attached hereto as Exhibit
B).

     

    (f) In
performing services to the Trading Company, the Trading Advisor shall utilize
its GLC Global Macro program (the “Trading Program”), as described in the
Disclosure Information, and as modified from time to time. The Trading Advisor
shall give the Trading Manager prior written notice of any change in the Trading
Program that the Trading Advisor considers to be material (and shall not effect
such change on behalf of the Trading Company without the Trading Manager’s
consent (such consent not to be unreasonably withheld)), including any
additional futures interests to be traded by the Trading Advisor not already
listed on Exhibit C.  Changes in the futures interests traded,
provided that such futures interests are listed on Exhibit C, shall not be
deemed a modification of the Trading Program.

     

    (g) The
Trading Advisor has in operation a written procedure in accordance with the
rules of the Financial Services Authority in the United Kingdom (the “FSA”) (the
“Rules”) for the effective consideration and proper handling of complaints from
customers. Any complaint should be referred to the Compliance Officer of the
Trading Advisor. The parties hereto agree that the Trading Company is a
Professional Client within the Rules and is not an eligible complainant as
defined in “Dispute Resolution: Complaints Sourcebook” of the Rules.
Accordingly, the Trading Company has no right of complaint to the Financial
Ombudsmen Service in respect of any dispute arising out of the Trading Advisor’s
performance of its obligations under this Agreement.

     

    
      	
              3.  

            	
              Designation of
      Additional or Replacement Trading Advisors and Reallocation of
      Assets.

            

    

     

    (a) If the
Trading Manager at any time deems it to be in the best interests of the Trading
Company, the Trading Manager may designate an additional or replacement trading
advisor or advisors for the Trading Company and may apportion to such additional
or replacement trading advisor(s) the management of such amounts of Assets as
the Trading Manager shall determine in its absolute discretion.  The
designation of an additional trading advisor or advisors or replacement of any
trading advisor for the Trading Company by the Trading Manager shall not require
any approval of, but shall require notification of such to, any existing trading
advisor (including the Trading Advisor).  Subject to Section 7(c)
hereof, the designation and retention of an additional or replacement trading
advisor(s) and the apportionment of Assets to any such trading advisor(s)
pursuant to this Section 3 shall neither terminate this Agreement nor
modify in any regard the respective rights and obligations of the Trading
Company, the Trading Manager and the Trading Advisor hereunder with respect to
the Net Assets that remain under the management of the Trading
Advisor.  In the event that an additional or replacement trading
advisor(s) is so designated:

     

    (i) the
Trading Advisor shall thereafter receive Management Fees and Incentive Fees
based, respectively, on that portion of the Net Assets managed by the Trading
Advisor and that portion of the New Trading Profit (as defined in
Section 6(d) hereof) attributable to the trading done by the Trading
Advisor; and

     

    (ii)           the
name of the Trading Company shall be amended accordingly.

     

    (b) The
Trading Manager may at any time and from time to time upon three Business Days’
(as defined in Section 6(a)(i) below) prior notice reduce Assets allocated to
the Trading Advisor (whether or not such Assets are allocated to any other
trading advisor or advisors of the Trading Company ) or allocate additional
Assets upon three Business Days’ prior notice to the Trading Advisor (whether or
not such additional Assets are allocated away from such other trading advisor or
advisors); provided that any such addition to or withdrawal from Assets
allocated to the Trading Advisor will only take place on the last day of a month
unless the Trading Manager determines that the best interests of the Trading
Company require otherwise.

    

    

    
      	
              4.  

            	
              Trading Advisor as an
      Independent Contractor.

            

    

     

    For all
purposes of this Agreement, the Trading Advisor shall be deemed to be an
independent contractor and shall, unless otherwise expressly provided herein or
authorized, have no authority to act for or represent the Trading Company or its
Members in any way or otherwise be deemed an agent of the Trading Company or its
Members.  Nothing contained herein shall be deemed to require the
Trading Company to take any action contrary to the Operating Agreement or the
Certificate of Formation of the Trading Company as from time to time in effect,
or any applicable law or rule or regulation of any regulatory or self-regulatory
body, exchange, or board. Nothing herein contained shall constitute the Trading
Advisor, the Trading Manager, or the Members, as members of any partnership,
joint venture, association, syndicate or other entity, or be deemed to confer on
any of them any express, implied, or apparent authority to incur any obligation
or liability on behalf of any other. It is expressly agreed that the Trading
Advisor is neither a promoter, sponsor, or issuer with respect to the Trading
Company or its Members, nor does the Trading Advisor have any authority or
responsibility with respect to the offer, sale or issuance of
Units.

     

    
      	
              5.  

            	
              Commodity
      Broker.

            

    

     

    The
Trading Advisor shall effect all transactions in futures interests for the
Trading Company through the Trading Company’s separate account maintained with
such commodity broker or brokers as the Trading Manager shall direct and appoint
from time to time. Morgan Stanley & Co., Incorporated (“MS & Co.”),
Morgan Stanley & Co. International plc, and Morgan Stanley Capital Group
Inc. (“MSCG” and collectively, the “Commodity Brokers”) may act as the clearing
commodity brokers for the Trading Company, and MS & Co. and its affiliates
may act as foreign exchange forward contract counterparty for the Trading
Company.  MSCG and its affiliates may act as an options on foreign
exchange forward contract counterparty for the Trading
Company.  Morgan Stanley Smith Barney LLC, its affiliates and the
Commodity Brokers, may act as the Trading Company’s non-clearing commodity
broker.  The Trading Manager shall provide the Trading Advisor with
copies of brokerage statements.

     

    Notwithstanding
the foregoing, the Trading Advisor may execute trades through F/X brokers other
than those employed by MS & Co. and its affiliates so long as arrangements
(including executed give-up agreements) are made for such floor brokers to
“give-up” or transfer the positions to MS & Co. in conformity with the
Trading Policies set forth in Exhibit B attached hereto.

     

    
      	
              6.  

            	
              Fees.

            

    

     

    (a) For the
services to be rendered to the Trading Company by the Trading Advisor under this
Agreement:

     

    (i) The
Trading Company shall pay the Trading Advisor a monthly management fee equal to
1/12 of the applicable rate on Annex I (as may be amended from time to time) to
this Agreement as of the first day of each month (the “Management
Fee”).  The Management Fee is payable in arrears within 30 Business Days of the end
of the month for which it was calculated.  For purposes of this
Agreement, “Business Day” shall mean any day which the securities markets are
open in the United States.

     

    (ii) The
Trading Company shall pay the Trading Advisor an incentive fee equal to 20% of
the “New Trading Profit” (as defined in Section 6(d) hereof) that shall accrue
monthly but is not otherwise payable until the end of each calendar quarter (the
“Incentive Fee”). The initial incentive period will commence on the date of the
Trading Company’s initial closing and shall end on the last day of the calendar
quarter after such initial closing occurs.  The Incentive Fee is
payable within 30 Business Days of the end
of the calendar quarter for which it was calculated.

     

    (b) If this
Agreement is terminated on a date other than the last day of a calendar quarter,
the Incentive Fee shall be determined as if such date were the end of a calendar
quarter. If this Agreement is terminated on a date other than the end of a
month, the Management Fee described above shall be determined as if such date
were the end of a month, but such fee shall be prorated based on the ratio of
the number of trading days in the month through the date of termination to the
total number of calendar days in the month. If, during any month after the
Trading Company commences trading operations (including the month in which the
Trading Company commences such operations), the Trading Company does not conduct
business operations, or suspends trading for the account of the Trading Company
managed by the Trading Advisor, or, as a result of an act or material failure to
act by the Trading Advisor, is otherwise unable to utilize the trading advice of
the Trading Advisor on any of the calendar days of that period for any reason,
the Management Fee shall be prorated based on the ratio of the number of
calendar days in the month which the Trading Company account managed by the
Trading Advisor engaged in trading operations or utilizes the trading advice of
the Trading Advisor to the total number of calendar days in the month. The
Management Fee payable to the Trading Advisor for the month in which the Trading
Company begins to receive trading advice from the Trading Advisor pursuant to
this Agreement shall be prorated based on the ratio of the number of calendar
days in the month from the day the Trading Company begins to receive such
trading advice to the total number of calendar days in the month. In the event
that there is an increase or decrease in the Assets as of any day other than the
first day of a month, the Trading Advisor shall be paid a pro rata Management
Fee on such increase or decrease in the Assets for such month.

     

    (c) The term
“Net Assets” shall mean the total assets of the Trading Company allocated to the
Trading Advisor (including, but not limited to, all cash and cash equivalents,
accrued interest and amortization of original issue discount, and the market
value of all open futures interest positions and other assets of the Trading
Company) less all liabilities of the Trading Company determined in accordance
with generally accepted accounting principles consistently applied under the
accrual basis of accounting. Unless generally accepted accounting principles
require otherwise, the market value of a futures or option contract traded on a
United States exchange shall mean the settlement price on the exchange on which
the particular futures or option contract shall be traded by the Trading Company
on the day with respect to which the Net Assets are being determined; provided, however, that if a
contract could not be liquidated on such day due to the operation of daily
limits or other rules of the exchange on which that contract shall be traded or
otherwise, the settlement price on the first subsequent day on which the
contract could be  liquidated shall be the market value of such
contract for such day, or if a contract could not be liquidated on such day due
to the exchange being closed for an exchange holiday, the settlement price on
the most recent preceding day on which the contract could have been liquidated
shall be the market value of such contract for such day.  The market
value of a forward contract or a futures or option contract traded on a foreign
exchange or market shall mean its market value as determined by the Trading
Manager on a basis consistently applied for each different variety of
contract.

     

    (d) As used
herein, the term “New Trading Profit” shall mean net futures interest trading
profits (realized and unrealized) on the Assets traded by the Trading Advisor,
decreased by the Trading Advisor’s monthly management fees, brokerage
commissions allocable to the Assets traded by the Trading Advisor, transaction
costs and administrative fees, with such trading profits and items of decrease
determined from the end of the last calendar quarter in which an Incentive Fee
was earned by the Trading Advisor or, if no Incentive Fee has been earned
previously by the Trading Advisor, from the date that the Trading Advisor
commenced managing the Assets on behalf of the Trading Company to the end of the
calendar quarter as of which such Incentive Fee calculation is being made.
Extraordinary expenses do not reduce New Trading Profit. Interest income is not
included in New Trading Profit. New Trading Profit shall be calculated before
reduction for Incentive Fees paid or accrued. Incentive Fees shall be paid to
the Trading Advisor upon any withdrawal of assets from the Trading Company at
the end of any month when such withdrawal of assets is made as if such month-end
is the end of the calendar quarter.

     

    (e) If any
payment of Incentive Fees is made to the Trading Advisor on account of New
Trading Profit earned by the Trading Advisor for the Trading Company and the
Trading Advisor thereafter fails to earn New Trading Profit for the Trading
Company or experiences losses for any subsequent incentive period for the
Trading Company, the Trading Advisor shall be entitled to retain such amounts of
Incentive Fees previously paid to the Trading Advisor in respect of such New
Trading Profit. No subsequent Incentive Fees shall be payable to the Trading
Advisor until the Trading Advisor has again earned New Trading Profit for the
Trading Company; provided, however, that if the
Assets are reduced because of redemptions that occur at the end of, and/or
subsequent to, a calendar quarter in which the Trading Advisor experiences a
futures interest trading loss for the Trading Company, the trading loss that
must be recovered before the Trading Advisor will be deemed to experience New
Trading Profit for the Trading Company in a subsequent calendar quarter will be
equal to the amount determined by (x) dividing the Assets after such decrease by
the Assets immediately before such decrease and (y) multiplying that fraction by
the amount of the unrecovered futures interest trading loss prior to such
decrease. In the event that the Trading Advisor experiences a trading loss for
the Trading Company in more than one calendar quarter without the Trading
Company paying an intervening Incentive Fee and Assets are reduced in more than
one such calendar quarter because of redemptions, then the trading loss for each
such calendar quarter shall be adjusted in accordance with the formula described
above and such reduced amount of futures interest trading loss shall be carried
forward and used to offset subsequent futures interest trading
profits.

     

    
      	
              7.  

            	
              Term

            

    

     

    (a) This
Agreement shall continue in effect for a period of one year from the date the
Agreement was entered into unless otherwise terminated as set forth in this
Section 7. If the Agreement is not terminated upon the expiration of such
one-year period, this Agreement shall automatically renew for an additional
one-year period and shall continue to renew for additional one-year periods
until this Agreement is otherwise terminated, as provided for
herein.  The Trading Advisor may terminate this Agreement at the end
of any such one-year period by providing prior written notice of termination to
the Trading Company at least sixty days prior to the expiration of such one-year
period.  This Agreement shall automatically terminate if the Trading
Company is dissolved.

     

    (b) The
Trading Company and Trading Manager each shall have the right to terminate this
Agreement in its discretion (i) at any month end upon ten days’ prior written
notice to the Trading Advisor, or (ii) at any time upon reasonable prior written
notice to the Trading Advisor upon the occurrence of any of the following
events: (A) if any person described as a “principal” of the Trading Advisor in
the Offering Memoranda ceases for any reason to be an active “principal” of the
Trading Advisor; (B) if the Trading Advisor becomes bankrupt or insolvent; (C)
if the Trading Advisor is unable to use its trading systems or methods as in
effect on the date hereof and as modified in the future for the benefit of the
Trading Company; (D) if the registration, as a commodity trading advisor (if
applicable), of the Trading Advisor with the CFTC, its membership in the NFA or
its registration with the FSA, is revoked, suspended, terminated, or not
renewed, or limited or qualified in any respect; (E) if the Trading Advisor
determines that it was required to be registered as a commodity trading advisor
with the CFTC and was not properly registered, (F) if the Trading Advisor merges
or consolidates with, or sells or otherwise transfers its advisory business, or
all or a substantial portion of its assets, any portion of its futures interest
trading systems or methods, or its goodwill to, any individual or entity; (G)
if, at any time, the Trading Advisor violates any Trading Policy or
administrative policy, except with the prior express written consent of the
Trading Manager; or (H) if the Trading Advisor fails in a material manner to
perform any of its obligations under this Agreement.

     

    (c) The
Trading Advisor may terminate this Agreement at any time, upon thirty days’
prior written notice to the Trading Company and Trading Manager, in the event:
(A) that the Trading Manager imposes additional trading limitation(s) in the
form of one or more Trading Policies or administrative policies that the Trading
Advisor does not agree to follow in its management of the Assets; (B) the
Trading Manager objects to the Trading Advisor implementing a proposed material
change to the Trading Program and the Trading Advisor certifies to the Trading
Manager in writing that it believes such change is in the best interests of the
Trading Company; (C) the Trading Manager or the Trading Company materially
breaches this Agreement and does not correct the breach within ten days of
receipt of a written notice of such breach from the Trading Advisor; (D) the
Assets fall below $*2(after adding back trading losses)
at any time; (E) the Trading Company becomes bankrupt or insolvent, or (F) the
registration of the Trading Manager with the CFTC as a commodity pool operator
or its membership in the NFA is revoked, suspended, terminated or not renewed,
or limited or qualified in any respect.  If the Trading Manager or
Trading Company merges, consolidates or sells a substantial portion of its
assets pursuant to Section 12 of this Agreement, the Trading Advisor may
terminate this Agreement upon prior written notice to the Trading Manager and
Trading Company.

     

    (d) Except as
otherwise provided in this Agreement, any termination of this Agreement in
accordance with this Section 7 shall be without penalty or liability to any
party, on account of such termination.

     

    (e) The
indemnities set forth in Section 8 hereof shall survive any termination of this
Agreement.

     

    
      	
              8.  

            	
              Standard of Liability:
      Indemnifications.

            

    

     

    (a) Limitation of Trading
Advisor Liability. In respect of the Trading Advisor’s role in the
futures interests trading of the Trading Company, the Trading Advisor shall not
be liable to the Trading Company or the Trading Manager or their partners,
directors, officers, principals, managers, members, shareholders, employees,
controlling persons or successors and assigns except that the Trading Advisor
shall be liable for acts or omissions that constitute a material breach of this
Agreement or a representation, warranty or covenant herein, willful misconduct
or negligence, or are the result of the Trading Advisor not having acted in good
faith and in the reasonable belief that such actions or omissions were in, or
not opposed to, the best interests of the Trading Company.

     

    (b) Trading Advisor Indemnity in
Respect of Management Activities. The Trading Advisor shall indemnify,
defend and hold harmless the Trading Company and the Trading Manager, their
controlling persons, their affiliates and their respective directors, officers,
principals, managers, members, shareholders, employees and controlling persons
from and against any and all losses, claims, damages, liabilities (joint and
several), costs, and expenses (including any reasonable investigatory, legal,
accounting and other expenses incurred in connection with, and any amounts paid
in, any litigation or other proceeding or any settlement; provided that, solely
in the case of a settlement, the Trading Advisor shall have approved such
settlement) resulting from a demand, claim, lawsuit, action or proceeding (other
than those incurred as a result of claims brought by or in the right of an
indemnified party) relating to this Agreement (except as covered by paragraph
(d) below); provided that a court of competent jurisdiction upon entry of a
final judgment (or, if no final judgment is entered, by an opinion rendered by
counsel who is approved by the Trading Company and the Trading Advisor, such
approval not to be unreasonably withheld) to the effect that the action or
inaction of such indemnified party that was the subject of the demand, claim,
lawsuit, action, or proceeding did not constitute negligence, misconduct, or a
breach of this Agreement or a representation, warranty or covenant of the
Trading Company or the Trading Manager, their controlling persons, their
affiliates and their respective directors, officers, shareholders, employees,
and controlling persons and was done in good faith.

     

    (c) Trading Company Indemnity in
Respect of Management Activities.  The Trading Company shall
indemnify, defend and hold harmless the Trading Advisor, its controlling
persons, their affiliates and their respective directors, officers, principals,
managers, members, shareholders, employees and controlling persons, from and
against any and all losses, claims, damages, liabilities (joint and several),
costs and expenses (including any reasonable investigatory, legal, accounting
and other expenses incurred in connection with, and any amounts paid in, any
litigation or other proceeding or any settlement; provided that, solely in the
case of a settlement, the Trading Company shall have approved such settlement)
resulting from a demand, claim, lawsuit, action or proceeding (other than those
incurred as a result of claims brought by or in the right of an indemnified
party) relating to this Agreement (except as covered by paragraph (e) below);
provided that a court of competent jurisdiction upon entry of a final judgment
finds (or, if no final judgment is entered, by an opinion rendered by counsel
who is approved by the Trading Company and the Trading Advisor, such approval
not to be unreasonably withheld) to the effect that the action or inaction of
such indemnified party that was the subject of the demand, claim, lawsuit,
action, or proceeding did not constitute negligence, misconduct, or a breach of
this Agreement or a representation, warranty or covenant of the Trading Advisor,
its controlling persons, its affiliates and directors, officers, shareholders,
employees, and controlling persons and was done in good faith.

     

    (d) Trading Advisor Indemnity in
Respect of Sale of Units. The Trading Advisor shall indemnify, defend and
hold harmless the Trading Company, the Trading Manager, any selling agent, their
controlling persons and their affiliates and their respective directors,
officers, principals, managers, members, shareholders, employees and controlling
persons from and against any and all losses, claims, damages, liabilities,
costs, and expenses, (joint and several), to which any indemnified person may
become subject (including any reasonable investigatory, legal, accounting and
other expenses incurred in connection with, and any amounts paid in, any
litigation or other proceeding or any settlement; provided that, solely in the
case of a settlement, the Trading Advisor shall have approved such settlement,
and in connection with any administrative proceedings), in respect of the offer
or sale of Units, insofar as such losses, claims, damages, liabilities, costs,
or expenses (or action in respect thereof) arise out of, or are based upon: (i)
a breach by the Trading Advisor of any applicable laws or regulations or any
representation, warranty or agreement in this Agreement; or (ii) any materially
untrue statement or omission relating or with respect to the Trading Advisor, or
any of its principals, or their operations, trading systems, methods or
performance, which was made in the Offering Memoranda or any amendment or
supplement thereto or any other sales literature and furnished by the Trading
Advisor for inclusion therein.

     

    (e)  Trading Company Indemnity in
Respect of Sale of Units. The Trading Company shall indemnify, defend and
hold harmless the Trading Advisor its controlling persons, their affiliates and
their respective directors, officers, principals, managers, members
shareholders, employees and controlling persons from and against any loss claim,
damage, liability, cost, and expense, joint and several, to which any
indemnified person may become subject (including any reasonable investigatory,
legal, accounting and other expenses incurred in connection with, and any
amounts paid in, any litigation or other proceeding or any settlement; provided
that, solely in the case of a settlement, the Trading Company shall have
approved such settlement, and in connection with any administrative
proceedings), in respect of the offer or sale of Units, unless such loss, claim,
damage, liability, cost, or expense (or action in respect thereof) arises out
of, or is based upon (i) a breach by the Trading Advisor of any applicable laws
or regulations or any representation, warranty or agreement in this Agreement;
or (ii) any materially untrue statement or omission relating or with respect to
the Trading Advisor, or any of its principals or their operations, trading
systems, methods or performance that was made in the Offering Memoranda or in
any other sales literature and furnished by the Trading Advisor for inclusion
therein.

     

    (f) Subject
to Section 8(a) hereof, the foregoing agreements of indemnity shall be in
addition to, and shall in no respect limit or restrict, any other remedies which
may be available to an indemnified person.

     

    (g) Promptly
after receipt by an indemnified person of notice of the commencement of any
action, claim, or proceeding to which any of the indemnities may apply, the
indemnified person will, as soon as reasonably practicable, notify the
indemnifying party in writing of the commencement thereof if a claim in respect
thereof is to be made against the indemnifying party hereunder; but the omission
so to notify the indemnifying party will not relieve the indemnifying party from
any liability that the indemnifying party may have to the indemnified person
hereunder, except where such omission has materially prejudiced the indemnifying
party. In case any action, claim, or proceeding is brought against an
indemnified person and the indemnified person notifies the indemnifying party of
the commencement thereof as provided above, the indemnifying party will be
entitled to participate therein and, to the extent that the indemnifying party
desires, to assume the defense thereof with counsel selected by the indemnifying
party and not unreasonably disapproved by the indemnified person. After notice
from the indemnifying party to the indemnified person of the indemnifying
party’s election so to assume the defense thereof as provided above, the
indemnifying party will not be liable to the indemnified person under the
indemnity provisions hereof for any legal and other expenses subsequently
incurred by the indemnified person in connection with the defense thereof, other
than reasonable costs of investigation.

     

    Notwithstanding
the preceding paragraph, if in any action, claim, or proceeding as to which
indemnification is or may be available hereunder, an indemnified person
reasonably determines that its interests are or may be adverse, in whole or in
part, to the indemnifying party’s interests or that there may be legal defenses
available to the indemnified person that are different from, in addition to, or
inconsistent with the defenses available to the indemnifying party, the
indemnified person may retain its own counsel in connection with such action,
claim, or proceeding and will be indemnified (provided the indemnified person is
so entitled) by the indemnifying party for any legal and other expenses
reasonably incurred in connection with investigating or defending such action,
claim, or proceeding.

     

    In no
event will the indemnifying party be liable for the fees and expenses of more
than one counsel for all indemnified persons in connection with any one action;
claim, or proceeding or in connection with separate but similar or related
actions, claims, or proceedings in the same jurisdiction arising out of the same
general allegations. The indemnifying party will not be liable for any
settlement of any action, claim, or proceeding effected without the indemnifying
party’s express written consent, but if any action, claim, or proceeding, is
settled with the indemnifying party’s express written consent, the indemnifying
party will indemnify, defend, and hold harmless an indemnified person as
provided in this Section 8.

     

    
      	
              9.  

            	
              Right to Advise Others
      and Uniformity of Acts and
Practices.

            

    

     

    (a) The
Trading Advisor is engaged in the business of advising clients as to the
purchase and sale of futures interests. During the term of this Agreement, the
Trading Advisor, its principals and affiliates, will be advising other clients
(including affiliates and the stockholders, officers, directors, and employees
of the Trading Advisor and its affiliates and their families) and trading for
their own accounts. The Trading Advisor will use its commercially reasonable
best efforts to implement a fair and consistent allocation policy that seeks to
ensure that all clients are treated equitably and positions allocated as nearly
as possible in proportion to the assets available for trading of the accounts
managed or controlled by the Trading Advisor.  Upon written request,
the Trading Manager may request a copy of the Trading Advisor’s procedures
regarding the equitable treatment of trades across accounts.  Such
procedures shall be provided to the Trading Manager within 30 days of such
request by the Trading Manager.  Except as otherwise set forth herein,
the Trading Advisor and its principals and affiliates agree to treat the Trading
Company in a fiduciary capacity to the extent recognized by applicable law, but
subject to that standard.  Under no circumstances shall the Trading
Advisor by any act or omission knowingly or intentionally favor any account
advised or managed by the Trading Advisor over the account of the Trading
Company in any way or manner. Nothing contained in this Section 9(a) shall
preclude the Trading Advisor from charging different management and/or incentive
fees to its clients. Subject to the Trading Advisor’s obligations under
applicable law, the Trading Advisor or any of its principals or affiliates shall
be free to advise and manage accounts for other clients and shall be free to
trade on the basis of the same trading systems, methods, or strategies employed
by the Trading Advisor for the account of the Trading Company, or trading
systems, methods, or strategies that are entirely independent of, or materially
different from, those employed for the account of the Trading Company, and shall
be free to compete for the same futures interests as the Trading Company or to
take positions opposite to the Trading Company, where such actions do not
knowingly or intentionally prefer any of such accounts over the account of the
Trading Company on an overall basis.

     

    (b) The
Trading Advisor shall not be restricted as to the number or nature of its
clients, except that: (i) so long as the Trading Advisor acts as a trading
advisor for the Trading Company, neither the Trading Advisor nor any of its
principals or affiliates shall knowingly hold any position or control any other
account that would cause the Trading Company, the Trading Advisor, or the
principals or affiliates of the Trading Advisor to be in violation of the CEAct
or any regulations promulgated thereunder, any other applicable law, or any
applicable rule or regulation of the CFTC or any other regulatory or self
regulatory body, exchange, or board; and (ii) neither the Trading Advisor nor
any of its principals or affiliates shall render futures interests trading
advice to any other individual or entity or otherwise engage in activity that
shall knowingly cause positions in futures interests to be attributed to the
Trading Advisor under the rules or regulations of the CFTC or any other
regulatory or self regulatory body, exchange, or board so as to require the
significant modification of positions taken or intended for the account of the
Trading Company; provided that the Trading Advisor may modify its trading
systems, methods or strategies to accommodate the trading of additional funds or
accounts.  If applicable speculative position limits are exceeded by
the Trading Advisor in the opinion of (i) independent counsel, (ii) the CFTC, or
(iii) any other regulatory or self regulatory body, exchange, or board, the
Trading Advisor and its principals and affiliates shall promptly liquidate
positions in all of their accounts, including the Trading Company’s account, as
to which positions are attributed to the Trading Advisor as nearly as possible
in proportion to the accounts′ respective
amounts available for trading (taking into account different degrees of leverage
and “notional” equity) to the extent necessary to comply with the applicable
position limits.

     

    
      	
              10.  

            	
              Representations,
      Warranties, and Covenants of the Trading
  Advisor.

            

    

     

    (a) Representations and
Warranties of the Trading Advisor. The Trading Advisor represents and
warrants to and agrees with the Trading Manager and the Trading Company as
follows:

     

    (i) It will
exercise good faith and due care in implementing the Trading Program on behalf
of the Trading Company as described in the Disclosure Information (as modified
from time to time) or any other trading programs agreed to by the Trading
Manager and the Trading Advisor.

     

    (ii) The
Trading Advisor shall follow and comply with, at all times, the Trading
Policies.

     

    (iii) The
Trading Advisor shall trade the Assets pursuant to the same trading programs
described in the Disclosure Information unless the Trading Manager and the
Trading Advisor agree otherwise.

     

    (iv) The
Trading Advisor is duly organized, validly existing and in good standing under
the laws of the state of its organization and is qualified to do business as a
foreign corporation or and is in good standing in each other jurisdiction in
which the nature or conduct of its business requires such qualification and the
failure to so qualify would materially adversely affect the Trading Advisor’s
ability to perform its duties under this Agreement. The Trading Advisor has full
power and authority to perform its obligations under this Agreement. The only
principals of the Trading Advisor are those set forth in the Offering Memoranda
and Disclosure Information (the “Trading Advisor Principals”).

     

    (v) The
Disclosure Information contains all statements and information required to be
included therein under the CEAct and other applicable laws, and such information
is accurate and complete in all material respects.

     

    (vi) All
references to the Trading Advisor and the Trading Advisor Principals and trading
systems, methods and performance in the Offering Memoranda are accurate and
complete in all material respects. With respect to the Trading Advisor, the
Trading Advisor Principals, and its trading systems, methods and
performance:  (i) the Offering Memoranda contains all statements and
information required to be included therein under the CEAct and the rules and
regulations thereunder, and (ii) the Offering Memoranda do not contain, and will
not during the term of this Agreement contain, any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
contained therein, in the light of the circumstances under which such statements
were made, not misleading. Except as otherwise disclosed in the Offering
Memoranda, the actual performance of each discretionary account directed by the
Trading Advisor or any principal or affiliate of the Trading Advisor over the
past five  years and year-to-date is disclosed in the Offering
Memoranda on either a composite or a stand alone basis. The information
regarding the actual performance of such accounts set forth in the Offering
Memoranda has been calculated and presented in accordance with the descriptions
therein and is complete and accurate in all material respects.

     

    (vii) This
Agreement has been duly and validly authorized, executed and delivered on behalf
of the Trading Advisor and is a valid and binding agreement of the Trading
Advisor enforceable in accordance with its terms.

     

    (viii) Each of
the Trading Advisor and the Trading Advisor Principals has all federal, state
and foreign governmental, regulatory and exchange licenses and approvals and has
effected all filings and registrations with federal, state and foreign
governmental and regulatory agencies required to conduct its business and to act
as described in the Offering Memoranda or required to perform its or his
obligations under this Agreement. The Trading Advisor is authorized and
regulated in the United Kingdom by the FSA.

     

    (ix) The
execution and delivery of this Agreement, the incurrence of the obligations set
forth herein, the consummation of the transactions contemplated herein and in
the Offering Memoranda and the payment of the fees hereunder will not violate,
or constitute a breach of, or default under, the certificate of incorporation or
bylaws (or any other organizational documents) of the Trading Advisor or any
agreement or instrument by which it is bound or of any order, rule, law or
regulation binding on it of any court or any governmental body or administrative
agency or panel or self-regulatory organization having jurisdiction over
it.

     

    (x) Since the
respective dates as of which information is given in the Disclosure Information,
and except as may otherwise be stated in or contemplated by the Disclosure
Information, there has not been any material adverse change in the condition,
financial or otherwise, business or prospects of the Trading Advisor or any
Trading Advisor Principal.

     

    (xi) Except as
set forth in the Disclosure Information there have not been and there is not
pending, or to the best of the Trading Advisor’s knowledge after due inquiry,
threatened, any action, suit or proceeding before or by any court or other
governmental body to which the Trading Advisor or any Trading Advisor Principal
is or was a party, or to which any of the assets of the Trading Advisor is or
was subject and which resulted in or might reasonably be expected to result in
any material adverse change in the condition, financial or otherwise, business
or prospects of the Trading Advisor.  None of the Trading Advisor or
any Trading Advisor Principal has received any notice of an investigation by the
NFA, CFTC or other administrative agency or self-regulatory body (whether United
States or foreign) regarding noncompliance by the Trading Advisor or any of the
Trading Advisor Principals with the CEAct or any other applicable
law.

     

    (xii) Neither
the Trading Advisor nor any Trading Advisor Principal has received, or is
entitled to receive, directly or indirectly, any commission, finder’s fee,
similar fee, or rebate from any person in connection with the organization or
operation of the Trading Company.

     

    (xiii) Participation
by the Trading Advisor in accordance with the terms hereof and as described in
the Offering Memoranda will not violate any provisions of the Investment
Advisers Act of 1940, as amended.

     

    (xiv) Neither
the Trading Advisor nor any Trading Advisor Principal will use or distribute the
Offering Memoranda or any selling literature or engage in any selling activities
whatsoever in connection with the offering of the Units.

     

    (xv) The
information in the Offering Memoranda about the Trading Advisor does not contain
any misleading or untrue statements of a material fact or omit to state a
material fact required to be stated therein to make the statements not
misleading.

     

    

    (xvi)           The
Trading Advisor is not required to register as a commodity trading advisor under
the CEAct, has made all necessary filings in connection with such exemption, and
as a result is exempt from all of the disclosure, reporting and record-keeping
requirements of the CEA.

    

    (xvii)           The
foregoing representations and warranties shall be continuing during the term of
this Agreement and if at any time any event shall occur which could make any of
the foregoing representations or warranties inaccurate, the Trading Advisor
shall promptly notify the Trading Manager and the Trading Company of the nature
of such event.

    

    (b) Covenants of the Trading
Advisor.  The Trading Advisor covenants and agrees
that:

     

    (i) The
Trading Advisor shall maintain all registrations and memberships necessary for
the Trading Advisor to continue to act as described herein and to at all times
comply in all respects with all applicable laws, rules, and regulations, to the
extent that the failure to so comply would have a materially adverse effect on
the Trading Advisor’s ability to act as described herein.

     

    (ii) The
Trading Advisor shall inform the Trading Manager promptly as soon as the Trading
Advisor or any Trading Advisor Principal becomes the subject of any
investigation, claim or proceeding of any regulatory authority having
jurisdiction over such person or becomes a named party to any litigation
materially affecting (or which may, with the passage of time, materially affect)
the business of the Trading Advisor. The Trading Advisor shall also inform the
Trading Manager promptly if the Trading Advisor or any of its officers becomes
aware of any breach of this Agreement by the Trading Advisor.

     

    (iii) The
Trading Advisor agrees to cooperate by providing information regarding itself
and its performance in the preparation of any amendments or supplements to the
Offering Memoranda (subject to the limitation set forth in Section 1
hereof).

     

    
      	
              11.  

            	
              Representations and
      Warranties of the Trading Company and the Trading Manager; Covenants of
      the Trading Manager.

            

    

     

    (a) The
Trading Company and the Trading Manager represent and warrant to the Trading
Advisor, as follows:

     

    (i) The
Trading Company has provided to the Trading Advisor the Offering Memoranda in
its current form. The Trading Company will ensure that the Members will not
utilize any amendment or supplement to the Offering Memoranda regarding the
Trading Advisor unless the Trading Advisor has received reasonable prior notice
of and a copy of such amendments or supplements and has approved any description
of the Trading Advisor contained therein.

     

    (ii) Each
Member’s organizational agreement provides for the subscription for and sale of
the Units in the respective Member; all material actions required to be taken by
each Member as a condition to the sale of its Units to qualified subscribers
therefor has been, or prior to each closing described in the Member’s
Confidential Private Placement Memorandum shall have been taken; and, upon
payment of the consideration therefor specified in each accepted subscription
agreement in such form as attached to the respective Member’s Confidential
Private Placement Memorandum, the Units will constitute valid interests in the
Member. Each Member is in material compliance with all laws, rules, regulations
and orders of any governmental agency or self-regulatory organization applicable
to the Member’s business and the offering, sale, issuance and distribution of
its Units.

     

    (iii) The
Trading Company is a limited liability company duly formed pursuant to its
Certificate of Formation, Operating Agreement and the Delaware Limited Liability
Company Act and is validly existing and in good standing under the laws of the
State of Delaware with full power and authority to engage in the trading of
futures interests and to engage in its other contemplated activities as
described in the Offering Memoranda; the Trading Company is qualified to do
business in each jurisdiction in which the nature or conduct of its business
requires such qualification and where failure to be so qualified could
materially adversely affect the Trading Company’s ability to perform its
obligations hereunder.

     

    (iv) The
Trading Manager is duly formed and validly existing and in good standing as a
limited liability company under the laws of the State of Delaware and is
qualified to do business and is in good standing as a foreign entity in each
jurisdiction in which the nature or conduct of its business requires such
qualification and where the failure to be so qualified could materially
adversely affect the Trading Manager’s ability to perform its obligations
hereunder.

     

    (v) The
Trading Company and the Trading Manager have full power and authority under
applicable law to conduct their business and to perform their respective
obligations under this Agreement and as described in the Offering
Memoranda.

     

    (vi) As of the
date hereof, the Offering Memoranda contain all statements and information
required to be included therein by the CEAct or other applicable law and at all
times subsequent thereto up to and including each closing, the Offering
Memoranda will comply in all material respects with the requirements of the
rules of the NFA, the CEAct or other applicable laws. The Offering Memoranda as
of the initial closing (as described therein), date of issue, and at each
closing will not contain any misleading or untrue statements of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading. Any supplemental sales literature,
when read in conjunction with the Offering Memoranda, will not contain any
untrue statements of a material fact or omit to state a material fact necessary
to make the statements therein, in light of the circumstances under which such
statements were made, not misleading. This representation and warranty shall
not, however, apply to any statement or omission in the Offering Memoranda or
supplemental sales literature made in reliance upon information furnished by and
relating to the Trading Advisor, its trading methods or its trading
performance.

     

    (vii) Since the
respective dates as of which information is given in the Offering Memoranda,
there has not been any material adverse change in the condition, financial or
otherwise, or business of the Trading Manager or the Trading Company, whether or
not arising in the ordinary course of business.

     

    (viii) This
Agreement has been duly and validly authorized, executed and delivered by the
Trading Manager on behalf of the Trading Company and constitutes a valid,
binding and enforceable agreement of the Trading Company and the Trading Manager
in accordance with its terms.

     

    (ix) The
execution and delivery of this Agreement, the incurrence of the obligations set
forth herein and the consummation of the transactions contemplated herein and in
the Offering Memoranda will not violate, or constitute a breach of, or default
under, the Trading Manager’s certificate of formation or operating
agreement,  or the Trading Company’s Certificate of Formation or
Operating Agreement, or any material agreement or instrument by which either the
Trading Manager or the Trading Company, as the case may be, is bound or any
material order, rule, law or regulation applicable to the Trading Manager or the
Trading Company of any court or any governmental body or administrative agency
or panel or self-regulatory organization having jurisdiction over the Trading
Manager or the Trading Company.

     

    (x) Except as
set forth in the Offering Memoranda, there has not been in the five years
preceding the date of the Offering Memoranda and there is not pending or, to the
Trading Manager’s knowledge, threatened, any action, suit or proceeding at law
or in equity before or by any court or by any federal, state, municipal or other
governmental body or any administrative, self-regulatory or commodity exchange
organization to which the Trading Manager or the Trading Company is or was a
party, or to which any of the assets of the Trading Manager or the Trading
Company is or was subject; and neither the Trading Manager nor any of the
principals of the Trading Manager (“Trading Manager Principals”) has received
any notice of an investigation by the NFA, CFTC or any other administrative or
self-regulatory organization regarding non-compliance by the Trading Manager or
the Trading Manager Principals or the Trading Company with the CEAct, the
Securities Act of 1933, as amended, or any applicable laws which are material to
an investor’s decision to invest in a Member.

     

    (xi) The
Trading Manager and the Trading Manager Principals have all federal, state and
foreign governmental, regulatory and exchange approvals and licenses, and have
effected all filings and registrations with federal, state and foreign
governmental agencies required to conduct their business and to act as described
in the Offering Memoranda or required to perform their obligations under this
Agreement (including, without limitation, registration as a commodity pool
operator under the CEAct and membership in the NFA as a commodity pool operator)
and will maintain all such required approvals, licenses, filings and
registrations for the term of this Agreement. The Trading Manager’s principals
identified in the Offering Memoranda are all of the Trading Manager
Principals.

     

    (xii) The
Trading Company is and shall remain in material compliance in all respects with
all laws, rules, regulations and orders of any government, governmental agency
or self-regulatory organization applicable to its business as described in the
Offering Memoranda and this Agreement.

     

    (xiii) The
foregoing representations and warranties shall be continuing during the term of
this Agreement and if at any time any event shall occur which could make any of
the foregoing representations or warranties inaccurate, the Trading Manager
shall promptly notify the Trading Advisor of the nature of such
event.

     

    

    (b) Covenants of the Trading
Manager. The Trading Manager covenants and

     

    agrees
that:

    (i) The
Trading Manager shall maintain all registrations and memberships necessary for
the Trading Manager to continue to act as described herein and in the Offering
Memoranda and to all times comply in all respects with all applicable laws,
rules, and regulations, to the extent that the failure to so comply would have a
materially adverse effect on the Trading Manager’s ability to act as described
herein and in the Offering Memoranda.

     

    (ii) The
Trading Manager shall inform the Trading Advisor immediately as soon as the
Trading Manager, the Trading Company or any of their principals becomes the
subject of any lawsuit, investigation, claim, or proceeding of any regulatory
authority having jurisdiction over such person or becomes a named party to any
litigation materially affecting the business of the Trading Manager or the
Trading Company. The Trading Manager shall also inform the Trading Advisor
immediately if the Trading Manager or the Trading Company or any of their
officers become aware of any material breach of this Agreement by the Trading
Manager or the Trading Company.

     

    (iii) The
Trading Company will furnish to the Trading Advisor copies of the Offering
Memoranda regarding the Trading Advisor, and all amendments and supplements
thereto, in each case as soon as available and will ensure that the Members do
not use any such amendments or supplements as to which the Trading Advisor in
writing has reasonably objected.

     

    
      	
              12.  

            	
              Merger or Transfer of
      Assets.

            

    

     

    The
Trading Manager, Trading Company or the Trading Advisor may merge or consolidate
with, or sell or otherwise transfer its business, or all or a substantial
portion of its assets, to any entity upon written notice to the other
parties.

     

    
      	
              13.  

            	
              Complete
      Agreement.

            

    

     

    This
Agreement constitutes the entire agreement between the parties with respect to
the matters referred to herein, and no other agreement, verbal or otherwise,
shall be binding as between the parties unless in writing and signed by the
party against whom enforcement is sought.

     

    
      	
              14.  

            	
              Assignment.

            

    

     

    Subject
to Section 12, hereof, this Agreement may not be assigned by any party hereto
without the express prior written consent of the other parties hereto; however,
the Trading Manager may assign this Agreement to any affiliate upon prior
written notice to any other party hereto.

     

    
      	
              15.  

            	
              Amendment.

            

    

     

    This
Agreement may not be amended except by the written consent of the parties
hereto.  No waiver of any provision of this Agreement shall be implied
from any course of dealings between the parties, from any failure by any party
to assert its rights hereunder or any occasion or series of
occasions.

     

    
      	
              16.  

            	
              Severability.

            

    

     

    The
invalidity or unenforceability of any provision of this Agreement or any
covenant herein contained shall not affect the validity or enforceability of any
other provision or covenant hereof or herein contained and any such invalid
provision or covenant shall be deemed to be severable.

     

    
      	
              17.  

            	
              Closing
      Certificates.

            

    

     

    (a) The
Trading Advisor shall, at the Members’ initial closing and at the request of the
Trading Manager at any monthly closing (as described in the Offering Memoranda),
provide the following:

     

    (i) To the
Trading Manager, the Trading Company and the Members, a certificate, dated the
date of any such closing and in form and substance satisfactory to such parties,
to the effect that;

     

    (A) the
representations and warranties by the Trading Advisor in this Agreement are
true, accurate, and complete on and as of the date of the closing, as if made on
the date of the closing; and

     

    (B) the
Trading Advisor has performed all of its obligations and satisfied all of the
conditions on its part to be performed or satisfied under this Agreement, at or
prior to the date of such closing.

     

    (ii) To the
Trading Manager, the Trading Company and the Members, a report as of the closing
date which shall present, for the period from the date after the last day
covered by the historical performance records in the Offering Memoranda to the
latest practicable day before closing, figures which shall be a continuation of
such historical performance records and which shall certify that such figures
are, to the best of such Trading Advisor’s knowledge, accurate in all material
respects.

     

    (b) The
Trading Advisor shall, at or before the Members’ initial closing (as described
in the Offering Memoranda), provide a legal opinion of the Trading Advisor’s
counsel in a form acceptable to the Trading Manager.

     

    (c) The
Trading Manager shall, at the Members’ initial closing and at the request of the
Trading Advisor at any closing (as described in the Offering Memoranda), provide
the following:

     

    (i) To the
Trading Advisor, a certificate, dated the date of such closing and in form and
substance satisfactory to the Trading Advisor, to the effect that:

     

    (A) the
representations and warranties by the Trading Company and the Trading Manager in
this Agreement are true, accurate, and complete on and as of the date of the
closing as if made on the date of the closing;

     

    (B) no order
preventing or suspending the use of the Offering Memoranda has been issued by
the CFTC, the Securities Exchange Commission, any state securities commission,
or the NFA or other self-regulatory organization and no proceedings for that
purpose shall have been instituted or are pending or, to the knowledge of the
Trading Manager, are contemplated or threatened under the CEAct;
and

     

    (C) The
Trading Company and the Trading Manager have performed all of their obligations
and satisfied all of the conditions on their part to be performed or satisfied
under this Agreement at or prior to the date of the closing.

     

    
      	
              18.  

            	
              Inconsistent
      Filings.

            

    

     

    If the
Trading Advisor intends to file, to participate in the filing of, or to publish
any description of the Trading Advisor, or of its respective principals or
trading approaches that is materially inconsistent with those in the Disclosure
Information, the Trading Advisor shall inform the Trading Manager of such
intention and shall furnish copies of all such filings or publications at least
ten Business Days prior to the date of filing or publication.

     

    
      	
              19.  

            	
              Disclosure
      Information.

            

    

     

    (a) During
the term of this Agreement, the Trading Advisor shall furnish to the Trading
Manager promptly copies of all disclosure-documents as filed in final form with
the CFTC, NFA or other self-regulatory organization by the Trading Advisor,
where required. Additionally, the Trading Advisor shall furnish to the Trading
Manager copies of all disclosure-related materials pertaining to the
Trading Advisor.  “Disclosure Information” shall include the information
described in the first sentence of this Section 19(a), as well as any other
information about the Trading Advisor provided by the Trading Advisor to the
Trading Manager.  The Trading Advisor shall furnish to the Trading
Manager copies of all communications sent to existing or prospective investors
pertaining to any  material information regarding
the Trading Advisor or its trading programs/strategies that may not be included
in the disclosure-documents or disclosure- related materials, including but not
limited to changes in principals, organizational structure, regulatory standing,
change in contact information or location/address, and current research
initiatives

     

    (b) The
Trading Manager and the Trading Company will not distribute or supplement any
promotional material relating to the Trading Advisor unless the Trading Advisor
has approved reasonable prior notice of and a copy of such promotional material
and has received such material in writing.

     

    20. Track
Record.  The track record and other performance information of
the Members shall be the property of the Trading Manager and not the Trading
Advisor.

     

    
      	
              21.  

            	
              Use of
      Name.

            

    

     

    (a) The
Trading Advisor hereby consents to the non-exclusive use by the Trading Company
of (a) the name “Morgan Stanley Smith Barney GLC I, LLC”, with respect to the
Trading Company and (b) the name “GLC Ltd.” in any documentation regarding the
Trading Company, only so long as the Trading Advisor serves as a sole trading
advisor to the Trading Company.  Each of the Trading Company and the
Trading Manager agree to indemnify and hold harmless, jointly and severally, the
Trading Advisor, its partners, directors, officers, affiliates, employees and
agents from and against any and all costs, losses, claims, damages or
liabilities, joint or several, including, without limitation, attorneys' fees
and disbursements, which may arise out of the Trading Company's or the Trading
Manager's misuse of the name “GLC Ltd.” or out of any breach of, or failure to
comply with, this Section 21.

     

    (b) Upon
termination of this Agreement, the Trading Company, at its expense, as promptly
as practicable:  (i) shall take all necessary action to cause the
Offering Memoranda and organizational documents of the Trading Company to be
amended in order to eliminate any reference to “GLC Ltd.” (except to the extent
required by law, regulation or rule); and (ii) shall cease to use in any other
manner, including, but not limited to, use in any supplemental sales material,
the name “GLC Ltd.” or any name, mark or logo type derived from it or similar to
it (except to the extent required by law, regulation or rule).

     

    
      	
              22.  

            	
              Notices.

            

    

     

    All
notices required to be delivered under this Agreement shall be in writing and
shall be effective when delivered personally on the day delivered, by facsimile
on receipt confirmation, by email followed by delivery of an original, or when
given by registered or certified mail, postage prepaid, return receipt
requested, on the second business day following the day on which it is so
mailed, addressed as follows (or to such other address as the party entitled to
notice shall hereafter designate in accordance with the terms
hereof):

     

    
      	 
      	
              if
      to the Trading Company:

            
	 
      	
              Morgan
      Stanley Smith Barney GLC I, LLC

               c/o
      Demeter Management LLC

              Managed
      Futures Department

              522
      Fifth Avenue, 13th
      Floor

              New
      York, NY  10036

              Attn:  Jeremy
      Beal

              Facsimile:
      (212) 296-6868

              Email:
      Jeremy.Beal@morganstanley.com;

            
	 
      	 
      
	 
      	
              if
      to the Trading Manager:

            
	 
      	 
      
	 
      	
              Demeter
      Management LLC

            
	 
      	
              Managed
      Futures Department

              522
      Fifth Avenue, 13th
      Floor

              New
      York, NY  10036

              Attn:  Jeremy
      Beal

              Facsimile:
      (212) 296-6868

              Email:
      Jeremy.Beal@morganstanley.com;

            
	 
      	 
      
	 
      	
              With
      a copy to:

            
	 
      	 
      
	 
      	
              Timothy
      P. Selby

              Alston
      & Bird LLP

              90
      Park Avenue

              New
      York, NY 10016

              Facsimile:
      (212) 922-3894

              Email:
      timothy.selby@alston.com

            
	 
      	
              if
      to the Trading Advisor:

               

            
	 
      	
              GLC
      Limited

              Ingeni
      Building

              17
      Broadwick Street

              London
      W1F 0AX

              United
      Kingdom

              Attn:
      Caroline Hoare and David Trudeau

              Facsimile:
      44(0)20 7942 8229

              Email:
      caroline.hoare@glcuk.com;
      david.trudeau@glcuk.com

               

               

            

    

    
      	
              23.  

            	
              Continuing Nature of
      Representations Warranties and Covenants:
  Survival.

            

    

     

    All
representations, warranties and covenants contained in this Agreement shall be
continuing during the term of this Agreement and the provisions of this
Agreement shall survive the termination of this Agreement with respect to any
matter arising while this Agreement was in effect.  Each party hereby
agrees that as of the date of this Agreement it is, and during its term shall
be, in compliance with its representations, warranties and covenants herein
contained.  In addition, if at any time any event occurs which would
make any of such representations, warranties or covenants not true, the affected
party will use its best efforts to promptly notify the other parties of such
fact.

     

    
      	
              24.  

            	
              Third-Party
      Beneficiaries.

            

    

     

    Except
for each of the Members who shall be a third-party beneficiary of the applicable
provisions of this Agreement, this Agreement is not intended and shall not
convey any rights to a party to this Agreement.

     

    
      	
              25.  

            	
              Governing
      Law.

            

    

     

    This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York.  If any action or proceeding shall be brought
by a party to this Agreement or to enforce any right or remedy under this
Agreement, each party hereto hereby consents and will submit to the jurisdiction
of the courts of the State of New York or any Federal court sitting in the
County, City and State of New York.  Any action or proceeding brought
by any party to this Agreement to enforce any right, assert any claim or obtain
any relief whatsoever in connection with this Agreement shall be brought by such
party exclusively in the courts of the State of New York or any federal court
sitting in the County, City and State of New York.

     

    
      	
              26.  

            	
              Remedies.

            

    

     

    In any
action or proceeding arising out of any of the provisions of this Agreement, the
Trading Advisor agrees not to seek any prejudgment equitable or ancillary
relief. The Trading Advisor agrees that its sole remedy in any such action or
proceeding shall be to seek actual monetary damages for any breach of this
Agreement, except that Trading Advisor may seek a declaratory judgment with
respect to the indemnification provisions of this Agreement.

     

    
      	
              27.  

            	
              Headings.

            

    

     

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

     

    
      	
              28.  

            	
              Successors.

            

    

     

    This
Agreement including the representations, warranties and covenants contained
herein shall be binding upon and inure to the benefit of the parties hereto,
their successors and permitted assigns, and no other person shall have any right
or obligation under this Agreement.

     

    
      	
              29.  

            	
              Counterparts.

            

    

     

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

     

    
      	
              30.  

            	
              Waiver of
      Breach.

            

    

     

    The
waiver by any party of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach or of a breach by
any other party.  The failure of a party to insist upon strict
adherence to any provision of the Agreement shall not constitute a waiver or
thereafter deprive such party of the right to insist upon strict
adherence.

     

    

      

    

     

      1
Confidential material redacted and filed separately with the
Commission.

    

     

      2
Confidential material redacted and filed separately with the
Commission.

    

    
      
        
          A-

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      	 
      	
              MORGAN
      STANLEY SMITH BARNEY GLC I,
      LLC

              by
      Demeter Management LLC

              Trading
      Manager

            
	 
      	
              By                                                      

              Walter Davis

              Chairman and
      President

            
	 
      	 
      
	 
      	
              DEMETER
      MANAGEMENT LLC

               

            
	 
      	
              By                                                      

              Walter Davis

              Chairman and
      President

            
	 
      	 
      
	 
      	
              GLC
      LTD.

              By                                                      

              Name:

              Title:

            

    

    

    
      
        
          A-

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    Annex
I

    

    

    *3

    

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    EXHIBIT
A

     

    Morgan
Stanley Smith Barney Managed Futures

    MSC
Fund Operations Procedures

    08/20/09

    

    

    Following
is a list of abbreviations used in this document:

    
      	
              ·  

            	
               “Fund(s)”
      refers to Morgan Stanley Smith Barney Managed Futures Funds that utilize
      MS&Co/MSIP/MSCG as a clearing commodity
  broker.

            

    

    
      	
              ·  

            	
              “Futures”
      is used to identify exchange traded futures, or forward contracts, and
      options on the same, that are cleared through a clearing
      house.

            

    

    
      	
              ·  

            	
              “FX”
      is used to identify non-exchange traded forward currency contracts, and
      options on the same, which are settled directly between the principals of
      the trades.

            

    

    
      	
              ·  

            	
              “General
      Partner” shall mean Demeter Management
LLC.

            

    

    
      	
              ·  

            	
              “Trading
      Manager” shall mean Demeter Management
LLC.

            

    

    
      	
              ·  

            	
               “MF”
      is Morgan Stanley Smith Barney Managed
Futures.

            

    

    
      	
              ·  

            	
              “MSC”
      is MS&Co. and/or MSIP and/or MSCG (the Clearing Commodity Broker or FX
      Counterparty, as appropriate).

            

    

    
      	
              ·  

            	
              “MS&Co”
      is Morgan Stanley & Co., Inc. a subsidiary of Morgan Stanley (the
      Clearing Commodity Broker or FX (Non-Options) Counterparty as
      appropriate).

            

    

    
      	
              ·  

            	
              “MSIP”
      is Morgan Stanley & Co. International plc a subsidiary of Morgan
      Stanley (a sub Clearing Commodity Broker).  MSIP clears LME
      transactions on behalf of the
Funds.

            

    

    
      	
              ·  

            	
              “MSCG”
      is Morgan Stanley Capital Group a subsidiary of Morgan Stanley (the FX
      Options Counterparty).

            

    

    

    CONTACT
INFORMATION:

    

    Following
are the Morgan Stanley departments involved in servicing the Funds and the
corresponding contact information.

    

    
      	
              Abbreviation

            	
              Department

            	
              Primary
      Contact

            	
              Telephone

            	
              E-mail

            
	
              Futures
      Desk

            	
              MSC
      Futures Trading Desk

            	
              Brian
      Jackman

              James
      Stedman

            	
              +1
      212 761-1782

              +1
      212 761-1093

            	
              Brian.Jackman@morganstanley.com

              James.Stedman@morganstanley.com

            
	
              Futures
      Ops

            	
              MSC
      Futures Operations

            	
              Steve
      Bucello

               

            	
              +1
      212 276-0477

               

            	
              Steve.Bucello@morganstanley.com

               

            
	
              FX
      Desk

            	
              MSC
      Foreign Exchange Trading Desk

            	
              Richard
      Condon

              Julia
      Clancy Sands

              John
      Silver

            	
              +1
      212 761-2700

              +1
      212 761-2700

              +1
      212 761-2700

            	
              Richard.Condon@morganstanley.com

              Julia.Sands@morganstanley.com

              John.Silver@morganstanley.com

            
	
              FX
      Ops

            	
              MSC
      Foreign Exchange Operations

            	
              John
      Fusco

            	
              +1
      718 754-4868

            	
              John.Fusco@morganstanley.com

            
	
              MF
      Accounting

            	
              MF
      Accounting

            	
              Joe
      Tromello

              Kevin
      Scully

            	
              +1
      212 276-5184

              +1
      212 276-5121

            	
              Joe.Tromello@morganstanley.com

              Kevin.Scully@morganstanley.com

            
	
              MF
      Ops

            	
              MF
      Trading Operations

            	
              Laura
      Finne

               

            	
              +1
      212 296-6813

            	
              Laura.Finne@morganstaley.com

            
	
              MF
      IM

            	
              MF
      Investment Management

            	
              Patrick
      Egan

              Alper
      Daglioglu

            	
              +1
      212 296-6808

              +1
      212 296-6807

            	
              Patrick.Egan@morganstanley.com

              Alper.Daglioglu@morganstanley.com

            
	
              MF
      Strat Plan

            	
              MF
      Strategic Planning

            	
              Chris
      Barry

            	
              +1
      212 296-6812

            	
              Chris.Barry@morganstanley.com

            

    

    

    FUND
ACCOUNTS:

    Account
Configuration

    
      	
              ·  

            	
              Futures and Futures Options
      Trading - For each CTA trading program three Fund trading accounts
      will be assigned.  A MS&Co segregated account, prefix
      052.  A MS&Co secured account, prefix
      05A.   A MSIP non-regulated (by the CFTC) account, prefix
      045.

            

    

    
      	
              ·  

            	
              FX (Non-Options) Trading
      - One Fund account for each CTA trading program will be assigned at
      MS&Co, prefix 058.

            

    

    
      	
              ·  

            	
              FX Options Trading – One
      Fund account for each CTA trading program will be assigned at MSCG (if
      needed), prefix 057.

            

    

    
      	
              ·  

            	
              Excess and FX Custody Accounts
      – For each CTA trading program two Fund accounts will be set up at
      MS&Co.  One account will be designated as a custody account
      for MS&Co FX.  MF Ops will maintain equity in the custody
      account sufficient to cover margin requirements of the FX trading
      account.  The second account will contain the balance of excess
      equity that is not required in the custody and futures trading
      accounts.

            

    

    Statements

    
      	
              ·  

            	
              Futures – The CTA should
      contact Futures Ops regarding access to Fund futures account
      statements.

            

    

    
      	
              ·  

            	
              FX – The CTA should
      contact FX Ops regarding access to Fund FX account
    statements.

            

    

    
      	
              ·  

            	
              Excess and Custody – The
      CTA should contact MF Ops regarding access to the Fund account statements
      at MS&Co.

            

    

    

    FX
TRADING:

    FX
Order Execution

    
      	
              ·  

            	
              FX
      trading of the Funds must be executed through the MSC FX Desk, unless the
      General Partner and/or Trading Manager otherwise agrees in a form
      acceptable to the General Partner and/or Trading Manager.  The
      Trading Advisor may execute trades through F/X brokers other than those
      employed by MS & Co. and its affiliates so long as arrangements
      (including executed give-up agreements) are made for such floor brokers to
      “give-up” or transfer the positions to MS & Co. in conformity with the
      Trading Policies.

            

    

    
      	
              ·  

            	
              When
      trading FX Options, all premiums (on outright trades and cross currency
      trades) must be booked at the clearing broker so that the premium is
      stated in USD.

            

    

    EFP
Order Execution

    
      	
              ·  

            	
              The
      CTA may utilize the FX Desk to execute EFP transactions. The futures leg
      of an EFP will be subject to the futures brokerage fee.  The CTA
      should contact the FX Desk for information on EFP trade execution
      procedures.

            

    

    

    Foreign
Currency Conversions

    
      	
              ·  

            	
              The
      CTA is responsible for conversion into US dollars of Fund foreign currency
      balances created as a result of futures and/or FX
  trading.

            

    

    

    FUTURES
TRADING:

    Order
Execution Service

    
      	
              ·  

            	
              The
      MSC Futures Desk can provide the CTA with order execution
      facilities.  The CTA should contact the Futures Desk for
      information on trade execution
procedures.

            

    

    “Give
Up” Order Execution

    
      	
              ·  

            	
              The
      CTA shall ensure that a “give-up” execution agreement is in place prior to
      the execution of any trade outside of MSC’s execution facilities in
      accordance with this Agreement or as otherwise provided in writing to the
      CTA by the General Partner and/or Trading
  Manager.

            

    

    
      	
              ·  

            	
              On
      exchanges allowing “give up” execution, the CTA may have orders executed
      away from MSC and give up trades to MSC for clearing.  The CTA
      should contact Futures Ops for information on trade “give up”
      procedures.  The CTA should ensure that executing brokers give
      trades up on a timely basis.  The CTA should ensure that
      executing brokers make timely payment on price adjustments, when
      applicable.   For futures trades at exchanges where give up
      execution is not allowed, the CTA must use the execution facilities
      provided by the Clearing Commodity
Broker.

            

    

     “Give
Up” Agreements

    
      	
              ·  

            	
              The
      four party FIA/FOA uniform “give up” agreement is the acceptable form for
      futures “give ups”.  The trader version FIA/FOA EFP agreement is
      the acceptable form for EFP “give ups”.  The CTA should send
      agreements that have been signed by both the CTA and executing broker to
      MF Ops, attention Laura Finne , Morgan Stanley Smith Barney, Managed
      Futures, 522 Fifth Avenue, 13th Floor, New York, NY 10036 or through EGUS
      (FIA Electronic Give Up System).

            

    

    “Give
Up” Execution Payment

    
      	
              ·  

            	
              For
      Chicago Markets (CBT, CME and affiliated exchange divisions), payment for
      floor brokerage will be handled via the ATOM system or current
      exchange/clearing payment method at its standard rate to the party from
      whom it directly receives the trade.  Payment of an execution
      service fee (“Give Up Fee”) will be handled exclusively through the GAINS
      system or current exchange/clearing payment method at a rate not to exceed
      the amount permitted by the General Partner and/or Trading Manager from
      time to time (the “Execution Allowance”).  The “Execution
      Allowance” shall be based on the General Partner’s and/or Trading
      Manager’s assessment for prevailing competitive rates for “Give Up
      Fees”.

            

    

    
      	
              ·  

            	
              For
      New York Markets (NYBOT, NYMEX, NYFE and affiliated exchange divisions),
      payment of “Give Up Fees” will be handled exclusively through the ATOM
      system or current exchange/ clearing payment method at a rate not to
      exceed the “Execution Allowance” to the party from whom it directly
      receives the trade.

            

    

    
      	
              ·  

            	
              For
      all other markets, MSC or its carrying broker, when utilized by MSC, will
      handle payment of “Give Up Fees” to the party from whom it directly
      receives the trade at a rate not to exceed the “Execution
      Allowance”.  Bills for “Give Up Fees” should be sent directly to
      MSC or its applicable carrying
broker.

            

    

    
      	
              ·  

            	
              Futures
      Ops will handle payment of “Give Up
Fees”.

            

    

    

    

    ACCOUNT
MAINTENANCE:

    Trade
Allocations

    
      	
              ·  

            	
              The
      CTA is responsible for determining the trade allocation procedure for Fund
      trading accounts.  The CTA should ensure that the procedure was
      followed correctly, and that trades are booked accordingly in Fund
      accounts.

            

    

    Trade
Reporting; (Futures)

    
      	
              ·  

            	
              The
      CTA is responsible for reporting all trades to Futures Ops on a timely
      basis to facilitate clearing and reduce operational risk.  The
      CTA should contact Futures Ops for additional
  information.

            

    

    Daily
Trade Checkout

    
      	
              ·  

            	
              The
      CTA is responsible for daily, end of trading day, checkout of all trades
      (including currency conversion trades) with Futures and FX
      Ops.  The CTA should contact Futures and FX Ops to determine
      specific checkout procedures.

            

    

    Daily
Statement Reconciliation

    
      	
              ·  

            	
              The
      CTA is responsible for daily statement trade activity and position
      balancing with FX and Futures Operations.  The CTA should
      contact FX and Futures Ops to determine specific balancing
      procedures.

            

    

    
      	
              ·  

            	
              The
      CTA should provide a daily, trade reconciliation for each Fund account to
      MF Ops, by 10:00 a.m. EST/EDT.  Reconciliation reports can be
      emailed to mf.ops@morganstanley.com and should specify trades to be added
      or canceled in each account, with a valuation versus the current
      settlement price of the product, and any pending cash adjustments due from
      executing brokers or for bookkeeping corrections.  (MF Ops
      provides MF Accounting/the Administrator with adjusting information for
      the calculation of NAV.)  Please contact MF Ops if you have any
      questions regarding this procedure.

            

    

    
      	
              ·  

            	
              The
      CTA should notify MF Ops of any incorrect settlement prices it becomes
      aware of with regard to the MSC account statements of a
    Fund.

            

    

    Monitoring
of Delivery Periods and Option Expirations

    
      	
              ·  

            	
              The
      CTA is responsible for monitoring delivery periods (first notice dates and
      last trade dates), option expirations (option expiration and last trade
      dates), and forward settlement and/or maturity
  dates.

            

    

    
      	
              ·  

            	
              The
      CTA should take appropriate actions to ensure that futures contracts do
      not result in delivery.

            

    

    
      	
              ·  

            	
              The
      CTA should ensure that their intentions regarding any open option
      positions, at the time of expiration, have been communicated appropriately
      to the Futures or FX Ops areas.  Contact Futures and FX Ops for
      specific communication procedures.

            

    

    Margin
Maintenance and Cash Transaction (Journal) Reconciliation

    
      	
              ·  

            	
              MF
      Ops is responsible for balancing of all journal entries in all Fund
      accounts and for ensuring the requisite corrective action is taken for
      each reconciling item.  Please note, the CTA is responsible for
      reconciling all cash entries resulting from trading activity, such as APS
      residuals and FX settlements.

            

    

    
      	
              ·  

            	
              MF
      Ops is responsible for the authorization of Fund margin transfers between
      MSC and MS&Co accounts for maintaining equity (and/or collateral) in
      amounts sufficient to meet Fund margin requirements in the MSC Futures
      accounts and the FX custody
accounts.

            

    

    

    TRADING LEVEL
NOTIFICATION:

    
      	
              ·  

            	
              For
      new trading allocations, MF IM will provide notification to the CTA of
      trading authorization and the trading commencement date, along with
      notification of the initial trading
level.

            

    

    
      	
              ·  

            	
              Thereafter,
      notification of estimated monthly net additions/withdrawals will be
      distributed by MF Strat Plan.  On the third to last business day
      of each month a preliminary estimate will be provided.  On the
      first business day of each month a final estimate will be
      given.  Any material adjustment (1% of account equity) from the
      final estimate to the actual will be provided.  Notification
      will be made via fax or email and the CTA will be asked to acknowledge
      receipt via fax or email.  Questions regarding this procedure
      can be directed to MF Strat Plan.

            

    

    
      	
              ·  

            	
              Subsequent
      to a Fund’s monthly closing, actual additions and withdrawals will be
      processed by MF Accounting/the Administrator via journal entry in the Fund
      “excess” account at MS&Co.

            

    

    
      	
              ·  

            	
              Any
      other trading level/asset allocation changes will be communicated in
      writing from MF IM or MF Strat
Plan.

            

    

     
 

    FUND
ACCOUNTING:

    Net
Asset Value Calculation

    
      	
              ·  

            	
              MF
      Accounting/the Administrator is responsible for determination of daily NAV
      estimates for the Funds.

            

    

    
      	
              ·  

            	
              MF
      Accounting/the Administrator will determine the actual month end NAV of a
      Fund during the monthly closing
process.

            

    

    Brokerage
Commission and Transaction Fees

    
      	
              ·  

            	
              Brokerage
      commissions for each Fund will be charged in a manner consistent with the
      prospectus or offering memorandum.  The CTA should contact MF
      Accounting/the Administrator for additional
  information.

            

    

    Fund
Fee Processing

    
      	
              ·  

            	
              Fund
      interest and all Fund fees, exclusive of brokerage commissions and
      transaction fees, will be processed in a Funds “excess” account at
      MS&Co.

            

    

    
      	
              ·  

            	
              MF
      Accounting/the Administrator will determine fees due to the CTA during the
      monthly closing process and notify the CTA of the fees via the monthly
      performance tables.  The CTA should provide contact information
      regarding fees to MF Accounting/the
  Administrator.

            

    

    
      	
              ·  

            	
              MF
      Accounting/the Administrator will make payment of fees to the CTA via wire
      transfer.  The CTA should provide wire instructions to MF
      Accounting/the Administrator.

            

    

    

    BORROWING:

    
      	
              ·  

            	
              The
      CTA shall not use borrowed money to leverage any trades, unless otherwise
      approved by the General Partner and/or Trading
  Manager.

            

    

    

      

    

     

      3
Confidential material redacted and filed separately with the
Commission.

    

    
      
        
          A-

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
B

     

    COMMODITY
TRADING AUTHORITY

     

    Dear GLC
Ltd.:

     

    Morgan
Stanley Smith Barney GLC I, LLC (the “Trading Company”) and Demeter Management
LLC, the Trading Company’s Trading Manager (the “Trading Manager”) do hereby
make, constitute and appoint you as the Trading Company’s attorney-in-fact to
buy and sell futures and forward contracts through such futures commission
merchants as shall be agreed on by you and the Trading Manager on behalf of the
Trading Company, pursuant to the trading program identified in the Agreement
among the Trading Company, the Trading Manger and you as of the ____ day of
_________, 2009, as amended or supplemented, and in accordance with the terms
and conditions of said Agreement.

     

    This
authorization shall terminate and be null, void and of no further effect
simultaneously with the termination of the said Agreement.

     

    
      	 
      	
              Very
      truly yours,

               

            
	 
      	
              MORGAN
      STANLEY SMITH BARNEY GLC I,
      LLC

              by
      Demeter Management LLC

              Trading
      Manager

            
	 
      	
              By                                                      

              Walter Davis

              Chairman and
      President

            
	 
      	 
      
	 
      	
              DEMETER
      MANAGEMENT LLC

               

            
	 
      	
              By                                                      

              Walter Davis

              Chairman and
      President

            

    

    

     

    
      
        
          B-

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    FUTURES
INTERSTS TRADED

     

    
      	
              Instrument

            
	
              Listed
      futures and exchange traded options: equity indices, currencies,
      government bonds, interest rates

               

            
	
              FX
      Spot

            
	
              FX
      Forwards

            

    

    

     

    
      
        
          C-ex10-1.htm

    Exhibit 10.1

    FARM LEASE

    

    THIS
LEASE is made the___ of ______________, 2008 between ROHAN MARLEY of 1240 Vista
Lane, Miami, Florida 33156, United States of America (hereinafter called “the
Landlord”) of the ONE PART, and MARLEY COFFEE, INC., a corporation incorporated
under the laws of the state of Nevada, of 357 South Fairfax Ave Suite 321, Los
Angeles, California 90036, United States of America (hereinafter called “the
Tenant”) of the OTHER PART.

    

    RECITALS

     

    
      	
              1.

            	
              The
      Landlord is registered as the proprietor of an estate in fee simple in the
      land known as part of Chepstowe in the parish of Portland being the land
      comprised in Certificates of Title registered at Volume 713 Folio 77 and
      Volume 1102 Folio 549 of the Register Book of Titles (hereinafter called
      “the Land”).

            

    

     

    
      	
              2.

            	
              The
      Landlord has agreed to lease to the Tenant the Land, together with a shed
      thereon (hereinafter called “the Farm”), at the rent and upon the terms
      and conditions hereinafter
contained.

            

    

     

    

    NOW THIS
LEASE WITNESSETH as follows:

    

    
      	
              1.

            	
              Lease of
      Farm

            

    

    

    In
consideration of the rents, covenants and agreements hereafter reserved and
contained on the part of the Tenant to be paid, observed and performed, the
Landlord HEREBY LEASES to the Tenant, and the Tenant rents from the Landlord,
the Farm, subject to the terms and conditions herein set forth.

    

    
      	
              2.

            	
              Term of the
      Lease

            

    

    

    The term
of this Lease shall commence on February 15, 2008 (hereinafter called “the
Commencement Date”) and shall end (unless otherwise extended or terminated as
hereinafter provided) at midnight on February 14, 2018 (“the Termination
Date”).

    

    
      	
              3.

            	
              Lease
      Year

            

    

    

    The term
“Lease Year” as used herein shall mean consecutive twelve (12) month periods
commencing on the Commencement Date of this Lease.

    

    
      	
              4.

            	
              Base
      Rent

            

    

    

    The
Tenant covenants and agrees to pay the Landlord the Base Rent of One Thousand
United States Dollars (US$1,000.00) per annum, (J$71,500.00 for the purposes of
Stamp Duty only) payable in advance, without deduction or setoffs and without
prior demand therefor, on execution of this Lease.  Each subsequent
rental payment hereunder shall be paid on the 15th day of
December in each subsequent Lease Year.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              Time and Place of
      Payment

            

    

     

    The
Tenant shall promptly pay all rentals and other charges and render all
statements herein prescribed at the office of the Landlord, or to such other
person or company, and at such other place, as shall be designated by the
Landlord in writing on or before each rental payment date.  Subject to
the provisions of Clause 34 hereof, any rental payment received by the Landlord
after five (5) working days from its due date [or of receipt of a General
Consumption Tax (“GCT”) invoice from the Landlord, if applicable] shall incur a
late charge equal to five percent (5%) of such payment to compensate the
Landlord for his administrative expenses in connection with such late payment.
If the Landlord shall pay any monies, or incur any expenses in correction of any
violation of any covenant or of any other obligation of the Tenant herein set
forth or implied herefrom, the amounts so paid or incurred shall, at the
Landlord's option and on notice to the Tenant, be considered additional rental
and payable by the Tenant, with the first installment of rental thereafter to
become due and payable, and may be collected or enforced as by law provided in
respect to rentals.

    

    
      	
              6.

            	
              General Consumption
      Tax or Other Tax

            

    

     

    The
Tenant shall also pay GCT, and all other tax which may in the future be imposed,
levied or assessed against the rent or any other charge or payment required
herein by the Government of Jamaica, unless the Tenant is exempt from GCT and
such other tax.  If applicable, the Tenant shall, upon presentation of
a GCT invoice by the Landlord, make the payment of GCT on a monthly basis,
concurrently with payment of the Base Rent.

    

    
      	
              7.

            	
              Possession of
      Farm

            

    

    

    The
Tenant shall occupy the Farm and shall continuously conduct the business stated
below on the Farm.

    

    
      	
              8.

            	
              Use of
      Farm

            

    

     

    
      	
              8.1

            	
              The
      Tenant will use and occupy the Farm only for the purposes of growing
      coffee, fruits and vegetables, raising bees and producing honey, and all
      activities related thereto, and for no other use and
      purpose.  In the event that the Tenant uses the Farm for
      purposes not expressly permitted herein, the Landlord may, in addition to
      all other remedies available to it, terminate this Lease or restrain said
      improper use by injunction.  The Tenant shall not perform any
      acts or carry on any practices which may damage the Land or be a nuisance
      which will result in the increase of fire and/or crop insurance
      premiums.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              8.2

            	
              Save
      as in pursuance of the permitted use specified in the previous paragraph
      of this Clause, the Tenant shall not store or bring upon the Farm any
      articles of an especially combustible, inflammable or dangerous nature,
      and not to do or permit or suffer to be done anything by reason whereof
      the present or any future policy of insurance against fire or crop loss in
      respect of the Farm may be rendered void or voidable, or whereby the rate
      of premium thereof may be
increased.

            

    

    

    
      	
              8.3

            	
              In
      the event the use set forth above shall at any time prior to or during the
      Term hereof, be prohibited by any law or regulation affecting the Farm,
      preventing the Tenant from operating its business on the Farm, the Tenant
      shall have the right to terminate this Lease upon sixty (60) days written
      notice to the Landlord, which termination shall be the sole remedy of the
      Tenant in the event of such
prohibition.

            

    

    

    
      	
              9.

            	
              Operation and
      Maintenance of Farm

            

    

    

    
      	
              9.1

            	
              The
      Tenant shall provide the machinery and equipment listed in Appendix A
      hereof, which are required to operate the Farm
  properly.

            

    

    

    
      	
              9.2

            	
              In
      order to operate the Farm efficiently and to maintain it in a high state
      of productivity, the Tenant agrees to provide the labour, which in its
      opinion, acting in good faith is necessary to maintain the Farm and it’s
      improvement during the Term hereof.

            

    

    

    
      	
              9.3

            	
              The
      Tenant shall pay all operating costs in respect of the Farm.  It
      is further agreed, understood and acknowledged that the Tenant has already
      expended the sum of J$3,065,945.64 or US$45,760.38 in respect of the Farm,
      the details of which are specified in Appendix
  B.

            

    

    

    
      	
              9.4

            	
              All
      coffee beans grown on the Farm during the term of this Lease shall be the
      sole property of the Tenant.

            

    

    

    
      	
              10.

            	
              Environmental Actions
      and Indemnification

            

    

     

    
      	
              10.1

            	
              The
      Tenant agrees not to store on the Farm, any hazardous materials or any
      type, as defined by any governmental agency, or any other toxic,
      corrosive, reactive, or ignitable material without first obtaining in each
      case all governmental approval and permits required for such
      storage.

            

    

    

    
      	
              10.2

            	
              The
      Tenant agrees not to generate hazardous
  effluents.

            

    

    

    
      	
              10.3

            	
              The
      Tenant agrees to allow reasonable access to facilities for monitoring of
      the above by the Landlord or representatives of the National Environment
      & Planning Agency (“NEPA”) to assure compliance with the above, as
      well as any other conditions relating to the use of the
      Farm.  The Tenant agrees that it will comply with all
      governmental requirements relating to public health and the
      environment.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              11.

            	
              Construction by the
      Tenant

            

    

    

    All
construction work done by the Tenant on the Farm and otherwise shall be
performed in a good and workmanlike manner, in compliance with all governmental
requirements.  Without limitation to the generality of the foregoing,
the Landlord shall have the right to require that such work be performed in
accordance with other reasonable rules and regulations which the Landlord may,
from time to time prescribe.  The Tenant agrees to indemnify the
Landlord and hold him harmless against any loss, liability or damage, resulting
from such work, and the Tenant shall, if requested by the Landlord, furnish a
bond or other security satisfactory to the Landlord, against any such loss,
liability or damage.  The Tenant shall be liable to the Landlord for
any damages resulting from labour disputes, strikes or demonstrations resulting
from the Tenant's construction or alteration work with the employment of
workers.

    

    
      	
              12.

            	
              Additions and
      Improvements by the Tenant

            

    

     

    All
additions and improvements made by the Tenant, or made by the Landlord on the
Tenant's behalf by agreement under this Lease, shall remain the property of the
Tenant for the term of this Lease, or any extension or renewal
thereof.  Such additions and improvements may be removed from the Farm
by the Tenant or its agents without prior consent from the
Landlord.  Provided however that the Tenant shall reinstate the Farm,
as far as is practicable, to the condition in which the property was on the
Commencement Date of this Lease.  Upon expiration of this Lease, or
any renewal term thereof, the Landlord shall have the option of requiring the
Tenant to remove all such additions and improvements, and restore the Farm as
provided in Clause 13 hereof.  If the Tenant fails to remove such
additions and improvements and restore the Farm, then such additions and
improvements shall become the property of the Landlord and in such event, should
the Landlord so elect, the Landlord may restore the property to its original
condition, as far as is practicable, for which cost, the Tenant shall be
responsible and shall pay promptly upon demand.

    

    
      	
              13.

            	
              Responsibilities of
      Tenant

            

    

     

    
      	
              13.1

            	
              The
      Tenant shall comply with the requirements of all laws, regulations or
      orders of all governmental authorities and will take good care of the
      Farm.

            

    

     

    
      	
              13.2

            	
              The
      Tenant shall conduct all farming operations in an efficient and husband
      like manner.  This includes, among other things, performing farm
      operations on time and following generally approved coffee, fruit,
      vegetable and honey production
      practices.

            

    

     

    
      	
              13.3

            	
              The
      Tenant shall use its reasonable and best efforts to control soil erosion
      according to an approved conservation plan, keep in good repair all
      terraces, open ditches, inlets, and outlets of tile drains, preserve, all
      established watercourses or ditches, including grass waterways, and
      refrain from any operation or practice that will injure such
      structures.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              13.4

            	
              At
      the expiration of the tenancy hereby created, the Tenant shall surrender
      the Farm in the same condition as the Farm was in upon delivery of
      possession under this Lease, as far as is practicable, and damage by
      unavoidable casualty excepted.  The Tenant shall remove all its
      machinery and equipment and any alterations or improvements which the
      Landlord requests to be removed before surrendering the property as
      aforesaid and shall repair any damage to the Farm caused
      thereby.  The Tenant's obligation to observe or perform this
      covenant shall survive the expiration or other termination of the term of
      the Lease.

            

    

     

    
      	
              13.5

            	
              The
      Tenant shall give immediate notice to the Landlord (and telephonic notice,
      where possible, in the case of an emergency) in case of flood, Acts of
      God, fire or accidents occurring on or to the
  Farm.

            

    

     

    
      	
              13.6

            	
              The
      Tenant shall pay the cost of water rates, electricity and telephone
      services supplied to the Farm and to make its own arrangements with the
      suppliers thereof.

            

    

     

    
      	
              13.7

            	
              The
      Tenant shall not obstruct any walkway, access to, or egress from the Farm
      or any part thereof, and shall dispose of all refuse by proper means to
      the satisfaction of the Landlord.

            

    

    

    
      	
              13.8

            	
              The
      Tenant shall be responsible for all property taxes payable in respect of
      the Land.

            

    

    

    
      	
              14.

            	
              Quiet
      Enjoyment

            

    

     

    Upon
payment by the Tenant of the rents herein provided, and upon the observance and
performance of all the covenants, terms and conditions on the Tenant's part to
be observed and performed, the Tenant shall peaceably and quietly hold and enjoy
the Farm for the term hereby demised without hindrance or interruption by the
Landlord or any other person or persons lawfully claiming by, through or under
the Landlord, subject, nevertheless, to the terms and conditions of this
Lease.

    

    
      	
              15.

            	
              Assignment and
      Subletting

            

    

     

    The
Tenant shall not assign or in any manner transfer, or grant or suffer any
encumbrance of the Tenant’s interest in this Lease, in whole or in part, nor
sublet all or any portion of the Farm, or grant a license, concession or other
right of occupancy of any portion of the Farm.

    

    
      	
              16.

            	
              Assignment by the
      Landlord

            

    

     

    In the
event of the transfer and assignment by the Landlord of his interest in this
Lease and/or Farm the transferee or assignee shall expressly assume the
Landlord's obligations under this Lease, and the Landlord shall thereby be
released from any further obligations thereunder, and the Tenant agrees to look
solely to such transferee or assignee for performance of such
obligations.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              17.

            	
              Waste or
      Nuisance

            

    

     

    The
Tenant shall not commit or suffer to be committed any waste upon the Farm or any
nuisance or other act or thing which may disturb the quiet enjoyment of
occupants of adjoining properties, or which may adversely affect the Landlord's
interest in the Farm or the Land.

    

    
      	
              18.

            	
              Government
      Regulations

            

    

     

    The
Tenant shall, at the Tenant's sole cost and expense, comply with all laws,
orders and regulations and other applicable requirements of all governmental
authorities, now in force, or which may hereafter be in force, pertaining to, or
affecting the Tenant’s use or occupancy of the Farm, and shall faithfully
observe in the use and occupancy of the Farm all statutes and regulations now in
force or which may hereafter be in force.  The Tenant shall indemnify
and save the Landlord harmless from all costs, losses, expenses or damages
resulting from the Tenant's failure to perform its obligations under this
Clause.

    

    
      19.          
Total
Condemnation

    

    

    If the
whole of the Farm shall be acquired or condemned by compulsory acquisition for
any public or quasi-public use or purpose, then the term of this Lease shall
cease and terminate as of the date of title vesting in any governmental
authority, and all rentals and other charges shall be paid up to that date and
the Tenant shall have no claim against the Landlord for the value of any
unexpired term of this Lease.

    

    
      	
              20.

            	
              Partial
      Condemnation

            

    

     

    If any
part of the Farm shall be acquired or condemned by compulsory acquisition for
any public or quasi-public use or purpose, and in the event that such partial
acquisition or condemnation shall, in the opinion of the Landlord and the
Tenant, render the Farm unsuitable for the business of the Tenant, then the
Landlord and the Tenant shall each have the right to terminate this Lease by
notice given to the other within sixty (60) days after the date of title vesting
in any governmental authority and the Tenant shall have no claim against the
Landlord for the value of any unexpired term of this Lease.  In the
event of a partial acquisition or condemnation which is not extensive enough to
render the Farm unsuitable for the business of the Tenant, then the Landlord
shall promptly restore the Farm (exclusive of the Tenant's machinery and
equipment) to a condition comparable to its condition at the time of such
condemnation; provided that the Landlord shall not in any event be required to
spend for such repair, restoration or alteration work an amount in excess of the
respective amounts received by the Landlord as damages for the acquisition of
such part of the Farm.  As used herein, the amount “received by the
Landlord” shall mean that portion of the award or damages in condemnation
received by the Landlord from the condemning authority which is free and clear
of all prior claims or collections by the holders of any mortgages or deeds of
trust, and this Lease shall continue in force and effect except that the fixed
minimum annual rent shall be reduced in proportion to the portion of the Farm
lost in the acquisition.  If more than twenty (20%) percent of the
arable area of the Farm shall be acquired as aforesaid (whether or not the Farm
shall be affected by the acquisition), the Landlord and the Tenant shall have
the right to terminate this Lease by notice given to the other within sixty (60)
days after the date of title vesting in any governmental authority and the
Tenant shall have no claim against the Landlord for the value of the unexpired
term of this Lease.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              21.

            	
              Landlord's
      Damages

            

    

     

    In the
event of any condemnation or taking as hereinabove provided, whether in whole or
partial, the Tenant shall not be entitled to any percentage of the award, as
damages or otherwise, for such condemnation and the Landlord is to receive the
full amount of such award, the Tenant hereby expressly waiving any right or
claim to any part thereof.

    

    
      	
              22.

            	
              Tenant's
      Damages

            

    

     

    Although
all damages in the event of any condemnation are to belong to the Landlord
whether such damages are awarded as compensation for diminution in value of the
leasehold or the fee of the Farm, the Tenant shall have the right to claim and
recover from the condemning authority, but not from the Landlord, such
compensation as may be separately awarded or recoverable by the Tenant in the
Tenant's own right on account of any damage to the Tenant's business by reason
of the condemnation and for or on account of any cost or loss to which the
Tenant might be put in removing the Tenant's machinery and equipment and
leasehold improvements.  Each party agrees to execute and deliver to
the other all instruments that may be required to effectuate the provisions of
Clause 21 and this Clause 22.

    

    
      	
              23.

            	
              Sale Under Threat of
      Condemnation

            

    

     

    A sale by
the Landlord to any authority having the power of compulsory acquisition, either
under threat of condemnation or while condemnation proceedings are pending,
shall be deemed an acquisition under the power of compulsory acquisition for all
purposes under Clauses 19 - 22.

    

    
      	
              24.

            	
              Events of
      Default

            

    

    

    Upon the
happening of one or more of the events as expressed below in (a) to (f),
inclusive (individually and collectively, “Events of Default”), the Landlord
shall have any and all rights and remedies hereinafter set
forth:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (a)

            	
              In
      the event the Tenant should fail to pay any rent or any other sums
      required to be paid hereunder, as and when the same becomes
      due.

            

    

     

    
      	
               
      

            	
              (b)

            	
              In
      the event a petition in bankruptcy (including bankruptcy proceedings or
      any other re-organisation proceedings) be filed by the Tenant, or be filed
      against the Tenant, and such petition is not dismissed within thirty (30)
      days from the filing thereof, or in the event the Tenant is adjudged
      bankrupt.

            

    

     

    
      	
               
      

            	
              (c)

            	
              In
      the event of an appointment by any court of a receiver or other court
      officer of the Tenant's property and such receivership is not dismissed
      within thirty (30) days from such
appointment.

            

    

     

    
      	
               
      

            	
              (d)

            	
              In
      the event an execution or other legal process is levied upon the machinery
      and equipment or other property of the Tenant brought on the Farm, or upon
      the interest of the Tenant in this Lease, and the same is not satisfied or
      dismissed within ten (10) days from this
levy.

            

    

     

    
      	
               
      

            	
              (e)

            	
              In
      the event the Tenant fails to keep, observe or perform any of the other
      terms, conditions or covenants on the part of the Tenant herein to be
      kept, observed and performed for more than thirty (30) days after written
      notice thereof is given by the Landlord to the Tenant specifying the
      nature of such default, or if the default so specified shall be of such a
      nature that the same cannot reasonably be cured or remedied within the
      said thirty (30) day period, if the Tenant shall not in good faith have
      commenced the curing or remedying of such default within such thirty (30)
      day period and shall not thereafter continuously and diligently proceed
      therewith to completion.

            

    

     

    
      	
               
      

            	
              (f)

            	
              In
      the event the Farm without the written consent of the Landlord, becomes
      vacant or be not used for a period of thirty (30) days or more or be used
      by any person or persons other than the Tenant or for any purpose not
      permitted hereunder the Landlord may at his option forthwith terminate
      this Lease by giving notice in writing to that effect to the Tenant and in
      the event of such termination, then all sums payable hereunder shall
      thereupon become immediately due and payable, and the Landlord may
      immediately re-enter and take possession of the
  Farm.

            

    

    

    25.           Remedies of
Landlord

    

    
      	
               
      

            	
              (a)

            	
              In
      the event that any monthly installment of rent or any other sum required
      to be paid hereunder or any part thereof shall remain unpaid for fifteen
      (15) days after becoming due, the Landlord shall have the immediate right
      to re-enter the Farm, or any part thereof and thereupon this Lease shall
      terminate but without prejudice to the right of action of the Landlord in
      respect of any breach of the Tenant’s covenants herein contained or
      implied.  The Landlord shall upon the exercise of such right of
      re-entry dispossess the Tenant and all other occupants therefrom and
      remove and dispose of all property therein in the manner provided in
      Subdivision (c) of this Clause, all without service of any notice of
      intention to re-enter and with or without resort to legal process (which
      the Tenant hereby expressly waives) and without the Landlord being deemed
      guilty of trespass or becoming liable for any loss or damage which may be
      occasioned thereby.  The Landlord shall also have the right, at
      the option of the Landlord, to terminate this Lease upon thirty (30) days
      written notice to the Tenant and to thereupon re-enter and take possession
      of the said Farm with legal process.  Nothing herein, however,
      shall be construed to require the Landlord to re-enter in any
      event.  The Landlord shall not, in any event, be required to pay
      the Tenant any surplus of any sums received by the Landlord on a
      re-letting of the said Farm in excess of the rent provided in this
      Lease.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              The
      Landlord in addition to other rights and remedies he may have, shall have
      the right to remove all or any part of the Tenant's property from the Farm
      and any property removed may be stored in any public warehouse or
      elsewhere at the cost of, and for the account of the Tenant and the
      Landlord shall not be responsible for the care or safekeeping thereof, and
      the Tenant hereby waives any and all loss, destruction and/or damage or
      injury which may be occasioned by any of the aforesaid
    acts.

            

    

     

    
      	
               
      

            	
              (c)

            	
              No
      such re-entry or taking possession of the Farm by the Landlord shall be
      construed as an election on the Landlord's part to terminate this Lease
      unless a written notice of such intention is given to the
      Tenant.  Notwithstanding any such re-letting without
      termination, the Landlord may at all times hereafter, elect to terminate
      this Lease for such previous default or breach.  Any such
      re-entry shall be allowed by the Tenant without hindrance, and the
      Landlord shall not be liable in damages for any such re-entry, or guilty
      of trespass or forcible entry.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Any
      and all rights, remedies and options given in this Lease to the Landlord
      shall be cumulative and in addition to and without waiver of or in
      derogation of any right or remedy given to it under any law now or
      hereafter in effect.

            

    

    

    
      	
              26.

            	
              Waiver

            

    

     

    The
waiver by the Landlord of any breach of any term, condition or covenant herein
contained shall not be a waiver of such term, condition or covenant, or any
subsequent breach of the same or any other term, condition or covenant herein
contained.  The consent or approval by the Landlord to or of any act
by the Tenant requiring the Landlord's consent or approval shall not be deemed
to waive or render unnecessary the Landlord's consent to or approval of any
subsequent similar act by the Tenant.  No re-entry hereunder shall bar
the recovery of rents or damages for the breach of any of the terms, conditions
or covenants on the part of the Tenant herein contained.  The receipt
of rent after breach or condition broken, or delay on the part of the Landlord
to enforce any right hereunder, shall not be deemed a waiver of forfeiture, or a
waiver of the right of the Landlord to terminate this Lease or to re-enter the
Farm or to re-let same.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              27.

            	
              Right of
      Entry

            

    

     

    
      	
              27.1

            	
              Upon
      the Landlord giving the Tenant at least twenty-four (24) hours notice, the
      Tenant shall permit the Landlord and the Landlord's agents at all
      reasonable times to enter the Farm to: (i) examine the same, (ii) make
      such repairs, or alterations, improvements or additions as the Landlord
      may deem necessary or desirable, and (iii) do tilling, seeding,
      fertilizing, and any other customary seasonal work, none of which shall
      interfere with the Tenant use and enjoyment of the Farm or in carrying out
      its regular operations, and the Landlord shall be allowed to take all
      material into and upon the said Farm that may be required therefor without
      the same constituting an eviction of the Tenant in whole or in part and
      the rent reserved shall in no way abate while the said repairs,
      alterations, improvements or additions are being made unless the Tenant is
      prevented from operating on the Farm in whole or in part, in which event
      rent shall be proportionately abated during the said
      period.  Provided however, that in the event of an emergency or
      a natural disaster, the Tenant shall permit the Landlord and the
      Landlord's agents to immediately enter the Farm without notice to conduct
      such examination and make such repairs, or alterations, improvements or
      additions and to take all material into and upon the said Farm that may be
      required therefor.  In effecting such repairs, or alterations,
      improvements or additions the Landlord shall ensure that the Tenant’s
      business shall not be unreasonably disrupted and that the Tenant’s right
      of access for itself, its customers, invitees and suppliers shall not be
      adversely affected.  The Landlord shall make good all damage
      occasioned to the Tenant by such
entry.

            

    

    

    
      	
              27.2

            	
              During
      the six (6) months prior to the expiration of the term of this Lease or
      any renewal term, the Tenant shall permit the Landlord and the Landlord's
      agents at all reasonable times to show the Farm to prospective tenants or
      purchasers, and place upon the Farm the usual notices “For Rent” or “For
      Sale”, which notices the Tenant shall permit to remain thereon without
      interference.

            

    

    

    
      	
              28.

            	
              Loss and
      Damage

            

    

     

    The
Landlord shall not be responsible for any damage to property of the Tenant or of
others located on the Farm, nor for the loss of or damage to any property of the
Tenant or of others by theft or otherwise.  The Landlord shall not be
liable for any injury or damage to persons or property resulting from fire,
explosion, steam, gas, electricity, water, rain, or leaks from any part of the
Farm or from the pipes or plumbing works or from the street or subsurface or
from any other place or by dampness or by any other cause of whatsoever
nature.  The Landlord shall not be liable for any such damage caused
by other persons on the Farm, occupants of adjacent property, of the Farm, or
the public, or caused by operations in construction of any private, public or
quasi-public work.  All property of the Tenant kept or stored on the
Farm shall be so kept or stored at the risk of the Tenant only and the Tenant
shall hold the Landlord harmless from any and all claims arising out of damage
to same, including subrogation claims by the Tenant's insurance
company.

    

    
      	
              29.

            	
              Holding
      Over

            

    

     

    On the
last day of the term of this Lease, or upon any earlier termination of this
Lease, or upon re-entry by the Landlord upon the demised property, the Tenant
shall peaceably and without notice of any sort, quit and surrender the demised
property to the Landlord in good order, condition and repair.  The
Tenant specifically agrees that in the event the Tenant retains possession and
does not so quit and surrender the property to the Landlord, then the Tenant
shall pay to the Landlord (i) all damages that the Landlord may suffer on
account of the Tenant's failure to so surrender and quit the demised property,
and the Tenant will indemnify and save the Landlord harmless from and against
any and all claims made by any succeeding tenant of the demised property against
the Landlord on account of delay of the Landlord in delivering possession of the
demised property to the said succeeding tenant to the extent that such delay is
occasioned by the failure of the Tenant to so quit and surrender the said
property, and (ii) rent for each month or any applicable portion of a month of
such holding over at twice the amount payable for the month immediately
preceding the termination of this Lease, during the time the Tenant thus remains
in possession. The provisions of this paragraph do not waive any of the
Landlord's rights of re-entry or any other right under the terms of this
Lease.  If the Tenant shall fail to surrender the property as herein
provided, no new tenancy shall be created and the Tenant shall be guilty of
unlawful hold over.  No surrender of this Lease or of the property
shall be binding on the Landlord unless: (a) the Tenant physically vacates the
property; and (b) the Landlord specifically acknowledges and consents to the
surrender in writing.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              30.

            	
              Successors

            

    

     

    All
rights and liabilities herein given to, or imposed upon, the respective parties
hereto shall extend to and bind the several respective executors,
administrators, heirs, successors and permitted assigns of the said parties. No
rights, however, shall inure to the benefit of any assignee of the Tenant unless
the assignment to such assignee has been approved by the Landlord in writing as
provided in Clause 16.1 hereof.  Nothing contained in this Lease shall
in any manner restrict the Landlord's right to assign or encumber this Lease
and, in the event the Landlord sells or transfers its interest in the Land then
the purchaser or transferee shall purchase or acquire subject to this Lease and
shall assume the Landlord's obligation and covenants under this Lease, and the
Landlord shall thereupon be relieved of all further obligations hereunder. The
Landlord shall remain liable in respect of its obligations and covenants prior
to any assignment or encumbrance of this Lease, and any such assignment or
encumbrance will not affect or alter any of the Tenant’s rights or obligations
under this Lease.

    

    
      	
              31.

            	
              Extension
      Option

            

    

     

    The
Landlord grants to the Tenant the option of extending the term of this Lease for
three (3) further consecutive terms of five (5) years each from the expiration
of the initial term and thereafter from the expiration of the second and third
terms, provided:

    

    
      	
               
      

            	
              (a)

            	
              there
      shall not at the time of the exercise of such option be any existing
      breach of any of the covenants on the part of the
  Tenant;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Tenant gives notice in writing to the Landlord at least six (6) months
      before the expiration of the initial term and the second and third terms,
      exercising this option; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      Tenant has achieved at least two (2) of the following targets at the time
      that the Tenant gives the notice in writing to the Landlord referred to in
      Subdivision (b) of this Clause: (i) not less than 80% of
      the Farm that is usable is operating at full capacity; (ii) the
      Tenant’s
      minimum share price is valued US$1.00 per unit; or (iii) the
      Tenant’s minimum yearly sales
      is not less than US$500,000.00.  The Tenant’s share price
      shall be calculated based on the 10-day average of the closing price of
      the Tenant’s common stock on the NASD Over-the-Counter Bulletin
      Board.

            

    

    

    In the
event that less
than 80% of
the Farm that is usable is not operating at full capacity by reason of
strikes, lockouts, labour troubles, inability to procure materials, failure of
power, restrictive governmental laws or regulations, riots, insurrection, war,
natural disasters or other reason of a like nature not the fault of the Tenant,
then the Tenant‘s failure to achieve that target shall be excused for the period
of any such event.

    

    The lease
provisions applicable to the extensions shall be the same as those applicable to
the initial term, with the exception of the present covenant for extension which
shall not apply to the fourth term.

    

    
      	
              32.

            	
              Force
      Majeure

            

    

     

    In the
event that either party hereto shall be delayed or hindered in or prevented from
the performance of any act required hereunder by reason of strikes, lockouts,
labour troubles, inability to procure materials, failure of power, restrictive
governmental laws or regulations, riots, insurrection, war, natural disasters or
other reason of a like nature not the fault of the party delayed in performing
work or doing acts required under the terms of this Lease, then performance of
such act shall be excused for the period of the delay and the period for the
performance of any such act shall be extended for a period of such
delay.

    

    
      	
              33.

            	
              Notices

            

    

     

    
      	
              33.1

            	
              Every
      notice or other communication under this Lease shall be in writing and may
      be delivered personally or by letter, facsimile transmission or e-mail
      dispatched to the Landlord or the Tenant, as the case may be, at the
      party’s respective address or facsimile number or to such other address or
      facsimile number as may be notified by ether party to the other party for
      such purpose.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              33.2

            	
              Every
      notice or other communication shall be deemed to have been received by the
      party to whom it is sent, if sent by post, seven (7) days after posting
      and, if delivered personally or sent by facsimile transmission or e-mail,
      at the time of delivery or dispatch if same occurs during normal business
      hours on a business day but, otherwise at the opening of business on the
      next succeeding business day.

            

    

    

    
      	
              34.

            	
              Amendment

            

    

     

    This
Lease may only be amended by a written instrument executed by the
parties.  This Lease cannot be changed orally.

    

    
      	
              35.

            	
              Captions, Headings and
      Clause Numbers

            

    

     

    The
captions, headings and clause numbers appearing in this Lease are inserted only
as a matter of convenience and in no way define, limit, construe, or interpret
the scope or intent of such clauses of this Lease, nor in any way affect this
Lease.

    

    
      	
              36.

            	
              Partial
      Invalidity

            

    

     

    If any
term, covenant or condition of this Lease or the application thereof to any
person or circumstances shall, to any extent, be held invalid or unenforceable,
the remainder of this Lease, or the application of such term, covenant or
condition to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby and each term, covenant
or condition of this Lease shall be valid and be enforced to the fullest extent
permitted by law.

    

    
      	
              37.

            	
              Effectiveness of
      Lease

            

    

     

    The
submission of this Lease for review does not constitute a reservation of or
option for the Farm and this Lease becomes effective as a lease only upon
execution and delivery thereof by the Landlord to the Tenant, and the receipt of
the first month's rent, and if paid by check, subject to clearance of such
check.

    

    
      	
              38.

            	
              Non-Registration

            

    

     

    This
Lease shall not be registered on the Certificates of Title for the Land but the
Tenant may if it so desires to protect its interest under this Lease (at its own
cost and expense) lodge a caveat at the office of the Registrar of
Titles.

    

    
      	
              39.

            	
              Time of the
      Essence

            

    

     

    Time is
of the essence of this Lease and each and all of its provisions in which
performance is a factor.

    

    
      	
              40.

            	
              Cumulative
      Remedies

            

    

     

    No remedy
or election hereunder shall be deemed exclusive but shall, wherever possible, be
cumulative with all other remedies at law or in equity.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              41.

            	
              Stamp
      Duty

            

    

     

    The Stamp
Duty payable with respect to this Lease and on the counterpart thereof shall be
borne equally by the Landlord and the Tenant.  The Tenant shall pay to
the Landlord on demand the Tenant’s said one half (1⁄2) costs.

    

    
      	
              42.

            	
              Counterparts

            

    

     

    This
Lease may be executed in multiple copies, each of which shall be deemed an
original, and all of such copies shall together constitute one and the same
instrument.

    

    
      	
              43.

            	
              Acceptance of Funds by
      Landlord

            

    

     

    No
receipt of money by the Landlord from the Tenant after the termination of this
Lease or after the service of any notice or after the commencement of any suit,
or after final judgment for possession of the Farm shall reinstate, continue or
extend the term of this Lease or affect any such notice, demand or
suit.

    

    
      	
              44.

            	
              Entire
      Agreement

            

    

     

    This
Lease sets forth all covenants, promises, agreements, conditions and
understandings between the Landlord and the Tenant concerning the Farm and there
are no covenants, promises, conditions or understandings, either oral or
written, between them other than are herein set forth.  No provision
of this Lease may be amended or added to except by an agreement in writing
signed by the parties hereto or their respective successors in
interest.

    

    
      	
              45.

            	
              Appendices

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
Lease is subject to the provisions set forth in the Appendices hereto and these
Appendices shall be read and construed as a part of this Lease.

    

     

    IN
WITNESS WHEREOF the parties have hereunto set their hands and affixed their
seals the day and year hereinbefore written.

     

    
      	 
      	 
      
	
              ________________________

            	
              ________________________

            
	
              ROHAN
      MARLEY

            	
              WITNESS

            
	
              MARLEY
      COFFEE, INC.

            	 
      
	 
      	 
      
	
              By:
      ________________________

            	
              ________________________

            
	
              Name:

            	
              WITNESS

            
	
              Title:

            	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Appendix
A

     

    

     

    
      
        	
                1.

              	
                2
      weed whackers (Approx.
USD$678.00)

              

      

    

    
      
        	
                2.

              	
                12
      machetes (J$6,000.00)

              

      

    

    
      
        	
                3.

              	
                20
      Gallons of gas (lasts three months,
J$6,000.00)

              

      

    

    
      
        	
                4.

              	
                20
      gallons of oil (lasts six weeks,
J$3,500.00)

              

      

    

    
      
        	
                5.

              	
                4
      Weed Whacker Cords (lasts six weeks,
J$8,000.00)

              

      

    

    
      
        	
                6.

              	
                1
      Gas Container to hold 20 gallons gas
(J$500.00)

              

      

    

    
      
        	
                7.

              	
                6
      Weed Whacker Heads (USD$8,400.00, lasts one
  year)

              

      

    

    
      
        	
                8.

              	
                4
      Water Catchment Drums
(J$2,000.00)

              

      

    

    
      
        	
                9.

              	
                5
      Watering Buckets (J$500.00)

              

      

    

    
      	
              10.

            	
              2
      Water Boots (J$3,400.00)

            

    

    
      	
              11.

            	
              1
      Package of Nose Masks (J$100.00)

            

    

    
      	
              12.

            	
              6
      Pairs Pruning Shears (J$9,000.00)

            

    

    
      	
              13.

            	
              1
      First Aid Kit (J$2,000.00)

            

    

    
      	
              14.

            	
              4
      Hand Saws (J$10,000.00)

            

    

    
      	
              15.

            	
              6
      Composition Books (J$600.00)

            

    

    
      	
              16.

            	
              216
      Coffee Borer Traps (USD $1,500.00, lasts one
  year)

            

    

    
      	
              17.

            	
              10
      gallons Neem (USD$890.00 lasts one
year)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Appendix
B

     

    
      
        	
                Date

              	
                Item

              	
                Expenditure

              	
                JA
      $

              	
                US
      $

              
	
                3Nov07

              	
                Fuel

              	
                $2,000.00

              	 
      	 
      
	
                3Nov07

              	
                Seedlings

              	
                $3,000.00

              	 
      	 
      
	
                3Nov07

              	
                Seedlings

              	
                $6,000.00

              	 
      	 
      
	
                21Nov07

              	
                Fuel

              	
                $4,000.00

              	 
      	 
      
	
                21Nov07

              	
                Seedlings

              	
                $21,500.00

              	 
      	 
      
	
                24Nov07

              	
                Seedlings

              	
                $30,000.00

              	 
      	 
      
	
                29Nov07

              	
                Fuel

              	
                $1,700.00

              	 
      	 
      
	
                30Nov07

              	
                Payroll

              	
                $130,000.00

              	 
      	 
      
	
                7Dec07

              	
                Fuel

              	
                $5,000.00

              	 
      	 
      
	
                13Dec07

              	
                Fuel

              	
                $3,000.00

              	 
      	 
      
	
                13Dec07

              	
                Seedlings

              	
                $15,000.00

              	 
      	 
      
	
                14Dec07

              	
                Payroll

              	
                $139,000.00

              	 
      	 
      
	
                21Dec07

              	
                Payroll

              	
                $94,000.00

              	 
      	 
      
	
                5Jan08

              	
                Fuel

              	
                $3,000.00

              	 
      	 
      
	
                9Jan08

              	
                Payroll

              	
                $127,000.00

              	 
      	 
      
	
                10Jan08

              	
                Fuel

              	
                $4,000.00

              	 
      	 
      
	
                10Jan08

              	
                Seedlings

              	
                $15,000.00

              	 
      	 
      
	
                10Jan08

              	
                Tools

              	
                $6,574.00

              	 
      	 
      
	
                10Jan08

              	
                Rent

              	
                $3,000.00

              	 
      	 
      
	
                21Jan08

              	
                Vehicle
      servicing

              	
                $1,500.00

              	 
      	 
      
	
                25Jan08

              	
                Fuel

              	
                $2,000.00

              	 
      	 
      
	
                25Jan08

              	
                Transfer
      to Audley Shakespear

              	
                $41,330.00

              	 
      	 
      
	
                25Jan08

              	
                Fuel

              	
                $3,000.00

              	 
      	 
      
	
                25Jan08

              	
                Payroll

              	
                $137,000.00

              	 
      	 
      
	
                31Jan08

              	
                Plantain
      suckers

              	
                $2,000.00

              	 
      	 
      
	
                31Jan08

              	
                Seeds

              	
                $415.00

              	 
      	 
      
	
                31Jan08

              	
                Tools

              	
                $1,065.00

              	 
      	 
      
	
                4Feb08

              	
                Fuel

              	
                $2,000.00

              	 
      	 
      
	
                4Feb08

              	
                Brocap
      Trap

              	
                $32,895.00

              	 
      	 
      
	
                5Feb08

              	
                Seedlings

              	
                $8,000.00

              	 
      	 
      
	
                5Feb08

              	
                Fuel

              	
                $4,000.00

              	 
      	 
      
	
                5Feb08

              	
                Traffic
      Fine

              	
                $800.00

              	 
      	 
      
	
                8Feb08

              	
                Payroll

              	
                $154,000.00

              	 
      	 
      
	
                10Feb08

              	
                Rent

              	
                $3,000.00

              	 
      	 
      
	
                19Feb08

              	
                Fuel

              	
                $3,760.00

              	 
      	 
      
	
                22Feb08

              	
                Payroll

              	
                $154,000.00

              	 
      	 
      
	
                7Mar08

              	
                Payroll

              	
                $154,000.00

              	 
      	 
      
	
                10Mar08

              	
                Rent

              	
                $3,000.00

              	 
      	 
      
	
                19Mar08

              	
                Vehicle
      servicing

              	
                $760.00

              	 
      	 
      
	
                19Mar08

              	
                Tools

              	
                $7,034.00

              	 
      	 
      
	
                21Mar08

              	
                Payroll

              	
                $157,500.00

              	 
      	 
      
	
                27Mar08

              	
                Tools

              	
                $2,097.00

              	 
      	 
      
	
                4Apr08

              	
                Payroll

              	
                $145,000.00

              	 
      	 
      
	
                9Apr08

              	
                Fuel

              	
                $3,620.00

              	 
      	 
      
	
                18Apr08

              	
                Rent

              	
                $3,000.00

              	 
      	 
      
	
                18Apr08

              	
                Payroll

              	
                $154,000.00

              	 
      	 
      
	
                23Apr08

              	
                Fuel

              	
                $130.00

              	 
      	 
      
	
                23Apr08

              	
                Nails

              	
                $420.00

              	 
      	 
      
	
                23Apr08

              	
                Saw
      File

              	
                $160.00

              	 
      	 
      
	 
      	
                Tools

              	
                $815.00

              	 
      	 
      
	 
      	
                Tools

              	
                $180.00

              	 
      	 
      
	 
      	
                Tools

              	
                $2,840.00

              	 
      	 
      
	 
      	
                Tools

              	
                $4,180.00

              	 
      	 
      
	
                Sub-Total

              	 
      	 
      	
                $1,802,275.00

              	
                $26,899.63

              
	 
      	 
      	 
      	 
      	 
      
	
                18Feb08

              	
                Rover
      licencing & fitness

              	
                $10,000.00

              	 
      	 
      
	
                18Feb08

              	
                Fuel
      for Rover

              	
                $4,000.00

              	 
      	 
      
	
                18Feb08

              	
                Travel
      expense for Cornbread

              	
                $1,500.00

              	 
      	 
      
	
                9Apr08

              	
                Payment
      for Farm Assessment

              	
                $37,010.41

              	 
      	 
      
	
                29Apr08

              	
                Soil
      Samples

              	
                $6,250.00

              	 
      	 
      
	
                7May08

              	
                Farm
      payroll (for fortnight ending May 2, 2008)

              	
                $154,000.00

              	 
      	 
      
	
                7May08

              	
                Petty
      cash for Farm

              	
                $10,000.00

              	 
      	 
      
	
                7May08

              	
                Salary
      for farm manager (April 2 weeks)

              	
                $39,675.00

              	 
      	 
      
	
                16May08

              	
                Organic
      trainer's expense

              	
                $5,500.00

              	 
      	 
      
	
                18May08

              	
                Salary
      for farm staff

              	
                $115,300.00

              	 
      	 
      
	
                30May08

              	
                Salary
      for farm staff

              	
                $136,500.00

              	 
      	 
      
	
                30May08

              	
                Salary
      for farm manager (May)

              	
                $79,350.00

              	 
      	 
      
	
                6Jun08

              	
                Purchase
      of 2 saw chains & 2 Bars

              	
                $18,350.00

              	 
      	 
      
	
                16Jun08

              	
                Farm
      payroll (for fortnight ending June 13, 2008)

              	
                $136,000.00

              	 
      	 
      
	
                20Jun08

              	
                Fuel
      for chain saw

              	
                $2,500.00

              	 
      	 
      
	
                20Jun08

              	
                Weed
      whacker cord

              	
                $2,508.00

              	 
      	 
      
	
                24Jun08

              	
                PACT
      Distributors (Farm supplies)

              	
                $113,110.68

              	 
      	 
      
	
                24Jun08

              	
                Vehicle
      servicing

              	
                $250.00

              	 
      	 
      
	
                3Jul08

              	
                PACT
      Distributors (Farm supplies)

              	
                $15,284.37

              	 
      	 
      
	
                4Jul08

              	
                New
      Budget Hardware & Supplies (farm tool)

              	
                $1,456.88

              	 
      	 
      
	
                4Jul08

              	
                Delta
      Supply Co. Ltd (Farm supplies)

              	
                $35,905.30

              	 
      	 
      
	
                4Jul08

              	
                Farm
      Payroll (Period June 1627)

              	
                $116,300.00

              	 
      	 
      
	
                4Jul08

              	
                Salary
      for farm manager (June)

              	
                $79,350.00

              	 
      	 
      
	
                9Jul08

              	
                Garbage
      bag

              	
                $170.00

              	 
      	 
      
	
                9Jul08

              	
                Coir
      dust

              	
                $2,400.00

              	 
      	 
      
	
                18Jul08

              	
                Farm
      Payroll (Period June 30 July 11)

              	
                $137,000.00

              	 
      	 
      
	
                18Jul08

              	
                Farm
      petty cash

              	
                $4,000.00

              	 
      	 
      
	
                Sub-Total

              	 
      	 
      	
                $1,263,670.64

              	
                $18,860.76

              
	
                Grand
      Total

              	 
      	 
      	
                $3,065,945.64

              	
                $45,760.38

              

      

    

    

    The first
sub-total reflects the expenditures before the account was handled by the
Tenant’s corporate office.  The second sub-total reflects the
expenditures posted by the Tenant’s corporate office.  The grand total
shows the sum of both sub-totals, along with the US$ equivalent.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]