Document:

Exhibit 10.4

 

Freddie Mac Loan Number:                                                               

 

Property Name:

 

GUARANTY

 

MULTISTATE

 

(Revised 5-20-2015)

 

THIS GUARANTY (“Guaranty”) is entered into to be effective as of                     , 20  , by                                (“Guarantor”, collectively if more than one), for the benefit of                                                          (“Lender”).

 

RECITALS

 

A.                                    Pursuant to the terms of a Multifamily Loan and Security Agreement dated the same date as this Guaranty (as amended, modified or supplemented from time to time, the “Loan Agreement”),                        (“Borrower”) has requested that Lender make a loan to Borrower in the amount of $                 (“Loan”). The Loan will be evidenced by a Multifamily Note from Borrower to Lender dated effective as of the effective date of this Guaranty (as amended, modified or supplemented from time to time, the “Note”). The Note will be secured by a Multifamily Mortgage, Deed of Trust, or Deed to Secure Debt dated effective as of the effective date of the Note (as amended, modified or supplemented from time to time, the “Security Instrument”), encumbering the Mortgaged Property described in the Loan Agreement.

 

B.                                    As a condition to making the Loan to Borrower, Lender requires that Guarantor execute this Guaranty.

 

C.                                    Guarantor has a direct or indirect ownership or other financial interest in Borrower and/or will otherwise derive a material benefit from the making of the Loan.

 

AGREEMENT

 

NOW, THEREFORE, in order to induce Lender to make the Loan to Borrower, and in consideration thereof and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor agrees as follows:

 

1.                                      Defined Terms. The terms “Indebtedness”, “Loan Documents”, and “Property Jurisdiction”, and other capitalized terms used but not defined in this Guaranty, will have the meanings assigned to them in the Loan Agreement.

 

 

2.                                      Scope of Guaranty.

 

(a)                                 Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender each of the following:

 

(i)                                     Guarantor guarantees the full and prompt payment when due, whether at the Maturity Date or earlier, by reason of acceleration or otherwise, and at all times thereafter, of each of the following:

 

[CHOOSE ONE SECTION A:]

 

[USE THE FOLLOWING IF THE PROPERTY IS LOCATED IN ANY STATE OTHER THAN WASHINGTON STATE]

 

(A)                               Guarantor guarantees a portion of the Indebtedness equal to     % of the original principal balance of the Note (“Base Guaranty”).

 

[OR, USE THE FOLLOWING IF THE PROPERTY IS LOCATED IN WASHINGTON STATE]

 

(A)                               Guarantor guarantees a portion of the Indebtedness (including interest at the Note rate) equal to    % of the original principal balance of the Note (“Base Guaranty”). (Washington State loans only)

 

(B)                               In addition to the Base Guaranty, Guarantor guarantees all other amounts for which Borrower is personally liable under Sections 9(c), 9(d) and 9(f) of the Note (provided, however, that Guarantor will have no liability for failure of Borrower or SPE Equity Owner to comply with (I) Section 6.13(a)(xviii) of the Loan Agreement, and (II) the requirement in Section 6.13(a)(x)(B) of the Loan Agreement as to payment of trade payables within 60 days of the date incurred).  To the extent that any amounts for which Borrower is personally liable under Section 9(c)(iv) of the Note become due after Lender or a receiver appointed by Lender actually begins to collect Rents under Section 3(b)(iii) of the Security Instrument, the Guarantor shall not be liable for such amounts.

 

(C)                               Guarantor guarantees all costs and expenses, including reasonable Attorneys’ Fees and Costs incurred by Lender in enforcing its rights under this Guaranty.

 

(ii)                                  Guarantor guarantees the full and prompt payment and performance of, and compliance with, all of Borrower’s obligations under Sections 6.12, 10.02(b) and 10.02(d) of the Loan Agreement when due and the accuracy of Borrower’s representations and warranties under Section 5.05 of the Loan Agreement.

 

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(iii)                               Guarantor guarantees the full and prompt payment and performance of, and compliance with, Borrower’s obligations under Section 6.09(e)(v) of the Loan Agreement to the extent Property Improvement Alterations have commenced and remain uncompleted.

 

(iv)                              Reserved.

 

(v)                                 Reserved.

 

(b)                                 If the Base Guaranty stated in Section 2(a)(i)(A) is 100% of the original principal balance of the Note, then the following will be applicable:

 

(i)                                     The Base Guaranty will mean and include, and Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender, the full and complete prompt payment of the entire Indebtedness, the performance of and/or compliance with all of Borrower’s obligations under the Loan Documents when due, and the accuracy of Borrower’s representations and warranties contained in the Loan Documents.

 

(ii)                                  For so long as the Base Guaranty remains in effect (there being no limit to the duration of the Base Guaranty unless otherwise expressly provided in this Guaranty), the obligations guaranteed pursuant to Sections 2(a)(i)(B) and 2(a)(i)(C) will be part of, and not in addition to or in limitation of, the Base Guaranty.

 

(c)                                  If the Base Guaranty stated in Section 2(a)(i)(A) is less than 100% of the original principal balance of the Note, then Section 2(b) will be completely inapplicable.

 

(d)                                 If Guarantor is not liable for the entire Indebtedness, then all payments made by Borrower with respect to the Indebtedness and all amounts received by Lender from the enforcement of its rights under the Loan Agreement and the other Loan Documents (except this Guaranty) will be applied first to the portion of the Indebtedness for which neither Borrower nor Guarantor has personal liability.

 

3.                                      Additional Guaranty Relating to Bankruptcy.

 

(a)                                 Notwithstanding any limitation on liability provided for elsewhere in this Guaranty, Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full and prompt payment when due, whether at the Maturity Date or earlier, by reason of acceleration or otherwise, and at all times thereafter, the entire Indebtedness, in the event that:

 

(i)                                     Borrower or any SPE Equity Owner voluntarily files for bankruptcy protection under the Bankruptcy Code.

 

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(ii)                                  Borrower or any SPE Equity Owner voluntarily becomes subject to any reorganization, receivership, insolvency proceeding, or other similar proceeding pursuant to any other federal or state law affecting debtor and creditor rights.

 

(iii)                               The Mortgaged Property or any part of the Mortgaged Property becomes an asset in a voluntary bankruptcy or becomes subject to any voluntary reorganization, receivership, insolvency proceeding, or other similar voluntary proceeding pursuant to any other federal or state law affecting debtor and creditor rights.

 

(iv)                              An order of relief is entered against Borrower or any SPE Equity Owner pursuant to the Bankruptcy Code or other federal or state law affecting debtor and creditor rights in any involuntary bankruptcy proceeding initiated or joined in by a Related Party.

 

(v)                                 An involuntary bankruptcy or other involuntary insolvency proceeding is commenced against Borrower or any SPE Equity Owner (by a party other than Lender) but only if Borrower or such SPE Equity Owner has failed to use commercially reasonable efforts to dismiss such proceeding or has consented to such proceeding. “Commercially reasonable efforts” will not require any direct or indirect interest holders in Borrower or any SPE Equity Owner to contribute or cause the contribution of additional capital to Borrower or any SPE Equity Owner.

 

(b)                                 For purposes of Section 3(a) the term “Related Party” will include all of the following:

 

(i)                                     Borrower, any Guarantor or any SPE Equity Owner.

 

(ii)                                  Any Person that holds, directly or indirectly, any ownership interest (including any shareholder, member or partner) in Borrower, any Guarantor or any SPE Equity Owner or any Person that has a right to manage Borrower, any Guarantor or any SPE Equity Owner.

 

(iii)                               Any Person in which Borrower, any Guarantor or any SPE Equity Owner has any ownership interest (direct or indirect) or right to manage.

 

(iv)                              Any Person in which any partner, shareholder or member of Borrower, any Guarantor or any SPE Equity Owner has an ownership interest or right to manage.

 

(v)                                 Any Person in which any Person holding an interest in Borrower, any Guarantor or any SPE Equity Owner also has any ownership interest.

 

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(vi)                              Any creditor (as defined in the Bankruptcy Code) of Borrower that is related by blood, marriage or adoption to Borrower, any Guarantor or any SPE Equity Owner.

 

(vii)                           Any creditor (as defined in the Bankruptcy Code) of Borrower that is related to any partner, shareholder or member of, or any other Person holding an interest in, Borrower, any Guarantor or any SPE Equity Owner.

 

(c)                                  If Borrower, any Guarantor, any SPE Equity Owner or any Related Party has solicited creditors to initiate or participate in any proceeding referred to in Section 3(a), regardless of whether any of the creditors solicited actually initiates or participates in the proceeding, then such proceeding will be considered as having been initiated by a Related Party.

 

4.                                      Guarantor’s Obligations Survive Foreclosure. The obligations of Guarantor under this Guaranty will survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, and any release of record of the Security Instrument, and, in addition, the obligations of Guarantor relating to Borrower’s representations and warranties under Section 5.05 of the Loan Agreement, and Borrower’s obligations under Sections 6.12 and 10.02(b) of the Loan Agreement will survive any repayment or discharge of the Indebtedness. Notwithstanding the foregoing, if Lender has never been a mortgagee-in-possession of or held title to the Mortgaged Property, Guarantor will have no obligation under this Guaranty relating to Borrower’s representations and warranties under Section 5.05 of the Loan Agreement or Borrower’s obligations relating to environmental matters under Sections 6.12 and 10.02(b) of the Loan Agreement after the date of the release of record of the lien of the Security Instrument as a result of the payment in full of the Indebtedness on the Maturity Date or by voluntary prepayment in full.  Notwithstanding anything to the contrary herein contained, Borrower shall not be liable to Lender under this Section 4 for environmental liabilities arising after the date Lender takes title by foreclosure or deed in lieu of foreclosure arising as a result of Lender’s gross negligence or willful misconduct.

 

5.                                      Guaranty of Payment and Performance. Guarantor’s obligations under this Guaranty constitute an unconditional guaranty of payment and performance and not merely a guaranty of collection.

 

[CHOOSE ONE SECTION 6:]

 

[USE THE FOLLOWING IF THE PROPERTY IS LOCATED IN ANY STATE OTHER THAN CALIFORNIA]

 

6.                                      No Demand by Lender Necessary; Waivers by Guarantor — All States Except California. The obligations of Guarantor under this Guaranty must be performed without demand by Lender and will be unconditional regardless of the genuineness, validity, regularity or enforceability of the Note, the Loan Agreement, or any other Loan Document, and without regard to any other circumstance which might otherwise constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a

 

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mortgagor. Guarantor hereby waives, to the fullest extent permitted by applicable law, all of the following:

 

(a)                                 The benefit of all principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms of this Guaranty and agrees that Guarantor’s obligations will not be affected by any circumstances, whether or not referred to in this Guaranty, which might otherwise constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a mortgagor.

 

(b)                                 The benefits of any right of discharge under any and all statutes or other laws relating to a guarantor, a surety, a borrower or a mortgagor, and any other rights of a surety, a guarantor, a borrower or a mortgagor under such statutes or laws.

 

(c)                                  Diligence in collecting the Indebtedness, presentment, demand for payment, protest, all notices with respect to the Note and this Guaranty which may be required by statute, rule of law or otherwise to preserve Lender’s rights against Guarantor under this Guaranty, including notice of acceptance, notice of any amendment of the Loan Documents, notice of the occurrence of any default or Event of Default, notice of intent to accelerate, notice of acceleration, notice of dishonor, notice of foreclosure, notice of protest, and notice of the incurring by Borrower of any obligation or indebtedness.

 

(d)                                 All rights to cause a marshalling of the Borrower’s assets or to require Lender to do any of the following:

 

(i)                                     Proceed against Borrower or any other guarantor of Borrower’s payment or performance under the Loan Documents (an “Other Guarantor”).

 

(ii)                                  Proceed against any general partner of Borrower or any Other Guarantor if Borrower or any Other Guarantor is a partnership.

 

(iii)                               Proceed against or exhaust any collateral held by Lender to secure the repayment of the Indebtedness.

 

(iv)                              Pursue any other remedy it may now or hereafter have against Borrower, or, if Borrower is a partnership, any general partner of Borrower.

 

(e)                                  Any right to object to the timing, manner or conduct of Lender’s enforcement of its rights under any of the Loan Documents.

 

(f)                                   Any right to revoke this Guaranty as to any future advances by Lender under the terms of the Loan Agreement to protect Lender’s interest in the Mortgaged Property.

 

[USE THE FOLLOWING IF THE PROPERTY IS LOCATED IN CALIFORNIA]

 

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6.                                      No Demand by Lender Necessary; Waivers by Guarantor — California only. The obligations of Guarantor under this Guaranty must be performed without demand by Lender and will be unconditional regardless of the genuineness, validity, regularity or enforceability of the Note, the Loan Agreement, the Security Instrument, or any other Loan Document, and without regard to any other circumstance which might otherwise constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a mortgagor. Guarantor hereby waives, to the fullest extent permitted by applicable law, all of the following, and agrees that such waiver has the following consequences:

 

(a)                                 Benefits and defenses under California Civil Code Section 2810; Guarantor agrees that by doing so Guarantor will be liable even if Borrower had no liability at the time of execution of the Note, the Loan Agreement or any other Loan Document, or thereafter ceases to be liable.

 

(b)                                 Benefits and defenses under California Civil Code Section 2809; Guarantor agrees that by doing so Guarantor’s liability may be larger in amount and more burdensome than that of Borrower.

 

(c)                                  The benefit of all principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms of this Guaranty; Guarantor agrees that Guarantor’s obligations will not be affected by any circumstances, whether or not referred to in this Guaranty, which might otherwise constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a mortgagor.

 

(d)                                 The benefits of any right of discharge under any and all statutes or other laws relating to a guarantor, a surety, a borrower or a mortgagor, and any other rights of a surety, a guarantor, a borrower or a mortgagor under such statutes or laws.

 

(e)                                  Diligence in collecting the Indebtedness, presentment, demand for payment, protest, all notices with respect to the Note and this Guaranty which may be required by statute, rule of law or otherwise to preserve Lender’s rights against Guarantor under this Guaranty, including notice of acceptance, notice of any amendment of the Loan Documents, notice of the occurrence of any default or Event of Default, notice of intent to accelerate, notice of acceleration, notice of dishonor, notice of foreclosure, notice of protest, and notice of the incurring by Borrower of any obligation or indebtedness.

 

(f)                                   All rights to cause a marshalling of the Borrower’s assets or to require Lender to do any of the following:

 

(i)                                     Proceed against Borrower or any other Guarantor of Borrower’s payment or performance with respect to the Indebtedness (“Other Guarantor”).

 

(ii)                                  Proceed against any general partner of Borrower or any Other Guarantor, if Borrower or any Other Guarantor is a partnership.

 

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(iii)                               Proceed against or exhaust any collateral held by Lender to secure the repayment of the Indebtedness.

 

(iv)                              Pursue any other remedy it may now or hereafter have against Borrower, or, if Borrower is a partnership, any general partner of Borrower, including any and all benefits under California Civil Code Sections 2845, 2849 and 2850.

 

(g)                                  Any right to revoke this Guaranty as to any future advances by Lender under the terms of the Loan Agreement to protect Lender’s interest in the Mortgaged Property.

 

7.                                      Modification of Loan Documents. At any time or from time to time and any number of times, without notice to Guarantor and without affecting the liability of Guarantor, all of the following will apply:

 

(a)                                 Lender may extend the time for payment of the principal of or interest on the Indebtedness or renew the Indebtedness in whole or in part.

 

(b)                                 Lender may extend the time for Borrower’s performance of or compliance with any covenant or agreement contained in the Note, the Loan Agreement or any other Loan Document, whether presently existing or entered into after the date of this Guaranty, or waive such performance or compliance.

 

(c)                                  Lender may accelerate the Maturity Date of the Indebtedness as provided in the Note, the Loan Agreement, or any other Loan Document.

 

(d)                                 Lender and Borrower may modify or amend the Note, the Loan Agreement, or any other Loan Document in any respect, including an increase in the principal amount.

 

(e)                                  Lender may modify, exchange, surrender or otherwise deal with any security for the Indebtedness or accept additional security that is pledged or mortgaged for the Indebtedness.

 

8.                                      Joint and Several Liability. The obligations of Guarantor (and each party named as a Guarantor in this Guaranty) and any Other Guarantor will be joint and several. Lender, in its sole and absolute discretion, may take any of the following actions:

 

(a)                                 Lender may bring suit against Guarantor, or any one or more of the parties named as a Guarantor in this Guaranty, and any Other Guarantor, jointly and severally, or against any one or more of them.

 

(b)                                 Lender may compromise or settle with Guarantor, any one or more of the parties named as a Guarantor in this Guaranty, or any Other Guarantor, for such consideration as Lender may deem proper.

 

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(c)                                  Lender may release one or more of the parties named as a Guarantor in this Guaranty, or any Other Guarantor, from liability.

 

(d)                                 Lender may otherwise deal with Guarantor and any Other Guarantor, or any one or more of them, in any manner.

 

No action of Lender described in this Section 8 will affect or impair the rights of Lender to collect from any one or more of the parties named as a Guarantor under this Guaranty any amount guaranteed by Guarantor under this Guaranty.

 

9.                                      Limited Release of Guarantor Upon Transfer of Mortgaged Property. If Guarantor requests a release of its liability under this Guaranty in connection with a Transfer which Lender has approved pursuant to Section 7.05(a) of the Loan Agreement, and Borrower has provided a replacement Guarantor acceptable to Lender, then one of the following will apply:

 

(a)                                 If Borrower delivers to Lender a Clean Site Assessment, then Lender will release Guarantor from all of Guarantor’s obligations except Guarantor’s obligation to guaranty Borrower’s liability under Section 6.12 (Environmental Hazards) or Section 10.02(b) (Environmental Indemnification) of the Loan Agreement with respect to any loss, liability, damage, claim, cost or expense which directly or indirectly arises from or relates to any Prohibited Activities or Conditions existing prior to the date of the Transfer.

 

(b)                                 If Borrower does not deliver a Clean Site Assessment as described in Section 7.05(b)(i) of the Loan Agreement, then Lender will release Guarantor from all of Guarantor’s obligations except for Guarantor’s obligation to guaranty Borrower’s liability under Section 6.12 (Environmental Hazards) or Section 10.02(b) (Environmental Indemnification) of the Loan Agreement.

 

10.                               Subordination of Borrower’s Indebtedness to Guarantor. Any indebtedness of Borrower held by Guarantor now or in the future is and will be subordinated to the Indebtedness and Guarantor will collect, enforce and receive any such indebtedness of Borrower as trustee for Lender, but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty.

 

11.                               Waiver of Subrogation. Guarantor will have no right of, and hereby waives any claim for, subrogation or reimbursement against Borrower or any general partner of Borrower by reason of any payment by Guarantor under this Guaranty, whether such right or claim arises at law or in equity or under any contract or statute, until the Indebtedness has been paid in full and there has expired the maximum possible period thereafter during which any payment made by Borrower to Lender with respect to the Indebtedness could be deemed a preference under the United States Bankruptcy Code.

 

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12.                               Preference. If any payment by Borrower is held to constitute a preference under any applicable bankruptcy, insolvency, or similar laws, or if for any other reason Lender is required to refund any sums to Borrower, such refund will not constitute a release of any liability of Guarantor under this Guaranty. It is the intention of Lender and Guarantor that Guarantor’s obligations under this Guaranty will not be discharged except by Guarantor’s performance of such obligations and then only to the extent of such performance.

 

13.                               Financial Information and Litigation. Guarantor, from time to time upon written request by Lender, will deliver to Lender (a) such financial statements as Lender may reasonably require and (b) written updates on the status of all litigation proceedings that were disclosed or should have been disclosed by Guarantor to Lender as of the date of this Guaranty. If an Event of Default has occurred and is continuing, Guarantor will deliver to Lender upon written request copies of its state and federal tax returns.

 

14.                               Assignment. Lender may assign its rights under this Guaranty in whole or in part and upon any such assignment, all the terms and provisions of this Guaranty will inure to the benefit of such assignee to the extent so assigned. The terms used to designate any of the parties in this Guaranty will be deemed to include the heirs, legal representatives, successors and assigns of such parties, and the term “Lender” will also include any lawful owner, holder or pledgee of the Note.

 

15.                               Complete and Final Agreement. This Guaranty and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements. There are no unwritten oral agreements between the parties. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Guaranty and the other Loan Documents. Guarantor acknowledges that Guarantor has received a copy of the Note and all other Loan Documents. Neither this Guaranty nor any of its provisions may be waived, modified, amended, discharged, or terminated except by a writing signed by the party against which the enforcement of the waiver, modification, amendment, discharge, or termination is sought, and then only to the extent set forth in that writing.

 

16.                               Governing Law. This Guaranty will be governed by and enforced in accordance with the laws of the Property Jurisdiction, without giving effect to the choice of law principles of the Property Jurisdiction that would require the application of the laws of a jurisdiction other than the Property Jurisdiction.

 

17.                               Jurisdiction; Venue. Guarantor agrees that any controversy arising under or in relation to this Guaranty may be litigated in the Property Jurisdiction, and that the state and federal courts and authorities with jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies which will arise under or in relation to this Guaranty. Guarantor irrevocably consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. However, nothing in this Guaranty is intended to limit Lender’s right to bring any suit, action or proceeding relating to matters arising

 

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under this Guaranty against Guarantor or any of Guarantor’s assets in any court of any other jurisdiction.

 

18.                               Guarantor’s Interest in Borrower. Guarantor represents to Lender that Guarantor has a direct or indirect ownership or other financial interest in Borrower and/or will otherwise derive a material financial benefit from the making of the Loan.

 

19.                               Reserved.

 

20.                               Reserved.

 

21.                               Reserved.

 

22.                               Reserved.

 

23.                               Reserved.

 

24.                               Reserved.

 

25.                               State-Specific Provisions.

 

[DELETE ALL PROVISIONS FOR STATES OTHER THAN THE PROPERTY JURISDICTION. IF THERE IS NOT AN APPLICABLE STATE SPECIFIC PROVISION, INSERT “N/A”]

 

If the Property Jurisdiction is Arizona:  Guarantor waives, to the fullest extent allowed by applicable law, all of Guarantor’s rights under §§ 12-1566, 12-1641, 12-1642, 12-1643, 12-1644, 33-814, 44-141, 44-142, 47-3419 and 47-3605 of Arizona Revised Statutes, and Rule 17(f) of the Arizona Rules of Civil Procedure, as now in effect or as modified or amended in the future. Guarantor’s obligations under this Guaranty may be enforced by Lender in an action regardless of whether a trustee’s sale is held.

 

If the Property Jurisdiction is Arkansas:

 

In recognition of the liability of Guarantor pursuant to this Guaranty, Guarantor waives and relinquishes any and all rights, defenses and benefits limiting or exonerating the liability of Guarantor including the rights and defenses of an “accommodation party” pursuant to the Arkansas Uniform Commercial Code, Ark. Code Ann. Section 4-3-101 et seq.

 

If the Property Jurisdiction is California  To the extent any special California provision in this Section is inconsistent with any other Section of this Guaranty, the provision set forth below will control.

 

(a)                                 Guarantor understands that the exercise by Lender of certain rights and remedies contained in the Security Instrument (such as a nonjudicial foreclosure sale) may affect or eliminate Guarantor’s right of subrogation against Borrower and that Guarantor may therefore incur a partially or totally nonreimburseable liability

 

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under this Guaranty. Nevertheless, Guarantor hereby authorizes and empowers Lender to exercise, in its sole and absolute discretion, any right or remedy, or any combination thereof, which may then be available, since it is the intent and purpose of Guarantor that the obligations under this Guaranty will be absolute, independent and unconditional under any and all circumstances. Guarantor expressly waives any and all of the following:

 

(i)                                     Guarantor waives any defense (which defense, if Guarantor had not given this waiver, Guarantor might otherwise have) to a judgment against Guarantor by reason of a nonjudicial foreclosure.

 

(ii)                                  Guarantor waives any and all benefits under

 

(A)                               California Code of Civil Procedure Section 580a (which Section, if Guarantor had not given this waiver, would otherwise limit Guarantor’s liability after a nonjudicial foreclosure sale to the difference between the obligations of Guarantor under this Guaranty and the fair market value of the property or interests sold at such nonjudicial foreclosure sale).

 

(B)                               California Code of Civil Procedure Sections 580b and 580d (which Sections, if Guarantor had not given this waiver, would otherwise limit Lender’s right to recover a deficiency judgment with respect to purchase money obligations and after a nonjudicial foreclosure sale, respectively).

 

(C)                               California Code of Civil Procedure Section 726 (which Section, if Guarantor had not given this waiver, among other things, would otherwise require Lender to exhaust all of its security before a personal judgment could be obtained for a deficiency).

 

(b)                                 Notwithstanding any foreclosure of the lien of the Security Instrument, whether by the exercise of the power of sale contained in the Security Instrument, by an action for judicial foreclosure or by Lender’s acceptance of a deed in lieu of foreclosure, Guarantor will remain bound under this Guaranty.

 

(c)                                  In accordance with Section 2856 of the California Civil Code, Guarantor also waives any right or defense based upon an election of remedies by Lender, even though such election (e.g., nonjudicial foreclosure with respect to any collateral held by Lender to secure repayment of the Indebtedness) destroys or otherwise impairs the subrogation rights of Guarantor or the right of Guarantor (after payment of the obligations guaranteed by Guarantor under this Guaranty) to proceed against Borrower for reimbursement, or both, by operation of Section 580d of the Code of Civil Procedure or otherwise.

 

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(d)                                 In accordance with Section 2856 of the California Civil Code, Guarantor waives any and all other rights and defenses available to Guarantor by reason of Sections 2787 through 2855, inclusive, of the California Civil Code, including any and all rights or defenses Guarantor may have by reason of protection afforded to Borrower with respect to any of the obligations of Guarantor under this Guaranty pursuant to the antideficiency or other laws of the State of California limiting or discharging Borrower’s Indebtedness, including Sections 580a, 580b, 580d, and 726 of the California Code of Civil Procedure.

 

(e)                                  In accordance with Section 2856 of the California Civil Code, Guarantor agrees to withhold the exercise of any and all subrogation and reimbursement rights against Borrower, against any other person, and against any collateral or security for the Indebtedness, including any such rights pursuant to Sections 2847 and 2848 of the California Civil Code, until the Indebtedness has been indefeasibly paid and satisfied in full, all obligations owed to Lender under the Loan Documents have been fully performed, and Lender has released, transferred or disposed of all of its right, title and interest in such collateral or security.

 

If the Property Jurisdiction is Colorado:  Guarantor waives the benefit of C.R.S. Sections 13-50-101 through 13-50-103, inclusive.

 

If the Property Jurisdiction is Connecticut:  GUARANTOR ACKNOWLEDGES THAT THIS IS A “COMMERCIAL TRANSACTION” AS SUCH IS DEFINED IN CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, AS AMENDED. GUARANTOR FURTHER ACKNOWLEDGES THAT, PURSUANT TO SUCH SECTION, GUARANTOR HAS A RIGHT TO NOTICE OF AND HEARING PRIOR TO THE ISSUANCE OF ANY “PREJUDGMENT REMEDY.” NOTWITHSTANDING THE FOREGOING, GUARANTOR HEREBY WAIVES ALL RIGHTS TO SUCH NOTICE, JUDICIAL HEARING OR PRIOR COURT ORDER IN CONNECTION WITH ANY SUIT ON THIS GUARANTY.

 

If the Property Jurisdiction is Georgia:  Guarantor waives the benefit of O.C.G.A. Section 10-7-24.

 

If the Property Jurisdiction is Hawaii:

 

Guarantor waives the benefit of HRS Section 651 to the fullest extent permitted by law.

 

If the Property Jurisdiction is Indiana:  As used in this Guaranty, “Attorneys’ Fees and Costs” will mean (i) fees and out-of-pocket costs of Lender’s and Loan Servicer’s attorneys, as applicable, including costs of Lender’s and Loan Servicer’s in-house counsel, support staff costs, costs of preparing for litigation, computerized research, telephone and facsimile transmission expenses, mileage, deposition costs, postage, duplicating, process service, videotaping and similar costs and expenses; (ii) costs and fees of expert witnesses, including appraisers; and (iii) investigatory fees. Nothing in this clause is intended to limit the nature or extent of any costs or expenses that may be recovered by Lender from Guarantor.

 

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If the Property Jurisdiction is Iowa:

 

IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS GUARANTY MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.

 

Borrower acknowledges receipt of a copy of this Guaranty, the Note, the Security Instrument, the Loan Agreement and all other Loan Documents.

 

If the Property Jurisdiction is Kentucky:

 

For purposes of KRS 371.065, (a) the maximum aggregate liability of Guarantor hereunder is the product of the Indebtedness multiplied by 10, plus all interest accruing on the obligations guaranteed under Sections 2 and 3 above (the “Guaranteed Obligations”) and fees, charges and costs of collecting the Guaranteed Obligations, including reasonable attorneys’ fees, and (b) this Guaranty will terminate on the date which is 6 years after the Maturity Date, provided that such termination will not affect the liability of Guarantor with respect to Guaranteed Obligations created or incurred prior to such date or extensions or renewals of, interest accruing on, or fees, costs or expenses incurred with respect to the Guaranteed Obligations on or after such date.

 

If the Property Jurisdiction is Louisiana:

 

1.                                      Section 6(f) of this Guaranty is modified, and a new Section 6(g) is added, as follows:

 

(f)                                   Guarantor hereby waives any right to revoke this Guaranty as to any future advances made by Lender to protect Lender’s interest in the Mortgaged Property.

 

(g)                                  Guarantor hereby waives any right to demand or require collateral security from Borrower, any Other Guarantor or any other Person as provided by applicable law or otherwise.

 

2.                                      The following provision is added to this Guaranty:

 

At any time or from time to time and any number of times, without notice to Guarantor and without affecting the liability of Guarantor, either of the following may occur:

 

(a)                                 The payment of the Indebtedness or any security for the Indebtedness, or both, may be subordinated to the right to payment or the security, or both, of any other present or future creditor (as defined in the Bankruptcy Code) of Borrower.

 

14

 

(b)                                 Lender may apply any payments made by Borrower to Lender to the Indebtedness in such priority as Lender may determine in its discretion.

 

3.                                      Section 8 of this Guaranty is modified to read as follows:

 

Liability of Multiple Guarantors. The obligations of Guarantor (and each party named as a Guarantor in this Guaranty) and any Other Guarantor will be on a joint and several and solidary basis. Lender, in its sole and absolute discretion, may take any of the following actions.

 

(a)                                 Lender may bring suit against Guarantor, or any one or more of the parties named as a Guarantor in this Guaranty, and any Other Guarantor, jointly and severally, or against any one or more of them.

 

(b)                                 Lender may compromise or settle with Guarantor, any one or more of the parties named as a Guarantor in this Guaranty, or any Other Guarantor, for such consideration as Lender may deem proper.

 

(c)                                  Lender may discharge, release or agree not to sue one or more of the parties named as a Guarantor in this Guaranty, or any Other Guarantor, from liability.

 

(d)                                 Lender may otherwise deal with Guarantor and any Other Guarantor, or any one or more of them, in any manner, and no such action will impair the rights of Lender to collect from Guarantor any amount guaranteed by Guarantor under this Guaranty.

 

If the Property Jurisdiction is Minnesota:  Guarantor waives the benefit of Minnesota Statutes Section 582.30.

 

If the Property Jurisdiction is Nevada:  Pursuant to Nevada Revised Statute 40.495, Guarantor also hereby unconditionally and irrevocably waives the provisions of Nevada Revised Statute 40.430, and acknowledges that Lender may institute a separate action against Guarantor for the enforcement of Guarantor’s obligations, regardless of whether Lender has exercised any power of sale or other foreclosure remedies against the Mortgaged Property.

 

If the Property Jurisdiction is New Jersey:

 

1.                                      Section 2(a)(ii) of this Guaranty is modified to read as follows:

 

Guarantor guarantees the full and prompt payment and performance when due of all of Borrower’s obligations under Sections 6.12, 10.02(b), 10.02(d), and 5.05 of the Loan Agreement.

 

2.                                      Guarantor further waives all defenses based on suretyship or impairment of collateral (Guarantor and Lender intending this waiver to have the effects

 

15

 

described in Section 48 of the Restatement (Third) of the Law of Suretyship and Guaranty).

 

3.                                      Guarantor hereby acknowledges that it has read and understands all of the provisions of this Guaranty, including the waiver of jury trial set forth in Section 27 below, and has been advised by legal counsel as Guarantor has deemed to be necessary or appropriate.

 

If the Property Jurisdiction is New Mexico:  Pursuant to Section 58-6-5 NMSA 1978, a contract, promise or commitment to loan money or to grant, extend or renew credit, or any modification thereof, in an amount greater than $25,000.00 not primarily for personal, family or household purposes made by a financial institution is not enforceable unless made in writing and signed by the party to be charged or that party’s authorized representatives.

 

If the Property Jurisdiction is North Carolina:  Guarantor waives all rights granted by Sections 26-7 through 26-9, inclusive, of the North Carolina Statutes.

 

If the Property Jurisdiction is Oklahoma:  If Lender elects to enforce this Guaranty before, or without, enforcing the Security Instrument, Guarantor waives any right, whether pursuant to 12 Okla. Stat. 686 or otherwise, to require Lender to set off the value of the Mortgaged Property against the Indebtedness.

 

If the Property Jurisdiction is Oregon:  UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY LENDER CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY BORROWER’S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY LENDER TO BE ENFORCEABLE.

 

If the Property Jurisdiction is Pennsylvania:  This Guaranty constitutes a guaranty and suretyship agreement and Guarantor is executing this Guaranty as both a guarantor and surety.

 

If the Property Jurisdiction is Pennsylvania and this Guaranty is executed by only one spouse:

 

16

 

SPOUSAL ESTOPPEL

 

The undersigned hereby certifies to Lender that (1) he or she is the spouse of Guarantor, (2) there is no divorce proceeding concerning the undersigned and Guarantor which is currently pending, threatened or anticipated; and (3) the undersigned has no right, claim, title or interest in or to any of the assets or items listed or described on the financial statements of Guarantor dated                    , which were delivered to Lender.

 

	
 
    	
 
    
	
Print Name:
    	
 
    	
 
    
			

 

If the Property Jurisdiction is Texas:  In addition to the waivers set forth elsewhere in this Guaranty:

 

(a)                                 Guarantor waives the benefit of any right of discharge under Chapter 43 of the Texas Civil Practice and Remedies Code and all other rights of sureties and guarantors under such Chapter; and

 

(b)                                 Guarantor waives all rights or defenses arising under Rule 31 of the Texas Rules of Civil Procedure, Section 17.001 of the Texas Civil Practice and Remedies Code, Chapter 43 of the Texas Civil Practice and Remedies Code, or any other statute or law, common law, in equity, under contract or otherwise, or under any amendments, recodifications, supplements or any successor statute or law of or to any such statute or law; and all rights under Sections 51.003, 51.004 and 51.005 of the Texas Property Code and under any amendments, recodifications, supplements or any successor statute or law of or to any such statute or law.

 

If the Property Jurisdiction is Virginia:  Guarantor waives the benefit of the provisions of Sections 49-25 and 49-26 of the Code of Virginia (1950), as amended.

 

If the Property Jurisdiction is Washington:

 

NOTICE:  ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

 

If the Property Jurisdiction is West Virginia:  Guarantor waives the benefit of W. Va. Code 45-1-1, et. seq.

 

If the Property Jurisdiction is Wisconsin and this Guaranty is executed by only one spouse:  MARITAL PURPOSE STATEMENT — Each of the undersigned hereby acknowledges and agrees that the obligations incurred by him or her under this Guaranty are incurred in the interest of his or her marriage or family.

 

	
 
    	
 
    
	
Print Name:
    	
 
    	
 
    
			

 

17

 

Upon revocation by written notice or actual notice of death, this Guaranty will continue in full force and effect as to all Indebtedness contracted for or incurred before revocation, and as to them Lender will have the rights provided by this Guaranty as if no revocation had occurred. Any renewal, extension or increase in the rate of any such Indebtedness, whether made before or after revocation, will constitute Indebtedness contracted for or incurred before revocation.

 

26.                               Community Property Provision.

 

[CHOOSE ONE SECTION 26:]

 

If Guarantor is an entity, or is not married, or does not reside in a community property state or a state in which community property elections are available (including Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin):

 

Not applicable.

 

If a married Guarantor’s state of residence is California: Guarantor is a married individual residing in California. Guarantor acknowledges that this Guaranty is with recourse against the separate property and assets of such individual and against the marital community property and assets of such individual and his or her spouse. (California — spousal signature not required)

 

If a married Guarantor’s state of residence is Alaska and Guarantor is not subject to a community property agreement or community property trust: Guarantor is a married individual residing in Alaska and Guarantor’s property is not subject to a community property agreement or community property trust. (Alaska— spousal signature not required)

 

If a married Guarantor’s state of residence is Texas, and the spouse of the Guarantor is not also a Guarantor of the Loan: Guarantor certifies that all of the assets that are shown on the financial statements of                    dated as of                 which were submitted to Lender in connection with the Loan, are either (i) the sole and separate property of Guarantor, (ii) community property of Guarantor and his/her spouse, subject to the sole management, control and disposition by Guarantor, or (iii) the community property of Guarantor and his/her spouse, subject to the joint management, control and disposition of Guarantor and his/her spouse. (Texas — spousal signature not required)

 

If a married Guarantor resides in any other community property state not identified in the alternatives above or resides in Alaska and is subject to a community property agreement or community property trust: Any person signing this Guaranty solely as the spouse of a Guarantor will bind only his/her marital community property and community assets and will not bind his/her sole and separate property and assets, if any, to the payment and performance of obligations under this Guaranty. (Community Property — spousal signature required)

 

18

 

27.                               WAIVER OF TRIAL BY JURY.

 

(a)                                       GUARANTOR AND LENDER EACH COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP BETWEEN THE PARTIES AS GUARANTOR AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY.

 

(b)                                       GUARANTOR AND LENDER EACH WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

 

28.                               Attached Riders.  The following Riders, if marked with an “X” in the space provided, are attached to this Guaranty:

 

[AT LEAST ONE OF THE FOLLOWING MUST BE CHECKED:]

 

o                                    None

 

o                                    Material Adverse Change Rider

 

o                                    Minimum Net Worth/Liquidity Rider

 

o                                    Other

 

29.                               Attached Exhibit. The following Exhibit, if marked with an “X” in the space provided, is attached to this Guaranty:

 

o                                    Exhibit A                                             Modifications to Guaranty

 

(Remainder of page intentionally left blank; signature pages follow.)

 

19

 

[THE FOLLOWING LANGUAGE MUST APPEAR ON THE SAME PAGE AS GUARANTOR’S SIGNATURE IF THE PROPERTY JURISDICTION IS SOUTH CAROLINA. DELETE SECTION 30 IN ITS ENTIRETY FOR ALL STATES OTHER THAN SOUTH CAROLINA.]

 

30.                               South Carolina — Relinquishment of Statutory Appraisal Rights. The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked may within thirty (30) days after the sale of the mortgaged property apply to the court for an order of appraisal.  The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the amount of any deficiency owing in connection with the transaction.  THE UNDERSIGNED HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE MORTGAGED PROPERTY.

 

IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty under seal or has caused this Guaranty to be signed and delivered under seal by its duly authorized representative. [INCLUDE IF REQUIRED BY APPLICABLE LAW:]  Guarantor intends that this Guaranty will be deemed to be signed and delivered as a sealed instrument.

 

[SIGNATURES AND ACKNOWLEDGMENTS]

 

[ADD SEALS AND WITNESSES IF REQUIRED]

 

[SUPPLY THE FOLLOWING FOR EACH GUARANTOR]

 

(a)                                 Name and Address of Guarantor

 

	
Name:
    	
         
    	
 
    
	
 
    	
 
    
	
Address:
    	
 
    
	
 
    	
 
    

 

(b)                                 Guarantor represents and warrants that Guarantor is:

 

[    ] single

[    ] married

[    ] an entity

 

(c)                                  Guarantor represents and warrants that Guarantor’s state of residence is                . [IF GUARANTOR IS AN ENTITY, INSERT “N/A”]

 

[IF A MARRIED GUARANTOR’S STATE OF RESIDENCE IS A COMMUNITY PROPERTY STATE, OR A STATE IN WHICH COMMUNITY PROPERTY ELECTIONS ARE AVAILABLE (INCLUDING ALASKA, ARIZONA, CALIFORNIA, IDAHO, LOUISIANA, NEVADA, NEW MEXICO, TEXAS, WASHINGTON, OR

 

20

 

WISCONSIN), EITHER INCLUDE A SPOUSAL CONSENT OR PROVIDE AN  EXPLANATION IN THE PLIM AS TO WHY NO SPOUSAL CONSENT IS REQUIRED.]

 

[SPOUSE’S SIGNATURE AND ACKNOWLEDGMENT, IF APPLICABLE]

 

[ADD SEALS AND WITNESSES IF REQUIRED]

 

[SUPPLY THE FOLLOWING IF SPOUSE IS SIGNING/CONSENTING]

 

 

	
Spouse’s Name:
    	
 
    	
 
    
	
Spouse’s   Address:
    	
 
    

 

[DO NOT INCLUDE SOCIAL SECURITY NUMBERS]

 

21

 

EXHIBIT A

 

MODIFICATIONS TO GUARANTY

 

The following modifications are made to the text of the Guaranty that precedes this Exhibit:

 

None.

 

Exhibit A - 1EX-4.4

 Exhibit 4.4 

CURRENCYSHARES® CHINESE RENMINBI TRUST 

PARTICIPANT AGREEMENT 
 This Participant
Agreement (this “Agreement”), dated as of                     , 2015, is entered into by and between
                                        
(with respect to this Agreement, the “Authorized Participant”, and with respect to the Trust Agreement referred to below, an “Authorized Participant”), The Bank of New York Mellon, a New York banking corporation,
not in its individual capacity but solely as trustee (the “Trustee”) of the CurrencyShares® Chinese Renminbi Trust (the “Trust”), and Guggenheim Specialized
Products LLC, d/b/a Guggenheim Investments, as sponsor (the “Sponsor”) of the Trust. 
 SUMMARY 

The Trustee serves as the trustee of the Trust pursuant to the Depositary Trust Agreement dated as of August 16, 2011 between the Sponsor and the Trustee
(the “Trust Agreement”). As provided in the Trust Agreement and described in the Prospectus (defined below), units of fractional undivided beneficial interests in and ownership of the Trust (the “Shares”) may be
created or redeemed by the Trustee for an Authorized Participant in aggregations of fifty thousand (50,000) Shares (each aggregation, a “Basket”). Baskets are offered only pursuant to the registration statement of the Trust on Form S-1, as amended (Registration No: 333-198918), as declared effective by the Securities and Exchange Commission (“SEC”) and as the same may be amended from time to time thereafter
(collectively, the “Registration Statement”), together with the prospectus of the Trust in the form first filed with the SEC pursuant to Rule 424 (the “Prospectus”) adopted under the Securities Act of 1933, as
amended (the “1933 Act”). Under the Trust Agreement, the Trustee is authorized to issue Baskets to, and redeem Baskets from, Authorized Participants under the Trust Agreement, only through the facilities of The Depository Trust
Company (“DTC”) or a successor depository, and only in exchange for an amount of Chinese Renminbi that is transferred between such Authorized Participant and the Trust. Under the Trust Agreement, the Trustee issues Baskets in
exchange for Chinese Renminbi which are transferred by an Authorized Participant to the London Branch of JPMorgan Chase Bank, N.A. (the “Depository”), and when the Trustee redeems Baskets tendered for redemption by an Authorized
Participant in exchange for Chinese Renminbi, the Chinese Renminbi held in the Trust Account are transferred to the Authorized Participant by the Depository. The foregoing Chinese Renminbi transfers are also governed by the Deposit Account Agreement
the Trust has entered into with the Depository (the “Deposit Account Agreement”). This Agreement sets forth the specific procedures by which an Authorized Participant may create or redeem Baskets. 

Because new Shares can be created and issued on an ongoing basis, at any point during the life of the Trust, a “distribution,” as such term is used
in the 1933 Act, may be occurring. The Authorized Participant is cautioned that some of its activities may result in its being deemed a participant in a distribution in a manner that would render it a statutory underwriter and subject it to the
prospectus-delivery and liability provisions of the 1933 Act. The Authorized Participant should review the “Plan of Distribution” portion of the Prospectus and consult with its own counsel in connection with entering into this Agreement
and placing an Order (defined below). 
 Capitalized terms used but not defined in this Agreement shall have the meanings assigned to such terms in the
Trust Agreement. To the extent there is a conflict between any provision of this Agreement and the provisions of the Trust Agreement, the provisions of the Trust Agreement shall control. 

To give effect to the foregoing premises and in consideration of the mutual covenants and agreements set forth below, the parties hereto agree as follows:

 Section 1. Order Placement. To place orders for the Trustee to create or redeem one or more Baskets, Authorized Participants must follow the
procedures for creation and redemption referred to in Section 3 of this Agreement and the procedures described in Attachment A hereto (the “Procedures”), as each may be amended, modified or supplemented from time to time. 

 Section 2. Status, Representations and Warranties of the Parties. 

(a) The Authorized Participant represents and warrants and covenants the following on the date hereof and at each time of purchase by the
Authorized Participant of a Basket from the Trust (each such time, the “Time of Purchase”), that: 
 (i) The Authorized Participant
is a participant of DTC (as such a participant, a “DTC Participant”). If the Authorized Participant ceases to be a DTC Participant, the Authorized Participant shall give immediate notice to the Trustee of such event, and this
Agreement shall terminate immediately as of the date the Authorized Participant ceased to be a DTC Participant. 
 (ii) Unless
Section 2(a)(iii) applies, the Authorized Participant either (A) is registered as a broker-dealer under the Securities Exchange Act of 1934, as amended (“1934 Act”), and is a member in good standing of Financial Industry
Regulatory Authority, Inc. (“FINRA”), or (B) is exempt from being, or otherwise is not required to be, licensed as a broker-dealer or a member of FINRA, and in either case is qualified to act as a broker or dealer in the states
or other jurisdictions where the nature of its business so requires. In connection with the purchase or redemption of Baskets and any related offers or sales of Shares, the Authorized Participant will maintain any such registrations, qualifications
and membership in good standing and in full force and effect throughout the term of this Agreement. The Authorized Participant will comply with all applicable federal laws, the laws of the states or other jurisdictions concerned, and the rules and
regulations promulgated thereunder, and with FINRA’s rules (if it is a FINRA member), including the NASD Conduct Rules, and will not offer or sell Shares in any state or jurisdiction where they may not lawfully be offered and/or sold. 

(iii) If the Authorized Participant is offering or selling Shares in jurisdictions outside the several states, territories and possessions of
the United States and is not otherwise required to be registered, qualified or a member of FINRA as set forth in Section 2(a)(ii) above, the Authorized Participant will, in connection with such offers and sales, (A) observe the applicable
laws of the jurisdiction in which such offer and/or sale is made, (B) comply with the prospectus delivery and other requirements of the 1933 Act, and the regulations promulgated thereunder, and (C) conduct its business in accordance with
FINRA’s rules, including the NASD Conduct Rules. 
 (iv) The Authorized Participant is in compliance with the money laundering and
related provisions of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, and the regulations promulgated thereunder (“USA PATRIOT Act”), if
the Authorized Participant is subject to the requirements of the USA PATRIOT Act. 
 (v) The Authorized Participant has the capability to
send and receive communications via authenticated telecommunication facility to and from the Trustee. The Authorized Participant shall confirm such capability to the satisfaction of the Trustee by the end of the Business Day before placing its first
order with the Trustee (whether such order is to create or to redeem Baskets). 

 (b) The Sponsor represents and warrants that: 

(i) on the effective date of the Registration Statement and at each Time of Purchase, the Trust’s Registration Statement shall be
effective and no stop order of the SEC with respect thereto shall have been issued and no proceedings for such purpose shall have been instituted or, to the Sponsor’s knowledge, will then be contemplated by the SEC; the Registration Statement
complies in all material respects with the requirements of the 1933 Act, and the Prospectus complied as of its date, and complies at the Time of Purchase, in all material respects with the requirements of the 1933 Act; and the conditions to the use
of Form S-1 have been satisfied; the Registration Statement does not contain an untrue statement 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, the
Prospectus will not, as of its date and at the Time of Purchase, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading and, as of 4:00 p.m. on the date of this Agreement (the “Time of Sale”), the documents comprising the Disclosure Package (as defined below) did not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that
the Sponsor makes no warranty or representation with respect to any statement contained in the Registration Statement, the Prospectus or the Disclosure Package in reliance upon and in conformity with information concerning the Authorized Participant
and furnished in writing by or on behalf of the Authorized Participant to the Sponsor expressly for use therein. The “Disclosure Package” is the Prospectus and any amendments and supplements thereto at the Time of Sale and any free
writing prospectus as defined in Rule 405 of the 1933 Act (a “FWP”) prepared by, for or on behalf of the Sponsor before the Time of Sale and intended for general distribution; 

(ii) the Shares, when issued and delivered against payment of consideration therefor, as provided in this Agreement, will be duly and validly
authorized, issued, fully paid and non-assessable and free of statutory and contractual preemptive rights, rights of first refusal and similar rights; 

(iii) the Sponsor has been duly organized and, on the effective date of the Registration Statement and at each Time of Purchase, will be
validly existing as a limited liability company in good standing under the laws of the State of Delaware, with full power and authority to act as the sponsor of the Trust as described in the Registration Statement and the Prospectus, and has all
requisite power and authority to execute and deliver this Agreement; and 
 (iv) at the time the Sponsor makes an offer of Shares following
the filing of the Registration Statement, neither the Trust nor the Sponsor will be an “ineligible issuer” as defined in Rule 405 of the 1933 Act. 

 Section 3. Orders. 

(a) All orders to create or redeem Baskets shall be made in accordance with the terms of the Trust Agreement, the Deposit Account Agreement,
this Agreement and the Procedures. Each party will comply with such foregoing terms and procedures to the extent applicable to it. The Authorized Participant hereby consents to the use of recorded telephone lines whether or not such use is reflected
in the Procedures. The Trustee and Sponsor may issue additional or other procedures from time to time relating to the manner of creating or redeeming Baskets which are not related to the Procedures, and the Authorized Participant will comply with
such procedures of which it has received notice in accordance with Section 18(c). 
 (b) The Authorized Participant acknowledges and
agrees that each order to create a Basket (a “Purchase Order”) and each order to redeem a Basket (a “Redemption Order”, and each Purchase Order and Redemption Order, an “Order”) may not be revoked
by the Authorized Participant upon its delivery to the Trustee. A form of Purchase Order is attached hereto as Exhibit B and a form of Redemption Order is attached hereto as Exhibit C. Notwithstanding the foregoing, the Trustee agrees to
use reasonable efforts to facilitate cancellation of an Order upon prompt inquiry from the Authorized Participant after placing such Order and only where the written cancellation of the Order has been delivered to the Trustee (by the method
permitted for delivery of the Order to the Trustee) not later than the Order Cut-Off Time, or Early Order Cut-Off Time, as applicable. 
 (c)
The delivery of the Shares against deposits of Chinese Renminbi may be suspended generally, or refused with respect to particular requested deliveries, during any period when the transfer books of the Trustee are closed, if (taking into account
prior orders) the order would exceed the deposit limits specified in the Deposit Account Agreement, or if any such action is deemed necessary or advisable by the Trustee or the Sponsor for any reason at any time or from time to time. Except as
otherwise provided in the Trust Agreement, the surrender of Shares for purposes of withdrawing Chinese Renminbi may not be suspended. 
 Section 4.
Chinese Renminbi Transfers. Any Chinese Renminbi to be transferred in connection with any Order shall be transferred between the Authorized Participant’s account and the Trust’s deposit accounts established for such transfers pursuant
to the Deposit Account Agreement (the “Deposit Accounts”) in accordance with the Procedures. The Authorized Participant shall be responsible for all costs and expenses relating to or connected with any transfer of Chinese Renminbi
between its account and the Deposit Accounts, including any late fees and other charges, if any, for which the Trustee becomes responsible in the event that Chinese Renminbi are not transferred from the Authorized Participant’s account in
accordance with the Procedures. 
 Section 5. Fees. 

(a) In connection with each Order by an Authorized Participant to create or redeem one or more Baskets, the Trustee shall charge, and the
Authorized Participant shall pay to the Trustee, the transaction fee prescribed in the Trust Agreement applicable to such creation or redemption. The initial transaction fee shall be five hundred dollars ($500). The transaction fee may be waived or
otherwise adjusted from time to time as set forth in the Prospectus. 
 (b) In addition to the fee described in Section 5(a), in
connection with each Order by an Authorized Participant to create or redeem two or more Baskets, the Sponsor shall charge, and the Authorized Participant shall pay to the Sponsor, an additional transaction fee applicable to such creation or
redemption. The additional transaction fee shall range from five hundred dollars ($500) to two thousand dollars ($2,000), based on the number of Baskets created or redeemed per Order. The additional transaction fee may be waived or otherwise
adjusted from time to time as set forth in the Prospectus or the Procedures. 
 (c) Remittance of payment for the transaction fees set forth
in Sections 5(a) and 5(b) shall be made in accordance with the Procedures. 

 Section 6. Authorized Persons. Concurrently with the execution of this Agreement and from time to
time thereafter, the Authorized Participant shall deliver to the Trustee notarized and duly certified as appropriate by its secretary or other duly authorized official, a certificate in the form of Exhibit A setting forth the names and signatures of
all persons authorized to give instructions relating to activity contemplated hereby or by any other notice, request or instruction given on behalf of the Authorized Participant (each, an “Authorized Person”). The Trustee may accept
and rely upon such certificate as conclusive evidence of the facts set forth therein and shall consider such certificate to be in full force and effect until the Trustee receives a superseding certificate bearing a subsequent date, which shall be
delivered in accordance with the notice provisions set forth in Section 18(c), but which also may be delivered in PDF format via e-mail with the original concurrently sent to the Trustee by regular mail, postage prepaid. Upon the termination or
revocation of authority of any Authorized Person by the Authorized Participant, the Authorized Participant shall give immediate written notice of such fact to the Trustee and such notice shall be effective upon receipt by the Trustee. The Trustee
shall issue to each Authorized Person a unique personal identification number (the “PIN”) by which such Authorized Person shall be identified and by which instructions issued by the Authorized Participant hereunder shall be
authenticated. The PIN shall be kept confidential by the Authorized Participant and shall only be provided to the Authorized Person. If, after issuance, the Authorized Person’s PIN is changed, the new PIN shall become effective on a date
mutually agreed upon by the Authorized Participant and the Trustee. 
 Section 7. Redemption. To facilitate orderly delivery of Chinese Renminbi
to the Authorized Participant’s Account on T+3, the Authorized Participant shall place with the Trustee on T+1 redemption Shares or collateral in the form of U.S. Dollars having a value at least equal to 105% of the NAV per Share of the
redemption Shares to be delivered, which collateral shall be marked to market daily by the Trustee and the Authorized Participant until the delivery of the redemption Shares or the exercise of a buy-in by the Trust, as further described below. The
Trustee shall return such collateral upon delivery of all redemption Shares. The parties hereto further agree that the Trust, acting in good faith, may apply the collateral to purchase the undelivered Shares at any time after T+3 and the Authorized
Participant agrees to accept liability for any shortfall between the cost to the Trust of purchasing such Shares and the value of the collateral and for any expense incurred by the Sponsor or Trustee (including attorneys’ fees an disbursements)
in the event the Authorized Participant fails to deliver Shares or any such shortfall upon the Sponsor’s demand. Neither the Sponsor nor the Trustee shall have any liability to the Authorized Participant for any application of the collateral or
other action taken as provided in this paragraph. 
 The Authorized Participant further represents and warrants that it will not obtain an Order Number (as
described in the Procedures) from the Trustee for the purpose of redeeming a Basket unless it first ascertains that (i) it or its customer, as the case may be, owns outright or has full legal authority and legal and beneficial right to tender
for redemption the Baskets to be redeemed and to receive the entire proceeds of the redemption, and (ii) such Baskets have not been loaned or pledged to another party, borrowed or temporarily obtained from another party and are not the subject
of any repurchase agreement, reverse repurchase agreement or securities lending agreement, or any other arrangement which would preclude the delivery of such Baskets to the Trustee on the third Business Day following the date of the Redemption
Order. 
 Section 8. Role of Authorized Participant. 

(a) The Authorized Participant acknowledges that, for all purposes of this Agreement and the Trust Agreement, the Authorized Participant is and
shall be deemed to be an independent contractor and has and shall have no authority to act as agent for the Trust, the Sponsor, the Trustee or the Depository, in any matter or in any respect. 

(b) The Authorized Participant will make itself and its employees available, upon request, during normal business hours to consult with the
Trustee, the Depository or their designees concerning the performance of the Authorized Participant’s responsibilities under this Agreement. 

 (c) The Authorized Participant will maintain records of all sales of Shares made by or through it
as required by law and will furnish copies of such records to the Sponsor upon the reasonable request of the Sponsor, subject to any privacy or confidentiality obligations it may have to its customers arising under federal or state securities laws
or the applicable rules of any self regulatory organization. The Sponsor will not use any information provided by the Authorized Participant pursuant to this paragraph or disclose such information to others except in connection with the performance
of its duties and responsibilities hereunder, including making servicing and informational mailings related to the Trust, or except as may be required by applicable law. 

Section 9. Indemnification. 
 (a) The
Authorized Participant hereby indemnifies and holds harmless the Trustee, the Depository, the Trust, the Sponsor, their respective direct or indirect affiliates (as defined below) and their respective directors, officers, employees and agents (each,
an “AP Indemnified Party”) from and against any losses, liabilities, damages, costs and expenses (including attorney’s fees and the reasonable cost of investigation) incurred by such AP Indemnified Party as a result of or in
connection with: (i) any breach by the Authorized Participant of any provision of this Agreement, including any of its representations, warranties or covenants; (ii) any failure on the part of the Authorized Participant to perform any of
its other obligations set forth in this Agreement; (iii) any failure by the Authorized Participant to comply with applicable laws and the rules and regulations of any governmental entity or any self-regulatory organization or futures exchange
to the extent the foregoing relates to offers or sales of, transaction in, and activities with respect to Baskets; (iv) any actions of such AP Indemnified Party in reliance upon any instructions issued in accordance with the Procedures
reasonably believed by the AP Indemnified Party to be genuine and to have been given by the Authorized Participant; or (v) (A) any representation by the Authorized Participant, its employees or its agents or other representatives about the
Shares, any AP Indemnified Party or the Trust that is not consistent with the Trust’s Prospectus as then-supplemented made in connection with the offer or the solicitation of an offer to buy or sell Shares and (B) any untrue statement or
alleged untrue statement of a material fact (1) contained in any research report, marketing material or sales literature described in Section 13(b) or in any FWP prepared by the Authorized Participant or (2) furnished by the
Authorized Participant for use in a FWP prepared by, for or on behalf of the Sponsor, or any alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein not misleading to the
extent that such statement or omission relates to the Shares, any AP Indemnified Party or the Trust, unless, in either case, such representation, statement or omission was made or included by the Authorized Participant at the written direction of
the Sponsor or is based upon any omission or alleged omission by the Sponsor to state a material fact in connection with such representation, statement or omission necessary in order to make such representation, statement or omission not misleading.

 (b) The Sponsor hereby agrees to indemnify and hold harmless the Authorized Participant, its respective subsidiaries, affiliates,
directors, officers, employees and agents, and each person, if any, who controls such persons within the meaning of Section 15 of the 1933 Act (each, a “Sponsor Indemnified Party”) from and against any losses, liabilities,
damages, costs and expenses (including attorneys’ fees and the reasonable cost of investigation) incurred by such Sponsor Indemnified Party as a result of (i) any breach by the Sponsor of any provision of this Agreement that relates to the
Sponsor, including its representations, warranties and covenants; (ii) any failure on the part of the Sponsor to perform any other obligation of the Sponsor set forth in this Agreement; (iii) any failure by the Sponsor to comply with
applicable laws and the rules and regulations of any governmental entity, any self-regulatory organization or futures exchange to the extent the foregoing relates to offers or sales of, transaction in, and activities with respect to Baskets; or
(iv) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or in any amendment thereof, or in the Prospectus, or in any amendment thereof or supplement thereto, or in any FWP prepared by,
for or on behalf of the Sponsor, or arising out of or based upon the omission or alleged omission to state therein a material fact 

 
required to be stated therein or necessary in order to make the statements therein not misleading, except those statements based on information furnished in writing by or on behalf of the
Authorized Participant expressly for use in the Registration Statement, amendment thereof, Prospectus, amendment thereof or supplement thereto, or FWP. 

(c) (i) This Section 9 shall not apply to any AP Indemnified Party or any Sponsor Indemnified Party (each, an “Indemnified
Party”) to the extent any such losses, liabilities, damages, costs and expenses are incurred as a result of, or in connection with, any action or failure to act that constitutes gross negligence, bad faith or willful misconduct on the part
of the such Indemnified Party. (ii) The term “affiliate” in this Section 9 shall include, with respect to any person, entity or organization, any other person, entity or organization which directly, or indirectly through one or
more intermediaries, controls, is controlled by or is under common control with such person, entity or organization. 
 (d) If the
indemnification provided for in this Section 9 is unavailable to an indemnified party under Sections 9(a) or 9(b) or insufficient to hold an indemnified party harmless in respect of any losses, liabilities, damages, costs and expenses referred
to therein, then each applicable indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, liabilities, damages, costs and expenses (i) in such proportion as is appropriate to
reflect the relative benefits received by the Sponsor and the Trust, on the one hand, and by the Authorized Participant, on the other hand, from the services provided hereunder or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Sponsor and the Trust, on the one hand, and of the Authorized
Participant, on the other hand, in connection with, to the extent applicable, the statements or omissions which resulted in such losses, liabilities, damages, costs and expenses, as well as any other relevant equitable considerations. The relative
benefits received by the Sponsor and the Trust, on the one hand, and the Authorized Participant, on the other hand, shall be deemed to be in the same respective proportions as the amount of Chinese Renminbi transferred to the Trust under this
Agreement on the one hand (expressed in dollars) bears to the amount of economic benefit received by the Authorized Participant in connection with this Agreement on the other hand. To the extent applicable, the relative fault of the Sponsor on the
one hand and of the Authorized Participant on the other shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or alleged omission relates to information
supplied by the Sponsor or by the Authorized Participant and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of
the losses, liabilities, damages, costs and expenses referred to in this Section 9(d) shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating, preparing to defend or
defending any action, suit or proceeding (each a “Proceeding”) related to such losses, liabilities, damages, costs and expenses. 

(e) The Sponsor and the Authorized Participant agree that it would not be just and equitable if contribution pursuant to this Section 9
were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) above. The Authorized Participant shall not be required to contribute any amount
in excess of the amount by which the total price at which the Shares created by the Authorized Participant and distributed to the public were offered to the public exceeds the amount of any damage which the Authorized Participant has otherwise been
required to pay by reason of such untrue statement or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. 
 (f) The indemnity and contribution agreements
contained in this Section 9 shall remain in full force and effect regardless of any investigation made by or on behalf of the Authorized Participant, its partners, stockholders, members, directors, officers, employees and or any person

 
(including each partner, stockholder, member, director, officer or employee of such person) who controls the Authorized Participant within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, or by or on behalf of the Sponsor, its partners, stockholders, members, directors, officers, employees or any person who controls the Sponsor within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act, and shall survive any termination of this Agreement. The Sponsor and the Authorized Participant agree promptly to notify each other of the commencement of any Proceeding against it and, in the case of the Sponsor, against any of the
Sponsor’s officers or directors, in connection with the issuance and sale of the Shares or in connection with the Registration Statement or the Prospectus. 

Section 10. Liability. 
 (a)
Limitation of Liability. None of the Sponsor, the Trustee, the Authorized Participant, and the Depository shall be liable to each other or to any other person, including any party claiming by, through or on behalf of the Authorized Participant, for
any losses, liabilities, damages, costs or expenses arising out of any mistake or error in data or other information provided to any of them by each other or any other person or out of any interruption or delay in the electronic means of
communications used by them. 
 (b) Tax Liability. The Authorized Participant shall be responsible for the payment of any transfer tax, sales
or use tax, stamp tax, recording tax, value added tax and any other similar tax or government charge applicable to the creation or redemption of any Basket made pursuant to this Agreement, regardless of whether or not such tax or charge is imposed
directly on the Authorized Participant. To the extent the Trustee, the Sponsor or the Trust is required by law to pay any such tax or charge, the Authorized Participant agrees to promptly indemnify such party for any such payment, together with any
applicable penalties, additions to tax or interest thereon. 
 (c) In no event shall an undersigned party be liable for any special,
indirect, incidental, punitive, exemplary or consequential damages of any kind whatsoever in connection with this Agreement, even if previously informed of or advised of the likelihood of such damages and regardless of the form of action or theory
under which such damages are sought. 
 Section 11. Acknowledgment. The Authorized Participant acknowledges receipt of (i) a copy of the
Trust Agreement and (ii) the current Prospectus of the Trust, and represents that it has reviewed and understands such documents. 

Section 12. Effectiveness and Termination. Upon the execution of this Agreement by the parties hereto, this Agreement shall become effective in
this form as of the Time of Sale, and may be terminated at any time by any party upon thirty (30) days prior written notice to the other parties unless earlier terminated: (i) in accordance with Section 2(a)(i); (ii) upon notice
to the Authorized Participant by the Trustee in the event of a breach by the Authorized Participant of this Agreement or the procedures described or incorporated herein; (iii) immediately in the circumstances described in Section 18(j); or
(iv) at such time as the Trust is terminated pursuant to the Trust Agreement. 
 Section 13. Marketing Materials; Representations Regarding
Shares; Identification in Registration Statement. 
 (a) The Authorized Participant represents, warrants and covenants that (i), without
the written consent of the Sponsor, the Authorized Participant will not (A) make, or permit any of its representatives to make, any representations concerning the Shares or any AP Indemnified Party other than representations contained
(1) in the Prospectus of the Trust, as then amended and supplemented, (2) in printed information approved by the Sponsor as information supplemental to such Prospectus or (3) in any promotional materials or sales literature furnished
to the Authorized Participant by the Sponsor, or (B) issue any FWP pursuant to Rules 164 and 433 of the 1933 Act and (ii) the Authorized Participant will not furnish or cause to be furnished to any person or display or publish any
information or material relating to the Shares, any AP Indemnified Person 

 
or the Trust that are not consistent with the Prospectus, as then amended and supplemented. Copies of the Prospectus of the Trust, as then amended and supplemented, and any such printed
supplemental information will be supplied by the Sponsor to the Authorized Participant in reasonable quantities upon request. 
 (b)
Notwithstanding the foregoing, the Authorized Participant may without the written approval of the Sponsor prepare and circulate in the regular course of its business research reports, marketing material and sales literature, but in no event FWPs,
that include information, opinions or recommendations relating to the Shares (i) for public dissemination, provided that such research reports, marketing material or sales literature is prepared in accordance with applicable rules and
regulations of the 1933 Act, any applicable state securities laws and FINRA rules; or (ii) for internal use by the Authorized Participant. The Authorized Participant will file all such research reports, marketing material and sales literature
related to the Shares with FINRA to the extent required by FINRA’s rules, including the NASD Conduct Rules. 
 (c) The Authorized
Participant and its affiliates may prepare and circulate in the regular course of their businesses, without having to refer to the Shares or the Prospectus, as then amended and supplemented, data and information relating to the price of Chinese
Renminbi. 
 (d) The Authorized Participant hereby agrees that for the term of this Agreement the Sponsor may deliver the Prospectus, and any
supplements or amendments thereto or recirculation thereof, to the Authorized Participant in Portable Document Format (“PDF”) via electronic mail in lieu of delivering the Prospectus in paper form. The Authorized Participant may
revoke the foregoing agreement at any time by delivering written notice to the Sponsor and, whether or not such agreement is in effect, the Authorized Participant may, at any time, request reasonable quantities of the Prospectus, and any supplements
or amendments thereto or recirculation thereof, in paper form from the Sponsor. The Authorized Participant acknowledges that it has the capability to access, view, save and print material provided to it in PDF and that it will incur no appreciable
extra costs by receiving the Prospectus in PDF instead of in paper form. The Sponsor will, when requested by the Authorized Participant, make available at no cost the software and technical assistance necessary to allow the Authorized Participant to
access, view and print the PDF version of the Prospectus. 
 (e) For as long as this Agreement is effective, the Authorized Participant
agrees to be identified as an authorized participant of the Trust (i) in the section of the Prospectus included within the Registration Statement entitled “Creation and Redemption of Shares” (including identifying the Authorized
Participant in such section by a supplement to the Prospectus) and in any other section as may be required by the SEC and (ii) on the Trust’s website. Upon the termination of this Agreement, (i) during the period prior to when the
Sponsor qualifies and elects to file on Form S-3, the Sponsor will remove such identification from the Prospectus in the amendment of the Registration Statement next occurring after the date of the termination of this Agreement and, during the
period after when the Sponsor qualifies and elects to file on Form S-3, the Sponsor will promptly file a current report on Form 8-K indicating the withdrawal of the Authorized Participant as an authorized participant of the Trust and
(ii) the Sponsor will promptly update the Trust’s website to remove any identification of the Authorized Participant as an authorized participant of the Trust. 

Section 14. Title To Chinese Renminbi. The Authorized Participant represents and warrants that upon delivery of the Basket Chinese Renminbi Amount
(as defined in the Trust Agreement) to the Trustee in accordance with the terms of the Trust Agreement and this Agreement, the Trust will acquire good and unencumbered title to the Chinese Renminbi which are the subject of such Basket Chinese
Renminbi Amount, free and clear of all pledges, security interests, liens, charges, taxes, assessments, encumbrances, equities, claims, options or limitations of any kind or nature, fixed or contingent, and not subject to any adverse claims,
including any restriction upon the sale or transfer of all or any part of such Chinese Renminbi which is imposed by any agreement or arrangement entered into by the Authorized Participant or any party for which it is acting in connection with a
Purchase Order. 

 Section 15. Third Party Beneficiaries. Each AP Indemnified Party, to the extent it is not a party to
this Agreement, is a third-party beneficiary of this Agreement (each, a “Third Party Beneficiary”) and may proceed directly against the Authorized Participant (including by bringing proceedings against the Authorized Participant in
its own name) to enforce any obligation of the Authorized Participant under this Agreement which directly or indirectly benefits such Third Party Beneficiary. 

Section 16. Force Majeure. No party to this Agreement shall incur any liability for any delay in performance, or for the non-performance, of any
of its obligations under this Agreement by reason of any act of God or war or terrorism, acts and regulations and rules of any governmental or supra national bodies or authorities or regulatory or self-regulatory organization or failure of any such
body, authority or organization for any reason, to perform its obligations, or any cause beyond its reasonable control, including, without limitation, any breakdown, malfunction or failure of transmission in connection with or other unavailability
of any wire, communication or computer facilities, any transport, port or airport disruption, or any industrial action. 
 Section 17. Ambiguous
Instructions. If a Purchase Order Form or a Redemption Order Form otherwise in good form contains order terms that differ from the information provided in the telephone call at the time of issuance of the applicable order number, the Trustee
will attempt to contact one of the Authorized Persons of the Authorized Participant to request confirmation of the terms of the Order. If an Authorized Person confirms the terms as they appear in the Order, then the Order will be accepted and
processed. If an Authorized Person contradicts the Order terms, the Order will be deemed invalid, and a corrected Order must be received by the Trustee. If the Trustee is not able to contact an Authorized Person, then the Order shall be accepted and
processed in accordance with its terms notwithstanding any inconsistency from the terms of the telephone information. In the event that an Order contains terms that are not complete or are illegible, the Order will be deemed invalid and the Trustee
will attempt to contact one of the Authorized Persons of the Authorized Participant to request retransmission of the Order. 
 Section 18.
Miscellaneous. 
 (a) Amendment and Modification. Except as set forth in the following sentence, this Agreement may be amended, modified
or supplemented only by a written instrument executed by all of the parties. The Procedures attached as Attachment A, the Exhibits B and C hereto and, solely for the purpose of complying with applicable law, rule or regulation, this Agreement, may
be amended, modified or supplemented by the Trustee and the Sponsor, without consent of the Authorized Participant from time to time by the following procedure. After the amendment, modification or supplement has been agreed to, the Trustee will
mail a copy of the proposed amendment, modification or supplement to the Authorized Participant. For the purposes of this Agreement, mail will be deemed received by the recipient thereof on the third (3rd) day following the deposit of such mail
into the United States postal system. Within ten (10) Business Days after its deemed receipt, the amendment, modification or supplement will become part of this Agreement, the Attachments or the Exhibits, as the case may be, in accordance with
its terms. If at any time there is any material amendment, modification or supplement of any Participant Agreement (other than this Agreement), the Trustee will promptly mail a copy of such amendment, modification or supplement to the Authorized
Participant. 
 (b) Waiver of Compliance. Any failure of any of the parties to comply with any obligation, covenant, agreement or condition
herein may be waived by the party entitled to the benefits thereof only by a written instrument signed by the party granting such waiver, but any such written waiver, or the failure to insist upon strict compliance with any obligation, covenant,
agreement or condition herein, shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. 
 (c)
Notices. Except as otherwise specifically provided in this Agreement, all notices required or permitted to be given pursuant to this Agreement shall be given in writing and delivered by personal delivery, by postage prepaid registered or certified
United States first class mail, return 

 
receipt requested, by nationally recognized overnight courier (delivery confirmation received) or by telephonic facsimile or similar means of same day delivery (transmission confirmation
received), with a confirming copy regular mailed, postage prepaid. For avoidance of doubt, notices may not be given or transmitted by electronic mail, other than as set forth in Section 6. Unless otherwise notified in writing, all notices to
the Trust shall be given or sent to the Trustee. All notices shall be directed to the address or telephone or facsimile numbers indicated below the signature line of the parties on the signature page hereof. 

(d) Successors and Assigns. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns. 
 (e) Assignment. Neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned by any party without the prior written consent of the other parties, except that any entity into which a party hereto may be merged or converted or with which it may be consolidated or any entity resulting from any
merger, conversion, or consolidation to which such party hereunder shall be a party, or any entity succeeding to all or substantially all of the business of the party, shall be the successor of the party under this Agreement. The party resulting
from any such merger, conversion, consolidation or succession shall notify the other parties hereto of the change. Any purported assignment in violation of the provisions hereof shall be null and void. Notwithstanding the foregoing, this Agreement
shall be automatically assigned to any successor Trustee or Sponsor at such time such successor qualifies as a successor Trustee or Sponsor under the terms of the Trust Agreement. 

(f) Governing Law; Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York (regardless of the laws that might otherwise govern under applicable New York conflict of laws principles) as to all matters, including matters of validity, construction, effect, performance and remedies. Each party hereto irrevocably consents
to the jurisdiction of the courts of the State of New York and of any federal court located in the Borough of Manhattan in such State in connection with any action, suit or other proceeding arising out of or relating to this Agreement or any action
taken or omitted hereunder, and waives any claim of forum non convenient and any objections as to laying of venue. Each party further waives personal service of any summons, complaint or other process and agrees that service thereof may be made by
certified or registered mail directed to such party at such party’s address for purposes of notices hereunder. Each party hereby waives its right to a trial by jury of any claim arising under or in connection with this Agreement. 

(g) Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement, and it shall not be necessary in making proof of this Agreement as to any party hereto to produce or account for more than one such counterpart
executed and delivered by such party. 
 (h) Interpretation. The article and section headings contained in this Agreement are solely for the
purpose of reference, are not part of the agreement of the parties and shall not in any way affect the meaning or interpretation of this Agreement. 

(i) Entire Agreement. This Agreement and the Trust Agreement, along with any other agreement or instrument delivered pursuant to this Agreement
and the Trust Agreement, supersede all prior agreements and understandings between the parties with respect to the subject matter hereof, provided, however, that the Authorized Participant shall not be deemed by this provision to be a party to the
Trust Agreement. 
 (j) Severance. If any provision of this Agreement is held by any court or any act, regulation, rule or decision of any
other governmental or supra national body or authority or regulatory or self-regulatory organization to be invalid, illegal or unenforceable for any reason, it shall be invalid, illegal or unenforceable only to the extent so held and shall not
affect the validity, legality or 

 
enforceability of the other provisions of this Agreement and this Agreement will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein, unless the
Sponsor determines in its discretion, after consulting with the Trustee, that the provision of this Agreement that was held invalid, illegal or unenforceable does affect the validity, legality or enforceability of one or more other provisions of
this Agreement, and that this Agreement should not be continued without the provision that was held invalid, illegal or unenforceable, and in that case, upon the Sponsor’s notification of the Trustee of such a determination, this Agreement
shall immediately terminate and the Trustee will so notify the Authorized Participant immediately. 
 (k) No Strict Construction. The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. 

(l) Survival. Sections 9 (Indemnification) , 12 (Effectiveness and Termination) and 15 (Third Party Beneficiaries) , 16 (Force Majeure) hereof
and this Section 18(l) shall survive the termination of this Agreement. 
 (m) Other Usages. The following usages shall apply in
interpreting this Agreement: (i) references to a governmental or quasigovernmental agency, authority or instrumentality shall also refer to a regulatory body that succeeds to the functions of such agency, authority or instrumentality; and
(ii) “including” means “including, but not limited to.” 
 * * * * * * * 

 IN WITNESS WHEREOF, the Authorized Participant, the Sponsor and the Trustee, on behalf of the Trust, have caused
this Agreement to be executed by their duly authorized representatives as of the date first set forth above. 
  

													
	 THE BANK OF NEW YORK MELLON,
 not in
its individual capacity,
 but solely as Trustee of the CurrencyShares® Chinese Renminbi
Trust
	 		  	[AUTHORIZED PARTICIPANT]
							
	By:	 	 	 	 	 		  	By:	  	 	  	 
		 	Name:	 		 		  		  	Name:	  	
		 	Title	 		 		  		  	Title	  	
					
	Address:	 		 		  	Address:	  	
					
	Telephone:	 		 		  	Telephone:	  	
					
	Facsimile:	 		 		  	Facsimile:	  	

  
  

	
	 GUGGENHEIM SPECIALIZED PRODUCTS LLC,
 Sponsor of
the CurrencyShares® Chinese Renminbi Trust

	
	   

	Name:
	Title:

 Address: 
 Telephone: 

Facsimile: 

 EXHIBIT A 

CURRENCYSHARES® CHINESE RENMINBI TRUST 

FORM OF CERTIFIED AUTHORIZED PERSONS OF AUTHORIZED PARTICIPANT 

The following are the names, titles and signatures of all persons (each an “Authorized Person”) authorized to give instructions relating to
any activity contemplated by the Participant Agreement or any other notice, request or instruction on behalf of the Authorized Participant pursuant to the CurrencyShares® Chinese Renminbi
Trust Participant Agreement. 
  

			
	Authorized Participant:	  	 
		
	Name:	  	Name:
		
	Title:	  	Title:
		
	Signature:	  	Signature:
		
	Name:	  	Name:
		
	Title:	  	Title:
		
	Signature:	  	Signature:

 The undersigned, [name], [title] of [company], does hereby certify that the persons listed above have been duly elected to the
offices set forth beneath their names, that they presently hold such offices, that they have been duly authorized to act as Authorized Persons pursuant to the CurrencyShares® Chinese Renminbi
Trust Participant Agreement by and between [Authorized Participant] and the Trustee and the Sponsor of the CurrencyShares® Chinese Renminbi Trust, dated
[                ], and that their signatures set forth above are their own true and genuine signatures. 

In Witness Whereof, the undersigned has hereby set his/her hand on the date set forth below. 

 

			
	Subscribed and sworn to before me                              this
         day of                 , 20    	  	By:
		
		  	Name:
		
		  	Title:
		
		  	Date:
		
	Notary Public	  	

 Note: Print on Company Letterhead prior to executing 

 EXHIBIT C 

THE BANK OF NEW YORK MELLON, TRUSTEE 

CREATION/REDEMPTION ORDER FORM 

CURRENCYSHARES CHINESE RENMINBI TRUST ETF 
  

					
		 	CONTACT INFORMATION FOR ORDER EXECUTION:	 	
		 	Telephone order number: (718) 315-7500	 	
		 	Fax order number: (732) 667-9478 / (Alt. Fax (718) 315-4609)	 	
		 	Custodian Instructions (000-000-0000)/ SWIFT CHASDEFX	 	

 Participant must complete all items in Part 1. The Trustee and/or Transfer Agent, in their discretion may reject any order not
submitted in complete form. 
 I. TO BE COMPLETED BY PARTICIPANT: 
  

									
	Date:	  	 	  		  	Time:	  	 
	Your Name:	  	 	  		  	Firm Name:	  	 
	DTC Participant Number:	  	 	  		  	Fax Number:	  	 
	Telephone Number:	  	 	  		  		  	

  

					
	Type of order (Check Creation or Redemption please)	  		  	(One CU = 50,000 FXCH)
			
	Creation of FXCH ____	  		  	Redemption of FXCH ____
			
	# Of Creation Units (CU) Transacted:	  		  	Number:______________
			
	Order # __________________	  		  	Number written out: ______________

 This Creation/Redemption Order is subject to the terms and conditions of the Depositary Trust Agreement of the CurrencyShares
Chinese Renminbi Trust as currently in effect and the Authorized Participant Agreement between the Authorized Participant, the Trustee and the Sponsor named therein. All representations and warranties of the Authorized Participant set Forth in such
Depositary Trust Agreement and such Authorized Participant Agreement are incorporated herein by reference and are true and accurate as of the date hereof. 

The undersigned does hereby certify as of the date set forth below that he/she is an Authorized Person under the Participant Agreement and that he/she is
authorized to deliver this Creation/Redemption Order to the Trustee on behalf of the Authorized Participant. The Authorized Participant enters into this agreement based on an estimated Basket Chinese Renminbi Amount disseminated the previous
business day and recognizes the final Basket Chinese Renminbi Amount represented will be increased/decreased based on the Trusts daily accrual. At the conclusion of the trading day a Final NAV will be disseminated to all Authorized Participants, and
the Basket Chinese Renminbi Amount required for the Creation/Redemption order entered into on this day will be finalized and this Creation/Redemption Order will serve as a legally binding contract for settlement on the third New York business day
following the date hereof, unless that day is not a business day in China, in which case settlement will be the next following day that is a business day in both New York and China. 

 

					
	 	  		  	 
	Date	  		  	Authorized Person’s Signature

 II. TO BE COMPLETED BY TRUSTEE: 

This certifies that the above order has been: 

                    Accepted by the Trustee 

                    Declined-Reason:
                                         
                                    

 

									
	Final # of Chinese Renminbi	  	 	  		  	Final # of FXCH Shares	  	 
	Final Cash Due to BNY	  	 	  		  	Final Cash Due to AP	  	 

  

															
		  	 	  		  		  	 	  		  		  	 
		  	Date	  		  		  	Time	  		  		  	Authorized Signature of Trustee

 ATTACHMENT A 

CREATION AND REDEMPTION OF CHINESE RENMINBI SHARES AND 

RELATED CHINESE RENMINBI TRANSACTIONS 

Scope of Procedures and Overview 
 These procedures (the
“Procedures”) describe the processes by which one or more Baskets of Chinese Renminbi Trust shares (the “Shares”) issuable by The Bank of New York Mellon, as trustee (the “Trustee”) of the
CurrencyShares® Chinese Renminbi Trust (the “Trust”), may be purchased or, once Shares have been issued, redeemed by an Authorized Participant. Shares may be created or
redeemed only in blocks of 50,000 Shares (each such block, a “Basket”). Because the issuance and redemption of Baskets also involve the transfer of Chinese Renminbi between the Authorized Participant and the Trust, certain processes
relating to the underlying transfers of Chinese Renminbi also are described. 
 Under these Procedures, Baskets may be issued only in consideration for
Chinese Renminbi transferred to and held in the Trust’s accounts maintained in London, England by the London Branch of JPMorgan Chase Bank, N.A., as depository (the “Depository”). Capitalized terms used in these Procedures
without further definition have the meanings assigned to them in the Depositary Trust Agreement, dated as of [                  ], 2011, between Rydex
Specialized Products LLC, succeeded by Guggenheim Specialized Products, LLC (the “Sponsor”), the Trustee, the registered owners and beneficial owners from time to time of Shares issued thereunder and all depositors (the
“Trust Agreement”), or the Participant Agreement entered into by each Authorized Participant with the Sponsor and the Trustee. 
 For
purposes of these Procedures, a “NY Business Day” is defined as any day other than (i) a Saturday or Sunday or (ii) a day on which the New York Stock Exchange (the “NYSE”) is not open for regular trading
at noon New York City time and a “Local Business Day” is defined as any day other than (i) a Saturday or Sunday or (ii) a day which has been designated a bank holiday in China. 

Baskets are issued pursuant to the Prospectus, which will be delivered by the Sponsor to each Authorized Participant prior to its execution of the Participant
Agreement, and are issued and redeemed in accordance with the Trust Agreement and the Participant Agreement. Baskets may be issued and redeemed on any Business Day by the Trustee in exchange for Chinese Renminbi, which the Trustee receives from
Authorized Participants or transfers to Authorized Participants, in each case on behalf of the Trust. Authorized Participants will be required to pay a nonrefundable per order transaction fee of $500 to the Trustee. Also, in connection with each
Purchase Order and Redemption Order (each as defined below) for two or more Baskets, the Authorized Participant shall pay an additional transaction fee, as follows: 
  

					
	 Baskets Created or Redeemed Per Order
	  	Additional
Transaction
Fee	 
	 2
	  	$	500	  
	 3
	  	$	1,000	  
	 4
	  	$	1,500	  
	 5 or more
	  	$	2,000	  

 The additional transaction fee described above shall be remitted to the Authorized Participant to the Trustee in accordance
with these Procedures. The Trustee shall then remit payment of the additional transaction fee to the Sponsor. The fees described above shall collectively be referred to herein as “Transaction Fees”. 

Authorized Participants and the Trust Transfer Chinese Renminbi and Baskets of Shares 

Upon acceptance of the Participant Agreement by the Sponsor and the Trustee, the Trustee will assign a personal identification number (a
“PIN”) to each person authorized to act for the Authorized Participant (an “Authorized Person”). This will allow the Authorized Participant through its Authorized Person(s) to place Purchase Order(s) or Redemption Order(s)
(each as defined herein and, together, “Orders”) for Baskets. 

 Important Notes: 
  

	 	•	 	Any Order is subject to rejection by the Trustee for the reasons set forth in the Trust Agreement. 

  

	 	•	 	All Orders are subject to the provisions of the Participant Agreement relating to unclear or ambiguous instructions. 

  
 A-2 

 CREATION PROCESS 

OVERVIEW 
 The following
describes the process by which Baskets are created. In summary, an order to purchase one or more Baskets of Shares is placed by an Authorized Participant with the Trustee by 4:00 p.m. New York City (“NYC”) time on the NY Business
Day that is the Order Date under the Trust Agreement (“CREATION T”), and a Basket is created on the third NY Business Day following CREATION T, unless that day is not a Local Business Day, in which case creation of the Basket
shall be the next following day that is both a New York Business Day and a Local Business Day (“CREATION T+3”). In order for the creation of a Basket to occur, the Authorized Participant must transfer to the Trust Chinese Renminbi and the
Trustee will transfer to the Authorized Participant’s account at The Depository Trust Company (“DTC”) Baskets corresponding to the Chinese Renminbi the Participant has transferred to the Trust. 

C1 CREATION T (PURCHASE ORDER TRADE DATE) 
 C1.1
By the 4:00 p.m. NYC time (the “Order Cut-Off Time”), or by 12:00 p.m. NYC time on the monthly dividend declaration date (the “Early Order Cut-Off Time”), the Authorized Participant submits to the Trustee the
Authorized Participant’s order to create one or more Baskets of Shares (a “Purchase Order”) in accordance with the following process. 

C1.1.1 The Authorized Participant (“AP”) submitting an order to create shall submit such orders containing the information required
by the Trustee in the following manner: (a) through the Trustee’s electronic order entry system, as such may be made available and constituted from time to time, the use of which shall be subject to the Order Entry System terms and
conditions; or (b) by telephone to the Trustee’s Transfer Agent Representative according to the procedures set forth below. 

C1.1.2 By the Order Cut-Off Time or the Early Order Cut-Off Time, as applicable, an Authorized Person of the Authorized Participant calls the
Trustee at 718-315-7500, notifying the Trustee that the Authorized Participant wishes to place a Purchase Order for the Trustee to create an identified number of Baskets of Shares and requesting that the Trustee provide an order number. The
Authorized Person provides a PIN as identification to the Trustee. 
 C1.1.3 Incoming telephone calls are queued and will be handled in the
sequence received. The Trustee will process Purchase Orders if the phone call initiated by the Authorized Person is placed before the Order Cut-Off Time or the Early Order Cut-Off Time, as applicable, even though the remainder of the order process
is not completed until after the Order Cut-Off Time or the Early Order Cut-Off Time. Accordingly, do not hang up and redial. 
 C1.1.4
Purchase Orders initiated after the Order Cut-Off Time or the Early Order Cut-Off Time, as applicable will be rejected. 
 C1.1.5 During the
phone call from the Authorized Person of the Authorized Participant to initiate a Purchase Order, the Trustee will give an order number for the Authorized Participant’s Purchase Order. 

C1.1.6 Within 15 minutes after receiving the order number from the Trustee, the Authorized Participant will fax the Purchase Order to the
Trustee using the Purchase Order Form included as part of the Participant Agreement. 
 C1.1.7 The Purchase Order Form provides, among other
things, for the number of Baskets that the Authorized Participant is ordering and the condition that the Purchase Order is subject to the Trustee’s receipt of the Transaction Fees (by DTC SPO Charge) prior to delivery of the Baskets on
CREATION T+3. 

  
 A-3 

 C1.1.8 If the Trustee has not received the Purchase Order Form from the Authorized Participant
within 15 minutes after the Authorized Person placed the phone call to the Trustee, the Trustee places a phone call to the Authorized Participant to inquire about the status of the order. If the Authorized Participant does not fax the Purchase
Order Form to the Trustee within 15 minutes after the Trustee’s phone call, the Authorized Participant’s order is cancelled, but the Authorized Participant will remain liable to the Trustee for the Transaction Fees. 

C1.2 If the Trustee has received the Authorized Participant’s Purchase Order Form on time in accordance with the preceding timing rules,
then by 5:00 p.m. NYC time on CREATION T, the Trustee will return to the Participant a copy of the Purchase Order Form submitted, marking it “Affirmed subject to receipt of the Transaction Fees prior to delivery of Baskets on
CREATION T+3” (Current process is to simply approve the order in the appropriate section of the form) and indicating, on a preliminary basis subject to confirmation, the number of Chinese Renminbi the Participant must transfer in exchange
for the Basket(s). 
 C1.3 The Participant ensures that by 3:30 p.m. Hong Kong time (usually 2:30 a.m. NYC EST time) on
CREATION T+3, sufficient Chinese Renminbi are wire transferred to the Depository. 
 C1.4 NOTES FOR AUTHORIZED PARTICIPANT (CREATION T)

 C1.4.1 The Authorized Participant must be a participating member of DTC. 

C1.4.2 The Authorized Participant must be able to transfer Chinese Renminbi via (RTGSplus, EBA EURO1 or TARGET). SWIFT BIC – CHASGB2L.

 C1.4.3 The Authorized Participant must have signed and delivered the Participant Agreement to the Trustee. The Trustee will accept an
Authorized Participant based on the representations made by the Authorized Participant in the Participant Agreement. The Trustee will not perform other due diligence or investigation of Authorized Participants. 

C1.4.4 The Authorized Participant must have in place, before a Purchase Order can be processed, account instructions for Chinese Renminbi
transfers with its sending financial institution. 
 C1.4.5 By 3:30 p.m. Hong Kong time on CREATION T+3, Chinese Renminbi in the amount
needed to acquire the Shares must be standing to the credit of the Deposit Account in order for the Authorized Participant to receive Baskets on CREATION T+3. 

C1.4.6 An Authorized Participant may only deliver Chinese Renminbi for credit to the Depository in the following ways: (RTGSplus, EBA EURO1 or
TARGET). SWIFT BIC – CHASGB2L. 
 C1.4.7 Prior to the delivery of the Baskets by the Trustee on CREATION T+3, the Authorized
Participant must accept a DTC SPO Charge for the applicable Transaction Fees from the Trustee. Purchase Orders for which the Trustee has not received the Transaction Fees will be cancelled subject to handling pursuant to supplemental procedures to
be issued, but in any event the Authorized Participant will remain obligated to the Trustee for the Transaction Fees. 
 C1.5 NOTES FOR
TRUSTEE (CREATION T) 
 C1.5.1 Based on the Purchase Orders placed with it on CREATION T, the Trustee sends an email message to
the Depository (by CREATION T+1) indicating the approximate total amount of Chinese Renminbi that the Depository will receive from the Authorized Participant on CREATION T+3. 

C1.5.2 The Depository receives the Trustee’s email message about the approximate total amount of Chinese Renminbi the Authorized
Participant is required to transfer not later than 3:30 p.m. Hong Kong time on CREATION T+3. 

  
 A-4 

 C2 CREATION T+1 

C2.1 The Purchase Orders and instructions given on CREATION T are all pending with the Trustee. 

C2.2 On CREATION T+1 the Trustee notifies the Authorized Participant via email of the approximate amount of Chinese Renminbi that must be
deposited in the Deposit Account (the “Basket Chinese Renminbi Amount”) not later than 3:30 p.m. Hong Kong time on CREATION T+3. 
 C3
CREATION T+2 
 C3.1 On CREATION T+2 the Trustee notifies the Authorized Participant of the final amount of Chinese Renminbi that must be
deposited in the Deposit Account (the “Basket Chinese Renminbi Amount”) around 3:30 PM eastern pm, N.Y time (2:30 AM HK time T+3). 

C3.2 By 3:30 p.m. NYC time T+2, based on the Purchase Orders placed with it on CREATION T, the Trustee sends an authenticated electronic
message (SWIFT MT210) to the Depository indicating the total amount of Chinese Renminbi that the Depository will receive from the Authorized Participant on CREATION T+3. 

C4 CREATION T+3 
 C4.1 By 3:30 p.m. Hong Kong
time (usually 2:30 a.m. NYC time), the Depository has received each Authorized Participant’s wire transfer of the Basket Chinese Renminbi Amount in the Deposit Account. 

C4.2 As of 3:30 p.m. Hong Kong time, the Depository notifies the Trustee that the Basket Chinese Renminbi Amount has been transferred into the
Deposit Account by an authenticated electronic message (SWIFT MT910). 
 C4.3 Prior to the delivery of the Baskets on CREATION T+3, the
Trustee must have received the Transaction Fees from the Authorized Participant (SPO/DTC Charge). 
 C4.4 At 11:00 a.m. NYC time, following
receipt of the notice from the Depository confirming the transfer of the Basket Chinese Renminbi Amount to the Deposit Account, the Trustee authorizes the creation and issuance of the Baskets ordered by each Authorized Participant on CREATION T for
which the Trustee has received confirmation from the Depository of receipt of the Basket Chinese Renminbi Amount. 
 C4.5 By 11:00 a.m. NYC
time, following receipt of the notice from the Depository confirming the transfer of the Basket Chinese Renminbi Amount to the Deposit Account, the Trustee notifies its transfer agent service desk that it has authorized the creation and issuance of
Baskets in the number specified, and to increase the number of Shares outstanding accordingly. By 11:00 a.m. NYC time, following receipt of the notice from the Trustee that it has authorized the creation and issuance of Shares in the number
specified, the Trustee’s transfer agent service desk increases the number of Shares outstanding, and notifies the Trustee and the Trustee’s DTC operations desk that an increased number of Shares is now outstanding and available for release
in accordance with the Trustee’s instructions. 
 C4.6 By 11:00 a.m. NYC time, following receipt of notice from the Trustee’s
transfer agent service desk that the number of Shares now outstanding has been increased, the Trustee notifies its DTC operations desk to release the increased number of Shares through DTC to the DTC participant accounts of the Authorized
Participants scheduled to receive Baskets on CREATION T+3 for whom the Trustee has received confirmation from the Depository that the Basket Chinese Renminbi Amount has been received into the Deposit Account. 

  
 A-5 

 C4.7 Following the close of business (usually 4:00 p.m. Hong Kong) on CREATION T+3, the
Depository makes appropriate entries in its books and records to reflect the creation of Baskets. 
 C4.8 Following the close of business
(usually 4:00 p.m. Hong Kong time) on CREATION T+3, the Depository Chinese Renminbi system updates account records, recording the movements of Chinese Renminbi in the Deposit Account and providing updated balances in the affected accounts as of the
close of business (usually 4:00 p.m. Hong Kong time) on CREATION T+3). 
 C4.9 Following the close of business (usually 4 p.m. Hong Kong
time) on CREATION T+3, the Depository Chinese Renminbi system automatically generates authenticated electronic messages (SWIFT MT940 or SWIFT MT950) constituting a statement of the activity affecting the Deposit Account (received only by the
Trustee). 
 C4.10 If the Authorized Participant fails to deliver Chinese Renminbi by 3:30 p.m. Hong Kong time on CREATION T+3, (a) the
Trustee will apply a late fee equal to four (4) times the creation charge; and (b) the Depository may, in its reasonable discretion, apply a late fee calculated in accordance with standard industry practices, payable by the Authorized
Participant. 
 In the event any such late fees are assessed, the Trustee will coordinate with the Authorized Participant to arrange payment
of such fees. 
 Note: Both creation and redemption activities (delivery/receipts) time frames are subject to change based on depository
requirements. 
 REDEMPTION PROCESS 

OVERVIEW 
 The following
describes the process by which Baskets are redeemed. In summary, an order to redeem one or more Baskets of Shares is placed by an Authorized Participant with the Trustee by 4:00 p.m. NYC time on the NY Business Day that is the Order Date under the
Trust Agreement (“REDEMPTION T”), Baskets to be redeemed (or collateral as described below) are delivered to the Trustee by 4:00 a.m. Hong Kong time (usually 3:00 p.m. NYC time) on the first NY Business Day following REDEMPTION T,
unless that day is not a Local Business Day, in which case Baskets shall be delivered the next following day that is both a New York Business Day and a Local Business Day (“REDEMPTION T+1”) and the Authorized Participant receives the
corresponding Chinese Renminbi on the third NY Business Day following REDEMPTION T (“REDEMPTION T+3”). In order for the redemption of a Basket to occur, the Authorized Participant must pay a transaction fee and the Trustee will instruct
the Depository to transfer to the Authorized Participant Chinese Renminbi corresponding to the Baskets delivered for redemption. 
 R1 REDEMPTION T
(REDEMPTION ORDER TRADE DATE) 
 R1.1 By the Order Cut-Off Time or the Early Order Cut-Off Time, as applicable, the Authorized Participant
submits to the Trustee the Authorized Participant’s order to redeem one or more Baskets of 
 R1.1.1 The Authorized Participant
(“AP”) submitting an order to redeem shall submit such requests containing the information required by the Trustee in the following manner: (a) through the Trustee’s electronic order entry system, as such may be made available
and constituted from time to time, the use of which shall be subject to the terms and conditions in the Electronic Service Agreement; or (b) by telephone to the Trustee’s Transfer Agent Representative , according to the procedures set
forth below. 

  
 A-6 

 R1.1.2 By the Order Cut-Off Time or the Early Order Cut-Off Time, as applicable, an Authorized
Person of the Authorized Participant calls the Trustee at 718-315-7500, notifying the Trustee that the Authorized Participant wishes to place a Redemption Order for the Trustee to redeem an identified number of Baskets of Shares and requesting that
the Trustee provide an order number. The Authorized Person provides a PIN as identification to the Trustee. 
 R1.1.3 Incoming telephone
calls are queued and will be handled in the sequence received. The Trustee will process the Redemption Order(s) if the phone call initiated by the Authorized Person is placed before the Order Cut-Off Time or the Early Order Cut-Off Time as
applicable, even though the remainder of the order process is not completed until after the Order Cut-Off Time or the Early Order Cut-Off Time. Accordingly, do not hang up and redial. 

R1.1.4 Redemption Orders initiated after the Order Cut-Off Time or the Early Order Cut-Off Time are rejected. 

R1.1.5 During the phone call from the Authorized Person of the Authorized Participant to initiate a Redemption Order, the Trustee will give an
order number for the Authorized Participant’s Redemption Order. 
 R1.1.6 Within 15 minutes after the phone call initiating the
Redemption Order, the Authorized Participant will fax the Redemption Order to the Trustee using the Redemption Order Form included as part of the Participant Agreement. 

R1.1. 7 The Redemption Order Form provides, among other things, for the number of Baskets that the Authorized Participant is redeeming and the
condition that the Redemption Order is subject to Trustee’s receipt of the Transaction Fees by SPO/DTC Charge on REDEMPTION T+2 prior to the delivery of the Chinese Renminbi to the Authorized Participant. 

R1.1.8 If the Trustee has not received the Redemption Order Form from the Authorized Participant within 15 minutes after the Authorized Person
placed the phone call to the Trustee, the Trustee places a phone call to the Authorized Participant to inquire about the status of the order. If the Authorized Participant does not fax the Redemption Order Form to the Trustee within 15 minutes after
the Trustee’s phone call, the Authorized Participant’s order is cancelled, but the Authorized Participant will remain liable to the Trustee for the Transaction Fees. 

R1.2 If the Trustee has received the Authorized Participant’s Redemption Order Form on time in accordance with the preceding timing
rules, then by 5:00 p.m. NYC time on REDEMPTION T, the Trustee will return to the Authorized Participant a copy of the Redemption Order Form submitted, marking it “Affirmed subject to receipt of Transaction Fees on REDEMPTION T+2 prior to
delivery of the Chinese Renminbi” and indicating, on a preliminary basis subject to confirmation, the number of Chinese Renminbi the Participant will receive upon redemption of the indicated Basket(s) of Shares. 

R1.3 NOTES FOR TRUSTEE AND DEPOSITORY (REDEMPTION T) 

R1.3.1 On REDEMPTION T, the Trustee will prepare an authenticated electronic message (SWIFT MT202) containing instructions specifying
REDEMPTION T+3 as the date on which the instructions will be executed. 
 R1.3.2 The Trustee will deliver the authenticated electronic
message (SWIFT MT202) to the Depository on REDEMPTION T+2 only after confirming the Trustee’s receipt of redemption Shares or collateral consisting of cash in U.S. Dollars having a value at least equal to 105 % of the NAV per Share of the
redemption Shares to be delivered 

  
 A-7 

 R2 REDEMPTION T+1 

R2.1 Redemption Orders and related instructions are in process. 

R3 REDEMPTION T+2 
 R3.1 On REDEMPTION T+2 the
Trustee notifies the Authorized Participant of the final amount of Chinese Renminbi that will be delivered to the Authorized Participant on REDEMPTION T+3 (the “Basket Chinese Renminbi Amount) 

R3.2 By 3:00: p.m. New York Time, the Authorized participant delivers to the Trustee the redemption Shares or cash collateral of 105 % of
the prior day’s NAV of the ETF Shares 
 R3.3 By 3:30 p.m. NYC time, the Trustee sends an authenticated electronic message (SWIFT
MT202) to the Depository directing the Depository to transfer the Basket Chinese Renminbi Amount on T+3 to the accounts of those Authorized Participants from whom the Trustee has received the redemption shares or collateral 

R3.4 Prior to the delivery of instructions from the Trustee to the Depository directing the Depository to transfer the Basket Chinese Renminbi
Amount on REDEMPTION T+3, the Trustee must have received the Transaction Fees and the redemption shares or the collateral amount from the Authorized Participant (SPO/DTC Charge). 

R4 REDEMPTION T+3 
 R4.2.1 By 3:00 p.m. NYC time,
if the Shares being redeemed by the Authorized Participant have been received into the Trustee’s participant account at DTC, the Trustee’s DTC operations desk accepts the Shares to be redeemed notifies the Trustee that the Trustee has
received the Authorized Participant’s Shares and identifies the Authorized Participant from whom the Shares have been received. 

R4.2.2 Upon receipt of the Authorized Participant’s Shares, the Trustee returns the Authorized Participants collateral. In the event that
Shares to be redeemed are not received by T+3, an additional amount of cash in U.S. Dollars shall be required to be deposited with the Trust daily by 12:00 p.m. NYC Time, pending delivery of the missing Shares to the extent necessary to maintain the
cash collateral on deposit with the Trust in an amount equal to 105% of the prior day’s NAV per Share of the missing Shares. 
 R4.2.3
By DTC free delivery cut-off time (usually 3:00 p.m. NYC time), the Trustee’s DTC operations desk instructs the Trustee’s transfer agent services desk to cancel Shares received for redemption. 

R4.2.4 By DTC free delivery cut-off time (usually 3:00 p.m. NYC time), the Trustee’s transfer agent services desk cancels the
Authorized Participant’s Shares received for redemption and reduces the number of Trust Shares outstanding. 
 R4.4 Following the close
of business (usually 3:30 p.m. NYC time) on REDEMPTION T+3, the Depository makes the appropriate entries in its books and records to reflect the redemptions. 

R4.5 Following the close of business (usually 3:30 p.m. GMT) on REDEMPTION T+3, the Depository Chinese Renminbi system updates its account
records, recording the movements of Chinese Renminbi in the Deposit Account and providing updated balances in the affected accounts as of the close of business (usually 3:30 p.m. GMT) on REDEMPTION T+3. 

  
 A-8 

 R4.6 Following the close of business (usually 3:30 p.m. GMT) on REDEMPTION T+3, the Depository
Chinese Renminbi system automatically generates an authenticated electronic message (SWIFT MT940 or Swift MT950) constituting a statement of the activity affecting the Deposit Account (received only by the Trustee). 

Note: Both creation and redemption activities (delivery/receipts) time frames are subject to change based on depository requirements.

  
 A-9 

 Schedule to Exhibit 4.4 

The following parties have each executed a separate Participation Agreement with The Bank of New York, as trustee, and Guggenheim Specialized Products, LLC,
as sponsor, which is substantially identical in all material respects to the Participation Agreement filed herewith as Exhibit 4.4 and is dated as of the date listed opposite its name below. 

 

					
	 Name of Party
	  	Date of Agreement	 
	 BNP Paribas Securities Corp.
	  	 	November 10, 2015	  
	 BNP Paribas Prime Brokerage, Inc.
	  	 	November 10, 2015	  

 Except as noted above, there are no material details in which the above Participation Agreements differ from the Participation
Agreement filed herewith as Exhibit 4.4.

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